You can qualify for a mortgage in retirement using Social Security, pensions, annuities and regular retirement account withdrawals, as long as the income is documented and expected to continue for at least three years. Non-taxable income like part of Social Security can often be “grossed up.” If your income is low but you have substantial savings, asset-based qualification can help.
Income lenders count
- Social Security: documented with your award letter and bank deposits.
- Pensions and annuities: award letters or statements.
- IRA and 401(k) distributions: regular withdrawals, if the account can sustain them for at least three years.
- Part-time work, rental income and investment income with a history.
Grossing up non-taxable income
Because some income isn’t taxed, lenders can increase it for qualifying, often by up to 25% depending on the program and your tax situation. $2,000 a month of non-taxable Social Security might count as up to $2,500.
Using your savings: asset-based qualifying
Some loans let you qualify on assets: the lender divides eligible savings and investments over a set period to create monthly income. It’s offered under some conventional rules and more widely through non-QM lenders; see non-QM loans.
Try it: Affordability calculatorEnter your retirement income to see a comfortable price and payment.Age doesn’t matter, legally
Lenders can’t deny you a mortgage because of your age; the federal Equal Credit Opportunity Act prohibits it. They evaluate income, assets and credit like anyone else’s.
Options to consider
- A shorter loan term or larger down payment to keep payments low.
- A reverse mortgage for purchase if you’re 62 or older; see HECM for Purchase.
- Buying with cash from a previous home sale, then keeping liquid reserves.
Plan the full cost of ownership with the true cost to buy, and talk to a financial advisor about how a mortgage fits your retirement plan.
Common questions
Can retirees get a mortgage?
Yes. Lenders can’t deny you based on age, and documented retirement income and assets can qualify you.
Does Social Security count as income for a mortgage?
Yes, documented with your award letter, and the non-taxable portion can often be grossed up.
Can I qualify using my savings instead of income?
Some loans use asset-based qualification, dividing eligible savings over a set period to calculate monthly income.
Updated October 2026. Educational content. OfferBacked is not currently a lender and doesn’t issue pre-approvals or loans.