For a Fannie Mae purchase, the borrower needs a $14,300 recent car-sale deposit for the down payment. Monthly qualifying income is $5,800, and the statement does not identify the deposit source. Which response best supports counting these funds?
Correct Answer
C) Verify the car sale, eligible purchaser, ownership, independent value and receipt of proceeds; determine the eligible amount
C. Verify the sale and determine how much of its proceeds is eligible. $5,800 × 50% = $2,900; the $14,300 deposit exceeds that threshold and is needed for the purchase. For this titled asset, establish ownership and transfer, receipt, and independent reputable valuation. Use the lower of that valuation and the actual sale price. Scope and exceptions: The purchaser cannot be a party to the property sale or mortgage financing. A documented deposit does not guarantee the full $14,300 is usable; valuation can limit it. Unverified necessary funds require reassessment of available assets. Source: Evaluating Large Deposits — https://guide-selling.fanniemae.com/sel/b3-4.2-02/depository-accounts Sale of Personal Assets; Documentation Requirements — https://guide-selling.fanniemae.com/sel/b3-4.3-18/sale-personal-assets
Why This Is the Correct Answer
C. Verify the sale and determine how much of its proceeds is eligible. $5,800 × 50% = $2,900; the $14,300 deposit exceeds that threshold and is needed for the purchase. For this titled asset, establish ownership and transfer, receipt, and independent reputable valuation. Use the lower of that valuation and the actual sale price. Scope and exceptions: The purchaser cannot be a party to the property sale or mortgage financing. A documented deposit does not guarantee the full $14,300 is usable; valuation can limit it. Unverified necessary funds require reassessment of available assets.
Why the Other Options Are Wrong
Option A: Treat the deposit as recurring employment income
Selling a car does not establish recurring employment income.
Option B: Exclude the deposit solely because it is less than 30 days old
Deposit age alone is not the stated exclusion rule.
Option D: Count the balance without sourcing because it was deposited before application
Depositing before application does not replace required verification.
Exam Tip
Sourcing proves where money came from; eligibility also depends on the source-specific rules.
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