For borrowers with substantial financial assets but limited traditional income, qualifying for a conventional mortgage may have just become significantly easier.
For many financially successful Americans, qualifying for a mortgage can be surprisingly difficult.
Imagine having $1 million or more in savings and investments, very little debt, and a strong financial history, yet struggling to obtain mortgage financing because you don't receive a traditional paycheck.
This can be a common obstacle for retirees, successful entrepreneurs, investors, and financially independent individuals.
Freddie Mac's new mortgage guidelines are helping address this disconnect.
Freddie Mac has introduced an updated mortgage qualification method known as Accumulated Assets as Income, allowing eligible borrowers to convert qualifying financial assets into calculated monthly income for mortgage underwriting purposes.
The changes were announced in Bulletin 2026-10 and may be implemented immediately by participating lenders. The updated guidelines become mandatory under Freddie Mac's February 3, 2027, Selling Guide revision.
For borrowers with accumulated wealth, this represents a meaningful expansion of conventional mortgage financing opportunities.
What Is Accumulated Assets as Income?
Most mortgage approvals depend heavily on traditional income sources.
Lenders generally review employment earnings, self-employment income, Social Security, pensions, rental income, and other qualifying recurring income.
But financial strength isn't always reflected in monthly earnings.
A borrower who has accumulated substantial savings and investments may have considerable financial resources without needing to generate a traditional paycheck.
Under Freddie Mac's updated guidelines, qualifying assets can be converted into a calculated monthly income amount that may help satisfy mortgage underwriting requirements.
This is commonly described as asset-based mortgage qualification.
Rather than requiring the borrower to earn additional employment income, the program permits eligible accumulated financial resources to help establish their ability to repay a mortgage.
The important distinction: Eligible assets may provide qualifying income without necessarily requiring borrowers to liquidate their entire investment portfolios or establish regular withdrawals.
Assets must still satisfy all applicable underwriting and accessibility requirements.
How Much Qualifying Income Can Your Assets Generate?
Freddie Mac has made a particularly important change to the formula used for asset-based mortgage qualification.
Previously, eligible assets were generally divided by 240 months.
Under the new guidelines, the divisor is reduced to 180 months. That change increases potential qualifying income from the same amount of net eligible assets by approximately 33.3%.
Potential Mortgage-Qualifying Income
| Net Eligible Assets | Monthly Qualifying Income |
|---|---|
| $150,000 | $833 |
| $300,000 | $1,667 |
| $500,000 | $2,778 |
| $750,000 | $4,167 |
| $1,000,000 | $5,556 |
| $1,500,000 | $8,333 |
| $2,000,000 | $11,111 |
| $3,000,000 | $16,667 |
These figures assume all listed assets are net eligible assets after applicable deductions.
A borrower with $1.5 million in net eligible financial assets could potentially establish approximately $8,333 per month in qualifying income, or $100,000 annually for mortgage underwriting.
That does not necessarily mean the borrower is required to withdraw $100,000 annually from their investments. It represents calculated income recognized under the applicable mortgage qualification rules.
Interactive Tool
How Much Mortgage-Qualifying Income Could Your Assets Generate?
Freddie Mac's updated guidelines may allow your accumulated savings and investments to count toward your mortgage qualification. Adjust the values below to explore your potential income.
Examples: employment income, Social Security, pension payments, eligible rental income, or other qualifying monthly income.
Your Estimated Results
Your Estimated Monthly Asset Income
$5,556
New 180-month formula
Total Potential Monthly Qualifying Income
$5,556
Asset income + other income
Increase Under New Guidelines
$1,389/mo
+33.33% qualifying income
240-Month vs. 180-Month Formula
The 180-month divisor produces approximately 33.3% more asset-based qualifying income from the same eligible asset balance.
Calculator estimates are educational illustrations based on the 180-month divisor. Actual qualifying income depends on verified asset eligibility, account history, required deductions, underwriting requirements, and lender approval. Results are not a mortgage approval or estimate of maximum loan amount.
