Proof of Funds to Fannie Mae

[Colby Litzenberger]

Hi all - 

I asked about private lending a little while back (http://www.biggerpockets.com/forums/311/topics/144...).  I am back with another question.  I am getting ready to make an offer on a Fannie Mae Homepath house.  My lender is going to pay cash for the house.  

My Realtor is concerned that the cash is not in my name and that if we provide a bank statement from the lender it will raise a red flag with Fannie due to the lender's name not being on the deed.  Does anyone have any experience with this?  Does it indeed raise a red flag, and if so how do you navigate that?  

I am not sure it really would make a difference to Fannie.  I am thinking if I provide proof of funds (from the private lender) and just check the box for no financing contingency then in Fannie's eyes what difference does it make if the proof of funds comes from me, a bank or a private lender?