Decreased monthly incomes among retirees are making it more difficult for people in this age group to buy homes, as many are now unable to qualify for a mortgage now that lending standards have been tightened up.
No matter if they’re planning on buying a new home to spend their golden years in, or simply trying to refinance their current mortgage, a growing number of retirees say they are being knocked back in their mortgage applications, reports the Washington Post.
Take the startling example of 68-year old Jim Eberle, with a credit score of 826 and a seven-figure net worth, who attempted to refinance and take advantage of the current record low interest rates. Incredibly, his application was rejected by his lender. A shocked Eberle told the Washington Post that he’d previously had eight home loans over the past 45 years, having never been rejected before.
So why are retirees being turned down? Quite simply, they don’t have enough income anymore, say experts.
However, financial experts say that retirees shouldn’t lose hope. The Washington Post points out that many loan officers are unaware of a variety of techniques that asset-rich retirees can employ to secure a mortgage.
So long as a retiree has sufficient assets, they should be able to obtain a new mortgage or refinance an existing one. The key, say experts, is to seek out experienced loan officers who are willing to work with them to secure the deal they need.