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Old 01-16-2016, 06:54 AM
 
Location: Ft Myers, FL
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My wife and I are planning on retiring, moving to FL and buying a home. We’re both 60, so we don’t yet qualify for Social Security. Our assets include equity in our home, a pension, and several IRAs.

However, we are still probably going to need to get a mortgage. As our only regular monthly income will be from my pension until SS kicks in, how do lenders look at ones retirement assets to qualify retirees for a loan?

Do we need to convert some of our IRAs to annuities so we have a steady stream of income?
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Old 01-16-2016, 07:22 AM
 
Location: NC
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In my case, all I needed was a letter from my brokerage saying that I was regularly receiving x amount of dollars monthly from my IRA account. (You might need proof that you are doing this, for example for the past two months before asking for the new loan.) I had enough for the down payment (and closing costs) in cash. Perhaps after you sell your current home you will be able to afford a large down payment?
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Old 01-16-2016, 07:28 AM
 
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in our case (nyc) the banks we went to said they could not say whether the underwriters would approve us taking a mortgage unless i did not delay social security .

even though we have a multiple 7 figure portfolio the company's and institutions that buy the mortgages from the banks have strict income requirements .

they do not accept income under your control for the most part .

they accept pensions ,ss, annuity's , even rental income . but not portfolio generated income .

they said if we can find a bank that does depletion of asset loans then we would be fine .

that is where the cut off 1/2 the value of the portfolio to allow for drops in markets , divide it by 360 and count tha answer as yearly income .

so far we found no local banks do that do depletion of asset loans so if need be we will just pay cash .
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Old 01-16-2016, 08:32 AM
 
29,764 posts, read 34,848,700 times
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For us buying a second home pensions and a just started SS by my wife was more than enough. They approved us before verifying most of our investment assets. They just needed to see enough for the down payment. It depends on your debt ratio along with the mortgage to income ratio and credit score. Per MathJaks pits pension income has value beyond just the raw dollar amount.
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Old 01-16-2016, 08:43 AM
 
6,212 posts, read 4,715,040 times
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I would suspect this varies between lenders and different States. In NY, I was not able to get a mortgage based on assets. End of story, did not matter how much or of what type. I had to start social security and also upped the down payment to 40%. A mere 4 months of waiting and the loan was approved.
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Old 01-16-2016, 08:48 AM
 
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now i don't feel so bad after being told the same at the banks .
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Old 01-16-2016, 08:59 AM
 
Location: Wasilla, AK
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We just closed on a second home and pension income was more than sufficient. We're right at your age, so we also have no SS income. We had absolutely no problems.
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Old 01-16-2016, 09:03 AM
 
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all you need is enough pension income to qualify .

they accept pension , social security , rental and annuity .

but for those of us delaying ss and not much pension income it is an issue if you want a mortgage .
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Old 01-16-2016, 09:14 AM
 
Location: Phoenix, AZ > Raleigh, NC
15,059 posts, read 18,985,577 times
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We qualified easily with a small SS and RMD's that had been distrubuted from one large IRA. And a large down payment with 800+ credit. Coud have done it without the SS if we put down more.

But that was 2013. . .
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Old 01-16-2016, 09:15 AM
 
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it is more a local bank kind of thing or state .
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