Z3Dreamer
Thinks s/he gets paid by the post
Want to refinance my mortgage. And maybe put on a line of credit for emergencies.
A year ago, I had one SS payment, rental income (no debt on property) and periodic withdrawals from IRAs, and HSAs. Was told that for rental they used tax return number which includes depreciation and expensing of capital items. A net of zero. I was told that since my IRA withdrawals were not regular for a YEAR, they didn't count. So, even though my credit score was good, I had no income, except SS, and therefore could not borrow.
Yesterday, I found the Fannie Mae standards for what qualifies as income and things must have changed.
First, I changed. The rental was sold and I took back a note receivable. As long as the note is more than one year old and it has at least 3 years to go, the payment I receive each month is income.
Second, retirement assets now qualify! They look at your IRA. They take off 10% because they assume you will need 10% for closing costs. Since you are in stocks and bonds, they only use 70% due to volatility. Then they divide the balance by the life of the loan. 360 months or whatever the term is. That becomes the amount of income you can use to qualify.
If the distribution from your IRA has started, it is qualifies as a pension. The standards do not specify how long it has to be in place. My bank says they use 2 months of receipts. I just set up and received regular payment number one today. One more and I qualify.
Wanted to know if anyone had similar experience as I am somewhat suspect of how the front line customer service rep says they interpret the standards.
If the changes are correct, I am such a great credit risk as compared to the guy a year ago.
A year ago, I had one SS payment, rental income (no debt on property) and periodic withdrawals from IRAs, and HSAs. Was told that for rental they used tax return number which includes depreciation and expensing of capital items. A net of zero. I was told that since my IRA withdrawals were not regular for a YEAR, they didn't count. So, even though my credit score was good, I had no income, except SS, and therefore could not borrow.
Yesterday, I found the Fannie Mae standards for what qualifies as income and things must have changed.
First, I changed. The rental was sold and I took back a note receivable. As long as the note is more than one year old and it has at least 3 years to go, the payment I receive each month is income.
Second, retirement assets now qualify! They look at your IRA. They take off 10% because they assume you will need 10% for closing costs. Since you are in stocks and bonds, they only use 70% due to volatility. Then they divide the balance by the life of the loan. 360 months or whatever the term is. That becomes the amount of income you can use to qualify.
If the distribution from your IRA has started, it is qualifies as a pension. The standards do not specify how long it has to be in place. My bank says they use 2 months of receipts. I just set up and received regular payment number one today. One more and I qualify.
Wanted to know if anyone had similar experience as I am somewhat suspect of how the front line customer service rep says they interpret the standards.
If the changes are correct, I am such a great credit risk as compared to the guy a year ago.