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An income of around $260,000 a year could allow you to afford a $900,000 mortgage, assuming you don’t have other significant debt, such as student loans. But a variety of factors determine how much house you can afford, including how much you have saved for a down payment and your credit history, to name two. The income needed for a $900K mortgage also comes down to the loan term, and interest rate.

Here’s a closer look at the variables that impact how much house you can afford.

Income Needed for a $900,000 Mortgage

How much income is needed for a $900K mortgage loan? Though mortgages don’t carry specific income requirements, you’ll need to show that you can afford closing costs (typically 2% to 6% of the home sale price), and the down payment.

Of course lenders also look at your income to assess if you can afford monthly mortgage payments over the life of the loan. Crunching the numbers with a home affordability calculator shows that the income needed for a home valued at $1,000,000 with a down payment of $100,000 is about $260,000. Note that multiple forms of income, such as dividends from investments, can count toward your gross income.

In many parts of the United States, a mortgage exceeding $806,500 is considered a jumbo loan. These larger mortgages typically have stricter lender requirements because they are nonconforming loans, meaning they’re not guaranteed by the government in the event of default.

So if you’re in the market for a $900,000 jumbo loan, you may need to put at least 10% down. Let’s suppose you qualify for a 30-year fixed rate mortgage with a 7% interest rate. Using a mortgage calculator, the monthly payment comes out to about $6,000 if you put 10%, or $100,000, toward a down payment on a property that costs $1,000,000.

Following the 28/36 rule, your home payments should be at or below 28% of your income. Total debt payments, including your mortgage payment, shouldn’t exceed 36% of your income. Using the example above, you’d need to earn $21,666 a month ($260,000 a year) to afford a $6,000 mortgage while still following the 28% guideline.

What Is a Good Debt-to-Income Ratio?

Your debt-to-income (DTI) ratio is calculated by dividing all your fixed monthly debts — like student loans or auto loans — by your gross monthly income. For a jumbo loan, a strong DTI ratio is essential to qualifying. Having a DTI ratio of 43% or less is recommended, though lenders may want to see a ratio as low as 36%.

What Determines How Much House You Can Afford?

A variety of factors determine how much house you can afford. So far, we’ve covered income, debt, and debt-to-income ratio. Additionally, your credit score and the amount you have saved for a down payment will impact your homebuying budget if financing a home purchase. If you have less saved for a down payment, you’ll need to demonstrate a strong credit history and that you can manage higher monthly payments.

Location plays a role in home affordability. A $900,000 mortgage goes a long way in the most affordable states. In pricier markets, a $900,000 mortgage can still open the door to homeownership, but with significantly less square footage.

Home affordability also varies between different types of mortgage loans. Certain government-backed loans let buyers put less money down, but this may mean being subject to private mortgage insurance.

Recommended: Cost of Living by State

What Mortgage Lenders Look For

What do you need to qualify for a $900,000 mortgage? Lenders look at a variety of factors when evaluating a borrower and setting the loan terms during the mortgage preapproval process. In terms of income, lenders prefer borrowers who have stable and predictable income. They’ll also consider your credit history, existing debt, down payment amount, and assets.

$900,000 Mortgage Breakdown Examples

A monthly payment on a $900K mortgage can vary widely depending on the type of mortgage and loan terms. Using a mortgage calculator with taxes and insurance included can give you a more exact estimate of your expected mortgage costs.

For example, suppose you secure a 30-year fixed-rate mortgage with a 6% interest rate. With a 10%, or $100,000, down payment, you’d have a total monthly payment (principal, interest, insurance, and taxes) of $6,604.

Increasing the down payment to 20% would cut the monthly payment to $6,000. Whereas a jump in interest to 6.5% would bump up the monthly payment to $6,264.

In the 20% down payment scenario, which has the lowest monthly payment, you’d need to earn $21,666 a month ($260,000 a year) to satisfy the 28/36 rule. Again, this assumes that you don’t have significant other debts to pay each month.

Pros and Cons of a $900,000 Mortgage

Financing a larger home purchase has its advantages and drawbacks. A $900K mortgage can mean more funds for renovations and other financial goals.

On the other hand, a jumbo loan or larger mortgage is usually tougher to qualify for. In the case of a jumbo loan, rates could be higher since this loan type isn’t guaranteed by Fannie Mae or Freddie Mac. And with a larger loan, you’ll see higher monthly payments and closing costs.

How Much Will You Need for a Down Payment?

Borrowers can expect to put 10% – 20% toward a down payment on a $900,000 mortgage. This amounts to $100,000 – $200,000, and doesn’t include closing costs. Certain government-backed loans can allow a smaller down payment, but borrowing $900,000 is only possible in designated high-cost areas.

Can You Buy a $900K Home With No Money Down?

You could buy a $900K home with no money down through a USDA loan or VA loan. However, getting a $900,000 USDA loan is only possible in a small selection of counties. The maximum amount for 2024 is $919,800 in designated high-cost areas.

Similarly, the limit on VA loans is below $900,000 in most U.S. counties. But some high-cost counties have maximum loan amounts of up to $1,209,750.

Can You Buy a $900K Home With a Small Down Payment?

