First Time Home Buyer: Near Retirement

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InvestorThom
Posts: 17
Joined: Sun May 07, 2017 12:10 pm

First Time Home Buyer: Near Retirement

Post by InvestorThom » Wed Oct 04, 2017 4:52 pm

I've been a life long renter. Early in my career I moved around a lot and later in my career I lived (and am living) in a HCOL area.

I do not want to be a renter in retirement.

My plan is to buy a condo in a more manageable cost of living area.

At this point I do not think I will pay cash, although I will probably put down a hefty down payment. How do mortgage lenders look at first time buyers late in life?

Any advice on what I should be thinking about as it relates to this plan?

Thanks!

123
Posts: 2410
Joined: Fri Oct 12, 2012 3:55 pm

Re: First Time Home Buyer: Near Retirement

Post by 123 » Wed Oct 04, 2017 5:09 pm

Lenders are not supposed to discriminate based on age, however they may discriminate based on stated income and capacity to repay. Accordingly I would buy the property and get any loan involved (close the deal completely) before you retire. This may result in having to cover the costs of two residences for a time if your retirement home is not located in an area convenient to your work.

Most operating procedures used by lenders primarily consider income from work in evaluating capacity to repay. It is just more difficult to establish that there is "income" from a portfolio since the value of the portfolio and the income from it may significantly fluctuate over time. You may find a lender that does that, but the easiest way to get a mortgage loan is based on income from earnings.
The closest helping hand is at the end of your own arm.

rgs92
Posts: 1384
Joined: Mon Mar 02, 2009 8:00 pm

Re: First Time Home Buyer: Near Retirement

Post by rgs92 » Wed Oct 04, 2017 7:28 pm

If you have enough income from Social Security+Pensions+Annuities to support the mortgage+tax+insurance payment (up to around 36% of the gross amount) you are good to go.

There is an earlier thread from a few month ago (that I started) asking if lenders will also consider payments from a nest egg, and the answers were that many lenders do (based on 1/360th each month of 70% of your portfolio as an example).

InvestorThom
Posts: 17
Joined: Sun May 07, 2017 12:10 pm

Re: First Time Home Buyer: Near Retirement

Post by InvestorThom » Wed Oct 04, 2017 9:23 pm

rgs92 wrote:
Wed Oct 04, 2017 7:28 pm
If you have enough income from Social Security+Pensions+Annuities to support the mortgage+tax+insurance payment (up to around 36% of the gross amount) you are good to go.

There is an earlier thread from a few month ago (that I started) asking if lenders will also consider payments from a nest egg, and the answers were that many lenders do (based on 1/360th each month of 70% of your portfolio as an example).
Thanks!

This appears to be the thread:
viewtopic.php?f=2&t=222951&p=3442441#p3442441

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