Down Payment Sources Calculator
Find out exactly which down payment sources your loan program accepts. Compare FHA, conventional, VA, USDA, and jumbo rules for gifts, personal savings, retirement accounts, grants, and asset sales — with full documentation requirements.
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Enter Funds from Each Source
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Down Payment Needed
$45,000
Covered — $0 surplus available for closing costs
Total Funds Available
$45,000
Shortfall / Surplus
+$0
Gift % of Total
33.3%
Max Seller Concessions
6% ($27,000)
Source Eligibility for Conventional (Fannie/Freddie)
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Personal Savings / Checking — 100%
Seasoning required if large deposits exist (60-90 days in account).
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Gift Funds — Varies by LTV
Primary: gifts allowed. < 20% down: gifts cannot be entire down payment for investment properties. Must have gift letter.
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Retirement Account (401k/IRA) — 100% with docs
401(k) loan or withdrawal allowed. Vested balance statement required. Monthly payment counted in DTI if 401(k) loan.
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Sale of Asset (stocks, car, etc.) — 100%
Proceeds documented with settlement statement or receipt. Funds must be traceable.
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Down Payment Grant / Assistance — 100%
Eligible grant programs accepted. Must be true grant, not repayable second mortgage.
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Seller Concessions / Credits — Not a source
Seller credits reduce closing costs only. Cannot be applied to down payment.
Advanced
Seasoning Rules & Documentation
60-90 day seasoning, large deposit explanations, source documentation requirements
"Seasoned" funds have been in your account for 60-90 days. Seasoned funds require no source documentation. Unseasoned funds require a full paper trail showing where the money came from.
Conventional Seasoning
60 days
Funds in account 60+ days need no source explanation.
FHA Seasoning
60 days
Same 60-day rule. Large deposits within 60 days need letters of explanation.
VA Seasoning
60 days
VA follows similar seasoning guidelines to conventional.
Jumbo Seasoning
90 days
Jumbo lenders often require 90 days of seasoning. Lender-specific.
What counts as seasoned: Funds sitting in checking, savings, money market, or brokerage accounts for the required period. Moving money between your own accounts does not reset the clock — just document that it is the same money. Large transfers from outside require tracing.
Pro
Professional Simulator
Gift fund documentation, retirement account strategies, seller concession optimization
Gift funds require a complete paper trail. Missing documentation is a top reason for loan denials and delays. Here is exactly what is required:
1. Gift Letter
Signed letter stating: donor name, relationship, donor address, amount, property address, and — critically — "This is a gift. No repayment is required or expected." If repayment is expected, it is a loan, not a gift, and must be treated as debt.
2. Donor Bank Statement
Donor's bank statement showing sufficient funds exist to cover the gift amount. Must show the donor's name, account number (last 4 OK), and the balance before the transfer.
3. Transfer Documentation
Wire confirmation, check copy, or bank statement showing the transfer from donor to recipient. The paper trail must connect donor account to recipient account without gaps.
4. Recipient Account Confirmation
Your bank statement showing the funds deposited. Underwriter will verify the amount matches the gift letter. Any discrepancy requires written explanation.
5. Acceptable Donors by Program
FHA: relative, employer, charitable organization, government agency. Conventional: relative (Fannie/Freddie definition). VA: any person. USDA: relative. Jumbo: typically relative only, lender-specific.
How to Use This Down Payment Sources Calculator
Select your Loan Program (FHA, Conventional, VA, USDA, or Jumbo) and enter your Purchase Price and planned Down Payment %. Then enter the amount you plan to contribute from each source: personal savings, gift funds, retirement accounts, asset sale proceeds, and grants. The calculator instantly shows which sources are accepted by your program and whether you have sufficient funds.
Different loan programs have very different rules about where your down payment can come from. FHA allows 100% gift funds; Jumbo loans typically require mostly your own money. Getting this wrong can cause a loan denial even if you have enough total funds.
Down Payment Source Rules by Program
Required Down Payment = Purchase Price × Down Payment %
Total Sources = Savings + Gifts + Retirement + Asset Sale + Grant
Shortfall = MAX(0, Required Down − Total Sources)
Surplus = MAX(0, Total Sources − Required Down)
Total Sources = Savings + Gifts + Retirement + Asset Sale + Grant
Shortfall = MAX(0, Required Down − Total Sources)
Surplus = MAX(0, Total Sources − Required Down)
Example: FHA Loan with Gift Funds
$350,000 purchase, 3.5% down, FHA loan
| Purchase Price | $350,000 |
| Required Down (3.5%) | $12,250 |
| Personal Savings | $5,000 |
| Gift from Parents | $7,500 |
| Total Sources | $12,500 |
| Shortfall | $0 (surplus $250) |
| Gift % of Down Payment | 60% — allowed by FHA |
| Same scenario on Jumbo loan | Gift likely NOT acceptable |
FHA allows 100% gift funds, making it popular for buyers with generous family support but limited personal savings. The same sources would not work for a Jumbo loan, which typically requires predominantly own funds.
Seasoning and Documentation Rules
- Seasoned funds — money in your account for 60-90 days (varies by program) requires no source documentation.
- Large deposits — any deposit over 50% of your monthly gross income requires a written explanation and paper trail.
- Gift letters — must state donor name, relationship, amount, property address, and confirm no repayment is required.
- Gift transfer documentation — donor bank statement plus wire confirmation connecting donor account to your account.
- Retirement funds — vested balance statement required. If borrowing from 401(k), monthly payment counted in DTI.
- Asset sales — bill of sale or settlement statement documenting the transaction and proceeds.
Frequently Asked Questions
It depends on the loan program. FHA, VA, and USDA loans allow 100% gift funds for the down payment. Conventional loans allow gifts but may require the borrower to contribute some own funds when the down payment is below 20% and the loan is on an investment property. Jumbo loans typically require the majority of funds to be the borrower's own money. All gift funds require a signed gift letter confirming no repayment is expected.
A gift letter is a signed document from the donor stating: the donor's name and relationship to borrower, the donor's address, the amount being gifted, the property address, and — most critically — that the funds are a gift and no repayment is required or expected. If any repayment is expected, the funds are a loan (not a gift) and must be treated as debt in your DTI calculation. The letter must be signed and dated, and lenders will verify it with the donor's bank statement.
Yes, in two ways. A 401(k) loan allows you to borrow up to $50,000 or 50% of your vested balance (whichever is less) without taxes or penalties — but the monthly repayment is counted as debt in your DTI. A 401(k) hardship withdrawal is taxed as ordinary income and typically incurs a 10% early withdrawal penalty — generally a poor choice due to high cost. If you have an IRA, first-time homebuyers can withdraw up to $10,000 without the 10% penalty (income tax still applies).
No. Seller concessions reduce your closing costs — they do not count as a down payment source for any loan program. They are limited to 3-9% of the purchase price depending on the loan program and down payment amount. Seller credits can offset your origination fees, appraisal, title, and prepaid costs, freeing up your own cash for the down payment, but the down payment itself must come from eligible borrower sources.
Seasoning means your funds have been sitting in your account long enough that the lender does not need to document where they came from. For conventional and FHA loans, funds seasoned for 60 days require no further documentation. For jumbo loans, 90 days is typical. Funds less than 60 days old require a paper trail showing the source — pay stubs, asset sale proceeds, inheritance documents, etc. Moving money between your own accounts does not reset the seasoning clock as long as you can document the movement.