Borrower will be receiving $3200 from a college grant that was given to him, but exceeded the amount needed for tuition.  This is not a "loan" and does not have any repayment requirements.

Can this amount be used to count towards assets for cash-to-close?

If so, how should it be documented?

FHA:   

After talking with Simone at the Atlanta HOC - she stated that we would need to review the paperwork for the grant to be sure there are no restrictions on what it can be used for (ie...tuition/books), and if there is no restriction or housing is an allowable use, then we would need to prove that tuition has been paid, and that this is excess grant money available to be used for cash to close.  But we can not use it towards borrowers MRI.

FNMA: 

Per Anita with FNMA if borrower can source they have paid out of pocket and this refund is truly grants applied and reimbursed – you can use