The Quick Read: A retiree with no paycheck can refinance a Montana home by qualifying on assets instead of wages, either by showing that eligible savings and investments cover the whole loan or by converting them into monthly income, with each path carrying its own leverage, seasoning and documentation rules, subject to underwriting.
- Asset qualifier path: Eligible assets, after the credit percentages below, must equal or exceed the entire loan. Employment and income are not documented. Leverage runs up to 75% on a refinance of a principal residence or second home, through select programs.
- Asset depletion path: Usable assets are divided by 60 months to create a monthly qualifying income. That income must carry the housing payment and other debts through a debt-to-income test.
- Assets are always documented. Skipping income documentation never means skipping documentation. Statements, seasoning and a source review still apply.
- Rental properties are different. A rental you own is usually refinanced as a business-purpose DSCR loan, which looks at the property’s rent rather than your retirement income.
Which Path Fits a Retiree With Assets but No Paycheck?
Pick the asset qualifier path when your balances are larger than the loan. Wholesale-network programs treat these as two separate roads, and a borrower is qualified on one road at a time.
Here is the side-by-side. These are ceilings and floors from select programs, subject to underwriting, not offers.
| Factor | Asset qualifier path | Asset depletion path |
|---|---|---|
| What it tests | Assets cover the whole loan | Assets become monthly income |
| Refinance leverage | Up to 75% (primary or second home) | Up to 80% rate-and-term (primary or second home) |
| Cash-out | Set by the lender, not published | Up to 60% (primary or second home) |
| Loan amounts | Up to $4,000,000 | $125,000 to $3,500,000 |
| Credit | 600 minimum | The lender’s matrix |
| Statements | 60 days of seasoning, two months each | 120 days old, plus one within 45 days |
Many retirees ask whether their Social Security or pension matters. On the asset depletion path, documented income may supplement the asset-derived income, up to a 45% debt-to-income ratio. When it supplements, the minimum-assets rule is waived. Retirees who live mostly on a pension sometimes also qualify on documented income under an applicable program, subject to lender guidelines. That is a separate conversation from the asset paths here.
Across the lenders Lendmire works with, the pattern is consistent. Retirees with a large brokerage account and a modest mortgage usually fit the qualifier path. Retirees with one big retirement account and a sizable mortgage balance usually fit the depletion path.
How the Asset Qualifier Path Works
On the asset qualifier path, the lender adds up your eligible assets after applying a credit percentage to each. If the total equals or exceeds the entire loan amount, you qualify on assets alone. No employment or income is documented, and the lender’s review of your ability to repay rests on those assets.
The credit percentages are these, subject to underwriting:
- Brokerage accounts, certificates of deposit, money market and savings: 100% of the balance counts.
- 401(k) and IRA balances: 90% counts under age 59½, and 100% counts at 59½ or older.
- Accounts combine. You can stack several to reach the loan amount.
Here is a sanctioned illustration, and the lender’s own calculation governs. Say you want an $800,000 loan. You hold $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 matches the loan, so the file is reviewed on assets alone.
Seasoning is the waiting period an account must show before the lender counts it. Here it is 60 days, with two months of statements for each qualifying account. Credit starts at a 600 minimum score. Housing history is expected at 0x30x12, meaning no 30-day lates in the last twelve months. One late payment is considered case by case. Multiple bankruptcies are not eligible. No reserves are required at or below 75% loan-to-value (LTV, the loan as a share of the property’s value). Above that, the lender sets them.
Because this is a consumer mortgage, the usual consumer disclosures apply. Lendmire arranges the loan through select lenders in its network and does not lend directly.
How the Asset Depletion Path Works
Asset depletion turns a pile of assets into a paycheck on paper. The lender takes the usable balance, divides it by 60 months, and treats the result as monthly income. That income then has to carry the full housing payment and your other debts through the debt-to-income test.
Each asset class is trimmed first. Cash accounts and certificates of deposit count at 100%. Securities count at 80%, and private stock at 75%. Retirement accounts count at 70% at any age, and real-estate equity at 60%. Several things do not count at all on this path:
- Custodial accounts and deferred compensation.
- Escrow accounts and foreign funds.
- Cash on hand.
- Stock options and non-vested restricted stock units.
- Funds from non-regulated financial companies.
Here is the sanctioned arithmetic. Say you hold $1,500,000 in securities, which counts 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, it creates $25,000 of monthly qualifying income. That figure then has to cover the housing payment and other debts in the test.
Leverage is lower here when cash comes out. On a principal residence or second home, the ceiling is typically 80% on a purchase or rate-and-term refinance and 60% on a cash-out refinance. Cash-out proceeds never count as qualifying assets.
