Posted on: 18th Nov, 2007 05:55 am
We will be selling our house at the end of 2008 & relocating. We will not be eligible for Social Security for a couple of years & will be using our retirement funds for income.
Hello Fredbarbs,
Lenders will generally not go for such a mortgage. They may not rely only on your retirement funds for the source of income. This might be disappointing for you but this is the truth.
There are other options for you. You may take a down payment assistance and then take a loan from your retirement account for buying the house. For that you will have to keep the house as the collateral for the loan and you will also get tax benefits on the interest that you pay for the loan. The money you get from selling the present home might then be utilized to make the payments towards your loan.
If you have 401k retirement fund, that might help you to get a loan. You will find further information on 401k loan at http://www.mortgagefit.com/401k-403b-loans.html
Have a look at it.
I have a query. Why are you not eligible for the social security income?
Lenders will generally not go for such a mortgage. They may not rely only on your retirement funds for the source of income. This might be disappointing for you but this is the truth.
There are other options for you. You may take a down payment assistance and then take a loan from your retirement account for buying the house. For that you will have to keep the house as the collateral for the loan and you will also get tax benefits on the interest that you pay for the loan. The money you get from selling the present home might then be utilized to make the payments towards your loan.
If you have 401k retirement fund, that might help you to get a loan. You will find further information on 401k loan at http://www.mortgagefit.com/401k-403b-loans.html
Have a look at it.
I have a query. Why are you not eligible for the social security income?
To answer your query: My wife & I will not yet be 62 when we retire, so we will not be able to collect Social Security until then. Thanks for your response.
Hello fredbarbs,
The mortgage world is really tight these days.
Does your retirement account produce income?
There is not enough information to give you beneficial feedback.
How many years until you are 62?
Living off of retirements funds is not the best plan unless it is are substantial.
What are you doing with the proceeds from the home you are buying?
There are possible options for you to consider when buying your next home.
I know you are not 62 as of yet but is it an option to rent until that time?
You can also purchase a home with a reverse mortgage when you turn 62.
I think a overall plan of how, what, and when could be worth the effort
I hope that helps
Tony Golden
The mortgage world is really tight these days.
Does your retirement account produce income?
There is not enough information to give you beneficial feedback.
How many years until you are 62?
Living off of retirements funds is not the best plan unless it is are substantial.
What are you doing with the proceeds from the home you are buying?
There are possible options for you to consider when buying your next home.
I know you are not 62 as of yet but is it an option to rent until that time?
You can also purchase a home with a reverse mortgage when you turn 62.
I think a overall plan of how, what, and when could be worth the effort
I hope that helps
Tony Golden
Your annual income (interest earned) from your retirement funds, whole life insurance and annuities can be used as your income if you have a stable 2 yr history on thouse, if you are fully vested, and if its sufficient for the loan you are looking to recieve. Also if your credit is great ( 700+) you can opt for a No Documentation loan. With a No documentation loan a 25% Downpayment is required and you will get a rate that is about .5%-1% then the current 30yr fixed confoming rates but you can still get a loan. Hope this helps. If you need more info feel free to contact me.
"Lenders will generally not go for such a mortgage. They may not rely only on your retirement funds for the source of income. This might be disappointing for you but this is the truth. "
Why would you say that? It is not true. If you work your whole life, save up, and retire, most lenders will count that as your income. If you can verify the amounts and prove that they will continue it is just like working a regular job.
Let me say it again. Banks love to loan money to retired people with good credit. You have already proven yourself. It is not like you don't work because you don't want to. You have earned it.
Why would you say that? It is not true. If you work your whole life, save up, and retire, most lenders will count that as your income. If you can verify the amounts and prove that they will continue it is just like working a regular job.
Let me say it again. Banks love to loan money to retired people with good credit. You have already proven yourself. It is not like you don't work because you don't want to. You have earned it.
What are your retirement funds? and Where do they come from?
I would just sit down with a repitable mortgage co. and tell them situation. They may only require that you have enough evailable funds to cover your payment until retirement.