Freddie Mac cash-out: a construction exception is not a blanket title waiver
A February bulletin addressed inherited or legally awarded land in specific construction-to-permanent and renovation cases.
What changed
For the specified cash-out construction-to-permanent and renovation cases, Freddie Mac removed the minimum six-month titling period where at least one borrower inherited or was legally awarded the land. The construction changes apply to mortgages with application-received dates on or after February 4, 2026.
What to verify
Identify the product and construction structure. Retain the documentation showing how title was acquired and confirm the controlling application-received date. A result from an ordinary ownership-seasoning calculator cannot establish that the construction exception applies.
Avoid mixing clocks
A title requirement and the age of a first lien are separate. Record the start date and governing event for each, and independently check the applicable Guide sections, appraisal basis and special product requirements.