The Quick Read: Yes, through select asset-based programs, a retiree can qualify on savings and investments with no traditional personal-income documentation, pay stubs or employment verification, either because eligible assets cover the entire loan or because the assets are converted into a monthly qualifying income, subject to underwriting. The file is still fully underwritten, and the assets are documented with statements.
- Path one, asset qualifier: eligible assets must equal or exceed the whole loan amount, and no income is documented.
- Path two, asset depletion: usable assets divided by 60 months become qualifying income that carries the payment and other debts.
- Statements matter: both paths rely on seasoned account statements, so the file is documented, just not with income paperwork.
- Credit still counts: the program has a published 600 floor on the qualifier path, and the depletion path follows the lender’s matrix.
- Michigan is one of 16 states where Lendmire is licensed for consumer mortgage lending. The program figures do not change by state.
Retirees tend to hit the same wall with big retail lenders. The balance sheet is strong, but there is no paycheck to put on the application. Asset-based mortgage programs exist for exactly that borrower, and Lendmire arranges them as a broker through select lenders in its network. Lendmire does not lend or approve. The lender underwrites each file on its own merits.
Which Path Fits a Retiree?
A retiree whose liquid balances are at least as large as the loan fits the asset qualifier path. A retiree whose balances are large but smaller than the loan fits the asset depletion path, where the assets become income. A borrower is qualified on one path at a time, so the two never blend.
Think of it as a question about the size of the balances relative to the loan.
On the asset qualifier path, the lender counts eligible assets at set percentages. If the counted total equals or exceeds the entire loan amount, the loan is reviewed on assets alone. Nothing about employment or income is documented. Leverage runs up to 80% loan-to-value on a purchase and 75% on a refinance, on a principal residence or second home. Loan amounts go up to $4,000,000, subject to underwriting. Whether cash-out is allowed on this path is set by the lender and is not published, so plan the first file as a purchase or a straight refinance.
On the asset depletion path, the lender takes usable assets after haircuts, divides by 60 months, and treats the result as monthly income. That income then runs through the debt-to-income test along with the housing payment and other debts. Loan amounts run from $125,000 to $3,500,000, subject to underwriting.
Most retirees who live on a portfolio but hold a modest-sized loan land on the qualifier path. Retirees buying a larger home, or financing most of the price, often end up on depletion.
How Do the Assets Get Counted?
The two paths count assets differently, and the tables below are the whole story for each. Mixing them is a common mistake on a first read.
Asset qualifier path (share of balance that counts):
| Asset | Counts at |
|---|---|
| Brokerage accounts | 100% |
| Certificates of deposit | 100% |
| Money market | 100% |
| Savings | 100% |
| 401(k) or IRA, under age 59½ | 90% |
| 401(k) or IRA, age 59½ or older | 100% |
Accounts combine. A retiree can stack brokerage, savings and retirement balances toward the total.
Asset depletion path (share of 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% |
Several asset types 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, collectibles and borrowed or pledged funds are not published as eligible on either path. The documented route is to convert them into a seasoned cash balance in a regulated account. The lender then reviews where the money came from. Do not plan a file around a crypto balance counting at some percentage, because it does not.
What Does the Math Look Like?
The math is simple division and percentages. Here are two illustrative examples, and the lender’s own calculation governs on any real file.
Qualifier example. Take an $800,000 loan. The borrower holds $330,000 in brokerage accounts, which count at 100%, so $330,000. A 401(k) of $300,000, held under age 59½, counts at 90%, so $270,000. Savings of $200,000 count at 100%, so $200,000. Total usable assets are $800,000, which equals the loan, so the file is reviewed on assets alone.
Depletion example. A retiree holds $1,500,000 in securities, which count at 80%, so $1,200,000. Add $300,000 in cash at 100%, so $300,000. That is $1,500,000 in usable assets. Divide by 60 months and you get $25,000 of monthly qualifying income. That income then carries the housing payment and other debts through the debt-to-income test.
One thing surprises people. Retirement accounts count at a lower share on the depletion path (70% at any age) than they do on the qualifier path for borrowers 59½ or older (100%). The same 401(k) can look very different depending on the path, which is one reason to run both before choosing.
What Leverage and Credit Does the Retiree Need?
Leverage on the depletion path depends on how the property is used. On a principal residence or second home, the depletion path allows up to 80% on a purchase or rate-and-term refinance and up to 60% on a cash-out refinance. Cash-out proceeds never count as qualifying assets.
On credit, the qualifier path has a published 600 minimum score. The depletion path follows the lender’s score and loan-amount matrix. A first-time investor on the depletion path needs a 700 score. Housing history is expected to be clean, at 0x30x12. One 30-day late in the last twelve months is considered case by case. Multiple bankruptcies are not eligible, and a housing event needs four years of seasoning on the depletion path.
Minimum assets matter on depletion too. The retiree needs qualified assets of at least the lesser of $1,000,000 or 1.25 times the loan balance. When asset depletion is the only income source, liquid assets can never fall below $250,000. If the retiree also has documented income, such as a pension or Social Security, the asset-derived income can supplement it up to a 45% debt-to-income ratio, and the minimum-assets rule is waived.
Reserves are simple. The qualifier path requires none at or below 75% loan-to-value, and above that the lender sets them. The depletion path has no published reserve months. All of these figures are ceilings and floors, not offers, and every file is subject to underwriting.
What Paperwork Gets a Retiree Through?
The paperwork is statements, and a lot of them. Clean statements prevent most of the delays that derail asset files. The usual stall is a retiree who moved money between accounts a few weeks before applying.
