If you’re retired or nearing retirement, you might be wondering: Can I get a mortgage without a job? The answer is yes—you can. In fact, both FHA and conventional loans allow you to qualify using retirement income, including distributions from 401(k), IRA, pensions, or annuities.

The key is knowing what lenders look for and making sure your documentation is clean and consistent. Whether you’re already drawing from your retirement accounts or plan to start taking distributions in the near future, here’s how it works.

Yes, Retirement Income Can Be Used to Qualify

Lenders care about two main things when evaluating income for a mortgage: stability and continuity. That means they want to see that your income source is reliable and that it will continue for at least three years after the loan closes. As long as your retirement income meets those two standards, it can absolutely be used to help you qualify for a home loan.

This is true for both FHA loans and conventional loans backed by Fannie Mae or Freddie Mac.

If You’re Already Receiving Distributions

If you’re already taking regular withdrawals from your 401(k), IRA, or similar retirement account, the process is relatively straightforward.

Here’s what you’ll need to provide your lender:

• A copy of your most recent 1099-R showing the annual income you received from retirement distributions

• Or, two months of bank statements that show the monthly deposits hitting your account

• A statement from your retirement account confirming the current balance (this proves the income will last at least three more years)

If your account balance and distribution history check out, your lender can count that income toward your loan approval without any extra steps.

If You Haven’t Started Taking Distributions Yet

This scenario is just as common—and still very workable. Let’s say you’ve retired, have substantial funds in your IRA or 401(k), but you haven’t started taking distributions. You can still use that income to qualify, but you’ll need to initiate the distribution plan before closing and document everything up front.

Here’s how to do it:

1. Set up a recurring monthly distribution through your account provider

2. Get written documentation confirming:

   • The amount and frequency of the planned distributions

   • That the distributions will begin before or at closing

   • That the account balance can support this income for at least three years

3. Provide a current account statement to back this up

4. Most lenders want to see at least one deposit hit your account before or at closing to prove the income has started

This method is accepted by both FHA and conventional lenders, and is commonly used by retirees who haven’t yet started drawing retirement income but want to buy or refinance.

Lump Sum Withdrawals Don’t Count

One thing to keep in mind: lump sum withdrawals aren’t considered income.

If you take $25,000 from your IRA in a one-time distribution, that doesn’t count toward your monthly income for mortgage qualifying purposes. Lenders want to see recurring, predictable payments, not one-time events.

You can use a lump sum toward a down payment, but it won’t help your income profile unless structured as a monthly draw.

FHA vs. Conventional: Any Major Differences?

Not really.

Both loan types require retirement income to be:

• Documented

• Consistent

• Expected to continue for at least three years

FHA loans are generally more flexible with credit and debt-to-income ratios, while conventional loans may offer better pricing if you have a strong credit profile.

Final Thoughts

Retirement doesn’t mean you’re locked out of the mortgage world.

Whether you’re already drawing from your retirement accounts or plan to start, you have options. Lenders are simply looking for stability and predictability.

With the right documentation and a little planning, your retirement income can be used to qualify for a purchase or refinance—just like any other income source.

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