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What about cash I deposited with my paycheck? Will it affect our mortgage approval?

We had a some cash we kept in our home safe and deposited with our paychecks. It is only about $200-400 that was deposited with a paycheck every two weeks for about three consecutive weeks. I realize they are trying to document all your income when they look at your bank statements, but we were told to trickle the money in over time in amounts smaller than $500. Now as we go through the loan process, we are being asked to document each deposit, with payroll verification. Obviously they will see the extra $200-400 there. What can we do to explain that and will it cause us to get denied? We are applying for an FHA loan.
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April 16 2012 - Staten Island
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Be honest with the loan officer/mortgage broker you are working with.  They want to collect their commission and they should be able to give you advice about getting the extra cash through underwriting.
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May 23 2012

The underwritier will look at the amount as a percentage of your monthly income. If the percentage is low, they may not ask for any documentation other than a letter of explanantion where the money came from, i.e. "we keep money at home for emergencies,". They may not count that cash in your cash to close calculation, or you may need a gift from a family member. Wouldn't get worried about a small amount like that.

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April 19 2012
 
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