Many factors play a role in mortgage eligibility — but age isn't one of them. Thanks to the Equal Credit Opportunity Act, it's against the law to discriminate against a credit applicant because of age (unless you're too young to sign a contract). So even if you're retired and have no income from employment, you have mortgage options, including loans geared specifically toward seniors.
CNBC Select compared dozens of mortgage lenders based on their loan offerings, reputation, fees and more. Below is our list of the best mortgages for seniors, whether you're looking to tap into your home equity or buy a new house. (Read more about our methodology below.)
Best mortgage lenders for seniors
- Best for refinancing: Rocket Mortgage
- Best for reverse mortgages: American Advisors Group
- Best for buying a new home: PNC Bank
- Best for retired veterans: Navy Federal Credit Union
Compare offers to find the best mortgage
Best for refinancing
Rocket Mortgage
Annual Percentage Rate (APR)
Apply online for personalized rates
Types of loans
Conventional, FHA, VA, jumbo, HomeReady, Home Possible
Terms
10-, 15- and 30-year fixed-term conventional loans, 30-year VA and FHA loans, custom mortgages with fixed-rate terms from 8 to 29 years.
Credit needed
620
Minimum down payment
0% for VA, 1% for RocketONE+, 3% for conventional, 3.5% for FHA, 10% to 15% for jumbo
Already have a mortgage through Rocket Mortgage or looking to start one? Check out the Rocket Visa Signature Card to learn how you can earn rewards
Read our review of Rocket Mortgage
Pros
- Largest home lender in the U.S.
- Offers 1% down mortgage
- High scores for customer satisfaction
- Shorter-than-average closing time
- Rebate of up to $10,000 for buying with Rocket Homes
Cons
- No USDA mortgages, construction loans or HELOCs
- Hard credit check required for customized rate
- Higher origination fees than the competition
- No physical branches
Who's this for? Rocket Mortgage can be an excellent choice if you're looking to refinance. Refinancing your mortgage can help reduce your monthly expenses or shorten your loan by securing a mortgage with new terms.
Standout benefits: Rocket Mortgage offers the option to cash out the full equity of your home — as long as you have a credit score of 620 or higher. Meanwhile, most lenders only allow homeowners to cash out 80 to 90% of their home's equity. This can be helpful if you're consolidating debt, looking to buy a second property or anticipate any other large expenses. The lender might also be able to help you if your goal is simply to lower your current mortgage payment.
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Best for reverse mortgages
American Advisors Group Reverse Mortgage
Annual Percentage Rate (APR)
Apply online for personalized rates
Types of loans
HECM for Purchase, reverse mortgage loans, refinancing
Fixed-rate Terms
Varies
Adjustable-rate Terms
Not disclosed
Credit needed
No minimum credit score required
Terms apply.
Pros
- Excellent reputation
- Multiple mortgage loan options geared toward seniors
- Useful online resources, including a loan calculator and articles with retirement tips
Cons
- Jumbo reverse mortgages are not available in every state
Who's this for? American Advisors Group is worth considering if you're looking for a reverse mortgage. Reverse mortgages are designed to allow seniors to access the equity in their homes as cash paid by the lender. With this option, you can receive the funds in a lump sum or opt for monthly payments over a term or as long as you live in the home. To qualify, you must be 62 or older, reside in the home, have substantial equity and have enough funds to keep paying expenses like property taxes and insurance.
Standout benefits: AAG offers several types of reverse mortgages, including a lump-sum payout, a growing line of credit, a jumbo reverse mortgage, term or tenure reverse mortgages and a reverse-for-purchase mortgage which you can use to buy a new home.
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Best for buying a new home
PNC Bank
Annual Percentage Rate (APR)
Apply online for personalized rates
Types of loans
Conventional, FHA, VA, USDA, physician loan, HomeReady and Home Possible, refinancing, HELOC
Terms
Fixed: 10 – 30 years, ARM: 7/6 and 10/6
Credit needed
620 for conventional, 640 for USDA, 620 for FHA, 680 for jumbo,
Minimum down payment
3% for conventional, 3.5% for FHA, 0% for USDA or VA, 15% for jumbo loan
Terms apply.
Read ourPNC Bank mortgage review
Pros
- Lower-than-average rates
- Issues loans in all 50 states and Washington, DC
- Offers USDA loans
- PNC Community Loan requires only 3% down and no PMI
- $7,500 grant for down payment or closing cost
Cons
- No home renovation or home equity loans
- High credit score requirement for FHA mortgage
- Rated below average for customer satisfaction by J.D. Power
Who's this for? A reverse purchase loan isn't the only means for seniors to buy a new home — you may qualify for a traditional mortgage, whether you currently own a home or not. We recommend PNC Bank as it offers several types of mortgages, including conventional loans, FHA loans and VA loans, USDA loans and jumbo loans. Terms range from 10 to 30 years and you can choose between a fixed-rate and adjustable-rate mortgage.
Standout benefits: You can apply in person or online if you don't live near a PNC Bank branch.
