When must a personal account be shown for gift funds?

A personal account must be shown for gift funds to confirm that the funds are a true gift. This requirement is essential in the context of USDA Rural Housing Loans to ensure that the funds provided by the donor are indeed a gift and not a loan that needs to be repaid. By verifying the source of the funds, lenders can assess the borrower's financial stability and the integrity of the funding.

Showing a personal account helps to establish the donor's ability to provide the gift without any expectation of repayment, thus allowing the borrower to qualify for the loan under USDA guidelines. This documentation is especially important in preventing any potential misunderstandings or misrepresentations regarding the nature of the funds, thereby protecting both the lender and the borrower during the loan approval process.