Typically sources of down payment have to come from the borrower’s own resources . These would include:
- Bank accounts,
- investment accounts,
- funds from a business,
- the sale of a property,
Based on a client’s credit score and loan to value gifted down payments are accepted where an immediate family member provides the down payment. A gift letter has to be signed. Some lenders will allow the down payment to come from a credit facility such as line of credit. These exceptions are subject to lender qualification and are not available to every borrower.