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Retirees stymied by mortgage qualification demands

More and more retirees looking to obtain a home loan may find that solid retirement accounts and a sterling credit rating are not enough.

Lenders increasingly are looking for a consistent monthly income in line with their usual debt-to-income standards. When they look at dividends, most lenders want to see a regular annual amount on the tax return paid out over at least the past couple of years.

In terms of part-time employment, borrowers need to prove they are actually working at the moment of application. In some cases, a two-year work history is required.

A handful of portfolio lenders reportedly are still issuing loans without verifying income. However, their interest rates are higher, as are their down payment requirements — which often range 30 to 40 percent.

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