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Older buyer with low income, but high assets….No Problem….and some other news from the mortgage world

Over the past decade, many older buyer clients have been challenged when trying to qualify for a mortgage as they are living on fixed income, but often have significant assets. Often, these buyers could pay cash out right for a property, but do not want to liquidate a substantial amount of assets in order to buy their new home. Freddie Mac has recently updated their guidelines now allowing for “asset-based income” to be used. The requirements and calculations are quite easy. The buyer must be age 62 or older, all assets (less funds needed to close) are added and the sum divided by 360. That figure is then used as additional qualifying income. This can help more older buyers get qualified!

Additionally, both Fannie Mae and Freddie Mac have increased their debt ratio thresholds to 50% (old guideline was 45%) without necessarily requiring compensating reserve funds. This change can help a lot more buyers of all ages qualify for a Conventional mortgage. This guideline carries over to the HomeReady program as well!

Please contact me if I can be of service to you or your buyer clients.


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Jeremy always gets the job done well and on time without worry and stress. - Sally Chaplin

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Zillow reviews

5 stars on 8/14/2018

If we had to pick one word to summarize our experience with Jeremy & A Plus Mortgage Solutions it would be Impressive. Jeremy is very knowledgeable, professional, responsive, and highly respected in the service his company provides. Jeremy was referred to us and assisted us throughout the purchase of our first home. He presented all information clear and straight forward so that it was easy to understand in the decision making process. We feel very lucky to have worked with Jeremy and greatly appreciate his help in making the process of buying our first home such a smooth experience.

5 stars on 8/3/2018

Jeremy came recommended to us from our Agent and we couldn't be happier with the recommendation. The application process with simple, communications were timely, and Jeremy was very approachable and easy to work with. I would highly recommend to anyone, especially first-time buyers or those who need a little extra help navigating the mortgage lending process.

5 stars on 7/30/2018

Recently we purchased our 3rd home. Jeremy J. McMichael worked with us on our loan. He was extremely helpful in us getting a loan to purchase this home. He was very curteous, kind, professional and answered all our questions in a very timely manner. We would highly recommend him to anyone requiring a mortgage for home purchase. Thanks​ Jeremy for all you did for us!

See all 74 Reviews on Zillow