Short answer
No, not on a Fannie Mae loan. Credit card financing can never be used for the down payment, and unsecured personal loans, card cash advances and overdraft lines can't be used for the down payment, closing costs or reserves. You can use credit card reward points once they're turned into cash, and money borrowed against something you own, such as a 401(k) or a car, can work.
Can I put any costs on a credit card?
Yes, some. Early fees such as the appraisal or credit report fee can go on a card. The new balance counts in your debt-to-income ratio, and the lender may need to recheck your payment or your savings if the charges are larger, within a limit Fannie Mae sets.
Can I use credit card reward points?
Yes. Points turned into cash before closing can go toward your down payment, closing costs or reserves. If the cash goes into your checking or savings account, no extra papers are usually needed unless it's a large deposit. If not, the lender needs a rewards statement showing the points and their cash value.
What about borrowing against something I own?
Money borrowed against an asset you own is allowed, because it's your own equity. That can include a loan against a car, a CD, savings, stocks or a 401(k). The lender needs the loan terms, proof the lender isn't part of the sale, and proof you received the money. The payment usually counts as a monthly debt, though a loan against your own financial account often doesn't. See using a 401(k) for a down payment.
Is FHA any different?
Not much. HUD's Handbook 4000.1 doesn't accept unsecured signature loans, credit card cash advances or loans against household goods and furniture. A loan fully secured by your own asset, such as savings, a CD, investments or other real estate, can be used if it comes from an independent third party, not the seller, real estate agent or lender. The lender subtracts the loan from that asset's value.
What other options are there?
Gifts from relatives, NH Housing help and seller credits toward closing costs are all common. See gift funds and the NH Housing guide.
Sources
- HUD Single Family Housing Policy Handbook 4000.1, Update 18 (August 2026), Loans (TOTAL): Collateralized Loans
- Fannie Mae Selling Guide B3-4.3-16, Credit Card Financing and Reward Points
- Fannie Mae Selling Guide B3-4.3-17, Personal Unsecured Loans
- Fannie Mae Selling Guide B3-4.3-15, Borrowed Funds Secured by an Asset
Checked November 2, 2026. Rules and dates change, so confirm current details before you rely on them.
General information only, not tax or legal advice. Program availability, eligibility and terms vary by lender and are subject to change and to underwriting approval. Not a commitment to lend.