My husband is  getting a FHA loan because they are saying his front ratio is too high at 30 for USDA and his credit score is 625. My question is I am not on the loan so could I gift him the down payment and if so do they need to know where i got the funds from to give him. I got approved for a personal loan that will cover the down payment but do i have to disclose that it is a loan for me not him or do i just have to show a withdrawal receipt from my account going into his account. I am really stressed trying to get a loan for our home that is being built and we are supposed to close on 10/27/11. Thank you

As long as you are not on the loan, and are not borrowing the funds from an interested party to the transaction...you should be fine. Here are our guidelines relating to your issue.

Every bank has different requirements for the gift fund documentation.  The general guidelines are good to know, and they are the start place for requirements  - our bank would required a copy of your account showing the account with the funds on deposit, a copy of the gift check and a copy of your husbands account showing the deposit was made and cleared.  We would not ask where your funds came from if you are not on the loan.   There is also a gift letter for you to sign - the lenders are concerned about how the borrower is going to pay back a loan - and they want to be sure the gift is from the right source per the guidelines and that it is a true gift and your husband does not have to repay the gift.  You should be just fine for this transaction. 

They will want a paper trail of the funds.

Your husband needs to address this immediately with his loan officer.

Good Luck.