Fannie Mae Selling Guide B3-4.3-10 — Anticipated Sales Proceeds
Fannie Mae Selling Guide B3-4.3-10 — Anticipated Sales Proceeds.
Verbatim regulatory text
Verbatim provisions from Fannie Mae Selling Guide B3-4.3-10 — Anticipated Sales Proceeds — 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 B3-4.3-10 — Anticipated Sales Proceeds
B3-4.3-10, Anticipated Sales Proceeds (02/23/2016) Introduction This topic contains information on anticipated sales proceeds, including: Anticipated Sales Proceeds Determining the Amount of Net Proceeds Sales Proceeds Needed for Down Payment and Closing Costs Like-Kind Exchanges Employee Relocation 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. Published May 6, 2026 436 Sales Price Established? Net Proceeds Calculation Yes Sales Price – (Sales Costs + All Liens) = Estimated Proceeds No 90% of Listing Price – All Liens = Estimated Proceeds Note: The 10% adjustment factor that is applied to the listing price must be changed depending on market conditions. Sales Proceeds Needed for Down Payment and Closing Costs If the proceeds from the sale of a currently owned home are needed for the down payment and closing costs on the new house, the lender must verify the source of funds by obtaining a copy of the settlement statement on the existing home before, or simultaneously with, the settlement on the new home, showing sufficient net cash proceeds to consummate the purchase of the new home. Like-Kind Exchanges Assets for the down payment from a “like-kind exchange,” also known as a 1031 exchange, are eligible if properly documented and in compliance with Internal Revenue Code Section 1031. Employee Relocation When the borrower’s employer assumes responsibility for paying off the existing mortgage in connection with a relocation plan, the lender must obtain a copy of the executed buy-out agreement to document the source of funds. A photocopy of a sales contract or a listing agreement is not considered an acceptable source of verification of proceeds from the sale. Recent Related Announcements There are no recently issued Announcements related to this topic.