Archive for May, 2013

Loan qualifications for retirees

Many lenders measure income by looking at dividends. Lenders generally want to see a regular annual amount on the tax return paid out over at least the last two years.
As far as part-time work, which some retirees decide to pursue, when the borrower applies for the loan, they need to be able to confirm that they are actually employed at that moment. Once the employment situation has been verified, lenders are likely to include the pay as income, but may still require a two-year work history.
Social Security income is always counted. Borrowers should be aware that Fannie Mae guidelines allow lenders to increase that income by 25 percent if the beneficiary isn’t paying taxes on it.
Some retirees may qualify for a mortgage loan by working with a portfolio lender who does not verify income. The downside to this option is that the interest rates and down payment requirements are higher.
Some lenders qualify income-deficient, asset-rich retirees by using a program known as asset depletion. In this situation, the lender takes a fraction of the borrower’s assets, amortizes it, and applies it as income. Source: The New York Times

Copyright © | Website Admin | Logout | Powered by Realivent Agent and Broker Platform and Wordpress