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Old 02-10-2015, 11:00 PM
15 posts, read 17,533 times
Reputation: 27


If I am planning to live in a house in another city and state after retirement (say, in a few years), would I be eligible to get a mortgage from a lender now to buy a second house in the post-retirement city? Or would they look at my age and deny coverage although everything else is good on my record? Would I be able to get favorable lending terms for a second house for now but later be allowed to rent it out until I finally move after retirement? Thanks for your thoughts as I explore this option. I currently have a decent job, am 55 years, have good credit history, paid-up house, etc.
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Old 02-11-2015, 01:22 AM
Location: Pennsylvania
16,355 posts, read 10,343,687 times
Reputation: 28521
I'm not sure about which state to finance in but my thought would be the bank you're already with. They know you and with all the online banking, I doubt location would be an issue once you get the loan.

Sounds to me like you would qualify. You've got a lot going for you financially. If you do use it as a rental, I'd definitely get a property manager. Yes, you will pay them but since you're in another location, the security of having someone else watching the place and the tenant would be well worth it.
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Old 02-11-2015, 03:02 AM
71,619 posts, read 71,751,865 times
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from what i have read morgages in retirement can be tricky . the banks need to see cash flow established and no matter what you have in assets they don't want just random pulling from assets.

some have said they were forced to file for social security even though they wanted to delay.
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Old 02-11-2015, 05:28 AM
Location: CT
3,461 posts, read 1,856,473 times
Reputation: 4614
Why couldn't you apply for a mortgage now? You have a job and you have full equity in your house, as far as the bank is concerned you're a good risk. They also don't know when you want to retire, as far as they know you have 10- 15 years left in your work life. But, the bottom line to you is, can YOU afford it? What will your income be after you retire? If you know the finances and they add up, go for it. If the house you're looking at costs less than what your current home is worth, and you want good terms and an easy transaction, how about a home equity line of credit?
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Old 02-11-2015, 05:36 AM
Location: ☀️ SWFL ⛱ 🌴
2,435 posts, read 1,669,408 times
Reputation: 8693
We got a mortgage at age 58 with no issues. Pre-approval was given in a few days. Our local community savings bank does not do out of state mortgages. Our realtor tried to steer us to local banks they had done business with, but we chose our credit union who did out of state mortgages. They had the best rate and we felt comfortable with them. They were a good choice with personal service and were easy to communicate with.

Our other house had been paid off for 15 years, we had bought it 30 years ago and we were surprised by how things had changed for getting a mortgage. It is paperwork, more paperwork and even more paperwork. Lenders want it all: W2's, prior tax returns, and proof of where any recently transferred money in your bank accounts have come from and then the underwriters want that and even more. It's tedious but lenders tightened up their lending practices after the housing bust.

With your house paid off, good credit and being currently employed, you should have no problem getting a mortgage.
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Old 02-11-2015, 05:58 AM
Location: Loudon, TN
5,785 posts, read 4,838,667 times
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I agree with Jean (above). All that matters is the finances, not age. They have no idea when you will retire. Don't even bring that up. They may have more stringent lending rules for a home that will be a rental, but if you qualify, there is no reason for them to deny it based on age. Pre-approvals vary by lender. Some will give you a pre-approval letter with just the basic proof of income to indicate that are income qualified (tax return or paystubs). I would think that your own bank or credit union would be a good place to start.
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Old 02-11-2015, 07:47 AM
Location: it depends
6,074 posts, read 5,335,268 times
Reputation: 5771
Second home strictly for personal use can be financed about as easily as your primary residence. Financing rental property is much more difficult. So were I you and it made sense to buy now, I would plan on living in the second home personally with zero rent intention. If you changed your mind a day or three after closing, well, it is a free country.
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Old 02-11-2015, 07:57 AM
1,227 posts, read 1,260,355 times
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This is what a mortgage broker told me regarding banking law: if you purchase a second home for personal use, it would become bank fraud if you begin renting it out too soon. It was suggested to me that I keep the house solely for personal reasons for no less than 1 year -- but the longer the better -- after getting the mortgage.

Also, you would need different types of homeowners insurance depending upon whether it was a second home or a renal property.
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Old 02-11-2015, 09:03 AM
Location: East of Seattle since 1992, originally from SF Bay Area
29,806 posts, read 54,470,896 times
Reputation: 31111
With good credit, verified steady income, good income/debt ratio you can get a mortgage at age 85 if you want to. By law they cannot discriminate on the basis of age, even knowing that most people won't make it to age 115 to pay off a 30 year loan. My parents bought at age 72/73 with no problem.
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Old 02-11-2015, 09:24 AM
Location: We_tside PNW (Columbia Gorge) / CO / SA TX / Thailand
22,592 posts, read 39,962,822 times
Reputation: 23726
Get the home now, while you can qualify.

Mortgages have changed dramatically after 2008, so better take the 'safe' route. (Get mortgage while you have stable employment and income, rates are currently very attractive. You can always pay it off later).
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