Tuesday, January 21, 2014 / by Fra Jamir
The ongoing housing recovery is being boosted by some older participants. Builders and developers in particular have found that catering to the 55 segment of the market is good business.
Many retired buyers in Charleston, SC looking to enter the resurgent market will be pleased to learn that getting a loan is still possible, even if their income isn’t all that it used to be. In addition to the Equal Credit Opportunity Act, intended to keep lenders from discriminating on the basis of age, last Saturday the Consumer Financial Protection Bureau (CFPB) issued a bulletin describing new tools which help Freddie Mac lenders evaluate properties—and new guidelines for disclosing that data to borrowers and loan applicants.
Let’s face it: retirees with excellent credit probably owe that to good old-fashioned financial habits (not to mention previously paid-off home loans). That can be a powerful offset to newly-limited income.
The mind-numbingly complex and changing rules governing Freddie Mac lending is just one reason why the guidance of an experienced Charleston mortgage professional is so important. But a simplified overview would highlight the major 2011 Federal Housing Administration (FHA) changes to the guidelines lenders use to qualify borrowers getting a Freddie Mac-sponsored loan. They allowed the factoring in of individual retirement accounts, sales of businesses, and even some lump-sum retirement distributions. To qualify, assets held in retirement accounts had to be fully accessible to the borrower, and early withdrawals needed to be penalized. There were also rules relating to income from non-taxable sources, provenance for social security and pension income, etc.—as well as other guidelines for whether part-time income is considered (it might not be, unless it’s a long-term situation). On the other hand, dividend and interest payment income was usually counted, as was income derived from investment and savings accounts.
In general, the 2011 changes made getting a loan easier for retiring baby boomers, and that’s still the case. It certainly does stand to reason. After all, why wouldn’t reliable retirement income plus a good credit record mean that Charleston area retirees are terrific home loan applicants?
The upshot is that getting a loan for that dream retirement home in Charleston, SC may not be as difficult as you imagined…so why not give me a call to start the pre-qualification process?
Interested in selling your Charleston area home? Visit: www.jeffcookrealestate.com
Interested in buying a Charleston area home? Visit: www.discovercharlestonareahomes.com
Jeff Cook Real Estate