Important Mortgage Changes Arriving in November—and Two New Colorado Homebuyer Programs

Several mortgage changes take effect in early November 2026, including revised rental-income guidelines and the next phase of the appraisal industry's transition to UAD 3.6.

Colorado is also introducing new homebuyer-assistance opportunities for first responders and qualifying first-time buyers. Here is what borrowers, buyers, and real estate professionals should know.

Fannie Mae's New Rental-Income Rules Begin November 1

Fannie Mae's revised rental-income requirements become mandatory for loan applications dated November 1, 2026, or later.

The changes are especially important for borrowers purchasing or refinancing:

• Investment properties
• Short-term rentals
• A new primary residence while converting their current home into a rental
• Properties supported by a recently executed lease

One of the most significant changes involves departing residences. A newly signed lease will no longer always be sufficient by itself to establish qualifying rental income from the home the borrower is leaving.

Short-term-rental income will also be subject to updated documentation and calculation requirements.

What This Means for Borrowers

If rental income is needed to qualify, the application date and available documentation could materially affect the loan calculation.

Borrowers should not assume that projected rent, a newly signed lease, or income shown on a vacation-rental platform will automatically qualify. The complete property history, tax returns, lease documentation, appraisal information, and applicable lender requirements may all need to be reviewed.

Wholesale lenders may also apply guidelines that are more restrictive than Fannie Mae's minimum requirements.

For more background on the UAD appraisal transition, see our earlier article on UAD 3.6 appraisal changes and what they mean for buyers.

The UAD 3.6 Appraisal Transition Begins November 2

The mortgage industry is continuing its transition to Uniform Appraisal Dataset 3.6, commonly called UAD 3.6.

For affected conventional loans, appraisals initially submitted to the Uniform Collateral Data Portal on or after November 2, 2026, must generally use the new format. Certain approved lenders may operate under a temporary exception and continue accepting the older UAD 2.6 format for a limited period.

This creates a potentially confusing transition in which different lenders may temporarily have different appraisal requirements.

Why This Matters

A borrower may begin a transaction with one lender and later discover that an appraisal completed under the older format cannot be transferred easily to another lender.

Before an appraisal is ordered, the mortgage professional, lender, appraisal-management company, and investor should be aligned on the required format—particularly if there is any possibility the loan could be moved to another lending channel.

Borrowers should not have to understand the technical differences between the two appraisal systems. However, they should know that choosing or changing lenders after the appraisal is completed may create additional questions, costs, or delays during the transition.

New Colorado Champions Assistance for First Responders

The Colorado Housing and Finance Authority has announced a new program called Colorado Champions, expected to launch in November 2026.

The program is designed for eligible first responders employed in Colorado, including qualifying:

• Peace officers
• Firefighters
• Emergency medical technicians
• Dispatch personnel
• Corrections personnel
• Port-of-entry personnel
• Wildlife personnel

Eligible buyers may use a 30-year fixed-rate FHA, VA, USDA, Fannie Mae HFA Preferred, or Freddie Mac HFA Advantage purchase loan.

The announced assistance is a repayable second mortgage equal to the lesser of:

• $25,000, or
• 4% of the first-mortgage amount

Payments are deferred, but the assistance is not forgiven. Repayment is generally triggered by events such as selling the property, refinancing, paying off the first mortgage, reaching maturity, or no longer occupying the property as a primary residence.

CHFA announced a maximum qualifying income of $196,810 and a minimum decision credit score of 620 for borrowers with credit scores. Additional program and lender requirements will apply.

What Colorado First Responders Should Know

This could be a valuable option for reducing the upfront funds needed to purchase a home, but buyers should not treat the assistance as a grant.

CHFA had not yet announced the exact reservation-opening date when the program was introduced. Buyers should wait for final operational instructions and obtain a complete eligibility review before relying on the funds in a purchase offer.

Up to $50,000 Through the Dearfield Fund

CHFA has also announced that its Fannie Mae HFA Preferred program can now be paired with assistance from the Dearfield Fund.

Eligible Colorado first-time homebuyers who have faced systemic barriers to homeownership may receive as much as $50,000, subject to program availability, participating-lender approval, and the borrower's complete eligibility.

The assistance is interest-free and does not require monthly payments. It is not, however, free money or a traditional grant.

The borrower generally contributes at least 3% toward the purchase. When the home is sold or refinanced, the borrower repays the original assistance plus a share of the property's appreciation, capped under the program's requirements.

Questions to Ask Before Using the Program

Before relying on Dearfield Fund assistance, buyers should confirm:

• Income and purchase-price limits
• First-time-homebuyer requirements
• Minimum borrower contribution
• Participating-lender availability
• Total combined loan-to-value limits
• Whether the assistance can be combined with other programs
• How the appreciation-sharing obligation is calculated
• What happens when the home is sold, refinanced, or paid off

The amount of assistance alone does not determine whether the program is the right fit. Buyers should also understand the long-term repayment obligation.

FTC Warning: Be Careful With Debt-Relief Companies

The Federal Trade Commission recently announced the permanent shutdown of a debt-relief operation accused of impersonating banks and government agencies, promising debt reductions of 75% or more, charging advance fees, and obtaining credit reports without a permissible purpose.

Debt-relief scams can cause more than an immediate financial loss. A consumer who is persuaded to stop paying legitimate creditors may experience late payments, collection activity, additional fees, and serious credit damage.

That damage can also affect the consumer's ability to qualify for a mortgage.

Be particularly cautious when a company:

• Claims to represent a bank or government agency
• Guarantees that most of a debt will be eliminated
• Demands payment before providing services
• Pressures the consumer to stop paying creditors
• Requests sensitive financial information unexpectedly
• Discourages the consumer from independently verifying the company

Before changing payment behavior, contact the creditor directly using a verified phone number or website. Mortgage professionals can explain how missed payments may affect loan qualification, but individualized debt-relief, legal, tax, or credit-repair advice should come from an appropriately qualified professional.

What This Means for Homebuyers

The November changes reinforce an important point: mortgage qualification is not based on a single advertised guideline.

Rental income, appraisal requirements, down-payment assistance, credit history, occupancy, property type, lender overlays, and application timing can all influence the final result.

A program that looks promising online still needs to be evaluated using the borrower's complete financial picture, the specific property, and the lender's current requirements.

If you have questions about how any of these changes could affect your purchase or refinance, contact us directly. We are licensed in California and Colorado and can walk through the specifics with you.

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This article is for educational purposes only and does not constitute legal, tax, or financial advice. Program details, income limits, and eligibility requirements are subject to change. Verify current program status and requirements directly with CHFA at chfainfo.com before relying on any program in a purchase offer. SMS Mortgage is a licensed mortgage broker in California and Colorado. Stephanie Pedley holds individual MLO authorizations in Texas and Ohio through sponsorship arrangements, and in Nevada through sponsorship with CASMIA HOLDING LLC (NMLS #1740673). NMLS Individual #1087365 · NMLS Company #1147207 · CA DRE #01265685. Equal Housing Opportunity.