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Home Loan Using Annuity as Collateral

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Anonymous
Not applicable

Home Loan Using Annuity as Collateral

House is 120k

Credit score is 640

I can put 20% down

I get an annuity in a few years which is 150k. 

 

I own a small online business but taxes are still breaking even becuase it's a new business, though I still make money every month it's not a lot. I need to see if it's possible to get a home loan under these conditions. If I were to put 20% down and then when I get my annuity put another 20% down, while paying a monthly mortage. 

Message 1 of 4
3 REPLIES 3
NC_Mtg_Loaner
Valued Contributor

Re: Home Loan Using Annuity as Collateral

How long have you been self-employed?  

 

Typically, you need two years of SE history in order to determine if your income qualifies for a mortgage loan.  And that income must support  your being 'qualified' with the ability to repay a traditional mortgage loan.

 

When does the annuity begin? 

IS it a one-lump sum? 

If it's begun you can count it as qualifying income under most circumstances for most loan programs.   Otherwise, if it's still deferred until a future date, you may be stuck without being determined to have that Ability to Repay until then.

 

 

__________________________________________________

Licensed NC Mortgage Loan Originator
Message 2 of 4
Anonymous
Not applicable

Re: Home Loan Using Annuity as Collateral

Thanks for the reply. I've been self employeed since 2013. The annuity is a lump sum of 150k which I will recieve in 3 years. 

 

For self employed, do they guage off of your gross revenue or profit?

Message 3 of 4
JVille
Valued Contributor

Re: Home Loan Using Annuity as Collateral

They will base your income on what you report as Taxable income as reported to the IRS on your tax returns. Your Business Tax Returns will be averaged over 2016 & 2017. If it’s not reported as taxable income then it’s not usable
(net income). The Annuity is simply a nice
compensating factor and nothing more.
Net income NOT Gross Revenue.
Message 4 of 4
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