Thanks to the Equal Credit Opportunity Act of 1974, it's illegal to discriminate against a financing applicant based on their age. So, seniors have mortgage options just like anyone else.
If you're looking to downsize or retire somewhere new, there are different purchase mortgages. If you've built up a lot of equity over the years, you could be a good candidate for mortgage refinancing or a home equity loan.
Below, CNBC Select has chosen the best mortgage lenders for seniors in a variety of categories. (Read our methodology for more on how we made our picks.)
Can seniors get a mortgage?
Mortgage rejection rates climb with age, according to a report from the Federal Reserve Bank of Philadelphia, and the acceleration starts at 70. Age discrimination is technically illegal but lenders can consider your age when reviewing your creditworthiness, including reviewing how close you are to retirement and how that may impact your ability to make payments.
In addition, a mortgage loan officer who's not fully clued in may just look for W-2s when calculating your debt-to-income ratio, according to AARP, rather than considering pension allotments, Social Security checks, 401(k)s and the full range of retirement savings.
If you believe you're not being judged accurately, check in with your loan agent or move on to another lender. You can also report age discrimination in lending to the Consumer Financial Protection Bureau
Best for cash-out refinancing: Rocket Mortgage
- Offers a 1% down mortgage, making it a great option for first-time homebuyers who don't have enough saved up for a down payment.
- Above average scores for customer satisfaction from J.D. Power, meaning you'll be in great hands from application to closing day.
- With an average closing time of 22 days — nearly half the industry average — homeowners will be able to get the keys to their home as soon as possible.
- Rocket will give you a rebate of up to $10,000 for buying with Rocket Homes, which pairs homeowners with a real estate agent.
- No USDA mortgages, construction loans or HELOCs
- Hard credit check required for customized rate
- No physical branches
Who's this for? Longtime homeowners with lots of home equity will like that Rocket Mortgage lets you cash out 90% of the value of your home, higher than most lenders.
Standout benefits: The average closing time for refinancing with Rocket is 21 days, nearly half the national average. Plus, borrowers can get verified approval in two hours.
Best for reverse mortgages: Finance of America
Finance of America
Loan types
HECM, HomeSafe Standard, HomeSafe Second
Minimum equity
50%
Maximum loan
Up to $4 million (HomeSafe), $50,000 and $1 million (HomeSafe Second),
Age limit
62 for HECM, 55 for HomeSafe Second, 60 for EquityAvail, 55 for HomeSafe (60 in Massachusetts, New York and Washington, 62 in North Carolina and Texas),
Availability
Finance of America is a division of Finance of America Reverse which is licensed nationwide. In CA, NM, and OK, it does business as Finance of America Reverse. In NY, it does business as FAReverse, LLC
Pros
- Jumbo reverse mortgages are available up to $4 million
- Doesn't require mortgage insurance premiums or origination fees on HomeSafe
Cons
- No online application
- Not transparent about rates or fees
Who's this for? Finance of America offers a broad range of loans for seniors, including home equity conversion mortgages (the most common type of reverse mortgage) and jumbo reverse mortgages that let borrowers 55 and older take out up to $4 million.
Standout benefits: Finance of America's home-sharing service helps homeowners find compatible roommates so they keep their home and supplement their income.
Best for HELOCs: FourLeaf Credit Union
- Free rate lock for 60 days, so you can shop without worrying about losing your rate.
- It only takes a $5 deposit for membership, making it an accessible way to get the benefits of a credit union.
- Only has branches in New York and New Jersey
- Home loans not available in Texas
- No USDA or home equity loans
Who's this for? FourLeaf Federal Credit Union has home equity lines of credit (HELOC) with a generous $1 million draw maximum. It's also one of the few lenders that lets you convert some or all of your variable-rate HELOC into a fixed-rate one.
Standout benefits: Membership in FLCU only requires a $5 deposit and there's no annual fee for HELOCs.
Best for VA loans: Navy Federal Credit Union
Who's this for? Navy Federal Credit Union offers affordable rates on VA loans, with the option to lower your rate without refinancing for a nominal $250 charge.
Standout benefits: NFCU's 1.00% origination fee can be waived if you opt for a 0.25% rate increase.
Best for conventional mortgages: Bank of America
- Affordable Loan Solution® mortgage only requires 3% down
- Up to $10,000 in down payment assistance for eligible borrowers
- Up to $7,500 in closing cost grants in select markets
- No annual fees or closing costs for HELOCs
- Existing BoA customers eligible for discounted rates or fees
- Lender fees not disclosed
- No USDA loans, home equity loans or reverse mortgages
Who's this for? Bank of America ranked near the top for customer service on J.D. Power's 2024 mortgage origination survey and has more than 3,800 branches for face-to-face service.
Standout benefits: Borrowers in Dallas, Detroit, Los Angeles, Miami and Charlotte, North Carolina, who earn up to 80% of the area median income can apply for Bank of America's Affordable Loan Solution, a 3% down mortgage with flexible credit score requirements and no mortgage insurance. It can also be combined with up to $10,000 in down payment assistance grants.
Are there special mortgages for seniors?
Seniors can apply for the same mortgage products as anyone else but because they're more likely to have robust home equity, there are a few standout options.
Reverse mortgages
A reverse mortgage, also known as a home equity conversion mortgage (HECM), is the most common mortgage taken out by seniors: Backed by the FHA, it allows homeowners 62 and older to borrow against their home's value. Instead of making monthly loan payments, though, the balance is due in full when you sell the house, stop using it as your primary residence or pass away.
