My ex neighbor (good friend) has no children and is single (said he will not marry), in his 70s. He wants to buy a house, and said what if he buys an expensive one with large mortgage, and enjoy the nice house while he's living, and let the bank collect whatever remains of his mortgage after he dies. He wants
My ex neighbor (good friend) has no children and is single (said he will not marry), in his 70s. He wants to buy a house, and said what if he buys an expensive one with large mortgage, and enjoy the nice house while he's living, and let the bank collect whatever remains of his mortgage after he dies. He wants to know if the banks would take his age into account when deciding on the mortgage application. I'm not sure. Anyone knows? Basically he meant he will not care about owing money during lifetime
Maybe my original question sounded a little exaggerating, he's actually very physically active, jogging and all that. I know his age but others would think he's younger by looking. may live another 20 years seems to me, who's to say he may not outlive me 🙂
Who: Age has no bearing on getting a mortgage. They look at the income and down payment. For a retired person they look at how much they withdraw from retirement accounts and they must have 5 years worth of withdrawals in the accounts, also SS, interest and rental income. So say you have 1,500 from SS and withdraw 5,000 from IRA and 5,000 from ROTH it looks like you have 11,500 income and will qualify for a mortgage based on that.
Seventy isn't old but even at 90 you might live long enough to build equity. Most borrower only keep a mortgage 7 years, we refinance, sell or get foreclosed so he will live long enough to be about average.
He can find heirs, even a charity can be an heir. The heir will want the equity and sell the home when he dies.
My boyfriend bought a house at 66 zero down he will probably have enough equity when he dies worth selling his house. We are both 69 and
I plan to buy a new house with a mortgage in another year or two so have looked at qualifying.
Another choice is to pay cash or get a reverse mortgage so you can buy with 50% down and now payments.
At his age he has to pay cash because no bank will loan him any money for a house.
The bank will definitely take into consideration,his age,and deny any mortgage.
Other than age, does he have a high credit score and no other debt?
Does he have a monthly income of 3 times the amount of a monthly mortgage
payment? He must show pay stubs and tax returns to prove it. Any bank would
be hesitant to approve a mortgage for a 70 year old person.
If he has no credit or proof of incone, no bank in the their mind would approve him for a mortgage. I was a credit manager for a jewelry store and a clothing store for 10 years and the customer stated they had A-1 credit. When I ran the reports, most were charge-off account
if he can qualify for a mortgage it won't matter how old he is but if he doesn't have a huge down payment it is not likely he can show income to support a mortgage
if he does get the mortgage and has no one to inherit the house, when he dies the mortgage lender will foreclose on it and sell it, even if he had someone to inherit it they would have to refinance the remainder loan in their name, they cannot assume his loan
They'll take into account his ability to repay the loan.
While they cannot discriminate on age they do have to see income and money in the bank does not count. Most people of his age who do not work have to pay cash or put a huge down payment on it
yes, he will probably have to carry insurance sufficient to pay off the loan, then if he has no will the state will get the house IF the "standard order of inheritance" is empty
standard order is usually, spouse, kids, parents, siblings, heirs of deceased siblings
No bank will give him a mortgage at his age. He has also to prove he can pay the monthly payments., and give a huge down payment,
Not really sensible is it?
No bank would lend money to anyone who would not be able to pay it back, especially if they are likely to expire before the loan is paid off.