The Selling Guide is organized into parts that reflect how lenders generally categorize various
aspects of their business relationship with Fannie Mae. To begin browsing, select from any of the
sections below. You may also download the entire Selling Guide in PDF format.
Vested assets in the form of stocks, government bonds, and
mutual funds are acceptable sources of funds for the down payment,
closing costs, and reserves provided their value can be verified.
The lender must verify the borrower’s ownership of the
account or asset. The value of the asset and any related documentation
must meet the requirements outlined in the table below.
Determining the Value of the
Stocks and mutual funds
The lender must determine the value of
the asset (net of any margin accounts) by obtaining either
the most recent monthly or quarterly statement from
the depository or investment firm; or
a copy of the stock certificate, accompanied by
a newspaper stock list that is dated as of or near the date of the
The value of vested stock options can
be documented by
that lists the number of options and the option price, and
using the current stock price to determine the gain
that would be realized from exercise of an option and the sale of
the optioned stock.
Note: Non-vested stock options are
not an acceptable source of funds for the down payment, closing
costs, or reserves.
The value of government bonds must be
based on their purchase price unless the redemption value can be
When used for the down payment or closing costs, if the value
of the asset (as determined above) is at least 20% more
than the amount of funds needed for the down payment and closing
costs, no documentation of the borrower’s actual receipt
of funds realized from the sale or liquidation is required. Otherwise,
evidence of the borrower’s actual receipt of funds realized from
the sale or liquidation must be documented.
When used for reserves, 100% of the value of the
assets (as determined above) may be considered, and liquidation
is not required.
B3-4.3-03, Retirement Accounts,
for the requirements pertaining to the use of retirement accounts
for the down payment, closing costs, or reserves.
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