We are asking readers and listeners for their questions about all things homeownership and renting. Today, we're answering one of them. Submit your question below.
At 69, Norman Schenck is preparing to retire. He and his wife, Lorie Schenck, 67, live in a Detroit suburb and are hoping to relocate to central Ohio to be closer to their grandchildren.
For about the past two decades in Michigan, they've been renting a condo. But in this new chapter of their lives, they're facing a huge decision: Do they put a big chunk of their retirement down to buy a house in the new location, or continue to rent?
"It's a very daunting question, and it's a complicated one when you do the math," Norman says. One of the things he has enjoyed about renting, he says, is "the grass is cut, the snow is removed and all those things are taken care of for us."
But Lorie notes that both of their mothers lived into their 90s. She is determined to buy rather than rent on the chance they will live long enough to pay off a house. "And then you've got an investment that could be something for the grandkids," Norman says.
His wife's logic seems sound, Norman says. And he would love to have a garden again. But shoveling snow? "That's not so appealing."
How old is too old for a mortgage?
Many older Americans face these difficult questions — and, unfortunately, the answers aren't so straightforward. In some cases, the proposition is moving out of their existing home to a smaller one or to a seniors-only retirement community. In others, such as the Schencks', it's about moving to be with children and grandchildren.
"I hear this a lot: 'We've been here 20 or 30 years, and we're ready to go back home and be closer to family,'" says Ben Graham, an Arizona-based Realtor who specializes in working with older adults.
Tacking on a 15-year or 30-year mortgage in your 50s or 60s is "a big pill to swallow," he acknowledges. "I'll be blunt with you: A lot of my buyers are paying cash," he says. "They're not first-time buyers — they're using equity or savings."
Still, Graham says he'd "rather someone own a home on a 30-year mortgage, build equity and have peace of mind, than not own a home at all."
Marty Stevens-Heebner, an expert in senior move management and host of the podcast How to Move Your Mom (and still be on speaking terms afterward), agrees. "Being 50 or 60 shouldn't rule out homeownership — statistically, there's still time to build meaningful equity," she says. However, she notes, people who buy for the first time later in life face more hurdles than homeowners downsizing, whose loans are generally easier for lenders to approve.
Regardless, those on fixed incomes have a narrow margin for error, and qualifying for a mortgage on retirement income can be tricky. Legally speaking, the Fair Housing Act and the Equal Credit Opportunity Act prohibit discrimination against loan applicants based on protected characteristics such as age. However, lenders can legally consider income stability and other factors that might be indirectly related to age.
There are also taxes to consider, says Joe Schmitz Jr., CEO of Peak Retirement Planning in Columbus, Ohio. Withdrawing a big lump sum to buy a house will be taxable retirement and could also have big implications for your Social Security and Medicare benefits, he says.
Schmitz also says it's important to compare where the housing market is going with the rate of return you could get from other types of investments. "Historically, [the stock market] has done 7% to 12% on an average year, but it's very volatile," he says.
Especially for older individuals, it's better to compare it with a protected type of investment with a guaranteed return, such as certificates of deposit or money markets, he says.
Would you be better off with a nice apartment?
Of course, the other option is to rent. And that may be the best option for some, according to Jennifer Felton, who owns a real estate law firm in Southern California.
Should you be taking on a 30-year mortgage at age 70? Maybe not, she suggests. "If I'm not going to be there five years or more, buying a home is probably not a good decision," Felton says. "You're just paying the lender a lot of money" and building little or nothing in the way of equity.
In that case, you'd "be better off getting a nice apartment," she says. Of course, there is more uncertainty that goes with this — rising rent as opposed to a predictable monthly mortgage payment. And if a landlord decides to sell the property, it could upend things when you most want stability.
For the Schencks, putting a large chunk of their retirement savings into a house might make good sense as an investment. But will it leave enough cash available for the future, including for the rising medical expenses that come with aging? "It's a matter of how much somebody might need liquid and what their projected needs are," according to Esther Clauson, a Los Angeles-based Realtor who also specializes in serving older adults. Getting that balance right can be a challenge, she says.
Planning could be complicated by moving to another state, Clauson says. "The question is, what's that market doing? What's the strength of that market where they could invest and see growth year over year and feel good about those numbers?"
Schmitz says he advises clients to maintain three to five years of income in retirement as an emergency fund. "If they have $500,000 and want to go live in a $500,000 home … I don't know if that's the best decision," he says. "They may rather rent and keep that money available."
Older homebuyers also face the same challenges as anyone else in the market, Kenneth Kossoff, a certified specialist in estate planning and trust law, says. Those smaller, single-level "starter homes" that are in such short supply are as frustrating for older homebuyers as for younger ones, both of whom might not need much square footage.
Many older adults recognize that stairs are a hazard that could result in a life-changing injury. But a single, accessible level comes at a cost, says Graham, the Arizona Realtor. In fact, in his experience, single-levels usually sell for about 20% more than a two-story with a comparable square footage. "It's actually a premium to not have stairs," he says.
Another consideration: Older homebuyers need to keep in mind that "property taxes might go up, insurance might go up and their needs in terms of care might go up," and to be prepared for the additional costs involved, he says.
Should you change course with a reverse mortgage?
Some older adults may consider a very different option from a traditional mortgage. A reverse mortgage means no house payments but, instead, a monthly check from the bank.
It might sound like a great idea, but it means you'll be draining the equity from your house. And there are other important caveats.
Your adult children might be wary, since a reverse mortgage can reduce — or eliminate — the equity they would otherwise inherit. "The home is no longer going to be a generational family asset," Felton says. But for older adults without heirs, the option can make sense, she says. "You can use your home to live the lifestyle you want to live through the end of your life."
Still, Felton cautions that a reverse mortgage is a loan — and a complicated one, with some potentially hidden pitfalls.
If you need to transfer to assisted living or a nursing home, for example, that can trigger the lender to demand repayment. "That could mean the home needs to be sold to deal with the loan, even though the senior is still alive," she says.
Worse still is what happened to clients of Felton's, a husband and his younger wife. They had a reverse mortgage. "When he passed away, it triggered the loan to be called and we had to sell the house. So she lost her home. She got what equity there was, but it wasn't what she was planning."
Are seniors-only communities a good option?
Senior-focused communities are another option, known in the business as "adult active communities." Many today are like resorts, says Stevens-Heebner, the expert in senior move management. Around Los Angeles, she says, "there are all these big, beautiful communities that are being built that are … like being on a cruise." These communities provide lawn care and maintenance as well as recreation centers with gyms, pools, pickleball courts and even woodshops.
But there's typically a resort-like price tag to match. In California, "you could be paying $20,000 a month to live in one of these communities," Felton says. Even in less expensive markets, the cost could put an active adult community out of reach for most older people.
Is the beach close enough to your support network?
Setting your sights on a dream retirement destination without thinking through what you will leave behind is another potential catch, says Clauson, the LA-based Realtor. "It's one thing to live by the beach," she says, "but what about [your] community? Who's going to be there to take care of you over time?"
"As time goes on, you're going to be less mobile, so being close to what's important becomes a much bigger consideration," she says.
"What's important" is frequently family. But Kossoff, the attorney, says he has witnessed scenarios that disrupt that comforting narrative. He has seen parents move to be close to children, only for "the kid or the kid's spouse [to] get a new job in a different state," forcing them to move, leaving elderly parents alone in a largely unfamiliar place.
Partly for that reason, "renting in the new state might be a good idea before buying," he says.
Copyright 2026 NPR