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Personal Finances / Buying or Selling a Home


Subject:  Re: Mortgage Date:  9/29/2019  9:29 AM
Author:  Rayvt Number:  129255 of 129289

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are assets not being used to produce other income that's being counted toward qualifying income, and the assets can be withdrawn without penalties - so it helps if you're over 59 1/2

Does this mean that if someone has available assets that are more than the mortgage that they are qualified?

Don't have to actually be drawing down IRA/401 or any other account to prove the income.

Several years ago when I was doing a refi I showed them my IRA (balance greater than the loan) but they didn't care about that. Impressed, yes. Care about what the prospective withdrawal/income was, no.
What the underwriter wanted to see was confirmation that the broker was directed to distribute $X/mo to me, *and* to see a copy of the check or my checking account statement showing the deposit(s).

So I filled out the withdrawal direction form at the broker, they send me an acknowledgement letter, and they sent me the first check. Which I did not cash. After the loan closed I called the broker and told them I wanted to re-deposit the check since it was within the 60 day rollover cut-off. The broker said, "Naw, you don't need to do that, I can just cancel the withdrawal and you just shred the check."

Things were different & simpler on my refi last month. Guess they are seeing a lot more baby-boomers retiring with large-ish 401K accounts. That first refi, the loan officer had never encountered that situation before. This last time, they were used to it.
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