Common challenges
No paycheck does not mean no income. Lenders can count several retirement income streams and assets.
Programs that fit
Asset Depletion Loans
An asset depletion (asset utilization) loan converts your liquid assets into a monthly qualifying income, typically by dividing eligible assets by a set number of months, so retirees and investors with savings but little paycheck can qualify..
Conventional Loans
A conventional loan is a mortgage not insured by the government that follows Fannie Mae or Freddie Mac guidelines.
Jumbo Loans
A jumbo loan is a mortgage larger than the FHFA conforming loan limit for your county, used for higher-priced homes.
Cash-Out Refinance
A cash-out refinance replaces your current mortgage with a larger one and pays you the difference in cash, commonly up to 80% of your home’s value on a primary residence.
Tips before you apply
- Bring award letters for Social Security and pensions.
- Ask how retirement accounts are counted (often at a discount).
FAQ
What is the best mortgage for retirees?
It depends on your documentation and goal. The programs that most often fit are Asset Depletion Loans, Conventional Loans, Jumbo Loans, Cash-Out Refinance.