The washingtonpost informs MHProNews seniors whose income does not qualify them for a mortgage or refinancing a home under current tight credit, may now have more income for purposes of underwriting: Due to a rule change by the top home lenders, borrowers may now use retirement assets to improve their debt ratio. Under mortgage giant Freddie Mac’s formula, the total amount of retirement assets is discounted by 70 percent to allow for market swings, then that number is multiplied by 360 (30 years X 12 months) to arrive at 30 years worth of monthly payments. This monthly number can then be considered income towards the house without even tapping the assets, as long as they are accessible. The revision is targeted at the baby-boomer generation entering retirement for the next 18 years at the rate of 8-10,000 a day.
