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Currently employed and looking to purchase a home in Washington state... which is a different state from my employment.
How difficult will it be for a retiree to purchase a new home with an annual income of $60,000 ?
We have $60,000 for a down payment, credit scores of 725 - 750, CC debt around $16,000.
Is it better to approach a mortgage in another state while still employed, as a retiree in the prospective state or rent for 6 months and get a feel for the areas of housing that we favor ? (We currently rent for $1450 a month)
My BH is much younger than myself and we have a toddler in tow. She is a RN and waiting for license approval for the state to which we will be moving to.
Will we be able to qualify for a FHA loan once I am retired ?
Do lenders count income for SS child benefits received ?
Thank you for all input and advice in advance... it is truly appreciated as this is new ground for us both.
My understanding from my limited experience, is that your income stream is the most important factor. The lender may take assets into consideration (IRA, Stocks, etc.), but even if they consider these they will be heavily discounted at a fraction of the value.
I am very lucky to have gotten my mortgage a year before being unexpectedly forced into early retirement. My current income stream would not have allowed me to get the mortgage that I did while I was working.
You definitely don’t want to over extend yourself with a mortgage that you can’t support on your retirement income stream, but it will definitely be easier to get a mortgage while you are working and earning a larger income stream.
Currently employed and looking to purchase a home in Washington state... which is a different state from my employment.
How difficult will it be for a retiree to purchase a new home with an annual income of $60,000 ?
We have $60,000 for a down payment, credit scores of 725 - 750, CC debt around $16,000.
Is it better to approach a mortgage in another state while still employed, as a retiree in the prospective state or rent for 6 months and get a feel for the areas of housing that we favor ? (We currently rent for $1450 a month)
My BH is much younger than myself and we have a toddler in tow. She is a RN and waiting for license approval for the state to which we will be moving to.
Will we be able to qualify for a FHA loan once I am retired ?
Do lenders count income for SS child benefits received ?
Thank you for all input and advice in advance... it is truly appreciated as this is new ground for us both.
Yes it's better to rent first and get a feel for the area.
The difficulty factor is how expensive the home is. You are not going to be able to buy a home in Seattle for $1 million with a $60K income.
Really it all comes down to the price of the house you are looking at and your Debt to Income ratio.
You can qualify for any loan if you qualify, it has to do with your income or Social Security and nothing to do with your age, they can not discriminate against you becuase of your age.
I doubt Child SS benefits will count as a loan is usually for 30 years and a kid is an adult at 18. You have to check with the lender.
You should go get a preapproval or prequalification to see where you stand and how much of a home you can afford to buy.
Thank you very much for your helpful responses.
Would it be better to purchase a home now with the investment rate as our income currently is $120,000 combined.
The area we are looking at is in the Clark County area right above Portland and the house purchase would be in the
$300,000 range.
With the mortgage being about the same as our current rental rate here, I don't anticipate any problems with being able
to afford the payment. My BH will be looking for a RN job there when we settle down.
I understand that the rent and mortgage will be factored into the DTI ratio, but outside of the CC debt, we have none as both cars are paid off and I will have healthcare coverage provided by the state I currently reside in for our family.
Thank you very much for your helpful responses.
Would it be better to purchase a home now with the investment rate as our income currently is $120,000 combined. If you do that you would purchase as a Second Home with a 10-15% down payment, but rates on Second Homes are just as good as Primary Residences. Can't go FHA, though, under this scenario.
The area we are looking at is in the Clark County area right above Portland and the house purchase would be in the
$300,000 range. I can see that area from my office.
With the mortgage being about the same as our current rental rate here, I don't anticipate any problems with being able
to afford the payment. My BH will be looking for a RN job there when we settle down.
I understand that the rent and mortgage will be factored into the DTI ratio, but outside of the CC debt, we have none as both cars are paid off and I will have healthcare coverage provided by the state I currently reside in for our family.
Thank you again for taking the time to respond !
