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Are You Discriminating Against Yourself?

That headline sounds odd, but the fact is that some people assume they don’t qualify for better credit or for a home loan — when, in fact, they do!

Check out these legal facts:

FACT: A credit card company cannot give a young person a lower credit limit based on age.

WHY THIS MATTERS: The lower your balance-to-limit ratio, the higher credit score you get. Creditors cannot penalize young people by giving $500 limits to people under age 22 and $1,500 limits to people older. Age-based credit is prohibited by the Equal Credit Opportunity Act (ECOA).

FACT: A lender must allow you to include welfare, disability income, any type of public assistance income, social security, income child support, spousal maintenance/alimony in your loan application — as long as that income will continue for at least three more years.

WHY THIS MATTERS: If your income qualifies to make the mortgage payment, no one can deny you a loan based on the source of your income.*

FACT: A lender cannot deny your loan because you won’t live long enough to pay it off. Age discrimination is illegal. Some people assume they are too old to get approved for a 30-year loan, but that is not so.

WHY THIS MATTERS: If you are 100 years old and you want a 30-year fixed rate for the lowest possible payment, no one can deny you that loan based on your age. If you don’t live to 130, then you can pass on the ownership through your will. Your heirs can refinance into their name(s), or sell the property. This creates generational wealth.

If you have a question about discrimination and qualifying for a mortgage, let me know. U.S. laws are clear and very strict that any unequal treatment based on age, sex, race or color, national origin, religion, marital status, or the source of income is illegal.

*It goes without saying that the income must be from a legal source, not from illegal money laundering, etc.

You can read more about Your Equal Credit Opportunity Rights here.

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