I am newly retired (April of this year). We have a family cottage on a lake that is getting too small for our extended family. We are planning on adding on to it in the spring and I have an architect drawing up plans right now. My single sister-in-law owns half of it and has agreed to pay half of the cost which I wasn't expecting, but she is very close to my children and it will be part of her inheritance to them, as it will be ours.
My question is will I be able to get a mortgage for our half. My sister-in-law hates debt of any kind, so I think she may just pay off her half ($75,000 estimate for half). I would like to finance my part of it. We own our house free and clear (~400,000), a rental property worth about $60,000 and the cottage itself which we only have $35,000 into and it is worth about $125,000. We have no debt at all. Our income right now is $1580 SS. (husbands), $400 pension (husbands), clear $500 from rental house, $600 from basement apt. rental, $1500 husbands small business and a few hundred per month pole barn storage rental. I have taken out less than 2% of my portfolio of 1.3M to supplement our income because we had some large expenses for maintenance on our house.
I am on the ACA now for January, I estimated that we will have $52,000 coming in, so I get a subsidy. I really don't want to go above that, so that is why the mortgage. I am going to pull out more money this year to make sure we have enough to make mortgage payments. I will be on the ACA until Sept 2018, when I turn 65 and will be on medicare. Husband is already on medicare. I am delaying SS until at least 65 or 66, and I took a lump sum retirement because the hospital I worked for was managing the retirement plan and there were a lot of years they were underfunded. It was rolled into and IRA with fidelity.
Should I even get a mortgage? Should I get an equity line of credit on my house or rental? Can I qualify for a mortgage on a 2nd home based on our income, most of it not earned income? These are the questions I have that I'm hoping someone will help me with.
Thanks, Miss Prim