Tag: liquid assets as income

Freddie Mac – Using Liquid Assets as Income: I have a client with $3.4 million in liquid assets. Will Freddie allow depletion of assets as income?

Answer: I wouldn’t specifically call it ‘asset depletion’ since the agencies do not use those terms. Review the sections below that most closely resemble your client’s situation. References: Freddie Mac 5307.1: Assets as a basis for repayment of obligations (04/03/19) Refer to Bulletin 2019-7, which announced revisions to the calculation for establishing the debt payment-to-income ratio […]

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