A CPA I just spoke to suggested that before pursuing the more creative options I contacted him about I should see if I could locate an asset-based loan secured by my recently inherited IRA, which has $100k more in it than I need to payoff a hard money loan I want to payoff, asap. I emailed both the credit union/lender who holds the 1st mortgage and HELOC and the bank where the IRA is currently located. They both said they can't help. Is this something that can, in fact, be done, and if so, where do I go to find it?
What you are referring to is an Asset Depletion loan.
There are various different guidelines on this, but basically they will take a percentage of the value of the account and divide it by a certain amount of months and that is the amount shown for income on the application. It can be done on conventional loans (Fannie Mae / Freddie Mac) as well as Portfolio loans.
Credit unions wont know how or have access to this kind of loan in most cases. I would contact a mortgage banker or a broker for this kind of loan. Tell them you are looking for an Asset Depletion type of loan, the will know what your talking about or if they don't, go to the next lender!!!
If you need a referral in your area, let me know?
Thanks @Kevin Romines ! I googled that and contacted some lenders. I don’t actually think an asset depletion loan will help us out, but I did see some of those lenders are offering another product that might. I’ve got a couple emails out and calls scheduled so, hopefully, something comes of it. Appreciate the assist!
@Christina L. If I am reading your description correctly there are loan types out there that will lend you X% of your asset. For example, Finance of America will grant a Line of Credit 5x the amount of your assets. Or Chase bank will lend you about 50% of your balance in a loan. There are lots of loan types out there and having one of those loans based on the amount of your assets is possible. Most of those loan types though are designed with a variable interest rate in mind and usually are meant for short term lending. Hope this makes sense how I described everything.