The Quick Read: Yes, a Pennsylvania retiree can often qualify for a mortgage on savings and investments alone, because select programs in Lendmire’s wholesale network either count eligible assets against the whole loan or turn them into monthly qualifying income, with no traditional personal-income documentation, pay stubs or employment verification, though credit, statements, the property and underwriting still apply. Which path fits depends on how large your balances are compared with the loan. Every figure below is a program ceiling or floor, subject to underwriting, not an offer.
- Path one (asset qualifier): eligible assets, after credit percentages, must equal or exceed the entire loan. No income is documented.
- Path two (asset depletion): usable assets are divided by 60 months to create qualifying income that must carry the payment and your other debts.
- Statements are required. Your assets are documented. Only the paycheck paperwork goes away.
- Credit still counts. The qualifier path has a 600 minimum score. The depletion path follows the lender’s matrix.
- Pennsylvania changes nothing in the program figures. State taxes and local prices shape your budget, not the guidelines.
Pennsylvania is one of the 16 states where Lendmire’s consumer mortgage lending is licensed. Lendmire is a broker. It places these files with select lenders, and those lenders review and approve them.
Why a Retiree With Real Money Often Looks “Unqualified” on Paper
Conventional underwriting asks what you earned on your traditional personal-income documentation. Retirees often have large balances and small taxable income. You may live off a brokerage account, draw from savings, or let an IRA sit. The standard income test sees little income and stops there.
Asset-based programs read the same file differently. They ask whether your documented assets can carry the loan. For a retiree, that is often the more honest question.
It is also not a loophole. The loan is fully underwritten. Credit is pulled. The property is appraised. The only thing that changes is which part of your financial life does the proving.
Two Ways Assets Can Carry a Mortgage
The two paths are different tools. A borrower is qualified on one path at a time, never a blend of both. Across the network, the asset-based mortgage programs Lendmire places files with split like this:
| Factor | Asset qualifier path | Asset depletion path |
|---|---|---|
| How assets are used | Must cover the entire loan | Divided by 60 months into income |
| Income documented | None | Derived from assets |
| Purchase leverage | Up to 80% LTV | Up to 80% on a primary or second home |
| Refinance leverage | Up to 75% LTV | 80% rate-and-term, 60% cash-out |
| Loan amounts | Up to $4,000,000 | $125,000 to $3,500,000 |
| Credit | 600 minimum score | The lender’s matrix |
| Best fit | Balances at least equal to the loan | Large balances, loan well below them |
LTV means loan-to-value, the loan as a share of the property’s value. The qualifier-path leverage applies to a principal residence or second home. The depletion-path figures in the table apply to a principal residence or second home as well. Investment property has its own, lower limits, covered later.
Whether cash-out proceeds are allowed on the qualifier path is set by the individual lender and is not published, so no figure is stated here. On the depletion path, cash-out proceeds never count as qualifying assets.
Asset qualifier path: the assets are the loan
Think of it as proving the money exists. If your eligible assets equal or exceed the whole loan amount, you qualify on assets alone. No employment or income is documented.
Reserves are simple on this path. None are required at or below 75% LTV. Above that, the lender sets them. Leverage, reserves, and pricing vary by lender and program; the final terms follow the full file review.
Asset depletion path: the assets become a paycheck
Here the lender converts your usable assets into a monthly income figure. It divides them by 60 months. That income then has to carry the housing payment and your other debts through a debt-to-income test, meaning your monthly debts as a share of your income.
This path has minimums. 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 source of income, you also need at least $250,000 in liquid assets.
Assets can also supplement income you can document, such as a pension or Social Security. In that case, asset-derived income can lift you up to a 45% debt-to-income ratio, and the minimum-assets rule is waived.
Which Assets Count, and for How Much
Not every dollar counts at full value. Lenders apply a credit percentage, sometimes called a haircut, because a retirement account or stock portfolio can lose value or carry withdrawal costs. The two paths use different tables, so read them separately.
Asset qualifier path: share of the balance that counts.
| Asset | Counts at |
|---|---|
| Brokerage accounts | 100% |
| Certificates of deposit | 100% |
| Money market | 100% |
| Savings | 100% |
| 401(k) and IRA, under age 59½ | 90% |
| 401(k) and IRA, at 59½ or older | 100% |
Accounts combine. You do not need one account that covers the loan.
Asset depletion path: share of the balance that counts.
| Asset | Counts at |
|---|---|
| Cash accounts | 100% |
| Certificates of deposit | 100% |
| Securities | 80% |
| Private stock | 75% |
| Retirement accounts, any age | 70% |
| Real-estate equity | 60% |
Some assets do not count on the depletion path at all: custodial accounts, deferred compensation, escrow accounts, foreign funds, cash on hand, stock options, non-vested restricted stock units, and funds from non-regulated financial companies.
Cryptocurrency, precious metals and collectibles are not published as eligible on either path. Neither are pledged or borrowed funds. The documented route is converting them to a seasoned cash balance in a regulated account, with the lender reviewing the source. Do not assume any percentage for them.
Seasoning and Statements: What You Will Actually Hand Over
Seasoning is the length of time money has sat in your account. Lenders use it to confirm the funds are really yours and not a recent loan.
