source:
  type: guide
  id: fnma-sel-b3-3.4-06
  authority: Fannie Mae Selling Guide B3-3.4-06 — Employment Related Assets as Qualifying
    Income
  description: Fannie Mae Selling Guide B3-3.4-06 — Employment Related Assets as Qualifying
    Income.
  coverage_tier: operative
obligations:
- id: fnma-sel-b3-3.4-06-full
  canonical_id: fnma-sel-b3-3.4-06-full
  section: Fannie Mae Selling Guide B3-3.4-06 — Employment Related Assets as Qualifying
    Income
  type: do
  tags:
  - regulator-direct
  - fnma
  - selling-guide
  - corpus-expansion
  - tier-operative
  primary_source:
    tier: 1
    authority: Fannie Mae Selling Guide B3-3.4-06 — Employment Related Assets as Qualifying
      Income
    source_class: fnma-guide
    source_url: https://singlefamily.fanniemae.com/media/document/pdf/selling-guide
    snapshot_id: 5f7b8b79da595d76
    fetched_at: '2026-05-25T14:09:57Z'
    content_hash: sha256:98cf85a02861bbe84914a0e339b327c8fc131869a8a573882007bbeea60c5701
    paragraph_quote: 'B3-3.4-06, Employment Related Assets as Qualifying Income (03/04/2026)
      The following table provides requirements for employment-related assets that
      may be used as qualifying income. Published May 6, 2026 341 Criteria Requirements
      Eligibility If the loan does not meet the below parameters, employment-related
      assets may still be eligible under other standard income guidelines, such as
      B3-3.4-08, Interest and Dividend Income or B3-3.4-03, Annuity, Pension, or Retirement
      Income. Loan Parameter Requirement Max LTV, CLTV, and HCLTV Ratio • 70%, or
      • 80% if the owner of the asset(s) being used to qualify is at least 62 years
      old at the time of closing. If the asset is jointly owned, all owners must be
      a borrower on the loan and the borrower using the income to qualify must be
      at least 62 years old at the time of closing. Loan Purpose Purchase and limited
      cash-out reﬁnance only Occupancy Principal residence and second home only Number
      of Units As permitted by occupancy type Published May 6, 2026 342 Criteria Requirements
      Asset Requirements • Assets used for the calculation of the monthly income stream
      must be owned individually by the borrower, or the co-owner of the assets must
      be a co-borrower on the loan. • The documentation must be in compliance with
      B1-1-03, Allowable Age of Credit Documents and Federal Income Tax Returns. •
      If a penalty would apply to a distribution of funds from the account made at
      the time of calculation, then the amount of such penalty applicable to a complete
      distribution from the account (after costs for the transaction) must be subtracted
      to determine the income stream from these assets. • The borrower must only be
      considered to have unrestricted access to a 401(k) or IRA, SEP, Keogh retirement
      account if the borrower has, as of the time of calculation, the unqualiﬁed and
      unlimited right to request a distribution of all funds in the account (regardless
      of any possible tax withholding or applicable penalty applied to such distribution).
      • If eligible employment-related assets have been liquidated and placed into
      a trust within 12 months of the loan''s application date, income must be calculated
      in accordance with the requirements in this table. Ineligible assets are non-employment-related
      assets (for example, stock options, non-vested restricted stock, lawsuits, lottery
      winnings, sale of real estate, inheritance, and divorce proceeds). Checking
      and savings accounts are generally not eligible as employment-related assets,
      unless the source of the balance in a checking or savings account was from an
      eligible employment-related asset (for example, a severance package or lump
      sum retirement distribution). Virtual currency is not an eligible asset. Documentation
      The lender must obtain evidence the assets are liquid and available to the borrower
      and must be sourced using one of the following: • A non-self-employed severance
      package or non-self-employed lump sum retirement package (a lump sum distribution)
      - these funds must be documented with a distribution letter from the employer
      (Form 1099-R) and deposited to a veriﬁed asset account. • For 401(k) or IRA,
      SEP, Keogh retirement accounts - the borrower must have unrestricted access
      to the funds in the accounts and can only use the accounts if distribution is
      not already set up or the distribution amount is not enough to qualify. The
      account and its asset composition must be documented with the most recent monthly,
      quarterly, or annual statement. Income History No minimum history is required.
      Published May 6, 2026 343 Criteria Requirements Income Continuance Income continuance
      does not need to be documented since income is calculated based on loan terms
      as described below. Determination of Qualifying Income The lender must divide
      "Net Documented Assets" by the amortization term of the loan (in months). "Net
      Documented Assets" are equal to the sum of eligible assets minus • the amount
      of the penalty that would apply if the account was completely distributed at
      the time of calculation; and • the amount of funds used for down payment, closing
      costs, and required reserves. Example: Calculation of Net Documented Assets
      IRA (made up of stocks and mutual funds) $500,000 Minus 10% of $500,000 ($500,000
      x .10) (Assumes a 10% penalty applies for early distribution, which must be
      levied against any cash being withdrawn for closing the transaction as well
      as the remaining funds used to calculate the income stream.) (-) $50,000 Total
      eligible documented assets $450,000 Minus funds required for closing (down payment
      closing costs, reserves) (-) $100,000 Net Documented Assets (=) $350,000 Monthly
      income calculation ($350,000/360 (or applicable term of loan in months)) $972.22/month
      Recent Related Announcements The table below provides references to recently
      issued Announcements related to this topic. Announcements Issue Date Announcement
      SEL-2026-02 March 04, 2026 Published May 6, 2026 344'
  judgment: false
