source:
  type: guide
  id: fnma-sel-b3-4.3-15
  authority: Fannie Mae Selling Guide B3-4.3-15 — Borrowed Funds Secured by an Asset
  description: Fannie Mae Selling Guide B3-4.3-15 — Borrowed Funds Secured by an Asset.
  coverage_tier: operative
obligations:
- id: fnma-sel-b3-4.3-15-full
  canonical_id: fnma-sel-b3-4.3-15-full
  section: Fannie Mae Selling Guide B3-4.3-15 — Borrowed Funds Secured by an Asset
  type: do
  tags:
  - regulator-direct
  - fnma
  - selling-guide
  - corpus-expansion
  - tier-operative
  primary_source:
    tier: 1
    authority: Fannie Mae Selling Guide B3-4.3-15 — Borrowed Funds Secured by an Asset
    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: 'B3-4.3-15, Borrowed Funds Secured by an Asset (10/30/2009) Introduction
      This topic contains information on borrowed funds secured by an asset, including:
      Borrowed Funds Secured by an Asset Secured Loans as Debt Reducing the Asset
      by the Amount Borrowed Documentation Requirements Borrowed Funds Secured by
      an Asset Borrowed funds secured by an asset are an acceptable source of funds
      for the down payment, closing costs, and reserves, since borrowed funds secured
      by an asset represent a return of equity. Assets that may be used to secure
      funds include automobiles, artwork, collectibles, real estate, or ﬁnancial assets,
      such as savings accounts, certiﬁcates of deposit, stocks, bonds, and 401(k)
      accounts. Published May 6, 2026 441 Secured Loans as Debt When qualifying the
      borrower, the lender must consider monthly payments for secured loans as a debt.
      If a secured loan does not require monthly payments, the lender must calculate
      an equivalent amount and consider that amount as a recurring debt. When loans
      are secured by the borrower’s ﬁnancial assets, monthly payments for the loan
      do not have to be considered as long-term debt. Reducing the Asset by the Amount
      Borrowed If the borrower uses the same ﬁnancial asset as part of their ﬁnancial
      reserves, the lender must reduce the value of the asset by the amount of proceeds
      and related fees for the secured loan. Documentation Requirements The lender
      must document the following: the terms of the secured loan, evidence that the
      party providing the secured loan is not a party to the sale, and evidence that
      the funds have been transferred to the borrower. Recent Related Announcements
      There are no recently issued Announcements related to this topic.'
  judgment: false
