Bank is Tripping Over Cash Savings for Self Employed, Help Please

[Justin B.]

I had mentioned in a prior thread that my self employed friend is trying to get a mortgage, has had her own business for 3.5 years now, and the last thing holding up this loan is that the bank is giving her a rough time because she deposited $2,000 cash savings she had at home in to her bank to get a certified check for the earnest money down payment. The bank is saying that's unacceptable, that there needs to be a trail. How does she prove a paper trail from cash savings? She simply saves up 20% of her cash to put aside for buying a home and part of the down payment was from selling her car on craigslist, which we had to track the buyer back down to get a signed affadavit saying she paid cash for the car.

Should she just go somewhere else? How can she explain the $2,000 in savings? The bank is treating her like a criminal because she's self employed and saves cash.

Any advice would be greatly appreciated!