The stock market continues to reach record highs. This is not only good news for your golden years but also good news for potential homebuyers.
Under Freddie Mac guidelines, Individual Retirement Accounts and 401(k)s, lump-sum retirement account distributions, or the proceeds from the sale of a borrower's business can be used to determine a borrower's eligibility for a mortgage. So retiring Baby Boomers and other savvy homebuyers who have limited incomes but substantial financial assets can use them to qualify for a low-rate mortgage.
We have also long allowed lenders to use income from dividends, interest payments, trust distributions and Social Security income to calculate a borrower's qualifying income.
To find out more about buying a home, visit My Home by Freddie Mac® for information and resources to get you started.