The Quick Read: Usually, yes. Through select programs in Lendmire’s wholesale network, a vested 403(b) balance counts as a retirement account at a percentage of its value, and that percentage depends on your age and on which asset-based path you use. Nothing is sold or withdrawn. The lender only counts the balance to measure what you can support, subject to underwriting.
- On the asset qualifier path, retirement balances typically count at 90% under age 59½ and 100% at 59½ or older.
- On the asset depletion path, retirement accounts typically count at 70% at any age.
- Only the vested balance counts, and an unpaid plan loan reduces it.
- Both paths are subject to underwriting. The lender’s own calculation governs.
- On a pure rental purchase, a 403(b) more often shows up as reserves under a DSCR loan than as income.
What Is an Asset Qualifier Mortgage?
An asset qualifier mortgage is reviewed around what you own instead of what you earn. Your eligible assets, after the percentages the program applies, must equal or exceed the entire loan amount. No employment or income is documented. The assets themselves are documented in full.
That separates it from a close cousin, the asset depletion mortgage. Depletion turns your usable assets into a monthly income figure by dividing them by 60 months. That figure then runs through the debt-to-income test like a paycheck would.
Across the wholesale network, a borrower is qualified on one path at a time. The two paths use different percentages, so every figure below names its path.
Both paths suit people with large balances and light documented income. Think of a retired teacher, a hospital employee who left the workforce early, or a nonprofit professional living on savings. A 403(b) is the retirement plan most of those people hold.
So Does the 403(b) Count? The Direct Answer by Path
Yes, in both paths, at a discount. The size of the discount depends on the path and, on the qualifier path, on your age.
| Factor | Asset qualifier path | Asset depletion path |
|---|---|---|
| What the assets do | Cover the whole loan | Become monthly income |
| Retirement account credit | 90% under 59½; 100% at 59½+ | 70% at any age |
| Cash, savings, CDs | 100% | 100% |
| Brokerage / securities | 100% | 80% |
| Loan size | Up to $4,000,000 | $125,000 to $3,500,000 |
All of this is through select programs and subject to underwriting.
A lender has to decide which bucket a 403(b) falls in. Programs generally place it with the 401(k) and IRA group. The lender confirms the plan type from your statement during review.
Why Retirement Money Gets a Haircut
A lender discounts retirement money because you cannot reach all of it for free. Pull money out of a 403(b) early and you owe ordinary income tax. You may also owe an extra 10% on the taxable portion, according to IRS Topic 558, which lists the 403(b) among the plans that rule covers. Early generally means before age 59½.
That is why age drives the qualifier path. Under 59½ your balance counts at 90%. At 59½ or older it counts at 100%. The depletion path takes a flat, heavier haircut of 70% at any age.
Fidelity confirms that penalty-free withdrawals generally begin at 59½. Turning 59½ removes the extra 10% only. Ordinary tax on pre-tax money still applies, which is part of why the lender never counts the full balance on the depletion path.
How a 403(b) Counts, Step by Step
The lender follows the same general sequence on every file:
1. List your accounts. That means cash, brokerage, and retirement balances you own and can document.
2. Use the vested balance. Employer match that has not vested does not count.
3. Remove what is ineligible. Borrowed funds and pledged assets fall out.
4. Apply the percentage for each asset type. The path you are on sets those percentages.
5. Compare to the target. On the qualifier path, usable assets must cover the loan. On the depletion path, usable assets are divided by 60 months to produce income.
Qualifier-path example
Take an $800,000 loan. You hold $330,000 in brokerage accounts (100% counts, so $330,000). You hold $300,000 in a 403(b) and are under 59½ (90% counts, so $270,000). You hold $200,000 in savings (100% counts, so $200,000).
Together that is $800,000 of usable assets against an $800,000 loan. That is reviewed on assets alone, subject to underwriting. At 59½ or older, the same 403(b) would count in full.
Depletion-path example
Say you hold $1,500,000 in securities (80% counts, so $1,200,000) and $300,000 in cash (100%). That is $1,500,000 usable. Divided by 60 months, it produces $25,000 of monthly qualifying income. That income then has to carry the housing payment and your other debts through the debt-to-income test.
Now picture a retirement-heavy household whose assets sit mostly in a 403(b). Retirement accounts are counted at 70% on this path, so the usable amount comes in well below the statement balance, and the monthly qualifying income shrinks with it. Depletion also has minimums. Assets must be at least the lesser of $1,000,000 or 1.25 times the loan, and never below $250,000 liquid when assets are your only income source. Both examples are illustrations. The lender’s own calculation governs.
