Hi, we have an application for a construction loan. I know ATR does not apply for initial construction however we still consider the loan at permanent for cash flow purposes. My problem here is the borrower has retirement, SSI and Investment income that she pulls from each year. With just what is claimed on the 1040's with all other income she does not meet our DTI requirements. She indicated that she can pull more from her investments if she needed to however the disbursements have been the same for the last three years. We can't consider her DTI based off future disbursements correct? Am I over thinking this? Basically wants us to tell her how much she will need in order to qualify.

Thank you in advance!

If she has the assets available to pull from, why would not consider it as long as if what she needed to draw was not going to deplete the balance of the retirement account. Is she not pulling RMDs? I personally would not be counting on much more than that.

So what this is, is a trust account. She is pulling annually but not enough to qualify for this loan. This is why she said she is willing to pull more each year to qualify.

If she is a beneficiary of a trust - she is not pulling. The trustee is disbursing funds to her. Whether or not she is eligible for additional distributions from the trust and whether or not the trustee would agree with it, I think would be simple to find out by obtaining something in writing from the trustee.