Is there an elderly contractual age in Indiana? We have an elderly applicant (85 years old). She is applying for a 20 year mortgage to use as rental income. A primary residence already exists with her and a loan for it. She is on a fixed income from SS, but also works a job. With her job she can service the loan. Just not sure where to go because without the current job income she could not service the loan. Also, at her age we are not sure how much longer she can work. Thanks!

Is there an elderly contractual age in Indiana?

Not to my knowledge.

Just not sure where to go because without the current job income she could not service the loan. Also, at her age we are not sure how much longer she can work.

Review Reg. B 1002.6 and its Commentary. You can consider the probable continuance of any income and the life expectancy of the applicant. However if you go this route make sure you have an actuary expert. The SWAG method won't work.

Thanks Dan. One more question. What is the SWAG method ?

Dan,

Never mind lol. Just never heard that term before.