+2 votes
asked in Mortgage by
In your Freddie asset depletion post update, if the client is 65 years old in your example, wouldn't it be better to setup an IRA distribution with 3 yrs continuance? Much more income potential than asset depletion method.

1 Answer

+1 vote
answered by (21.5k points)

Thank you for this question!

 

The answer will depend on a few factors. It depends on the structure of your retirement account. Have you already set up distributions? And underwriter typically likes to see a history of distributions being received and proof there is enough in the retirement account that those distributions will continue for at least three years. The distributions need to be the same every month. If you have been taking distributions but they fluctuate, the underwriter will ask for at least a one year average AND proof of continuance for three years. If you have not set up distributions yet, you may want to sooner than later. I would like to get more information from you. What state are you looking to purchase a home in? I want to make sure we can use these new distributions. Please call me on 630-659-7644 or email me directly at mgracz@gustancho.com. We look forward to helping you buying your next home!

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