Do I Need a Mortgage Cosigner Because of My Age?

Reader Question: I am 58 and planning to purchase my first home. Will I need a cosigner on the mortgage loan?

My initial thought was "no." But it's been a while since I've researched these laws, so I had our researcher look into the issue of mortgage cosigners and the age factor.

The Equal Credit Opportunity Act makes it illegal for creditors (including mortgage lenders) to discourage you from applying based on sex, race, marital status, nationality and age.

According to this legislation, the only time a creditor may consider your age is if "you’re 62 or older, and the creditor will favor you because of your age." A mortgage lender may also use a person's age to determine their creditworthiness. For example, if a person is about to retire due to their age, their income might drop considerably. So a mortgage lender can factor this into their risk calculation.

I recommend reading through the Equal Credit Opportunity Act that's hyperlinked above. It spells out the things I've mentioned, plus a lot more.

So unless you have issues with your credit and/or credit score, or you have insufficient income to qualify for your mortgage, it is highly unlikely a cosigner would be necessary or required.

Hope that helps. Good luck with your home buying process!