Post by littlemermaid on Jan 30, 2015 10:52:51 GMT -5
We have this..We set up trusts with an estate planning attorney. We set up trusts, wills, etc all at once. Then all your bank accounts, assets..etc can be renamed under that trust name. Sometimes the attorney will take care of having your house deed reregistered under the trust names. Then you can set up a monthly withdrawal with your investment company to directly deposit that amount in whatever bank account you designate.
We have this..We set up trusts with an estate planning attorney. We set up trusts, wills, etc all at once. Then all your bank accounts, assets..etc can be renamed under that trust name. Sometimes the attorney will take care of having your house deed reregistered under the trust names. Then you can set up a monthly withdrawal with your investment company to directly deposit that amount in whatever bank account you designate.
If you have the time, getting your titles and deeds moved in to the trust yourself will save you money. If you have the attorney do it then they, of course, will bill you for it. You can save a lot of money doing this legwork yourself.
We have a lump sum of money that would only be used for housing expenses such as taxes, major repairs, and even PITI payments. However, the bank, to finance the rest of the home, would want irrevocable to use it in our DTI ratio as income. If we could easily revoke it, then they have risk that we wouldn't have that income and without that income, our DTI is high.
Our other option is to put the money in an annuity, but that just seems like a bad deal as we'd lose a lot of the potential gains.
Why don't you just use that money to up your downpayment to an amount that the bank is comfortable with?
We have a lump sum of money that would only be used for housing expenses such as taxes, major repairs, and even PITI payments. However, the bank, to finance the rest of the home, would want irrevocable to use it in our DTI ratio as income. If we could easily revoke it, then they have risk that we wouldn't have that income and without that income, our DTI is high.
Our other option is to put the money in an annuity, but that just seems like a bad deal as we'd lose a lot of the potential gains.
Why don't you just use that money to up your downpayment to an amount that the bank is comfortable with?
I guess the theory is that if the investment income is taxable, at current interest & tax rates you're better off with financing. But that's in theory.
We have a significant portion of our income that isn't being counted in our DTI ratio, mainly because it's not 2 years in the making (we also have rental income that's not being counted). I am a SAHM (mostly, I do work PT for fun money but that's not being counted either), and we don't want the money tied up into equity. We have another lump sum of money that is already tied up in equity that we won't be able to touch for a couple years. So, in the meantime, we want this money to sit with us. However, our bank is willing to loan to us since we are sitting on plenty of cash for the purchase, but they can only do so much if they can't get our loan amt pushed through fannie/freddie because of the DTI. To get it recognized, it has to be considered "income" and that would come in as annuity or trust. We still wouldn't have to use the income from the trust, (we could just throw it right back into our savings, which is what we're planning)