For many newly minted retirees, this new season of life may also come with a new home search. Maybe it is time to downsize, move closer to family, try a new community or simply find a home that better fits the way life looks now. Whatever the reason for the move, retirement does not have to mean putting homeownership on hold.
According to recent data from the National Association of REALTORS® illustrates just how significant older buyers have become in today’s housing market. Baby Boomers accounted for 42% of home buyers in NAR’s 2026 Generational Trends report, making them the largest generational group of buyers. NAR also reports that buyers in their 60s and 70s continue to use mortgage financing.
That raises a practical question for anyone considering a move after retirement: How does buying a home work when the paycheck has been replaced by retirement income and other assets? In many cases, buying a house after retirement is possible. The key is understanding how retirement income, assets, credit and monthly expenses factor into mortgage qualification.
Retirement Income Can Count
Retirement income can come from several sources, including Social Security, pensions, annuities and distributions from retirement accounts.
For conventional loans following Fannie Mae guidelines, qualifying retirement income can be documented through items such as benefit statements, retirement award letters, account statements, tax returns, W-2s or 1099s. Requirements vary depending on the type of income and how it is received.
That means retirement itself is not automatically a barrier to getting a mortgage. What matters is whether the income can be documented and is expected to continue according to applicable underwriting requirements.
Social Security and Pension Income
For borrowers receiving Social Security or pension income, documentation generally focuses on the amount and consistency of the benefit.
A mortgage professional can explain what documentation may be needed for verification based on the specific loan program and income source. Because requirements can vary, it is helpful to begin the conversation before starting a home search.
Retirement Account Distributions May Be Considered
Retirement savings can play a role in mortgage qualification, but the treatment depends on how the funds are being used.
Fannie Mae guidelines allow certain retirement account distributions to be considered as qualifying income when applicable requirements are met. Fixed distributions may be treated differently from variable distributions, which can require a documented history of receipt.
In some circumstances, eligible retirement assets can also be used in an income calculation. Current Fannie Mae guidance provides specific requirements for using eligible employment-related assets to generate qualifying income, including rules concerning account access, age, loan terms and funds needed for the transaction.
Because these calculations can be complicated, borrowers should not assume that the full balance of a retirement account translates directly into mortgage income.
Your Monthly Budget Still Matters
Mortgage qualification is only one part of the decision.
Retirement often changes the household budget. Employment income may decrease, while health care, travel, home maintenance or other expenses may become more significant. A mortgage payment that technically fits underwriting guidelines may not necessarily be comfortable for every household.
Consider the full monthly picture, including principal and interest, property taxes, homeowners insurance, HOA dues and ongoing maintenance.
The goal should be a payment that works with the retirement budget, not simply the maximum amount a lender may approve.
Buying and Selling at the Same Time
Some retirees purchase a new home after selling an existing property. Others may buy before selling, particularly when moving to a new city or trying to avoid temporary housing. If proceeds from an existing home will fund the down payment, timing becomes important. A lender can help evaluate how the sale proceeds may affect the purchase and what documentation may be required.
For buyers age 62 and older who are considering a move in retirement, a HECM for Purchase may also be worth exploring. This type of reverse mortgage allows eligible buyers to purchase a new primary residence with a combination of a down payment and reverse mortgage financing, without required monthly mortgage payments on the reverse mortgage portion as long as the loan requirements are met. The down payment is typically funded with proceeds from the sale of the buyer’s previous home or other eligible assets.
A HECM for Purchase is not the right fit for every buyer, and borrowers remain responsible for property taxes, homeowners insurance, maintenance and other required housing costs. Still, for retirees who want to relocate while managing monthly expenses, it can be another financing option to discuss.
Credit Still Matters
Retirement does not eliminate the importance of credit history. Payment history, outstanding debt and other credit factors can still affect mortgage qualification and pricing. Before applying, buyers can review their credit reports through AnnualCreditReport.com, the federally authorized source for free credit reports from Equifax, Experian and TransUnion.
Once the homebuying process begins, it is also smart to avoid unnecessary financial changes. Opening new credit accounts, taking on significant debt, financing a large purchase or making large unexplained transfers can create additional questions during underwriting. When in doubt, discuss major financial moves with a mortgage professional before making them.
Consider the Home’s Long-Term Fit
Buying after retirement can be an opportunity to choose a home around the lifestyle desired for the next stage of life.
Think about stairs, maintenance, proximity to family, access to health care and transportation. A smaller home is not automatically the right choice, either. The right property depends on how the household expects to live over the coming years.
AARP’s latest research found that 75% of adults 50 and older want to remain in their current home as they age, while many others expect to relocate at some point.
Ready to Buy a House After Retirement? Start With a Conversation
The best time to determine whether a mortgage fits a retirement plan is before making an offer. A lender can review income sources, assets, debts and the anticipated housing payment to help establish a realistic price range. Buyers can then shop with a clearer understanding of what fits their financial picture.
Retirement can open the door to a new chapter, and for many buyers, that may include a new home. With qualifying income, assets and a budget that supports the mortgage payment, buying a home can be part of the plan well into retirement. The key is understanding how retirement income and assets may factor into the loan and finding financing that fits the bigger financial picture. If a new home is part of the next chapter, Mutual of Omaha Mortgage offers resources to help buyers explore their options.
