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          Cash Assets
          Thirdly, after looking at your credit and capacity to repay, a lender
          will want to ensure that you have enough cash assets to cover
          closing costs and other related expenses such as moving.  Not only
          will you have to show the funds, but you also need to show the
          source as well.

          Funds can be borrowed to take care of your downpayment and
          closing obligations.  Most lenders will only allow secured loans from
          an IRA or your 401K.  Any unsecured loans taken will be considered
          in the calculation of your debt-to-income ratio.

          You can also use funds given to you as a gift.  Any such gift must be
          accompanied by a “gift letter’ signed by your donor.  The letter
          must state the money is a gift, and repayment is not expected.  Gift
          can be given by:

            ◊ An unmarried partner

            ◊ Religious nonprofit


            ◊ Friends

            ◊ Relatives

            ◊ Your employer or labor union


            ◊ Charitable organizations

            ◊ A  government  agency  or  public  entity  that  provides  such
              assistance

          Lenders will also want to see verification from the donor.  This will
          be a check, deposit receipt and bank statement that shows the
          donated funds.

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