It depends on whether the line of credit is secured. Secured funds are acceptable; unsecured funds are a problem. The lender will source your earnest money along with the rest of your funds to close, and the two cases go very differently: - A secured line, like a HELOC against another property you own, is backed by an asset, so the draw is acceptable for earnest money, down payment, and closing costs. The payment on the line counts in your debt-to-income ratio. - An unsecured personal line or credit-card advance is an unacceptable source under FHA guidelines, and Fannie Mae and Freddie Mac take the same position: borrowed funds must be secured by an asset. Borrowing your skin in the game with nothing behind it defeats the purpose of the requirement. If your earnest money came from an unsecured draw, plan to fund the down payment and remaining cash to close from acceptable assets, and possibly repay that draw. Most important, tell your loan officer now. A sourcing problem flagged early gets fixed; one discovered in underwriting stalls the whole file.