Are you interested in taking out a mortgage in retirement? Getting a traditional mortgage can often pose a challenge for retired individuals who may not earn a regular income. However, retirement mortgages can make it easier for retirees to secure a home loan. There are plenty of retirement mortgages available, but you need to figure out which one is right for your needs.

    Ready to find the right retirement mortgage? Learn more about mortgages in retirement, government home loans for senior citizens, and the various options you have at your disposal. 

    What Is a Retirement Mortgage?

    If you are looking for a loan for retired people with good credit scores, there are several retirement mortgages that you can choose from. In general, a mortgage in retirement is a home loan that better serves people who have already retired because it takes into account assets and non-traditional income. Unlike a traditional loan, retirement mortgages generally don’t require you to provide proof of a job or standard income documents, such as your W-2 or pay stubs.

    On the other hand, certain retirement mortgages—such as a reverse mortgage—may require you to prove that you have reached a certain age or built up a specific amount of equity in a property. While there are plenty of government home loans for senior citizens available, the only one that has a specific age requirement is a reverse mortgage. Applicants must be 62 years of age or older in order to take out a reverse mortgage. However, this age requirement doesn’t apply to other types of retirement mortgages. 

    Retirement Mortgage Options

    When it comes to retirement mortgages, you have several options to choose from. Whether you’re in search of a mortgage for a senior on Social Security or a loan for retired people with a good credit score, there are retirement mortgages for all kinds of situations. Some of the most popular retirement mortgage options include: 

    • Home equity loans: If you are interested in taking out a loan, one of the first options could be a home equity loan. This is a great option if you own your property right now. Many seniors have been in one place for a while, and you could have a significant amount of equity built up. You may be able to tap into that equity using a home equity loan, which can provide you with a quick source of cash that you can use for various purposes.
    • Bank statement loans: Another loan that you might be interested in taking out is called a bank statement loan. If you are looking for a loan option that does not require you to produce any proof of income, a bank statement loan could be the way to go. This type of loan will allow you to qualify for a mortgage using only your bank statements.
    • Reverse mortgage: You can qualify for a reverse mortgage if you are at least 62 years of age and have at least 50 percent equity in your home. You can tap into the equity in your home to convert that equity into a regular income stream. While you will be responsible for monthly property tax payments and insurance payments, you can pay off your existing mortgage and eliminate monthly mortgage payments.
    • Asset-based loans: You might also want to explore asset-based loans. These are loans that will allow you to qualify for a home loan using the assets you have instead of the income you generate. You may want to work with a professional who can help you identify assets that can allow you to qualify for the best mortgage with the lowest possible interest rate. You are still in control of the assets that you use to qualify for a home loan.

    Keep in mind that there are plenty of other mortgages for seniors on Social Security as well. As a senior citizen, you are certainly welcome to apply for a traditional or conventional mortgage. You may also be eligible to apply for a VA loan if you meet the eligibility requirements.

    On the other hand, you will still need to meet income and other qualification requirements. If you have Social Security and retirement account payments coming in, you may have an easier time qualifying for traditional mortgages; however, if you do not have a job, it could make the process of applying for a traditional mortgage a bit more difficult.

    How to Qualify for a Mortgage in Retirement

    It is still possible for you to qualify for a mortgage in retirement, and there are plenty of options from which to choose. At the same time, it is important for you to put yourself in the best position possible to qualify for a mortgage in retirement.

    As you weigh your loan options, some of the most important factors you need to keep in mind include:


    While you do not necessarily need to have a traditional job to qualify for a mortgage, you may need to show that you have consistent sources of income if you are interested in retirement mortgages. There are different sources of income that could help you qualify for a mortgage in retirement. A few of the options you may want to consider include Social Security payments, your 401(k) account, your IRA account, and even pension payments. You will need to collect the necessary documentation to increase your chances of being approved.

    Credit Score

    You need to maximize your credit score if you want to put yourself in the best position possible to be approved for a retirement mortgage. There are different ways you can improve your credit score, such as paying down existing sources of debt and correcting mistakes on your credit report. While a credit score of 620 will allow you to qualify for most loan types, try to get your credit score as high as possible. An excellent credit score will make it possible to qualify for a low interest rate and favorable loan terms. 

    Debt-to-Income Ratio

    You should also try to improve your debt-to-income (DTI) ratio as you consider applying for a retirement mortgage. The best way to do that is to try to pay down existing sources of debt, such as any car loans or personal loans you might have. You should also try to avoid carrying a balance on your credit card.

    Consider Your Assets

    As a retiree, you may have significant assets that you can tap into to help you get ready to apply for a mortgage in retirement. For example, you may want to consider your investment accounts and any equity that you might have in your current home. If you have substantial assets, you could increase your chances of getting approved for a loan.

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    Find the Best Retirement Mortgage for You

    If you want to take out a mortgage in retirement, there are plenty of options available. By working with a real estate professional, you can review retirement mortgage options and find the loan that best aligns with your needs. 

    At Griffin Funding, we have a variety of loan packages available, including non-traditional options. We understand that everyone comes from a slightly different background, and it would be our pleasure to explain the features and benefits of each option to you. We want to make sure that you are in control of the terms of your loan, so give us a call or reach out online to speak with our team. We would be happy to help you find the right loan to meet your needs. Apply now.

    Frequently Asked Questions

    What is the best loan for retired people with a good credit score?

    There is no single option that is better than the rest if you are looking for a loan in retirement. If you have a good credit score, the right loan for your needs will depend on a variety of factors, such as your income level, the type of property that you want to purchase, and the assets that you have available. 

    The most important thing that you need to remember is that there are multiple choices, so consider reaching out to a professional who can help you compare the benefits and drawbacks of each option before you make a decision.

    Are there government home loans for senior citizens?

    Yes, there are government home loans available for senior citizens. One of the most popular options is the home equity conversion mortgage (HECM), which is usually called a reverse mortgage. This is a program that is run by the FHA, and it could be available to you if you are at least 62 years of age and have significant equity in your home.

    There are other options available as well. For example, you may want to see if you qualify for FHA first-time home buyer loans and VA loans, as these programs can make it easier to obtain financing. 

    Can I get a mortgage using Social Security income?

    You can certainly explore this route, but if Social Security is your only source of income, you may have a difficult time qualifying for a mortgage. If you have other sources of income, you can combine them together with your Social Security payments to increase your chances of being approved. Some of the other sources of income that you might have available include a pension, IRA, or 401k, as well as any other valuable assets you might own. 

    Bill Lyons

    Bill Lyons is the Founder, CEO & President of Griffin Funding. Founded in 2013, Griffin Funding is a national boutique mortgage lender focusing on delivering 5-star service to its clients. Mr. Lyons has 22 years of experience in the mortgage business. Lyons is seen as an industry leader and expert in real estate finance. Lyons has been featured in Forbes, Inc., Wall Street Journal, HousingWire, and more. As a member of the Mortgage Bankers Association, Lyons is able to keep up with important changes in the industry to deliver the most value to Griffin's clients. Under Lyons' leadership, Griffin Funding has made the Inc. 5000 fastest-growing companies list five times in its 10 years in business.