Can a Social Security Retiree Get a Mortgage?

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The Equal Credit Opportunity Act of 1974 prevents creditors from discriminating based on age or public assistance income.

You can apply for a mortgage using your Social Security income, but approval will depend on the lender's evaluation of your entire financial picture.

Although it may be more challenging, retirees who rely solely on Social Security benefits can qualify for a mortgage if the amount is sufficient.

A lender will also need documentation of your Social Security income, which you can get by seeking a "budget letter" from the Social Security Administration.

Mortgage lenders consider a borrower's debt-to-income ratio when determining loan eligibility.

Depending on the credit score, conventional mortgage lenders often require a DTI between 36% and 45% of consistent monthly income.

The federal government does not consider Social Security benefits, up to a certain limit, to be taxable, which can assist a senior obtain a mortgage.

Also, regardless of age, the higher your credit score and the larger your down payment, the greater your chances of obtaining a mortgage at a better rate.

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