Stricter standards: Retirees struggle to qualify for loansMay 31, 2012 @ 6:56 am
Whether refinancing their current mortgage or applying for a new loan to purchase a home for their golden years, more retirees are saying they are increasingly facing roadblocks when it comes to applying for a mortgage.
One 68-year-old homeowner, with a net worth in the seven-figure range and an 826 credit score, said he was looking to refinance into today's record low interest rates and that he was shocked when he was not approved to refinance his mortgage. He told The Washington Post that it was the first time he was rejected in 45 years of home ownership and after having eight different home loans through the years.
The reason more retirees are being turned down: Insufficient income.
"You just need to shop around and deal with experienced loan officers who know the ropes and are willing to work with you for your business," The Washington Post notes.
Other retirees are investigating reverse mortgages where no income is needed to qualify in order to tap the income in the home.
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