Q: I just retired. Can I still apply for and get a mortgageA Mortgage is a document granting a lien on a home in exchange for financing granted by a lender. The mortgage is the means by which the lender secures the loan and has the ability to foreclose on the home. in the New York area? Thank you. I just love your web site.
A: Yes. As long as you have enough income to qualify, you should be able to get a mortgage no matter what age you are. Lenders are not allowed to practice age discrimination.
In fact, under the Equal Credit Opportunity Act, lenders cannot discriminate based on your race, color, religion, national origin, sex, marital status, age or because you receive public assistance, or charge you a different interestInterest is money charged for the use of borrowed funds. Usually expressed as an interest rate, it is the percentage of the total loan charged annually for the use of the funds. rate or loanA Loan is an amount of money that is lent to a borrower, who agrees to repay it plus interest. terms based on these factors.
A lenderA Lender is a person, company, corporation, or entity that lends money for the purchase of real estate. may not ask if you’re widowed or divorced and may only use the terms married, unmarried, or separated. If you’re located in a community property state, including Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington and Wisconsin, a lender or credit may ask you to provide information about your marital status.
A lender, however, may consider your immigration status and whether you have the right to stay in the country long enough to repay the debt.
And, while a lender may not ask you about your plans for having or raising children (probably not in the cards for you, given that you’re retired), but they can ask about expenses relating to your dependents. And, if you get alimony, child support, or separate maintenance payments, unless you’re relying on them to make your mortgage payments, you don’t have to disclose those either.
For more details on the Equal Credit Opportunity Act, visit FTC.gov.
The bigger issue is fitting within the lender’s mold of a borrower to which the lender is willing to extend credit. Whether you are young or old, the lender will have guidelines to determine whether you have the financial ability to repay the loan. These days lenders must see a stream of income for the prospective borrower to make sure they can repay the loan.
If you are retired, either your monthly social securitySocial Security provides retirement benefits, disability income, and MedicareMedicare is a program of Hospital Insurance (Part A) and Supplementary Medical Insurance (Part B) protection provided under the Social Security Act. for working individuals and their spouses. Under the Social Security Act of 1935, the government established social security and created the Social Security Administration to administer the program. check must be enough to cover debt you’re taking on, or you must have other monthly income to add to social security. If you have this stream of income and the amount of income you receive is sufficient to make monthly payments on the loan, including real estateReal Estate is land and anything permanently attached to it, such as buildings and improvements. taxes, homeowner’s insurance payments and community association fees, along with all of your other living expenses, you should be able to obtain a loan.