You stopped collecting a paycheck years ago, but you still want to buy a home or refinance the one you have. Can that even happen without a job? Yes. A retired person can absolutely get a mortgage, and a federal law actually makes it illegal for a lender to turn you down just because you are older. The same rules apply when a retiree wants to get a home loan to purchase rather than refinance.
The Equal Credit Opportunity Act bars lenders from denying you a loan based on age. What matters is whether you can repay, not how many candles were on your last birthday cake. Here is exactly how lenders look at a retiree's finances as of June 2026, and what you can do to strengthen your application.
Yes, Age Cannot Be the Reason for a Denial
Lenders are not allowed to reject your mortgage application simply because you are retired or in your 70s or 80s. The Equal Credit Opportunity Act protects you here.
A 30-year loan is still on the table even if you are 75. Lenders cannot assume you will not live long enough to repay it. What they can and will do is verify that you have steady, reliable income or enough assets to cover the monthly payment. If a full mortgage is more than you need, a smaller loan for a retired person on fixed income may be a simpler fit.
How Lenders Count Retirement Income
Without a W-2 job, you prove income a different way. Lenders accept several common retirement income sources, and many can even be "grossed up" because part of the money is not taxed.
Qualifying income sources usually include:
- Social Security benefits. Often grossed up by about 15% to 25% since much of it is tax-free.
- Pension payments. Documented with award letters or recent statements.
- Annuity income. Must typically continue for at least 3 more years.
- Required minimum distributions (RMDs) or regular withdrawals from retirement accounts.
- Investment and rental income, if it has a steady history.
Lenders generally want proof the income will continue for at least 3 years. Bring award letters, 1099s, two years of tax returns, and recent bank statements.
The Asset Depletion Mortgage: A Retiree Favorite
What if your money sits in investments rather than arriving as a monthly check? An asset depletion mortgage (also called asset dissipation) converts your savings and investments into qualifying income on paper.
The lender takes your eligible assets and divides by a set number of months. That result becomes your monthly "income" for qualifying, even though you never have to actually spend the money.
The math varies by program. Non-QM lenders often divide by 120 months, while loans following Fannie Mae and Freddie Mac guidelines may divide by 360 months, which produces a smaller income figure. As a rough example, at a 60-month period, every $100,000 in eligible assets generates roughly $1,667 a month in qualifying income.
How Much in Assets Do You Need?
Because the formula spreads your assets over many months, you usually need a sizable nest egg. Many borrowers need somewhere around $500,000 to $1 million or more in assets after the down payment and closing costs to generate enough qualifying income for a typical purchase.
Not every dollar counts the same. As a general guide that lenders commonly use:
- Checking, savings, money market accounts, and CDs often count at 100%.
- Stocks, bonds, and mutual funds often count around 70%.
- Retirement accounts often count around 70% for borrowers over 59 and a half.
The key upside: you do not have to liquidate anything. Your portfolio stays invested. The lender uses the balance as proof of financial strength, not as a piggy bank to drain.
Credit Score and Other Requirements
Your credit score still matters in retirement. For asset depletion and many retiree-friendly programs, lenders typically look for a FICO score in the 640 to 700 range, with stronger rates going to higher scores.
Other factors lenders weigh:
- Debt-to-income (DTI) ratio. They compare your monthly debts against your qualifying income. A lower ratio helps.
- Down payment. A larger down payment lowers the lender's risk and can offset a thinner income picture.
- Reserves. Extra savings left over after closing reassure the lender you can handle surprises.
If your score is on the lower end, a few months of cleanup before you apply can move you into a better rate tier. One straightforward way to add positive payment history is a credit-builder account like the Self Visa® Credit Card, which reports your on-time payments to the major credit bureaus while you save.
Tips to Strengthen Your Application
A little prep work goes a long way. Before you apply, consider these steps:
- Pull all three credit reports and dispute any errors.
- Pay down credit card balances to lower your DTI.
- Gather two years of tax returns, award letters, and recent statements.
- Consider a co-borrower or a larger down payment if your income is borderline.
- Shop at least 3 lenders, since retiree-friendly programs vary a lot.
If your credit needs a boost first, learning how to prepare your credit for a mortgage over a few months can help you add positive payment history before a lender pulls your file. The Current Build Card is another option designed to report on-time activity to the credit bureaus, so consistent use can help your score trend upward in the months before you apply.
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These are tools to build credit, not a substitute for shopping mortgage lenders. Terms and conditions apply, and approval is never guaranteed.
To keep an eye on your scores and credit factors while you prepare, a monitoring tool like Creditship.ai can help you track progress and spot what is moving your score before you sit down with a loan officer.
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What Users Commonly Report
Retirees who have gone through the process often say the paperwork is the hardest part. Pulling together award letters, multiple years of tax returns, and statements for every account takes patience.
Many report that asset depletion loans came with slightly higher rates than standard loans, since several are non-QM products. Some were surprised that a strong portfolio still was not enough on its own without decent credit. A common frustration is that not every loan officer understands retiree income, so finding a lender experienced with these programs made a big difference.
Frequently Asked Questions
Can you get a 30-year mortgage at age 70?
Yes. Lenders cannot deny you a loan based on age under the Equal Credit Opportunity Act. A 30-year term is available to qualified borrowers of any age, as long as you can document enough income or assets to repay it.
Does Social Security count as income for a mortgage?
Yes. Social Security benefits are accepted as qualifying income. Because much of the benefit is not taxed, lenders may "gross up" the amount by roughly 15% to 25%, which can help you qualify for a larger loan.
What is an asset depletion mortgage?
It is a loan that turns your savings and investments into qualifying income on paper. The lender divides your eligible assets by a set number of months to calculate a monthly income figure. You keep your assets invested and do not have to spend them.
What credit score do retirees need for a mortgage?
Many retiree-friendly and asset depletion programs look for a FICO score in the 640 to 700 range. A higher score generally unlocks lower rates. Requirements vary by lender and loan type, so it pays to check with several.
This article is for general information only and is not financial advice. Mortgage terms, rates, and approval depend on your full financial picture and the lender. APRs vary by creditworthiness. Terms and conditions apply.
