What do you do on a FHA loan if there are undocumented deposit. Can the borrower return the funds?

Some underwriters will allow you to just (deduct) that amount from your *available funds, assuming you have a reasonable explanation on why you can't document those funds (fyi money from safe, mattress, etc) and can still qualify or afford the downpayment without those funds.Matt Elston, AgSouth, p. 803-324-1131, ext 1

Depending on the underwriting company some will allow you to deduct the amount from your funds that are available, with a reasonable explanation on funds.

Usually, when you disclose an account and that account is the source of your down payment funds, and within that account are undocumented deposits, then I've see some lenders just disallow the cash deposits.. if there isn't enough funds in the account after that then you need to find more funds.. I've also see an underwriter disallow the entire account. Every lender is different. Talk to your loan officer.. he's on your side.. tell him the truth, and he should be savoy enough to work around this.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714 WilliamAcres.com

Jamila, sometimes just a written explanation is acceptable and returning the funds would likely be allowed.