Loans for Retired Borrowers

Loans for Retired Borrowers

For borrowers needing a purchase loan or refiance most lenders require qualification based on either"full documentation" of income (W-2's or tax returns) or "stated" income (for self-employed). There are also programs which require no income to be stated on the loan application ( "no ratio" or "no doc" programs). The catch for retired borrowers is that even with stated income, no doc and no ratio programs, the lender will require verification of 2 years employment in the same profession. 

This employment requirement is obviously a challenge for retired borrowers since generally there is no income from employment and no current employment history. So the retired borrower will fail to qualify for a mortgage loan with most lenders even though he/she may have substantial assets and a great credit history.

There are a few programs I have available for retired borrowers that are "stated income" or "no ratio" with no employment history required. The rates will vary depending on the borrower's credit profile and the loan-to-value, but are competitive in today's market. I have a 30 year fixed stated income program with an interest only option available in addition to a 30 year fixed no ratio program and several no ratio ARMS.