Minimums matter. Qualified assets must be at least the lesser of $1,000,000 or 1.25 times the loan balance. When asset depletion is your only income, you also need at least $250,000 in liquid assets. A first-time investor on this path needs a 700 score, and a housing event such as a foreclosure needs four years of seasoning. Statements must be at least 120 days old at application, plus the most recent one within 45 days. Funds from the sale of a business, an inheritance or a legal settlement are excused from that seasoning.
Divisors differ across programs. The network program described here uses 60 months, and you should not assume the same number elsewhere.
Why Retiring Doesn’t Block a Refinance
Retirement status does not disqualify a consumer refinance, because lenders must judge whether you can repay, not whether you have a job. The federal rule lists eight factors a lender must consider. They include current or reasonably expected income or assets, current employment status, the monthly payment, other debts and credit history, per the CFPB’s ability-to-repay final rule in the Federal Register.
Employment is a factor to weigh, not a box that must be checked. That is why an asset-based refinance on a principal residence or second home can work for someone who stopped earning wages. Each program then adds its own overlays on top, so every file is underwritten individually.
Key Terms Defined
- Asset qualifier path: A method where eligible assets, after credit percentages, must cover the entire loan amount.
- Asset depletion path: A method that divides usable assets by 60 months to create qualifying income.
- Debt-to-income (DTI): Your monthly debts, including the new housing payment, compared with your monthly income.
- Seasoning: The time money has sat in an account before a lender will count it.
- Haircut: The share of an asset’s balance a lender will not count, such as the 30% trimmed from retirement accounts on the depletion path.
- Cash-out refinance: A new, larger loan that pays off the old one and hands you the difference in cash.
- DSCR: Debt service coverage ratio, or a rental’s gross rent divided by its full monthly housing cost.
Step by Step: Refinancing a Montana Home on Assets
Treat the process as a short sequence, and start with your statements, not with a lender.
1. Name the property’s use. A home you live in or a second home follows the consumer asset paths. A rental you do not occupy follows the DSCR route covered below.
2. List every account and its owner. Sort them into cash, securities, retirement and everything else.
3. Apply the percentages. Run the qualifier math first. If usable assets fall short of the loan, run the depletion math.
4. Check seasoning. The qualifier path needs 60 days of seasoning with two statements per account. The depletion path wants statements at least 120 days old, plus a recent one.
5. Pull your credit picture. Check your score against the 600 floor on the qualifier path, and know your housing history.
6. Gather the property documents. Expect an appraisal, a payoff statement, a title review and a homeowners insurance declaration.
7. Share the full picture with a broker. A broker can compare several lenders’ guidelines at once, because overlays on leverage and asset types differ from lender to lender.
Some asset classes never count on either path. Cryptocurrency, precious metals, collectibles, pledged or borrowed funds, and business accounts beyond your ownership share are not published as eligible. The documented route is to convert them into a seasoned cash balance in a regulated account. The lender then reviews the source of those funds.
Montana-specific context is limited. The program figures above do not change by state. A Montana property with acreage, a remote location or unusual construction can add appraisal work, though, so raise it early.
Should You Refinance at All?
Refinance only if the new loan serves a clear goal, because eligibility is not the same as a good idea. A retiree can be fully qualified and still be worse off.
A new loan restarts the payoff clock. If you are close to paying off a mortgage, a fresh long term can delay a debt-free retirement. Compare what the new loan would cost you with what it saves, and set the break-even against how long you plan to stay.
Cash-out carries extra risk on a fixed income. On the asset depletion path, cash-out is capped at 60% on a principal residence or second home. Proceeds never count toward your qualifying assets. Borrowing against a home to fund spending leaves you with a larger debt and no paycheck to carry it.
Agency programs and reverse mortgages are separate products with their own rules. A reverse mortgage pays out against your equity without a monthly payment, which is a different tradeoff from a refinance. This article covers only the asset-based consumer mortgage and DSCR routes.
| Your profile | Best path | Watch out for |
|---|---|---|
| Large cash and brokerage balances, modest loan | Asset qualifier | Seasoning on new deposits |
| Large portfolio, larger loan | Asset depletion | Haircuts and the asset minimums |
| Pension or Social Security plus assets | Depletion, with income supplementing | Staying within the 45% DTI limit |
| Rental you do not live in | DSCR | Rent must cover the full payment |
Timing, Couples and Partial-Year Wages
Timing is simpler on the asset paths than on income-based programs. The qualifier path does not document income, so a final partial year of wages on your tax return does not drag the file down. On the depletion path, wages still on record can only supplement the asset-derived income.
If your assets sit in a retirement account, remember the difference by age. Under 59½, the qualifier path counts 401(k) and IRA balances at 90%. At 59½ or older, they count at 100%. Waiting until that birthday can move the number, though you should weigh that against your reasons for refinancing.