If you don’t qualify for a USDA loan or VA loan, there are other options to consider. An FHA loan is a government-backed loan that only requires a down payment of 3.5% for borrowers with a credit score of 580 or higher. Unless you live in a high-cost area or purchase a multi-unit property, the FHA loan limit is capped below $900,000.

The limit for high-cost areas is $1,089,300 for a single-family home. Homebuyers in Alaska, Hawaii, Guam, and the U.S. Virgin Islands could go up to $1,633,950 with a FHA loan.

With a conventional, fixed-rate loan, certain borrowers can put as little as 3% – 5% down on a home purchase.

Is a $900K Mortgage with No Down Payment a Good Idea?

Buyers who lack savings but have steady income and strong credit might consider a mortgage with no down payment. Putting less down means borrowing more, and in turn, paying more interest over the life of the loan. You’ll also be starting out with zero home equity if you don’t put any money down. When you put less than 20% down, you’re typically also on the hook for paying private mortgage insurance.

Keep in mind that if your credit score and financial situation change after you purchase your home, you can always consider a mortgage refinance to land more favorable mortgage loan terms.

Can’t Afford a $900K Mortgage With No Down Payment?

If you can’t afford the higher monthly payments on a $900K mortgage with no down payment, there are steps you can take to improve your qualifications as a borrower.

Pay Off Debt

Tackling debt can improve your DTI ratio, effectively increasing your homebuying budget. Focusing on recurring debt that you can pay off in full in the near-term, such as credit cards or a personal loan, can deliver more immediate results.

Look into First-Time Homebuyer Programs

Are you a first-time homebuyer? If so, you could be eligible for down payment assistance to make homebuying more affordable. FHA loans allow qualified first time buyers to put just 3.5% down on a home. It’s also possible to finance your closing costs with an FHA loan.

Recommended: Finding Down Payment Assistance Programs

Cultivate Your Credit

Keeping your credit utilization — the percentage of credit you’re using on credit cards and other lines of credit — below 30%, if possible, can reflect well on your credit score. Payment history is also a significant component of your credit score. Ensure you’re making minimum monthly payments on any revolving credit every month.

Start Budgeting

After crunching the numbers on homebuying costs, setting up a budget can help you pay off debt or save up for a down payment. Budgeting is also a useful exercise for understanding how much you can reasonably afford in monthly mortgage payments.

Alternatives to Conventional Mortgage Loans

Homebuyers can consult a home loan help center to learn about other financing ideas, and may want to explore other means for buying a home besides conventional mortgages and government-backed loans.

•   Jumbo loans: Many lenders provide these mortgage loans, which exceed the maximum dollar limits set by the Federal Housing Finance Agency (FHFA).

•   Interest-only mortgages: Here, borrowers make smaller, interest-only monthly payments for a set period before having to cover principal and interest.

•   Balloon mortgage: Borrowers make low monthly payments for a short period of time before the entire loan balance comes due at the end of the term.

Mortgage Tips

A $900,000 mortgage is a big responsibility so before you wade into the mortgage market, make sure you understand some tips to qualify for a mortgage, such as understanding the difference between fixed-rate and adjustable-rate mortgages. Shop around and get prequalified with a number of different lenders to begin to understand what rates you might qualify for. These are just two of the many tips for shopping for mortgage rates.

The Takeaway

The income needed for a $900,000 mortgage depends on your personal finances and the type of home loan. Increasing your down payment, reducing recurring debt, and keeping up good credit habits could up your homebuying budget and help you land a lower interest rate.

Looking for an affordable option for a home mortgage loan? SoFi can help: We offer low down payments (as little as 3% - 5%*) with our competitive and flexible home mortgage loans. Plus, applying is extra convenient: It's online, with access to one-on-one help.

FAQ

What income do you need for a $900,000 mortgage?

To afford a $900,000 mortgage, you’ll need to make $260,000 or more a year. Buyers with more money saved for a down payment could still qualify while earning less.

How much do I need to make for a $800K house?

You need to make at least $200,000 a year to comfortably afford a $800K house, assuming you don’t have significant recurring debt.

Can you buy a house with a $40K salary?

You can afford a house priced around $100,000 – $110,000 on a $40K salary. This assumes you have some money for a down payment and are not carrying significant debt, such as a student loan or auto loan.

Photo credit: iStock/fizkes

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Credit card companies typically report to the credit bureaus monthly. This usually happens at the end of your card’s monthly billing cycle, also known as your statement or billing cycle date. Credit card companies typically spread statement dates throughout the month, so your date may not be the same as your significant other’s or your best friend’s.

The credit reporting bureaus then use this data to update your credit score. Here’s a closer look at how payments are reported to the credit reporting bureaus as well as how factors like on-time payments can affect your three-digit score.

How Credit Card Payments Are Reported to Bureaus

Credit card issuers typically report to credit bureaus on your regular billing cycle date. Each credit card may report at different times, and they may report to some of the major credit bureaus and not others. Reporting is up to the lender’s discretion, so it is also entirely possible that they won’t make a report at all.

Credit bureaus, such as Experian^®, Equifax^®, and TransUnion^®, may collect a variety of information, including:

•   Personal information, such as name, address, date of birth, Social Security number, and employer

•   Credit account information, such as balances, payments, credit limits, credit usage, and when accounts are opened or closed

•   Credit inquiries

How Credit Scores and Reports Are Updated

The credit reporting bureaus will generally update your credit score as soon as they receive information from your credit card company. That means that your credit score could change relatively frequently as you make credit card charges, especially if you have multiple credit cards.

