PwrTPO Immediately Adopting Freddie Mac Asset-Based Qualifying Rules

Freddie Mac Eases Asset-Based Qualifying Rules

Freddie Mac released Bulletin 2026-10, loosening several rules around using a borrower's savings and investments to qualify. The changes take effect for settlement dates on or after February 3, 2027, but PwrTPO is adopting them immediately, ahead of that mandatory date.

What's changing

• The requirement that borrowers be at least 62 to use depository accounts and securities as qualifying assets has been removed. Asset-heavy borrowers of any age can now qualify this way.

• Investment properties are now eligible for this option, in addition to primary residences and second homes.

• The formula for turning assets into qualifying income changed from dividing assets by 240 to dividing by 180, which works out to roughly 33% more monthly qualifying income from the same account balance.

• The prior 80% LTV/TLTV/HTLTV cap on these loans has been removed. They now follow Freddie Mac's standard loan-to-value limits.

• Third-party verification reports are now an accepted way to document these accounts, which can mean less manual statement collection.

• Proceeds from the sale of a home now count as an eligible source of funds for a qualifying account, joining business-sale proceeds, which already qualified.

What to know before you use it

• Net eligible assets must total at least $30,000.

• The loan must be an AUS Accept and either a purchase or a “no cash-out” refinance. Cash-out refinances are not eligible.

• Depository and securities accounts generally need 12 months of seasoning unless the funds came from a documented eligible source.

• Freddie Mac also compares a depository account’s current balance to its balance 12 months earlier. If it grew more than 20%, the amount that counts is capped at 120% of the prior balance, unless the growth traces back to an eligible source such as a retirement transfer, another eligible account, a lump-sum distribution, or the sale of a business or property. If it dropped more than 20%, the account is not eligible unless the decrease was a documented transfer into securities or retirement accounts.

Why it matters

This opens the door for more borrowers to qualify, across more property types, using less of their total assets than before, and it applies to existing applications too. If you have a borrower who did not qualify previously because of asset-based income rules, this may be worth a second look.

Read More on Freddie Mac Bulletin: Guide Bulletin 2026-10

Questions about a specific scenario? Your Account Executive can help you work through it.

‍

Equal Housing Lender | NMLS ID #1124061

‍