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Mason McDuffie Mortgage

Chad Focht with Mason McDuffie Mortgage Video Update - April 13th 2011 This video includes a brand new approval process by Mason McDuffie ...

Fannie and Freddie programs offer options to retirees seeking home loans

It’s a common problem for retirees seeking to refinance or get a new mortgage: After their regular employment earnings stop flowing, their monthly incomes drop. They might have hundreds of thousands of dollars stored away in IRAs or 401(k) plans and other investments, but for mortgage purposes, they don’t have enough monthly income to qualify for the loan they want. They look asset rich, income poor.

In some cases, that impression can create serious problems — even rejections of applications by loan officers who don’t know how to work with pre-retiree and retired applicants.

Take the case of Jim Planey. He’s a retired industrial real estate broker, lives in a home valued around $1 million in Glenview, Illinois, near Chicago, and has accumulated substantial retirement funds after a 40-year career. He and his wife have stellar credit scores in the 800s and decided to refinance their existing mortgage, an adjustable-rate loan that was about to shift to a higher interest rate.

Frozen credit files can slow the mortgage process

Nearly a year after the catastrophic Equifax hack exposed 147 million Americans’ personal and financial data to cybercriminals, consumers are about to get a break — something especially useful for home buyers and owners.

Starting Sept. 21, credit-file “security” freezes will no longer cost you money . For years, you had to pay fees that varied from state to state to enact freezes, which nail down your credit files, rendering them inaccessible not only to crooks but to just about everybody else unless you unfreeze them. In the wake of the Equifax debacle, consumers spent an estimated $1.4 billion on freeze fees, according to researchers.

Congressional legislation this year removed that cost barrier and set some new guidelines for the credit bureaus and consumers, thereby opening the door to much wider use of the tool. This should be good news for home buyers and owners because, on average, they tend to have greater assets and larger numbers of credit accounts to protect than others.