How to prove to an underwriter that I paid rent with cash
Dave Metsker (DaveMetsker)
#35 ranked lender in Oregon - 2,318 contributions
Obtain a VOR, verification of rent, from the management company for the place you live. Hand-written reciepts from relatives or friends, and xerox copies of cash will NOT work. Next time, pay $.75 at the convenience store, and buy a money order.
Peter Savino (855411LEND)
#99 ranked lender in New Jersey - 332 contributions
1.Show the money coming out of your bank account the same time of the month for 12 months. 2. Have the landlord write a letter saying they recieve the cash from you monthly and on time, have that letter noterized. Maybe get rent reciepts from the landlord3. you may want to show phone, internet, cable, electric, gas bills to show that your the tenant. Hope this helps - www. HOMEMORTGAGEXPERT.com Peter Savino
I have submitted a letter from the landlord stating she accepted on time cash payments and also submitted receipts. I do have bank statements but not all for the rent amounts are consistant (sometimes if I went inside the bank I withdrew more then the rent payment and sometimes through the ATM over a 2 day period due to withdraw limits at ATM). I have a credit score over 680, no late payments in the last years and no judgments . I am applying for a VA loan and underwriter wants proof of rent payment history. The rental I live in has been sold at auction and I have a cash for keys contract from the bank that bought no rent required and a move out date from them. Will the underwriter deny my loan for this.
Peter Savino (855411LEND)
#99 ranked lender in New Jersey - 332 contributions
If you get denied please give me a call or email me directly 855 411 LEND Peter Savino
Would a LOE to explain all of this be helpful. My LO did not know why the automated system kicked back my loan application since every thing else is good and talked to his underwriter in person. She said she didn't see a problem but would be more comfortable with bank statements also being submitted.. Should I just turn in what I have and wait to see if she wants a LOE.
Peter Savino (855411LEND)
#99 ranked lender in New Jersey - 332 contributions
im not sure how the automated system would know about rent reciepts, if that was true, we or they should or would manually underwrite the file. You are not the only person who pays cash for rent in the United States. Do what your loan officer says to do. I can always help you if you dont get closed.
Peter Savino (855411LEND)
#99 ranked lender in New Jersey - 332 contributions
Feel free to call me if you have issues or questions. 855 411 LEND Peter Savino
Joe Metzler (JoeMetzler)
#17 ranked lender in Minnesota - 4,848 contributions
There are some good answers already... But while cash is king, it isn't when it comes to the world of mortgage lending. Physical proof is everything. Not all loan programs require you to prove the rent payment. Talk to your loan officer about other program options too. www.WI-MortgageBroker.com
Carlo Sanchez (MortgageLendingPro)
#0 ranked lender in Utah - 1,163 contributions
All the answers are great and remember in the Mortgage Industry, It's not what we Know, It's what we can prove.
Carlos Figueira (carlosfigueira)
#107 ranked lender in New Jersey - 199 contributions
Most mortgage programs DO NOT require proof of rental if your credit score is above 600. You may have to cancel file out and start process with another lender if underwriting is requesting the cancelled checks. Your Loan Officer should have advised you of this UP FRONT????
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