Also, because credit card companies only report credit activity periodically, there can be a bit of a lag in how long it takes for a payment to show on your credit card report. When you read your credit report, it may not match your current account balances, instead reflecting the last information reported to the bureaus. This situation may be particularly irksome if you’ve paid off debts in hope of building your credit score. Fortunately, your information should be updated during the next reporting period.

However, if you notice that no changes are made after a number of months, it’s worth contacting your lender to make sure changes are reported correctly. If they can’t resolve it, you can contact the credit bureau.

Recommended: Charge Cards: Advantages and Disadvantages

How Credit Card Balances Affect Credit Score

Credit reporting bureaus may collect information about your credit card balance. There is a popular misconception that carrying a credit card balance from month to month will help you positively impact your credit score. However, this is a myth. In fact, carrying a balance can actually hurt your score.

An unpaid balance is not necessarily seen as a bad thing. However, credit utilization — how much of your available credit you’re using — can have an impact on your score. If your balance exceeds 30% of your borrowing limit, it may have a negative impact on your score. Those who keep their credit utilization below 10% tend to have the highest credit scores.

It’s best to pay off your credit card balance each month to protect your credit score and to avoid racking up costly interest charges, which can cause your credit card debt to balloon.

How Applying to Credit Cards Affects Credit Score

Before you apply for a credit card, it’s important to know the difference between a hard and soft inquiry. When you apply, you will trigger what’s known as a hard inquiry when a lender requests to see your credit report.

In contrast, a soft inquiry occurs when you check your own credit or use a credit monitoring service, for example. Hard inquiries will generally have a negative impact on your credit score (though often only by several points temporarily), while soft inquiries will not.

Hard inquiries suggest that you are in the market for new credit. That may seem like a no-brainer. But in the eyes of other lenders, a hard inquiry suggests that you may be in some sort of financial stress that makes you a bigger risk for borrowing money. This is especially true if you have many hard inquiries in a short period of time.
Luckily, the hard inquiry’s effects fade relatively quickly.

In general, it’s wise to avoid causing many hard inquiries in a short period of time. There are some exceptions to that rule. If you’re shopping for a mortgage, auto loan, or new utility providers, multiple inquiries in a short period — typically 14 to 45 days — are usually counted as just one inquiry.

How On-Time Payments Affect Credit Score

Your payment history is one of the biggest factors that goes into calculating your credit score. As a result, making payments on time is one of the best things you can do to maintain a strong credit score or to positively impact your score.

Even a single late payment can have a negative impact on your score, though the missed payment likely will not show up on your credit report for 30 days. If you can make up the payment within that time period, your lender may not report it, though you may still be subject to late penalties.

It’s also important to understand that if you only make a partial payment, that will still usually be counted as late and reported as such to the credit bureaus.

To make sure that you pay bills on time, consider setting up a budget to help control your spending. You might also automate your payments to ensure you don’t miss any payment due dates. But if you do so, make sure that you have enough money in your account to cover your credit card balance.

Recommended: When Are Credit Card Payments Due?

The Takeaway

The credit reporting bureaus collect all sorts of financial information from your various lenders to create your credit score. Your credit card company likely reports your card activity about once a month, on your statement or billing cycle date. Understanding what information has an impact on your score, as well as the impact of on-time payments and credit inquiries, can help you keep your score as high as possible and help keep credit card costs down.

Whether you're looking to build credit, apply for a new credit card, or save money with the cards you have, it's important to understand the options that are best for you. Learn more about credit cards by exploring this credit card guide.

FAQ

What time of the month do creditors report to credit bureaus?

Creditors may report to the credit bureaus at any time of the month, though credit card companies will usually make their reports at the end of the billing cycle, or on your statement date.

How often do companies report credit?

Credit card companies usually report to the credit bureaus once a month. However, they do so at their own discretion.

How long after paying off debt until you see an impact on your credit score?

Your credit score should see an impact after paying off a debt as soon as that debt payment is reported to the reporting bureaus, usually within 30 days. If your payment doesn’t show up on your report after a few months, contact your lender to make sure it was reported correctly.

Photo credit: iStock/iamnoonmai

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .

SOCC-Q224-1882973-V1

With the rise of online payments, checks aren’t nearly as ubiquitous as they used to be. But this form of payment hasn’t disappeared. You may get a government check with your tax refund, a rebate check from a company, or an expense reimbursement check from your employer. Plus, in order to make an online payment, you‘ll need to look at your own checks to determine what your routing and account numbers are.

The upshot: Even in the digital age, it’s important to know how to read a check. Here’s a simple guide to help you find any info you need on a check.

The Routing Number

Your routing number is the first series of nine digits listed on the lower left corner of a check. This number identifies the bank where your checking account is held and reduces the chances of miscommunication in financial transactions. Even if two banks have similar names, they’re distinct from one another because of their different routing numbers.

You’ll need to know your routing number to set up direct deposit at work, transfer money into your account, and make a bill payment.

