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What is the purpose of seasoning requirements for funds?

General Mortgage Knowledge · 20% of the SAFE exameasy

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Correct answer: To ensure the funds are legitimate savings, not additional undisclosed debt

Seasoning requirements (typically 2+ months) ensure that funds claimed as the borrower own resources are legitimate savings, not recently borrowed money that creates undisclosed debt. Unseasoned funds raise the debt-to-income ratio and indicate less financial stability.

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