Likely because there are a lot of us in this position, that is, high assets but low income, Freddie Mac, the government sponsored entity that guarantees mortgages, now lets lenders take retirement account assets into consideration when applicants seek to refinance or purchase a home. That is wonderful news for so many 50+ people. Many of us have cut down our working hours, or even totally retired. But we are financially sound and have sufficient funds to buy or refinance a home. Ironically, for those refinancing, it might even lower our expenses, as it did for us. But the way lenders work, it doesn’t appear that way. Or at least it hadn’t. You had to show “Work-related” income to qualify for a mortgage.
This new ruling will help so many people who are either stuck in an old, high-interest rate mortgage that they could refinance at better rates, or buy a new home as they choose to downsize.
Let’s applaud whoever got enlightened at Freddie Mac. And if you are in this boat, look for a lender who uses Freddie Mac as its guarantor. There are 2000+ lenders who work with them so I’m sure you’ll be able to find a good one for you.