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Personal Finances / Buying or Selling a Home


Subject:  Re: Mortgage Date:  8/6/2019  3:56 PM
Author:  2gifts Number:  129236 of 129280

Thanks. This is very helpful. I am aware of the additional rate and down payment required for rental property (we've had rentals before). It was just the mortgage that we would most likely want that had me unsure.

If the allowable rental income isn't enough income to qualify you for the mortgage, you have to have other documented income. If you have documented dividend/interest income from taxable accounts on your last 2 tax returns, that can be used. If you have income from other rental properties documented on your last 2 tax returns, that will help, too. If your last two tax returns show any self-employment income that will continue, that will also help.

Ok, playing with some numbers, I can see that our taxable dividends plus DH's self-employment income would do it. I'd really prefer not to have to take anything out of the IRAs, and actually find that pretty interesting. You'd think that with more assets in our taxable accounts than in our IRAs that we would be able to say we'd use that vs. creating what is viewed as an income stream by forcing IRA withdrawals. Just seems silly to me, but I realize that if I want a mortgage, I don't get to set the rules.

I'd still be interested in understanding how IP did it, though I think they have a pension which is not something that is applicable to us.
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