Did you know that you can use your financial assets to qualify for a conforming, conventional mortgage? Under Freddie Mac guidelines, Individual Retirement Accounts and 401(k)s, lump-sum retirement account distributions, or the proceeds from the sale of a borrower’s business can be used to determine a borrower’s eligibility for a mortgage.
This is good news for retiring Baby Boomers and other savvy homebuyers who have limited incomes but substantial financial assets in helping to qualify them for a low-rate mortgage.
And we have also long allowed lenders to use income from dividends, interest payments, trust distributions and Social Security income to calculate a borrower’s qualifying income.
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