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using retirement funds for down payment (fannie mae)

want to know if it's allowed to use my pension funds to qualify for a mortgage and also pay the dow payment. i am still employed but only part time with the pension and significant savings. new income from my part time job is $1200 per month. fico 719 by justingranger6846451 from Chesapeake, Virginia. Jan 21st 2015 Reply


William J Acres (William_Acres)
#2 ranked lender in Arizona - 7,917 contributions

More info would be needed, but in general, if your using depleted assets for income qualifying purposes, then the guidelines state you cannot use the same account for down payment as well.. they need to be separate accounts.. Also, part time income will not be considered unless you have had the job for 2 years or more.. For information directly related to your scenario, you should contact a LOCAL mortgage broker and apply with them. Once they see your complete loan profile, they will be better equipped to advise you properly. Also, by applying with your LOCAL Broker, you have an advantage because he's familiar with local customs and works with many lenders with each one offering a different type of lending program. This is unlike the local bank which typically only has a few lending programs. The more lenders, the more lending options, and the more likely your scenario will be accepted.. Plus, the broker is experienced in seeking out the best loan terms for your particular scenario, and he has lower overhead which typically results in lower rates and fees than most of the larger lenders.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714 WilliamAcres.com

Jan 21st 2015
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Scott Kinne (Skinne)
#30 ranked lender in Virginia - 66 contributions

If you need to use your Pension Income to qualify for the mortgage then you cannot both use it for Income and Assets. Once you use your Pension for the down payment and deplete that account, then no income from that can be used in qualifying you. As for your Part Time job, if this is with the same company and you just limited your hours then you should be ok, provided they can provide you a letter stating the minimum/guaranteed number of hours you have to work each week. IF this is a new job company then you would need the same "Guarantee" letter in order to use that income. However, if this "NEW" part time job is a 2nd job, then you would need to show a history of working 2 jobs for the last 2 years in order to use any income from this 2nd job. More info is truly needed to determine if you would qualify or not. Please call me if you would like to discuss further! Scott Kinne - VP - First Heritage Mortgage (NMLS# 182351) 703-293-6146.

Jan 21st 2015
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Michelle Curtis Loan Originator NMLS 401173 (EmbassyFundingLLC)
#28 ranked lender in New York - 2,236 contributions

Looks like we might have a problem with both the assets and being only employed part time.Does your Debt ratio work? It has to be 45% or less of your income including your proposed mortgage payment for a conventional loan and as much as 55% for an FHA loan. You should sit with a local Broker as he/she will have more programs than retail bank.

Jan 21st 2015
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