Do You Have to Cash Out the 403(b)?
No. The balance stays where it is, and the count is only a qualifying convention. Your plan does not know the mortgage exists.
One practical point matters for the qualifier path. If you also need those same dollars for the down payment or closing costs, they cannot do two jobs.
Edge Cases That Change the Number
You are under 59½
You get the lower percentage on the qualifier path, 90% instead of 100%. Some lenders in the network look closely at how reachable the money really is. Tax exceptions to the early-withdrawal rule exist, but those are tax rules, not lender rules. Do not assume a lender treats a tax exception as full credit.
You still work for the plan sponsor
Many 403(b) holders are teachers, nonprofit staff, and hospital employees who are still on payroll. A still-employed borrower can often use the balance, because the count does not require a withdrawal. Whether your plan allows withdrawals while you work is a plan question. Ask your administrator. Ministers and church employees may hold a church plan, which has its own rules.
You have an outstanding plan loan
An outstanding loan lowers the balance the lender counts. Fidelity notes that an unpaid 403(b) loan is treated as a withdrawal. Expect to disclose it.
You took a hardship withdrawal
A hardship distribution generally cannot be repaid to the plan, according to PlanConnect. The money is taxed and, before 59½, the 10% additional tax may apply. Those facts are part of why lenders do not treat retirement balances as fully liquid. The withdrawn funds also leave the account you were counting.
Unvested funds, Roth balances, annuity forms
Unvested employer money is excluded. A 403(b) can sit in an annuity contract or a custodial account, and your statement shows which. Programs generally group both with other retirement accounts, though the lender confirms from the statement. Roth balances may be treated differently in some programs, so ask before you assume.
You have several accounts, or a spouse with a separate plan
Accounts combine on the qualifier path. Each account still needs its own statements. A spouse’s plan counts only if the spouse is a borrower on the loan.
You are thinking about a rollover
Rolling a 403(b) into an IRA does not change the qualifier-path percentages in a meaningful way. On the depletion path, all retirement accounts count at 70% anyway. The bigger issue is timing. A new account has to season too, so moving money right before applying can set the clock back. Talk to your plan administrator and a qualified professional before moving anything.
Seasoning and Paperwork for a 403(b)
No income documentation never means no documentation. Here is what the lender typically needs, through select programs and subject to underwriting:
- Qualifier path: 60 days of seasoning and two months of statements for each qualifying account.
- Depletion path: statements at least 120 days old at application, plus the most recent statement within 45 days.
- Every 403(b): statements showing the vested balance, the account owner’s name, and any outstanding loan.
- A vesting schedule: if you are not sure how much of an employer match has vested.
Credit still matters. The qualifier path sets a 600 minimum score. The depletion path follows the lender’s matrix. A first-time investor on the depletion path needs a 700 score. Housing history of 0x30x12 is the standard, and one 30-day late in the last twelve months is considered case by case.
Leverage: What Your 403(b) Can Support
The percentages above say how much of your balance counts. These figures say how much you can borrow against the property. They are ceilings, never offers.
Asset qualifier path:
- 80% loan-to-value on a purchase.
- 75% on a refinance.
- These apply to a principal residence or second home.
Asset depletion path:
- 80% on a purchase or rate-and-term refinance of a principal residence or second home.
- 60% on a cash-out refinance of a principal residence or second home.
- 65% on a purchase or rate-and-term refinance of an investment property.
- 60% on a cash-out refinance of an investment property.
- Cash-out proceeds never count as qualifying assets.
On the qualifier path, no reserves are required at or below 75% loan-to-value. Above that, the lender sets them. The depletion path publishes no reserve months.
The Rental Investor Decision: Income or Reserves?
For a rental purchase, a DSCR loan is usually the more natural lane than an asset-based mortgage. A DSCR loan is reviewed primarily on property-level rental income covering the payment, subject to lender guidelines. The asset-based paths above fit best when the home is your residence or second home. They can also fit when a property’s rent is thin.
DSCR loans are designed for non-owner-occupied investment properties. Because they are business-purpose investor loans, they are reviewed differently from a standard owner-occupied mortgage.
Your 403(b) still has a job on a DSCR file. Across the network, most programs want to see liquidity after closing, and a vested balance can help meet that, depending on the program’s reserve rules.
A few lenders in the network lean more on liquidity than others, and the strictest overlays look hardest at retirement money. That is the argument for comparing programs before you pick a path. Some investors with a large 403(b) and thin documented income compare both lanes on the same property.
What Does Not Count, and Why a 403(b) Falls Short
A 403(b) balance usually falls short for one of these reasons:
- Unvested money. Employer contributions you have not earned do not count.
