Have Money but Not Enough Mortgage Qualifying Income? Freddie Mac Just Changed How Your Assets May Help You Buy a Home

First, What Does It Mean to Use Assets as Qualifying Income?

Most people think mortgage qualification begins and ends with monthly income.

Salary.

Hourly wages.

Commission.

Social Security.

Pension.

Self employed income.

Rental income.

Those can certainly matter.

But Freddie Mac also has guidelines that can allow certain eligible accumulated assets to be used as a basis for repayment of the borrower’s obligations.

In simple language:

Instead of looking only at how much money you receive every month, the lender may potentially be able to convert certain eligible assets you already own into a monthly qualifying amount.

Freddie Mac calls this assets as a basis for repayment of obligations.

The borrower still has to satisfy the applicable mortgage requirements, but the concept can create an entirely different qualification conversation for someone whose financial strength is concentrated in assets rather than traditional monthly income. 

The Big 2026 Change: Freddie Mac Is Moving From 240 Months to 180 Months

This is the part that immediately caught my attention.

Freddie Mac previously calculated the qualifying monthly amount by dividing applicable net eligible assets by 240 months.

The new calculation uses:

Net Eligible Assets ÷ 180 Months

That may sound like a small underwriting adjustment.

Mathematically, it can be significant.

Using the same amount of net eligible assets, dividing by 180 instead of 240 produces approximately 33.3 percent more monthly qualifying income.

Nothing had to be added to the account.

The borrower did not have to receive a raise.

The investments did not have to increase.

The mortgage guideline changed.

Here Is What That Can Look Like With $540,000

Suppose a borrower has $540,000 of net eligible assets after the applicable deductions have already been made.

Under the previous calculation:

$540,000 ÷ 240 months

equals

$2,250 per month

Under the new calculation:

$540,000 ÷ 180 months

equals

$3,000 per month

That is:

$750 more monthly qualifying income

from exactly the same $540,000 of net eligible assets.

Now Look at $900,000

Suppose the borrower has $900,000 of net eligible assets.

Previous calculation:

$900,000 ÷ 240

equals

$3,750 per month

New calculation:

$900,000 ÷ 180

equals

$5,000 per month

The difference is:

$1,250 more qualifying monthly income.

Again:

The borrower did not get a raise.

Nothing was added to the account.

The borrower did not suddenly become wealthier.

The guideline changed how the eligible assets can potentially be translated into monthly qualifying income.

This is why understanding mortgage guidelines can matter so much.

But You Cannot Simply Divide Everything in Your Bank Account by 180

This is where the details become extremely important.

If someone tells me:

“Edgar, I have $600,000.”

I cannot automatically take:

$600,000 ÷ 180

and call the result qualifying income.

We first need to determine which assets are eligible and then calculate the net eligible assets.

Money required for the transaction and other applicable amounts may have to be removed from the calculation.

That is why the word net matters.

A More Realistic $600,000 Example

Suppose a borrower has:

$600,000 in eligible documented assets.

Now suppose $80,000 will be needed for the applicable down payment and closing costs.

And suppose another $20,000 is required for reserves.

For purposes of this simplified example:

$600,000

minus $80,000

minus $20,000

equals

$500,000 in net eligible assets

Now we perform the new calculation:

$500,000 ÷ 180

equals approximately

$2,777.78 per month

That is very different from simply taking the original $600,000 and dividing it by 180.

The lesson is important:

How much you have is not necessarily the same as how much can be used in the qualifying calculation.

The mortgage professional has to evaluate the actual assets, ownership, documentation, required transaction funds and applicable Freddie Mac requirements.

Freddie Mac Also Added a $30,000 Minimum

Under the updated requirements, after the applicable deductions and calculation of net eligible assets, there must generally be at least:

$30,000 of net eligible assets.

That is another reason we cannot simply look at someone’s account balance and assume the program works.

We need to calculate what remains eligible after applying the actual requirements.

Another Major Change: The Previous Special 80 Percent LTV Limitation Is Being Removed

This is a significant part of the update.

Under the previous requirements, mortgages using assets as a basis for repayment generally carried a maximum 80 percent loan to value limitation under this provision. The current Guide page still displays that older requirement while specifically alerting lenders that Bulletin 2026 10 introduced the new requirements and permits early implementation before February 3, 2027. 

The updated requirements remove that special 80 percent limitation and instead allow the transaction to follow the applicable Freddie Mac loan to value requirements for the particular mortgage.

That does not mean every borrower can make any down payment they want.

