Sure, mortagages are available to anyone over 18. To make them less so based on age alone is discriminatory. She will need to meet the same income/debt ratio guidelines as anyone else, and depending on the property she chooses, the bank may require more down payment, but she should not have any difficulty with obtaining a mortgage. Why would she? If she only manages a few years of payment before she dies, then either her estate keeps up the mortgage or the bank takes over the property. It's an all win situation for the bank if the property is worth loaning money on in the first place.

FWIW, even if she didn't have sufficient income to qualify retired people can sometimes qualify through an asset depletion loan. This is a loan that is based upon depleting assets over a period of time that is based upon life expectancy. This is the type of loan used for example by someone who is retired with no pension but who has a high net worth.

Wouldn't it be easier for her to get either a mortgage or a home equity loan against the house she already owns and then use that money to buy the new house? Just a suggestion.

Believe it or not, "death" isn't really something a mortgage company cares too much about. When a mortgage holder dies, the mortgage must be taken care of one way or the other to clear the estate.

Also, SS and pensions are fixed incomes, so they don't worry about you losing your job etc.

The only thing I'd worry about it tax implications. Some states have exemptions for age for taxes on primary residences. There are also capital gains exemptions for the sale of a primary residence, but you have a 5 year window to sell. That still would be something to keep in mind since you never know what life will throw at you.

Thanks everyone.
Seems I was mistaken :)

But about the preapproval letter- is that something that can be relied upon or is there something more solid?

"I think she should buy the new home outright but for whatever reason she is reluctant to do that."

To buy a home outright when her residense is not yet sold would could mean depleting her fluid investments and savings. It's understandable why she wouldn't want to do that. If she needed a lot of money quicky, she'd be dependent on selling one of the houses quickly for whatever she could get out of it. She'd be house poor.

Maybe it's time to get rid of some of the stuff and not just move it.

"Maybe it's time to get rid of some of the stuff and not just move it."

Do you seriously think that hasn't been discussed, suggested, and pleaded for for for years?

This is how she wants to do it and that's about the long and short of it.
It's going to be hard enough for her to give up her old home purely so it is easier for us to visit her- our "allowing" her to do it her way is the path we, her children, have chosen.
It is, after all, her stuff.

And using the word "allow" in the same sentence with "my mother" is absurd anyway- she is a force of nature.

Yep, I get it, it is her home, her stuff and her decision. You only get to watch...

Could she rent? As a senior her age, there is no way in xxxx I would buy a house. I too have alot of stuff, but I can get rid of it real fast, even if it means the kids have to put it in storage. But to some elders, "junk" means more to some than others. My friend started several years ago distributing her stuff and yes she misses it, but is glad it is gone before the arguments start.

"My friend started several years ago distributing her stuff and yes she misses it, but is glad it is gone before the arguments start."

Just make sure any will gets updated if 'named items' are not going to be part of the estate.

Thanks, for reminding us about the estate. In my friends case alot of it was farm equipment, and her son and their lawyer did check everything out.
Back to the OP, remind her to check with the insurance agent if she left one home and moved into another, leaving the first one without anyone living there--It is greater chance for break in's and also if she is by herself sorting etc, that is not good either. Yes us oldies can be stuborn, but certain situations can be dangerous. she could fall and no one would know, etc.
I do hope she listens to her kids.
from a senior citizen

My Dad got a 30 year mortgage when he was 82! He thought it was so funny. When he passed away, the condo was sold and the mortgage paid off. Oh, he was a pack rat! I packed up his old house and rented a storage unit for everything except his rubber band, paper clip, plastic bag, plastic containers, empty box, etc. "collections". Each item went into a numbered box with a list of contents on a spreadsheet. Only the everyday essentials went to his new place where I unpacked everything and had sheets on the beds, food in the fridge, pictures on the wall etc before he moved in. Sometimes he would ask about things that were in storage and I could show them on the sheet that they were not thrown away. It cost a small fortune in plastic totes but it was worth it for his peace of mind and dignity. He appreciated the respect I showed for him and his earthly possessions (including my baby teeth???!!!)

