B3-4.3-02, Trust Accounts (04/01/2009)

Funds disbursed from a borrower’s trust account are an acceptable source for the down payment, closing costs, and reserves provided the borrower has immediate access to the funds.

To document trust account funds, the lender must:

• obtain written documentation of the value of the trust account from either the trust manager or the trustee, and

• document the conditions under which the borrower has access to the funds and the effect, if any, that the withdrawal of funds will have on trust income used in qualifying the borrower for the mortgage.