Can a lender turn me down because of my age?
No. The Equal Credit Opportunity Act bars lenders from discriminating based on age, as long as you're old enough to sign a contract. A lender can still look at your income, assets and credit like any applicant's, including whether income will continue, but your age alone can't be the reason for a denial.
How is Social Security counted?
If the benefit is on your own work record, Fannie Mae doesn't require proof it will continue. An award letter, an SSA-1099, your tax return or bank statements showing the deposits can document it. Benefits on someone else's record, such as a spouse's, need to be expected to continue for at least three years.
Because part of Social Security is often not taxed, lenders can "gross up" the untaxed portion, which can raise the income they count.
What about pensions, annuities and IRA or 401(k) withdrawals?
A pension is documented with an award letter, a benefit statement, bank statements or your tax return. For regular withdrawals from an IRA, 401(k) or annuity, the lender needs to see the income can continue for at least three years from your application, which usually means showing the account balance can support it. You also need access to the account without a penalty.
Can my retirement savings count as income?
Sometimes, even without set withdrawals. Fannie Mae allows employment-related assets, such as a 401(k), IRA or lump-sum retirement payout, to be used as qualifying income. The lender takes the balance, subtracts any early-withdrawal penalty and the money you'll use to close and keep in reserve, and divides what's left by the number of months in the loan term. It's for purchases and limited cash-out refinances of a home you'll live in or a second home, and there are other conditions, so ask Tom whether it fits.
How do I time downsizing?
Many retirees sell one home and buy another. If you want to buy first, options include using savings, a bridge loan or a HELOC on your current home; the buy before you sell guide walks through them. Some buyers pay cash and then decide whether a mortgage makes sense to keep savings invested; Tom can show both.
What should I know about moving to New Hampshire?
New Hampshire has no income tax on wages, and its Interest and Dividends Tax was repealed for tax periods beginning after December 31, 2024. Property taxes are the bigger local cost and vary a lot by town, so compare the full payment, not just the price. The moving from Massachusetts guide and the property tax calculator help. Some towns offer elderly exemptions and deferrals; see property tax relief.
What should I gather?
- Social Security award letter or SSA-1099
- Pension award letter or benefit statement
- Recent statements for retirement and bank accounts, all pages
- Your last two years of tax returns if the lender asks
- Details on any home you're selling
Tools for this topic: Affordability calculator · Property tax calculator
Sources
- CFPB, Is a lender allowed to consider my age or where my income comes from when deciding whether to give me a loan?
- Fannie Mae Selling Guide B3-3.4-15, Social Security Income
- Fannie Mae Selling Guide B3-3.4-03, Annuity, Pension, or Retirement Income
- Fannie Mae Selling Guide B3-3.4-06, Employment-Related Assets as Qualifying Income
- NH DRA, Interest and Dividends Tax
Checked October 2026. Limits and program rules change, so confirm current figures before you rely on them.
General information only, not tax or legal advice. Program availability, eligibility and terms vary by lender and are subject to change and to underwriting approval. Not a commitment to lend.