Cash for downpayment

[Avery Biles]

We have a lender saying we cant use cash as a down payment for a house, and that we would have to distribute the money to family/friends bank accounts then get them to wire the funds to the the lender. I'm not an expert at this but something is off to me has anybody been told this as well.

Thank you,

[Tyler Warrick]

All funds that you use towards your down payment + closing cost must be vested for at least 2 months. If you are referring to cash as in mattress money/physical cash it cannot be documented.

Gift funds however, typically don't need to be sourced. Just make sure the lender will allow for x amount of gift funds depending on the loan program you are going with.