Tuesday, May 14, 2013

Freddie Allowing Financial Assets for Qualifying Income on Home Loans

It's been in effect since spring of 2011, so I'm just helping Freddie Mac spread the info with this post!

The rule allows people to leverage financial assets, such as retirement accounts, as qualifying income for home loans.

They must be accessible, not having penalty to withdraw them. They can't already be considered as a source of income either.

Not counted as 100 percent. There is a calculated method. Multiplied by 70 %, reduced by transaction costs such as down payments and closing costs. Then divided by 360 months. That figure is then added to borrower's monthly income!

Ta-Da! 
Don't forget about this extra way
 to strengthen your buying power in this multiple offer market!



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