Living on investment income. Can we refinance our Jumbo mortgage?

Original Q: We would like to refinance our 6 percent fixed jumbo loan but do not have W2 income. Our assets are well over $2M excluding the value of the home and we have a small amount of self employment income (which apparently doesn't count). We have been living off of cash withdrawals from the money we make on our investments. We have tried just about every resource possible but at the last minute all the lenders seem to be dissatisfied with our source of money, even though we've been living off it for the past five years very successfully. Where can we go to get a refinance?

Answer: Have you talked to your investment advisor (if you have one)? Some firms will make mortgages for clients with different rules than those you'll find in the open market. Also, you might contact private banking departments of some of the major banks who may be able to offer you loans more tailored to your situation. You may be required to have some of your assets on deposit at these firms, and there could even be the tax or income implications of moving assets from one place to another.

Have you contacted your existing mortgage holder? They may or may not be a mortgage lender, but if they are, might be able to offer you something to meet your needs.

Either of these is worth a little investment of time. Obtaining a refinance with your situation would be a challenge in almost any environment (excepting the "no-doc" frenzy which ran through 2006) and present underwriting standards make it more so.

Best of luck,


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