Choosing where to spend your retirement is a huge decision. Many people are already retired before they’re ready to buy the home of their dreams. Finding the right mortgage program makes sailing into retirement a lot easier.
Champions Mortgage is a top mortgage broker in Houston, TX. Our expert team will make the process as affordable as possible with our remarkably low rates.
Can a retired person get a mortgage? Getting a mortgage after retirement is possible, but this isn’t the best solution for everyone.
When Might It Be Better To Purchase Before Retirement?
There are no hard and fast rules for the best time to purchase a home for retirement, but some factors may make it easier to buy a home while you’re still working. There are a few essential things to consider about purchasing before retirement, including:
It’s Easier To Qualify for Credit While Working
While the Equal Credit Opportunity Act prohibits age discrimination in lending, qualifying for a loan after retirement can be challenging. Generally, your income will be lower than when you worked, affecting the programs you qualify for.
You’ll Have a Better Chance To Capitalize on Your Current Home
If you downsize before retirement and sell your home now, you may be able to afford a larger downpayment. Any money left over from the sale can go toward your retirement fund or renovations in your new home. This is a good option for those with lots of equity in their current home.
It Simplifies Future Financial Planning
If you secure a new home before retirement, you take the guesswork out of budgeting. You’ll benefit from knowing exactly how much your home will cost each month. This makes it easier to allocate your retirement fund and plan ahead.
How Can a Retired Person Get a Mortgage?
If you’ve already retired, it’s still possible to purchase your dream home with the proper preparation. Prospective buyers should take into account a few loan term considerations before signing up for a post-retirement mortgage.
Prepare for Retirement Income Verification
As your retirement income likely comes from various, sometimes finite, sources, you’ll usually need to prove you can support yourself for at least three years. Qualifying income typically includes social security and trust distributions.
Retirees often qualify for an asset-based mortgage, a loan based on existing assets rather than new income. Brokers will consider the value, type, and depletion rate of your assets to determine whether you qualify for a loan.
Look Into a Reverse Mortgage
For those over 62 wondering, “Can a retired person get a mortgage?” if you have at least 50% equity in your home, a reverse mortgage converts that equity into income. This is a great choice for retirees as it doesn’t require any income or a monthly mortgage payment.
Choose a Flexible Debt-to-Income Ratio
Remember that certain loans, such as VA loans, offer flexible debt-to-income ratio guidelines. Loans with this flexibility are an excellent option for those with less equity to spare. A VA loan allows retired veterans to fund a home without a required downpayment.
Trust Champions Mortgage With Your Golden Years
Champions Mortgage assists house buyers throughout Texas. Our low rates surpass most credit unions and make the purchasing process more accessible, no matter your stage of life.
As a top mortgage lender in Texas, we believe the home loan approval process shouldn’t be a mystery. Our transparent communication and streamlined processing make it simple. After you complete an application, we’ll process it within 15 days.
Now you know the answer to “Can a retired person get a mortgage?”
Let our expert team help you make the most of your retirement. Call (281) 727-2500 to start your home loan today.
