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Personal Finances / Buying or Selling a Home


Subject:  Re: Mortgage Date:  9/28/2019  10:20 PM
Author:  aj485 Number:  129252 of 129280

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

Seconds and investment properties are only allowed if you find a creditor who is willing to make non-qualified mortgages. And, of course, those mortgages will probably be at a higher rate.

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.

Again, only for non-qualified mortgages. Qualified mortgages have a specific formula that must be followed for asset-based mortgages:

Qualifying Income from assets = (70% of 'available assets' - down payment/closing costs)/360, where 'available assets' are assets not being used to produce other income that's being counted toward qualifying income, and the assets can be withdrawn without penalties - so it helps if you're over 59 1/2

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.

As long as the mortgage is made within 90 days of the initial purchase, it's still considered an acquisition mortgage, not a cash-out mortgage. If it's been longer than 90 days, it would be considered a cash-out mortgage, which would not be a qualifying mortgage. So again, you would have to find a lender who was willing to make non-qualifying mortgages. So I guess the company you work for makes non-qualifying mortgages?

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