The Quick Read: A retiree with no traditional employment income can refinance a Virginia mortgage by qualifying on assets instead of a paycheck, either by showing eligible assets that cover the whole loan or by converting those assets into monthly qualifying income, subject to underwriting and the property’s occupancy. The path you pick depends on what you own and how you use the home.
- Lives in the home? It is a consumer mortgage. The two asset-based paths apply, and rental-coverage loans do not.
- Rents the home out? A rental-coverage loan may fit, because it qualifies primarily on property-level rental income covering the payment, subject to lender guidelines.
- Asset qualifier path: eligible assets must equal or exceed the entire loan, and no employment or income is documented.
- Asset depletion path: usable assets divided by 60 months become qualifying income that runs through a debt-to-income test.
- Assets are always documented. Skipping a paycheck never means skipping statements.
Does a Retiree Really Need a Paycheck to Refinance?
No. A lender needs to see that you can repay the loan, and a paycheck is only one way to show it. Pensions, Social Security, annuities, regular portfolio withdrawals and the assets themselves can all carry a file. Large balances with little documented income are exactly the profile asset-based programs were built for.
Across the wholesale network Lendmire works with, the retiree files that stall are rarely about age or retirement status. They stall because the borrower applied through a channel that only knows W-2 math. A conventional file wants a debt-to-income ratio built from documented monthly income. A retiree with a multimillion-dollar portfolio and a modest pension can fail that test while being financially strong.
Lendmire is a mortgage broker, not a lender. It arranges these loans through select lenders in its network, and each lender reviews and approves the file. Lendmire’s consumer mortgage lending is licensed in 16 states, Virginia among them. The program figures below are the same for a Virginia borrower as anywhere else the program is offered, and they are ceilings and floors, never offers.
First Question: Do You Live in the Home or Rent It Out?
Occupancy decides which loan type you can use before income even comes up. If you live in the property, or it is your second home, it is a consumer mortgage. If nobody in your household lives there and you rent it to a tenant, it is an investment property.
A rental-coverage loan, known as a DSCR loan, is designed for non-owner-occupied investment properties. Because it is a business-purpose investor loan, it is reviewed differently from a standard owner-occupied mortgage. It cannot fund your primary residence.
Each route has its own tests:
| Property | Loan type | What the file turns on |
|---|---|---|
| Your primary residence | Consumer mortgage | Assets or documented retirement income |
| Your second home | Consumer mortgage | Assets or documented retirement income |
| Rental you own | Rental-coverage (DSCR) | Rent versus the property’s payment |
Path One: Let Assets Cover the Entire Loan
The asset qualifier path asks one question: do your eligible assets, after the credit percentages below, equal or exceed the whole loan? If they do, the loan is reviewed on assets alone. No employment or income is documented, and the lender’s review of your ability to repay rests on the assets. Lendmire’s asset-based mortgage programs page lays out the current structure.
The leverage ceilings are up to 80% loan-to-value on a purchase and 75% on a refinance of a principal residence or second home. Loans run up to $4,000,000, and the credit score floor is 600, subject to underwriting. Reserves are not required at or below 75% loan-to-value. Above that, the lender sets them. Whether cash-out proceeds are allowed on this path is up to the lender and is not published, so treat any cash-out plan here as something to confirm up front.
Here is how the balances count on this path:
- Brokerage accounts, certificates of deposit, money market and savings count at 100%.
- A 401(k) or IRA counts at 90% if you are under 59½, and at 100% from 59½ on.
- Accounts combine.
Consider an illustrative file. A borrower seeks an $800,000 loan and holds $330,000 in brokerage accounts (100% counts, so $330,000), $300,000 in a 401(k) while under 59½ (90% counts, so $270,000) and $200,000 in savings (100% counts, so $200,000). That is $800,000 of usable assets, which meets the loan amount and is reviewed on assets alone. The lender’s own calculation governs, so treat this as a shape, not a promise.
This path rewards people who hold plenty of cash and brokerage balances. It is less forgiving if most of the wealth sits in the house, a business or other assets that are not published as eligible.
Path Two: Turn Assets Into Monthly Income
The asset depletion path takes a different approach. It converts eligible assets, after haircuts, into a monthly qualifying income. The lender divides usable assets by 60 months. That income must then carry the full housing payment and your other debts through the debt-to-income test.
Take another illustrative file. A borrower holds $1,500,000 in securities, which count at 80% for $1,200,000, plus $300,000 in cash, which counts at 100%. That is $1,500,000 of usable assets, divided by 60 months, for $25,000 of monthly qualifying income. That income then has to carry the housing payment and other debts under the debt-to-income test. The lender’s own calculation governs.
Leverage on this path is set separately from the qualifier path, and it varies by occupancy and transaction type:
- Principal residence or second home: up to 80% on a purchase or rate-and-term refinance, and 60% on a cash-out refinance.
- Investment property: up to 65% on a purchase or rate-and-term refinance, and 60% on a cash-out.
