HELOC For Retirees
Retired and living on Social Security, a pension or VA benefits? At least one HELOC we offer lists fixed income as eligible income, and another verifies those benefits directly.
What a HELOC in retirement requires
Each item below is a requirement or rule of at least one HELOC we offer.
- Fixed income is listed as eligible income, alongside wages, self-employment and other income.
- Social Security, disability and VA income can be verified electronically and count like an active employer when the benefit has no end date or ends at least 3 years out.
- Pension deposits in a connected bank account are counted as their own income stream, and the account needs at least 85 days of history.
- A VA award letter is counted as non-taxable benefits income.
- Your debt-to-income ratio can be up to 50%, or up to 45% with a score below 680.
- A home with a reverse mortgage on it is declined.
Fixed income is eligible
Pension deposits count
VA award letters accepted
Retirement savings can help
Paid-off homes qualify
A spouse’s income can count
Can You Get A HELOC On Retirement Income?
Yes. At least one HELOC we offer lists fixed income as eligible, and another verifies Social Security, pension and VA income directly.
You do not need a paycheck to qualify. At least one HELOC we offer lists wage earner, self-employed, fixed income and other income as eligible. Another verifies Social Security, disability and VA income through an electronic connection and treats each source like an active employer when it has no end date or ends at least 3 years out. It can also read regular pension deposits from a linked bank account, and it accepts a Social Security benefits letter.
Savings can help as well. At least one program can count eligible accounts, such as a 401k, IRA, Roth, 403b, thrift savings plan, annuity or brokerage account, toward your income. The full method is on our asset depletion heloc page.
This is a line of credit, but most or all of it is drawn at closing. One HELOC we offer requires at least 75% of the line drawn at closing; the other funds the full line at closing. If your home is paid off, the line can sit in first lien position. If your home has a reverse mortgage, at least one program will not lend on it.
Why choose Saxton for a HELOC in retirement
This page is for retired homeowners who live on Social Security, a pension, VA benefits or savings and want to use their home equity.
Fixed Income Is Eligible
At least one HELOC we offer lists fixed income as eligible income. A paycheck is not the only income that counts.
Social Security Counts Like A Job
At least one program verifies Social Security, disability and VA income electronically and treats each one like an active employer when the benefit has no end date or ends at least 3 years out.
Pension Deposits Are Read Directly
Connect the bank account your pension is paid into. Regular deposits marked as pension are counted as their own income stream.
VA Award Letters Count
A VA award letter is counted as non-taxable benefits income, and it can be added to income verified from your tax return.
Savings Can Fill The Gap
If your debt-to-income ratio is over the limit, at least one program lets you add your assets to recalculate it. Retirement balances are used in full after age 59.5, and at 70% at 59.5 or younger, before they are turned into monthly income.
A Spouse’s Income Can Count
At least one program lets a single applicant include a spouse’s income, and another allows co-borrowers, including ones who do not live in the home.
Hear From Homeowners Like You
Frequently Asked Questions
Straight answers about using a HELOC in retirement.
Yes, if it supports the line. At least one HELOC we offer lists fixed income as eligible, and another verifies Social Security income electronically or from a benefits letter. Your debt-to-income ratio still has to fit, and the highest limit is 50%.
Yes. At least one program reads pension deposits from a linked bank account as their own income stream. It looks at up to 365 days of transactions, and the account needs at least 85 days of history.
Yes. At least one program verifies VA income electronically and treats it like an active employer when it has no end date or ends at least 3 years out. It also counts a VA award letter as non-taxable benefits income.
Yes. Both HELOCs we offer can be placed in first lien position when nothing is owed on the home. At least one offers first-lien lines from $25,000 to $750,000, and lines above $500,000 need a primary home and a 700 score.
At least one program we offer declines any home with a reverse mortgage on it. If you have a reverse mortgage, tell us before you apply.
Yes. At least one program takes an application from one person only, but that person can include a spouse’s income, and it can be verified with a Social Security benefits letter. Another program allows co-borrowers.
At least one program offers lines from $25,000 to $750,000. Lines over $500,000 are for a primary home only and need a 700 score and a full appraisal. How much of your equity you can use depends on your home’s value, your existing mortgage and your credit score.
Find out what you qualify for
Tell us where your retirement income comes from and we will show you the HELOC options that fit.
Get Pre-Qualified- Consumer Financial Protection Bureau, home equity loan compared with a HELOC
- Consumer Financial Protection Bureau, mortgages
Loan amounts, rates, terms, and eligibility are subject to credit approval, asset and income verification, appraisal, and program guidelines. Draw requirements and variable rate terms apply. Program availability varies by state. Not all applicants will qualify. Saxton Mortgage, LLC is an Equal Housing Lender.