4 Ways To Borrow Money When You’re Retired
Ideally, retirement should be about relaxing, traveling, and all types of leisure activities. However, some federal employees sometimes find themselves in a financial crisis due to unexpected expenses. If you find yourself needing extra money post-retirement, you may want to consider a loan.
Is It Possible For Retirees To Take Out A Loan?
Yes, it is still possible to take out a loan after you have retired. However, there may be some considerations for both the lender and the borrower. It is true that lenders tend to be wary of retired borrowers since they are older and no longer have a fixed income. Likewise, retired borrowers should consider their ability to repay their loans to avoid getting their assets repossessed. Keep on reading to find out more about the best loan options for retired employees.
Ways Retired Federal Employees Can Borrow
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Personal Loan
Personal loans are the most convenient type of loan for retirees since they have less requirements and can be used for any financial need. Retired federal employees can take advantage of our federal employee loan program with our ACCESS LOANS™ loan programs. Under this program, we don’t require collateral, nor do we check credit scores, and you can enjoy lower interest rates.
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Peer-To-Peer Loan
If you have a trusted friend or family member, you may consider borrowing money from them. This option may enable you to get a loan without an interest rate or, at least, a lower interest rate compared to a loan from financial institutions. However, although this is a convenient and more affordable option, make sure that you repay the loan as agreed, to avoid spoiling your relationship with that person
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Line Of Credit
A line of credit is a flexible type of loan where you are given access to a certain amount that you can use whenever or however you wish. You then need to repay the amount you borrowed either immediately or over a specified period. Lines of credit are often provided by banks and credit unions.
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Home Equity Conversion Mortgage
A lot of retirees opt to sell or use their homes as collateral if they need a large amount of cash. This is not a very good option, however, because they risk losing their homes entirely if they fail to pay the amount. A safer alternative is the Home Equity Conversion Mortgage (HECM), a program backed by the US Department of Housing and Urban Development (HUD) and the Federal Housing Administration (FHA). Through this program, homeowners can convert a portion of their home equity into loan proceeds. With this program, the loan amount does not need to be paid off until the home is sold, or the borrowers pass away.
* ACCESS LOANS™ products are funded and serviced by Safra National Bank of New York (“SNBNY”).
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