5 Best Loan Options for Senior Citizens In 2019

 A variety of secured and unsecured loan options are available for seniors in the market today. Read on to discover the best loans for senior citizens in 2019.

Old age comes with its share of challenges. The future can be very frightening financially as you age and it is important to know that you can be able to get some money when the need arises.

Just like every other person, senior citizens have financial needs too they need to be able to meet them. If you are looking for loans for senior citizens then take a look at some of the available options.

1. Payday Loans

Also known as cash advance loans, these loans are rather expensive but come in handy in cases of emergencies. They are short term and are processed quite fast, within 24 hours only.

With this loan, you can get $500 - $1200. Should you take the loan you need to pay it as fast as you can because they have large fees associated with them. Many seniors use this loan when they are in between retirement checks.

It is easy to apply for SSI payday loans because you do not need any security.

2. Student Loans

This loan is available to senior citizens who wish to return to school. This loan is divided into two types, subsidized and unsubsidized. The subsidized loans accrue no interest as long as you are enrolled in an institution even if it just part-time, and you have a financial need. Subsidized loans accrue interest as soon as you take it.

These Stafford loans have no age restrictions and you will not have to have your credit history checked before getting an approval. Student loans have a low fixed interest rate.

You can also apply for a student loan from private lenders but such loans are not guaranteed federally and might have a very high-interest rate when compared to Stafford loans. You will also have to pay for them as soon as they are issued.

3. Reverse Mortgages

You need to be aware of the pros and cons of the reverse mortgages before applying for one. A reverse mortgage loan is basically just flipping your old mortgage payment back to you by giving the equity of your home to the lender.

According to your lender, this can be paid back as monthly payments, in a lump sum, or twice or thrice a year. This type of mortgage is available to seniors 62 and older.

You can take this loan if you:
  • Need money for home improvements
  • Want to pay off some bills
  • Want to pay off an existing mortgage 
  • Need more retirement income
  • Have a health-related emergency
You can apply for this loan from government agencies for a single purpose. Some non-profits organizations can also offer this loan. The department of housing and urban development offers the Home Equity Conversion Mortgages and you can apply for it even if you still owe some money or you are currently paying any mortgage.

The disadvantages of this loan include:
  • It has a very high closing fee
  • You might have nothing to leave your heirs and this usually gets them upset
  • the equity you have in your home will be depleted
This loan for senior citizens comes in handy when you want to live in your home and you do not want to have to pay your mortgage ever again. The money that is payable to you is also not taxable.

This loan has been criticized because of the high costs in securing and closing but with the reverse mortgage loan, you can never owe more than your home's worth.

4. Home Improvement Loans

The unexpected can happen. For example, you can have a broken water pipe or a natural disaster and need it fixed. This is the loan to apply for.

The collateral for the loan is mainly the property itself. This home loan for seniors is available in various states and has very low interests. They are meant to cover emergencies but there are other home improvement loans that you can get if you need to revamp your home to make it wheelchair accessible if need be.

Find The Best Loans For Senior Citizens Available

These are the 4 major loans for senior citizens that are easily available, they can work for both short term and long term financial needs. Always make sure that you negotiate the lowest interest rate and the lowest monthly payment that your lender can offer.

Before taking out any loan get to know all the penalties involved should you not be able to make the payments as agreed.

You can also shop around for the best loan with the lowest interest rate and try to get your lender to match it. Lenders are always very flexible because they only make money when they give out loans and this is why you should not be afraid to negotiate your loan demands.

Other Loans Available

There are several other loans available for seniors that you can take a look at as you are shopping around for the perfect fit.
They include:
  • Second mortgage: this is when you take out another mortgage on top of the existing one. They have high interest rates
  • Refinanced mortgage: this is simply changing the existing mortgage, for example, switching from an adjustable rate to a fixed rate mortgage
  • Standard mortgage: the traditional mortgage that lasts between five to thirty years.
  • Reverse mortgage: available to seniors between the age of 62 and above.
  • Veterans loan (VA Loan): this loan is guaranteed by the department of veterans affairs and is available to all veterans of the armed forces and their spouses. Its interests are much better than those of the conventional loans are and it can allow veterans to get into a home with no down payment.
Choose the most convenient loan to suit your needs.

Consider All the Loans for Senior Citizens Available Before Choosing One

With a number of loans for senior citizens to choose from, you can be sure to secure a loan when you need one.

Take time to clearly understand each loan and its pros and cons before making the decision to take it.

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