Your Assets Could Help You Qualify for More Home.
Your accumulated savings and investments may give you more mortgage buying power than your paycheck alone suggests. Find out what home financing options could be available based on your complete financial picture.
Personalized review. No obligation. No credit check required to request information.
Five Major Changes That Expand Mortgage Qualification Opportunities
1.The Age 62 Restriction Has Been Removed for Certain Accounts
Previously, borrowers generally needed to be at least 62 years old to use certain depository and securities accounts under the former asset-based qualification program.
The updated guidelines remove that age restriction for eligible depository and securities accounts. This is especially meaningful for early retirees and individuals who have achieved financial independence before traditional retirement age.
Retirement accounts may still be subject to withdrawal restrictions and other eligibility requirements.
2.Lower Down Payments May Be Possible
The previous asset-based qualification program generally limited mortgages to an 80% loan-to-value ratio. Under the updated guidelines, financing limits now follow the applicable underlying mortgage program.
This means qualifying borrowers may be able to use asset-based income for mortgages with less than 20% down. Eligible Home Possible and HomeOne mortgages are also permitted, subject to program requirements.
This may allow financially established buyers to retain more investment capital instead of committing a larger down payment solely because they are using assets to qualify.
3.Assets Can Generate 33% More Qualifying Income
Consider a borrower with $1 million in net eligible assets.
Previous formula: $1,000,000 ÷ 240 = $4,167 per month
New formula: $1,000,000 ÷ 180 = $5,556 per month
That's approximately $1,389 in additional monthly qualifying income, without increasing the borrower's investment portfolio. This additional recognized income may expand mortgage purchasing power, depending on debt obligations and other underwriting requirements.
4.More Occupancy Types Are Eligible
The new guidelines permit eligible mortgages for primary residences, second homes, and investment properties. Previously, asset-based qualification was more restrictive.
The expanded occupancy eligibility provides additional flexibility to qualified borrowers pursuing different real estate objectives.
5.Various Financial Assets May Be Considered
Depending on account-specific requirements, potentially eligible assets may include checking and savings accounts, eligible money market and depository accounts, qualifying stocks, bonds, and brokerage accounts, and certain retirement accounts, including eligible IRAs and 401(k)s.
Not all accounts automatically qualify. Ownership history, account accessibility, required deductions, balance changes, withdrawal restrictions, and documentation requirements can affect the amount recognized.
Example: Buying a $1 Million Home in San Luis Obispo County
Consider a couple who have retired after successful careers.
They have accumulated $1.5 million in eligible savings and investments and receive $4,000 per month in qualifying Social Security and pension income. They would like to purchase a $1 million home in San Luis Obispo County.
Their Financial Scenario
| Purchase Price | $1,000,000 |
| Down Payment — 20% | $200,000 |
| Mortgage Amount | $800,000 |
| Estimated Closing Costs | $20,000 |
| Remaining Net Eligible Assets | $1,280,000 |
| Monthly Asset-Based Qualifying Income | $7,111 |
| Other Monthly Qualifying Income | $4,000 |
| Total Potential Monthly Qualifying Income | $11,111 |
This hypothetical calculation assumes the remaining $1.28 million consists entirely of eligible assets and that no additional deductions are necessary.
Instead of relying solely on $4,000 per month in traditional retirement income, this couple could potentially demonstrate more than $11,000 per month in combined qualifying income.
That difference could dramatically change their available mortgage financing options.
The actual mortgage amount for which they qualify would still depend on credit, debt obligations, taxes, insurance, mortgage terms, automated underwriting, and other requirements.
Could Your Assets Help You Qualify for a Larger Mortgage?
Every financial situation is different. Let us help you understand which assets may count toward qualifying income.
Who Benefits Most From These Changes?
Early Retirees
Individuals who have stopped working before traditional retirement age but have substantial accumulated investments.
Business Owners and Entrepreneurs
Individuals who have sold a business, accumulated personal wealth, or have financial resources that exceed their current taxable income.
