Today, few pensioners live on just one benefit, because it is small. Many continue to work and even think about purchasing real estate by issuing a mortgage loan. At the same time, they have a lot of questions about whether this type of lending is available to them and what kind of mortgage is available to pensioners?
It’s not easy to get a mortgage
It is quite problematic to get a loan for the purchase of a real estate in old age, and yet there is such a possibility, however, it will have to make every effort to achieve the desired result. Retirees are more likely to accumulate money and financial organizations are aware of this, and therefore are not against entering into a mortgage loan deal with individuals who have savings or are able to provide additional security in the form of real estate.
Different banks set their own age limits. So there are financial organizations where you will have to pay the mortgage up to 66 years, while other banks increase the maximum age to 75 years. At the same time, each bank will ask the borrower to issue a personal insurance policy, while the older the borrower becomes, the more expensive this policy will cost him, and it will have to be extended until the end of the loan period.
Offers from banks
Currently, very few financial organizations issue loans for the purchase of real estate to persons of retirement age. If you want to make such a deal, you should pay attention to Bank of America, where you can take from 300 thousand for the purchase of the suburban real estate, housing under construction, building your own house, or buying ready-made housing. The terms of the loan and the amount of the initial payment affect the amount of the annual rate. The retirement age limit for mortgages is 75 years.
For the purchase of real estate from the primary and secondary markets, you can apply for a loan in Bank of America and Capital Bank. In these banks, loans are issued to persons under 70 and 75 years of age, respectively. Among all American banks, these financial organizations offer the most favorable mortgage lending conditions for pensioners. On their official websites, you can find credit calculators that will help pensioners make preliminary calculations on their mortgage and make a final decision on whether to issue such a loan at all.
Alternative mortgages for pensioners
If the pensioner has a young relative with an official place of work and a positive history of the borrower, you can ask him to take out a mortgage on himself, and pay the debt for the loan property yourself. Another option is to enter into a simple consumer credit transaction. Such loans are given to pensioners more readily, and a large number of financial organizations have them.
But this option is not always suitable for a pensioner, but only in the case of purchasing inexpensive real estate, for which he will be able to pay in just a few years.