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Loans · Fannie Mae Selling GuidePaying closing costs with a credit card: what's allowed and the 2% limit

Fannie Mae's Selling Guide (B3-4.3-16) allows costs that come due early in the application – lock-in fees, origination fees, commitment fees, credit report fees and appraisal fees – to be charged to the borrower's credit card, because they aren't extraordinary amounts and the card debt is counted in the debt-to-income ratio; the borrower doesn't have to pay those charges off before closing. Lenders may also allow common and customary fees paid outside of closing to go on a credit card up to a maximum of 2% of the loan amount, if the lender either confirms the borrower has enough liquid reserves to cover the charges on top of the down payment and other closing costs, or recalculates the card payment with the new charges and includes it in the qualifying ratio. Under no circumstances may credit card financing be used for the down payment. Credit card reward points are different: converted to cash before closing, they are acceptable funds for closing costs, the down payment and reserves; if the cash goes into a bank account no extra documents are needed unless it is a large deposit, and otherwise the lender needs the rewards statement showing the points and their cash value before conversion.

Allowed on a credit card (B3-4.3-16)

  1. Early application fees

    Lock-in, origination, commitment, credit report and appraisal fees – no payoff needed before closing.

  2. Fees paid outside closing

    Common and customary fees, up to 2% of the loan amount – if reserves cover them or the card payment is recalculated.

  3. Reward points

    Converted to cash before closing – for closing costs, down payment or reserves.

Not allowed

  • Credit card financing for the down payment – under no circumstances.
  • New card charges change the debt-to-income ratio – the lender must count them.

What the TC can do

  • Ask the buyer to tell the lender before charging any loan-related fee to a card.
  • Remind buyers that the earnest money and down payment can't come from a card.
  • Make sure fees paid outside closing show as such on the Closing Disclosure.

Questions buyers ask

Can I pay closing costs with a credit card?

On a Fannie Mae loan, early fees such as the appraisal and credit report can be charged, and common fees paid outside closing up to 2% of the loan amount if your reserves cover them or the lender recalculates your card payment (Selling Guide B3-4.3-16).

Can I put my down payment on a credit card?

No. Fannie Mae says credit card financing may not be used for the down payment under any circumstances.

Can I use credit card points for closing costs?

Yes, if the points are converted to cash before closing; deposited into your bank account, they need no extra documents unless the deposit is large.

Related guides

In ClosingCode the Closing Disclosure / settlement statement is a standard document on every deal – check the fees paid outside closing before the buyer signs.

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Source: Fannie Mae Selling Guide B3-4.3-16, Credit Card Financing and Reward Points (August 4, 2021), 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.