Last week we touched on the topic of seniors and retired people having the ability to qualify for mortgages, even if income is limited and they are on Social Security. There are many options available. We went through some options and ideas last week but some of you have asked for even more ideas. If you ask, we deliver! As you know, we are giving a very brief overview. Please get in touch with us if you would like to work with us one on one to discuss.
Fannie Mae has an option where someone can use their retirement assets to help them qualify for a mortgage. This can be 401(k)s or other types of retirement accounts. If they are using these accounts already, they must be able to prove that the income will be coming in for the next three years on a steady basis. If the person is not using the income, that amount can be included as a stream of income.
Freddie Mac also has some options available when someone has limited income but they may have substantial assets. These options make it possible for IRAs, 401(k)s, other retirement accounts, and money earned from a business sale to qualify for a mortgage. If it is decided to use these options, the borrower must be able to prove that there is no penalty to withdraw the money early.
Another option to qualify for a mortgage is to use investment funds. Most lenders will only use seventy percent of the value of these funds in an effort to qualify for a mortgage. So be sure to keep in mind that the full amount will not be used in the calculation.
We hope that we were able to give you more options and more ideas for helping a loved senior qualify for a mortgage!