With FHA, did you know that in some instances, cash-on-hand can be an acceptable source of money for the down payment and closing costs? So, if you are working with a client who tells you they have mattress money, call me first as there are specific rules to verify the money.
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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 […]