Creating Income From Retirement

Let’s be real—most Boomers aren’t retiring with pensions these days, but many have solid retirement funds. That means there are plenty of potential homebuyers who may not have much (or any) qualifying income but are still well-capitalized.

Here’s a little-known lending strategy: If a borrower takes just one monthly distribution from their retirement account, we can use it as immediate qualifying income. And yes, this works for low-rate, 30-year fixed Conventional financing.

Example:

A retired buyer wants to purchase a home. Their only steady income is Social Security, but they have $400K in retirement funds.🚀 Just like that, we can structure their loan to show nearly $8,000/month in qualifying income. Suddenly, they go from being unable to qualify to securing excellent Conventional loan terms.

Bonus Perk:

Most retirement plans allow funds to be replenished within 60 days without tax penalties (always confirm with a CPA and retirement provider).

✅ Must be 59.5 years old (unless it’s an inherited retirement account—then there’s no age requirement).

✅ Funds must be from a qualified retirement account.

So, next time you have a buyer in this situation, make sure they know about this strategy. It even works for non-applicant co-signers who want to help someone qualify for a mortgage!