03/17/2025
As announced in Freddie Mac Guide Bulletin 2025-1, Freddie Mac has added flexibility to its requirements for rental income from a non-subject investment property or 2-to-4-unit primary residence that has been purchased on or up to 45 days prior to the note date of the subject transaction. These updates are effective immediately.
Non-subject Investment Property:
- If a non-subject investment property is purchased on or up to 45 days before the note date of the subject transaction, and a lease is not yet available because the property is not yet rented, 75% of the market rents from form 72/1000 may be used for qualification purposes when all of the following apply:
- Each borrower must currently own a primary residence or have a current rental housing payment documented.
- For borrowers currently residing in the same property, at least one borrower must own a primary residence or have a current rental housing payment documented.
- If no borrower has at least one year of investment property management experience, net rental income is limited to the amount that offsets the PITIA and, when applicable, payments on the secondary financing on the non-subject investment property.
- If a lease is available, the lease must be used to determine the net rental income.
- Each borrower must currently own a primary residence or have a current rental housing payment documented.
Non-subject 2-to-4-unit primary residence:
- When a non-subject 2–4-unit primary residence is purchased on or up to 45 days before the note date of the subject transaction and a lease is not yet available because the units are not yet rented, 75% of the market rents from Form 72 may be used for qualifying purposes.
- If a lease is available, the lease must be used to determine the net rental income.
Refer to the Freddie Mac Selling Guide for complete requirements
Please contact your Sales Representative with any questions.