“She was lucid, understood what she was doing and just wanted to help out a family member some cash out of her home, and had the income to qualify and the equity in the home - she owned it free and clear. “I once did a 30-year mortgage for a 97-year-old woman,” says Becker. “They must have the capacity to repay the loan - that is, have the income and assets to qualify. “The same underwriting guidelines apply to retirees and seniors as does to everyone else,” says Michael Becker, branch manager and loan originator at Sierra Pacific Mortgage in Lutherville, Maryland. The information is supposed to be confidential and not used as a criterion to approve or deny the applicant. Still, lenders can ask your age on mortgage applications, but only for the purpose of gathering demographic data, as specified by the Home Mortgage Disclosure Act (HMDA). It’s one of the protected categories specified by the Equal Credit Opportunity Act, which makes it unlawful to discriminate against a credit applicant because of age (along with race, religion, national origin, sex and marital status). When it comes to getting a home loan, mortgage lenders look at many factors to decide whether a borrower is qualified - but age isn’t one of them. The worst states to retire include Alaska, California and New York. Delaware, West Virginia, Missouri and Mississippi also rank highly. 1 best state to retire to in 2023, according to a Bankrate study. Thirty-five percent of baby boomers report that paying rent or a mortgage negatively impacts their mental health, according to a Bankrate survey. They also account for the biggest cohort of homebuyers, at 39 percent. Census Bureau.īaby boomers carry an average of $189,155 in mortgage debt - the second-lowest balance, behind the Silent Generation, according to 2022 data from Experian.Īt 52 percent, baby boomers account for the largest generation of home sellers, according to the National Association of Realtors. Key statisticsĪpproximately 16.8 million households headed by someone age 55 or older have a mortgage, according to 2021 data from the U.S. Here’s what to know about getting a mortgage as a senior. Although the current housing market isn’t the best for buyers - with prices and mortgage rates rising - waiting for it to change isn’t an option for some older house-hunters. We often think of homebuyers as younger, but retirees and senior citizens have plenty of reasons to make a purchase, too.
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