15 Types of Loans for Retired Seniors

retired loans

If you have already reached the retirement age, and think of taking loans, let’s be honest – it will be harder for you. Yet, your dreams of a new car, business, traveling or a brand-new house should not be postponed because retired loans are still possible to find.

Looking ahead, one or another advisor recommends avoiding such options as 401(k)s, individual retirement accounts (IRAs), or pensions – they will come with a huge disadvantage of interest rates or credit rating damage if not repaying, so you will be challenged.

Read this guide on loans for seniors on social security and learn how to qualify for them.

Loans for Retired Seniors Citizens: Types and Eligibility Factors

First off, let’s identify factors that greatly affect your chances of getting a retired loan.

  • Your age – lenders who issue loans for seniors citizens usually set default age limits. It particularly concerns lenders who have just passed their 50th birthday. As for the maximum limit, it can be 75 on average.
  • Your income – a loan for retired person will be also considered based on their pre-retirement business earnings. You can live now on your savings or pension, however, you should understand the exact amounts you use for living. If your current earnings are droped compared to the pre-retirement age, lenders are most likely to offer you deals with high-interest rates or secured lending options.
  • Your assets – either home loans for seniors or the ones for cars, you should also take into consideration requesting one by securing your property. Accordingly, once you are unable to repay the loan, a lender may easily repossess your property which is a sad but common risk.

Ideally, you should consult advisors in loans for seniors, and be guided on how to prepare yourself, and what to expect. And don’t forget to create an emergency fund. Now, let’s speak of all the possible loans for retired people to pay attention to in 2024.

Mortgage Home Loans

The most common type is mortgage loans for seniors. In simple terms, it stands for using the property (house, apartment) you are buying as a collateral asset.

In case you are unable to make payments on such a mortgage, a lender can easily repossess your home. It is a process called foreclosure. It perfectly fits those between 70 and 85 years of age.

Travel Loans

As the name suggests, retired military travel loans are deals for particular travelling both for domestic and outside your country destinations. It is popular among those who crave some adventures while on retirement but cannot anymore afford the whole journey straightaway.

Student Loans

Can a retired person cosign a student loan? Yes, many retired buyers go for so-called cosigning “student loans for seniors”. You have to consider certain consolidation programs that will reduce the payments via forbearance. Such deals stand for helping one’s student education. 

Check the example:

Borrowed amount:

Term of repayment:

Interest rate (average one):

Estimated payment:

Interest paid:


10 years;




Bonus post: Should you consolidate your student loan?

Car Loans

Then, a buyer can choose a car loan for retired person. Car finance (for instance, with Admiral/ASA/Condo/Anchorage/Charles/Arena/BBT/BOAT facilities) is easy to obtain because the car you are buying is secured. Yo can also pretend for auto repair loans.

When making payments, cash may occasionally save interest, however, if it does not affect the savings. In the event of unforeseen occasions (emergency), you are always able to sell that auto vehicle to cover your expenses.

Bad Credit Loans

Loans for retired military with bad credit fit those who did not succeed having an excellent score but require small amounts for borrowing. Anyway, they will come with high-interest rates, upfront fees, but with affordable co-borrowers options.

FHA Loans

FHA loans for seniors or Federal Housing Administration (FHA) loans are available as a mortgage issued by an FHA lender and are designed for low/moderate-income borrowers.

Such a mortgage comes with lower down payments and credit scores. To be eligible, one has to buy separate mortgage insurance and contribute some direct premium payments to FHA.

Personal Loans

Personal loans for seniors is a set amount of cash they can borrow for different purposes (get help medically for disabilities or receive denture care with CORPS, etc).

Beyond that, it can be used for consolidating your debt, affordable paying for traveling, or anniversary/wedding preparations, or just take 200 dollar personal loan for home improvement.

Check the example:

Borrowed amount:


Term of repayment:

Interest rate (average one):

Estimated payment:

Interest paid:


Credit card debt consolidation;

2 years;




Payday Loans

Payday loans for retired are one of the most popular ones to accept too. They can be secured or unsecured and short-term ones.

Then, they should be ideally backed only for emergence, when you or your disabled or not dependents need $500 loan urgently. To be honest, one or another loan company expert doubtfully adveretises them, because when not repaid, you will come across huge interest rates and fees.

Check the example:

Borrowed amount:

Term of repayment:

Interest rate (average one):

Estimated payment:

Interest paid:


30 days;




Installment Loans

An applying borrower who goes for installment loans is provided with a set amount of money that should be repaid within scheduled payments. It means that each payment includes repayment of a portion of the first borrowed amount, alongside interest of the debt.

Today, installment loans can also refer to auto loans, mortgage loans (including HARP loans for seniors), personal loans, and student adult loans.

HUD Loans for Seniors

HUD stands for the U.S. Department of Housing and Urban Development in government. HUD loans for seniors, in turn, is the program for the elderly who can access rental housing.