- 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. Funds from the sale of a business, an inheritance or a legal settlement are excused from that seasoning.
That is the practical meaning of qualifying on assets. You trade pay stubs and traditional personal-income documentation for account statements. Retirees with orderly records usually find this easier than a conventional file. Retirees who moved money between accounts last month may find it slower to document, since the transfers need explaining.
Two Worked Examples
The arithmetic below is illustrative. The lender’s own calculation governs.
Qualifier path. Say you want an $800,000 loan. You hold $330,000 in brokerage accounts, which count at 100%, so $330,000 counts. You hold $300,000 in a 401(k) and you are under 59½, so it counts at 90%, which is $270,000. You hold $200,000 in savings, counted at 100%, which is $200,000.
Add those and you get $800,000 of usable assets. That equals the loan, so the file is reviewed on assets alone, subject to underwriting. If you were past 59½, the 401(k) would count in full, and you would have more cushion.
Depletion path. Consider a retiree with $1,500,000 in securities and $300,000 in cash. Securities count at 80%, which is $1,200,000. Cash counts at 100%, which is $300,000. Usable assets total $1,500,000.
Divide by 60 months and you get $25,000 of monthly qualifying income. That income then has to carry the housing payment and other debts through the debt-to-income test. A retiree who also documents a pension or Social Security has the option to supplement instead. The lender sees both and runs the numbers.
Notice what the two examples teach. The qualifier path needs big balances relative to the loan. The depletion path can work with a smaller loan against the same balances, because the question becomes monthly cash flow rather than total coverage.
“Alone” Does Not Mean Without Requirements
This is where retirees get surprised. Qualifying without income is not qualifying without conditions. Across the network, expect all of these:
- Credit review. A minimum score of 600 on the qualifier path. On the depletion path, the lender’s score and loan-amount matrix applies. A first-time investor on the depletion path needs 700.
- Housing history. Zero late payments in the last twelve months is the standard. One 30-day late in that window is considered case by case.
- Credit events. Multiple bankruptcies are not eligible. A housing event such as a foreclosure needs 4 years of seasoning on the depletion path.
- An appraisal and a property review. The lender still needs the home to support the loan.
- Debts. On the depletion path, your other monthly debts run through the debt-to-income test with the income created from assets.
- Down payment. Leverage caps mean you bring cash to closing. That cash must itself be documented.
The reason this is allowed at all is straightforward. Federal ability-to-repay rules list income or assets as acceptable ways to show you can repay, and the assets must exclude the value of the home being financed. The CFPB’s ability-to-repay compliance guide also names bank and investment account statements as reliable evidence of assets. A legal review of the rule, CFS Review, notes that a lender may rely on income, assets, or both, and need only verify what it actually relies on.
A later Alston & Bird summary of the revised qualified mortgage rules says the creditor must consider income or assets other than the dwelling and keep documentation. In plain terms, assets-only is a recognized way to qualify. These loans simply sit outside the standard qualified-mortgage box, which is why they are called non-QM and underwritten to the lender’s own documented policy.
The loan is a consumer mortgage when you buy a home you will live in or use as a second home, and TRID disclosures apply.
Borrowing vs. Selling vs. Paying Cash
Many retirees ask a fair question: if I have the money, why borrow? The answer is liquidity and choice, not a rule that you must borrow.
Paying cash ties up a large share of your net worth in one house. Selling investments to fund a purchase means leaving the market and possibly realizing gains. An asset-based loan lets your portfolio stay invested while the statements prove you can carry the loan.
It does not force you to liquidate. The program counts the balance. You do not spend it to qualify. The tradeoff is that you carry a loan, and you owe the payment every month for as long as you hold it, whatever markets do.
Tax treatment varies; consult a qualified professional before choosing between selling and borrowing.
Honestly, this is a genuine toss-up for some households. If the purchase is a modest share of your portfolio and you value simplicity, cash may be the calmer choice. If it would drain your liquidity or force sales at a bad time, borrowing against documented assets is usually the stronger play.
What If the Loan Is for a Rental Property?
Different property, different logic. A loan on a rental or other non-owner-occupied property is a business-purpose loan, so it is reviewed differently from a standard owner-occupied mortgage. Asset-based programs can still apply, but on the depletion path only, and with lower leverage.
On the depletion path, investment property is limited to 65% LTV on a purchase or rate-and-term refinance and 60% on a cash-out refinance. Compare that with the 80% purchase and rate-and-term limit for a primary residence or second home, and the 60% cash-out limit there. The haircuts and the 60-month divisor stay the same. Terms vary by lender guidelines, property type, leverage, credit profile, and full file review.
Many retirees buying a pure rental use a DSCR loan instead. DSCR stands for debt service coverage ratio. That loan is reviewed primarily on property-level rental income covering the payment, subject to lender guidelines, so your personal income barely matters. Your savings still do real work as down payment, closing costs and reserves.
The two are not interchangeable. Asset-based qualification is built for people living on a portfolio. A DSCR loan is built for properties that cash-flow. If you want to live in the property, DSCR is not the tool. If you want a rental that pays for itself, the asset route may leave leverage on the table.
