Can a 80 plus year old individual obtain a "typical" residential home mortgage-in light of the borrower's age?
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 - 9 hours ago
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 Go with the flow - 9 hours 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 - 9 hours ago
The problem come when the 80 + tries to get mortgage insurance.
by Oldmansea - 9 hours 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 - 9 hours ago
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