Asset Depletion Mortgage in Florida: Freddie Mac's 2026 Rules Can Turn Assets Into Qualifying Income

Freddie Mac expanded its conventional assets-as-income rules in 2026. Participating lenders may now adopt a formula that divides eligible net assets by 180 months instead of 240, removes the age-62 restriction for qualifying bank and brokerage assets, allows investment properties, removes the old program-specific 80% LTV cap, and requires at least $30,000 in net eligible assets. The rules become mandatory February 3, 2027.

For Florida borrowers with significant savings, investments or liquidity but limited W-2 or tax-return income, that creates an important conventional alternative to consider before assuming a Non-QM loan is the only solution.

What is an asset depletion mortgage?

"Asset depletion" is an industry term for using a borrower's eligible accumulated assets to create a monthly qualifying-income amount for mortgage underwriting. Freddie Mac calls this "assets as a basis for repayment of obligations" or accumulated assets as income.

This is not a separate exotic mortgage product. It is a method of qualifying for an eligible Freddie Mac conventional mortgage when documented assets can support the borrower's ability to make the monthly payments. Freddie Mac's Guide specifically allows qualifying assets to be used for repayment of monthly obligations and notes that a mortgage application should still include employment and income information even when the borrower qualifies solely through assets.

That distinction is important. This is not a "no-documentation mortgage." The borrower still goes through mortgage underwriting. The difference is how qualifying income can be established.

What changed under Freddie Mac Bulletin 2026-10?

Freddie Mac announced the new accumulated-assets rules on August 5, 2026. They become mandatory for eligible mortgages with settlement dates on or after February 3, 2027, but Freddie Mac specifically permits lenders to implement them immediately.

Here are the major changes:

Freddie Mac also added rules for significant changes in account balances and expanded acceptable documentation and eligible asset-funding sources.

Why changing the divisor from 240 to 180 matters

This is probably the easiest part of the change to understand. Suppose, after applying Freddie Mac's eligibility rules and required deductions, a borrower has $720,000 in net eligible assets.

Under the prior calculation: $720,000 ÷ 240 = $3,000 per month

Under the new calculation: $720,000 ÷ 180 = $4,000 per month

That is $1,000 more monthly qualifying income from the same amount of net eligible assets. Mathematically, the 180-month formula produces approximately 33.3% more qualifying monthly income than the 240-month formula when the same asset amount is eligible. That can materially affect debt-to-income calculations.

This is an illustrative calculation only. The full account balance is not automatically eligible, and the example does not represent a loan approval.

You no longer have to be 62 to use certain bank or brokerage assets

This may be the most important change for some borrowers. Under the prior version of Freddie Mac's rule, using depository accounts and securities in this way generally required at least one borrower who owned those assets to meet an age requirement. Bulletin 2026-10 removes the borrower age restriction for depository accounts and securities.

That opens the strategy to a much wider group. For example, consider a 48-year-old entrepreneur who recently sold a business, a 52-year-old executive living partly from investments, a younger borrower with substantial brokerage assets, or someone taking time away from traditional employment but holding significant liquidity. Under the new framework, age by itself no longer disqualifies those bank or securities assets from this specific Freddie Mac method. Retirement assets still have their own eligibility and accessibility rules.

Investment properties are now included

Another major change is occupancy. Freddie Mac's updated rules allow accumulated assets to be used as qualifying income for primary residences, second homes, and investment properties. That is particularly relevant in Florida. An investor may have significant liquid assets but intentionally structure taxable income in a way that makes traditional qualification more complicated. Now, depending on the lender's adoption and the complete file, a Freddie Mac conventional investment-property loan may have another qualification path. That does not replace DSCR financing. It simply adds another option worth comparing.

The old special 80% LTV cap is being removed

Under the current older-version Guide framework, mortgages using assets as a basis for repayment have generally been subject to a special 80% maximum LTV/TLTV/HTLTV limitation. Bulletin 2026-10 removes that special cap. Instead, eligible loans follow the applicable standard LTV limits under Freddie Mac's normal loan-to-value framework.

That does not mean every borrower can automatically finance at a particular high LTV. Property type, occupancy, mortgage type, Loan Product Advisor findings and other Freddie Mac requirements still apply. The key change is that this asset-income method no longer carries its own blanket 80% ceiling.

There is now a $30,000 minimum

Freddie Mac's new rule requires at least $30,000 in net eligible assets after applying the required calculations. This is another reason the number displayed on a bank statement is not the same thing as the amount underwriters can necessarily use. Depending on the complete file, the calculation can be affected by funds needed for the transaction, encumbered assets and other eligibility adjustments. The lender has to determine the actual net eligible asset amount before dividing it by 180.

The account-history rules became more important

The new framework is broader in some ways—but stricter in documentation. Freddie Mac generally requires depository accounts and securities used under the updated rules to be seasoned for 12 months before the Note Date, unless the account was funded from an eligible documented source.

Freddie Mac also created specific rules for major balance movements:

• If the account dropped by more than 20%: A depository account whose balance decreased by more than 20% over the applicable 12-month period generally cannot be used, unless the reduction is documented as a transfer into eligible securities or retirement assets.
• If the account increased by more than 20%: The eligible amount can generally be limited to 120% of the balance from 12 months earlier, unless the increase can be documented as coming from an eligible source. Freddie Mac identifies possible documented sources such as transfers from eligible accounts, lump-sum distributions, proceeds from selling a business and proceeds from selling real property.

