Can a Power of Attorney Get a Home Loan?

By Heather Frances J.D.

If you aren’t able to personally accomplish a task, you may grant someone else – called your agent – the power to do it for you. This permission can include things like accessing your bank accounts, selling a vehicle, purchasing property or getting a home loan. In fact, your power of attorney can grant your agent authority to conduct nearly any type of real estate transaction you could conduct.

Powers of Attorney

The person who grants power to an agent is called the principal, and the principal may use either a general power of attorney or special power of attorney to give his agent powers. A general power of attorney gives the agent power to accomplish anything the principal could do, whereas a special power of attorney gives the agent narrower powers, such as the power to accomplish a specific real estate transaction. Either power of attorney can be durable – effective even if the principal is incapacitated – or non-durable. Non-durable powers of attorney give the agent authority as long as the principal is not incapacitated but terminate after incapacity.


When you give your agent authority to obtain a mortgage or home loan, you will typically give him power to do whatever is necessary to carry out that authority. Your agent may need to negotiate terms for the loan, sign loan documents, or take care of other loan preparations. When your agent obtains a mortgage or loan on your behalf, the agent is not personally liable for the debt, but you are.

Ready to appoint a power of attorney? Get Started Now

Reverse Mortgages

Depending on its wording, a power of attorney can be used to obtain a reverse mortgage. Reverse mortgages allow a homeowner to receive payments from a lender based on the homeowner’s equity in the property. Reverse mortgages are primarily obtained by elderly persons, and a power of attorney allows someone else to sign the documents for the elderly principal. When a principal is incapacitated, the agent may seek to obtain a reverse mortgage to raise money to provide home care or pay for other care expenses.


A power of attorney must be signed by a principal who is competent when the document is executed, even if he later becomes incapacitated. Since many of the elderly are especially vulnerable to influence and pressure, reverse mortgage lenders may require proof of competency such as a letter from the principal’s doctor stating that the principal was competent at the time the power of attorney was executed. This ensures the agent’s authority is legitimate and that the principal knew what he was doing when he gave the agent this authority.

Ready to appoint a power of attorney? Get Started Now
Can You Sell a Home With a Power of Attorney?


Related articles

Can the Seller Give Power of Attorney at the Closing?

A real estate seller may give another person power of attorney before or during the deal's closing. The power of attorney document allows the person, known as the agent, to act for the seller during the sale. The agent signs papers for the sale, such as the deed, in place of the seller. While a seller giving a power of attorney for a closing isn't unusual, there are some matters to consider.

Can a Person With Power of Attorney for Another Profit From the Sale of a House?

A power of attorney is created when a person -- the principal -- creates a document giving authority to a third party – the agent – to accomplish tasks on his behalf. The agent’s authority can be very broad or narrowed to just one area. When an agent has authority to sell the principal’s home, he must act in the principal’s best interests.

Can You Change a Deed Anytime You Want to if You Have Power of Attorney?

When you sell real property, the sale is recorded by changing the deed to the property. For various reasons, a person may want to grant the power to sell the property to an agent under a power of attorney. State laws vary about the requirements for changing a deed and creating a valid power of attorney, but all states allow a power of attorney to be used to transfer real estate.

Power of Attorney

Related articles

Can I Refinance With Power of Attorney?

When you are named as a financial agent under a general power of attorney, you have the right to undertake any action ...

Assuming a Mortgage With Power of Attorney

While state laws regarding powers of attorney vary, a power of attorney can allow one person to conduct financial ...

Can a Power of Attorney Give Away a Life Estate?

A power of attorney is a written document wherein a principal grants an agent the power to take action on the ...

How to Grant a Power of Attorney

A power of attorney is a legal document in which a person, known as the principal, authorizes legal authority to ...

Browse by category
Ready to Begin? GET STARTED