The property must be your primary residence and you must continue to pay property taxes and homeowners insurance. You must also:
- Be 62 or older
- Have at least 50% home equity
- Borrow no more than $1,149,825 (in 2024)
Private lenders also offer proprietary reverse mortgages that don't have to follow FHA age and limit restrictions. These jumbo loans can be for as much as $4 million and are available to borrowers as young as 55.
If you have ample equity, good health and plan to stay put, a reverse mortgage can make sense. But if you think you might move or go into care, the balance could suddenly come due. Even if it doesn't, your heirs will have to resolve the loan after your passing.
Offers in this section are from affiliate partners and selected based on a combination of engagement, product relevance, compensation, and consistent availability.
Flex Payment HECM, Flex Payment jumbo reverse, reverse for purchase, refinancing
Up to $4 million for Flex Payment jumbo mortgages
HECM, HECM for purchase, Longbridge Platinum
$4 million for Longbridge Platinum
Home equity loan
With a home equity loan, a lender provides a lump sum equal to a percentage of the value of your home.
Repayment is made monthly over between 5 to 30 years. Homeowners typically need a 620 credit score, a debt-to-income ratio of 43% and 20% home equity.
HELOC
A home equity line of credit (HELOC) is a secured line of credit that uses your home as collateral. There's typically a 10-year draw period and a 20-year repayment period. A HELOC might be a good option if you have an ongoing project or renovation expense and are unsure how much you will need. Homeowners typically need a 620 credit score, a debt-to-income ratio of 43% and at least 20% home equity.
Home equity sharing
In a home equity sharing agreement, an investor gives a homeowner cash in exchange for a portion of their home's future value. Repayment, plus a portion of the home's accrued value, is due after a set term or whenever the home is sold. You can get approved with a credit score as low as 500 but you'll need at least 25% equity.
Cash-out refinancing
With a cash-out refinance mortgage, you receive a new mortgage that is larger than your original home loan. After the balance of your current mortgage is paid, the remaining funds are yours to spend. Repayment is due in monthly payments over a 10- to 30-year term. Homeowners typically need a 620 credit score, a DTI of 43% and at least 20% equity remaining in their home after the refinance.
Government-backed loans
FHA, VA and USDA mortgages are easier to qualify for than conventional mortgages and they usually come with better rates and more flexible credit scores. They have some unique restrictions, however: Only current or former service members are eligible for a VA loan and USDA loans are only for income-approved borrowers in eligible rural and suburban areas.
Conventional loans
A good credit score, low debt-to-income ratio and a sizable down payment will go a long way to securing you a conventional mortgage. A shorter fixed 15-year term could get you a lower rate than the typical 30-year term, though your monthly mortgage payments will be steeper.
Should you get a mortgage in retirement?
Whether it makes sense to take out a mortgage when you're nearing or in retirement depends on your financial situation. Self-employment earnings, Social Security, pensions, retirement plans and investment dividends can all help you qualify for a mortgage.
If you expect to have a limited income, however, and it would be hard to keep up with a new mortgage, paying off your existing loan and staying put may be the smartest move.
If you can make a generous down payment and afford your monthly payments, however, a mortgage could help you change scenery, downsize or move closer to family.
If you need cash, a cash-out refinance or home equity loan could save you thousands compared to a personal loan. They put your home on the line, however — a serious risk at any age.
Mortgages for seniors FAQs
Are there special mortgage rates for seniors?
Age is not allowed to be a consideration in lending decisions, so there are no special rates for seniors. The mortgage rate you'll get will depend on your credit score, income, debt-to-income ratio and the type of loan and term.
Can a retiree get a mortgage?
You don't need to have a full-time job to be approved for a mortgage, although you will need to prove you have a stable income or assets that can cover payments. Outside of a regular salary, income sources that qualify for a mortgage include gig work, tips and commissions, interest and dividends, rental or investment income, VA benefits, Social Security, disability and income from retirement plans.
Can I get a mortgage with only Social Security income?
You can use your Social Security income to qualify for a mortgage, but you'll have to submit a benefits letter from the Social Security Administration (SSA) with your application that details how much you receive each month. If your Social Security checks are big enough, they may meet your lender's income requirements on their own.
Why trust CNBC Select?
At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every mortgage review is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of mortgage products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics. See our methodology for more information on how we choose the best mortgages for seniors.
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Our methodology
To determine which mortgage lenders are the best for seniors, CNBC Select analyzed dozens of home loans offered by both online and brick-and-mortar banks.
We focused on the following features:
Loan offerings: We chose lenders that offered home loans that meet the needs of older homeowners and buyers, including reverse mortgages, HELOCs and home equity loans.
Credit score: Most lenders require a 620 FICO score to secure a conventional mortgage. We noted if a lender had options for borrowers with poor credit.
Closing times: We gave more weight to lenders with shorter-than-average closing times or that guaranteed an on-time closing.
Fees: The mortgage process includes origination, application and underwriting fees, as well as charges for appraisals, title insurance, attorneys and other closing costs. When possible, we noted if a lender had lower fees, discounts or waived certain fees.
Application process: We considered whether lenders offered an online preapproval and application process and if there were physical branches for an in-person experience.
Customer service: We gave more weight to lenders that scored highly on J.D. Power's mortgage origination and servicing surveys. We also noted if they had robust customer service phone hours and a website with an online chat feature and educational resources.
We also considered CNBC Select audience data when available, such as general demographics and engagement with our content and tools.
Our recommendations are organized by the best for cash-out refinancing, the best for reverse mortgages, the best for home equity loans, the best for HELOCs, the best for VA loans and the best for conventional mortgages.
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