Loan or gift for reserve requirements?

[Samantha Klein]

Let's say an investor is buying a 4 plex for 150k putting 25% down and needs to have 20k in liquid reserves per the bank, if you were short say 10k, can you borrow 10k for the remaining or is that not allowed? I know it's not allowed for the DP but curious about the reserve requirements. 

[Matt H.]

Well technically if you borrow it you would have to add that payment to your DTI. You're also allowed generally allowed gift funds no limit. But something people often forget is you can often use retirement accounts at 60 to 75% of market value for reserves.