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Unread 12-08-2009, 05:22 PM
 
15 posts, read 63,324 times
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Default How do I get a mortgage w/ only social security income?

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Unread 12-08-2009, 05:39 PM
 
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Ask a bank if you can qualify or not, not everyone can right now.
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Unread 12-08-2009, 11:06 PM
 
Location: Colorado Springs, CO
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Quote:
Originally Posted by cwhanes View Post
How do I get a mortgage w/ only social security income?
You can put 90% down. But in truth, you probably shouldn't be able to.

If you're drawing SS because you're age 65+, it also has to be asked what lender in their right mind would make a 30-year (or even a 15-year) mortgage loan to someone at that age...the actuarial probability that someone would live long enough to pay off the mortgage is slim, and the odds that they'd not face medical bills that eat a large part of that SS check along the way is even slimmer. It only makes sense if the borrower has more than enough in the deal to cover any conceivable losses, which right now are still "conceivable" at 60%+. If you're drawing SS disability, you're also a huge risk. Either way, a competent lender has to recognize that the odds of getting the property back in foreclosure are way worse than average, and they're bad across the board right now.

And last, SS was never envisioned to provide a standard of living sufficient to fund purchase of a house on its own. SS is supposed to be a safety net of last resort. Think "dry room to sleep and some Alpo to eat," rather than "a home of my own."
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Unread 12-09-2009, 08:38 AM
 
3,204 posts, read 6,429,091 times
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Social security counts just like any other income. All lenders will use it for qualifying. Contrary to the post above borrowers can qualify for a 30 year fixed rate mortgage at 100 years old or any age. I locked in an interest rate on a 30 year mortgage yesterday for a 71 year old woman.
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Unread 12-09-2009, 08:40 AM
 
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Quote:
Originally Posted by cwhanes View Post
So to answer your question, call a local mortgage lender and tell them you want to see if can qualify for a home loan.
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Unread 12-09-2009, 09:16 AM
 
9,807 posts, read 5,275,528 times
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Quote:
Originally Posted by TimtheGuy View Post
Social security counts just like any other income. All lenders will use it for qualifying. Contrary to the post above borrowers can qualify for a 30 year fixed rate mortgage at 100 years old or any age. I locked in an interest rate on a 30 year mortgage yesterday for a 71 year old woman.
However, even if one was drawing $1600 per month SS, their annual income would be only $ 19,200 per year.

If one is drawing $1200 per month, his annual income is only $14,400 per year.

Are banks making motgages to people who only have a $9.50 per hour job or a $7.00 per hour job?

Remember-------the OP said SS was his only source of income.

By the way, TimtheGuy-----was SS the only income on that 71 year old woman that you gave a 30 year mortgage to ?
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Unread 12-09-2009, 09:31 AM
 
Location: Plano, Texas
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Yes they are. Actually, social security income is probably better than employment income. You can get fired and have no income, but the only way to lose social security is to, well, die.

also, since social security income is not taxed you can gross it up by 25%. That means if the amount they receive is $1000, the lender takes it up to $1250. If you had a W2 job, making $1250 you would end up with about $1000 after taxes, thus the reason it is grossed up.

I have done many loans for clients with only social security income. Additionally, you cannot discriminate based on age. If a 25 year old can get a 30 year fixed, well a 85 year old should be able to as well.
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Unread 12-09-2009, 09:34 AM
 
Location: Providence, RI
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Don't forget that few people ever pay off a 30 yr fixed by living in the house.

Average stay in one house in the US is 7 1/2 years.
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Unread 12-09-2009, 09:42 AM
 
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Quote:
Originally Posted by VictorBurek View Post
Yes they are. Actually, social security income is probably better than employment income. You can get fired and have no income, but the only way to lose social security is to, well, die.

also, since social security income is not taxed you can gross it up by 25%. That means if the amount they receive is $1000, the lender takes it up to $1250. If you had a W2 job, making $1250 you would end up with about $1000 after taxes, thus the reason it is grossed up.

I have done many loans for clients with only social security income. Additionally, you cannot discriminate based on age. If a 25 year old can get a 30 year fixed, well a 85 year old should be able to as well.


----since social security income is not taxed, you can gross it up by 25%--


Do you really believe a person making low wages, buying a house, would be paying-----25%--of his wages in taxes?
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Unread 12-09-2009, 09:47 AM
 
9,807 posts, read 5,275,528 times
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The question shouldn't be ( by the OP ) if he can get a mortgage with only SS as his income, the question should be if he can pay the mortgage payments, property taxes, and upkeep on the house if SS is the only source of income.

That------might be harder than finding the mortgage.
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