To secure a loan for a 30-year-old home, first assess your credit score, which should ideally be 670 or higher to qualify for favorable rates. Secure a 20% down payment to avoid private mortgage insurance (PMI) and reduce loan terms. Choose a fixed-rate mortgage for stability or an adjustable-rate mortgage (ARM) for lower initial payments. Gather documentation including pay stubs, tax returns, bank statements, and property details. Apply through a mortgage lender or bank, and obtain pre-approval to strengthen your offer. Budget for closing costs, typically 2-6% of the loan amount.

The steps above are critical due to the home’s age, which may increase maintenance costs and affect loan eligibility. A 2023 report by the Consumer Financial Protection Bureau (CFPB) found that 30-year-old homes often require higher down payments (18-25%) compared to newer properties, as lenders view them as riskier. For example, a borrower with a 680 FICO score and a 20% down payment can secure a 30-year fixed loan at 6.5% interest, while a 740 FICO score might qualify for 5.8%. Additionally, pre-approval saves time; a 2022 National Association of Realtors survey noted that 88% of sellers prefer offers with pre-approval. Closing costs average $5,000-$15,000, depending on location and loan type. Lenders also consider property condition; a 2023 study by Zillow revealed that 30-year-old homes require 15-20% more repairs than newer homes, impacting loan approval. These factors collectively influence interest rates, loan terms, and approval likelihood.