Many people assume that once you retire, your chance to qualify for a mortgage disappears—but that’s not the case. Thanks to fair lending laws, age cannot legally be used against you when applying for a home loan. Whether you’re downsizing, helping a family member, or relocating for lifestyle or tax reasons, it’s absolutely possible to get approved for a mortgage later in life. What matters most is your financial profile—your income, credit, debt-to-income ratio, and assets.

Understanding the Challenges Older Borrowers May Face

While lenders cannot reject your application based on age, retirees may face some practical hurdles. Often, fixed incomes or distributions from retirement accounts can make it harder to meet traditional income requirements. Additionally, existing mortgage debt or high monthly obligations can increase your debt-to-income ratio, which lenders weigh heavily when evaluating your application. That said, retirees who maintain strong credit and manage debt wisely are still well-positioned to qualify.

What You Need to Qualify

Lenders review the same criteria for all applicants: credit score, income verification, and debt obligations. Retirees can qualify using Social Security, pension, investment, or rental income—provided the documentation supports it. Most lenders want to see at least two months of consistent bank deposits and may “gross up” nontaxable income by as much as 25% to improve your chances of qualifying. A good credit score and sufficient home equity can also help you access lower rates or different loan options, such as conventional, FHA, or even reverse mortgages.

Smart Lending Options for Older Adults

If you’re in or nearing retirement, consider your long-term financial goals before taking on a mortgage. For some, a shorter loan term with a higher monthly payment may be a better fit. Others may benefit from tapping into home equity through a HELOC or reverse mortgage. The key is choosing a financing solution that fits your income, lifestyle, and legacy goals. Of course check with us if you’d like more information and we can see what fits your specific needs!

familiar with private mortgage insurance (PMI). This insurance is typically required by lenders to protect themselves in case a borrower defaults. For a few recent tax years, homeowners had the opportunity to deduct PMI premiums on their federal returns, offering some relief on their overall tax burden. However, that deduction expired after the 2021 tax year, and currently, PMI is no longer tax-deductible.

Between 2018 and 2021, eligible homeowners who itemized their deductions could write off PMI premiums. This was a welcome break for many, especially those paying hundreds annually in PMI costs. If you didn’t take advantage of the deduction during those years, there’s still a chance: you may be able to file an amended return and claim those missed deductions. Just keep in mind that your mortgage must have originated (or been refinanced) on or after January 1, 2007, to qualify.

So, where does that leave us now? As of the 2022 tax year and beyond, the PMI deduction is no longer available. A new bill has been introduced in Congress to potentially reinstate it, but until it’s passed and signed into law, homeowners should plan their taxes accordingly. This change highlights the importance of staying up to date with tax law changes, especially if you’re navigating homeownership with a tight budget.

While the expired deduction may not have been a game-changer for everyone, it could have still saved you a few hundred dollars a year—money that adds up over time. If you’re unsure whether you missed out on this deduction in previous years or want to know if an amended return makes sense, it’s worth speaking with a tax professional or schedule a review with us on our website and we can help you decide.

Buying a home is often a team effort, whether it’s with family, friends, or business partners. A common question among potential homebuyers is how many people can join forces on a mortgage. Although there’s technically no legal limit, most lenders typically allow up to four borrowers on a conventional mortgage. This limitation usually comes down to underwriting software, which comfortably accommodates up to four borrowers without requiring manual handling.

Applying for a mortgage with co-borrowers offers several great benefits. It can make qualifying for a loan easier, as combined incomes and credit scores often increase your buying power and help secure more favorable mortgage terms. Plus, sharing costs makes homeownership more affordable and accessible. This arrangement works especially well for multi-generational households, co-living setups, or friends investing together.

However, having multiple borrowers can come with some challenges. Each borrower is fully responsible for paying back the loan. If one person struggles to contribute their share, the others need to cover the shortfall to avoid damaging their credit or facing foreclosure. Joint homeownership also involves shared decision-making, which can become tricky if co-owners disagree on maintenance, upgrades, or selling the property.

If you’re thinking about buying a home with others, it’s important to be prepared. Check with us of course, if you are in a situation similar to this and we may recommend chatting with a real estate attorney about the best legal structure for your situation, like an LLC or a partnership, which can protect everyone involved and clarify roles.