Loan Options
What counts as assets for your down payment.
Preparing your down payment and closing costs is an important part of the homebuying process. Different loan programs have different requirements, and understanding which assets can be used helps make sure everything is approved well before closing. Planning early helps avoid delays and keeps your transaction on track.
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Serving Utah, Florida, Idaho, Pennsylvania, and Texas.
Minimum down payment by loan type.
The standard minimums for the four main programs.
Conventional
5% down. Some first time buyer programs allow 3% down for qualified borrowers.
FHA
3.5% down. The most common low down payment path for flexible credit situations.
VA
0% down. For eligible service members and veterans using their VA benefit.
USDA
0% down. For eligible homes in approved suburban and rural areas, within income limits.
What assets can be used.
For mortgage transactions, funds must come from verified and documented sources. Lenders are required to confirm where money originates. That requirement prevents last minute issues at closing.
Depository accounts. Funds held in checking, savings, money market, certificate of deposit, or other depository accounts.
Seasoned funds are simplest. Money deposited into your account at least 30 to 60 days before closing, whenever possible, is the easiest to document.
Two months of statements. The most recent two months of complete bank or investment account statements document your available funds.
Retirement accounts. Funds in a 401(k) or IRA can count, along with documentation showing the withdrawal terms.
Large deposits need a paper trail. Deposits that are large relative to your income, typically 25 to 50% of monthly income, may require documentation showing the source of the funds.
Gift funds from eligible sources. Family members, a fiancé or domestic partner, employers, and approved nonprofit organizations can all be eligible gift sources.
Document early and closing stays calm. Properly documenting your assets early helps ensure a smooth approval process and keeps your purchase moving forward with confidence.
See how your down payment turns into equity.
The loan to value calculator shows your loan amount, your equity, and your loan to value percentage for any home price and down payment.
Run the Loan to Value CalculatorLet’s confirm which of your funds can be used.
Your loan officer will help you pick the best program for your situation and confirm which funds can go toward your purchase. A quick scenario is the place to start.
Check If You QualifyPrefer to talk? Call Austin at (208) 821-0687.