Under Freddie Mac guidelines, Individual Retirement Accounts and 401(k)s, lump-sum retirement account distributions, or the proceeds from the sale of a borrower's business can be used to determine a borrower's eligibility for a mortgage.

This is good news for retiring Baby Boomers and other savvy homebuyers who have limited incomes but substantial finance assets in helping to qualify them for a low-rate mortgage.

Freddie Mac has also long allowed lenders to use income from dividends, interest payments, trust distributions and Social Security income to calculate a borrower's qualifying income.

Source: Freddie Mac