Liquidating Investments for Income for FHA

Flash in the pan Joined: 22 Jul 2008 Posts: 70

Long Story Short...

Client has +$200K in stocks and bonds, but her SSI & Int/Div income will not qualify her. Anyone know if there is a specific guideline regarding this in Allregs? I had her good to go conventional w/ 80% dn, but her "Investment Advisor" convinced her to go w/ FHA because he didnt want her to withdraw 20% dn pmt from her investments...

Dud? Joined: 01 Jan 1970 Posts: 8

Your query doesn't give enough info for an answer. What is the purchase price? What is the interest rate? What does she owe to other people? Is the SSI income permanent or temporary? Are you going for a 30 year term or a 15 year loan? Is it a condo or an SFR? What are the taxes and insurance? Those are the questions the underwriter will ask. Asking only if you can liquidate assets takes one very small part of the puzzle and says "can I build a bridge out of this?" Come on, give us all of the pieces.