🤙No Ka Kūpuna Get Chance fo Mortgage?🏡

Elderlies stay wit good kine credit, but still get hard time fo find mortgage cuz dey olda and get lowa retirement income.📉😓 In 2019, Molly Stuart’s work contract wen pau at da community college wea she stay workin’. She figgah, no worry, get one new job, but den Covid wen happen. So she go collect unemployment, den afta dat she retire. 🦠👩‍🦳

In 2021, Molly like get one easya financial life, so she try fo refinance her tree-bedroom house on one acre land in Sacramento County, California. She buy da house 18 years ago. 🏠💸

Molly, 60 years old and one lawyer, say she one good risk. She get 30 years work history and credit score ova 800. Da house get $102,000 mortgage left, but she tinks worth $500,000. She wen pay off anodah house mortgage in Sacramento, wea she rent out. 📈👩‍⚖️

But her mortgage company wen deny her application. She no qualify fo refinance cuz no mo’ enough income. She stay frustrate. 😣❌

Da sad ting, dis stay happenin’ to plenny olda people. Da olda peeps get da best credit scores, but get rejected fo most kine mortgages. So, dey no can fix up dea homes, pull out home equity fo pay medical bills, or deal wit oddah kine problems. 💔🏚️

Fo many olda peeps, dea wealth stay inside dea houses. Federal data show dat fo homeowners 65 to 74 years old, home equity stay 47% of dea net worth. Fo ova 75, stay 55%. Fo Black homeowners ova 62, stay 74%. 🏠💰

But Lori Trawinski, AARP Public Policy Institute, say you gotta take one loan or sell da house fo make dat house one financial asset. 📊🔧

Fo some kine oddah tings, Natee Amornsiripanitch, one economist, wen analyze 9 million mortgage applications from 2018 to 2020. He find out dat rejection rates go up as da age go up, especially fo da 70-years-old peeps. 📝🚫

Da study wen show dat olda peeps pay small kine higha interest rates too. Even afta dey check credit scores, property kine, and oddah tings, age stay one factor. ⏳🧓

Da law no let lenders discriminate by age, but dey still can look at age if dey tink stay important fo know if dey can trust da peeps. 🚫📅

Sometimes, lenders no like da houses da olda peeps stay in, cuz dey tink dey not worth as much as da peeps tinks. Maybe dey get olda houses or no take good care. Lenders also stay worry bout olda peeps maybe dying and messing up da 30-year loan. Banks no like dat kine. 😬💀

Anodah ting, afta peeps retire, dey get lowa income, and dat make lenders mo’ scared. It stay mo’ hard fo get mortgage afta you retire. 🧑‍🎓📉

Plus, seniors stay get mo’ debt dan befo’. Dat affect de debt-to-income (D.T.I.) ratios, wea da lenders pay plenny attention. High D.T.I. stay one main reason fo denial, and Linna Zhu from da Urban Institute wen find out dat olda peeps get higha rejection rates. 📊🚫

Da study from Dr. Zhu show dat da kine loan make big diffrence. Home equity lines of credit get same kine high rejection rates fo all ages. But cash-out refinances dat give lump sum stay mo’ hard fo get fo da peeps ova 75 years old. And fo home equity conversion mortgages, da younger peeps get higha rejection rates. 📈💰

Dr. Zhu say dat low interest rates befo’ wen make it easy fo everybody fo borrow, but as da rates go up, goin’ be mo’ hard fo use da home equity. 🏡📈

Maybe get policy changes fo help olda peeps. Dr. Zhu tink we need look at oddah kine wealth fo get one bettah idea of da peeps financial situation. Gotta be one group effort from da banks, Fannie Mae, Freddie Mac, F.H.A., and oddah federal agencies. 🤝🏦

Dat kine help woulda been good fo Molly Stuart. Afta her mortgage company wen turn her down fo refinance, she use her savings fo pay her mortgage six months in advance. But dat stay temporary solution compared to refinancing, wea she coulda had lowa payments fo 30 years. She say her experience stay unreasonable. 🏠💔

So da big question stay: Can our kūpuna get one fair chance fo mortgage? We gotta make some changes, work togedda, and find ways fo help da olda peeps stay financially stable in dea golden years. 🧓👵🏠💸

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NOW IN ENGLISH

Can Seniors Get a Fair Shot at Mortgages? 🏠👴👵

Despite having great credit scores, many older Americans struggle to secure mortgages due to their age, mortality risks, and lower retirement incomes. 📉📝

In late 2019, Molly Stuart, a 60-year-old lawyer, retired after her contract ended at a community college. She hoped to refinance her three-bedroom ranch house in Sacramento County, California, to provide some financial relief. With a 30-year work history, a credit rating above 800, and a mortgage balance of $102,000 on a house worth $500,000, she seemed like an excellent candidate. However, her mortgage company denied her application due to insufficient income. 😕💰

This situation is not uncommon. Older adults have higher credit ratings than other age groups, but recent studies show they are more likely to be rejected for most types of mortgages. This creates barriers for older Americans who want to renovate or access home equity for various reasons, such as medical expenses or unforeseen crises. 🏚️🏥

Most older adults’ wealth is tied up in real estate, but accessing that wealth through loans can be challenging. Studies have found that rejection rates for mortgage applications rise steadily with age, particularly for applicants over 70. Older applicants also tend to pay slightly higher interest rates on refinances or new purchase mortgages. 📈🏦

Although the federal Equal Credit Opportunity Act prohibits age discrimination, lenders are allowed to consider age if it affects creditworthiness. Some reasons for rejections include insufficient collateral, concerns about older borrowers’ mortality risks, and reduced income after retirement. 💼🚫

Debt-to-income (D.T.I.) ratios are another critical factor in mortgage application denials. Older adults today are more likely to have debt than previous generations, which affects their D.T.I. ratios. The likelihood of denial depends on the type of loan, with home equity lines of credit, cash-out refinances, and home equity conversion mortgages showing varying rejection rates across age groups. 📊💳

Policy changes could help reduce age-related barriers. Dr. Linna Zhu suggests considering alternative sources of wealth for a more comprehensive view of an applicant’s financial background. A collective effort involving commercial lenders, Fannie Mae, Freddie Mac, and federal agencies like the F.H.A. and the Department of Housing and Urban Development would be necessary to implement these changes. 🏘️📚

This approach would have helped Molly Stuart, who had substantial assets but modest income after retiring. After her mortgage company rejected her application, she used her savings to prepay her mortgage for six months. While this solution provided temporary relief, it was not as advantageous as refinancing, which would have lowered her monthly payments for the next 30 years. She believes her experience was unreasonable. 🏠💔

The big question remains: Can seniors get a fair chance at mortgages? Changes must be made, and all parties need to work together to find ways to help older adults maintain financial stability in their golden years. 🧓👵🏠💸