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interesting about the issues getting a loan in retirement. did assets in everyones case easily exceed the loan amounts?
My sister has 1.5 mil in assets not counting the house. She wanted to refinance a HELOC whose draw period is up next year.
She hasn't applied to anyone yet, but her friend who just retired from 20 years as a mortgage broker told her it would likely be impossible as she has no income.
She's somewhat afraid to discuss with the holder of the HELOC, worried they might call the mortgage if they realize this.
We're still working on this, but I haven't been able to figure it out other than give her the mortgage myself. And, we are only talking $50,000.
Almost all loans are structured to be sold so you have to hit all the boxes to qualify (they really don't do underwriting like in the past). Proof that you have set up regular payments from your retirement account will meet the income requirement. We were refused a mortgage as I moved funds when I felt it was required but as soon as I setup payment initiated by the brokerage we qualified without problem (filled in a different box).
Almost all loans are structured to be sold so you have to hit all the boxes to qualify (they really don't do underwriting like in the past). Proof that you have set up regular payments from your retirement account will meet the income requirement. We were refused a mortgage as I moved funds when I felt it was required but as soon as I setup payment initiated by the brokerage we qualified without problem (filled in a different box).
I am assuming though that you have to set up payments to meet their debt to income ratios whether you need that amount or not. Not just the amount needed for monthly payments on the mortgage correct?
Wouldn't it be smart to have all this in play then before you retire? It seems fairly doable to play the game at 63 and retire at 65, for instance.
That's what we did, bought the second house before we retired. But, there is a lot of expense and hassle carrying/maintaining two homes(especially if they are in different states) if you cant time everything to close right before you are ready to retire.
interesting about the issues getting a loan in retirement. did assets in everyones case easily exceed the loan amounts?
Not about a home mortgage but we discovered this was true on a car loan. Due to circumstances we needed to be a cosign on our DIL car loan. They can only have one name as cosign and despite our assets, my DH could not be it since he doesn't have an income, hasn't started drawing SS. I ended up as the cosign a as I have the pension income. Had never realized it before.
My sister has 1.5 mil in assets not counting the house. She wanted to refinance a HELOC whose draw period is up next year.
She hasn't applied to anyone yet, but her friend who just retired from 20 years as a mortgage broker told her it would likely be impossible as she has no income.
She's somewhat afraid to discuss with the holder of the HELOC, worried they might call the mortgage if they realize this.
We're still working on this, but I haven't been able to figure it out other than give her the mortgage myself. And, we are only talking $50,000.
At least she can afford to just pay it off if need be...
I don't understand why you would want a mortgage if you can pay cash. You will pay way more in interest than you will be able to deduct from your income taxes. It is really better to pay cash.
many can invest the money at 2x mortgages today. in fact given some time you will see cd's earning 1 to 2x the mortgage rates.
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Yes, there are asset based programs
