Question 1

What did Freddie Mac Bulletin 2026-10 change about using assets as income?

Accepted Answer

It rewrote Guide Section 5307.1. The division factor drops from 240 months to 180, the 80% maximum LTV, TLTV and HTLTV is replaced by the standard limits in Section 4203.1, investment properties and all occupancy types become eligible, the requirement that a depository or securities account owner be at least 62 years old is removed, a $30,000 minimum in net eligible assets is added, and the loan must receive an Accept. It is mandatory for settlement dates on or after February 3, 2027, and lenders may implement it immediately.

Question 2

How is qualifying income calculated from assets under Section 5307.1?

Accepted Answer

Total the eligible documented assets, subtract the funds the borrower must bring to close plus any gift funds, borrowed funds or pledged assets, and divide the remainder, called net eligible assets, by the division factor. Under the new rule that factor is 180 months, so $900,000 of net eligible assets produces $5,000 a month of qualifying income instead of the $3,750 it produced at 240.

Question 3

Which assets can be used as qualifying income?

Accepted Answer

Retirement accounts recognized by the IRS where the borrower is fully vested and can withdraw the entire balance without penalty or early-distribution tax, lump-sum distributions deposited into a non-retirement account, depository accounts and securities, and proceeds from the sale of the borrower business or real property. Cryptocurrency is excluded. Assets count at full value — Freddie applies no haircut.

Question 4

Do you have to be 62 to use assets as income?

Accepted Answer

Not anymore. The old Section 5307.1 required at least one borrower who owned the depository or securities account to be 62 or older. Bulletin 2026-10 removes that age restriction. Retirement accounts still have to be accessible without an early-distribution penalty, which in practice means age 59½ for most account types.

Question 5

Can asset income be used on a 97% Home Possible loan?

Accepted Answer

The new rule replaces the flat 80% ceiling with the ratios in Section 4203.1, and Bulletin 2026-10 lists Section 4501.4 among the sections it updates, so Home Possible is in scope. Home Possible limits qualifying income to 80% of area median income, and income derived from assets counts toward that limit, so the two constraints have to be checked together.

Rule	Before	Now
Division factor	240 months	180 months
Max LTV / TLTV / HTLTV	80%	per Section 4203.1
Occupancy	Primary or second home only	Primary, second home, investment
Age of account owner	At least one owner 62+ to use depository accounts and securities	No age requirement
Minimum net eligible assets	None stated	$30,000
Risk class	Any	Accept required
Seasoning	None	12 months on depository and securities, unless funded from an eligible source
Balance movement	Not addressed	Down more than 20% over 12 months disqualifies the account; up more than 20% caps it at 120% of the prior balance, absent a documented source
Sale of real property	Not an eligible source	Eligible source of funds
Verification	Statements or VOD	Third-party verification reports accepted

What your assets qualify for now

What actually changed

How the number is built