Is This Right for You?
Asset-based qualification tends to fit when:
- Your balances are large and your taxable income is small.
- You have sold a business, received an inheritance or a settlement, or retired early.
- You live on a portfolio rather than a pension.
- You want to keep your investments in place instead of selling them.
Another route may serve you better when:
- Your Social Security, pension and annuity income already carries the payment under conventional rules. Agency programs, Fannie Mae and Freddie Mac among them, have their own rules for that, and they are not this program’s rules.
- Most of your wealth sits in assets that are not eligible, such as crypto, collectibles or foreign accounts, and you do not want to convert them.
- Your balances fall below the depletion minimums.
- You document income through deposits, in which case a bank statement program may be the better match.
The same question comes up in neighboring states. The program figures do not change by state.
How to Apply, Step by Step
1. List every account and its owner. Note which are retirement, which are brokerage, and which are cash. Joint accounts need clear ownership.
2. Pull the statements. You need two months for each qualifying account on the qualifier path. On the depletion path, gather statements at least 120 days old plus one within 45 days.
3. Check your credit first. A 600 score is the qualifier floor.
4. Decide the path. Compare your usable assets with the loan you want. If they cover it, the qualifier path is the cleaner fit. If not, run the depletion math.
5. Know what counts. Move anything ineligible into a regulated cash account early, so it has time to season.
6. Ask your broker three questions. Which lenders in the network fit my assets? What does each count at? What does each want for reserves?
That last step is where a broker earns the fee. Lenders differ on overlays, so the same file can look strong at one and weak at another.
Key Terms Defined
Asset qualifier: a path where eligible assets, after credit percentages, must equal or exceed the entire loan, with no income documented.
Asset depletion: a path where usable assets divided by 60 months create monthly qualifying income.
Haircut: the share of an asset’s balance a lender will not count because of its risk or access limits.
Seasoning: how long money has been in your account before the lender will count it.
Debt-to-income ratio: your monthly debts as a percentage of your monthly income, used on the depletion path.
Non-QM: a mortgage that sits outside the standard qualified-mortgage box and is underwritten to the lender’s own documented policy.
Frequently Asked Questions
Does being retired hurt my chances?
No. Age is not the test. The lender looks at your documented assets, credit and the property. On the qualifier path, 401(k) and IRA balances count at 100% once you reach 59½, which can help older borrowers.
Do I have to sell investments or empty my IRA to qualify?
No. The program counts your balances. It does not require you to spend them. You still need your down payment and closing funds documented, and those come from somewhere, so plan which account supplies them.
Can I use my 401(k) or IRA?
Yes. On the qualifier path, retirement balances count at 90% under age 59½ and 100% at 59½ or older. On the depletion path, they count at 70% at any age. Subject to underwriting, they combine with your other accounts.
Is this a no-documentation loan?
No. Every file is fully underwritten. Your assets are documented with account statements, your credit is reviewed, and the property is appraised. What you skip is traditional income documentation, pay stubs and employment verification.
Can a spouse’s or joint account count?
Often, when ownership is clear and the borrower has access to the funds, but the lender decides. Joint accounts are one reason to share statements with a broker before you apply.
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 programs based on your statements, the property, credit profile, leverage, and your goals. Program availability and terms are subject to underwriting and change without notice. This is not a commitment to lend.
Lendmire’s asset-based mortgage in Pennsylvania page presents the program for Pennsylvania borrowers.
About Lendmire
Lendmire (NMLS# 2371349) is a mortgage broker licensed for consumer lending in 16 states. Bank statement, P&L-only, 1099-only and asset-based mortgages for self-employed and high-net-worth borrowers are arranged through wholesale lenders on primary residences, second homes and investment properties; every file is underwritten by the lender under its program guidelines. 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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Informational only. Not a Loan Estimate, approval, or commitment to lend. Program availability and eligibility are subject to lender guidelines, credit approval, property review, and underwriting.
References
1. CFPB ATR/QM Compliance Guide
2. CFS Review, CFPB addresses non-QMs under the ability-to-repay rule
3. Alston & Bird, revised 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: How to Refinance a Mortgage After Retiring With No W-2 Income · How to Buy Before You Sell in Pennsylvania Using an Asset Qualifier Mortgage · How to Finance a Pennsylvania Vacation Home With an Asset Qualifier Mortgage
Guides: Asset-Based Mortgage in Pennsylvania
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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- Lendmire LLC · Firm NMLS# 2371349 · Verify firm licensure
Legal disclosures. Lendmire (NMLS# 2371349) is a state-licensed mortgage brokerage that arranges financing through wholesale lender relationships. Lendmire is not a direct lender, depository institution, or registered financial advisor. The discussion above is general informational content about real estate financing — it is not financial, legal, or tax advice, and readers should consult licensed professionals for guidance on their individual circumstances. Loan inquiries are subject to lender underwriting; this article does not represent a commitment to lend. Loan terms, rates, and qualification standards vary by borrower, property, and state, and are subject to change at any time. Equal Housing Opportunity. NMLS Consumer Access: nmlsconsumeraccess.org.