Investors
Borrowers with substantial brokerage accounts and investment portfolios who may benefit from recognizing eligible assets as qualifying income.
Traditional Retirees
Homebuyers whose pensions or Social Security benefits alone may not adequately reflect their overall financial strength.
Borrowers With Nontraditional Income
Individuals with irregular employment earnings, career transitions, or unconventional income patterns who possess sufficient eligible assets.
Important Eligibility Requirements
Accumulated Assets as Income is not a no-documentation mortgage or guaranteed approval program. Key restrictions include:
- The mortgage must receive an eligible automated underwriting Accept recommendation.
- The program applies to qualifying purchases and no-cash-out refinances.
- Cash-out refinances are not eligible under this qualification method.
- At least $30,000 in net eligible assets is required.
- Funds used for down payments, closing costs, and required reserves cannot also be counted as available assets for qualifying income.
- Depository accounts and securities must satisfy applicable seasoning, accessibility, and documentation requirements.
- Certain depository-account balance changes may affect eligibility or the amount recognized.
- Individual lenders may impose additional restrictions.
Every borrower must be evaluated based on their specific circumstances.
A Smarter Way to Evaluate Financial Strength
At Assist Home Loans, we believe mortgage qualification should consider a borrower's complete financial position.
Someone with substantial accumulated savings and investments should have an opportunity to demonstrate financial strength even when traditional employment income is limited.
Freddie Mac's updated guidelines represent an important move toward more flexible mortgage qualification.
Understanding the guidelines, recognizing eligible financial assets, and structuring the right mortgage are essential to taking advantage of these opportunities.
Your Assets May Help You Qualify for More Home Than You Think
If you've accumulated substantial savings, investments, or retirement assets but have been told your income is insufficient to qualify for a mortgage, it may be time to explore your options again.
Assist Home Loans can help evaluate your financial circumstances and identify mortgage programs suited to your needs.
Use the interactive calculator above to estimate your potential qualifying income, then request a personalized mortgage review. You may have more purchasing power than you realize.
You May Have More Mortgage Buying Power Than You Realize.
Explore your financing opportunities with a mortgage broker who understands how to evaluate both traditional income and accumulated financial assets.
Frequently Asked Questions
Justin Stearns
Mortgage Broker | Assist Home Loans
Justin Stearns NMLS #258870 · Assist Home Loans NMLS #1678642 · CA DRE #01504336
Website: www.assisthomeloans.com · Appointment Booking: calendly.com/justinstearns
Disclosures & Sources
Source
This article summarizes Freddie Mac Bulletin 2026-10 and the corresponding updates to Freddie Mac Single-Family Seller/Servicer Guide Section 5307.1. Because Freddie Mac provides multiple effective-dated versions of its guidance, the applicable version should be verified for each transaction before finalizing eligibility conclusions. Freddie Mac Bulletin 2026-10 (Accumulated Assets as Income) · Freddie Mac Single-Family Seller/Servicer Guide Section 5307.1
Calculator Disclosure
This calculator provides estimates for educational purposes only. Financial assets must satisfy applicable eligibility, documentation, account-history, and underwriting requirements. Net eligible assets may be lower than the amounts entered. Calculated qualifying income is not guaranteed and does not constitute mortgage approval or a commitment to lend.
General Mortgage Disclosure
Mortgage eligibility is subject to lender and investor guidelines, automated underwriting, creditworthiness, property eligibility, and other requirements. Programs and guidelines are subject to change. All examples are hypothetical and do not represent an offer or guarantee of financing.
Asset-based qualifying income is a calculated figure recognized under specific underwriting rules. It does not represent actual investment income, distributions, or returns, and it does not imply that accumulating wealth alone establishes ability to repay. Not all accounts qualify, and individual lenders may impose additional restrictions or choose not to offer this qualification method.
Equal Housing Opportunity. JHS Lending Services, Inc. d/b/a Assist Home Loans · NMLS #1678642 · Licensed in California and Colorado