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Personal Finances / Buying or Selling a Home


Subject:  Re: Mortgage Date:  9/28/2019  9:03 PM
Author:  DrTarr Number:  129251 of 129287

Asset Depletion Mortgages are only allowed for your principal residence.

The properties that are acceptable are up to the creditor. Primary / Second / Investment

Yes, income from IRA distributions work, but we are not looking to draw on IRAs for 10 more years. Our mortgage broker referred to this as an asset based mortgage, so not sure if that is the same as an asset depletion mortgage

This is the same. Asset [Based, Depletion, Dissipation] all names for where the creditor assigns an income stream to the assets you have. Don't have to actually be drawing down IRA/401 or any other account to prove the income. Some creditors will straight up divide the amount by 360, while others will calculate some return. 10 year treasuries or the like.

One caution is that you can't use cash out mortgages for this

Also a creditor choice. If a house is purchased with cash and you need to replenish that investment account, while not in the underwriting guidelines some creditors (company I work for) will allow it if requested.

The reason we do that is just geared for the situation IP was in. Back up offers, bidding, getting the best cash deal... Way to recognize a good deal IP!!!

d(cash is king)/dTarr
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