Here is the short answer: yes, a retired person can get a home loan. Federal law actually forbids a lender from turning you down just because of your age. You could be 75 and still qualify for a 30-year mortgage, as long as the numbers work.
The catch is that retirees often have income that looks different from a regular paycheck. Social Security, a pension, and retirement accounts all count, but you have to document them the right way. This guide walks through how that works in 2026, with specific rules and a few strategies that can help. None of this is personalized financial advice, so confirm details with a licensed lender before you apply.
Key facts at a glance
| Question | Answer |
|---|---|
| Can retirees get a mortgage? | Yes, age alone cannot be a reason to deny you |
| Governing law | Equal Credit Opportunity Act (ECOA) |
| Income that counts | Social Security, pension, 401(k)/IRA, dividends, annuities, part-time work |
| Asset-based option | Asset depletion (or asset dissipation) loans |
| Typical max DTI | Often around 43%, sometimes higher with strong reserves |
| Where to report bias | Consumer Financial Protection Bureau (CFPB) |
The law is on your side
The Equal Credit Opportunity Act, or ECOA, makes it illegal for a lender to discriminate based on age. A lender cannot deny your application simply because they assume you might not live long enough to repay a 30-year loan. That reasoning is not allowed.
That said, lenders can still consider whether your income will continue. They are allowed to ask for proof that your Social Security or pension payments will keep coming. The line is subtle: age cannot be the reason, but the durability of your income can be part of the review.
In practice, mortgage denial rates do rise with age, and one Federal Reserve Bank of Philadelphia report found the increase accelerates around age 70. Often this comes down to a loan officer who only knows how to read W-2s, not pension statements. If you feel you were treated unfairly, you can file a complaint with the Consumer Financial Protection Bureau.
How retirement income counts
Lenders want to see income that is stable and likely to continue for at least three years. Social Security and pension income usually qualify easily because the payments are predictable and documented with award letters or 1099 forms.
Here is a helpful wrinkle: Social Security income is often partly tax-free, so many lenders "gross up" it by about 15% to 25% when calculating your qualifying income. That can make your numbers look stronger than your bank deposits alone suggest. Pension and annuity income work similarly, backed by statements showing the amount and that it continues.
Money you draw from a 401(k) or IRA can also count, but lenders typically want proof the withdrawals are regular and that the account has enough left to continue for three years. Retiring can shift your financial picture in other ways too, so it helps to understand how retiring affects your credit score before you apply.
Asset depletion: qualifying without monthly income
What if you have a large nest egg but little monthly income? This is where an asset depletion loan, sometimes called asset dissipation, comes in. The lender takes your eligible liquid assets and divides them across the loan term to create a hypothetical monthly income figure.
For example, a lender might take a portion of your savings and investment accounts, subtract any down payment and reserves, then divide the rest by 360 months for a 30-year loan. The result is treated as qualifying income, even though you are not actually withdrawing that much each month.
Not every lender offers asset depletion programs, and rules vary on which accounts count and at what percentage. Retirement accounts are often counted at 70% to account for taxes and market risk. Ask specifically whether a lender offers this option, because it can be the difference between approval and denial for asset-rich retirees.
What lenders still check
Income documentation is only part of the picture. Lenders also look at your debt-to-income ratio (DTI), which compares your monthly debt payments to your qualifying income. Many conventional loans cap DTI around 43%, though strong reserves can stretch that.
Your credit score still matters a great deal. A higher score means a lower interest rate, which on a mortgage can save tens of thousands of dollars over time. Once you have a rate you like, you can also protect it with a mortgage rate lock float-down option, which holds your rate while still letting you grab a lower one if the market drops before closing. If your score has slipped, it is worth knowing the steps to improve your credit score before applying. Even a 580 credit score is not the end of the road, but it usually means higher rates or an FHA loan instead of a conventional one.
If your credit needs a tune-up first, a credit monitoring tool can help you spot errors and track progress. Services like Creditship.ai offer free credit monitoring so you can see where you stand before a lender pulls your report. You can also lean on a simple credit-building product while you prepare.
MoneyLion can be a useful starting point here, because its marketplace lets you compare personalized loan and financial product offers without an impact to your credit score. For a retiree shopping carefully, that no-pressure comparison is handy. You can explore the MoneyLion marketplace to see what fits.
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Loan types that work well for retirees
Several mortgage programs suit retirees. Conventional loans accept asset depletion and grossed-up income. FHA loans are friendlier to lower credit scores, often accepting scores down to 580 with a 3.5% down payment. VA loans, for eligible veterans, can require no down payment at all.
There is also the asset-based or "no income" portfolio loan offered by some smaller banks and credit unions. These hold the loan in-house and have more flexible rules, which can help when your situation does not fit the standard boxes. Rates may run a bit higher in exchange for that flexibility.
Downsizing retirees sometimes pair a new mortgage with proceeds from selling a larger home, which lowers the loan amount and improves approval odds. A smaller loan also means a lower monthly payment, which keeps your DTI comfortable.
Strengthen your application first
If your credit score needs work before you apply, a credit builder product can help you show steady, on-time payments. The Self Visa Credit Card is one option: it pairs a credit builder account with a secured card, has high approval rates, and reports to all three bureaus. For a retiree rebuilding after a rough patch, that steady reporting can lift a score over several months. You can review the Self Visa Credit Card to see how it works.
Building or repairing credit is rarely instant. It often takes several months of on-time payments and low balances before a score moves enough to matter for a mortgage rate. Starting six to twelve months before you plan to apply gives you the best shot at a strong offer.
Frequently Asked Questions
Can a 70-year-old get a 30-year mortgage?
Yes. Under the Equal Credit Opportunity Act, a lender cannot deny you a 30-year mortgage just because of your age. As long as you meet the income, credit, and debt-to-income requirements, your age cannot legally be the deciding factor. Approval still depends on the strength of your overall application.
Does Social Security count as income for a mortgage?
Yes, Social Security is accepted income for a mortgage. Because part of it is often tax-free, many lenders gross it up by roughly 15% to 25% when calculating your qualifying income. You will need to provide an award letter or benefit statement as proof.
What is an asset depletion mortgage?
An asset depletion mortgage lets you qualify using your savings and investment balances instead of monthly income. The lender divides your eligible assets across the loan term to create a hypothetical monthly income figure. It is useful for retirees who have substantial assets but limited regular income.
What credit score do retirees need to buy a home?
There is no special score for retirees. Conventional loans usually want a score around 620 or higher, while FHA loans can accept scores down to 580 with a larger down payment. A higher score gets you a lower interest rate, so building credit before you apply pays off. Terms vary by lender.
