Freddie Mac Asset Depletion Update: What Changed and Who It Helps

If you qualify for a mortgage using your assets rather than a paycheck, Freddie Mac just made a change that can meaningfully increase how much home you can buy. In Bulletin 2026-10, published August 5, 2026, Freddie Mac updated Guide Section 5307.1, which covers using accumulated assets as qualifying income. The headline change is a smaller divisor, and a smaller divisor means a bigger monthly income number.

New to this approach? Start with Asset Depletion Loans Explained for the basics, then come back here for what changed.

What Changed

Under the updated rule, Freddie Mac reduced the division factor used to convert eligible assets into qualifying monthly income from 240 months to 180 months. Everything else about the concept stays the same: you are not spending or pledging your assets, they are simply being used to calculate a monthly income figure for qualifying.

Why 240 to 180 Matters

The divisor is what turns a pile of assets into a monthly number, so shrinking it directly raises your qualifying income. Consider $900,000 in net eligible assets:

• Old rule: $900,000 divided by 240 equals about $3,750 per month.
• New rule: $900,000 divided by 180 equals about $5,000 per month.

That is roughly a 33% increase in qualifying income from the exact same assets. For an asset-based borrower, that can be the difference between a payment that fits the guideline and one that does not.

Other Improvements in the Same Update

Bulletin 2026-10 did more than change the divisor. Alongside it, Freddie Mac:

• Established a minimum net eligible asset requirement of $30,000.
• Removed the prior maximum loan-to-value cap that had limited these loans, aligning them with standard LTV requirements instead.
• Expanded eligibility to include investment properties, not just primary residences and second homes.
• Removed the borrower age restriction for depository accounts and securities.
• Added clearer rules for large swings in account balances over the prior 12 months, so significant increases or decreases are documented and handled consistently.

Taken together, these updates make asset-based qualifying both more generous and available to more borrowers.

When It Takes Effect

The changes are required for mortgages with settlement dates on or after February 3, 2027. Freddie Mac is, however, permitting lenders to implement them immediately. In practice that means some lenders may already be offering the expanded guideline while others wait until the mandatory date, so it is worth asking specifically whether a given lender has adopted it yet. Freddie Mac allows sellers to implement these changes early, but availability depends on each lender's own overlays and timing, so ask about current availability.

Who Should Pay Attention

• Retirees and near-retirees living off savings and investments.
• Self-employed borrowers whose tax returns understate their real financial strength.
• Real estate investors, now that investment properties are included.
• Anyone who was quoted a qualifying income under the old 240 divisor and told they came up just short.

If you were told no under the old math, the new math may change the answer.

Let's Re-Run Your Numbers

If you have strong assets and have either been turned down before or assumed you would not qualify, this update is a good reason to take another look. Availability of the updated guideline depends on each lender's adoption and overlays, so let's look at your scenario and what is currently available to you.

Get started here or book a call and we will run your specific scenario.

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Mike Prenesti, NMLS #1033445. Nexa Lending, LLC, NMLS #1660690. Equal Housing Opportunity. Licensed in Nevada. This article is for educational purposes only and is not a commitment to lend or financial advice. Not all borrowers will qualify. Guidelines are subject to change, so confirm current requirements before making decisions.