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Best for retired veterans
Navy Federal Credit Union
Annual Percentage Rate (APR)
Apply online for personalized rates
Types of loans
Conventional, VA, Military Choice, Homebuyers Choice
Terms
10 – 30 years
Credit needed
Not disclosed
Minimum down payment
5% for conventional loan, 0% for VA, Military Choice and Homebuyers Choice
Terms apply.
Pros
- 0% down payment for most loans
- Origination fee can be waived for 0.25% rate increase
- $1,000 rate-match guarantee
- No private mortgage insurance required
- Up to $9,000 back if you buy or sell through RealtyPlus program.
Cons
- Must be a Navy Federal member to apply
- Membership limited to active military, veterans and their families
- No USDA or FHA loans
Who's this for? Navy Federal Credit Union can be a good option for your mortgage if you or a family member have served in the Armed Forces.
Standout benefits: Navy Federal offers VA loans that allow borrowers to pay zero down and get up to 4% of the home's value toward closing costs. Plus, with this type of loan, you won't have to pay private mortgage insurance (PMI).
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More on our picks for best mortgage lenders for seniors
Rocket Mortgage
Rocket Mortgage is one of the biggest mortgage lenders in the country and ranks highest in customer satisfaction according to J.D. Power. It offers a quick online pre-approval process. Single-family homes, second homes, investment properties and condos are all eligible for refinancing.
Minimum credit score
580
Types of loans offered
Conventional loans, FHA loans, VA loans, jumbo loans, fixed-rate loans, ARM loans
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American Advisors Group
American Advisors Group (AAG) is one of the largest reverse mortgage companies known for its outstanding reputation. If you're unfamiliar with reverse mortgages, you can browse AAG's website for useful articles and tips. The company can also send you a free information kit to get you started. Alternatively, you can get in touch with AAG by phone and speak with one of the home equity specialists.
Minimum credit score
Not disclosed
Types of loans offered
HECM for Purchase, reverse mortgage loans, refinancing
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PNC Bank
PNC Bank is a large brick-and-mortar bank with approximately 2,300 branch. However, you can also apply for a mortgage onilne, which can be a plus if you don't live near a PNC Bank location. The online pre-qualification process if fairly quick if you have all the documentation on hand and similar to many other lenders, PNC Bank has a minimum credit score requirement of 620.
Minimum credit score
620
Types of loans offered
Conventional loans, FHA loans, VA loans, USDA loans, jumbo loans, HELOCs, Community Loan and Medical Professional Loan
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Navy Federal Credit Union
Navy Federal Credit Union is open to current and retired members of the Armed Forces, as well as their immediate family members. It has has 341 branches in 31 states.
In addition to VA loans, Navy Federal also offers the Military Choice mortgage, another loan option that comes with similar guidelines plus allows sellers to pay up to 6% of the property's value toward closing costs.
If you submit all the required documentation, you can be preapproved instantly. If the lender needs additional information, a home loan advisor will be in touch with you in one or two business days.
Minimum credit score
Not specified, but the credit union notes they will consider your banking history with Navy Federal as well as your credit score
Types of loans offered
Conventional loans, VA loans, Military Choice loans, Homebuyers Choice loans, adjustable-rate mortgage
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How to qualify for a mortgage
Lenders consider numerous factors to determine your eligibility for a mortgage. Criteria may slightly vary from lender to lender but generally, lenders look at your credit score, income, employment history, debt-to-income ratio, down payment and any assets that you have.
To be a strong candidate for a mortgage and qualify for the best interest rates, you'll want to apply with good or excellent credit (scores 670 and above). It's also helpful to make sure you have a low debt-to-income ratio (a DTI below 41% is generally considered ideal).
Income sources that qualify for a mortgage
Verifying your income is an important part of the mortgage application process because lenders want to make sure you earn enough money to pay back your loan. Lenders accept the following as qualified sources of income:
- Salary earned from working a full-time job for an employer
- Income from being self-employed, working freelance or doing gig work
- Income from working part-time jobs
- Tips, bonuses and commissions
- Interest and dividend income
- Income from IRAs, 401(k) plans and pensions
- Social security income
- Disability payments
- Parental leave payments
- Foster care payments
- Alimony and child support
- Income from a trust
- Unemployment benefits
- Rental or investment income
- VA benefits
- Military income
Kinds of mortgages you can apply for
Several types of mortgages are available, making it easier for you to find a home loan that works best for your needs.
- Conforming and nonconforming mortgages: A conforming loan is one that meets the underwriting guidelines ofFannie Mae and Freddie Mac. It should also be at or below the Federal Housing Finance Agency's (FHFA) loan limits loan limits (more on that here).
- Fixed-rate and adjustable-rate mortgages: As the name suggests, a fixed-rate mortgage has the same interest rate over the entire life of the loan while an adjustable-rate mortgage has an interest rate that can change at some point during the term.
- Conventional mortgage: This type of mortgage is offered through a private lender, like a bank or credit union. It can also be conforming or nonconforming.
- FHA loan: An FHA loan is a mortgage backed by the Federal Housing Administration (FHA) and typically requires a down payment of just 3.5%.
- VA loan: This type of loan is backed by the Department of Veteran Affairs and allows qualifying borrowers to buy a home without making a down payment.
