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375 (07/2026) Chapter 2:Eligibility • Section 5: Financial eligibility
The principal portion of proceeds received on a lump-sum basis is treated as follows: » If the proceeds are from the sale of an excluded resource, the amount reinvested in another excluded resource is excluded, and the remainder is counted as a resource. » Proceeds from all other sales are counted as a resource.
Count the interest portion of proceeds as unearned income. • For SNAP:
Count the principal portion of proceeds received on a monthly or other periodic basis as unearned income.
Treat proceeds received on a lump-sum basis as follows: » If the proceeds are from the sale of an excluded resource, exclude the amount reinvested in another excluded resource. Count the remainder as a resource. » Count the proceeds from all other sales as a resource. If the proceeds put the benefit group over the resource limit, treat the proceeds as periodic or lump-sum income.
If a self-employed participant sells a work-related asset, including equipment and inventory, the proceeds of the sale are treated as self-employment income. Treat proceeds from the sale of the home of the financial group as follows: • For OSIPM and individuals with blindness or disability eligible for SSI in December 1973 OSIPM recipients:
Exclude principal payments, including lump-sum payments, for three full calendar months (for OSIPM individuals with blindness or disability eligible for SSI in December 1973, its 12 full calendar months) from the date of receipt if the financial group intends to use the proceeds to buy another home or for associated costs including: » Down payments » Settlement costs » Loan processing fees and points » Moving expenses » Necessary repairs to or replacement of the new home’s structure or fixtures (including roof, furnace, plumbing, built-in appliances) that are identified and documented prior to occupancy » Mortgage payments » Funds for the above costs obligated by contract within the applicable months are also excluded
Count the principal portion of proceeds not reinvested in another home is as a resource.
Count the interest portion of proceeds as unearned income. • For SNAP:
If the financial group intends to use the proceeds to buy another home, they are excluded for three months and counted as a resource thereafter.
If not reinvested in another home, they are treated as a resource.