How Can I Qualify For A Mortgage When I Retire If My Only Sources Of Income Are My Savings + Social Security?

By Increase Savings | Published: June 22, 2009

I plan on retiring in a couple of years and then relocating. I will not be working after I retire. Since most mortgage qualifying information revolves around one’s employment income, is it possible to qualify for a mortgage based only on my savings and payments from Social Security?

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6 Comments

  1. bostonia
    Posted June 22, 2009 at 8:38 pm | Permalink

    A lender is only looking for sufficient resources to be able to make the payments, that’s all. For the average buyer that would be your paycheck but if you have sufficient retirement income from any source you won’t have any problem qualifying.
    Ignore the nasty remark at the top. He doesn’t know what he’s talking about. Age discrimination is illegal in the US. My Dad got a mortgage when he was in his 70s.

  2. bostonia…
    Posted June 23, 2009 at 12:37 am | Permalink

    Your interest from savings is not going to count, as you could give it away next week. The rest of it does thought, SS, pension.

  3. Anonymous
    Posted June 23, 2009 at 1:33 am | Permalink

    It doesn’t matter that you can make the monthly payments,when you haven’t enough time left in your life expectancy to pay the full amount back! The shortest mortgage is for 15 years and they don’t offer them to retired people!

  4. jake
    Posted June 23, 2009 at 3:28 am | Permalink

    I sold a house to a guy a fives years back and he was 90 years old. He got a thirty year mortgage! The loan officer said that it is illegal to discriminate based on age. That man still had a job with sufficient income to qualify.
    The mortgage company will use your SS income and any interest income from your savings to help you qualify. The more you put down the less they are worried about qualifying, so put as much down as you can comfortably do. If that would make it difficult for you then you might consider getting the house and mortgage now-maybe rent it out until you retire.

  5. glenn
    Posted June 23, 2009 at 5:20 am | Permalink

    It really depends on how much money you can “put down” on the house price. I doubt that you could get a normal 20% mortgage, but if you have a big next egg and you want to apply it to the loan (say for half-or-more of the house price), you very well might get the loan.

  6. wilderwr
    Posted June 23, 2009 at 12:10 pm | Permalink

    If you savings is high enough, you may find someone who will approve you.
    The bottom line is that bank wants to know that you can make the month.

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