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jlgyork
308 Posts |
 Posted - 05/12/2008 : 11:19:12 AM
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| I have a customer that is moving to VA from Florida, and is looking to purchase a home. He retired as a Dr., about 3 years ago, and reinvested his pension into some other fund. He has no actual job-related income, but has about $1.2 million in assets, where he lives off of the dividends. What would be the best way to show income, or list it on a 1003 to run it through DU. They have excellent credit, 783, and no bills. Just looking at a conforming loan amount. Looking for suggestions. |
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Cliff_Auerswald
450 Posts |
Posted - 05/13/2008 : 08:52:28 AM
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| Purchase the home with a reverse mortgage, and he will have no mortgage payments for LIFE |
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ski2313
750 Posts |
Posted - 05/13/2008 : 08:58:14 AM
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Or find a lender that does manual conforming underwrites that knows what "asset depletion" is.
Let's say out of that 1.2M in assets you need 100k to put down on the house. That leaves you with 1.1M. With the asset depletion income, you take the remaining assets and essentially use it as income. The formula to calculate the monthly is assets/120.
1.1M gives you $9,166 in usable conforming, monthly income. DU/LP aren't coded as such, but there are a few lenders out there that will allow it in exactly the manner that I described. It's a manual UW only.
BofA was the best at it, and I believe Chase also UW's this way. Talk to an UW supervisor prior to submission to make sure.
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