The Account Number

Your bank account number can be found on the bottom of your checks and is the second set of numbers, just to the right of your routing number. It’s usually between eight and 12 digits long (though it can be longer).

Bank account numbers are used to identify a bank account. The one listed on your checks is the number assigned to your checking account. If you also have a savings account at the same bank, it will have a different number.

If you don’t have access to a check, you can find your bank account number on your statement or by logging into your account.

Check Number

The check number is typically located on the upper right-hand corner of a check, though it can sometimes be found at the bottom of the check after the symbol at the end of your account number. It’s usually three or four digits long.

Checks are numbered in ascending order, so you can easily keep track of checks that you’ve written. When you write a check, it’s a good idea to note the check number and the amount in your check register. This will help you keep the account balanced and avoid accidental overdrafts.

Pay to the Order Of — Payee Line

This line is located in the middle of the check and where the name of the person or business being paid is written. When endorsing a check you’ve received, it’s important to sign your name as it appears on the payee line.

It is possible to write a check to yourself. In that scenario, you would simply add your name in the payee line. This is one way to move money from one bank account to another. You can also write “cash” in the payee line. In this case, anyone can cash the check.

Date Line

The date line is usually located in the upper right area of a check. It’s where you add the date you wrote the check.

If your cash flow is tight, you might be tempted to write a future date in this line, so the recipient doesn’t cash the check until there are available funds in your account. However, know that as soon as you write and sign a check, the recipient can cash it immediately — even if you post-dated the check.

Payment Amount in Numbers

The payment box appears to the right of the “pay to the order of” line, and where you write the dollar amount the check is written for in numeric form, including both dollars and cents. For instance, if the check is for three hundred dollars, you would write “300.00.”

Payment Amount in Words

Below the payee line is a space for the check issuer to write the payment amount in word form. Cents, however, are written in numbers. For example, a check for “$500.25” it’s written out as “Five hundred dollars and 25/100.” If there are no cents, the issuer might write XX/100.

The payment amount in words needs to match the payment amount written in numerical form in the payment box. If these amounts don’t match up, the check can still be cashed, but the bank will only honor the amount that is written out in word form.

Fractional Bank Number

The fractional bank number often goes unnoticed, as it’s typically printed in a smaller font size and isn’t of much importance today. You can find this number towards the top right of your check and it’s listed in two parts — a numerator, then a slash, and a denominator, thus a “fraction.”

A fractional bank number identifies the bank where your checking account is held, but, since the same information is included in your routing and account numbers, it’s not used much anymore.

Your Information

If you’re writing a check, your personal information is located at the top left of the check. This includes your name on the first line, your address in the next few lines, followed, in some cases, by your phone number.

If your checks have an outdated address printed on them, don’t worry — you can still use them. Financial institutions use routing numbers and account numbers to identify where they should pull the money from, not your personal information written on the top left of your check.

Recommended: A Guide to Ordering Checks for Less

For/Memo

The memo box is housed at the bottom left corner of the check and typically begins with “for”. This space gives you an opportunity to briefly note the purpose of the payment, or maybe add a personalized message to the recipient. For instance, you might write “June rent” or “Happy Birthday Sally.”

Signature

The line on the lower right area of a check is where you sign your name. Your signature needs to match the one the bank has on file. If you accidentally sign with a shortened first name or nickname (such as Jon versus Jonathan) or with your maiden name versus your current last name, the bank might refuse to process the transaction.

Bank Name/Logo

The bank name and logo is usually located above the memo box. This tells where the checking account is held. It also adds an additional layer of security. If you receive a check where the logo looks slightly off, or you’ve never heard of the bank listed here, it’s a tipoff that the check might be counterfeit.

Endorsement Line

The endorsement line is located on the back of the check and is usually on the right side. This is where the check recipient, or payee, provides their signature. Without proper endorsement, the bank won’t process the check.

If you’re endorsing a check for a mobile deposit, you may need to write “For mobile deposit only” (or similar wording) under your signature, or check a box labeled “for mobile deposit.” Rules vary by bank.

The Takeaway

While checks aren’t as common as they used to be, you may still receive and write checks. You’ll also likely need to refer to your checks to find important details about your account, such as your routing and account numbers. You’ll need these numbers to sign up for direct deposit or set up an electronic payment or funds transfer.

Interested in opening an online bank account? When you sign up for a SoFi Checking and Savings account with direct deposit, you’ll get a competitive annual percentage yield (APY), pay zero account fees, and enjoy an array of rewards, such as access to the Allpoint Network of 55,000+ fee-free ATMs globally. Qualifying accounts can even access their paycheck up to two days early.

Photo credit: iStock/AndreyPopov

Annual percentage yield (APY) is variable and subject to change at any time. Rates are current as of 11/12/25. There is no minimum balance requirement. Fees may reduce earnings. Additional rates and information can be found at https://www.sofi.com/legal/banking-rate-sheet

Eligible Direct Deposit means a recurring deposit of regular income to an account holder’s SoFi Checking or Savings account, including payroll, pension, or government benefit payments (e.g., Social Security), made by the account holder’s employer, payroll or benefits provider or government agency (“Eligible Direct Deposit”) via the Automated Clearing House (“ACH”) Network every 31 calendar days.

