FHA Discussion

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FHA Loans for Seniors in 2023

FHA Loans for Seniors

FHA Loans for Seniors

Senior citizens can qualify for an FHA loan if their retirement income is sufficient to qualify for the mortgage.

Many people believe that seniors cannot qualify for an FHA loan due to the employment requirements. However, no job is needed for seniors because their retirement income is a valid substitute for employment income.

How Does FHA Define What is a Senior?

From a lending perspective, a senior is someone who is of retirement age or is already retired and who has a steady and stable retirement income that can be used to qualify for a mortgage.

FHA Loan Options for Seniors

Seniors can qualify for the following types of FHA Loans:

  • FHA 203b
  • FHA Refinance
  • FHA 203k
  • FHA One Time Close Construction Loan
  • FHA HECM Loan

Seniors will need to meet all of the qualifications for an FHA loan with the exception of the work history.

FHA Employment Requirements For Seniors

There are no FHA employment requirements for seniors because seniors do not need to have a job if their requirement income is high enough to qualify for the mortgage.

If seniors prefer to work during their retirement, that is permitted even if the job is part time. Read [FHA loan with a part time job]

If you are recently retired or just about ready to retire, you can still get approved for an FHA loan.

FHA Income Requirements for Seniors

When applying for a mortgage as a senior, your retirement income must be high enough to qualify for the mortgage that you are applying for. That income must be steady and expected to continue for at least two years.

You can use retirement income plus the income from a job if you are still employed or if you have found a side job in retirement.

The maximum allowable debt to income ratio for seniors for an FHA loan is 56.9%.

HECM Program for Seniors

The HECM program is the FHA’s version of a reverse mortgage. It is a refinance program and cannot be used for purchases.

With this program, seniors are able to cash out equity from their home to help pay for bills or for any other purpose. The loan does not have monthly payments and will not get repaid until the home is eventually sold.

FHA Loans for Seniors – FAQ

Can a 70 year old get a 30 year mortgage?
A 70 year old can get a 30 year mortgage if they are able to meet the minimum requirements for the mortgage. There are laws in place which prohibit lenders from discriminating based upon an applicants age.

Can a retired person get an FHA loan?
A retired person can apply for and potentially get approved for any of the available FHA loan programs.

Can you get an FHA loan on Social Security?
You can get an FHA loan using social security income if it is expected to continue for at least the next two years.

Bottom Line

If you are a senior citizen, you may qualify for an FHA loan to purchase or refinance your home. There are no employment requirements but you must meet the minimum credit and income requirements as per the FHA guidelines.