In fact, lenders cannot discriminate based on age due to regulations such as the Equal Credit Opportunity Act. This means that older adults in their 70s, 80s or beyond can apply for—and obtain—a 30-year mortgage.
Summary: maximum age limits for mortgages
Many lenders impose an age cap at 65 - 70, but will allow the mortgage to continue into retirement if affordability is sufficient. Lender choices become more limited, but some will cap at age 75 and a handful up to 80 if eligibility criteria are met.
Can a 70-Year-Old Get a 30-Year Mortgage? Yes. There is no age limit to a mortgage application. If you have a substantial down payment and a steady income (which can include pension and Social Security payments), you have a good chance of approval regardless of your age.
Age isn't a limiting factor, but your income and mobility may be. If you've built up your savings over the years, you may not want a mortgage, preferring to buy a house outright.
Under the Equal Credit Opportunity Act, lenders can't discriminate against applicants because of their age. As a result, seniors — like people in other age groups — can get mortgages if they meet a lender's approval criteria.
According to some experts, the optimal range for home-ownership is between 10% and 30% of your net worth. Rental properties and passive income: Rental properties are another common and attractive form of real estate.
"If you want to find financial freedom, you need to retire all debt — and yes that includes your mortgage," the personal finance author and co-host of ABC's "Shark Tank" tells CNBC Make It. You should aim to have everything paid off, from student loans to credit card debt, by age 45, O'Leary says.
And, age isn't a determining factor in whether you can repay your mortgage, Michele Albohn, a certified mortgage advisor at Compass Mortgage, says. "There is no reason why a senior cannot apply for a mortgage," Albohn says. "You do not have to prove that you will live 30 years to pay off the mortgage.
The mortgage application process is typically very similar, regardless of your age. The main difference is that as you reach or approach retirement age, mortgage lenders will want to see pension forecasts to assess your ability to repay your mortgage once your regular income stops.
Generally, a creditor such as a lender cannot use your age to make credit decisions. However, there are exceptions to this rule. For example, age can be considered in a valid credit scoring system but it can't disfavor applicants 62 years old or older.
In fact, the Equal Credit Opportunity Act forbids mortgage lenders from discriminating based on age. [1] And 20% of all home buyers in 2023 were at least 68 years old. [2] Some loans even have minimum age requirements for buyers receiving retirement benefits (e.g., Social Security).
The upshot is that if you're over the age of 62, you're almost 30% more likely to get rejected for a standard mortgage.
Borrowers receiving Social Security benefits can use that income to qualify for a mortgage, including Supplemental Security Income (SSI) and Social Security Disability Insurance (SSDI). Lenders will evaluate your gross Social Security benefit because they use your gross income to qualify you for a loan.
Reverse mortgages offer older adults a way to use their home equity to fund their retirement. Anyone seeking a reverse mortgage must get reverse mortgage counseling before taking out a loan. NCOA offers tips and resources for older homeowners to use when considering whether to take out a reverse mortgage.
While it is not impossible to get a loan over the age of 70, it may be more difficult and there may be less choice. This highlights the need to shop around and find deals from a range of providers – as different lenders will have their own lending criteria.
Buying a home after 60 can make sense if you have sufficient monthly income and find an affordable home. In addition, if you're physically capable of maintaining the home or can pay for extra help, homeownership won't become burdensome.
FHA loans. The Federal Housing Administration insures FHA loans, which have less stringent eligibility requirements than conventional loans. Seniors can use their Social Security income to qualify, but they may need to make a larger down payment, usually around 3.5% if their credit score is above 580.
While many older homeowners own their properties free and clear of a mortgage payment, this is not a feasible reality for many seniors. In fact, more than 10.5 million Americans at or over the age of 65 still pay into a forward mortgage loan, according to a study conducted by LendingTree.
But with nearly two-thirds of retirement-age Americans having paid off their mortgages, it means that the average age they have gotten rid of that debt is likely in their early 60s. Stats from 538.com, for example, suggest the age is around 63.
Nearly 40% of retirees, for instance, have a mortgage. And the average mortgage balance is over $100,000, which translates to average annual mortgage payments of $10,000 that will last at least 12 years or more.
Probably 1 in every 20 families have a net worth exceeding $3 Million, but most people's net worth is their homes, cars, boats, and only 10% is in savings, so you would typically have to have a net worth of $30 million, which is 1 in every 1000 families.
The short answer is yes because it's your money. There are no restrictions against using the funds in your account for anything you like but withdrawing funds from a 401(k) before age 59½ will incur a 10% early withdrawal penalty as well as taxes.