Question

Can a 80 plus year old individual obtain a "typical" residential home mortgage-in light of the borrower's age?

Assuming excellent credit credentials, history, scores and so forth.... can a senior citizen obtain a mortgage (a) for 15 to 30 years term (b) a reasonable down payment, say approximately 20%, and (c) the prevailing interest rate? In other words, ARE THERE MATERIAL CONDITIONS DUE TO THE BORROWER'S AGE???

3 years ago - 6 answers

Best Answer

Chosen by Asker

I believe you will find every lender has a max ceiling that they will underwrite a loan for and age is a factor.

No one is writing an 80 year old a 30 year mortgage. I doubt they would write a 15.

Frist condition of a loan is the ability to repay it. A 110 year old guy isn't repaying anything

3 years ago

Other Answers

The older - the better.
If you die, and no one pays the mortgage, they take the home.
What easier way for a bank to make money than that?
You are prime beef to them.
Of course, your income will have to be enough to qualify.
That 20% down will have to be a minimum.

Note: I am sure you know that a mortgage is the last thing a retired person should have.
I am sure this question purely hypothetical...

by Cold - 3 years ago

Yes.

Age is not a consideration.

Income, however, is.

No income = no mortgage.

The problem, so to speak, that a retired person is most likely to have is with with the down payment / income equation. That is, I am assuming that an 80 year old with a $30,000 a year income including social security is looking to qualify for a home mortgage based upon that income ($90,000-ish). Like anyone else, they would have to put any difference down as a down payment...something a retired person is more likely to be able to do.

by MVD34 - 3 years ago

The problem come when the 80 + tries to get mortgage insurance.

by Oldmansea - 3 years ago

The lender can't discriminate against someone because of age. They may require a higher down payment but if their income is adequate to pay on the mortgage they are probably as good a risk as anybody. The borrower should make some plans and discuss the issue with his or her heirs.

by Othniel - 3 years ago

Age plays no factor in securing credit, unless you are too young to legally enter a contract.

However, once a person has retired, it becomes harder to qualify for a loan. The standards do not change, but their personal circumstances frequently do. Most retired people have a lower income than before they retired, and consequently have a higher debt ratio.

As long as the credit score, income, debt ratio and asset balance are equal, someone who is 80 can get the same loan as someone who is 30.

by Debdeb - 3 years ago