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Mortgage loan for an 84 yr old?

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Carloscda40
Regular Contributor

Mortgage loan for an 84 yr old?

Is that even possible with them collecting Social Security?

Message 1 of 7
6 REPLIES 6
JoeRockhead
Senior Contributor

Re: Mortgage loan for an 84 yr old?

There's that whole little anti age discrimination thing going on, so if a 90 year old meets the minimum mortgage loan requirements for the loan they're applying for they can absolutely take out a 30 year mortgage. 

Message 2 of 7
MortgageMama
Regular Contributor

Re: Mortgage loan for an 84 yr old?

Mortgage lenders cannot discriminate based on age. The only requirement is that you are legally old enough to enter into a binding contract, which in most states is 18 years old.

The Federal Savings Bank / Member FDIC / Equal Housing Lender / Lending in all 50 States / 25 Years in the Mortgage Industry
Message 3 of 7
iced
Valued Contributor

Re: Mortgage loan for an 84 yr old?


@JoeRockhead wrote:

There's that whole little anti age discrimination thing going on, so if a 90 year old meets the minimum mortgage loan requirements for the loan they're applying for they can absolutely take out a 30 year mortgage. 


I would imagine that even with discimination protections in place any person of such age should expect more restrictive terms/conditions on a mortgage. As an example, it would be financially insane for a bank to give a 97% LTV 30-year mortgage to someone whose risk profile is such that they both have a near-zero chance of living long enough to pay back the loan and not enough equity in the home to offset the costs of dealing with probate/heirs/auction. Offering that same person a much lower LTV mortgage (ie, requiring a higher down payment) or much shorter repayment term would mitigate enough of that risk to make it acceptable.

Message 4 of 7
Mortgage-Specialist
Established Contributor

Re: Mortgage loan for an 84 yr old?

I've been an LO for 20 years and I've never experienced a single difference in approval status based on age. Most lenders use an AUS (automated underwriting system) for an automated approval. If I change the age from 30 to 120 years old it will give the same exact approval response - in which case the underwriter abides by the AUS results. IMO, they couldn't discriminate if they tried. Even if the borrower passes away soon after closing, it has zero impact on the underwriter so it wouldn't impact their decision. 

 

I'm sure in the past there was major discrimination based on age amongst other things

Message 5 of 7
iced
Valued Contributor

Re: Mortgage loan for an 84 yr old?


@Mortgage-Specialist wrote:

I've been an LO for 20 years and I've never experienced a single difference in approval status based on age. Most lenders use an AUS (automated underwriting system) for an automated approval. If I change the age from 30 to 120 years old it will give the same exact approval response - in which case the underwriter abides by the AUS results. IMO, they couldn't discriminate if they tried. Even if the borrower passes away soon after closing, it has zero impact on the underwriter so it wouldn't impact their decision. 

 

I'm sure in the past there was major discrimination based on age amongst other things


I'm both surprised and disappointed to hear this is the case. No lender should be forced to give favorable terms to someone with a high risk of default, even if that risk is because of something they are (age) rather than something they did.

Message 6 of 7
ShanetheMortgageMan
Super Contributor

Re: Mortgage loan for an 84 yr old?

The Equal Credit Opportunity Act (ECOA) says creditors (of any type) cannot discriminate based on age, and the Fair Housing Act (FHA) also says you cannot be discriminated against based on age when engaging in housing related activities (except for certain situations, such as determining if your income might drop because you are about to retire, or if you are not legally allowed to enter a contract because you haven't reached age 18).

 

https://consumer.ftc.gov/articles/mortgage-discrimination

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