They should be qualified as low-income class tenants of at least 62 years old. The household income should be 50% less than the area’s one.

Debt Consolidation Loans

What about such a deal as debt consolidation? In simple terms, it rolls several debts of high interest (for example, credit card bills), and makes them as a single payment.

The main goal is to reduce the total debt of an endorser and reorganize it the way they can clean it faster. Beyond that, it greatly affects the interest.

Unsecured Loans

Unsecured loans for retired advertising do not require any collateral. It means that a lender focuses on a borrower’s creditworthiness rather than their assets as security. The most common types of such loans are personal, student loans, and credit cards.

Home Equity Loan

Last but not least common type is AK home equity loans for seniors which are also called the second mortgage.

As for its description, it allows homeowners to borrow an amount of cash against their home equity. The amount of loan will be calculated based on the home’s current market value and the homeowner’s mortgage balance due difference. Normally, these loans are fixed-rated.

Check the example:

Home value:

First payment:

Property’s use:

Total line of allowed credit:

The cash you need now:

Repayment term:

Monthly payment:

Interest rate:



Primary residence;



30 years;


almost 6.400% variable APR.

Bonus post: Calculate your loan with our loan calculators!

Loans for Retired Military

Are you linked to army service? Great, because you can also access the best loans for retired military personnel. Retired military loans are designed to help such people get financial aid or care including for travelling purposes, consolidating (bridge loans for seniors) bills, renovating houses among others. 

Benefits of loans for retired military personnel are:

  • You take action toward it even if you are not currently on active duty (qualification falls for 18+ months of service remaining). The AD loans will still come with low and fair rates to cater to your needs;
  • You can be assisted with multiple AER loan options even with a bad credit history;
  • You can apply for travel military loans for your vacation, or travel-related expenses including PCS (Permanent Change of Station);
  • You can build an application without a credit check. If you are not on active duty (airforce, etc), you can generate a “soft” or so-called erased credit inquiry to get financial help in the future. A “hard” credit check inquiry will appear only in the report if an employee decides to take the loan.

Beyond that, there are no strict defaulted age limits. You’d better ask your city advocates to learn more about this option. Ensure to not come across AIR fraud loans.

Home Improvement Loans for Seniors

And the icing on the cake is home improvement loans for seniors. As of now, The U.S. Department of Agriculture (USDA) Rural Development executives administer the Very Low-Income Housing Repair Program. It stands for loans of up to $20,000 for home repair, and $7,500 grants to veterans aged 62 and older.


How do you assess income for loans if retired?

When turning to a lending facility, a retiree will be considered in terms of their pension books, Social Security, and investment income as their regular income. On some occasions, an assignment with annuity, family (biological survivor or deceased/divorced spousal) benefits, and retirement account income will be requested for a check-up as well at least for the last 3 years.

Do banks give 30 year or 15 years loans to senior citizens who are retired?

Yes, but again everything will depend on the applicants’ income, assets, debts (when one or another expires or is still unpaid), and credit when referring to a bank.

Retired and can't pay parent loans, what should I do?

It is worth consulting the agencies in the field, however, looking ahead, building an application for debt consolidation might occasionally come in handy.

How do retired teachers pay student loans?

Pensioners like teachers have their own loan programs where they can qualify to get financial assistance for their student’s school/college education like FAFSA. Such employees will have monthly payments, tailored interest rates, and delinquent fines for failing to cover the debts.

Do I have to pay back student loans when I am retired?

Yes, do consider the following options – Deferment and forbearance programs if you experience hard times. Or, stick to Income-Based, Income-Contingent Repayments, PayAsYouEarn, and RevisedPayAsYouEarn, downpayment among others.

Are there mortgage loans for a retired senior citizen who works part-time?

Yes, including reverse ones, but again everything will depend on the applicants’ income, assets, debts, and credit.

Can someone who is retired cosign a loan?

Yes, you may rest assured but to be approved, lenders will require a cosigner to have a valid source of income, and retirement income counts.

How to get a loan for a house if retired?

You can get approval for a mortgage or home equity program. Ask county attorneys or designated companies to learn more.

How low income retired get a loan?

They have designated programs as well where the amount of loans will be calculated based on their pension, pre-retirement career income, Social Security among others.

Is it possible to get a car loan when retired?

Yes, a car loan is possible to get when retired across the USA including in Abilene, Carolina, Arizona, San Antonio among others. You may choose from many brands as well as Audi.

How to borrow money and pay it back in small loans for seniors on a fixed income?

In case you experience financial difficulties in repayment or straightaway want to find loans with more favorable repayment terms, you should find a designated program. Consult a professional or refer to the American Association of Retired Persons (AARP) to learn more about your eligibility for such deals. The same concerns the acceleration of repayments.