Lauren Nygren | Senior Loan Officer | Cherry Creek Mortgage
Many retirees are choosing to relocate to be near their children and grandchildren, prioritizing family connections over traditional retirement destinations. A study by the National Association of REALTORS®️ found that moving closer to family and friends was the primary motivation for home purchases among repeat buyers. In the 2024 survey, buyers aged 65-74 comprised 30% of the repeat buyer population and 24% of all buyers. This shift reflects a growing desire for emotional support, caregiving assistance, and a stronger sense of community.
Recent market volatility has left many retirees hesitant to liquidate investments for a significant down payment on a new home. Often, buyers prefer to identify a new home before listing their current one and realizing their proceeds. There are numerous ways to bridge this gap and restructure a loan or even pay it off in full after a sale.
Obtaining a mortgage without traditional income should not be daunting and might be easier than you think! Lenders consider alternative income sources such as social security benefits, pension distributions, and investment income (such as dividends and rental income). Co-signers or joint applications with family members can also strengthen the mortgage application. Reverse mortgages allow buyers aged 62+ to purchase a home with very little income and no monthly payment obligation.
Retirees can explore several mortgage options tailored to their financial situation to make purchasing possible. Asset depletion loans enable lenders to calculate income based on asset balances rather than traditional income. A Family Opportunity Mortgage allows buyers to purchase a home with primary residence terms and rates on behalf of elderly parents who lack qualifying income.
With careful planning and the right financial strategy, retirees can successfully secure a mortgage and move closer to loved ones. Understanding alternative lending options and leveraging assets can make the transition smoother.