Can I Get a Mortgage at 65

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It is a common belief that pensioners and senior citizens— People above the age of 62, find it challenging to get mortgages, which may be true. It is primarily because most people did not have the full scope of the available options.

Older people have difficulty securing mortgages because of two reasons. Lenders believed that;

  1.  Older people are at risk of developing illness and may not live up to 25 to 30 years which is the entire term of a standard mortgage.
  2. There is usually a decrease in their income, which threatens affordability. Even with pensions, it is hard for lenders to decide how much they will earn.

If you’re wondering if you could a mortgage at 65, yes, it is possible to get a mortgage at 65. Read on to find out how to get a mortgage regardless of age.

Requirements for Mortgage Lending

Age is not one of the requirements for deciding the qualifications for a mortgage. According to the Equal Credit Opportunity Act, it is illegal to discriminate against a credit applicant based on age.

Some of the criteria used by mortgage lenders are:

Income and Tangible Assets

Tangible assets like non-taxable income, stock, car, and others can decide their eligibility for a mortgage.

Debt-to-Income (DTI) Ratio

DTI ratio is the sum of monthly debts divided by total monthly income in percentile. The higher the DTI, the more risky lenders find you. Lenders preferred a DTI that is less than 50 percent.

Credit History and Score

The minimum credit required for most mortgages is around 620. However, the minimum credit score won’t be enough to get you the best rates.

Mortgage Options For Senior Citizens

Here are a few mortgage options to consider as a senior citizen.

Conventional Loan

Conventional loans are the most common type of mortgage loan. The government does not back it; thus, it is a private account.

They often lack some benefits offered by government-assisted loans, like they require a 20 percent down payment and have a higher credit score threshold.

Cash Out Refinancing

Cash-out refinancing allows homeowners to convert home equity accumulated over time into cash, which affords them a new home. The interest rate on cash-out refinancing is usually low.

VA Loans

Veterans loans are designed mainly for active and veteran service personnel and their surviving spouses. VA loan has low mortgage interest, requires no down payment, and you or your spouse must have served in the military.

Reverse Mortgage

A reverse mortgage is a home loan for senior citizens. It is secured using a residential property. It allows senior citizens to buy a home with zero down payment as long as they have paid a considerable part of their mortgage.

Other Mortgage Options for Senior Citizens

  • No document mortgage
  • Home Equity Conversion Mortgage
  • Home equity line of credit
  • Home equity loan

Senior citizens with good credit, valuable tangible assets, and below-average DTI can get a decent mortgage.

Also, when looking for a mortgage, be sure to work with a real estate agent Campbelltown to avoid being a victim to scammers.

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