How to Spot Large Deposits on Bank Statements by Hand

Large deposits are one of the most common conditions on a purchase file. Catching them before underwriting does saves a round of conditions. Here's a simple manual method you can run on any set of statements.

1. Know the definition you're applying

A common definition, from Fannie Mae's Selling Guide, is a single deposit that exceeds 50% of the total monthly qualifying income for the loan. [1] Other programs (FHA, VA, USDA, Freddie Mac, non-QM) and individual lenders use their own rules and overlays, so confirm the threshold for the loan you're working on before you start.

2. Compute the threshold

Threshold = total monthly qualifying income × 50%

Example: qualifying income is $6,000 a month, so any single deposit over $3,000 is "large" under that definition. Use the qualifying income for the loan, not gross receipts or the average deposit.

3. Scan every statement

For each statement in the file:

1. Look only at credits (deposits, transfers in, mobile deposits, Zelle and wire credits).
2. Mark any single deposit above the threshold. The 50% test is per deposit, so don't add deposits together to reach it. Do note any pattern of smaller deposits from an unclear source; see the FAQ.
3. Note the date, amount and description exactly as printed.
4. Check that you have every page and every month requested. A missing page can hide a deposit.

Keep the list in a simple sheet: date, amount, description, account, and a column for the source.

4. Separate deposits with a printed source

Under Fannie Mae's guidance, a deposit whose source is readily identifiable and printed on the statement, such as payroll, a Social Security payment, a tax refund or a transfer between the borrower's verified accounts, generally doesn't need further documentation unless there's a question about whether the funds were borrowed. [1] If the funds came from another account, you may need that account's statement too.

What still needs sourcing depends on the transaction. On a purchase, large deposits used for the down payment, closing costs or reserves need to be documented; on a refinance, documentation generally isn't required, though borrowed funds still have to be considered. [1] Lender overlays can be stricter.

If part of a deposit is documented, only the unsourced part counts toward the 50% test. [1]

5. Request the documentation

For each remaining deposit, ask the borrower for:

• a letter of explanation (LOE) stating what the deposit was and where it came from, and
• supporting documents: for example a gift letter and the donor's transfer record, a bill of sale, a settlement statement, or the statement of the account the money came from.

A good LOE request lists each deposit by date, amount and account, so the borrower answers exactly what's asked. Send the list once, not one item at a time.

6. Re-check before submission

When documents come back, match each one to its deposit, mark it sourced, and recheck the threshold if qualifying income changed.

FAQ

Is 50% the rule for every loan?

No. It's Fannie Mae's definition and a common starting point. Other agencies, non-QM programs and lenders may use different thresholds or overlays.

Do I combine small deposits?

Not for the 50% test: under Fannie Mae's definition it applies to each single deposit. But Fannie Mae also requires lenders to investigate any sign of borrowed funds, so a pattern of smaller deposits from an unclear source can still draw questions, and some lenders and non-QM programs set their own rules. Check your lender's guidelines.

Who decides whether a deposit is sourced?

You and the underwriter, under the loan's guidelines.

Source (checked 2026-10-15)

1. Fannie Mae Selling Guide, B3-4.2-02, Depository Accounts: https://selling-guide.fanniemae.com/sel/b3-4.2-02/depository-accounts

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