"Gift" to wife for down payment

[Michael Hooper]

I'm in the process of getting a loan for an investment property in my wife's name. I put it solely in her name because I thought it would be easier since she has a good paying job and all the other property debts are in my name. We're getting ready to close and they've asked where the down payment is coming from. I was going to pull it from my real estate account that I got before we were married and never put my wife's name on the account. I was getting it from there because our joint account doesn't have enough in it. Well, we a few days out from closing and the bank has told me that I can't "gift" my wife funds for a down payment on an investment property. I asked if I could just "loan" it to her on a promissory note and they said you also can't use unsecured loans as a down payment. 

So.... I feel kinda stuck at the moment. We've got the money, but no real way to use it that will satisfy the banks conditions. Anyone have any advice or can point to any rules that would say otherwise?

[Matt Devincenzo]

Simplest may be to add her to your RE account...whether they still want to see her name on the account for two statements or not is a question I would ask. I've done exactly this and made sure both our names are listed on accounts, and then generally they will ask for a simple letter stating that she is free to use those funds for her sole benefit and this isn't a loan (something like that). Maybe doing it even now will be sufficient to address the issue.