Homebuyers who are over 55 and looking to move to more manageable housing or to digs closer to the grandkids need not worry about whether they can qualify for a mortgage.
It is illegal to discriminate against anyone applying for financing because of their age, which is a protected class under the Fair Housing Act. If you have the income, credit profile and the ability to pay back the loan, winning approval should not be a problem just because you are over 55.
Even if you don’t have a full or part-time job, banks are willing to lend if you have regular monthly income, like a pension and Social Security, or retirement assets.
But this begs the question: What kind of financing is available for us old(er) folk? Is it any different from everyone else?
The answer to that second question is no; today’s loan products are the same for everyone. You are eligible for a 30-year mortgage or one for 15 years, or even 10 if you can afford the higher payments. You can have a fixed-rate loan, or for a little lower rate, one in which the rate changes every so many years, every three, perhaps, or even every five, seven or 10 years.
As it turns out, though, seniors have options youngsters don’t have, including a 1) Home Equity Conversion Mortgage for Purchase (HECM), 2) a bridge loan or 3) a Home Equity Line of Credit (HELOC).
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