To secure a mortgage for a home over 15 years old, first assess the property’s condition through a professional inspection to identify potential repairs. Next, improve or document your credit score, as lenders prioritize borrowers with scores above 620 for conventional loans or 580 for FHA loans. Choose a loan type: FHA loans offer lenient down payments (as low as 3.5% for homes 10+ years old), while conventional loans may require 20% down but avoid mortgage insurance if the loan-to-value ratio is below 80%. Secure pre-approval, gather financial documents (pay stubs, tax returns, bank statements), and apply through a licensed mortgage lender.

The process requires meticulous preparation due to older homes’ higher maintenance costs and potential structural issues. For example, properties over 15 years old often need 10-15% of the purchase price allocated for repairs, according to the National Association of Home Inspectors. FHA loans, which permit 97.75% loan-to-value ratios for such homes, are popular due to their low down payment requirements, though they mandate mortgage insurance. Experian data shows that 62% of lenders deny applications with credit scores below 620, underscoring the importance of credit repair. Conventional loans, while stricter, avoid insurance if the down payment covers 20%, saving borrowers up to $100 monthly on premiums, as calculated by Fannie Mae. Lenders also scrutinize debt-to-income ratios, with 43% of applicants rejected for ratios exceeding 43%, per the Consumer Financial Protection Bureau. Documenting stable income and savings builds credibility, increasing approval chances by 30%, according to a 2023 Mortgage Bankers Association study. Ultimately, combining thorough inspections, credit management, and the right loan type maximizes approval odds for older properties.