AU Referral because of gift money?

[Anonymous]

I spoke with my LO today and she said that when my information is entered in the AU, I come back as a approve eligible. Great! BUT when my gift money ($7500 from my MIL) is added in, it changes to a referral. She said no one can figure out why its flipping like that. So now I'm in manual UW. If everything looked good enough to get an approval without the gift, should I be expecting an approval through manual? I don't see how gift money can be the one thing that holds us back here. Anyone ever experience this before?

[DallasLoanGuy]

that is strange,

[Anonymous]

What type of loan?

[Anonymous]

Its FHA

[Anonymous]

Because I just couldn't let this go, I spent several hours last night reading and researching.  I finally stumbled upon this random website which speaks to this situation briefly in one of the last paragraphs.  It mentions that an approve could flip to refer if the codes aren't entered in the DU correctly.  I have no idea if this site is credible or if this reasoning even makes sense in the mortgage world.  Can someone take a peek and let me know if this sounds about right?  

http://teammovemortgage.com/2015/03/21/fha-down-payment-that-is-a-gift-from-family-or-employers-requ...

[Anonymous]

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@Anonymous wrote:

Because I just couldn't let this go, I spent several hours last night reading and researching.  I finally stumbled upon this random website which speaks to this situation briefly in one of the last paragraphs.  It mentions that an approve could flip to refer if the codes aren't entered in the DU correctly.  I have no idea if this site is credible or if this reasoning even makes sense in the mortgage world.  Can someone take a peek and let me know if this sounds about right?  

http://teammovemortgage.com/2015/03/21/fha-down-payment-that-is-a-gift-from-family-or-employers-requirements/

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DU assesses overall level of risk. Since FHA allows for 100% gift funds, I'd be surprised if DU considered your file riskier and gave a "refer" simply because of the gift funds - although I suppose it is possible. Admittedly, I don't know the exact algorithm that DU uses to assess risk, but I think it's more likely that there was a human input error of some kind.