Retired and Getting a Loan - Possible?
I'll be "retiring" to flip full time starting in August. I'll be moving to a new area (from Florida to Tennessee), and would much rather purchase a home than rent. Say I found a home I like for $200,000. Would a bank be willing to lend money if I were to put down $100,000, a 50% LTV? I'd kind of like to go with a conventional loan, because I want the lowest rate possible.(My current home is FHA financed and I don't think I can have two FHA loans, can I?)
It's the income piece that is stumping me. I have enough money in my solo 401k to retire now but how much is enough? Do I have to be able to pull $2,000, $3,000 or more out of my 401k for the entire term of the loan? I'll be collecting about $1800 in SS but not for another 3 years (I'm 59 1/2 now) .
Any other financing options I might have? Just can't stand the thought of renting at this stage of my life.
Oh almost forgot. I have a 720-ish credit score and no debt besides my home here in Florida, which I will be keeping as a rental. That will pretty much be a wash, but this area is booming, and I want to keep the property for equity buildup/appreciation purposes.
Thanks