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Rather than messing around with things like "Asset Depletion mortgage", a loan processor told me long ago that if you have a steady monthly withdrawal from an IRA they look at that like it was a paycheck. So a couple months before you intend to apply, give your broker instructions to withdraw a certain amount and send it to you monthly.

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, but if so, it was very easy to do. Just sent two months worth of statements for the accounts we wanted to be considered. Super easy.

One caution is that you can't use cash out mortgages for this, so we would have been stuck paying cash had the mortgage not been approved in time. But offering cash no mortgage contingency was the best way to get this house. We were told there were 3 back up offers on the home, hoping for the contract to fall through. It appraised for a decent amount more than we paid and if we had not come in strong right off the bat, there was a very good chance a bidding war would have broken out. Feeling very lucky, though it didn't hurt I knew the market well enough to recognize a good property and good deal when I saw it.

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