Eligibility for home loans is the main thing a borrower needs to know when it comes to applying for home loans. Eligibility for home loans is offered to senior citizens, those who are unemployed, disabled persons, and those who own homes or apartments. However, there are also other special programs that may be available. These programs are usually offered by the government or by mortgage companies.
Eligibility for home loans can be broken down into several factors. One of the most important factors is your monthly income. Your monthly income will help determine the amount you can borrow against your home loan. The longer you have been working, the higher your monthly income may be. This applies to anyone who has been working at least once in the past five year.
The next factor to consider is the maximum repayment age on your home loan. If you are retired or have a disability, then you will be required to use the disability amount on your home loan interest rate. For example, if you are eligible for Social Security retirement benefits then you will not be able to borrow more than the maximum retirement benefit. The SSA will calculate the maximum retirement age based on the last date you would expect to begin receiving benefits.
The third factor to consider is the maximum repayment term allowed on your home loan interest rate charged. This will also take into account your starting balance and your total payments over time. If you want to reduce your payments, you should consider decreasing your starting balance. However, if you are planning to live at the home for the majority of your life, you should not consider decreasing your p.a.
The final factor is your credit rating. As a general rule, lenders are leery of issuing home equity lines to senior citizens. Since most lines are secured loans, most lenders require a good credit rating or some type of cosigner. If you have bad credit, you may not qualify for a senior home loan interest rate.
Most senior citizens prefer to use home loans with a repayment tenor that allows them to easily budget their payments. Lenders usually set a repayment period ranging between three and fifteen years. Although many senior citizens choose to extend their repayment period, this is not always practical. Your lender can help you find options that will allow you to repay your home loans in the way that makes the most sense to you.