I’m Retired, Can I Still Get a Mortgage?
August 16th, 2011
An interesting article popped up on the Wall Street Journal last month which addressed a question that some retirees who are searching for Delaware homes for sale have about mortgages. A concerned retiree asked if it was still possible for him to get a mortgage for a second home in order to avoid tying up so much cash in real estate as opposed to paying for the home outright. First he was concerned about eligibility since he was already 69 and retired, and second he wasn’t even sure if another mortgage was a wise decision to begin with.
Of course everyone’s financial situation is different, but fortunately for this gentleman, the answer to his question is a confident “Yes, of course you can receive a mortgage during retirement.” The article noted that it would actually be illegal for a lender to turn away someone due to age. Just like any applicant, a retiree would be subject to a lender’s debt, income and credit eligibility before receiving loan approval. All loan types (FHA, VA, conventional, etc) would still be available to retired applicants as well, regardless of age.
An option offered, although a more expensive one, is a reverse mortgage. With a reverse mortgage the interest is actually added to the lien on the home and no payments are made. The assumption on this option is that by the age of 69, the retiree would have have more than enough equity built to allow him to both purchase a new home AND get a reverse mortgage to help avoid a second closing.
The article goes on to list the caveats and other details of a reverse mortgage, as well as a further explanation of their answer to the readers question. For the original article on WSJ.com, click here. To speak with the Bayside team about our homes or amenities, contact us here!