So this program is not simply "show the lender a big balance today." The history behind the money matters.

What if I recently sold a business?

This is one of the Florida borrower profiles where the updated rule could become particularly useful. Freddie Mac specifically addressed proceeds from a borrower's business sale. Under the updated policy, qualifying business-sale proceeds must meet documentation requirements and must generally have been deposited into a borrower-owned eligible depository or securities account and held continuously for at least 90 days as of the current account statement.

For a business owner transitioning after a sale, that can create a potential path to conventional mortgage qualification even when traditional earned income has changed. This is also exactly the kind of scenario I would review before automatically sending the borrower into a bank-statement or Non-QM program.

Is this the same thing as a Non-QM asset qualifier?

No. This is one of the most important distinctions in the article.

Freddie Mac accumulated assets as income is a conventional agency underwriting method. The loan still has to satisfy Freddie Mac requirements, including the applicable automated underwriting result, credit, assets, property, LTV and other eligibility rules. Under the new rule, the mortgage must receive an Accept result.

A Non-QM asset-based loan is a separate proprietary asset-depletion or asset-qualifier program with its own asset formula, reserve requirements, LTV limits, credit standards, property rules, documentation, seasoning, pricing, and income calculations.

For an asset-rich borrower, I would compare both rather than assume one is automatically superior.

Asset depletion vs. bank statement vs. DSCR

These strategies solve different problems:

The mistake is starting with a loan product before identifying the actual qualification issue. If the borrower has substantial eligible assets, I would test the conventional asset-income route before concluding that Non-QM is required.

Who could benefit most from the updated rules?

• Retirees and early retirees — A borrower may have significant wealth but relatively modest taxable monthly income.
• Business owners after a liquidity event — Selling a company can leave someone with strong assets but a recent change in traditional employment income.
• Investors — The updated Freddie Mac framework now expressly permits investment properties.
• Younger asset-rich borrowers — Removing the age restriction for depository accounts and securities expands eligibility beyond borrowers traditionally associated with retirement.
• Borrowers living from investment portfolios — Someone may have significant savings and securities while intentionally drawing only limited taxable income.

In all of these cases, the full asset, income, credit and property picture still matters.

Does the borrower have to spend the assets every month?

No. The underwriting calculation converts eligible assets into a hypothetical monthly qualifying amount. It does not mean Freddie Mac requires the borrower to withdraw exactly that amount every month after closing. However, the assets have to meet the applicable eligibility, ownership, documentation and accessibility requirements. That is why "asset depletion" can be a slightly misleading consumer term. The underwriting is effectively measuring whether documented accumulated assets are sufficient to support the mortgage obligation.

Can this be used for cash-out refinancing?

Not under the updated Bulletin 2026-10 accumulated-assets framework. Freddie Mac specifies that the mortgage must be a purchase transaction or a no-cash-out refinance. A homeowner specifically seeking cash-out financing would need another qualifying approach.

Why lender selection matters right now

This is especially important in October 2026. Freddie Mac's new rules are not mandatory until February 3, 2027. But Freddie Mac allows lenders to implement them early. That means two lenders can potentially look at the same borrower today and apply different versions of Section 5307.1 depending on implementation timing and lender overlays. Some mortgage companies have already publicly announced early adoption of the updated framework.

This is an area where broker access can matter. If one lender has not implemented the expanded rules yet, that does not necessarily mean the borrower's scenario fails everywhere.

Current mortgage-rate context

Freddie Mac reported on October 1, 2026 that its national average 30-year fixed mortgage rate was 7.28%. The average 15-year fixed was 6.60%. These are national survey averages, not individual Florida rate quotes and not a promise of pricing for an asset-depletion borrower.

But higher-rate environments make the qualification strategy important. If an asset-rich borrower can legitimately qualify under conventional guidelines, I would want to compare that structure with alternative-documentation products before deciding which loan provides the best overall combination of qualification, rate, costs, cash requirement and flexibility.

My practical approach for a Florida borrower

If someone tells me "I have plenty of money, but my tax returns or paycheck don't show enough income for the mortgage I want," I would not immediately conclude that they need a Non-QM loan. I would first review the type and ownership of the assets, how long they have been in the accounts, recent balance changes, what funds are needed to close, whether any assets are pledged or otherwise restricted, the property type, the transaction type, and whether an available lender has already adopted Freddie Mac's updated rules.

Then we can compare conventional accumulated-assets qualification against bank-statement, asset-based Non-QM or other appropriate options. That is a much better strategy than assuming "low taxable income means no conventional mortgage."

Strong assets but limited qualifying income? Before assuming you need a Non-QM loan, let's compare Freddie Mac's accumulated-assets method with conventional and alternative asset-based programs using your actual account structure, property and transaction. Schedule your mortgage strategy call.

Frequently Asked Questions

Authoritative Sources

• Freddie Mac — Bulletin 2026-10, August 5, 2026
• Freddie Mac — Guide Section 5307.1, Assets as a Basis for Repayment of Obligations
• Freddie Mac — October 1, 2026 Mortgage Rate Data
• Newrez Correspondent — Freddie Mac Bulletin 2026-10 Implementation Notice

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