No. of Recommendations: 2
Hi Cath,

Unfortunately, the word used in underwriting guidelines is "annuitize."
You linked to a Harney article, not any guidelines.

I will acknowledge that *you* are the deepest, darkest, minutiae-driven guideline QUEEN, dear.... and I am merely nothing but a scrappy back-alley financial pragmatic.... but I've never seen any guidelines calling for the annuitization of assets* to qualify for income.

(* I'll 'asterisk' a caveat to those who want to nigglepit that the treatment of assets *as though* they were income *IS* actually a form of annuitization, given that annuitization can be applied with any choice of distribution factor.... *HOWEVER*... exactly zero lenders offering assets-for-income qualifying terms require either a firm pledge of assets**, nor a locked-in distribution plan on available assets. They simply acknowledge the strength of the documented assets as though they equaled a given amount of external income.)

(** OK... one more footnote; There are wall street firms that will partially or entirely cross-collateralize securities, if transferred to their firm, to borrow higher levels of a mortgage, up to 100% of the home's value... even at super-jumbo levels. ;~)

OK... I'm done ;~)
Dave Donhoff
Leverage Planner
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