Use Your IRA to Qualify for a Home Loan
Leverage your IRA balance as qualifying income — on its own or combined with other income sources. No distributions required. No age restrictions.
$3.5M
Max Loan Amount
90%
Max LTV (Purchase)
620
Min. Credit Score
$2.5M
Max Cash-Out
Overview
How Your Income Is Calculated
Your qualifying income is simply your total IRA balance divided by 36 months. Borrowers 59½ or older use 100% of the IRA balance. Borrowers under 59½ use 90% of the balance, with a 10% early-access discount applied first.
IRA income can stand alone or be stacked with W-2, 1099, bank statement, CPA letter, or other asset income — giving borrowers a flexible path to qualify based on their full financial picture, not just one income stream.
A real-world example: a 1099 borrower qualifies in every way except their DTI is slightly too high. With an IRA balance of $250,000, they can add $6,250 per month in qualifying income using the 100% calculation for borrowers 59½ or older. For borrowers under 59½, after the 10% discount is applied, that figure becomes $5,625 per month. Either way, that additional monthly income is often more than enough to bridge the DTI gap and get to the closing table.
Who This Is For
Who Benefits Most From This Program
Early retirees with healthy portfolios but no W-2 income yet · Self-employed borrowers whose write-offs leave their DTI high on paper · Retirees downsizing or relocating · Investors with significant assets but non-traditional income · Borrowers just shy of qualifying who need to close a small DTI gap · Surviving spouses reestablishing financial independence with inherited retirement assets.
Key Features
What Makes This Program Work
Balance-Based Qualification
Qualify on your IRA balance — not your distribution history. No distributions required to use the program.
No Age Restrictions
Available regardless of age. Borrowers under 59½ use 90% of the balance; 59½ and older use 100%.
Stack with Other Income
Combine IRA income with W-2, 1099, bank statement, CPA letter, or other asset income for maximum qualifying power.
Loans up to $3.5M
Up to 90% LTV on purchases, 80% LTV on cash-out refinances, with cash-out amounts up to $2.5M.
Owner & Non-Owner Occupied
Available for primary residences, second homes, and investment properties — purchases and refinances alike.
Roth & Traditional Eligible
Both traditional and Roth IRA accounts qualify. Multiple IRAs can typically be combined for a larger qualifying balance.
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Requirements
General Qualifications
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Licensed in Oregon & California · NMLS #1498678
Related Programs
Self-Employed Borrower Loans
Qualify using bank statements, P&L, or asset depletion — pair seamlessly with IRA income for borrowers with high write-offs.
Portfolio Lending
In-house loans with flexible underwriting for unique scenarios that fall outside agency guidelines.
Jumbo Loans
For loan amounts above the conforming limit — pair IRA income with jumbo financing on high-value properties.
Refinance
Lower your rate, shorten your term, or take cash out — IRA income qualification works on refinances too.
FAQ
Common Questions
From the Blog
Further Reading
Self-EmployedHow IRA Loans Helped Two Oregon Borrowers Qualify When Tax Returns Couldn't
An IRA loan uses your retirement balance — divided by 36 months — as qualifying income. No distributions required, no age restrictions. Here are two real Oregon scenarios where this program closed the gap: a newly retired Tigard couple buying without triggering taxable distributions, and a recently self-employed Oregon City borrower qualifying without two years of returns.
Self-Employed$195K Taxable vs. $875K Gross: Why Consultants Need Bank Statement Loans
A consultant grossing $875,000 but reporting $195,000 in taxable income loses more than half their purchasing power under conventional underwriting. Bank statement loans close that gap by qualifying on actual deposits — not tax returns. Here’s exactly how the math works and why this is the most important mortgage decision a high-earning consultant will make.
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