Delayed Financing - Cash Purchase with Gift Fund

[Doobie Sims]

I am closing on a BRRRR property that I have purchased all cash and plan on doing renovations using $75,000 in HELOC, $40,000 in gift fund, and $30,000 personal cash. This will be my second investment property, and my first property using all cash. So, I'm somewhat new to the game. I've done A LOT of reading through the forums and through the Fannie Mae guidelines about Delayed Financing. I'm really wanting to get my HELOC paid off asap with it being at 8% interest. So the delayed financing has really been something I want to do. Through talking with my local lender who I've dealt with the one snag it seems I'm running into is the gift fund of $40,000. Fannie Mae states that you cannot use a gift fund to purchase an investment property. However, with delayed financing this seems to get a little tricky. Since the purchase was in all cash, does Fannie Mae count the gift fund to be toward the delayed financing process even with it being an investment property? Any and all help/advice will be greatly appreciated!