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Conventional loans · Fannie Mae B3-4.2-05Using money from abroad for the down payment

Fannie Mae requires the lender to document every source of funds used for the down payment, closing costs and reserves – and money held outside the United States and its territories has extra steps. The lender needs documented evidence that the foreign assets were exchanged into U.S. dollars and are held in a U.S. or state-regulated financial institution, and it must verify the funds in U.S. dollars before closing. Every document of foreign origin must be in English or come with a complete and accurate translation attached to it. Because the transfer shows up as a new deposit, the lender also applies the large deposit rules: it may ask where the money came from and how it moved. For a buyer, that means moving the money early – international wires and currency exchange take time, and the funds must be in a U.S. account and verified before closing.

What the lender needs

  1. 1. Exchanged to dollars

    Evidence the foreign assets were converted into U.S. dollars.

  2. 2. In a U.S. institution

    Held in a U.S. or state-regulated financial institution.

  3. 3. Verified before closing

    The funds verified in U.S. dollars before the loan closes.

  4. 4. English documents

    Foreign documents in English, or with a complete, accurate translation attached.

  5. 5. Large deposit rules

    The transfer is reviewed like any large deposit.

What the TC can do

  • Ask early whether any closing money is abroad – and suggest moving it right away.
  • Remind the buyer that translations must be complete and attached to each document.
  • Keep foreign bank records out of email; the buyer uploads them for the lender.

Questions buyers ask

Can I use money from another country for my down payment?

Yes, once it is exchanged into U.S. dollars, held in a U.S. or state-regulated financial institution and verified before closing (Fannie Mae B3-4.2-05).

Do foreign bank statements need a translation?

Yes. Documents of foreign origin must be in English or have a complete and accurate translation attached to each document.

Why does the lender ask about my international transfer?

The transfer is a new deposit, so the lender applies its large deposit rules and may ask for the source of the funds.

Related guides

ClosingCode talks to the buyer in English or Spanish – messages, status page and upload links – so the documents the lender needs arrive without a language barrier.

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Source: Fannie Mae Selling Guide B3-4.2-05, Foreign Assets (05/04/2022), selling-guide.fanniemae.com, read October 26, 2026.

General information about Fannie Mae conventional loans, not financial advice. Each assistance program has its own rules. ClosingCode is software; it is not a lender. This guide is not a substitute for the advice or services of an attorney.