troublesome 203k - help!

[Eric Willliamson]

Good afternoon,
I have been buying my first property for the pat 2 months: a triplex. I'm using a 203k loan, which just came back from underwriting--with conditions. I need 3 months of mortgage reserves, which can't be paid for with a gift. I am currently using a $2k gift, $3,400 seller concession, $2,211 bank credit (4.75% interest), and funds from my savings to cover closing.

I am able to get an additional $3500, gift with the idea that it would contribute towards my closing and my savings would remain as reserves. However, the DU is rejecting my file now because it won't differentiate the gift between closing costs and reserves. This means that my $2k gift is also void. Since 203k is FHA, i thought I could use gifts. Thoughts on this?

The lender has given me two options: I need to be added to the account of someone with $5500 worth of sourced funds or I need to find a nonoccupying owner to sign the loan with me--pushing me an additional week away from closing.

I'm trying very hard to find a solution, but I come from small beginnings and I doubt either of to two options are available to me. Is it possible to submit the documents through a different DU with both gift letters at the same time an achieve a different result? The lender said that he is not permitted to manual overwrite the DU. Is there another way to close?????

THANK YOU, for any and all ideas or feedback.