Buying a Home in Retirement

Mar 24

Can you qualify for a mortgage after retiring?

Yes. Retirement does not automatically prevent you from buying a home with a mortgage. A lender reviews the income you can document, your debts, credit, assets, and the property. The goal is a payment that fits your retirement budget as well as the loan program.

Using retirement income

Retirement-account distributions may count as qualifying income when they meet the lender’s documentation and continuance requirements. Fannie Mae requires lenders to document that retirement-account distribution income is expected to continue for at least three years from the note date. The account balance alone is not a blanket rule allowing every borrower to count one thirty-sixth of total retirement assets as monthly income.

Bring your account statements, distribution documentation, and records of other income to the mortgage review. The lender can explain what documentation your particular loan requires before you change withdrawals.

Understand withdrawals before moving money

Age 59½ is generally the point when retirement-plan withdrawals are no longer subject to the federal 10% additional early-distribution tax. It is not a universal retirement age, and ordinary income taxes may still apply. Review any planned withdrawal with your tax adviser and financial planner before using retirement funds for a down payment or monthly income.

Plan the full housing budget

Compare the mortgage payment with property taxes, homeowners insurance, association dues, maintenance, and the savings you want available after closing. A larger down payment can reduce borrowing, but it also leaves less cash available for other needs.

Prepare for a mortgage review

Gather statements for the accounts you plan to use.
List your regular income, monthly debts, and intended down payment.
Discuss income documentation before setting up or changing distributions.
Compare payment options and remaining savings, not just the maximum loan amount.

For help reviewing a California home purchase, schedule a mortgage consultation. You can also read about using a 401(k) or IRA when buying a home.

Sources: Fannie Mae retirement-income guidance and IRS retirement-plan age guidance. Reviewed September 16, 2026. Loan approval depends on the applicable program and lender review.