Finance

What is 'seasoning' of funds in Oregon mortgage lending?

AThe process of marinating real estate documents before signing
BThe requirement that funds in a buyer's account have been there for a minimum period (typically 2 months) to be used as verified assets for down payment✓ Correct
CThe waiting period after a bankruptcy before qualifying for a new mortgage
DThe adjustment period on an adjustable-rate mortgage

Explanation

Fund seasoning refers to lenders' requirements that assets (down payment funds, reserves) must have been in the borrower's account for a minimum period — typically 60 days (2 bank statements) — to verify they are legitimate, documented assets and not borrowed funds. Large, unexplained deposits may trigger additional documentation requirements from Oregon lenders.

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