- A plan loan. The outstanding balance reduces the total.
- Too little seasoning. A new or recently moved account has not met the statement rules.
- The depletion haircut. At 70%, a large balance shrinks noticeably before it becomes income.
- Minimum-asset rules. The depletion path needs at least the lesser of $1,000,000 or 1.25 times the loan, and never below $250,000 liquid when assets are your only income.
Other assets you may hold, such as crypto, precious metals, and collectibles, are not published as eligible on either path. The documented route is converting them into a seasoned cash balance in a regulated account, with the source reviewed by the lender. Deferred compensation and non-vested restricted stock units are also not eligible on the depletion path.
Key Terms Defined
Asset qualifier mortgage: A loan that qualifies you when your eligible assets cover the whole loan, with no income documented.
Asset depletion: A method that divides your usable assets by 60 months to create a monthly qualifying income.
Vested balance: The part of your account that is truly yours, excluding employer money you have not yet earned.
Seasoning: The length of time money must sit in an account before a lender counts it.
Haircut: The percentage of an asset’s value a lender does not count.
Reserves: Liquid funds a lender wants you to hold after closing.
Frequently Asked Questions
Does a 403(b) count if I am still working?
Usually, yes. Whether you are still employed does not stop the balance from counting, because nothing is withdrawn. The lender looks at the vested balance on your statement. Whether your plan allows withdrawals while you work is a separate question for your administrator.
Does my age change how much counts?
On the qualifier path, yes. Retirement balances typically count at 90% under 59½ and 100% at 59½ or older. On the depletion path, retirement accounts typically count at 70% at any age. Both are subject to underwriting.
What if I have a loan against my 403(b)?
The outstanding loan lowers the balance the lender counts, and you should expect to disclose it. An unrepaid plan loan is treated as a withdrawal under the plan rules, as Fidelity explains. Pay attention to this before you apply.
Can I combine my 403(b) with other assets?
Yes. Accounts combine on the qualifier path, and each carries its own percentage. A 403(b) at 90% can sit next to brokerage and savings at 100% to reach the loan amount. Each account needs its own statements.
Should I roll the 403(b) into an IRA first?
Rarely helpful. The qualifier path treats IRA and 401(k) balances alike, and the depletion path applies one retirement percentage to all of them. A move can also reset seasoning on the new account. Tax treatment varies; consult a qualified professional.
Next Step
If you are qualifying on assets rather than income and want to see how the numbers work, Lendmire can help you compare asset-based mortgage options based on your statements, the property, credit profile, leverage, and your goals. Lendmire is a mortgage broker. Consumer mortgage lending is licensed in 16 states: Alabama, California, Colorado, Florida, Georgia, Indiana, Michigan, Montana, New Mexico, North Carolina, Ohio, Pennsylvania, Tennessee, Texas, Virginia, and Washington. Programs change, and every file is underwritten individually.
A retirement plan built over a career can count toward a home loan, but only if the statements are clean, vested, and seasoned before you apply.
About Lendmire
Lendmire is a mortgage brokerage (NMLS# 2371349) licensed for consumer mortgage lending in 16 states, arranging bank statement and other alternative-documentation mortgages — P&L-only, 1099-only and asset-based paths — through a wholesale lending network. Eligibility is determined by the lender on each file. Scotsman Guide named Lendmire a Top Mortgage Workplace in both 2025 and 2026.
Investors who want the broader program framework can review how DSCR loans work.
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References
1. IRS Topic 558: Additional tax on early distributions from retirement plans
2. Fidelity: What is a 403(b)?
3. PlanConnect: 403(b) hardship withdrawals
This article is part of Lendmire’s asset-based mortgage program — full qualification details, guidelines, and scenarios live on the program page.
Related reading: Can You Get an Asset Qualifier Mortgage With a Co-Signer? · How to Buy Before You Sell in Alabama Using an Asset Qualifier Mortgage · How to Buy Before You Sell in Pennsylvania Using an Asset Qualifier Mortgage
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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- Lendmire LLC · Firm NMLS# 2371349 · Verify firm licensure
Important disclosures. Lendmire (NMLS# 2371349) is a licensed mortgage brokerage. Lendmire is not a direct lender, depository institution, or financial advisor. All loan inquiries are subject to lender underwriting; this article does not constitute a commitment to lend. Rates, terms, and program guidelines are subject to change without notice and vary by borrower profile, property type, and state. Information in this article is general in nature and is not financial, legal, or tax advice. Equal Housing Opportunity. NMLS Consumer Access: nmlsconsumeraccess.org.