When you apply for a mortgage, underwriters ask where your money came from and how long you've held your job. They're looking for *seasoning*—proof that your financial picture is stable, not a temporary snapshot assembled to close a loan. Understanding these timelines helps you plan ahead and avoid surprises during underwriting.
Employment seasoning
Most loan programs want a two-year history in the same line of work. You don't need to stay at one employer for two years, but you do need continuity in your field. A teacher who switched school districts is fine; a teacher who became a real-estate agent six months ago raises questions about income stability.
Recent college graduates and transitioning military members typically get exceptions if they move straight into a related field. A newly minted engineer with a signed offer letter and a four-year engineering degree usually satisfies the requirement. Self-employed borrowers face stricter scrutiny: most programs require two full years of tax returns showing consistent income in the same business.
Gaps matter. If you were unemployed for three months last year, expect to explain why and document your return to work. Lenders want assurance that the paycheck funding your mortgage payment will keep coming.
Large deposit seasoning
Underwriters review your bank statements for the past sixty days. Any single deposit larger than half your monthly income must be sourced and documented. The reason is simple: they need to verify it's not a loan you'll have to repay.
Acceptable sources include payroll, tax refunds, documented gifts from family, and proceeds from selling assets (car, stocks, old boat). Unacceptable sources include cash deposits you can't explain, personal loans, and credit-card advances. If your parents gift you ten thousand dollars for closing costs, you'll need a signed letter stating it's a gift with no repayment expected, plus proof the funds moved from their account to yours.
If a large deposit happened more than sixty days before you apply, it's already seasoned—the money has been sitting in your account long enough that its origin is less material. This is why many loan officers tell first-time buyers to avoid moving money around in the weeks before applying.
Down payment and reserve seasoning
Your down payment funds need to be documented and, in most cases, seasoned in your own accounts for at least sixty days. Pulling fifteen thousand dollars out of a safe the day before closing won't work; underwriters need a paper trail. The same applies to reserves—the cushion of savings many loan programs require you to hold after closing.
Rules vary by loan type. Conventional loans are more flexible with gift funds than FHA. Jumbo programs often require larger reserves, sometimes six months of mortgage payments. VA loans, backed by the Department of Veterans Affairs, waive reserves for qualifying veterans.
The Alliance take
Seasoning requirements protect both you and the lender. They confirm you can actually afford the house. If you're planning to buy in the next year, keep your job stable, avoid unexplained cash deposits, and let your down payment sit untouched in the bank. When you're ready, start an application and we'll walk you through exactly what your situation requires.