Although we do our best to recognize all Eligible Direct Deposits, a small number of employers, payroll providers, benefits providers, or government agencies do not designate payments as direct deposit. To ensure you're earning the APY for account holders with Eligible Direct Deposit, we encourage you to check your APY Details page the day after your Eligible Direct Deposit posts to your SoFi account. If your APY is not showing as the APY for account holders with Eligible Direct Deposit, contact us at 855-456-7634 with the details of your Eligible Direct Deposit. As long as SoFi Bank can validate those details, you will start earning the APY for account holders with Eligible Direct Deposit from the date you contact SoFi for the next 31 calendar days. You will also be eligible for the APY for account holders with Eligible Direct Deposit on future Eligible Direct Deposits, as long as SoFi Bank can validate them.

Deposits that are not from an employer, payroll, or benefits provider or government agency, including but not limited to check deposits, peer-to-peer transfers (e.g., transfers from PayPal, Venmo, Wise, etc.), merchant transactions (e.g., transactions from PayPal, Stripe, Square, etc.), and bank ACH funds transfers and wire transfers from external accounts, or are non-recurring in nature (e.g., IRS tax refunds), do not constitute Eligible Direct Deposit activity. There is no minimum Eligible Direct Deposit amount required to qualify for the stated interest rate. SoFi Bank shall, in its sole discretion, assess each account holder's Eligible Direct Deposit activity to determine the applicability of rates and may request additional documentation for verification of eligibility.

See additional details at https://www.sofi.com/legal/banking-rate-sheet.
SoFi Checking and Savings is offered through SoFi Bank, N.A. Member FDIC. The SoFi® Bank Debit Mastercard® is issued by SoFi Bank, N.A., pursuant to license by Mastercard International Incorporated and can be used everywhere Mastercard is accepted. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

SOBK0124063

There are many reasons why you might end up accidentally depositing a fake check into your bank account. Scammers often use fake checks as part of various schemes to steal money from unsuspecting victims. They may send you a fake check and ask you to deposit it, then request that you send them a portion of the funds back, claiming it’s for fees, taxes, or some other reason. By the time the bank realizes the check is fake, you’re left responsible for the full amount.

Why do these scams work? The fake checks generally look just like real checks, even to bank employees, with appropriate watermarks, and they may appear to be issued by legitimate financial institutions.

Here’s a closer look at what happens if you accidentally deposit a fake check, plus ways to spot counterfeit checks.

Consequences of Depositing Fake Checks

If you accidentally deposit a fake check, everything may be fine at first. By federal law, the bank must make the funds available to you within one or two business days. When the funds are made available in your account, the bank may say the check has “cleared,” but that doesn’t mean it’s a good check.

Fake checks can take weeks to be discovered and sorted out. When the bank realizes the check is fake (often after you’ve spent the money or given it to someone else), here is what happens:

•   You have to cover the cost of the check. The bank will typically debit your account for the amount of the fake check, and may also charge you a processing fee.

•   You’ll lose any money you sent to the scammer. While in some rare cases you may be able to request a chargeback on a fraudulent transaction, it’s unlikely that you will be able to get any money back once you’ve given it to a scammer.

•   You may have to pay overdraft fees. If you spent the check amount before the bank realized it was fake and debited your account for the amount, it’s possible your account could get overdrawn. In that case, you could face overdraft fees, which can run $30 to $35 per transaction.

•   You may have to pay late fees. If you aren’t able to pay your bills because of insufficient funds after depositing a bad check, companies may charge you late fees.

•   Your bank could close or freeze your account. Banks will often freeze or close accounts for suspicious activity, including attempts to pass off bad checks. You’ll want to check your bank deposit account agreement to see in what scenarios your bank can close your account.

•   It could hurt your credit score. If you relied on the check to pay upcoming bills, you might miss their due dates. Because payment history is the biggest factor credit bureaus use to determine your credit score, missed payments can do damage to your credit.

•   Your banking history could be tarnished. The bank may report the fake check incident to the banking reporting agency ChexSystems. If so, the agency will then record that information in its files about your checking history. Banks and credit unions may use that information to determine whether to allow you to open a bank account in the future.

Can You Go to Jail for Depositing Fake Checks?

Whether or not you’ll face criminal charges (and potential jail time) for depositing a fake check will depend on whether or not you knowingly deposited a fake check, as well as the laws in your state. If you are simply the victim of a scam, you likely won’t face criminal charges or jail time.

Knowingly committing check fraud, however, is a serious crime that can result in significant fines and even jail time. In Indiana, for example, the lowest level of check fraud is a misdemeanor, which can lead to imprisonment for up to one year and a fine of $5,000. If the amount on the check was between $750 and $50,000, you will instead be charged with a felony. The potential sentence for this is six months to two- and-a-half years in jail, plus up to a $10,000 fine.

If you are convicted of a check fraud felony in New York State, on the other hand, it could mean up to seven years in prison.

Recommended: How Long Is a Check Good For?

6 Tips to Spot Fake Checks

Counterfeit checks can look incredibly real, making them difficult to spot without careful examination. To protect yourself from falling victim to check fraud, it’s important to know how to identify a counterfeit check. Here are six tips to help you spot a fake.

1. Feel the Edges of the Check.

If the check is legit, it should have one perforated edge (where it was ripped from a checkbook). A check that is smooth on all sides is a tipoff that it’s a fake.

