Fannie Mae Selling Guide B3-3.4-05 — Capital Gains Income
Fannie Mae Selling Guide B3-3.4-05 — Capital Gains Income.
Verbatim regulatory text
Verbatim provisions from Fannie Mae Selling Guide B3-3.4-05 — Capital Gains Income — each quote is a verified substring of the regulator-published source snapshot, not retyped. Quoted for reference; this is not legal advice. The operational layer (P&P updates, prompts) lives in the regulation update kits.
Fannie Mae Selling Guide B3-3.4-05 — Capital Gains Income
B3-3.4-05, Capital Gains Income (03/04/2026) Income received from capital gains is generally a one-time transaction; therefore, it should not be considered as part of the borrower’s stable monthly income. However, if the borrower is using income from capital gains to qualify, the income must be verified in accordance with the following requirements. The following table provides requirements for capital gains income. Criteria Requirements Documentation The lender must obtain: • copies of the borrower’s signed personal federal income tax returns for the most recent two years, including IRS Form 1040, Schedule D, and • evidence that the borrower owns a portfolio of assets that can be sold if additional income is needed to make future mortgage loan payments Note: Due to the nature of this income, the current receipt of the income is not required to comply with the Allowable Age of Credit Documents policy. However, documentation of the asset ownership must be in compliance with the Allowable Age of Credit Documents policy (see B1-1-03, Allowable Age of Credit Documents and Federal Income Tax Returns, for additional information). Income History A minimum two-year history is required. Income Continuance The lender is not required to verify continuance unless they have reason to believe the income may not continue. Published May 6, 2026 340 Criteria Requirements Determination of Qualifying Income Average Income: Depending on the historical trend of the income, the lender must calculate qualifying income as follows: • Stable or Increasing: Calculate an average income amount using the most recent two years personal federal income tax returns. • Decreasing: Calculate an average income amount using the most recent year personal federal income tax returns. Note: Capital losses identified on IRS Form 1040, Schedule D, do not have to be considered when calculating income or liabilities, even if the losses are recurring. Recent Related Announcements The table below provides references to recently issued Announcements related to this topic. Announcement Issue Date Announcement SEL-2026-02 March 04, 2026