Freddie Mac Single-Family Seller/Servicer Guide 5103.1 — Mortgages including a non-occupying Borrower

Freddie Mac Single-Family Seller/Servicer Guide 5103.1 — Mortgages including a non-occupying Borrower

Effective 2026-08-05 · Freddie Mac's stamp for this section

Refer to Bulletin 2026-10, which announced updates related to accumulated assets as income. Sellers may implement the new requirements prior to the mandatory February 3, 2027 version of this section. When a Mortgage includes a non-occupying Borrower, all of the following apply: ■ The Mortgage must be a purchase or “no cash-out” refinance transaction ■ The non-occupying Borrower must not be an interested party to the transaction (for example, the builder, property seller, real estate agent or broker) ■ The funds used to qualify for the Mortgage may come from the occupant and/or the nonoccupant Borrower The following requirements for specific underwriting methods also apply: ■ For Accept Mortgages: ❑ The loan-to-value (LTV) ratio must not exceed 95% ❑ Calculation or evaluation of the occupant Borrower’s monthly housing expense-toincome ratio or the occupant Borrower’s monthly debt payment-to-income ratio is not required ■ For Manually Underwritten Mortgages: ❑ The LTV ratio must not exceed 90% ❑ The occupant Borrower’s monthly housing expense-to-income ratio should not exceed 35% of their stable monthly income and/or qualifying asset amount as described in Section 5307.1(b), and the occupant Borrower’s monthly debt payment-to-income ratio must not exceed 43% of their stable monthly income and/or qualifying asset amount as described in Section 5307.1(b) Note: A Mortgage is considered to be secured by a Primary Residence when the Mortgaged Premises is occupied as a Primary Residence by an individual(s) who is the Borrower’s parent(s) or an individual(s) who has a disability and the Borrower is their parent or legal guardian. Refer to Section 4201.11 for additional information. Refer to the following Guide provisions for additional information related to non-occupying Borrowers: Other Guide provisions related to non-occupying Borrowers Guide provision Guide location Special eligibility and underwriting requirements for Refi Possible® Mortgages Section 4302.5 Eligible Borrowers for Home Possible® Mortgages Section 4501.4 When a non-occupying Borrower is an endorser, guarantor or surety Section 5103.3 Eligible Borrowers for HeritageOne® Mortgages Section 4504.3

Source: Freddie Mac Single-Family Seller/Servicer Guide 5103.1 — Mortgages including a non-occupying Borrower · source URL · snapshot 4c94f67729042dd6

Freddie Mac Single-Family Seller/Servicer Guide 5103.1 — Mortgages including a non-occupying Borrower — PENDING VERSION, takes effect 2027-02-03

Not yet in force. This is the pending version of the section, which takes effect 2027-02-03. The other version on this page governs until then.

Effective 2026-08-05 · Freddie Mac's stamp for this section

Borrower (Future effective date 02/03/27) When a Mortgage includes a non-occupying Borrower, all of the following apply: ■ The Mortgage must be a purchase or “no cash-out” refinance transaction ■ The non-occupying Borrower must not be an interested party to the transaction (for example, the builder, property seller, real estate agent or broker) ■ The funds used to qualify for the Mortgage may come from the occupant and/or the nonoccupant Borrower The following requirements for specific underwriting methods also apply: ■ For Accept Mortgages: ❑ The loan-to-value (LTV) ratio must not exceed 95% ❑ Calculation or evaluation of the occupant Borrower’s monthly housing expense-toincome ratio or the occupant Borrower’s monthly debt payment-to-income ratio is not required ■ For Manually Underwritten Mortgages: ❑ The LTV ratio must not exceed 90% ❑ The occupant Borrower’s monthly housing expense-to-income ratio should not exceed 35% of their stable monthly income, and the occupant Borrower’s monthly debt payment-to-income ratio must not exceed 43% of their stable monthly income Note: A Mortgage is considered to be secured by a Primary Residence when the Mortgaged Premises is occupied as a Primary Residence by an individual(s) who is the Borrower’s parent(s) or an individual(s) who has a disability and the Borrower is their parent or legal guardian. Refer to Section 4201.11 for additional information. Refer to the following Guide provisions for additional information related to non-occupying Borrowers: Other Guide provisions related to non-occupying Borrowers Guide provision Guide location Special eligibility and underwriting requirements for Refi Possible® Mortgages Section 4302.5 Eligible Borrowers for Home Possible® Mortgages Section 4501.4 When a non-occupying Borrower is an endorser, guarantor or surety Section 5103.3 Eligible Borrowers for HeritageOne® Mortgages Section 4504.3

Source: Freddie Mac Single-Family Seller/Servicer Guide 5103.1 — Mortgages including a non-occupying Borrower · source URL · snapshot 4c94f67729042dd6