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do forlosures older than 20 years ago, and Social Security income, with 20% down preclude me from ge

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April 09 2013 - Peoria
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If you mean an ancient foreclosure by today's standards - not an issue if you have good credit now. The foreclosure will likely never even show up on your credit report. Social Security income - not an issue as long as you qualify for the the mortgage and all other current debt. By the way, I am an Illinois lender.
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April 09 2013
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Dylan, the numbers on my tax liability, at 15%, will be far short of any" annuity"  losses incurred when guaranteed by the Government, and the current administration decides to absorb our 401k balances, for "our benefit".  Sorry there is no trust there from me.  I'm still not sure I will go with a 20% dn. pmt. or ask my lender for a VA, application.  I have only one loan, FHA, request working.
 Many thanks to all who have answered my question.  And since I am looking to buy and relocate to Florida, Tampa,St Pete. area, I am working with a local lender there.  That's how I see it now.
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April 11 2013
Donald,

Though I generally agree with you about the ravenous governments appetite for more revenue and the probability that they will target 401K balances, you will pay a premium for the 401K funds.  Have you run the numbers on this?  

If so, great.  If it's an emotional decision, however likely, I would get some numbers in front of you to make the most informed decision you can.

A solid mortgage professional should be able to look out 5-10 years and tell you what happens if you do liquidate the 401K and if you opt not to.  Again, I am only advocating the analysis be done.  Not a particular result.

Best of luck with it!
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April 10 2013
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Since I am submitting all necessary paper work for my  first lending inquiry the last three years are clear for my creditworthiness.  I was planning on liquidating all or part of my 401k for this transaction.  Down payment and to clear credit debt.  I now have doubts about the security of 401K savings not from ID theft, or something else, but from the most nefarious theif of all our assests,  a never satiated government for more from working Americans.  
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April 10 2013
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As far as the 401K, if you are talking about a scheduled disbursment past the age of retirement, you can use the depleting asset to qualify with some lenders.
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April 10 2013
All lenders in today's market will appreciate your concern.  By today's lending standards, this foreclosure is old news.  The key question will be what do the last three years look like in your credit file.

If you have a current, established credit history, you likely will have to do nothing more to address the old foreclosure than write a quick one paragraph letter of explanation "LOX" about the circumstances.

Lenders are forgiving and guidelines say that if you have put your house in order (no pun intended) since the foreclosure and can document your current strength as a borrower, you should be fine.

Hope this helps.  Happy to answer any more questions you may have.

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April 10 2013
Nice score! See? No worries in that regard! Correct, income from a housemate cannot be used. But SSA is completely acceptable as long as it supports all debt and will continue. Your SSA can also be "grossed up." This gives you a little boost in terms of income if your tax return shows all or a portion as tax free. Not sure what you mean regarding 401K. Perhaps there is a scheduled and recurrent payment on that?
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April 09 2013
Profile picture for DonaldMc Pheeters
Social Security income seems to be a concern for some lenders I've spoken with. Even with a 20% down pmt. and 401k monies, to handle other debt, i'm not confident I can get past the underwriters. Income from a housemate can't count either I suppose unless they are combined. No forclosure was evident on my recent credit report inquiry. score 746
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April 09 2013
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your guess about the cut off portion, was right.  it was "getting a loan now, either VA or FHA?
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April 09 2013
Profile picture for 800lbs In The Room
Your question cut off. Post a reply with the rest of the question.

My guess is the answer is No, it will not preclude you.
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April 09 2013
 
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