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Old 05-03-2015, 01:20 PM
 
6 posts, read 3,260 times
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Here is the scenario:

I am retiring from municipal job after 30 years and will receive Calpers (defined benefit) retirement. Have accepted another job out of California with a municipality in same occupation line of work. The new job starts May 18, with paycheck 2 weeks later. I am receiving full salary from old job until 7/31/15 in using up unused vacation and personal leave, so there will be overlap of 2 paychecks for that period (approx 16k/mo pre witholding).

We want to purchase a house in new state, and are keeping our old house to lease out for a year or so until we sell. Leasing will net us about 2k/mo after expenses but do not need to use lease income for 2nd mortgage as our combined retirement/salary will be 200k/year.

We have been told by a lender that we cannot close on a house until disbusement of our first retirement check in September. My wife and I do not want to wait that long to settle in our new location. I have a furnished apartment month to month until we buy the new house and she gets here. My own contribution to my Calpers retirement is in excess of 440K....this is my own contribution monies.

Fico scores are high. Present home owned for 20 years, present payment about 21% of income, overall debt currently 28%.

Looking to purchase home in range of 295K-350K depending upon area, with 20% down, so mortagage amount up to 280K. Is there a conventional mortgage loan we can get so we can prequalify and close sooner than July?
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Old 05-03-2015, 01:33 PM
 
Location: Southern California
4,350 posts, read 4,963,666 times
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Quote:
Originally Posted by Davis1011 View Post
but do not need to use lease income for 2nd mortgage
Your rental income might be all you need for conventioanl considering you are moving out of California.
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Old 05-03-2015, 02:57 PM
 
6 posts, read 3,260 times
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Can't edit my original post but meant to say that we want to close sooner than September. Would like to close July.

Won't have rental income on present house until AFTER we move, so that can't be counted as qualifying income.
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Old 05-03-2015, 05:19 PM
 
Location: Port Charlotte
3,926 posts, read 4,426,419 times
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Having done this, go to a mortgage broker. Do NOT go to BofA, Wells, etc. They will buy the loan after closing, but almost impossible to get past UW. Been there, done that.

Now, you can get a letter from Calpers setting forth your income, when you will get it, etc. should be able to get past it. BTW, can you go FHA? It is actually quicker and easier.
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Old 05-04-2015, 07:59 AM
 
Location: MID ATLANTIC
7,614 posts, read 17,708,635 times
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Also, try a credit card union. We have another category called "future primary residence." You may have to accept an ARM to close sooner (7/1 in the 2's or 10/1 in the mid 3's) but it is definitely possible.
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Old 05-04-2015, 06:22 PM
 
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Thanks for the input! Why would an ARM close sooner than a 30 yr fixed? Is the required documentation different? I hadn't considered an ARM, but since we would likely sell our 1st home 1 or 2 years from now, this might be an option. I don't understand why the underwriter is insisting on the Retirement payment to be disbursed before closing. I would think that a state guaranteed monthly income (for life) verified by the state agency would be better than any paystub from an employer. But I'm not an underwriter.

As to FHA, I'm not familiar with those loans, but I always thought they were for first time borrowers coming in with no down and having mortgage insurance. Is the interest rate higher?
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Old 05-04-2015, 08:49 PM
 
Location: Plano, Texas
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Stay away from FHA loans. Due to recent changes, FHA is loan of last resort.
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Old 05-05-2015, 06:05 AM
 
Location: MID ATLANTIC
7,614 posts, read 17,708,635 times
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Why ARMs? Most lenders tend to sell fixed rate loans to the twins, Fannie & Freddie. However, ARMs are for the most part, are portfolio loans, where the lenders can create their own credit profiles.
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Old 05-06-2015, 10:36 PM
 
6 posts, read 3,260 times
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Thanks all for your input. I am going to look into an ARM loan. This might work out well because when we sell our California home in 1-2 years, we most likely will pay off this new home with the proceeds. Will also try to find a bank or CU that portfolios their loans. May have better luck this way. Thanks.
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Old 05-09-2015, 09:27 AM
 
12,407 posts, read 9,256,888 times
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Quote:
Originally Posted by Davis1011 View Post
Thanks all for your input. I am going to look into an ARM loan. This might work out well because when we sell our California home in 1-2 years, we most likely will pay off this new home with the proceeds. Will also try to find a bank or CU that portfolios their loans. May have better luck this way. Thanks.
Don't forget to check for prepayment penalties...
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