Freddie Mac Asset Depletion Rules 2027: Key Facts
Freddie Mac Bulletin 2026-10 (August 5, 2026) changed how accumulated assets count as qualifying income. The division factor fell from 240 to 180 months (about 33% more income from the same assets), the 80% LTV cap was removed, investment properties became eligible, and the age-62 requirement for depository and securities accounts was removed. A $30,000 minimum in net eligible assets, an LPA Accept and 12-month seasoning apply. Mandatory for settlement dates on or after February 3, 2027; lenders may implement immediately.
Freddie Mac Asset Depletion Rules 2027: Qualify With 33% More Income From Your Savings
Retired, living off investments, or just sold a business? Freddie Mac quietly rewrote the rule that turns savings into mortgage income — and it now works for investment properties too. Mandatory in February 2027, but some lenders already apply it.
What Changed: Before vs. After
| Rule | Before | Bulletin 2026-10 |
|---|---|---|
| Division factor | 240 months | 180 months |
| Max LTV / TLTV / HTLTV | 80% | Standard limits (Section 4203.1) |
| Occupancy | Primary or second home | Primary, second home, investment |
| Account owner age | 62+ for depository/securities | No age requirement |
| Minimum net assets | None stated | $30,000 |
| Underwriting | Any risk class | LPA Accept required |
| Seasoning | Not specified | 12 months (unless eligible source) |
| Real-estate sale proceeds | Not eligible | Eligible source |
Source: Freddie Mac Bulletin 2026-10, Guide Section 5307.1. Individual lenders may apply overlays.
How Much Income Your Savings Create
Formula: (eligible assets − funds to close − gift/borrowed/pledged funds) ÷ 180 = monthly qualifying income.
| Net eligible assets | Old rule (÷240) | New rule (÷180) |
|---|---|---|
| $500,000 | $2,083/mo | $2,778/mo |
| $900,000 | $3,750/mo | $5,000/mo |
| $1,500,000 | $6,250/mo | $8,333/mo |
| $3,000,000 | $12,500/mo | $16,667/mo |
At a 45% debt-to-income ratio, $1.5 million of net assets now supports about $3,750/month of total debt payments instead of about $2,812 — roughly $940 more room for a mortgage payment.
Who Wins Under the 2027 Rules
Retirees and early retirees
Large balances, little paycheck income. No age-62 rule for bank and brokerage accounts anymore.
Real estate investors
Investment properties are now eligible. See investment property mortgages 2027.
Business sellers
Sale proceeds count if deposited and held at least 90 days. Proceeds from selling real estate now count too.
Low-down-payment buyers with savings
The 80% LTV cap is gone — standard conventional limits now apply.
Watch-Outs Before You Apply
- 1. The 20% balance test. An account down more than 20% over 12 months is out unless the drop is a documented transfer to securities or retirement accounts.
- 2. Big recent deposits are capped. Growth above 20% counts only up to 120% of last year's balance unless sourced.
- 3. 12-month seasoning. Money moved in this year may not count yet.
- 4. Lender overlays. Some lenders treat assets-as-income as a manual or non-delegated product.
- 5. Not a fit? Non-QM asset-depletion and bank-statement loans have looser rules at higher rates. Compare non-QM lenders →
Background on the product: asset depletion mortgage guide.
Don't Wait Until February 2027
Lenders can apply the new divisor today. Find one that does — free.
FAQ: Asset Depletion Rules 2027
What changed in Freddie Mac's asset depletion rules?
Freddie Mac Bulletin 2026-10 (August 5, 2026) updated Guide Section 5307.1. The division factor used to convert assets into monthly income dropped from 240 to 180 months, the 80% maximum LTV/TLTV/HTLTV was removed in favor of standard limits, primary residences, second homes and investment properties are all eligible, and the borrower age restriction for depository and securities accounts was removed. Find lenders already using the new rules →
When do the new asset depletion rules take effect?
They are mandatory for mortgages with settlement dates on or after February 3, 2027, but Freddie Mac allows lenders to implement them immediately. That means two lenders can give very different answers on the same file until the mandatory date — so it pays to shop. Ask several lenders before February 2027 →
How much income do my assets create under the new rule?
Take your eligible documented assets, subtract the funds needed to close and any gift, borrowed or pledged funds, then divide the remaining net eligible assets by 180. For example, $900,000 of net eligible assets produces $5,000 a month of qualifying income, versus $3,750 under the old 240-month divisor — about 33% more. See what your assets qualify you for →
What are the requirements to use assets as income with Freddie Mac?
The loan must receive an Accept from Loan Product Advisor, be a purchase or no cash-out refinance, and the borrower needs at least $30,000 of net eligible assets. Depository and securities accounts must generally be seasoned 12 months. Accounts that fell more than 20% over 12 months are ineligible unless the drop is a documented transfer, and increases above 20% are capped at 120% of the prior balance unless sourced. Get matched with asset-based lenders →
Who benefits most from the 2027 asset depletion changes?
Retirees and early retirees with large savings but little W-2 income, people living off investments, business owners who sold a company, and investors buying rental property who previously could not use asset depletion on investment properties. Because the age-62 rule is gone, younger borrowers with substantial savings can use depository and brokerage accounts too. Compare offers for retirees and investors →
Related Guides
Your Savings Are Worth More to Lenders Now
See how much home your assets qualify you for — free, about 2 minutes.
Compare Lenders Now →