The underlying loan program, occupancy, property and transaction still have their own requirements.

But we should no longer automatically tell a borrower:

“You must put 20 percent down simply because you are using accumulated assets as qualifying income.”

Under the new requirements, the analysis is broader.

This Is Not Just About Primary Residences Anymore

Another meaningful change is the expansion of eligible occupancy types under the updated requirements.

The revised Freddie Mac requirements expand the provision beyond its previous occupancy limitations.

That creates potential conversations involving:

Primary residences

Second homes

and

Investment properties

subject, of course, to all applicable Freddie Mac requirements.

This is important because accumulated wealth is not limited to retirees purchasing primary homes.

An investor may have substantial securities.

A business owner may have accumulated significant assets.

A second home buyer may have substantial liquidity but a traditional income picture that does not fully represent their financial resources.

The correct transaction and occupancy requirements still have to be satisfied.

But the potential use of accumulated assets is becoming broader.

The Age Requirement Changed Too

This is another reason I would not describe this simply as a retirement mortgage strategy.

Under the previous Freddie Mac treatment for certain depository accounts and securities, borrower age restrictions could limit eligibility.

The updated requirements remove the borrower age restriction for eligible depository accounts and securities.

That matters.

A borrower does not necessarily have to be 62 years old simply to have eligible depository accounts or securities considered under the updated accumulated assets provisions.

That opens the conversation to a broader group of financially established borrowers.

But Retirement Accounts Are Different

This distinction is extremely important.

Removing an age restriction from eligible depository accounts and securities does not mean every younger borrower can automatically take an inaccessible retirement account and turn the entire balance into qualifying income.

Retirement assets have specific Freddie Mac requirements.

Among other requirements, applicable retirement assets must be in a recognized retirement account, the borrower must meet ownership and vesting requirements, and the borrower must have the required access to the funds without an applicable penalty or additional early distribution tax as of the Note Date.

Freddie Mac also specifically states that cryptocurrency may not be considered in the applicable calculation of net eligible assets. 

That distinction matters.

Cash is not automatically treated the same as securities.

Securities are not automatically treated the same as retirement assets.

And crypto is not treated as an eligible asset for this particular calculation.

The 12 Month History Can Matter

Here is another area where good mortgage planning becomes important.

Under the updated requirements, Freddie Mac includes ownership and documentation requirements for applicable depository accounts and securities.

For certain eligible accounts, the borrower generally needs the required 12 month history, subject to Freddie Mac’s permitted exceptions and sourcing provisions.

Why would that matter?

Because Freddie Mac wants more information than:

“How much money is in the account today?”

The history and source of the assets can matter too.

What If the Bank Account Suddenly Increased?

Imagine someone had $200,000 in an account and then shortly before applying for a mortgage the balance became $500,000.

That does not automatically mean something is wrong.

Maybe the borrower:

Sold another property.

Sold a business.

Transferred money from another eligible account.

Received an eligible retirement distribution.

Moved funds from securities.

There can be completely legitimate explanations.

But documentation matters.

Under Freddie Mac’s updated requirements, significant changes in applicable depository account balances can require additional analysis and sourcing.

For certain increases exceeding the applicable threshold, the amount that can be used may be limited unless the additional funds can be properly documented as coming from an eligible source.

The takeaway for a home buyer is simple:

Do not move large amounts of money around before buying a home and assume the lender will not need to understand where it came from.

Keep your documentation.

What If the Account Balance Dropped Significantly?

The other direction matters too.

A substantial decrease in an applicable account during the required review period can affect whether the account can be used.

There can be exceptions when the decrease reflects documented movement into another eligible account, such as eligible securities or retirement assets.

Again, the important lesson is not:

“Never move your money.”

The lesson is:

Keep the paper trail.

A legitimate transfer is much easier to understand when we can document exactly where the money came from and where it went.

What About Someone Who Sold a Business?

This is where the strategy becomes especially interesting.

Imagine someone owned a successful business for 25 years.

They sell the business.

They now have substantial liquid assets.

They move to Florida.

But they no longer have the W2 salary or business income they once had.

If someone evaluates that borrower using only:

“What is your monthly employment income?”

the financial picture may look very different from reality.

Freddie Mac’s accumulated assets provisions contain requirements addressing certain eligible proceeds and the documentation and holding periods that may apply.

That means someone who recently sold a business may deserve a much deeper mortgage qualification conversation than simply:

“You are retired now, so what is your pension?”

What About Someone Who Sold Another Home?

