How does conventional handle large deposits?
Any deposit that's unusual relative to the borrower's documented income gets flagged for sourcing. Standard threshold: deposits over 50% of one month's gross income trigger documentation requirements. The deposit must be sourced (where it came from), and gift funds need a gift letter.
Plain-English explanation
Lenders pull two months of bank statements and review every line. Large deposits without a clear source (a clearly named payroll deposit, an income transfer between the borrower's own accounts) need a paper trail: deposit slip, gift letter, sale-of-asset documentation, etc. Cash deposits are the hardest to source — sometimes they can't be used as down-payment funds at all, depending on lender overlays. Subject to Fannie/Freddie guidelines.
What can change the answer?
Gift source, seller credit limits, DPA program rules, source-of-funds documentation, and program eligibility (HomeReady, Home Possible) can change the answer.
Want the real answer for your conventional file?
Conventional guidelines are the rule. Your credit, income, DTI, PMI, LLPAs, and Florida payment math are what decide the actual answer.
More conventional questions on Down Payment
Educational only. Conventional loan guidelines, lender overlays, rates, fees, PMI, LLPAs, and underwriting requirements can change. Final eligibility depends on full underwriting review.