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Old 01-23-2015, 11:18 AM
 
Location: Orlando
1,992 posts, read 2,638,622 times
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Quote:
Originally Posted by BellaDL View Post
Did the bank require you to show any sources of regular income like SS, pension, annuities payment?
I really don't recall what they asked us to show them during the application process. However, my husband was receiving SS and a pension. I don't know if the outcome would have been different if we had no income except for SS and withdrawals from savings.

It seems to me that the OP ought to go and ask local banks and credit unions what their income requirements are for a mortgage. I wouldn't take one "no" as a final answer. And I wouldn't try to do this process on line or over the phone; I like face-to-face conversations if at all possible. That's the main reason I dealt with a local bank for my mortgage, although I probably could have gotten a slightly better deal elsewhere.
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Old 01-23-2015, 11:25 AM
 
71,635 posts, read 71,777,271 times
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Quote:
Originally Posted by jrkliny View Post
In order to qualify in NY which is a crazy place for loans, I had to start social security so I had an income in addition to dividends. Assets alone were not enough to qualify. I also opted for a 30% down payment. That might not have been necessary but it further reduced the rate.

I borrowed for a number of reasons. Eventually when I start taking 403b distributions, the mortgage deduction might help with taxes. I borrowed mainly because of the very low 30yr rates. I am making substantially more returns on the money I borrowed. If that stops I can decide to pay off the house. That is very unlikely over the long term. Who knows what rates will be 10 or 20 years from now, but my fixed low rate will not change.
wow interesting they made you start ss. if we buy a co-op i was undecided about whether to take a mortgage or pay cash but i wasn't taking ss yet.

i know they gave my son a mortgage when he was out of work because he had alot of assets since he was a partner in the same business we were.

hiopefully they will loan us on just assets if i go that route.
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Old 01-23-2015, 11:30 AM
Status: "0-0-2 Game On!" (set 3 days ago)
 
Location: The beautiful Rogue Valley, Oregon
7,301 posts, read 15,356,670 times
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Last year, with a FICO score just shy of 800 and half down (plus owning outright a house worth twice the one we were buying), we had a terrible time getting a loan without regular income. Eventually we just set up an IRA withdrawal at the income level they wanted and then show 3 months of steady income at that level and got the loan at an unfavorable rate.

When we finally sold the other house we paid this house off, as I can't imagine any situation in which paying $1,000 a month interest is a good thing - we'd have to get a rate of return (on the proceeds for the sale of the other house) around 12% a year to cover the interest costs plus keep the principal from being eaten away by inflation.
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Old 01-23-2015, 11:34 AM
 
12,705 posts, read 9,978,586 times
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HECM and pay cash for the rest?


http://www.bankrate.com/finance/mort...seniors-1.aspx
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Old 01-23-2015, 11:35 AM
 
71,635 posts, read 71,777,271 times
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Quote:
Originally Posted by PNW-type-gal View Post
Last year, with a FICO score just shy of 800 and half down (plus owning outright a house worth twice the one we were buying), we had a terrible time getting a loan without regular income. Eventually we just set up an IRA withdrawal at the income level they wanted and then show 3 months of steady income at that level and got the loan at an unfavorable rate.

When we finally sold the other house we paid this house off, as I can't imagine any situation in which paying $1,000 a month interest is a good thing - we'd have to get a rate of return (on the proceeds for the sale of the other house) around 12% a year to cover the interest costs plus keep the principal from being eaten away by inflation.
interesting about the issues getting a loan in retirement. did assets in everyones case easily exceed the loan amounts?
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Old 01-23-2015, 12:17 PM
Status: "0-0-2 Game On!" (set 3 days ago)
 
Location: The beautiful Rogue Valley, Oregon
7,301 posts, read 15,356,670 times
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Quote:
Originally Posted by mathjak107 View Post
interesting about the issues getting a loan in retirement. did assets in everyones case easily exceed the loan amounts?
By about 5x - they didn't care about assets at all, they were only interested in established income stream. Most of our assets, though, are in the form of presently non-taxable, which would have meant a huge tax hit to withdraw the entire purchase for an all-cash sale.
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Old 01-23-2015, 12:20 PM
Status: "0-0-2 Game On!" (set 3 days ago)
 
Location: The beautiful Rogue Valley, Oregon
7,301 posts, read 15,356,670 times
Reputation: 9473
Forgot to add - several of the loans offered to us had substantial pre-payment penalties. And the loan we did get was sold 4 times in one year.
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Old 01-23-2015, 12:27 PM
 
527 posts, read 1,091,084 times
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Very common problem.
No income from a job is a red flag.

This is most common when trying to get loan from large multi-national bank

Best chance is apply at a local bank, maybe regional.
and it helps if you allow them to take monthly payment direct from checking acct.
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Old 01-23-2015, 12:55 PM
 
Location: Montana
1,752 posts, read 1,655,917 times
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Take SS for the duration of the loan qualification process, and once the loan closes, suspend receipt of payment until you are ready to start drawing SS for real.

I have a military pension (which is enough income alone to qualify for the size mortgage I am applying for), am still working (for six more months), have a FICO average score of 805, no debt other than a mortgage, and am putting 1/2 down on the house, but it is a construction loan that converts to a mortgage - I am having significant trouble closing the thing!

I have had about 10 mortgages before the housing crash, and they were a PITA, but not overwhelming. I re-financed about two years ago, and I have had less invasive colonoscopies. I can only guess that new banking requirements, since the 2006 meltdown, to meet FANNY/FREDDIE (for mortgage resellability) is driving some of the silliness.
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Old 01-23-2015, 12:56 PM
 
Location: East of Seattle since 1992, originally from SF Bay Area
29,806 posts, read 54,486,657 times
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Whether a job, pension, social security, or part-ownership in a business (with two years profit/loss statements) it's that steady income stream they are looking for. If you want a mortgage and plan to make the payments with the $1,500,000 you have sitting in the bank, they will not approve it because there is no way to know whether you will at some point go out and spend it on a fancy yacht, huge medical bill, or gift it to your heirs. They are not going to take a chance like that. My parents bought in their late 70s with only SS and had no problem, because they had 20% down and the payment was less than 1/3 of their income.
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