Large Deposits And Your Mortgage
On Fannie Mae, FHA, and at least one VA program, a large deposit is about half of your monthly qualifying income or more. On a purchase, and on some refinances, you may need to show where it came from.
What you need to document a large deposit
Each item below is a requirement of Fannie Mae, FHA, or at least one other program we offer.
- On a Fannie Mae purchase, proof of where a large deposit came from if you need those funds for the down payment, closing costs, or reserves.
- A written explanation, proof of an asset you sold, or proof of a gift, such as a wedding invitation.
- Nothing more for payroll, Social Security, or tax refund deposits when the source is printed on the statement.
- Virtual currency exchanged into U.S. dollars before it counts.
- On FHA, cash on hand deposited in a bank or held by the escrow or title company.
- On FHA, an explanation of how and over how long cash on hand was saved, in an amount the lender finds reasonable.
Over half of monthly income
Refinance is simpler
Some deposits explain themselves
Unsourced funds are subtracted
Cash on hand on FHA
Jumbo rules differ
What Counts As A Large Deposit
On Fannie Mae, FHA, and at least one VA program, a single deposit of about half of your monthly qualifying income or more.
Fannie Mae defines a large deposit as a single deposit that exceeds 50% of the total monthly qualifying income for the loan. FHA uses the same line, and at least one VA program asks for the source of a deposit of 50% or more.
On a Fannie Mae refinance, no documentation or explanation is required for large deposits, though the lender still makes sure no borrowed funds are missed. On a purchase, you only document the source if you need those funds for the down payment, closing costs, or reserves, and if you cannot, the unsourced amount is subtracted from your verified funds. Using a gift? See our gift funds page.
Cash kept at home is handled differently by program. FHA allows cash on hand once it is deposited or held by escrow, with an explanation of how it was saved, and the lender must find the amount reasonable for your income and spending. Fannie Mae does not accept cash on hand for the down payment or closing costs, except on a one-unit HomeReady purchase when you customarily pay in cash, the funds are on deposit, and you sign a statement of where they came from.
Why choose Saxton when you have large deposits
For buyers with bonuses, sales, gifts, or cash savings on their statements who want to know what needs a paper trail.
Over Half Of Monthly Income
Fannie Mae and FHA call a single deposit large when it is more than 50% of your total monthly qualifying income.
Refinance Is Simpler
On a Fannie Mae refinance, large deposits do not need documentation or an explanation, though the lender still checks that no deposit was borrowed.
Some Deposits Explain Themselves
Payroll direct deposits, Social Security payments, and tax refunds need nothing more on a Fannie Mae loan when the source is printed on the statement.
Unsourced Funds Are Subtracted
On a Fannie Mae purchase, if a large deposit you need cannot be sourced, your verified funds are reduced by that amount.
Cash On Hand On FHA
FHA allows cash saved at home once it is deposited or held by escrow, with an explanation of how and over how long you saved it. At least one VA program does not allow cash on hand.
Jumbo Rules Differ
At least one jumbo program does not count cash deposits toward your available funds, whether or not they are large deposits.
Hear From Homeowners Like You
Frequently Asked Questions
Straight answers about large deposits and your home loan.
On Fannie Mae and FHA loans, a single deposit that is more than 50% of your total monthly qualifying income.
Not on a Fannie Mae refinance. Documentation or an explanation is not required, though the lender still makes sure no deposit was borrowed money.
On a Fannie Mae purchase, your verified funds are reduced by the amount of the undocumented large deposit.
Examples include your written explanation, proof you owned an asset you sold, or a wedding invitation to support gift funds.
On FHA, yes, once it is deposited in a bank or held by escrow, you explain how you saved it, and the lender finds the amount reasonable. Fannie Mae does not accept cash on hand except on a one-unit HomeReady purchase when you customarily pay in cash, the funds are on deposit, and you sign a statement of where they came from.
On a Fannie Mae loan, a large deposit may come from virtual currency that was exchanged into U.S. dollars. It cannot be used as earnest money.
On a Fannie Mae loan, payroll direct deposits, Social Security payments, and tax refunds need no further explanation when the source is printed on the statement.
Find out what you qualify for
Tell us about the deposits on your statements and what you want to buy, and we will show you what needs a paper trail.
Get Pre-QualifiedLoan amounts, rates, terms, and eligibility are subject to credit approval, asset and income verification, appraisal, and program guidelines. Draw requirements and variable rate terms apply. Program availability varies by state. Not all applicants will qualify. Saxton Mortgage, LLC is an Equal Housing Lender.