4.1. Types of Acceptable Assets
Do I need a down payment?
As you are preparing to purchase a home, it is important to consider what your down payment may be. Different loan programs require different amounts for the minimum down payment. It is important to review with your experienced loan officer which program is going to be best for you. Below is a comparison of the different options available:
|Minimum Down Payment
If you will be providing the down payment from your own funds, it is important to be prepared with the following to document the money for the down payment:
- Money from checking, savings, money market, certificate of deposit, or other depository accounts may be used for the down payment.
- Money being used toward your down payment should be deposited into your bank account 30-60 days prior to closing on the new home.
- You will need to be prepared to show the most recent two months complete bank statements or investment portfolio statements to document the funds in your account.
- If you are using a retirement account, such as a 401K or an IRA, you will need to provide the terms of withdrawal along with the statement.
- Any deposits in your account being used for the down payment will need to be documented if the deposits are 25%-50% of your monthly income.
- Gifted funds are allowed from family members, fiancé, fiancée, domestic partner, employer & non-profit organizations.