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Old 01-17-2016, 08:22 AM
 
Location: Washington State
18,552 posts, read 9,592,797 times
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Quote:
Originally Posted by FlaLadyB View Post
If you sold the house to your daughter, you no longer own it. The mtg is now debt to you, not income
I paid my mortgage off...then drew up a mortgage for her to pay me.
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Old 01-17-2016, 08:55 AM
 
Location: Phoenix, AZ > Raleigh, NC
15,079 posts, read 19,024,811 times
Reputation: 24192
Quote:
Originally Posted by mathjak107 View Post
it is more a local bank kind of thing or state .
I only contacted national mortgage companies when we got this mortgage in NC. Never used a local bank for any of my mortgages.

But after reading thru this thread, I'm wondering why we found it so easy to get a mortgage using an annual RMD from an IRA as our income. We take the full distribution annually in December of the year following the calculation. This leaves the RMD funds in the tax protected (deferred) IRA for the maximum period of time.

If memory serves, I think I offered a letter from my attorney explaining why I HAD to take the RMD to avoid serious tax consequences. I don't think the lender required it. And yes, the loan was sold the day we closed on the house.

But I'm feeking pretty lucky with my 3.5% 30 year mortgage right now. . .
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Old 01-17-2016, 09:51 AM
 
Location: Port St. Lucie, Florida
4,294 posts, read 6,877,322 times
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Tall Traveler -- my lender said yes, you can use it as long as its on your taxes. Meaning, you aren't just taking the money and not showing it.
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Old 01-17-2016, 10:33 AM
 
Location: Nebraska
1,886 posts, read 2,301,174 times
Reputation: 5327
I refinanced our mortgage while we were both retired. The mortgage broker said that because of our credit score we became preferred borrowers. I asked what was the cut off on the credit score, she said that if our credit score was below 750 that we would not qualify for the better rates and also become open for much more scrutiny and verification of assets and income.

So the answer to the OP was that we did not have any problems refinancing and I would imagine that it would not be any different for a new home purchase.
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Old 01-17-2016, 10:49 AM
 
2,635 posts, read 3,376,812 times
Reputation: 6975
Why not just rent?
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Old 01-17-2016, 10:55 AM
 
Location: Ft Myers, FL
2,593 posts, read 1,291,192 times
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Quote:
Originally Posted by sfcambridge View Post
Why not just rent?
With our available equity, rents would be about twice our mortgage. Plus, ironically, we probably wouldn't qualify for a lease with no income!
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Old 01-17-2016, 12:54 PM
 
Location: Wisconsin
21,541 posts, read 44,028,155 times
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Quote:
Originally Posted by Jkgourmet View Post
I only contacted national mortgage companies when we got this mortgage in NC. Never used a local bank for any of my mortgages.

But after reading thru this thread, I'm wondering why we found it so easy to get a mortgage using an annual RMD from an IRA as our income.
Because that RMD is income and - even though annual - was large enough to meet the income to debt service ratio ratio required by the lender.
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Old 01-17-2016, 01:19 PM
 
Location: WA
5,396 posts, read 21,401,588 times
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There is a lot of discussion about differences by state but over the years I have taken a dozen mortgages (if I count refinances) including two in retirement and have never used an originator that was in state. There may be some regulations by state but I have not noticed them. Have always shopped for the best finance deal across the country without issue.
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Old 01-17-2016, 01:38 PM
 
6,261 posts, read 4,737,090 times
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Quote:
Originally Posted by sfcambridge View Post
Why not just rent?
In many parts of the country, rents are now higher than mortgage costs. Rents keep going up. The cost of a mortgage can be fixed and essentially decreases relative to later inflated costs. For some of us, the mortgage deduction helps reduce taxes. Finally, home ownership builds equity. Renting does not.
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Old 01-17-2016, 04:32 PM
 
29,782 posts, read 34,876,173 times
Reputation: 11705
Quote:
Originally Posted by Ariadne22 View Post
Because that RMD is income and - even though annual - was large enough to meet the income to debt service ratio ratio required by the lender.
There is that and a number of factors at play including credit history and how long you have been managing your withdrawals. It is not just the income to debt service ratio but the ratio of assets to mortgage balance. You are at the mercy of the underwriting department and how they read you and again what they intend to do with the mortgage and how it gets bundled.
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