2. Examine the Paper

Genuine checks are usually printed on high-quality paper with intricate designs that are hard to replicate. Hold the check up to the light to see if it has watermarks or security threads. Genuine checks often have these features, while counterfeit checks may appear flat and lack these security measures.

3. Check the Bank Information

Verify that the bank’s name and logo on the check match the ones used by the actual bank. You can do this by visiting the bank’s official website or calling their customer service hotline. You can use an online tool like BankFind to check if a bank is backed up by the Federal Deposit Insurance Corporation (FDIC).

4. Scrutinize the Check Amount

Be wary of checks that have unusually high or round amounts. Scammers often use these amounts to make the check look more appealing. If you receive a check for an unexpected amount, it’s a good idea to contact the issuer directly to verify its authenticity.

5. Look for Typos

Counterfeit checks often contain spelling mistakes, grammatical errors, or inconsistent fonts. Carefully review the check for any such errors, as they can indicate that the check is fake.

6. Be Wary of Pressure Tactics

💡 Quick Tip: If your checking account doesn’t offer decent rates, why not apply for an online checking account with SoFi to earn 0.50% APY. That’s 7x the national checking account average.

What if Someone Else Deposits a Fake Check Into Your Account?

If someone else deposits a fake check into your account, the situation can be complex and you’ll want to take prompt action to mitigate any potential negative consequences.

As soon as you become aware of the fraudulent deposit, contact your bank to report the issue and give them all the relevant details, including the date of the deposit, the amount, and any other information you have about the check. It’s also a good idea to ask your bank to place a hold on your account to prevent any further transactions from occurring until the situation is resolved. This can help prevent additional fraudulent activity.

As your bank investigates the fraudulent deposit, they may request documentation to support your claim that the deposit was fraudulent, such as copies of the fake check, any communication you have had with the person who deposited the check, and any other relevant information.

Going forward, you’ll want to take steps to protect your account from further fraudulent activity. This may include changing your online banking passwords, setting up alerts for suspicious activity, and being cautious about sharing your account information.

The Takeaway

Check fraud is just one of the many ways that scammers con people into giving them money. If you unknowingly deposit a fake check into your account, the consequences include fees and, possibly, a negative mark on your banking history and the closing of your account. To avoid being scammed, look for the signs of a fraudulent check, and avoid cashing a check that you weren’t expecting, or for more than the agreed-upon amount.

Interested in opening an online bank account? When you sign up for a SoFi Checking and Savings account with direct deposit, you’ll get a competitive annual percentage yield (APY), pay zero account fees, and enjoy an array of rewards, such as access to the Allpoint Network of 55,000+ fee-free ATMs globally. Qualifying accounts can even access their paycheck up to two days early.

FAQ

Can you get in trouble for accidentally depositing a fake check?

Yes, you can potentially get in trouble for accidentally depositing a fake check. While an accidental deposit may not lead to legal consequences, you may get hit with bank fees, you’ll need to repay any amount of the check you spent, and the bank may put a hold on your account. It’s crucial to cooperate with your bank’s investigation and take steps to rectify the situation promptly.

Is the bank responsible for cashing a fake check?

Generally, banks are not responsible for cashing a fake check if they can demonstrate that they followed proper procedures and exercised reasonable care in processing the check. However, if the bank is found to have been negligent or failed to detect obvious signs of fraud, they may be held liable for cashing a fake check. It’s important to review your bank’s policies and procedures regarding check deposits and fraud prevention.

Photo credit: iStock/AndreyPopov

Annual percentage yield (APY) is variable and subject to change at any time. Rates are current as of 11/12/25. There is no minimum balance requirement. Fees may reduce earnings. Additional rates and information can be found at https://www.sofi.com/legal/banking-rate-sheet

Eligible Direct Deposit means a recurring deposit of regular income to an account holder’s SoFi Checking or Savings account, including payroll, pension, or government benefit payments (e.g., Social Security), made by the account holder’s employer, payroll or benefits provider or government agency (“Eligible Direct Deposit”) via the Automated Clearing House (“ACH”) Network every 31 calendar days.

Although we do our best to recognize all Eligible Direct Deposits, a small number of employers, payroll providers, benefits providers, or government agencies do not designate payments as direct deposit. To ensure you're earning the APY for account holders with Eligible Direct Deposit, we encourage you to check your APY Details page the day after your Eligible Direct Deposit posts to your SoFi account. If your APY is not showing as the APY for account holders with Eligible Direct Deposit, contact us at 855-456-7634 with the details of your Eligible Direct Deposit. As long as SoFi Bank can validate those details, you will start earning the APY for account holders with Eligible Direct Deposit from the date you contact SoFi for the next 31 calendar days. You will also be eligible for the APY for account holders with Eligible Direct Deposit on future Eligible Direct Deposits, as long as SoFi Bank can validate them.

Deposits that are not from an employer, payroll, or benefits provider or government agency, including but not limited to check deposits, peer-to-peer transfers (e.g., transfers from PayPal, Venmo, Wise, etc.), merchant transactions (e.g., transactions from PayPal, Stripe, Square, etc.), and bank ACH funds transfers and wire transfers from external accounts, or are non-recurring in nature (e.g., IRS tax refunds), do not constitute Eligible Direct Deposit activity. There is no minimum Eligible Direct Deposit amount required to qualify for the stated interest rate. SoFi Bank shall, in its sole discretion, assess each account holder's Eligible Direct Deposit activity to determine the applicability of rates and may request additional documentation for verification of eligibility.

