Mortgages for the retirement years.
Downsizing, refinancing, asset depletion, retirement income qualification. Structured around your retirement plan, not against it.
The goal is to have the mortgage paid off before you retire. When that's not possible, the goal is a mortgage that fits retirement, not one that derails it.
I'm David Rakecky, CFP®. Retirement changes every financial conversation, including the one about your mortgage. Your income sources shift. Your tax brackets shift. Your withdrawal strategy shifts. A mortgage that made perfect sense when you were earning a W-2 paycheck might make less sense when you're drawing from Social Security, a pension, and retirement accounts. My job is to help you either finish the mortgage before retirement, or structure a new one that coordinates with your retirement plan instead of fighting it.
Depending on where you are.
Most retirement-age mortgage conversations fall into one of two categories. Each needs a different approach.
Approaching retirement. Finish the mortgage strong.
You're still working but retirement is within sight. The goal is to get the mortgage paid off, or close to paid off, before the W-2 income stops. This usually means some combination of a shorter-term refinance, accelerated principal payments, and a clear payoff timeline.
As a CFP, I look at whether paying down the mortgage is actually the best use of your capital. Sometimes it is. Sometimes a low-rate mortgage is better kept while you max out tax-advantaged accounts. We run the real math before recommending anything.
Already retired. Structure a mortgage that fits.
You're downsizing, relocating to be near family, or refinancing an existing loan. A mortgage in retirement isn't a failure, it's a tool. The question is how to structure it so the payment fits your retirement cash flow without forcing you to draw down assets faster than planned or shift into a higher tax bracket to cover it.
Asset depletion programs, retirement income qualification, and careful term selection all come into play. I run the file across lenders who understand retirement income and can actually underwrite it properly.
Retirement income that qualifies you.
Most stable retirement income sources can be used to qualify. Lenders generally want documentation that the income will continue for at least 3 years.
Social Security
Monthly Social Security retirement benefits count as qualifying income. Award letters or SSA-1099s document the amount. Some lenders will "gross up" the income since a portion is usually non-taxable, which effectively increases what you qualify for.
Pension Income
Traditional employer pensions qualify as long as the income is continuing and documented. Pension statements and bank deposit history show the ongoing payment. Non-taxable portions may be grossed up, same as Social Security.
Retirement Account Distributions
Regular withdrawals from 401(k), IRA, and similar accounts can qualify as income. The lender wants to see consistent distributions, typically a documented distribution pattern of 2 years, plus enough balance to support continued distributions for 3 more.
Investment Income
Dividends, interest, and capital gains from taxable brokerage accounts can qualify. Lenders look at tax returns (Schedule B, Schedule D) to average the income over 2 years and confirm the assets producing it are still in place.
Annuity Income
Contractual annuity payments qualify like pension income. The annuity contract and payment history document the amount and duration. Lifetime annuities work especially well because the "continuing for 3+ years" requirement is built in.
Rental Income
If you own investment properties, documented rental income can support qualification. Lenders typically use 75% of gross rent to account for vacancy and expenses. Schedule E on your tax returns establishes the historical performance.
Strong balance sheet, modest monthly income? There's a program for that.
Many retirees have significant investment assets but draw modestly on them month to month. Traditional income underwriting doesn't capture the actual financial strength of that picture. Asset depletion solves this.
The lender takes your qualifying asset balance (taxable brokerage, IRAs, 401(k), and similar), applies any lender-specific discount, divides by the loan term, and treats the result as monthly qualifying income. The assets themselves stay invested. You're not actually being required to draw them down. The loan just recognizes the earning power sitting on your balance sheet.
Simplified Example
Retirement mortgage programs.
Four main paths. I match you with the one that fits your income documentation and your retirement plan.
Asset Depletion Mortgage
Qualify using your investment and retirement account balances instead of monthly income. Ideal for retirees with strong balance sheets who don't want to artificially inflate their documented monthly draws just to satisfy a lender's income test.
Learn more →Retirement Income Qualification
Conventional financing using Social Security, pensions, retirement account distributions, investment income, annuities, and rental income as qualifying. I know which lenders underwrite retirement income properly and which ones make it harder than it needs to be.
Learn more →Downsizing Home Purchase
Right-sizing from a larger family home into something easier to manage. Proceeds from the sale often cover most or all of the new purchase. When a mortgage is still needed, I structure it to fit your retirement cash flow rather than maximize what a lender will approve.
Learn more →Retirement Refinance
Refinancing an existing mortgage to lower the payment, shorten the term before retirement, remove PMI on an appreciated home, or restructure the loan around your new income situation. Every refinance starts with a break-even analysis so you see whether the math actually works.
Learn more →How a retirement mortgage actually runs.
Four steps, built around your retirement plan first, the loan second.
Retirement Income Review
A 60-minute CFP-led review of your retirement income sources, your asset positions, your tax situation, and your retirement timeline. I identify which qualification path fits best before we ever touch a loan application.
Program & Lender Match
I shop your file across wholesale lenders who actually know how to underwrite retirement income and asset depletion. Not every lender handles these programs well. The difference shows up in both rate and underwriting friction.
Underwriting Stress Test
Retirement files have documentation that most retail underwriters aren't used to: award letters, distribution histories, asset depletion calculations. I run your file through a simulated underwriting review before submission so issues surface in week one, not week five.
Friday Check-In to Close
A text update every Friday until closing, with your realtor copied in if you're purchasing. Between Fridays, I'm reachable by text or call whenever you need me. Typical retirement close: 30 to 45 days.
Common questions.
Can I get a mortgage if I'm retired?
What income counts for a retirement mortgage?
What is asset depletion and how does it work?
Should I pay off my mortgage before I retire?
Can I refinance in retirement to lower my payment?
What is a downsizing purchase loan?
Does Tetra offer reverse mortgages (HECM)?
Thinking about a mortgage for your retirement years?
Start with a 15-minute intro call. We'll talk through your retirement plan, your income sources, and whether a mortgage actually makes sense. No documents, no credit pull, no pressure.
Or call 313-380-4740