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how can I get a mortgage refinanced at the lower rates when most of my income is from investments

I have excellent credit but FHA will not consider my income on investments, which is the majority of my income now that I am retired
  • October 12 2011 - US
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Answers (3)

The type of investment income is important.  In addition to averaging the income distributions reflected on your federal tax returns for the past two years, underwriting will need to see that your year-to-date income distributions from these investments are on pace with your prior two year trend.  Of course, an upward (increasing income) trend is most desirable to an underwriter. Lastly, selling stocks/mutual funds would be easier to prove than receiving dividend income.

  • October 29 2011
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I have the same reaction Mark Gelbman had.  Who told you you could not use investment income for an FHA loan?
Be prepared to document 2 years hisrory of income from your investments (1099s, tax returns) and/or satisfy the lender you have sufficient assets to genenate the investment income you need to qualify.

Keep in mind that lenders will average your investment income over the previous 2 years (based on your income tax returns) to determine what level of investment income they will use to qualify you.

Good luck.


  • October 28 2011
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In order to use income from investments, you need to show a history of receipt. The lender will require 2 years tax returns and copies of the investment statements to show the income being generated. If you have not been receiving the investment income for 2 years, then you will need to show that the income being generated is guaranteed to stay at or exceed the current level. I am not sure why you were told that FHA will not use investment income.
  • October 12 2011
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