That’s interesting about the credit union being even stricter. I’ve always heard they’re supposed to be more “personal” or flexible, but maybe that’s just marketing. The paperwork side definitely gets tedious—like you said,
I had something similar with a Venmo transfer from my sister, and suddenly I was digging up screenshots and explanations for what was basically coffee money.“a $12 pizza split can trigger a whole paper trail.”
Did you have to provide actual letters for every small deposit, or did they just want statements? I’m starting to wonder if it’s safer to keep all non-payroll stuff out of my main account until closing. It feels a bit over the top, but I get why they’re cautious. Still, it makes me second-guess every little transfer. Anyone else feel like they’re walking on eggshells with their bank statements during this process?
It’s wild how granular lenders get—one time I had to explain a $20 Zelle from a buddy for splitting gas. They wanted a letter for anything that wasn’t payroll or a documented refund. It does feel over the top, but honestly, it’s just the current compliance climate. I started keeping my main account “clean” during escrow after getting burned once. It’s annoying, but it really does smooth things out at closing. You’re not alone in feeling paranoid about every little deposit.
Yeah, I ran into the same thing—my lender flagged a $35 Venmo from my sister for movie tickets. Had to dig up screenshots and write a “gift letter” for it, which felt ridiculous. Do they really think people are laundering money in $30 increments? I get the compliance thing, but sometimes it feels like they’re just looking for reasons to slow things down. Did you end up moving all your random transfers to a different account, or just stop using Zelle/Venmo altogether during escrow?
Title: Getting approved for an FHA loan: My step-by-step (and a few hiccups)
Do they really think people are laundering money in $30 increments? I get the compliance thing, but sometimes it feels like they’re just looking for reasons to slow things down.
This is exactly what drove me nuts during my FHA process. I had a $20 Zelle from my roommate for splitting groceries, and the underwriter flagged it like it was some kind of offshore wire transfer. I get that they have to follow federal guidelines, but honestly, the level of scrutiny feels way overboard at times. It’s not like anyone’s hiding major assets with random Venmo pizza money.
I tried to keep all my “random” transfers out of my main account once I realized how closely they were watching every deposit. It was a pain, but I basically stopped using Zelle and Venmo entirely until closing. Not ideal, but it made things smoother—less explaining, fewer hoops. If you can swing it, having a “clean” account just for escrow is worth considering. That said, it’s kind of ridiculous we even have to think about this stuff when most people use these apps for totally normal reasons.
Honestly, I wish lenders would use a little more common sense here. Like, if someone’s getting regular payroll deposits and then a couple small transfers from friends or family, does that really need a paper trail? The system seems set up for people who only use checks and cash, which just isn’t reality anymore.
On the flip side, I do get why they’re strict—FHA loans are government-backed and they want everything above board. But there’s gotta be a better way than making us write “gift letters” for movie tickets or coffee money.
If anyone else is reading this and about to start escrow: seriously consider parking your daily spending somewhere else until you close. It’s annoying upfront but saves so much hassle later on.
Totally relate to this headache. I had to explain a $15 Venmo from my sister for gas money, and it felt so silly—like, who’s laundering cash in tiny amounts? I get why they’re careful, but it does seem outdated with how everyone uses payment apps now. I ended up opening a separate account just for the down payment and closing costs, and that made things way less stressful. Still, it’s wild how much paperwork they want for such small stuff.
