Florida Retirees Getting a Loan: the Big Picture
The ongoing housing recovery is being boosted by some older participants. Builders and developers in particular have found that catering to the 55+ segment of the market is good business.
Many retired Florida buyers in Cascades Port St Lucie, Stuart, Woodfield Vero Beach, Hutchinson Island or Ponte Vedra Nocatee 55+ new community are looking to enter the resurgent market will be pleased to learn that getting a loan is still possible, even if their income isn’t all that it used to be. In addition to the Equal Credit Opportunity Act, intended to keep lenders from discriminating on the basis of age, last Saturday the Consumer Financial Protection Bureau (CFPB) issued a bulletin describing new tools which help Freddie Mac lenders evaluate properties—and new guidelines for disclosing that data to borrowers and loan applicants.
Let’s face it: retirees with excellent credit probably owe that to good old-fashioned financial habits (not to mention previously paid-off home loans). That can be a powerful offset to newly-limited income.
The mind-numbingly complex and changing rules governing Freddie Mac lending is just one reason why the guidance of an experienced Florida mortgage professional is so important. But a simplified overview would highlight the major 2011 Federal Housing Administration (FHA) changes to the guidelines lenders use to qualify borrowers getting a Freddie Mac-sponsored loan. They allowed the factoring in of individual retirement accounts, sales of businesses, and even some lump-sum retirement distributions. To qualify, assets held in retirement accounts had to be fully accessible to the borrower, and early withdrawals needed to be penalized. There were also rules relating to income from non-taxable sources, provenance for social security and pension income, etc.—as well as other guidelines for whether part-time income is considered (it might not be, unless it’s a long-term situation). On the other hand, dividend and interest payment income was usually counted, as was income derived from investment and savings accounts.
In general, the 2011 changes made getting a loan easier for retiring baby boomers, and that’s still the case. It certainly does stand to reason. After all, why wouldn’t reliable retirement income plus a good credit record mean that Florida retirees are terrific home loan applicants?
The upshot is that getting a loan for that dream retirement home in Cascades Port St Lucie, Stuart, Jensen Beach, Hutchinson Island or Ponte Vedra Nocatee 55+ may not be as difficult as you imagined…so why not give me a call to start the pre-qualification process?
If you’re thinking of buying a Florida home, contact Bold Real Estate Group currently servicing the neighborhoods of Port St Lucie, Palm City, Stuart, Vero Beach, Palm Beach. Having the right Florida Realtor means having a Realtor who is committed to helping you sell your Florida home with the highest level of expertise in your local market. This commitment level has helped Bold Real Estate Group build a remarkable track record of delivering results.
About the Author: Millie Gil has been a successful Licensed Real Estate agent for over 25 years in Florida. Millie is Vice President of Bold Real Estate Group in Stuart. A boutique agency committed to concierge personalized service for discerning buyers, sellers and renters of residential and commercial properties. Millie is fluent in English and Spanish with a strong network of real estate professionals worldwide. Other post by Millie Gil
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