Are Fnma Bonds Taxable?

Farmer Mac, Freddie Mac, and Fannie Mae agency bonds are fully taxable. Agency bonds, when bought at a discount, may subject investors to capital gains taxes when they are sold or redeemed. Capital gains or losses when selling agency bonds are taxed at the same rates as stocks.

What is a FNMA Bond?

Federal National Mortgage Association (FNMA)

Fannie Mae purchases mortgages from lenders, then packages them into bonds and resells them to investors. These bonds are guaranteed solely by Fannie Mae, are not direct obligations of the U.S. government, and do carry credit risk.

Are FNMA bonds backed by the US government?

Bonds issued by GSEs such as the Federal National Mortgage Association (Fannie Mae, the Federal Home Loan Mortgage (Freddie Mac) and The Federal Agricultural Mortgage Corporation (Farmer Mac) are not backed by the same guarantee as federal government agencies.