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Financing · Fannie Mae B3-4.3-09How the lender verifies the earnest money deposit

The earnest money on the sales contract is an acceptable source of funds for both the down payment and closing costs on a Fannie Mae loan. Two things are checked. First, when the deposit counts toward the borrower's minimum contribution, the lender verifies the money came from an acceptable source: the bank statements – or a verification of deposit – must show the average balance over the past two months was large enough to support the deposit; if a canceled check is used, the statements must run through the date the check cleared. Second, the lender verifies the deposit was received, with a copy of the borrower's canceled check or a written statement from whoever holds the deposit. Large deposits, or deposits above what is customary in the area, are evaluated closely.

What the lender needs (B3-4.3-09)

  1. Source

    Two months of statements (or a VOD, Form 1006) showing an average balance large enough to support the deposit.

  2. Cleared

    If a canceled check is the proof, statements up to and including the day it cleared.

  3. Receipt

    A copy of the canceled check, or a written statement from the holder – title, escrow, broker or attorney.

  4. Unclear source

    Extra proof of where the money came from and that it reached the seller, agent, escrow agent or settlement attorney.

What the TC does the day the deposit is made

  • Get the escrow or title company's receipt and put it on the deal.
  • Ask the buyer to pay from the account the lender will see on the bank statements.
  • Tell the buyer to keep the next statement that shows the check or wire clearing.

What slows the loan down

  • A deposit paid from a relative's or business account without paperwork.
  • Cash, money orders or a new account with no two-month history.
  • A deposit much larger than usual in the area – expect questions.

Questions buyers and agents ask

Does the lender check where my earnest money came from?

On a Fannie Mae loan, yes when it counts toward your minimum contribution: your statements must show a two-month average balance large enough to support the deposit (B3-4.3-09).

How does the lender confirm the deposit was paid?

With a copy of your canceled check or a written statement from the holder of the deposit, such as the title or escrow company.

Can earnest money count toward the down payment?

Yes. Fannie Mae accepts the sales contract deposit as a source of funds for the down payment and closing costs.

Related guides

ClosingCode puts the earnest money deadline on the deal and keeps the receipt with it – one place for the agent, the lender and you.

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Source: Fannie Mae Selling Guide B3-4.3-09, Earnest Money Deposit (05/04/2022), selling-guide.fanniemae.com, read October 25, 2026.

General information about Fannie Mae conventional loans, not legal or financial advice. FHA, VA, USDA and other investors have their own rules, and the lender can be stricter. ClosingCode is software; it is not a lender. This guide is not a substitute for the advice or services of an attorney.