Ask Terry Questions Mortgages for Seniors

Mortgages for Seniors

By Terry Savage on April 20, 2016 | Housing / Real Estate

Terry: We are retired (63/60) with a healthy portfolio of assets ($2.7mm), but modest income ($30,000) of dividends and capital gains — no Social Security. Yet. We are thinking of moving to a new home, and a mortgage may be required to transition from one to the other. Questions: Would we even qualify for a traditional 15 / 30-year mortgage? Is an “asset based mortgage” a real thing?

Terry Says:  Under current rules, banks cannot make mortgages to those with no income (or very little income) no matter how much money they have in the way of other assets.  I’m going to ask you to reconsider this plan.  Why can’t you sell your current home first, and then buy the new one?  That is the way to do it.  Unless you have “free cash” in a bank, (they don’t count IRA assets for mortgages because they can’t “attach” them; they are held in trust), you can’t borrow additional money, even for a short time..  But if you do have  cash you might get a personal loan for a short time if you have enough money in the bank.

money

ASK TERRY

a personal
finance question