Anticipated Sales Proceeds
If the borrower’s currently owned home is listed for sale but has not been sold, the lender may qualify the borrower on the basis of anticipated sales proceeds. The lender must document the actual proceeds received by the borrower.
Determining the Amount of Net Proceeds
The following table describes how to determine the amount of net proceeds based on a borrower’s anticipated equity.
|Sales Price Established?||Net Proceeds Calculation|
|Yes||Sales Price – (Sales Costs + All Liens) = Estimated Proceeds|
|No||90% of Listing Price – All Liens = Estimated Proceeds
For additional information, see B3-4.3-10, Anticipated Sales Proceeds.