Best Mortgages for Seniors in 2025

Who’s this for? Longtime homeowners with lots of home equity will like that Rocket Mortgage lets you cash out the full value of your home, compared to the 80% to 90% most lenders put as a cap.

Standout benefits: The average closing time for refinancing with Rocket is 21 days, nearly half the national average. Plus, borrowers can get verified approval in two hours.

Who’s this for? Finance of America offers a broad range of loans for seniors, including home equity conversion mortgages (the most common type of reverse mortgage) and jumbo reverse mortgages that let borrowers 55 and older take out up to $4 million.

Standout benefits: Finance of America’s home-sharing service helps homeowners find compatible roommates so they keep their home and supplement their income.

Who’s this for? Discover boasts lower-than-average rates on home equity loans and accepts a 90% combined loan-to-value ratio, higher than many other lenders.

Standout benefits: Discover doesn’t charge lender fees or closing costs on home equity loans.

Who’s this for? FourLeaf Federal Credit Union has home equity lines of credit (HELOC) with a generous $1 million draw maximum. It’s also one of the few lenders that lets you convert some or all of your variable-rate HELOC into a fixed-rate one.

Standout benefits: Membership in FLCU only requires a $5 deposit and there’s no annual fee for HELOCs.

Who’s this for? Navy Federal Credit Union offers affordable rates on VA loans, with the option to lower your rate without refinancing for a nominal $250 charge.

Standout benefits: NFCU’s 1.00% origination fee can be waived if you opt for a 0.25% rate increase.

Who’s this for? Bank of America ranked near the top for customer service on J.D. Power’s 2024 mortgage origination survey and has more than 3,800 branches for face-to-face service.

Standout benefits: Borrowers in Dallas, Detroit, Los Angeles, Miami and Charlotte, North Carolina, who earn up to 80% of the area median income can apply for Bank of America’s Affordable Loan Solution, a 3% down mortgage with flexible credit score requirements and no mortgage insurance. It can also be combined with up to $10,000 in down payment assistance grants.

Whether it makes sense to take out a mortgage when you’re nearing or in retirement depends on your financial situation. Self-employment earnings, Social Security, pensions, retirement plans and investment dividends can all help you qualify for a mortgage.

If you expect to have a limited income, however, and it would be hard to keep up with a new mortgage, paying off your existing loan and staying put may be the smartest move.

If you can make a generous down payment and afford your monthly payments, however, a mortgage could help you change scenery, downsize or move closer to family.

If you need cash, a cash-out refinance or home equity loan could save you thousands compared to a personal loan. They put your home on the line, however — a serious risk at any age.

Home equity loan

With a home equity loan, a lender provides a lump sum equal to a percentage of the value of your home.
Repayment is made monthly over between 5 to 30 years. Homeowners typically need a 620 credit score, a debt-to-income ratio of 43% and 20% home equity.

HELOC

A home equity line of credit (HELOC) is a secured line of credit that uses your home as collateral. There’s typically a 10-year draw period and a 20-year repayment period. A HELOC might be a good option if you have an ongoing project or renovation expense and are unsure how much you will need. Homeowners typically need a 620 credit score, a debt-to-income ratio of 43% and at least 20% home equity.

Home equity sharing

In a home equity sharing agreement, an investor gives a homeowner cash in exchange for a portion of their home’s future value. Repayment, plus a portion of the home’s accrued value, is due after a set term or whenever the home is sold. You can get approved with a credit score as low as 500 but you’ll need at least 25% equity.

Cash-out refinancing

With a cash-out refinance mortgage, you receive a new mortgage that is larger than your original home loan. After the balance of your current mortgage is paid, the remaining funds are yours to spend. Repayment is due in monthly payments over a 10- to 30-year term. Homeowners typically need a 620 credit score, a DTI of 43% and at least 20% equity remaining in their home after the refinance.

Government-backed loans

FHA, VA and USDA mortgages are easier to qualify for than conventional mortgages and they usually come with better rates and more flexible credit scores. They have some unique restrictions, however: Only current or former service members are eligible for a VA loan and USDA loans are only for income-approved borrowers in eligible rural and suburban areas.

Conventional loans

A good credit score, low debt-to-income ratio and a sizable down payment will go a long way to securing you a conventional mortgage.

A shorter fixed 15-year term could get you a lower rate than the typical 30-year term, though your monthly mortgage payments will be steeper.