Loans · Fannie Mae Selling GuideAcceptable down payment sources: what counts and what doesn't
Fannie Mae's Selling Guide spells out which non-bank assets can pay a down payment and closing costs. Vested stocks, government bonds and mutual funds count if their value can be verified – by the latest monthly or quarterly statement, net of any margin account; vested stock options count at their exercise gain; if the value is at least 20% more than the funds needed, proof of receiving the sale proceeds isn't required, otherwise the lender documents the proceeds (B3-4.3-01). Selling a personal asset such as a car works if the buyer isn't a party to the home sale or the mortgage; the lender documents ownership, transfer and receipt of the money, and when the proceeds are more than 50% of the monthly qualifying income it uses the lesser of an independent valuation and the actual price (B3-4.3-18). A bridge or swing loan is acceptable if it isn't cross-collateralized against the new home and the borrower can carry all the payments (B3-4.3-14). Personal unsecured loans – signature loans, credit card lines of credit, overdraft protection – are not acceptable for the down payment, closing costs or reserves (B3-4.3-17). Cash-on-hand isn't acceptable either, except for HomeReady loans (B3-4.3-20).
Acceptable (with documentation)
Stocks, bonds, mutual funds
Vested; valued by the latest statement, net of margin. Proof of sale proceeds needed unless value is 20%+ above funds needed.
Vested stock options
Valued at the gain from exercising and selling at the current price. Non-vested options don't count.
Sale of a personal asset
Buyer of the asset isn't a party to the home sale or loan; ownership, bill of sale and deposit documented.
Bridge / swing loan
Not cross-collateralized against the new home; all payments shown to be affordable.
Life insurance cash value
A policy loan or surrender; the insurer's check or payout statement documents receipt.
Trust account
If the borrower has immediate access; value confirmed in writing by the trustee or trust manager.
Credit card reward points
Converted to cash before closing.
Not acceptable
- Personal unsecured loans: signature loans, credit card lines of credit, overdraft protection.
- Cash kept at home (cash-on-hand) – except on HomeReady loans.
- Non-vested stock options.
- Credit card financing for the down payment – never allowed.
- Sweat equity – only in specific HomeReady transactions.
What the TC can do
- Ask the buyer early where the down payment comes from and pass it to the lender.
- If an asset sale or stock sale is planned, put the lender's document deadline on the deal.
- Flag cash deposits or new loans before closing – they can delay clear to close.
Questions buyers ask
Can I use a personal loan for a down payment?
Not on a Fannie Mae loan. Personal unsecured loans – signature loans, credit card lines of credit, overdraft protection – aren't acceptable for the down payment, closing costs or reserves (Selling Guide B3-4.3-17).
Can I use cash I keep at home for a down payment?
Cash-on-hand isn't acceptable for a standard Fannie Mae loan; HomeReady loans may allow it (Selling Guide B3-4.3-20).
Do I have to sell my stocks before closing?
Not if their value is at least 20% more than the funds you need for the down payment and closing costs; otherwise the lender documents that you received the sale proceeds (Selling Guide B3-4.3-01).
Can I sell my car to raise the down payment?
Yes, if the buyer of the car isn't part of the home sale or the loan; the lender documents ownership, the bill of sale and the deposit of the money (Selling Guide B3-4.3-18).
Related guides
Add the lender's document deadline as a task with an owner and due date on the deal in ClosingCode, so the asset paperwork doesn't hold up clear to close.
Start free trialSources: Fannie Mae Selling Guide B3-4.3-01 Stocks, Stock Options, Bonds, and Mutual Funds (6/30/2015); B3-4.3-14 Bridge/Swing Loans (4/1/2009); B3-4.3-17 Personal Unsecured Loans (9/20/2010); B3-4.3-18 Sale of Personal Assets (12/16/2020); B3-4.3-20 Anticipated Savings and Cash-on-Hand (4/1/2009); B3-4.3-19 Cash Value of Life Insurance (5/27/2014); B3-4.3-02 Trust Accounts (4/1/2009); B3-4.3-16 Credit Card Financing and Reward Points (8/4/2021); B3-4.3-13 Sweat Equity (4/15/2014) – read at selling-guide.fanniemae.com on October 26, 2026.
General information, not financial advice. The lender decides which funds are acceptable. ClosingCode is software; it is not a lender. This guide is not a substitute for the advice or services of an attorney.