BIG FREDDIE MAC CHANGE
HELPS MORE CLIENTS QUALIFY
If you've ever had a buyer who clearly has the money
but couldn't quite make the income box work on paper,
a recent Freddie Mac change is worth your attention.
It opens up additional monthly income to
help qualify for any client that has reserves after their down payment.
What changed
Freddie Mac now lets borrowers use their assets
as qualifying income and, for the first time,
without any retirement-age requirement.
Previously, this kind of asset-based qualifying
was largely reserved for older or retired borrowers.
That age restriction has been removed for
eligible checking, savings, and investment accounts.
Even better: it's available immediately.
How it works
The math is simple.
We take assets the client has minus
down payment and reserve requirements.
We divide those assets by 180 and we can use
that as additional monthly income.
For example,
A buyer has $500,000 in assets
after down payment and any reserve requirement.
$500,000 / 180 = $2,778 per month
in additional monthly qualifying income.
Who this helps
This can help any client who has reserves in
checking/saving or investment accounts create
additional income to help them qualify.
This is great tool to help clients that
don’t show a lot of income but have a lot of liquid assets,
Or the client that is very close to qualifying
and needs just a bit more income to make the deal work.
We’re excited to help more clients purchase
a home or complete a rate and term refinance.
If you would like to look at your options, please reach out!
