There are many different ways to get approved for a loan today. Dodd-Frank legislated there must be an ability-to-repay the loan (as if this needed to be legislated). As a result, lenders took a strict interpretation of this rule. In order to qualify, you had to be a salaried employee, or if self-employed have a positive net income, or a 2 year history of receiving interest and dividends to qualify. If you had enough saved in retirement accounts to pay cash for the house, but you were retired and had no income, you were not able to qualify.
It has been many years since this Act passed. The economy is much stronger today and there is more confidence in the marketplace. Investors of mortgage
loans have become more confident, too, and there are
now more products available.
Today, if you have enough saved to pay cash for the house, but do not have any income, you may be able to qualify under an asset based or asset depletion calculation. This is where the lender uses the assets saved as the basis for an income calculation. There are different calculations used by lenders, but in essence they take a percentage of your assets and treat it as income. Thus, the loan meets the ability-to-repay requirement and complies with Dodd-Frank.
So, if you don’t have a current income stream, but you have sufficient savings, contact us and we can see if you can qualify.
We offer a variety of products and services, ask us how we can assist you today:
Counsel Mortgage Group®, LLC
AZ MB #0909580
CA DBO #60DBO43873
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