This is another scenario that can be particularly relevant in Florida.

Imagine a homeowner sells a property in:

New York.

New Jersey.

Massachusetts.

California.

Virginia.

Or another state.

They move to Florida.

The sale leaves them with substantial proceeds.

But perhaps they retired during the move.

Their traditional monthly income decreased.

Their assets, however, increased substantially.

Under the updated requirements, certain properly documented proceeds from the sale of real property may potentially become part of the eligible asset analysis when the applicable Freddie Mac requirements are satisfied.

Ownership history, deposit history, documentation and required holding periods can matter.

This is exactly why a mortgage application should evaluate the entire financial picture.

Who Should Know About This Freddie Mac Change?

This provision may deserve investigation for someone such as:

A retiree with substantial savings but limited monthly retirement income.

A business owner who recently sold a business.

A buyer with substantial securities but modest traditional monthly income.

Someone relocating to Florida after selling another property.

A borrower approaching retirement whose accumulated assets are stronger than the traditional income picture.

A legitimate second home buyer with substantial eligible assets.

An investor whose financial profile includes significant eligible accumulated assets.

A financially established younger borrower who previously might have encountered an age limitation involving certain depository accounts or securities.

None of these examples means the borrower automatically qualifies.

They mean:

There may be another qualification strategy worth investigating.

What This Freddie Mac Change Does Not Mean

This part may be even more important than understanding what changed.

It does not mean every dollar in your bank account becomes income.

It does not mean every asset you own qualifies.

It does not mean money being used for the transaction can necessarily remain in the qualifying asset calculation.

It does not mean every retirement account qualifies.

It does not mean cryptocurrency qualifies for this calculation. Freddie Mac specifically excludes cryptocurrency from this asset qualification method. 

It does not mean selling a business or property automatically creates qualifying income without satisfying the applicable documentation requirements.

And it does not mean having $500,000, $1 million or even more in assets automatically gets your mortgage approved.

Freddie Mac’s mortgage requirements still apply.

The entire borrower and transaction still need to qualify.

There Is Another Important Detail Because Today Is September 22, 2026

The timing matters.

Freddie Mac’s current Guide specifically tells lenders that the new accumulated assets requirements announced in Bulletin 2026 10 may be implemented before the mandatory February 3, 2027 version becomes effective. 

So right now we are in an unusual period.

A lender may have implemented the new requirements.

Another lender may not have implemented them yet.

That means this is not simply about knowing the Freddie Mac guideline.

We also need to know whether the lender actually being used has adopted it.

And this is one of the places where working with a mortgage broker who has access to multiple wholesale lenders can become particularly valuable.

If one wholesale lender has not implemented an eligible Freddie Mac guideline early, another potentially may have.

Availability still needs to be verified with the individual lender.

This Is Why Mortgage Guidelines Matter

Imagine two borrowers with identical financial profiles.

Or even more interesting:

Imagine two mortgage professionals looking at the exact same borrower.

The borrower says:

“I am retired.”

One person asks:

“How much pension and Social Security income do you receive?”

The other person asks:

“Tell me about your complete financial picture. What assets have you accumulated? Where are they held? How long have you owned them? Did you recently sell a business or property? Are any of those assets already producing income? How much will you need for the transaction?”

Those are very different conversations.

And sometimes the second conversation uncovers possibilities the first conversation never investigated.

Real Estate Agents Should Know This Too

Imagine meeting a buyer who tells you:

“I do not think I can qualify anymore. I retired.”

Do not automatically assume that person cannot buy.

And do not promise that they can.

Instead, ask them to have a mortgage professional evaluate the complete financial picture.

Maybe they have:

$700,000 in investments.

$1 million in accumulated assets.

Proceeds from selling a business.

Proceeds from selling another home.

Significant eligible savings.

Or some combination of assets and traditional income.

The right response is not:

“You cannot qualify because you no longer have a job.”

And it is not:

“You have a million dollars, so of course you qualify.”

The better response is:

“Let us have the mortgage professional evaluate everything.”

Sometimes Mortgage Qualification Is Not About Finding More Money

This may be my favorite lesson from the entire update.

Sometimes a borrower does not need:

A higher salary.

Another job.

More investment income.

A cosigner.

Or another year of working.

Sometimes the borrower already has substantial financial resources.

The question is whether mortgage guidelines provide an appropriate way to recognize those resources for qualification.

That is what makes this Freddie Mac change worth understanding.

