source:
  type: guide
  id: fnma-sel-b3-3.4-05
  authority: Fannie Mae Selling Guide B3-3.4-05 — Capital Gains Income
  description: Fannie Mae Selling Guide B3-3.4-05 — Capital Gains Income.
  coverage_tier: operative
obligations:
- id: fnma-sel-b3-3.4-05-full
  canonical_id: fnma-sel-b3-3.4-05-full
  section: Fannie Mae Selling Guide B3-3.4-05 — Capital Gains Income
  type: do
  tags:
  - regulator-direct
  - fnma
  - selling-guide
  - corpus-expansion
  - tier-operative
  primary_source:
    tier: 1
    authority: Fannie Mae Selling Guide B3-3.4-05 — Capital Gains 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: 'B3-3.4-05, 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'
  judgment: false
