Struggling to qualify for a mortgage because you don’t have a traditional job? Don’t worry, there are smart, creative ways to get you approved, even without a steady paycheck. Let me break it down for you.
OPTION 1: Asset Depletion
If you’ve built up significant savings or investments, those assets can work for you. Here’s how it works: lenders divide your total assets by a set number of months (usually 84) to calculate a monthly income.
For example:
$8.5M in assets = $101K per month in qualifying income.
This could be plenty to land your dream home.
OPTION 2: IRA Distributions
IRA stands for Individual Retirement Account. It is a type of savings account in the United States designed to help individuals save for retirement with tax advantages. If you’re 59½ or older, you can set up distributions from your IRA to create a steady income stream.
For example:
$2.8M in an IRA spread over 36 months = $77K per month in income.
It’s a great solution for retirees who want to leverage their retirement savings for homeownership.
Real-Life Example
A retired buyer in Rancho Santa Fe wanted to purchase a $4M home with 25% down. They needed $65K in monthly income to qualify, and guess what? Both options worked for them! With $8.5M in assets or $2.8M in an IRA, they had the flexibility to choose the path that suited them best.
Source: OriginPoint
The bottom line? If you’ve got the assets, you’ve got options. Let’s talk about how we can make your homeownership dreams a reality. Reach out today, and We’ll help you explore the best strategy for you!
You can call me at 858-345-0685. We’re here to help you with your home buying or selling journey in San Diego.
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Shirin Rezania Ramos | 858.345.0685 | www.shirinramos.com | Compass, DRE 0203379
