Is it true that the Mortgage Company cannot accept pillow money as a down payment on a house ?
We recently purchased a home and had saved cash to use as the down payment but the mortgage company wouldn't accept cash, they said they needed it in the form of a check and that they needed to know where the money had come from. Is this true?
Answers | 3
Yes this is true. Lenders are required to show a "paper trail" of money. Fannie Mae, Freddie Mac, and other investors have strict policies on "sourcing & verifying" all funds to close.