Jan 10, 2026
A 61-year-old truck driver recently called into The Ramsey Show with a question many Americans quietly wrestle with: Is it too late to buy a first home when you’re nearing retirement and have nothing saved?
“I’m going to be 62 next month,” Antoinette told hosts Rachel Cruze and Ken Coleman. “I don’t have anything saved for retirement, and I want to become a first-time homeowner.”
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But can she afford it? The caller said she had no retirement savings, no money for a down payment, and roughly $8,000 in debt, mostly from credit cards and a car loan. She admitted she didn’t know how much she owed on her vehicle, the total loan balance, or how upside-down she might be after rolling negative equity from a previous car into a newer minivan.
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The hosts pressed her on the basics (loan balances, interest rates, and monthly payments) and repeatedly ran into the same issue: she didn’t have a firm grasp on her own numbers. That lack of clarity, they argued, was a major red flag in itself.
Their advice was blunt: buying a home under these circumstances would be a mistake. Before even considering homeownership, the hosts said, she should eliminate her debt, sell the expensive vehicle, and redirect that cash flow toward retirement savings. Taking on a mortgage while carrying consumer debt and no retirement cushion, they warned, is a recipe for disaster (1).
Retirement can't wait, even when buying a house feels critical
This caller’s situation isn’t unique. Many Americans feel intense pressure to buy a home even when their finances aren’t ready. High housing costs, rising interest rates and a cultural emphasis on homeownership can make renting feel like “falling behind,” especially later in life.
But retirement can't be ignored. According to Fidelity, the average person aged 60 to 64 has about $246,500 saved for retirement (2). That’s not a guarantee of comfort, but it’s far more than zero. Entering your 60s with no retirement savings leaves very little margin for error, especially when adding new fixed expenses like a mortgage, property taxes and home maintenance.
Debt compounds the problem. CNBC reports the average U.S. consumer carries $105,056 in total debt, including mortgages, credit cards, auto loans and other obligations (3). When debt payments eat into cash flow, they limit your ability to save, invest or handle emergencies. For someone nearing retirement, that squeeze can be especially dangerous.
Plus, buying a house is not a short-term commitment. A mortgage taken out in your early 60s could easily extend into your 90s. Without retirement savings to fall back on, a job loss, health issue or income disruption could put homeownership at risk.
That’s why the Ramsey hosts pushed so hard on taking the right steps in the right order. Their argument wasn’t that buying a home is inherently wrong, but that timing and financial stability matter.
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Financial benchmarks to hit before buying a home
The host's core advice focused on the order of operations. Before buying a home, most financial planners recommend hitting a few basic benchmarks:
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- A solid emergency fund: Typically three to six months of expenses in cash.
- Manageable or eliminated consumer debt: Especially high-interest credit card debt and oversized car loans.
- Some level of retirement contribution: Even modest contributions matter, particularly when time is limited.
- Clear affordability math: A mortgage payment that fits comfortably within your budget, without crowding out savings or essentials (4).
For those starting late, like the caller, the path forward often looks less like “buy now” and more like build readiness. That might mean downsizing transportation, paying down debt aggressively, and redirecting freed-up cash to retirement accounts. It also means getting crystal clear on the numbers, including debt balances, interest rates and monthly obligations.
The uncomfortable truth is that not every financial goal can happen at once. But making deliberate choices like prioritizing stability, reducing debt and building savings can turn what feels like an impossible mountain into a reachable goal.
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The Ramsey Show Highlights (1, 4); Fidelity (2); CNBC (3)
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Danielle is a personal finance writer whose work has appeared in publications including Motley Fool and Business Insider. She believes financial literacy key to helping people build a life they love. She’s especially passionate about helping families and kids learn smart money habits early.
