Just Approved: COVID-19 complicates financing for retired homebuyers
Mortgage broker: Shawn Sidhu, C2 Financial Corporation.
Property type: Single family residence in Poway.
Appraised value: $1.595 million.
Loan amount: $628,000,
Loan-to-value: 39%.
Loan: 30-year fixed.
Rate: 3.875% no points with a lender credit towards closing costs.
Backstory: My borrowers sold their home in San Jose and went into contract on a home in Poway to be closer to their children and grandchildren. They have been retired for a couple of years and reaped substantial proceeds from the sale of their former residence.
However, their asset investment portfolios in regards to retirement income derived from mutual funds and stocks have taken a hit because of COVID-19.
This proved to be challenging from an income qualification standpoint. Fortunately, we were able to go the asset depletion route. This came in handy and we’re able to close on this purchase even through our current environment. On a positive note, we achieved a debt-to-income ratio right under 50%, which is allowable.
Shawn Sidhu, C2 Financial Corporation, 408-610-8011, shawn@shawnsidhuteam.com.