56 years old.....am I too late
Member since 2026 · 2 posts · 1 vote
1 vote total
56 years old.....am I too late
6 Replies
- 20hJoe DerobertisPro MemberAltadena, CA · Member since 2014 · 70 posts · 42 votes
The banks are going to care about either your ability to pay the mortgage OR if you go the DSCR route, whether the property itself can generate enough income to pay the mortgage. Your age, should have little to no impact, I would think...
- 20hDivin KanyamaBusiness MemberAccountant · Seattle, WA · Member since 2025 · 216 posts · 72 votes
It is not too late to begin @Marcie Nowacki , and being 56 or single should not, by itself, make it harder to obtain a mortgage. Lenders generally focus on your credit history, income, existing debts, cash reserves, down payment, and whether the property’s expected rental income supports the loan. Your age cannot legally be used to deny you credit, although a lender will still need to document that your qualifying income is likely to continue under its normal underwriting guidelines.
For a single-family rental, financing is usually treated as an investment-property loan and may require a larger down payment and stronger reserves than a primary residence. For a two- or three-unit property, one option worth exploring is living in one unit and renting the others; owner-occupied financing may provide more favorable terms, and some lenders may count a portion of the projected rents when qualifying you.
Before shopping, speak with two or three lenders—including one experienced with small multifamily properties—and ask for a preliminary review rather than relying only on an online calculator. Compare conventional and portfolio loan options, estimate repairs and operating costs conservatively, and keep enough reserves for vacancies and unexpected expenses. If the numbers work without stretching your budget, starting with a manageable property can still be a very realistic path to building income and equity.
- Specialist · I give advice - [email protected] - I focus on states where investing is profitable, reasonably safe & secure · Member since 2026 · 28 posts · 3 votes17h
Quote from @Marcie Nowacki:
Im a 56 year old single woman who wanted to invest in real estate since I was in my 20's. Are banks going to give me a hard time aquiring mortgages? I want to do single home/2-3 unit rentals.
It's more important to have a path toward proftabilty than to worry about funding as odd as that seems. People fund what they believe in , your job is to have opportunities they can fund and feel good about.
- 9hStacy RaskinBusiness MemberLender · Member since 2022 · 1k+ posts · 497 votes
You are not too late. Your mortgage options will be based on your middle mortgage credit score and if you are doing a conventional loan or a DSCR loan for an investment property, the loans have different requirements. If a conventional loan, the loan will be based on your personal income and debt to income (DTI) ratios. If you would like to get a non owner occupied investment property, you can get a DSCR loan which will be based on your credit score, having the money for the down payment and closing costs and the actual or projected rent of the property you are buying. Your personal income beyond being able to pay the down payment and closing costs will not be considered. Neither will your debt to income ratios.
Generally DSCR loans require 20% down and 1-4 units often have the same underwriting guidelines. DSCR loans are based off of down payment, credit score and either actual or market rents so it helps to supercharge an investor's real estate goals and net worth.
Here's a bit more in detail about how rates are calculated for DSCR loans:
1. Credit score- the higher the best. 760-780+ generally gets best pricing for investment property loans with most lenders. From there every 20 point increment affect pricing differently. So for example, a 761 credit score will be in the 760-779 credit category, then going down to 740-759 and so on.2. Loan to value ratio: The higher the loan to value ratio (LTV) is, pricing takes a hit. So your pricing will be higher for a 80% LTV loan than for a 60% LTV loan.
3. Prepayment penalties- usually 1-5 year terms. The shorter the prepayment term has an impact on increasing the rate.
4. Are you cash flowing the property? More on how that is calculated below. Is your DSCR ratio greater than 1-meaning are you cash flowing (according to the lender's criteria of mortgage, property taxes and insurance (and HOA) if applicable). Many lenders will not do a DSCR loan unless cash flowing. If they will do a loan with less than 1, the pricing takes a hit. This criteria is for 1-4 and 5-8 unit programs.
I've included an example below to help illustrate this.
So different lenders have different rates (which do vary even for DSCR loans) but these are factors they all consider.
See example below:
DSCR < 1
Principal + Interest = $1,700
Taxes = $350, Insurance = $100, Association Dues = $50
Total PITIA = $2200
Rent = $2000
DSCR = Rent/PITIA = 2000/2200 = 0.91
Since the DSCR is 0.91, we know the expenses are greater than the income of the property.
DSCR >1
Principal + Interest = $1,500
Taxes = $250, Insurance = $100, Association Dues = $25
Total PITIA = $1875 Rent = $2300
DSCR = Rent/PITIA = 2300/1875 = 1.23If a purchase, you also generally need reserves / savings to show you have 3-6 month payments of PITIA (principal / interest (mortgage payment), property taxes and insurance and HOA (if applicable). If a cash out refinance, many lenders will allow the cash out to satisfy the reserves requirement.
DSCR lenders generally let you vest either individually or as an LLC. It's a great way to increase your net worth and these loans can also be used to pull cash out of a property as it appreciates allowing you to reinvest money into new deals. Happy to connect to discuss further.
Bright Skyline518 Reviews - MD/DC · Member since 2024 · 1k+ posts · 1k+ votes8h
If your current investment plan for retirement is solid and you have enough money on hand to manage the unforeseen problems that invariably arise with RE I agree that it isn’t too late. If someone isn’t financially solid at 56 I would worry about their ability to add a costly, hands on, illiquid product into the mix until basic finances and retirement savings are met. Best wishes with whatever you decide.
- Attorney · 10451 Mill Run Cir #755 Owings Mills, MD 21117 · Member since 2024 · 356 posts · 128 votes3h
Quote from @Marcie Nowacki:
Im a 56 year old single woman who wanted to invest in real estate since I was in my 20's. Are banks going to give me a hard time aquiring mortgages? I want to do single home/2-3 unit rentals.
@Marcie Nowacki, I’ve worked with people who started building their real estate plans later than they originally expected, and I would not focus too much on the age itself. I would focus on making the first property fit the bigger picture you want for yourself.
Before you start adding rentals, I would think about how you want to own them, how much personal risk you are comfortable taking on, and what happens to the properties if something happens to you. It is much easier to set up the ownership and estate planning correctly with the first one or two properties than to clean everything up after the portfolio grows.
I’d be glad to stay connected, @Marcie Nowacki. You have been thinking about this for a long time, and starting with a clear plan now can make the next few decisions much easier.
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