Freddie Mac Investment Property Guidelines 2026: Where It Differs from Fannie Mae

Most MLOs run investment property files through Desktop Underwriter and assume Loan Product Advisor will produce similar results. It sometimes does, but Freddie Mac's investment property guidelines differ from Fannie Mae's in ways that matter for specific borrower profiles. Knowing where they diverge can unlock approvals for files that DU declined.

LTV and Credit Score Floors

• ✦Freddie Mac: 1-unit investment properties allow up to 85 percent LTV on purchase. 2-4 unit investment properties are capped at 75 percent on purchase.
• ✦Fannie Mae: similar caps apply. Maximum LTV on 1-unit investment purchase is 85 percent with restrictions on cash-out. 2-4 unit investment purchase is capped at 75 percent.
• ✦Key difference: Freddie Mac's LP uses a different risk model and sometimes approves investors with slightly higher DTI or lower reserves when the overall file profile is strong.

Reserve Requirements

• ✦Freddie Mac requires reserves for all investment properties, including those being financed and other financed investment properties the borrower already owns.
• ✦The reserve requirement varies: 2 percent of outstanding balance for financed investment properties not involved in the current transaction is a common threshold.
• ✦Freddie Mac is more explicit than Fannie Mae about counting only real estate-secured liabilities in the reserve calculation. Unsecured business debt does not count.
• ✦Retirement accounts: Freddie Mac counts 60 percent of vested retirement account assets toward reserves. Fannie Mae uses a similar but slightly different treatment depending on the account type.

Rental Income Treatment

• ✦Freddie Mac allows use of projected rental income from a new acquisition under certain conditions if supported by a 1007 appraisal. This can reduce the effective DTI if the projected rent is high relative to the PITIA.
• ✦Fannie Mae also allows projected rent with a 1007 but applies a 25 percent vacancy factor in most cases. Freddie Mac's vacancy factor and income calculation methodology can differ.
• ✦Existing rental income with 24-month history on Schedule E is treated similarly by both agencies, though Freddie Mac's depreciation add-back calculation has nuances worth checking against the current guide.