While your assets sit in the account, they are accruing interest, so you're not losing money while it sits there. The company sets up a separate account for the loan. Therefore, on one hand, money is being made on the assets and in another hand, the loan is accruing interest to be paid back. You can then make payments to the loan until paid off just as if you had a regular loan.
Another option is to wipe out any debt that you might have (keeping the accounts open of course) and using your pension to qualify for a loan. If you are open to that idea, then talk to Rodney about qualifying for a home using your pension. A $100,000 house may be attainable if the taxes and insurance are in line and enough down payment is used (credit allowing).
The general answer to that question is no. A mortgage loan is going to require verificaiton of an income stream for you to be able to qualify for a mortgage.
When someone is of retirement age and they are taking regular monthly disbursements from their 401K/IRA, then that monthly amount can often be treated as Qualifying Income. The account balance must contain sufficient funds for the amount to continue for at least 36 months. A two month history of recieving the money is typically required.
An example would be $300,0000 in a 401K and $3,000/month is being withdrawn. That would be acceptabe since at least 36 months remains in the retirement account. Someone with $75,000 in a 401K and taking out $3,000/month would not meet that requirement since they would only have around 25 months remaining, not 36+ as required.
What you cannot have is the $700K in a regualr checking/savings account. The money needs to be from a retirement plan. Income from Capital Gains can sometimes also be used. You would need to document both a 2 year history of receiving it along with documentation that you still have the assets after closing.
If you are looking to purchase a property, working with a knowledgeable and seasoned loan officer is critical in today's market. Getting Pre-Qualified is the only way for you to find out your mortgage options. To get Pre-Qualified for your purchase, you can submit your request online at http://www.rodneymason.com.
Rodney Mason, NMLS #151088
Sr Loan Officer
825 Juniper St NE, Atlanta, GA 30308
Office: (404) 591-2453
Apply Online at http://www.rodneymason.com
Licensed in Alabama & Georgia with over a decade of mortgage lending experience.
Prospect Mortgage offers a full selection of mortgage programs including:
Conventional | FHA | FHA 580-639 FICO | FHA 203K Renovation (Streamline & Consultant) | HomePathÂ® | HomePathÂ® Renovation | HomeStyleÂ® Renovation | VA | USDA | GA Dream | Jumbo Financing.