See additional details at https://www.sofi.com/legal/banking-rate-sheet.
SoFi Checking and Savings is offered through SoFi Bank, N.A. Member FDIC. The SoFi® Bank Debit Mastercard® is issued by SoFi Bank, N.A., pursuant to license by Mastercard International Incorporated and can be used everywhere Mastercard is accepted. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

Checking Your Rates: To check the rates and terms you may qualify for, SoFi conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may affect your credit.

External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.

This article is not intended to be legal advice. Please consult an attorney for advice.

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Sadly, mobile banking and check fraud are on the rise, as scammers come up with new ways to try to trick people out of their money. One such tactic is mobile deposit scams, which involves your unwittingly depositing a fake check through a mobile deposit. The scammer either convinces you to reveal personal information or to send them money from your account. By the time you realize what is happening, your money is gone or your sensitive information could be used for ill intent.

To protect yourself, read on.

What Happens if You Mobile-Deposit a Fake Check?

Before talking about fake checks, it’s important to first define what a mobile deposit is.

•   It’s a type of deposit can be done through your bank or credit union’s app.

•   You snap a photo of a paper check with your mobile device, upload it plus information about its amount and which deposit you want it submitted to.

•   Once the bank processes and approves it, the check will be deposited in your checking account.

With mobile deposit scams, however, one of two things might happen:

•   The scammer might convince you to deposit a fake check, often for more than the amount you were told would arrive. Then the fraudster might ask you to return the “extra” amount they said they accidentally sent you (which you do, not knowing the check they sent is bogus).

•   The scammer asks for your personal information so they can deposit money into your bank account (which they’ll never do).

If you deposit a fake check, whether through your bank’s mobile app or another means, there are several scenarios that can unfold.

•   The bank may deny the deposit and declare the check is fake.

•   The bank may clear the check, and there is a deposit in your account. However, that doesn’t mean the bank won’t come back around and discover the check is fake. In this case, the check bounces, and you’re responsible for paying the amount back to the bank.

In either case, you could be held liable for the fake check and any extra costs that the bank may have incurred because of this bank fraud. The authorities may even be involved if there is a criminal investigation for the fake check.

💡 Quick Tip: Typically, checking accounts don’t earn interest. However, some accounts do, and online banks are more likely than brick-and-mortar banks to offer you the best rates.

Tips for Spotting a Fake Mobile-Deposit Check

There are several ways you can use to spot a fake check or attempt to verify a check, such as:

•   Considering the sender: If you’re unsure who sent you the check, it’s best to double-check why you received the check. If, say, it’s from your bank or a company you do business with, you can contact their listed business number and find out why it was sent vs. just depositing the check.

•   Looking at the check amount: Fraudulent checks typically are for an amount that’s much larger than the payment you expect to receive. The idea is to get you to return the extra amount. For checks that have seemingly a larger amount than expected, contact the sender to correct it, which they should do if they are legitimate. (You may hear the practice of intentionally writing checks against insufficient funds referred to as check kiting.)

•   Check the financial institution: Fake checks may look legitimate but have a bank or credit union name that doesn’t exist. You can do a simple online search to find the name of the financial institution, or contact the FDIC to determine if the bank is real.

•   Determine the quality of the check: Look at the check to see if there are any watermarks or other indicators of security features typical of a real check. Feel the paper as well, as real checks are typically printed on thicker paper than bogus ones.

4 Mobile-Deposit Scams to Avoid

Unfortunately, there are many tactics that scammers try to use to get you to part with your money. Four common mobile check-deposit scams include fake jobs, bogus contests, fraudulent sales, and dating scams.

Fake Jobs

Here’s how this typically goes:

•   You answer an advertisement for a job, like a mystery shopper, personal shopper, or some other form of employment.

•   You apply, are hired, and are sent a check — an upfront payment for work, for example — for a larger amount than you were promised and are asked to send the excess amount back.

•   You deposit the check, send the excess back, and then find out that the check you were sent has bounced. You are liable for that “excess” you sent back.

•   Or you’re asked to review, say, a company that sells money orders or wire transfer services. You receive a check from the scammer to be used to purchase money orders and/or send a wire transfer.

•   You deposit the check, make the purchase as directed, and send a money order or wire transfer to someone else’s savings account. Then, guess what? The check winds up bouncing, and you’re out of cash.

Fake Contests

This scam usually unfolds as follows:

•   Someone posing as a representative of a company or lottery contacts you to let you know that you’ve won a contest.

•   You may not remember entering the contest (because, as it turns out, you didn’t), but you give the rep some personal details so they can send the check.

•   Once you receive the check, the scammer tells you they sent too much money and asks that you send the excess amount back to them. You deposit the check and return the overage.

•   The check turns out to be fake (how long for mobile deposit or in-person checks to bounce? It can be a couple of days or longer). That means the alleged excess that you returned is your cash that’s now disappeared.