Commonsense

my advice is that you try and persuade your almost 80 year old mother to consider the logical option of selling off the excess baggage, selling the house, investing the proceeds of these sales and getting her into a retirement home near where you live. I have never understood why elderly people, even if in good health, put themselves through all the hassles of changing houses, mortgages, etc. when on the balance of probabilities at that stage of one's life span there is a very high probability that the next move is most likely a retirement home. Get prepared for and accustomed to the inevitable is my advice.

My advice to you fonteyn26 would be to read the dates as this is an almost 5 year old post.......................

cearbhaill, I am sorry for the loss of your mother, but glad to hear that she was able to enjoy her new home and that you were able to care for her.

Thank you for coming back and telling us the rest of the story.

My mother also made a lot of accomodations to make life easier for her family to keep her in her own home. It worked for us too, and we managed to keep her independent with our help (the help increasing as her ability decreased) and going to a nursing home didn't have to happen, which was also out of the question for us too. It did cost her a little in making he accomodations she needed, but again....her money and spent on her old age, just the purpose she and my father had planned so they wouldn't be a burden. Looking back, no regrets in that respect. Thank you so much for the update.

So glad your mother was able to stay in her own home until the end of her life. And my condolences on the loss of your mother. I feel your pain. I lost my Mother 2 1/2 years ago and my Dad this past February.

I'm also sorry for your loss and happy that things worked out for you and your Mom.

The poster that started the resurgence of this post didn't say your Mom should go to a nursing home, she actually said a retirement home.

My Mom sold her house at 84 and moved into a senior community that has independent living, assisted living and then skilled nursing. She's in her own condo like apartment, 2 bedrooms/2 baths, and is having the time of her life. The social activities that are available keep her so busy we hardly ever see her.

My sisters and I are thrilled. The social aspect of her community keeps her active and she'll probably live longer because of it.

Just had to share a better experience than a "nursing home", and we're very glad she no longer (or we're not) maintaining her house.

Indeed, my condolences to cearbhaill; and glad it all worked out in the end for your family. Apologies for bringing up the matter after some time since the original posting. I did respond more as a general comment to address the issue of ageing parents and the difficulties of changing living arrangements as parents age.

Thank you for pointing that out, pamghatten. That is exactly what I meant by retirement home, an independent/serviced home/villa in a tiered retirement village purchased and owned by the elder. The "nursing home" stage is the next stage as and when required as the elder becomes less able and the stage before the final hospital care stage of the tiered living in these villages.

As you point out, these homes in these villages provide all the benefits of independent living but in a safe community with all the services, conveniences and social services that a conventionally/owned home often cannot. It will be the way of the future for the baby boomers as they age, become less inclined or less able to maintain their own homes and move into more manageable housing arrangements such as retirement homes/villages - and which, of course, will take up the slack of filling in for what the millennials will find increasingly more difficult to provide to their aging baby boomer parents as they become more involved in their own young families/work/leisure. Retirement homes provide independent living with all the added advantages of social services in a safe community.

IMO, it is ALWAYS better to be in your own home over any 'retirement home', just as a house is preferable to a condo or other 'maintenance free' option. This depends on your needs; your ability to find/pay for assistance IN your home; your ability to drive or arrange other transportation OUTSIDE of your home.

In your SFH, *you* decide what needs to be done, and when, and by whom. You have privacy and quiet.

The 'retirement village' concept is a huge, growing, *lucrative* market. I would be very slow to embrace it if I had the alternative of remaining in my own home. Staying in your own home doesn't make you a hermit, and I want to 'manage' my own care!

Nearing the OP's mom's age, I found it funny last year when the mortgage manager carefully explained the payoff date to me--in 30 years.

At least, they didn't require a letter from my solicitor that I was of sound mind! (mrs. worthy thinks I'm meshuggener!)

Incidentally, Warren Buffet sidekick Charlie Munger is still collecting homes. At 98.