Fannie Mae Selling Guide B3-4.3-18 — Sale of Personal Assets

Fannie Mae Selling Guide B3-4.3-18 — Sale of Personal Assets

B3-4.3-18, Sale of Personal Assets (12/16/2020) Introduction This topic contains information on the sale of personal assets, including: Sale of Personal Assets Documentation Requirements Sale of Personal Assets Proceeds from the sale of personal assets are an acceptable source of funds for the down payment, closing Published May 6, 2026 444 costs, and reserves provided the individual purchasing the asset is not a party to the property sale transaction or the mortgage financing transaction. Documentation Requirements The lender must document the following: The borrower’s ownership of the asset for all asset types that are titled assets, for example automobile title. The value of the asset, as determined by an independent and reputable source, if the proceeds represent more than 50% of the total monthly income used in qualifying. The lender must use the lesser of the estimated value (as determined by the independent source) or actual sales price when determining the amount of funds for the transaction. For example, a borrower plans to sell their vehicle. The value as determined by an independent source is $10,000; the sales price of the vehicle is $12,000. $10,000 can be added to the borrower’s available funds even if the sale has already occured. The transfer of ownership of the asset, as documented by either a bill of sale or a statement from the purchaser. The borrower’s receipt of the sale proceeds from documents such as deposit slips, bank statements, copies of the purchaser’s canceled check or an equivalent payment source. Recent Related Announcements The table below provides references to recently issued Announcements that are related to this topic. Announcements Issue Date Announcement SEL-2020-07 December 16, 2020

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