Using your IRA /401K Income

Augusta Financial Building7/16/19- I hope you are doing well and I hope you had a wonderful weekend.  It was a busy one here and I was happy to come to work and work in peace.  I went to a little retirement gathering for a friend and I never really considered retiring for real.  I am still not considering it, but maybe someday?

Speaking of retirement, we get a lot of clients with retirement money in the form of IRA’s or 401K’s.  These are a great tool to use to qualify for a loan.  Let’s say you have $750,000.00 in your 401K and you are pulling $3000.00 per month from your 401K then I can use $3000.00 per month for your income.  Well, let’s say you want a big house with a big nasty payment and you need to show $15,000.00 in monthly income.  Well, all you have to do is start taking $15,000.00 from your retirement account to qualify for the loan.  When the loan closes you can change that number to whatever you want.  You need to have 36 months of that number in your retirement account at the time of closing and your credit needs to be good…  So this is the way to go if you are self-employed and over 59.5.   I do not suggest that you do this if you have no other income and you just want a nice place to live for a few years.

Interest rates are holding on for dear life at these levels.  Rates could go either way at any time.  Here are rates as of this moment:

  • 30-year fixed conventional 1st Mortgage with 25% down – 3.875% (3.930 APR). Loan amounts up to $484,350.00 = $2277.59
  • 15-year fixed conventional 1st Mortgage with 25% – 3.250% (3.350 APR). Loan amounts up to $484,350.00 = $3403.38
  • 5/1 ARM 1st Mortgage –  25% down – Fixed for 5 years and then becomes variable – 3.250% – (3.2605 APR) Loan amounts up to $3,000,000.00 = $13,056.19
  • 7/1 ARM 1st Mortgage – 25% Fixed for 7 years and then becomes variable – 3.375% – (3.385 APR) Loan amounts up to $3,000,000.00 = $13,262.89
  • 10/1 ARM 1st Mortgage – 25% Fixed for 10 years and then becomes variable – 3.500% – (3.510 APR) Loan amounts up to $3,000.,000.00 = $13,471.34
  • 30-year fixed 1st Mortgage FHA loan 3.50% down – 3.500% (4.914 APR). Loan amounts up to $484,350.00 = $2213.01 + $349.08 PMI = $2562.09
  • 30-year fixed 1st Mortgage VA loan 0% – 3.500% (3.681 APR). Loan amounts up to $484,350.00 = $2174.95
  • 30 Year Fixed rate 1st Mortgage Jumbo Loan 25% down – 4.375% (4.399 APR).  loan amounts up to $3,000,000.00 =14,978.56

All of the above are based on a 740 credit score with 25% down on conventional and Jumbo Loans.  Rates are subject to change without notice, your mileage may vary!

I will be in the office all day and the rest of the week.  My office line is 661-260-2970 and my cell is 661-714-6258.  Have a great day and please let me know if you need anything.