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The Front Porch Blog

Education on all things homeownership

Are You Ever Too Old to Get Approved for a Mortgage?

August 21, 2018 Homebuying

Whether you’re looking to downsize into the upgraded home of your dreams, refinance to pay off your home a little quicker, or looking for some extra cash to help fund your retirement, we want you to know that nobody is ever too old to get approved for a mortgage loan. Age is never a factor in loan approval. Actually, it is against the Federal Equal Credit Opportunity Act for a lender to discriminate against a borrower because of age. So, whether you are 40 or 90 years old, age is just a number in the eyes of a lender. Fortunately, Lennar Mortgage offers a powerful financing option, designed for homebuyers age 62 and older. It provides the funds you need to buy the home that you really want.

The Home Equity Conversion Mortgage (HECM) is unlike a traditional mortgage and will allow you to forego your monthly mortgage payment. This will help you increase your monthly cash flow. You even retain ownership of the home as long as you live in it. The loan only becomes due when you leave, sell, or fail to maintain the home.

A HECM loan can help you:

  • Consolidate debts
  • Refinance existing mortgage debt
  • Give you some extra cash flow
  • Fund large purchases like that new corvette you’ve been wanting to buy
  • Assist a grandchild who is about to head off to college

A really great bonus to this loan is that all single-family homes, townhomes, and Federal Housing Administration (FHA)-approved condos are all eligible for this loan!  You just have to use the home that you buy as your primary residence—so vacation homes or investment and rental properties are not included.

Ask your Loan Officer if a reverse mortgage makes financial sense for you.