Explanation letter for cash depostied in my account.

If the funds are traceable in any way, show that to the underwriter. Funds need to be sourced, or prove where they came from. If you can show there was a wire from bank to bank, or show the withdrawal from the gifting donor, and a deposit for the same amount into your bank, along with a detailed letter about the transaction and a gift letter then the underwriter may accept it. If it was plain cash, and its a large amount, the underwriter may not accept it. Talk to your loan officer, they may be able to advise you better.

It is very important that these funds be verified, unless they have been in your account for more than 2 months. You will need to state in your explanation that it was a gift from family members - but you will also have to papertrail that money as well, showing where it came from. They are also likely to ask your family to write and gift letter - any loan officer who knows that they are doing will guide you - if not, then you should call me!

As cgummer notes, the key is just sourcing the gift, which typically involves a bank statement from the gift donor showing they had the money in their account to gift, and then the transfer documents; a copy of the check or wire from that account to yours, and a deposit receipt into your account. I'm guessing that someone would not send you a large amount of cash internationally through the mail - way too dangerous, so hopefully it was indeed by check or wire. The lender will also provide a gift letter form that both you and the gift donor fill out, explaining the source of the gift, and also attesting that the gift is indeed a gift, and that the donor does not expect repayment. Feel free to contact me with any further concerns.

Lenders must look at your last two months bank statements. Any large and unexplained deposits must be explained. A gift may be acceptable depending on the loan program. A simple letter saying is was a gift is not enough. You will have to paper trail, prove and document the gift, plus the gifting person sign a gift letter, and maybe more... www.WI_MortgageBroker.com

Javad,Money that has come from another county must be verified through IRS forms and provide sufficient document that funds have been yours for at least 60 days. Feel free to contact our office and talk to one our Sr. Mortgage Advisors for more information.

Your lender should not leave you hanging in the wind like this. They should ask you verbally where it came from and give you specific direction on how to document it. Every loan type requires this documented differently and even different lenders want gifts documented differently on the same loan types. Only your Loan Officer can answer this for you.