The lethal haul including a Glock 9mm pistol and 338 rounds of ammunition were discovered in Sergeant Danny Nightingale's bedroom.
A former special forces sniper has been found guilty of illegally possessing a Glock 9mm pistol and 338 rounds of ammunition.
He had pleaded not guilty to possession of a prohibited firearm between November 26, 2007 and September 16, 2011, and had also denied possession of the ammunition on or about September 16, 2011.
The 38-year-old of Crewe, Cheshire, said afterwards he thought his case was strong enough to clear his name and that the verdict "came as a great shock".
"If I didn't have such a strong family we'd be broken," he said, adding that they were "close to financial ruin".
His wife Sally, who has attended the proceedings throughout, added: "He isn't guilty and he is not a criminal."
The items, said to be brought back from Iraq, were recovered by civilian police in September 2011 in the rented house the father-of-two shared with another SAS soldier, known only as Soldier N.
The pistol was found in Sgt Nightingale's wardrobe and the ammunition was under his bed in a plastic box.
Sgt Nightingale, who was serving in Afghanistan at the time, said he had no knowledge of them being in his bedroom and said someone else had put them there.
"I have physical or tangible memory. I have no recollection of receiving the gun," he told the court martial.
He said he was a "diligent" soldier who would not have "randomly" stored ammunition at home.
The Crown said Sgt Nightingale had put the public at risk by having the lethal arsenal stored in an insecure house.
Prosecutor Timothy Cray told the trial: "No soldier, no matter what his experience is or what unit he is attached to, is above the law.
"On the specific facts alleged - that is, the defendant's attitude to the retention of arms and ammunition - is that he made a series of mistakes that put the public at risk and that is why he now comes before this court martial.
Mr Cray accused the soldier of changing his story after originally telling police the pistol was a "trophy" brought back from Iraq in 2007 and that he had accumulated the ammunition from training sessions in the UK.
But Sgt Nightingale insisted his confusion followed a serious brain injury he suffered while taking part in an endurance event in Brazil in 2009, which had significantly affected his memory.
William Clegg QC, defending, suggested Soldier N had brought the Glock pistol to the UK from Iraq.
Soldier N was sentenced to two years' military detention last year after admitting possessing a Glock 9mm pistol, which he brought back from Iraq in 2003.
He also pleaded guilty to possessing ammunition that was recovered by police at the house he shared with Sgt Nightingale.
Mr Clegg said Soldier N had good reason to disassociate himself from the second pistol as having two would have looked like he was collecting them.
"One can be a souvenir; two begins to suggest a collection," he suggested.
During the trial, which began last week, several members of the SAS gave evidence anonymously.
One serviceman said the storing of weapons in accommodation was a "gross breach" of Army regulations, while Soldier N said bringing back trophies from overseas operations was "part of the course".
Sgt Nightingale had originally pleaded guilty to the two charges in November last year and was sentenced to 18 months' military detention.
He appealed against that sentence and it was reduced to 12 months' imprisonment, suspended for a year.
The Court of Appeal later quashed Sgt Nightingale's original convictions and a fresh trial was ordered.
The ex-SAS sniper was released on bail after Wednesday's verdict.
Sentencing was adjourned to a later date pending a Court of Appeal judgement on the sentencing powers of the court.
Colonel Charles Barnett, from the Services Prosecuting Authority, said Sgt Nightingale's "fine record as a soldier is a matter that will no doubt be considered carefully when the board considers his sentence".
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