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Do you get a higher loan amount if you apply as single or a married couple?

By Marlin on 12.11.2018

Hello Marlin,

The answer is neither!  The loan amount is not affected by married or single status.  It is determined by the age of the youngest borrower on the loan though.  So, if both borrowers are the same age, then the loan amount is the same as if it were both or just one of them and it would not make any difference which one.  If one borrower were significantly younger than the other, the younger borrowers’ age will lower the eligible benefit as that individual will also be able to stay in the home for life without having to make a mortgage payment. 

Theoretically and according to actuarial tables, an individual who is 62 should be able to remain in the home longer and accrue more interest on the loan than someone who is 85.  Therefore, the HUD calculator will allow an 85-year-old borrower a higher initial loan amount because the borrower will not stay in the home and accrue as much interest as a 62-year-old borrower under normal circumstances. 

There are other factors that can affect life expectancies that HUD does not use and married vs unmarried is one of those unused factors that actuarial tables have shown are influenced by this status.  HUD does not take physical infirmity, life styles such as activity levels or healthy vs non-healthy habits (smoking, drinking, etc.) into account or any other factors other than age, it is the only individual characteristic that will affect the amount the borrower(s) will receive other than property values, interest rates and 2019 lending limits which are program driven.

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