Some retirees take retirement-account distributions before applying so the money shows up as deposits. That is a planning decision, not a loan feature. Tax treatment varies; consult a qualified professional before pulling retirement funds.
If one spouse has retired and the other still earns a paycheck, the household has more options. Lendmire’s piece Can a W-2 Spouse Carry the Mortgage Without Self-Employed Income? explains how that works. Two borrowers can also be qualified together on a file, subject to lender guidelines.
What If the Montana Property Is a Rental?
A rental you do not live in follows a different road. 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.
The CFPB’s commentary treats credit to buy, improve or maintain a non-owner-occupied rental as business-purpose, whatever the number of units. It also has a limit. If you expect to occupy the property for more than 14 days in the coming year, that treatment does not apply.
DSCR qualifies primarily on property-level rental income covering the payment, subject to lender guidelines. The lender divides gross monthly rent by the full housing payment, which includes principal, interest, taxes, insurance and any association dues. Select programs set the floor at 1.00. Programs below 1.00 are available through select lenders in the network, though leverage and terms adjust. Credit, equity and reserves still matter, and your retirement balances may count as reserves instead of income.
Here are the edge cases to watch:
- Owner-occupied or mixed use. If you live there, the loan follows the consumer paths above.
- Cash-out for personal use. Using proceeds for household spending can change a loan’s primary purpose, because the test looks at purpose, not only property type, as a compliance training note on investment properties explains.
- LLC borrowers. Closing in an entity is common on DSCR loans, subject to lender program eligibility.
For the fuller picture of rental financing, see Lendmire’s complete DSCR loans guide. Lendmire’s piece Can a Retiree With No W-2 Income Get a DSCR Loan? goes deeper on that route.
Why Retiree Files Stall, and How to Fix Them
Most stalled files trace back to assets that cannot be counted, not to age. Use this table as a quick diagnostic.
| Symptom | Likely cause | Fix |
|---|---|---|
| Assets fall short of the loan | Haircuts or ineligible accounts | Re-run both paths; move funds to cash |
| Recent large deposit flagged | Not seasoned | Wait out the seasoning period |
| Crypto or metals not counted | Not an eligible asset class | Convert to a seasoned cash balance |
| Score below the floor | Credit under 600 | Fix errors; pay down balances |
| Depletion minimum missed | Under the lesser of $1,000,000 or 1.25x loan | Switch paths or lower the loan |
Frequently Asked Questions
Can a retired homeowner refinance with no job at all?
Yes, through a program built around assets. The asset qualifier path documents no employment or income, and the asset depletion path turns your assets into qualifying income. Both are subject to underwriting, credit review and the property.
Does Social Security count as income?
It can, as documented income on programs that use income. On the asset depletion path, documented income may supplement the asset-derived income up to a 45% debt-to-income ratio. On the qualifier path, no income is documented at all.
How much of my IRA or 401(k) counts?
It depends on the path. On the asset qualifier path, 90% counts under age 59½ and 100% at 59½ or older. On the asset depletion path, retirement accounts count at 70% at any age.
Can I take cash out of my Montana home?
Possibly, with limits. The asset depletion path allows up to 60% on a cash-out refinance of a principal residence or second home, and cash-out proceeds never count as qualifying assets. Whether the qualifier path allows cash-out is set by the lender and is not published.
Do these programs change in Montana?
No. The program figures are the same, and Montana is simply where the property sits. Property type and appraisal details can still affect the file.
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. Asset-based mortgage figures are typical ranges from select programs, are not a commitment to lend, and remain subject to underwriting.
Lendmire’s asset-based mortgage in Montana page presents the program for Montana borrowers.
About Lendmire
Lendmire, NMLS# 2371349, is a mortgage brokerage with consumer lending licenses in 16 states. Bank statement, P&L-only, 1099-only and asset-based mortgages are arranged through wholesale lending partners for borrowers whose tax returns understate their income, and each application is reviewed individually by the lender. Scotsman Guide named Lendmire a Top Mortgage Workplace in both 2025 and 2026.
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References
1. Federal Register, CFPB ability-to-repay and qualified mortgage final rule
2. CFPB, Reg Z § 1026.3 and commentary
3. Compliance Alliance, Regulation Z and Investment Properties
This article is part of Lendmire’s asset-based mortgage program — full qualification details, guidelines, and scenarios live on the program page.
Related reading: Asset Depletion Income Formula and Haircuts · How to Qualify for a Mortgage on Liquid Assets Alone · Can You Get a HELOC With No Income by Qualifying on Assets?
Guides: Asset-Based Mortgage in Montana
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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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.