"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. [But] whether or not a senior should take out a mortgage is an individual decision."
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.
Your age won't be a factor — lenders are prohibited from age discrimination based on the Equal Credit Opportunity Act. But you will need to prove you meet your loan program's minimum mortgage requirements and document your income based on the type of retirement income(s) you receive.
As a matter of law, age is not a factor in mortgage approval. If you meet the requirements for credit (620 minimum) and enough income to support your payments, you should be able to get a mortgage.
The bottom line: It depends on your comfort level with debt. If you feel like you can comfortably make a monthly mortgage payment, whether you're collecting Social Security or living on a fixed income (maybe even a robust one), then taking the home loan may be the right choice.
Yes, there are home loans specifically designed for people on Social Security. These include government-backed options like FHA loan, VA loans and specialized products from private lenders. Reverse mortgages are another option, particularly tailored for seniors.
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. However, the scoring system may favor applicants 62 years or older.
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.
It's a loan that allows homeowners aged 62+ to tap into some of their home equity for additional cash: Without having to sell the home. Without having to make monthly mortgage payments (keeping current with property taxes, insurance, and maintenance required)
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.
Mortgage debt remains uncommon among homeowners age 65-plus relative to their younger counterparts; in fact, the fraction of homeowners age 65-plus who had a mortgage in 2022 (34 percent) was less than half that of homeowners under age 65 (70 percent) 3.
Mortgage guarantor Freddie Mac reports that close to 90% of homeowners opt for a 30-year fixed mortgage. The reason behind the popularity of 30-year mortgages is simple: they typically offer the smallest monthly payment (40-year mortgage loans are rare and aren't backed by traditional lenders).
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.
For applicants over 40, lenders may consider a shorter mortgage term, especially as retirement age approaches. For example, a 45-year-old might be offered a term of 25 or 30 years instead of 35.
Age is a factor
The overall average rejection rate is 17.5 percent. Rejection increases with age across the board with lenders. Around the age of 70, rejection rates accelerate. Relative to race and ethnicity, applicant age plays an equal role in mortgage approval.
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.
Can You Get a Personal Loan on Social Security? You can take out a personal loan while you're receiving Social Security benefits if a lender is willing to give you one. Lenders will want to know that you have enough income to repay the loan, and Social Security benefits count toward that.
The two main types of loans that don't usually require a down payment are VA loans and USDA loans.
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.
You Can Get a 30-year Mortgage at Any Age
Thanks to the Equal Credit Opportunity Act (ECOA), a lender can't discriminate against an applicant due to age, says the Consumer Finance Protection Bureau (CFPB). You could be 99 years old and get a 30-year mortgage as long as you qualify.
Despite laws prohibiting lending discrimination on the basis of age, it can still be challenging for seniors to qualify for financing. In fact, a 2023 working paper out of the Federal Reserve Bank of Philadelphia found the rejection rate on mortgage applications rises steadily as people age.
A senior mortgage is a type of loan that a person takes out to buy a property. It is called "senior" because it has priority over any other loans taken out on the same property.
To qualify you for a mortgage using Social Security income, lenders will verify your income, ensure you meet the loan program's credit score requirements, and check your age and how much Social Security you're bringing in.