Social Security is used as income and you can usually use about 115% of the un-taxes amount for underwriting purposes. Yes you can go FHA if retired, but if one of you has not owned a home in 3 years I'd look at HomeReady or Home Possible, which are non-FHA Low-down payment loans that have friendlier Mortgage Insurance components.
Social Security is used as income and you can usually use about 115% of the un-taxes amount for underwriting purposes. Yes you can go FHA if retired, but if one of you has not owned a home in 3 years I'd look at HomeReady or Home Possible, which are non-FHA Low-down payment loans that have friendlier Mortgage Insurance components.
Thank you Pfhtex for that information and recommendation.
Just so I understand correctly, all SS income will be considered and factored into the DTI equation to influence the ratio ? Even the child care SS benefit that will be received ?
My wife has not owned any property before so that would qualify us for these types of Fannie Mae and Freddie Mac mortgages.... would that be a accurate statement ?
Would your recommendation be to go that route or to purchase now at the investment property rate ?
Any advice you could share can help me understand better which would perhaps be a better option for us at this time.... I understand the choice is still ours to make, but with the knowledge and understanding you have of this industry, a educated guess would be helpful with more education on my part.
Sorry Pfhtex... I did not see your bold answers in the previous post...
Are you located in Portland...?
So a 20% DP is not necessary for the second home scenario..?
Would the 2 aforementioned programs with Fannie and Freddie be available or are those owner occupied programs ?
Thank you very much for your helpful responses.
Would it be better to purchase a home now with the investment rate as our income currently is $120,000 combined.
The area we are looking at is in the Clark County area right above Portland and the house purchase would be in the
$300,000 range.
With the mortgage being about the same as our current rental rate here, I don't anticipate any problems with being able
to afford the payment. My BH will be looking for a RN job there when we settle down.
I understand that the rent and mortgage will be factored into the DTI ratio, but outside of the CC debt, we have none as both cars are paid off and I will have healthcare coverage provided by the state I currently reside in for our family.
Thank you again for taking the time to respond !
Your rent is not factored into the DTI, they may check to make sure you are paying it but that does not have anything to do with the loan unless you are behind in payments or facing eviction.
Your DTI ratio will be your prospective amount of your mortgage including principal, interest, taxes and insurance and MIP and or any HOA fees, plus your minimum payments on revolving outstanding debt such as credit cards, car loans or student debt.
Your rent has nothing to do with your DTI some people are paying 50% of their income on rent alone. That plus their other monthly debts would not qualify them for the same amount house payment as their rent.
Thank you Pfhtex for that information and recommendation.
Just so I understand correctly, all SS income will be considered and factored into the DTI equation to influence the ratio ? Even the child care SS benefit that will be received ?
My wife has not owned any property before so that would qualify us for these types of Fannie Mae and Freddie Mac mortgages.... would that be a accurate statement ?
Would your recommendation be to go that route or to purchase now at the investment property rate ?
Any advice you could share can help me understand better which would perhaps be a better option for us at this time.... I understand the choice is still ours to make, but with the knowledge and understanding you have of this industry, a educated guess would be helpful with more education on my part.
Disabled kids whose parents have limited income may receive SSI, as well. ... Mortgage lenders may use SSI payments intended for kids toward your total qualifying income for the loan, which can help you to get a higher loan amount.
do your own research online and have the info better in case your mortgage lender does not know the rules,. generally 125% of the SS amount which is not taxable is eligible to count as income but that may be up to the lender.
If you go FHA you will have mortgage insurance payments for life if you put less than 10%, if you put 10% or more it's only for 11 years but check the rules as they often change.
Sorry Pfhtex... I did not see your bold answers in the previous post...
Are you located in Portland...?
So a 20% DP is not necessary for the second home scenario..?
Would the 2 aforementioned programs with Fannie and Freddie be available or are those owner occupied programs ?
Thank you for sharing your knowledge with us !
Are you looking for a second home because FHA won't help with that neither will most other federal programs which are for owner occupant.
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