I hope this information helps! Best Wishes!
It allows for a 100% financing with a pledged LMCU deposit account in lieu of down payment, however the borrower must have 3% of their own money into either closing costs or down payment or a combination of both. While this is limited to $417,000 we can consider Jumbo loans. Fixed rate and ARM's are allowed, minimum pledge amount is 5%. Mortgage insurance is available and required for loans over 80% LTV, however the Credit Union enjoys preferred pricing on PMI to make payments less costly. The minimum credit score is 700 with a DTI of 41%. Borrower must be able to demonstrate 2 months reserves. The Pledge may come from a family member. A 401k or other deferred retirement account is not allowed. The borrower may pledge their own funds also. 680 credit is required in Non-restricted markets, 700 in Tier One restricted markets and not allowed in Tier Two restricted markets. Pricing is identical to non-pledged loans with no premiums added.
For more information :
Roger Danielski, Loan Officer
Lake Michigan Home Mortgage
616-242-9790 x 9275
You can use IRAs to purchase real estate. However, there are some strict limits that you'd have to work around. First, you actually use the IRA money, not just pledge it. However, if any loan is involved, it must be a non-recourse loan. Second, it can't be for your personal use. Investment is fine; personal use or benefit is not allowed. For more information, go to http://www.trustetc.com/ and http://www.securitytrustcompany.com/
However, you might be better off cleaning up your credit and getting your finances in order. You ultimately would be in a better position to buy a new house, and you wouldn't face the threat of having two houses (even though the first one is paid for), and not being able to sell one.
Check with a good financial planner for guidance.
I suggest speaking with a financial planner or your lender to verify the above. I do agree with you not placing your home on the market unless absolutely necessary.