Retirees in Florida are considering a move to Pennsylvania to escape the summer heat, but face a key question about financing. At ages 66 and 76, the couple owns their current home outright, with no remaining mortgage balance.
The primary concern is whether lenders will approve a new mortgage for borrowers in their late 60s and mid-70s. Federal law prohibits age discrimination in lending, so age alone cannot be a reason for denial.
Lenders evaluate mortgage applications based on income, assets, and credit history, not age. Retirees can still qualify using pension income, Social Security benefits, and withdrawals from retirement accounts.
A larger down payment can improve approval chances. Selling the existing Florida home could provide substantial equity to put toward a new property in Pennsylvania.
Fixed-rate mortgages offer predictable payments, which is helpful for retirees on a limited income. Some lenders also offer products specifically designed for older borrowers.
Interest rates and terms may vary based on the borrower’s debt-to-income ratio and overall financial profile. A strong credit score remains an important factor in the application process.
Consulting with a mortgage broker experienced in lending to retirees can clarify options. Many lenders will approve loans for older applicants who demonstrate sufficient income and assets to cover payments.
