Many people assume that reaching a certain age disqualifies them from getting a mortgage, but this is not true. While some logic may support the idea, age alone cannot legally prevent you from qualifying for a mortgage.
As long as you’re a legal adult (over 18), lenders cannot deny you a mortgage based solely on age—whether you’re 21, 60, or 99. However, lenders do need assurance that you can afford the mortgage and are unlikely to default. Here are the factors lenders actually consider:
Debt-to-Income (DTI) Ratio
Lenders typically want your total monthly debt obligations, including credit card payments, student loans, and projected mortgage payments, to be no more than 44% of your gross income. To improve your DTI, consider paying off as much debt as possible before applying for a mortgage, as this can increase your chances of approval.
Income
Lenders also prefer that your mortgage payment doesn’t exceed 36% of your monthly income. Higher income generally makes you more attractive to lenders, as it suggests a lower risk of default.
Age can indirectly affect this factor, though, as income sources often change over time. Younger applicants might rely primarily on their salary, whereas older applicants may draw income from pensions, investments, high-yield savings, and other sources. As long as you can demonstrate steady income, these sources are typically acceptable to lenders.
Credit Score
Your credit score is one of the most critical factors in mortgage approval, regardless of age. A higher score generally leads to better loan terms and interest rates, with lenders typically considering a score of 660 or above as a good credit score.
If your score is below this threshold, consider improving it by responsibly using credit and paying down debt consistently. Regular, timely payments can significantly enhance your credit profile over time.
Key Takeaways
Lenders assess financial stability, not age, when approving mortgages. By managing debt, maintaining steady income, and building a strong credit history, you can improve your mortgage eligibility at any age.