- Loan amounts: $125,000 to $3,500,000.
Cash-out proceeds never count as qualifying assets. That matters in practice. If you plan to pull cash out and then count it as the reserve that justifies the loan, the file does not work that way.
The depletion path also has minimums. Qualified assets must be at least the lesser of $1,000,000 or 1.25 times the loan balance, and never below $250,000 liquid when depletion is your only income source. Asset-derived income can also supplement documented income, such as a pension or Social Security, up to a 45% debt-to-income ratio. When it supplements, the minimum-assets rule is waived. That makes this path useful for mixed retirees who have some income but not enough to carry the loan on their own.
Credit follows the lender’s score and loan-amount matrix. A first-time investor on this path needs a 700 score, and housing history of 0x30x12 is the standard, though one 30-day late in the last twelve months may be considered case by case. Multiple bankruptcies are not eligible, and a housing event needs four years of seasoning.
How the Two Paths Count Your Accounts
The two paths treat the same account differently, so never blend the tables. Name the path before you quote a figure.
| Asset | Qualifier path | Depletion path |
|---|---|---|
| Cash, savings, money market | 100% | 100% (cash accounts) |
| Certificates of deposit | 100% | 100% |
| Brokerage / securities | 100% | 80% |
| 401(k) or IRA, under 59½ | 90% | 70% |
| 401(k) or IRA, 59½ or older | 100% | 70% |
| Private stock | Not published | 75% |
| Real-estate equity | Not published | 60% |
Some assets are not eligible on the depletion path at all: custodial accounts, deferred compensation, escrow accounts, foreign funds, cash on hand, stock options and non-vested restricted stock units. Cryptocurrency, precious metals, collectibles, pledged or borrowed funds and business accounts beyond your ownership share are not published as eligible on either path. The documented route is converting them to a seasoned cash balance in a regulated account, with the source reviewed by the lender.
Which Path Fits Which Retiree?
Most retirees fit one of four profiles, and each points to a different starting place. No chart replaces underwriting, but this is how the choice usually runs.
| Retiree profile | Likely route | Why |
|---|---|---|
| Brokerage and cash cover the loan | Asset qualifier | No income needed |
| Large portfolio, loan bigger than liquid assets | Asset depletion | Assets become income |
| Pension or Social Security plus a portfolio | Depletion, supplementing income | Asset income fills the gap |
| Retiree-owned rental | Rental coverage | Rent carries the payment |
If your retirement balances are the bulk of your net worth and you are under 59½, the qualifier path counts them at 90% while depletion counts them at 70%. If you are over 59½, the qualifier path counts them in full. For a retiree whose wealth sits mostly in an IRA, that difference can decide whether the loan clears.
A household with one pension and one retiree can combine documented income with asset income on the depletion path. In a household where one spouse is still working, Lendmire’s piece Can a W-2 Spouse Carry the Mortgage Without Self-Employed Income? covers a different set of options.
What About Documented Retirement Income?
Documented retirement income is the third route, and it is not limited to asset programs. Under the federal ability-to-repay framework, the CFPB explains that most lenders must make a reasonable, good-faith determination that you can repay, and must consider and document income, assets, employment, credit history and monthly expenses. That does not demand a salary. The CFPB’s small-entity compliance guide says income does not have to come from full-time employment, and it lists rental income, interest, dividends, retirement benefits and trust income among the sources a creditor can consider.
Many borrowers think a 43% debt-to-income cap still governs every mortgage. Consumer Finance Monitor reports that the 2020 amendments replaced the strict 43% cap with a price-based limit, though lenders must still consider debt-to-income or residual income. A lender can still impose its own ratio, and the depletion path above has its own debt-to-income test.
Agency programs convert accounts into income by their own formulas, and those formulas differ from this program’s. Do not carry their percentages over. Social Security and pension income is documented with award letters and proof of current receipt. Lenders typically look for continuance on survivor or spousal benefits. Because rules differ, a retiree with strong documented income may do better on a conventional file than on an asset-based one. Compare both.
Retiree-Owned Rental? Rent Does the Work
If the property is a rental you own, a rental-coverage loan tests the property, not you. Rent is measured against the property’s monthly obligation, which covers principal, interest, taxes, insurance and any association dues. Most standard programs are built around a 1.00x baseline, where rent just covers the payment. Select lenders in the network offer programs below 1.00, though loan-to-value and terms adjust when they do.
Your age, W-2 history and personal debt-to-income do not drive this file. Credit, reserves, value, occupancy and property eligibility still do. The appraiser’s market-rent schedule, on an agency form known as the 1007 for a single-family home or the 1025 for a small multifamily, usually supplies the rent figure.
For a retiree with several rentals, property count is not capped by personal debt-to-income.
The purpose of the loan matters here. A cash-out on a rental that funds your living expenses is not a business-purpose use, and that may change how the loan is classified. If your plan for the proceeds is personal, ask your lender and counsel before choosing this route.
Key Terms Defined
Asset qualifier path: a program where eligible assets, after credit percentages, equal or exceed the entire loan, and no income is documented.
