Cash out refi for down payment. Covid rules?

[Samuel Persson]

We are looking to use  a cash out refinance on our current home. We have a second home we are interested in and would move to. We would rent our current home. I spoke with a loan broker and the cash out refi is not a problem, but there are current loan rules in place due to covid buying that blocks us from using the cash as a down payment. They suggested having a family member gift (what are the tax implications ) or hold the money for 2 months to have it cool off and use it then. Do any of you have input for how we should proceed?