- USDA loan: A USDA loan is backed by the United States Department of Agricultureand allows borrowers to purchase a home in eligible rural areas.
Is a reverse mortgage a good idea for seniors?
A reverse mortgage might not be a good idea for every senior, but for some homeowners, it can be a valuable tool.
For example, you may benefit from a reverse mortgage if you plan to continue living in the home and can easily keep up with your property taxes, homeowners insurance and costs of home maintenance. Failing to do so puts your home and its value at risk. Since the reverse mortgage uses your home equity as collateral, your lender may declare your loan due and require that you start making payments.
A reverse mortgage can also make sense if you and your spouse are 62 or older. In this case, you can put both of your names on the mortgage. If one of you dies, the other can continue receiving payments without having to pay anything back until they move or pass away.
However, if there's a possibility you might have to move out, whether due to health issues or other reasons, you might want to avoid a reverse mortgage. Loan closing costs on a reverse mortgage can run rather high, and if you move out too soon, you might not have enough time to offset them. Plus, moving will make your reverse mortgage payable, which will eat into your proceeds from selling the house.
Finally, if you're hoping for your heirs to inherit your home, a reverse mortgage can make it problematic. If they want to keep the home, they'll have to pay the mortgage balance to the lender. If they can't, the lender will sell the home and will put the proceeds (if there are any) into the borrower's estate.
FAQs
Are there special mortgage rates for seniors?
Since age isn't a factor considered in lending decisions, there are typically no special rates for seniors. The mortgage rate you'll get will depend on regular mortgage factors, including your credit score, loan type and term, the size of your down payment and loan-to-value ratio (LTV).
Can a retired person get a mortgage?
A retired person might be able to qualify for a mortgage. If you don't work but can prove you have a stable income or assets to pay for your mortgage, you can get approved for a home loan.
Examples of income and assets you can use include:
- Social security
- Pension
- Spousal or survivor's benefits
- Money from retirement accounts
- Annuity income
- Income from investments
Should you have a mortgage in retirement?
Having a mortgage paid off when you retire may sound appealing since it can lower your monthly expenses, but it doesn't always make sense.
For example, if you have a low mortgage interest rate, you may be better off investing the money to add a passive stream of income. On the other hand, if you have (or expect to have) limited income in retirement, eliminating mortgage payments might be a good move.
There's no universal answer to this question, so it's important to evaluate your specific situation. Working with a financial advisor may be beneficial to determine the best approach.
Why trust CNBC Select?
At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every mortgage review is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of mortgage products.While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics. Seeour methodologyfor more information on how we choose the best mortgages for seniors.
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Our methodology
To determine which mortgage lenders are the best for seniors,CNBC Selectanalyzed dozens of U.S. mortgages offered by both online and brick-and-mortar banks, including large credit unions, that come with flexible loan amounts and terms to suit an array of financing needs.
When narrowing down and ranking the best mortgages, we focused on the following features:
- Types of loans offered:The most common kinds of mortgage loans include conventional loans, FHA loans and VA loans. In addition to these loans, lenders may also offer USDA loans and jumbo loans. Having more options available means the lender is able to cater to a wider range of applicant needs. We also looked for lenders that offer loan and refinancing options that could work well for seniors, such as various types of reverse mortgages and cash-out refinancing loans.
- Fees:Common fees associated with mortgage applications include origination fees, application fees, underwriting fees, processing fees and administrative fees. We evaluate these fees in addition to other features when determining the overall offer from each lender.
- Flexible minimum and maximum loan amounts/terms:Each mortgage lender provides a variety of financing options that you can customize based on your monthly budget and how long you need to pay back your loan.
- No early payoff penalties:The mortgage lenders on our list do not charge borrowers for paying off the loan early.
- Streamlined application process:We considered whether lenders offered a convenient, fast online application process and/or an in-person procedure at local branches.
- Customer support:Every mortgage lender on our list provides customer service available via telephone, email or secure online messaging. We also opted for lenders with an online resource hub or advice center to help you educate yourself about the personal loan process and your finances.
- Minimum down payment:Although minimum down payment amounts depend on the type of loan a borrower applies for, we noted lenders that offer additional specialty loans that come with a lower minimum down payment amount.
After reviewing the above features, we sorted our recommendations by best for refinancing, reverse mortgages, buying a new home and retired veterans.
Note that the rates and fee structures advertised for mortgages are subject to fluctuate in accordance with the Fed rate. However, once you accept your mortgage agreement, a fixed-rate APR will guarantee interest rate and monthly payment will remain consistent throughout the entire term of the loan, unless you choose to refinance your mortgage at a later date for a potentially lower APR. Your APR, monthly payment and loan amount depend on your credit history, creditworthiness, debt-to-income ratio and the desired loan term. To take out a mortgage, lenders will conduct a hard credit inquiry and request a full application, which could require proof of income, identity verification, proof of address and more.
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Editorial Note: Opinions, analyses, reviews or recommendations expressed in this article are those of the Select editorial staff’s alone, and have not been reviewed, approved or otherwise endorsed by any third party.