My dad is interrested in moving here and his only source of income in is his retirement. Will he be qualified to get a loan. He own his home which

Asked by Kandeed, Maricopa, AZ Tue Jul 17, 2012

is paid in full but if he finds a home prior to selling his home will they consider his loan?

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Loren Hoboy, Agent, Phoenix, AZ
Tue Jul 17, 2012
The answer is maybe yes.
When I have these situations my clients have had the best results using
Roswell (Ros) Moore
Sun West Mortgage
(480) 422-5095
They seem to have more loan programs to chose from without a lot of extra requirements (lender overlays).

Dad can use retirement income, or any other type of income. He may be able to use cash reserves to generate an income stream to meet cash flow requirements.

If the debt to income ratio works out, he can buy this as a 2nd home until his primary residence sells. He will probably need to put down 10-20%. Give Ros a call to explore your options.

Loren Hoboy-Realtor
Central AZ Real Estate
Your Local Expert
0 votes
Bill Wasowicz, Agent, Maricopa, AZ
Tue Jul 17, 2012
Tim is correct. Living on a retirement income does not rule out him qualifying for a loan and owning a home will definitely help. I would recommend that he contact a mortgage broker(s) and they can give him an answer pretty quick. If you or he do not know one, I would be happy to forward a few names to you.

Patti and I have lived in Maricopa for 10 years and ONLY deal with this area so when he is ready to purchase I would appreciate the chance to find him a home.
0 votes
Bill Parker,…, , Scottsdale, AZ
Tue Jul 17, 2012
Hi Kandeed:

As indicated by Tim, in the first answer, no one can tell you if he will be qualified based on what you have told us.

However, I think your real questions are:

1. Can he use his retirement income to qualify for a loan? Absolutely.

2. Can he buy a new home before selling his current home? If he qualifies, Yes. The lender will want to be able to prove he is in the process of selling (current home listed on MLS, etc.) to consider the new home his primary, or they may just treat the new home as a second home. The lender will most likely include his current home's expenses in his debt ratio--real estate taxes, homeowners insurance premiums, HOA dues, if any, etc.

I hope this helps. Anything else?

Bill Parker
NMLS 223607
0 votes
Tim Moore, Agent, Kitty Hawk, NC
Tue Jul 17, 2012
No way we can know that based on the limited amount of information you gave us. What is his income, what price house would he buy etc. He needs to speak to a lender and found out from them.
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