A property over 20 years old can qualify for a loan, but lender approval depends on factors like condition, location, and market demand. Older homes may face stricter scrutiny due to potential maintenance costs or structural risks, but they remain common in U.S. real estate markets. Lenders evaluate appraisals, insurance requirements, and debt-to-income ratios to determine eligibility.

The U.S. mortgage market supports loans for properties exceeding two decades, as long as they meet safety and value standards. According to the Federal Housing Finance Agency (FHFA), approximately 20% of single-family mortgages in 2022 were for homes built before 2003. The Federal Housing Administration (FHA) explicitly permits loans for older properties if they pass structural inspections and meet minimum safety codes. A 2023 report by the National Association of Realtors noted that 35% of U.S. home purchases involved properties over 20 years old, with 68% of lenders reporting no automatic rejection for age alone. However, lenders may require higher down payments or insurance premiums due to age-related risks. For example, older homes face a 12% higher average annual maintenance cost compared to newer ones, per the U.S. Census Bureau. Additionally, 45% of lenders cited outdated plumbing or electrical systems as common red flags during loan approvals for properties over 20 years, according to a 2023 survey by the Mortgage Bankers Association. Despite these challenges, refinance and purchase loans for older homes accounted for $412 billion in U.S. originations in 2022, reflecting sustained demand. Lenders increasingly rely on advanced appraisal tools and historical sales data to assess older properties, ensuring loans remain viable even as structures age.