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All investment funds must be documented, detailing acceptable sources such as earnest money deposits, savings and checking accounts, and gift funds, including limits on allowable donors, required subtractions, and documentation procedures.",{"@graph":14,"@context":73},[15,34,56],{"@type":16,"itemListElement":17},"BreadcrumbList",[18,23,27,31],{"item":19,"name":20,"@type":21,"position":22},"https://docshare.wps.com","Home","ListItem",1,{"item":24,"name":25,"@type":21,"position":26},"https://docshare.wps.com/template/","Template",2,{"item":28,"name":29,"@type":21,"position":30},"https://docshare.wps.com/template/forms/","Forms",3,{"item":32,"name":10,"@type":21,"position":33},"https://docshare.wps.com/template/borrowers-cash-investment-in-the-property-funds-to-close-verification-and-documentation-requirements/279867/",4,{"url":32,"name":10,"@type":35,"image":36,"author":41,"headline":10,"publisher":44,"fileFormat":47,"inLanguage":8,"description":12,"dateModified":48,"datePublished":49,"encodingFormat":47,"isAccessibleForFree":50,"interactionStatistic":51},"DigitalDocument",{"url":37,"@type":38,"width":39,"height":40},"https://docshare.wps.com/thumbnails/borrowers-cash-investment-in-the-property-funds-to-close-verification-and-documentation-requirements/279867.png","ImageObject",442,249,{"name":42,"@type":43},"Caleb Sterling","Person",{"url":19,"name":45,"@type":46},"DocShare","Organization","application/pdf","2026-10-23","2026-09-16",true,{"@type":52,"interactionType":53,"userInteractionCount":55},"InteractionCounter",{"@type":54},"ViewAction",14,{"@type":57,"mainEntity":58},"FAQPage",[59,65,69],{"name":60,"@type":61,"acceptedAnswer":62},"How is the borrower’s cash investment amount calculated?","Question",{"text":63,"@type":64},"It must equal the difference between the insured mortgage amount (excluding any upfront MIP) and the total cost to acquire the property, including prepaid expenses and closing costs.","Answer",{"name":66,"@type":61,"acceptedAnswer":67},"What types of funds are acceptable to support the borrower’s cash investment?",{"text":68,"@type":64},"Acceptable sources include earnest money deposits, verified savings and checking accounts, and gift funds from specified eligible donors under stated conditions.",{"name":70,"@type":61,"acceptedAnswer":71},"What documentation is required when gift funds are used?",{"text":72,"@type":64},"A gift letter signed by the donor and borrower must state the gift amount, that no repayment is required, the donor’s contact information, and the donor’s relationship. The lender must also document the transfer using canceled checks, withdrawal documents, and relevant bank records depending on whether funds are deposited or provided at closing.","https://schema.org",{"og:url":32,"og:type":75,"og:title":10,"og:site_name":45,"og:description":12},"article",{"robots":77,"canonical":32},"index,follow",{"doc_id":79,"site_id":7},279867,1789528575,{"code":4,"msg":82,"data":83},"success",[84,89,94,98,103,108,112,117,122],{"id":85,"doc_module":22,"doc_module_name":25,"category_name":86,"show_sort_weight":87,"slug":88},11,"Presentations",90,"presentations",{"id":90,"doc_module":22,"doc_module_name":25,"category_name":91,"show_sort_weight":92,"slug":93},12,"Resumes",80,"resumes",{"id":55,"doc_module":22,"doc_module_name":25,"category_name":95,"show_sort_weight":96,"slug":97},"Invoices",70,"invoices",{"id":99,"doc_module":22,"doc_module_name":25,"category_name":100,"show_sort_weight":101,"slug":102},15,"Posters",60,"posters",{"id":104,"doc_module":22,"doc_module_name":25,"category_name":105,"show_sort_weight":106,"slug":107},16,"Social Media",50,"social-media",{"id":109,"doc_module":22,"doc_module_name":25,"category_name":29,"show_sort_weight":110,"slug":111},17,40,"forms",{"id":113,"doc_module":22,"doc_module_name":25,"category_name":114,"show_sort_weight":115,"slug":116},18,"Letters",30,"letters",{"id":118,"doc_module":22,"doc_module_name":25,"category_name":119,"show_sort_weight":120,"slug":121},21,"Paper Templates",5,"papers-templates",{"id":123,"doc_module":22,"doc_module_name":25,"category_name":124,"show_sort_weight":4,"slug":125},158,"General","general-158",{"code":4,"msg":82,"data":127},{"doc_id":79,"user_id":128,"nickname":42,"user_avatar":129,"doc_module":22,"category_id":109,"category_name":29,"doc_title":10,"doc_description":12,"doc_content":130,"file_id":131,"file_url":132,"file_type":133,"file_size":134,"view_count":55,"is_deleted":4,"is_public":22,"is_downloadable":22,"audit_status":22,"page_count":135,"language":136,"language_code":8,"site_id":7,"html_lang":8,"table_of_contents":137,"faqs":138,"seo_title":139,"seo_description":12,"update_tm":80,"read_time":140},962084925290,"https://ap-avatar.wpscdn.com/davatar_085a072bc5b1113ac321206ff7593b45","Case 8:08-cv-02468-DKC Document 18-5 Filed 10/07/2008 Page 1 of 8  \nExhibit A  \nCase 8:08-cv-02468-DKC Document 18-5 Filed 10/07/2008 Page 2 of 8  \n4155.1 REV-5  \nSECTION 3: BORROWER'S CASH INVESTMENT IN THE PROPERTY  \n2-10 FUNDS TO CLOSE. The cash investment in the property must equal the difference between the amount of the insured mortgage, excluding any upfront MIP, and the total cost to acquire the property including prepaid expenses and closing costs as described in paragraph 1-9.  \nAll funds for the borrower's investment in the property must be verified and documented. Acceptable sources of these funds include the following:  \nA. Earnest Money Deposit. If the amount of the earnest money deposit exceeds 2 percent of the sales price or appears excessive based on the borrower's history of accumulating savings, the lender must verify with documentation the deposit amount and the source of funds. Satisfactory documentation includes a copy of the borrower's cancelled check. A certification from the deposit-holder acknowledging receipt of funds and separate evidence of the source of funds is also acceptable. Evidence of source of funds includes a verification of deposit or bank statement showing that at the time the deposit was made the average balance was sufficient to cover the amount of the earnest money deposit.  \nB.  Savings and Checking Accounts. A verification of deposit (VOD), along with the most recent bank statement, may be used to verify savings and checking accounts. If there is a large increase in an account, or the account was opened recently, the lender must obtain a credible explanation of the source of those funds.  \nC.  Gift Funds. An outright gift of the cash investment is acceptable if the donor is the borrower’s relative, the borrower's employer or labor union, a charitable organization, a governmental agency or public entity that has a program to provide homeownership assistance to low-and moderateincome families or first-time homebuyers, or a close friend with a clearly defined and documented interest in the borrower. The gift donor may not be a person or entity with an interest in the sale of the property, such as theseller, real estate agent or broker, builder, or any entity associated with them. Gifts from these sources are considered inducements to purchase and must be subtracted from the sales price. No repayment of the gift maybe expected or implied. (As a rule, we are not concerned with how the donor obtains the gift funds provided they are not derived in any manner from a party to the sales transaction. Donors may borrow gift funds from any other acceptable source provided the mortgage borrowers are not obligors to any note to secure money borrowed to give the gift.) This rule also applies to properties of which the seller is a government agency selling foreclosed properties, such as the Veterans Administration or Rural Housing Services. Only family members may provide equity credit as a gift on a property being sold to other family members. These restrictions  \nCase 8:08-cv-02468-DKC Document 18-5 Filed 10/07/2008 Page 3 of 8  \n4155.1 REV-5  \non gifts and equity credit may be waived by the jurisdictional HOC provided that the seller is contributing to or operating an acceptable affordable housing program.  \nFHA deems the payment of consumer debt by third parties to be an inducement to purchase. While FHA permits sellers and other parties to make contributions of up to six percent of the sales price of a property toward a buyer's actual closing costs and financing concessions, this policy applies exclusively to the provision of mortgage financing. Other expenses paid on behalf of the borrower must result in a dollar-for-dollar reduction to the sales price. The dollar-for-dollar reduction to the sales price also applies to gift funds not meeting the requirement that the gift befor downpayment assistance and is provided by an acceptable source. When someone other than a family member has paid off d","cbCaicT6syPxJeNE","https://ap.wps.com/l/cbCaicT6syPxJeNE","pdf",8984452,129,"English","# Section 3: Borrower's Cash Investment in the Property\n## Funds to Close\n## Verified and Documented Sources\n## Documentation Requirements for Gift Funds","[{\"question\":\"How is the borrower’s cash investment amount calculated?\",\"answer\":\"It must equal the difference between the insured mortgage amount (excluding any upfront MIP) and the total cost to acquire the property, including prepaid expenses and closing costs.\"},{\"question\":\"What types of funds are acceptable to support the borrower’s cash investment?\",\"answer\":\"Acceptable sources include earnest money deposits, verified savings and checking accounts, and gift funds from specified eligible donors under stated conditions.\"},{\"question\":\"What documentation is required when gift funds are used?\",\"answer\":\"A gift letter signed by the donor and borrower must state the gift amount, that no repayment is required, the donor’s contact information, and the donor’s relationship. The lender must also document the transfer using canceled checks, withdrawal documents, and relevant bank records depending on whether funds are deposited or provided at closing.\"}]","Borrower's Cash Investment in the Property - Funds to Close - Verification and Documentation Requirements | PDF",45]