Cash is no longer King!

So here we are, ready to close a home loan refinance in which the Borrower has 50% equity in his home and several hundred thousand in stock. This should be a lay down, easy peezy lemon squeezy, knock out of a loan.

But nooooo! The Lender has decided that the want the Loan Amount lowered by $20,000 to bring his Debt to Income Ration below 30% (which makes no sense). The Borrower finally gave in and stated that he would $20,000 out of his safe deposit box and bring it in at closing. Lender said "No" because the cash cannot be sourced or seasoned, which means there is no way to prove the money was ever his.

I tell ya folks, it is a strange world we live in when a man or woman that can bring in $20,000 cash from a safe deposit box is considered unworthy of refinancing his/her home at less than half it's current value, yet the Fannie Mae HomePath program allows 1st time home buyers to purchase a wreck of a home without requiring an appraisal - opening the door to over paying for a property.

Calgon, take me away.