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Fannie Mae and Freddie Mac announced Selling Guide updates on November 4, 2026. The changes address refinance eligibility, credit scoring, asset verification, property eligibility, rental income, and occupancy: areas that may affect lenders’ underwriting and documentation workflows.
Freddie Mac reclassified mortgages used to buy out a co-owner’s equity interest from cash-out to no-cash-out refinances. The change expands eligibility to the loan-to-value ratios, underwriting requirements, and affordable lending programs available for traditional no-cash-out refinances. Freddie Mac also removed the prior joint occupancy requirement between the borrower and co-owner. The 12-month joint ownership requirement remains, along with documentation and retention requirements.
Both GSEs addressed the expanded availability of VantageScore 4.0. Fannie Mae added its previously announced policy to the Selling Guide and extended use to manually underwritten loans and loans underwritten through Desktop Underwriter (DU) Version 12.1. Freddie Mac also permitted VantageScore 4.0 for manually underwritten mortgages and eliminated the Alternative FICO Credit Fee in Price.
Freddie Mac expanded acceptable asset documentation to include third-party verification reports for depository, securities, and retirement accounts, including when accumulated assets are used as income.
Fannie Mae expanded property eligibility to allow accessory dwelling units (ADUs) in eligible condominium projects. It also clarified principal residence and second-home occupancy requirements to align Selling Guide language with applicable security instruments.
Freddie Mac reorganized its rental income requirements and revised appraisal documentation guidance. It also provided more flexibility for documenting estimated rental income on certain two- to four-unit primary residences and investment properties when rental income is not used to qualify. In addition, Freddie Mac restored ADU zoning compliance requirements when rental income from an ADU is used to qualify.
Lenders should review the announcements and applicable Guide provisions to understand the requirements and effective dates for their workflows.
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