Asset depletion path: a program that divides usable assets by 60 months to create monthly qualifying income.
Seasoning: how long funds must have sat in your accounts before a lender counts them.
Debt-to-income (DTI): your monthly debts divided by your monthly qualifying income.
Haircut: the share of an account’s balance a lender does not count, which reflects its risk.
DSCR: rent divided by a rental property’s monthly debt service, where 1.00x means rent just covers the payment.
What Happens to Your Timing and Paperwork?
Statements drive the sequence. On the qualifier path, funds need 60 days of seasoning and two months of statements for each qualifying account. On the depletion path, statements must be at least 120 days old at application, plus the most recent statement within 45 days. Funds from the sale of a business, an inheritance or a legal settlement are excused from that seasoning.
That matters for retirees who are about to move money. Selling a stock position and parking the cash in a new account can reset the clock. If you are retiring soon, decide where the money will live before you apply, then leave it alone.
Gather these before you talk to a lender:
- Two months of statements for every account you want counted, plus older statements for the depletion path
- Evidence of where large deposits came from
- Social Security award letters or pension letters if you will supplement income
- Your current mortgage statement and homeowners insurance declaration
- For a rental, the lease and the appraiser’s rent schedule
Asset-based files are documented on both paths. The loan is a consumer mortgage, so consumer mortgage disclosures apply to it. Business-purpose rental loans are a separate category.
Should You Refinance at All?
Often the honest answer is not yet. A refinance trades your current terms for new ones, and in retirement that tradeoff has extra weight. Stretching the term lowers the monthly obligation but extends the debt. Drawing down assets to qualify can leave less cushion for health costs. A cash-out loan also does not count as income, so it solves a cash need, not a qualifying problem.
Alternatives deserve a fair look. A home equity line of credit lets you borrow against the house without replacing your first mortgage. A reverse mortgage is its own program with its own rules. A refinance on the qualifier path tops out at 75% loan-to-value, so a borrower with thin equity may find another route fits better.
Files get declined for predictable reasons: balances that sit in ineligible accounts, statements that are too new, a credit score below the lender’s matrix, or a loan larger than the assets support. Most of those are fixable before you apply. Tax treatment varies; consult a qualified professional before relying on any deduction.
Frequently Asked Questions
Can I refinance if I have no job at all?
Yes, if assets or documented retirement income can carry the file. Eligible assets can cover the entire loan on the qualifier path, or be converted into monthly income on the depletion path. Each is subject to underwriting, credit review and property eligibility.
Does my age or retirement status count against me?
Not by itself. Lenders weigh assets, credit and the property, and retirement status alone is not a reason for denial. The practical hurdle is documenting what you own, not proving you are still working.
Do I need to sell my investments to qualify?
Usually not. Eligible balances count as they sit, so you can leave them invested. Keep in mind that securities count at 80% on the depletion path but 100% for brokerage accounts on the qualifier path, so the same portfolio can look stronger on one path than the other.
Can I use cash-out proceeds to qualify?
No. On the depletion path, cash-out proceeds never count as qualifying assets. Proceeds are loan money, not a balance you owned before the loan.
Should I refinance before or after I retire?
It depends on which documents you can show. Working income may help a conventional file, while retirement often favors asset-based paths. Timing matters most when your statements and balances are still settling after retirement.
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. Call 828-256-2183 or request a quote.
Lendmire’s asset-based mortgage in Virginia page presents the program for Virginia borrowers.
About Lendmire
Lendmire — NMLS# 2371349 — is a mortgage broker that arranges bank statement, P&L-only, 1099-only and asset-based home financing in 16 states through wholesale lenders, on primary residences, second homes and investment properties. Every option is subject to the lender’s guidelines and full underwriting. Scotsman Guide named Lendmire a Top Mortgage Workplace in both 2025 and 2026.
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References
1. CFPB – What is the ability-to-repay rule?
2. CFPB – ATR/QM Small Entity Compliance Guide
3. Consumer Finance Monitor – CFPB finalizes ability-to-repay and qualified mortgage rules
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 an Inheritance Qualify You for a California Mortgage Before It Is Seasoned? · How Virginia Retirees Qualify for a Mortgage Without a Paycheck · Can You Refinance a California Home on Assets When Your Income Stops?
Guides: Asset-Based Mortgage in Virginia
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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- Lendmire LLC · Firm NMLS# 2371349 · Verify firm licensure
Required disclosures. Lendmire (NMLS# 2371349) operates as a licensed mortgage broker, not a direct lender or depository. The discussion in this article is general in nature and should not be relied upon as financial, legal, or tax advice — every investment scenario is unique and should be reviewed by a qualified professional. Any loan inquiry is subject to lender underwriting, and this article is not a commitment to lend or a guarantee of approval. Mortgage rates, loan terms, and program guidelines vary by borrower, property, and state, and may change without notice. Equal Housing Opportunity. Verify licensure at NMLS Consumer Access.