Seasoning of funds

Definition

The rule that your injection has sat in your own accounts a while.

Why It Matters

A gift or a last-minute transfer is not disqualifying, but an undocumented one stalls underwriting at the worst possible moment, which is inside exclusivity with a closing date already promised. Move the money into one account early, keep the statements that show where it came from, and get a signed gift letter the same week rather than the week the lender asks. The letter alone is not proof: before any loan money moves, the lender needs the wire or check that moved the cash, at least 30 days of statements from the account it left, and the statement showing where it went. The rule exists because the SBA wants the injection to be genuinely yours and not a second loan wearing a friend's name.

In numbers: A lender tracing a $200,000 injection wants two or three months of statements showing where it sat; $60,000 that appeared last week needs a paper trail, and if it was a gift, a signed gift letter saying no repayment is expected.