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As someone else pointed out, Social Security has nothing to do with RMDs, which are required minimum distributions from an IRA, 401(k) account, 403(b) account, or something similar. So your first post in this thread has nothing to do with the title question of, "Do RMDs count when qualifying for a mortgage?"
Karen is spot on. But to answer the question in the title, yes, RMD's can be used to qualify for a mortgage. When we qualified for our current mortgage, RMD's were the ONLY income we had.
An IRA/401k balance can be used as an income qualifier for those over 59 1/2. The lender will take 70% of the balance, less the closing costs of the mortgage, divided by 360 to determine a monthly income amount to be included for qualifying.
Yes, RMD's count when qualifying for a Mortgage. The rule of thumb is that you can borrow up to 85% of the value of a home, minus your mortgage, so long as your total debt doesn’t exceed 43% of your annual income. However, this may vary depending on the lender. Your RMD's will be included in your annual income calculation.
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