Government Home Loans For Senior Citizens

Written By: William Rivers
Reviewed By: William Rivers
Published: February 14, 2023
Last updated: November 27, 2023

Seniors may need to apply for government home loans for several reasons, including paying for home repairs, making energy-efficient improvements, or purchasing a home. This makes their homes more affordable and accessible.

Here's a list of available government home loans for senior citizens. 

What Loans Are Available To Senior Citizens?

What Loans Are Available To Senior Citizens?

The housing crisis has significantly impacted seniors, particularly those in the low-income category. Mortgage rates can fluctuate, making it difficult for seniors to budget their housing expenses. Low-income seniors are particularly vulnerable to these fluctuations, as they may not have the financial resources to absorb sudden increases in mortgage rates.

Changes in loan eligibility standards can make it difficult for seniors to obtain a mortgage, even if they have a good credit history. 

The housing crisis has led to a decline in home equity for many seniors, making it more difficult for them to access funds through a reverse mortgage or home equity line of credit.

Despite these challenges, there are still several loan programs available to seniors. Keep reading to learn about government home loans for senior citizens. Additionally, if you're dealing with issues like removing rust from a fiberglass tub, consider seeking specific guides for effective solutions.

What Loan Term Is Best For Seniors?

The best loan term for seniors depends on several factors, including their financial situation, housing needs, and personal preferences. In considering a loan term, seniors should take into account their income and expenses, interest rates, and how long they plan to live in their homes.

Here are some scenarios that may help seniors determine the best loan term for them:

  • Long-term residency: If seniors plan to live in their home for many years, a longer loan term, such as a 30-year mortgage, may be a good option. This can provide a lower monthly payment and stability over time.
  • Limited income: Seniors with limited income may prefer a longer loan term, such as a 30-year mortgage, as it can reduce their monthly payment burden. This can help make their housing expenses more manageable and improve their financial stability.
  • Short-term residency: If seniors plan to move shortly, a shorter loan term, such as a 15-year mortgage, maybe a better option. This can reduce the overall cost of the loan, as the loan will be paid off more quickly.
  • Interest rate sensitivity: Seniors sensitive to interest rate changes may prefer a shorter loan term, as it can reduce the impact of interest rate fluctuations on their loans.

It's important for seniors to carefully consider their options and consult with a trusted financial advisor or loan specialist to determine the loan term that is right for them. They should also consider the fees and costs associated with different loan terms and factor these into their decision-making process.

Loan Program Options For Seniors In 2023

Loan Program Options For Seniors

Here are the government home loans for senior citizens. 

Home Equity Conversion Mortgages (HECM) by the Federal Housing Administration (FHA)

HECM is a type of reverse mortgage insured by the FHA. 

It is designed to help seniors access home equity to supplement their retirement income. The HECM program allows seniors 62 years or older to convert a portion of their home equity into tax-free cash, which can be used for any purpose.

With a HECM loan, seniors do not have to make monthly payments, as the loan becomes due when they sell the home or pass away. Instead, they can receive a lump sum payment, a line of credit, or a combination of both.

Department Of Veterans Affairs (VA)

Eligible veterans, active-duty service members, and surviving spouses can consider home loans provided by the VA. These are:

  • VA Purchase Loan 
  • VA Cash-Out Refinance Loan 
  • VA Interest Rate Reduction Refinance Loan 

US Housing And Urban Development

The HUD offers a variety of housing loan programs to help people buy, build, repair, or improve a home. Some of the most popular HUD housing loan programs include:

  • Federal Housing Administration (FHA) Loans
  • HOME Investment Partnerships Program (HOME)
  • Community Development Block Grants (CDBG)
  • Home Repair Loans and Grants
  • Section 8 Housing Choice Voucher Program

Public Housing Agency (PHA)

The PHA receives funding from the US HUD to develop and manage public housing properties and administer rental assistance programs like the Section 8 Housing Choice Voucher Program. They are responsible for determining eligibility for housing assistance, setting rent levels, and maintaining residents' safe and decent living conditions. 

The goal of PHAs is to provide affordable and accessible housing to families and individuals in need, helping to address the issue of housing insecurity and homelessness in communities across the country.

US Small Business Administration (SBA)

The US SBA is a federal agency that supports small businesses and entrepreneurs to help them grow and succeed. This support includes access to capital through loan programs, business counseling and training, and government contracting opportunities. 


Medicare provides coverage to individuals who are 65 years of age or older, as well as some people with disabilities. They don't offer government home loans but may cover the cost of medical equipment for assisted living, depending on the specific equipment and the individual's health needs. 

Supplemental Nutrition Assistance Program (SNAP)

SNAP provides low-income individuals and families with financial assistance to purchase food. The program helps eligible participants access a more nutritious diet by providing benefits that can be used to purchase food items at participating retailers. 

SNAP benefits are based on household size, income, and expenses and are provided through an Electronic Benefits Transfer (EBT) card, which works like a debit card. 

Supplemental Security Income (SSI)

SSI provides a monthly cash benefit to eligible individuals to help cover basic needs such as food, clothing, and shelter. 

Home Energy Assistance Program (HEAP)

HEAP provides financial assistance to low-income households to help cover their home heating and cooling costs. Eligible households receive a one-time payment for their heating or cooling bill or with emergency heating or cooling services. 

The payment amount and the assistance provided depend on the household's income, the type of heating or cooling fuel used, and other factors.

Frequently Asked Questions

Check out the answers to commonly asked questions.

1. Can a 75-year-old get a 30-year mortgage?

Yes, a 75-year-old can get a 30-year mortgage or a 15-year mortgage. Lenders are prohibited from denying a specific loan term based on age due to the Equal Credit Opportunity Act. However, while a 30-year mortgage may provide lower monthly payments, it also means that the borrower will be paying interest for a longer period. 

In some cases, a shorter loan term may be more suitable for seniors, as it will allow them to pay off the loan sooner and reduce the interest paid over time.

2. Will a bank provide a housing loan to a pensioner at age 59?

Whether a bank will provide a housing loan to a pensioner at age 59 depends on various factors such as the pensioner's credit score, income, debt-to-income ratio, and the lender's policies and criteria for loan eligibility. Some lenders may have age restrictions for borrowers or limit the loan term based on the borrower's age. 

In contrast, others may consider borrowers of any age if they meet the other eligibility requirements.

3. Can a state government pensioner borrow for a home loan?

A state government pensioner may be eligible to borrow for a home loan, but this will depend on various factors such as their credit score, income, debt-to-income ratio, and the lender's policies and criteria for loan eligibility. Lenders generally consider government pensions a stable and reliable source of income when evaluating a loan application. 

Affording a home is still possible despite the current home crisis and the precarious situation of low-income seniors. These government home loans for senior citizens are designed to make homeownership feasible. 

Seize the opportunity to fully understand all aspects of senior citizen benefits! After delving into government home loans, explore our insightful guide, 'What Age Makes You A Senior Citizen?', to ascertain when you or your loved ones can start benefiting from myriad senior advantages, from financial aids to healthcare perks, and beyond!

Are you thinking of assisted living? Check out our blog, Understanding the Concept of Assisted Living.

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William Rivers is an editor with a master’s degree in Human Services Counseling at Maine State University. He has more than 20 years of experience working in the senior healthcare industry.
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