The Bottom Line

Freddie Mac’s 2026 accumulated assets update is much bigger than simply changing a mathematical divisor.

The updated requirements can potentially create more qualifying monthly income from the same amount of eligible net assets.

The calculation changes from 240 months to 180 months.

The update expands the potential usefulness of the provision.

The previous special 80 percent loan to value restriction is being removed.

Occupancy eligibility is expanding.

The age restriction for applicable depository accounts and securities is being removed.

There is a $30,000 minimum net eligible asset requirement.

Account history, sourcing and documentation can matter.

And as of September 22, 2026, early implementation is permitted before the requirements become mandatory for applicable mortgages with settlement dates on or after February 3, 2027. 

So if you have ever thought:

“I have plenty of money. I just do not show enough monthly income to qualify for the mortgage I want.”

Do not assume the conversation is over.

It may simply be time for a different conversation.

Your Next Step

If you are considering buying a home in Port St. Lucie, Stuart, Fort Pierce, Palm City, Jensen Beach, Hobe Sound, Royal Palm Beach, Wellington, Jupiter, Tequesta, Palm Beach Gardens, West Palm Beach, Boynton Beach, Tampa or anywhere in Florida and your assets are stronger than your traditional monthly income, let us look at the complete financial picture.

Do not send me only your income.

Tell me about your assets.

Your savings.

Your securities.

Your retirement accounts.

Your recent real estate sale.

Your business sale, if applicable.

Your intended occupancy.

Your purchase price.

And what you are trying to accomplish.

Then we can determine whether Freddie Mac’s accumulated assets provisions or another appropriate mortgage strategy may potentially fit your situation.

Because sometimes mortgage qualification is not about finding more money.

It is about understanding how the guidelines allow us to look at the money you already have.

Sources and Further Reading

The primary source for this article is Freddie Mac’s Single Family Seller Servicer Guide, particularly Section 5307.1 concerning assets as a basis for repayment of obligations. Freddie Mac’s current Guide specifically references Bulletin 2026 10 and explains that lenders may implement the new accumulated assets requirements before the mandatory February 3, 2027 version. 

Freddie Mac Single Family Seller Servicer Guide, Section 5307.1⁠

Freddie Mac also maintains its Loan Product Advisor documentation resources, which identify assets as a basis for repayment as an asset qualification source and specifically note that cryptocurrency cannot be included in this calculation. 

Freddie Mac Loan Product Advisor Documentation Matrix⁠

Contact Information

Edgar DeJesus

NMLS #230414

Call or Text: 561 223 9347

Email: Edgar@TreasureCoastHomeLoans.com

Helping home buyers, homeowners and real estate professionals throughout Port St. Lucie, Stuart, Fort Pierce, Palm City, Jensen Beach, Hobe Sound, Royal Palm Beach, Wellington, Jupiter, Tequesta, Palm Beach Gardens, West Palm Beach, Boynton Beach, Tampa and communities throughout Florida understand mortgage financing with greater clarity and confidence.

Important Disclosure

This article is provided for educational and informational purposes only and does not constitute legal, tax, financial, investment, real estate or lending advice. Property tax laws, constitutional proposals, exemptions, assessed values, millage rates, eligibility requirements and implementation rules may change. Information regarding proposed legislation or constitutional amendments reflects information available at the time this article was prepared and should not be interpreted as a guarantee that a proposal will be approved, implemented or produce a particular tax result.

Property tax obligations vary by property, jurisdiction, assessed value, exemptions, residency, ownership circumstances and other applicable factors. Buyers and homeowners should consult the appropriate Florida county property appraiser, tax collector, attorney or qualified tax professional regarding their individual circumstances.

Mortgage payment estimates involving property taxes may be based on estimated amounts and may differ from actual future tax bills. Future property tax reductions or exemptions should not be assumed when determining whether a borrower can afford a mortgage unless permitted under applicable lending and underwriting requirements.

Loan approval is not guaranteed and remains subject to lender review and verification of all required borrower, credit, income, employment, assets, liabilities, property, appraisal, title, insurance and other applicable information. Interest rates, Annual Percentage Rates, mortgage programs, lender credits, discount points, closing costs, underwriting guidelines and program availability are subject to change without notice.

Innovative Mortgage Services, Inc. is a Florida licensed lender.

Company NMLS #250769

Originator NMLS #230414

Florida Mortgage Lender License #MLD178

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Editorial Note: This article was prepared with AI assisted research, organization, and grammatical review, with final content reviewed and approved by Edgar DeJesus.