You’re Never Too Old to Buy a Home: Financing for Seniors

Liana Pomeroy
Sep 8
4 min read

A group of seniors sitting around a table playing cards together, smiling and enjoying each other’s company with glasses of wine nearby.

Retirement isn’t the end of your homeownership journey. In fact, with the right strategy, it can be the beginning of a smarter next move.

Whether you’re 62 or 82, you still have options. The key is making sure your financing lines up with your goals: downsizing, freeing up cash, creating multigenerational living, or simply lowering your stress.

Step 1: Get Clear on Your Goals

Before you even look at loans, get clear on what you want this next chapter to look like.

Do you want to:

Downsize into a single-level home that’s easier to maintain?
Free up cash for healthcare, travel, or everyday living expenses?
Move closer to family or create multigenerational living for support?
Transition smoothly without the hassle of two moves?

Once your priorities are clear, the right financing path becomes much easier to see.

Step 2: Know Your Options

There isn’t one “senior loan.” There are multiple financing tools available, each with pros and cons. Here are the most common:

Conventional Loans

Yes, you can still qualify. Lenders use retirement income, Social Security, pensions, and even assets. A conventional loan can be used to:

Buy a new home.
Do a cash-out refinance to pull equity for repairs or lifestyle needs.
Purchase an investment or vacation property.

The biggest benefit? Conventional loans typically keep costs lower and preserve more equity for your heirs.

HELOCs (Home Equity Lines of Credit)

Think of a HELOC as a flexible line of credit against your home’s equity. Many lenders will approve up to $250,000 without an appraisal. A HELOC can be used for:

Covering a down payment on your next home.
Funding renovations or accessibility updates.
Supplementing living expenses without touching retirement funds.

Bridge Loans

Need to buy before you sell? A bridge loan gives you the funds to purchase your new home without waiting for your current one to close. This helps avoid stressful back-to-back closings and temporary housing. They can be more expensive, but sometimes they’re exactly what’s needed.

Reverse Mortgage Purchase

This option allows you to buy a new primary residence without a monthly mortgage payment. You put down a large down payment (typically around 50%) and the reverse mortgage covers the rest. For seniors focused on cash flow and peace of mind, this can be a game-changer.

Reverse Mortgage Refinance

This is actually the most common use of a reverse mortgage. Many retirees refinance into a reverse mortgage to:

Eliminate their current mortgage payment.
Access extra cash for lifestyle needs, healthcare, or day-to-day living.

There are two main options:

HECM Line of Credit – Draw only what you need, when you need it. The available credit even grows over time.
Fixed-Rate Lump Sum Payout – Take all the funds at once for larger expenses, in-home care, or simply to shore up reserves.

The right choice depends on your lifestyle, health, and long-term goals.

Asset-Based Lending

Even if your taxable income looks modest, you may still qualify based on your assets. Retirement accounts, 401(k)s, IRAs, brokerage, and investment accounts can all be used. Lenders apply a formula to turn your assets into a qualifying “income stream,” which is then added to your Social Security or pension income.

This can make the difference for seniors who have wealth but don’t show much taxable income.

Step 3: Build a Strategy That Works for You

Your home is more than just a roof. It’s one of your most valuable financial tools. The right financing can free up cash, reduce stress, and allow you to live life on your terms.

Here’s an example from a client of mine:

She wanted to move closer to family. She had Social Security, a pension, and a good retirement account, but she wasn’t touching her investments yet. She also had a lot of equity in her current home.

Here’s the strategy we built together:

She pulled a HELOC against her current home for flexibility.
We used her investment and retirement assets (not yet being drawn on) to supplement her limited Social Security and pension income. That helped her qualify for both her current home’s obligations and a conventional loan on the new purchase.
Once her old home sold, she paid off the HELOC and paid down the new conventional loan to a smaller, manageable balance.

Her lifestyle dramatically improved. She’s closer to her family, she has a comfortable monthly payment, and her net worth is still growing because she’s building equity in her new home.