Can Assets be Considered in Payment Calculations for Mortgage?

[Jazzzy]

I've been reading some Freddie Mac guidelines (and probably getting myself more confused!). I may not be understanding it correctly, but there is some discussion about using the value of assets as part of qualifying for a mortgage (dividing by 360, etc.).

How does that work? Say a person has $200,000+ in savings or retirement. Can some of that be considered in your "income" to qualify you for a mortgage?

Some of us have saved a lot and are reluctant to take that all out and put it against a property. Can we keep it in the bank and have it help qualify us for payments?

How does that work?

[ShanetheMortgageMan]

30% down payment required.  Need to be at least 59.5 years old.  70% of the vested amount in the retirement divided by 360 = monthly amount you can use.  It cannot be used for another source of income (such as dividend and interest, etc.).  Not all lenders will permit it though.