FHA Gifting HELP

[ladii06]

We needed a gift for our down payment with FHA so my fiance's mother deposited the money in her account and than transferred it to his account, well fha would not accept it and our loan officer said it could have been because she made the deposit and transfer in the same day so now his brother is going to deposit the money into his account and wait a few days then give a cashier's check per the loan officer saying it would be better to do that  but I don't think that is going to work either, I believe they said no because 4k was deposited in the gift donor's account  as shown on the bank statement that needed to be provided and there is no way of knowing where that money come from as it wasn't money that was accumulated in the account but the loan officer said wating a few days would work? I need some help on this because I don't think they will accept the gift money if it shows the gifter had deposited 4k in their account a few days prior to tranferring the money. *THE DEPOSITED MONEY WAS A CASH DEPOSIT INTO THE GIFT DONOR'S ACCOUNT SO THAT IS WHERE I THINK THERE IS A DILEMMA REGARDLESS OF LETTING THE MONEY SIT IN THEIR ACCOUNT FOR A FEW DAYS BUT THE LO THINKS IT WILL WORK"

[redsox31324]

I guess it's really a question of where the money came from. If it's from another account or a retirement account, there should bee a paper trail showing it. I'm assuming the LO wants to make sure it's not a case of borrowed money. Most times the LO will want to see it in an account for a length of time to show its not a newly acquired debt

[ladii06]

the loan officer said to let the money sit in the account for a few days but it was a 4k cash deposit into the account so that's where I think the problem would be as the underwriter has no idea of where they got the cash to just deposit that much money into their account, his mother deposited 4k cash in her account but transferred it to him the same day and the underwriter would not accept it, the loan officer is saying do the exact same thing the monther did but with is brother and let the money sit for a few days and she thinks that will make them say ok?

[ShanetheMortgageMan]

If the problem was that it was a cash deposit into the donor's account then waiting a few extra days isn't going to solve the problem.  The issue is that they can't source where that cash deposit came from like you realize.  While technically all you need is documenting the withdraw from the donor's account (a copy of the cancelled check) some lenders also want to see a 30 day bank statement from the donor.  To solve this with this particular lender you are going to need to have a donor whose bank statement already shows sufficient funds in there and no cash deposits.

[DallasLoanGuy]

shane nailed it.....  

cash doesnt work