Business Funds – Use Them for Down Payment and Reserves

Business Accounts are an acceptable source of funds provided a signed letter from the Borrower’s CPA is included in the loan file which attests (1) the borrower can access the funds, and (2) withdrawal of funds from that account will not negatively impact the daily operations of the business.

Guidelines say no more than 33% of the total assets may be used for down payment, but we make exceptions to this to 100% regularly.

However, only 33% of the remaining balance of assets may be used for closing costs and/or reserves.

The borrower must be at least 50% owner of the business and available assets will be limited to his/her percentage of ownership in the business.