FHA Cash on Hand: When is cash on hand acceptable for an FHA loan?
Answer: FHA does allow Cash on Hand as an acceptable source of funds in certain situations. Handbook 4000.1 II.A.4.d.iii.(B) Cash on Hand refers to cash held by the Borrower outside of a financial institution. To include Cash on Hand as liquid assets for cash to close or Reserves, the Mortgagee must: verify that the Borrower’s […]