Auction or Online Marketplaces

Selling your stuff on websites or in-person can lead to scams:

•   You’re selling some items on an online marketplace (say, eBay, Craigslist, or Facebook Marketplace), and the scammer purchases it from you.

•   The scammer gives you a check for an amount that’s higher than your item’s listed price and asks you for the overpayment back. You send the money back, and later find out that the check is fake. Meanwhile, the scam has made off with your money.

Dating Scams

These types of scams can take a long time to unfold:

•   The scammer creates a fake profile on a dating app or social media and strikes up a conversation.

•   Over time, this person may win your trust and then face an emergency or some other situation for which they need to borrow money. (Maybe they need funds to buy a plane ticket to eventually visit you.)

•   You agree to lend them some money, which they say they will soon return via check. Yes, you receive the check from them, but it ends up being a fake one, and the money you “loaned” the fraudster is gone.

What to Do if You Receive a Fake Mobile Deposit From a Stranger

If you believe you’ve received a fake check and are unsure whether to deposit it via your mobile app, pause.

•   Double-check with the sender if possible whether the payment is legitimate.

•   If you were expecting a payment and they send more than the anticipated amount, ask the sender to void the check and send you the correct amount. If there’s no response or a refusal, don’t deposit it.

•   Don’t draw against the potentially fake check until you are sure that it’s fully cleared. Don’t assume that just because the amount shows up immediately in your bank account that you can go ahead and spend it.

•   You can also contact the Federal Trade Commission (FTC) if you believe someone is targeting you for a fake mobile deposit scam.

The Takeaway

You can’t control what scammers do, but you can control how you respond to them. By learning how to spot signs of fraud, including mobile deposit fake checks, you can protect yourself from romance, job, and other ploys. By educating yourself and being wary, you may prevent someone from taking advantage of you and your money.

Interested in opening an online bank account? When you sign up for a SoFi Checking and Savings account with direct deposit, you’ll get a competitive annual percentage yield (APY), pay zero account fees, and enjoy an array of rewards, such as access to the Allpoint Network of 55,000+ fee-free ATMs globally. Qualifying accounts can even access their paycheck up to two days early.

FAQ

What happens if you mobile-deposit a fake check?

If you submit a fake check through mobile deposit, the bank may either reject it right away or accept the form of payment. However, even if the bank accepts it and conditionally credits it to your account, when the check is later found to be fraudulent, the amount will be debited from your account.

How do you know if a mobile deposit check is real?

You can inspect a check by seeing if there are certain security features like watermarks and seals. You can also see if it has heavy paper (like most checks you have deposited) or whether it’s on thinner stock. Also double-check online if the bank the check is drawn on is real.

Can you go to jail for mobile-depositing a fake check?

If you knowingly, intentionally mobile-deposit a fake check in an attempt to deceive a bank, you may face criminal consequences.

Photo credit: iStock/RyanJLane

SoFi Checking and Savings is offered through SoFi Bank, N.A. Member FDIC. The SoFi® Bank Debit Mastercard® is issued by SoFi Bank, N.A., pursuant to license by Mastercard International Incorporated and can be used everywhere Mastercard is accepted. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated.

Annual percentage yield (APY) is variable and subject to change at any time. Rates are current as of 11/12/25. There is no minimum balance requirement. Fees may reduce earnings. Additional rates and information can be found at https://www.sofi.com/legal/banking-rate-sheet

Eligible Direct Deposit means a recurring deposit of regular income to an account holder’s SoFi Checking or Savings account, including payroll, pension, or government benefit payments (e.g., Social Security), made by the account holder’s employer, payroll or benefits provider or government agency (“Eligible Direct Deposit”) via the Automated Clearing House (“ACH”) Network every 31 calendar days.

Although we do our best to recognize all Eligible Direct Deposits, a small number of employers, payroll providers, benefits providers, or government agencies do not designate payments as direct deposit. To ensure you're earning the APY for account holders with Eligible Direct Deposit, we encourage you to check your APY Details page the day after your Eligible Direct Deposit posts to your SoFi account. If your APY is not showing as the APY for account holders with Eligible Direct Deposit, contact us at 855-456-7634 with the details of your Eligible Direct Deposit. As long as SoFi Bank can validate those details, you will start earning the APY for account holders with Eligible Direct Deposit from the date you contact SoFi for the next 31 calendar days. You will also be eligible for the APY for account holders with Eligible Direct Deposit on future Eligible Direct Deposits, as long as SoFi Bank can validate them.

Deposits that are not from an employer, payroll, or benefits provider or government agency, including but not limited to check deposits, peer-to-peer transfers (e.g., transfers from PayPal, Venmo, Wise, etc.), merchant transactions (e.g., transactions from PayPal, Stripe, Square, etc.), and bank ACH funds transfers and wire transfers from external accounts, or are non-recurring in nature (e.g., IRS tax refunds), do not constitute Eligible Direct Deposit activity. There is no minimum Eligible Direct Deposit amount required to qualify for the stated interest rate. SoFi Bank shall, in its sole discretion, assess each account holder's Eligible Direct Deposit activity to determine the applicability of rates and may request additional documentation for verification of eligibility.

See additional details at https://www.sofi.com/legal/banking-rate-sheet.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

This article is not intended to be legal advice. Please consult an attorney for advice.

External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.

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