Income checks in Fanny and Freddie. Why, all have to hit?

[Mark Spritz]

So, if we were to use a traditional mortgage route to buy a Rental Property, the underwriter will have to check you income from job, others, as well as credit, amount of money you have and also any assets. Each one of these has their own "calculation" that the underwriter uses to choose whether to fund the loan or to deny it. When it comes to income they have calculations like .40 or .50 of your income has to be more than the housing costs (all your costs). So if I made $5000 a month, then they would look to see if the mortgage, taxes, insurance total no more than $2500 a month, if they use the .50 calculation. What doesn't make sense if that even I had enough cash to buy the property in full, but decide to get a mortgage instead, that they can't just use the cash in the bank amount and not need to use the job income number at all. I mean you have enough cash already for the full price, but you want to leverage anyway. 

Another quick example. Let's say I have $100K in cash, and I want to buy a property that is 50K, and I woulds rather put 12.5K down and get a 37.5K traditional mortgage. But I don't have a job, say I am retired. I would be rejected by the underwriter only because I have no job/income. Even if I have $250K in cash, with that same property I think the underwriter would reject it because $0 monthly job income doesn't pass the .50 calculation.

That doesn't make sense.

Anyone know of a bank/mortgage lender, not a portfolio loan, but a traditional mortgage that would lend to someone that has 2-5X more in cash and assets than the total of the loan amount, but no job income.

Thanks

Mark