No Qualifying Income?
Consider an Asset Based Loan
That Needs No Income
This situation doesn't come along often. But I had a recently-retired couple contact me for assistance on a Refinance loan. They also hoped to buy another property.
The problem that arose was: They had no ability to show sufficient current income. Well, at least in the traditional sense.
But the good news for this couple was: There's a Mortgage loan option available to them.
Now I know that this reading this will set some alarms off. But the Mortgage loan option I refer to should not be confused with the "No Doc" or "Stated Income" loans that were offered in the early 2000's.
The Mortgage loan option I speak of is unique to Freddie Mac guidelines (Conventional Loans) ... and allows a Borrower with sufficient and particular assets to qualify for a mortgage.
However, several SPECIFIC qualified types of funds, investments, or retirement accounts must be factored in to qualify. AND the asset(s) does NOT have to be "pledged" or "reserved".
Typically the first questions I hear at this point are:
- Why not just pay cash for the property?
- Why not pay off the existing loan with these same assets?
- What are the advantages to me to use this Mortgage option?
An experienced, informed Lender will assess all the information provided them and help their client ascertain which action makes best sense for them financially personally. Both in the short and long term.
Presently, with interest rates near an all-time low ... and alternative investment options performing at higher yields, borrowing often makes sense. The benefits of maintaining cash and investments can outweigh the costs of borrowing.
In the case of my retiree couple, this was definitely the case. After analysis, my advice was, "Don't deplete your assets. Borrow the money".
Again, a thorough analysis and cost assessment must be performed to arrive at the best personal financial option for each individual client(s). There are no hard and fast rules or advice to be provided regarding the wisdom of utilizing this Mortgage option.
But it's good to be aware and knowledgeable about the options that exist. Common-sense options. "Out-of-the-box" solutions are increasingly available that truly benefit the Borrower and their financial standing greatly.
Contact me to discover if this option would benefit you and your finances today ...
* Hoping to Buy, Build, or Refinance a home in the greater Chicagoland area? Contact Me today! I'll put my 37 years of Mortgage experience and expertise hard to work on your behalf.
I'm easily found at:
Gene Mundt, Mortgage Lender, a Lender with 37 years of mortgage experience, will offer you exemplary mortgage service and advice when seeking:
Conventional, FHA, VA, Jumbo, USDA, and Portfolio Loans in Chicago and the greater Chicagoland region, including:
The Lincoln-Way Area, Will County, (New Lenox, Frankfort, Mokena, Manhattan, Joliet, Shorewood, Crest Hill, Plainfield, Bolingbrook, Romeoville, Naperville, etc.), DuPage County, the City of Chicago, Cook County, and elsewhere within IL.
Referrals are Always Appreciated!