Mortgage Navigator • Conventional • Assets & Reserves
Earnest money deposits
Earnest money is usually creditable toward closing—but source verification can still be required.
Fannie
The sales-contract deposit is an acceptable source for down payment and closing costs. If the earnest money is needed to satisfy the borrower's minimum contribution requirement, the lender must verify that it came from an eligible source.
Why average balances matter
When a verification of deposit is used, the account history must support that the borrower had funds sufficient to make the deposit or the lender must otherwise document its source.
Official guide baseline
Fannie Mae Selling Guide · Freddie Mac Seller/Servicer Guide
Asset eligibility depends on ownership, accessibility, documentation and how the funds are being used.