We’ve expanded our approach to the three-year continuance requirement for distribution income.
Meeting the 3-Year Continuance Requirement
When a borrower uses distributions from a retirement account, we must verify that the account has sufficient funds to continue payments for at least 36 months. But what happens when the primary account doesn’t show enough remaining funds?
If the borrower’s main retirement account falls short of meeting the three-year continuance requirement, we will now consider additional retirement or similar accounts to bridge the gap. As long as the combined balances demonstrate that the borrower has sufficient funds to sustain payments for the next 36 months, the income may be considered eligible.
To use retirement distributions as qualifying income:
- At least one fixed payment must already be made to the borrower.
- This ensures that the income is stable, consistent, and likely to continue.
This expanded approach gives borrowers more financing options and greater opportunity to qualify, especially those who maintain multiple retirement accounts or diversified investment portfolios.
If you have questions about using retirement distributions to qualify for a mortgage, our team is here to help. Contact us today and let us guide you through your financing options.
