Assets
Should gift funds be verified in the donor's or applicant's account?
There is no specific requirement in the
VA Lender's Handbook. The lender should obtain a gift letter. Many lenders obtain documentation of the Veteran's receipt of funds from a donor. This ensures that the Veteran did not obtain other financing to cover the closing costs.
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Can the Veteran's retirement fund be included as liquid assets?
Retirement funds
cannot be considered liquid unless you are sure they can be liquidated. Lenders must also determine what amount of the funds can potentially be liquidated (i.e. 75%, etc.).
Generally, VA would consider these accounts a compensating factor (ability to accumulate savings) for manual underwriting or a non-depository asset for automated underwriting.
Special circumstances may be discussed with the Regional Loan Center having jurisdiction over the property.
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