1. Qualifier path statements: two months of statements for each qualifying account, with each account seasoned for at least 60 days.
2. Depletion path statements: 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.
3. Source of large deposits: any recent transfer between accounts or any new deposit needs an explanation that matches the statements.
4. Credit and housing history: a credit report and the mortgage or rent history on the retiree’s current home.
5. Property documents: the appraisal and title work, the same as any mortgage file.
“No income documentation” is not “no documentation.” The assets are documented, the credit is reviewed, and the property is appraised. Anyone who tells a retiree otherwise is selling something that does not exist.
One planning habit helps a lot. Move money before the application, not during the file, and keep it in a regulated account long enough to season. A down payment cannot double as a qualifying asset, because the same dollars cannot be spent and counted at once. Think through the funds needed at closing before counting the balance toward the loan.
What About the Rules Behind This?
For a loan on a home the retiree will live in, federal lending rules require the lender to make a reasonable, good-faith determination that the borrower can repay. Assets can satisfy that test. The CFPB’s Ability-to-Repay rule allows a lender to rely on income or assets other than the value of the property. The regulation text describes the same duty. That is why asset-based programs exist as a legitimate lane.
There is one wrinkle. A law-firm review of the rule notes that a lender may rest its decision on verified assets, but it must still consider debt-to-income or residual income. That fits the depletion path, where derived income runs through the debt-to-income test. The qualifier path rests the repayment review on the assets themselves.
Asset-based mortgages on an owner-occupied home or second home are consumer mortgages, and TRID disclosures apply to them. A loan on a rental or other non-owner-occupied property is business-purpose and is reviewed differently. The lender underwrites the assets the same way either way.
What If the Retiree Wants a Rental?
A retiree buying a rental can use the depletion path, but a rental-focused retiree should compare it with rent-based investor financing before deciding. On the depletion path, an investment property is capped at 65% on a purchase or rate-and-term refinance and 60% on a cash-out, which is lower than the 80% allowed on a primary home.
Lendmire’s asset-based mortgage program page covers the paths in detail. For a true rental, a DSCR loan is often the better fit, because it qualifies primarily on property-level rental income covering the payment, subject to lender guidelines. The retiree’s portfolio then supports the down payment and reserves rather than serving as income. A property that does not cover its payment cannot be rescued by personal wealth under DSCR. The asset-based route is the better fit when rental income is thin or the retiree is borrowing against a home they will occupy.
For a retiree with both goals, the two loans can coexist. One file uses assets to buy the primary or second home. A separate file uses rent coverage to buy the rental. The two paths answer different questions, so the choice follows the property, not the borrower’s age.
Retirees in other states ask the same questions. The program figures are the same, because they do not change by state.
Key Terms Defined
Asset qualifier: a path where eligible assets, after the credit percentages, must equal or exceed the entire loan amount, with no income documented.
Asset depletion: a path that divides usable assets by 60 months to produce a monthly qualifying income.
Haircut: the share of an account balance that is discounted because the asset is less liquid or less certain than cash.
Seasoning: the length of time funds must sit in an account before a lender counts them.
Debt-to-income: the share of monthly income that goes to the housing payment and other debts.
Housing event: a foreclosure, short sale, deed-in-lieu or bankruptcy that affected a prior home loan.
What Goes Wrong on These Files?
Three mistakes account for most problems. The first is counting the wrong asset on the wrong path. A retirement account at 100% is a qualifier-path number for borrowers 59½ or older, and it does not carry over to depletion. The second is unseasoned money. A transfer made two weeks before application breaks the 60-day or 120-day clock. The third is assuming a large balance means approval is automatic. A large balance may help, but credit, housing history and the property still get reviewed, and approval is subject to underwriting.
Tax treatment varies; consult a qualified professional.
Frequently Asked Questions
Does age matter for a retiree applying on assets?
No program here sets an age limit for the borrower. Age shows up in one place: a 401(k) or IRA counts at 90% under age 59½ and 100% at 59½ or older on the qualifier path. On the depletion path, retirement accounts count at 70% at any age.
Do I have to sell my investments to use them?
No. The lender counts balances at the percentages above, but the retiree keeps the accounts in place. The statements prove the assets exist and have been seasoned. Funds needed for the down payment and closing costs still have to come from somewhere, and those dollars cannot also count as qualifying assets.
Can I combine a pension or Social Security with my assets?
Yes, on the depletion path. Asset-derived income may supplement documented income up to a 45% debt-to-income ratio, and the minimum-assets rule is waived when it does. On the qualifier path, no income is documented, so there is nothing to combine.
Does it work if most of my wealth is in real estate or crypto?
Not directly. Real-estate equity counts at 60% on the depletion path, but crypto, precious metals and collectibles 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 lender reviewing the source.
Is this a no-doc loan?
No. Every file is fully underwritten. The retiree provides account statements, credit is reviewed, and the property is appraised. What the retiree skips are traditional personal-income documentation, pay stubs and employment verification.
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. Call 828-256-2183, or request a quote through Lendmire’s quote page. Programs change, and every file is subject to underwriting.
Lendmire’s asset-based mortgage in Michigan page presents the program for Michigan borrowers.
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. CFPB Regulation Z, Section 1026.43
3. CFS Review, CFPB addresses non-QMs under the Ability-to-Repay rule
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 a Michigan Buyer Qualify for a Mortgage on IRA Assets Without Withdrawals? · Can You Get an Asset Qualifier Mortgage With a Co-Signer? · Can a Florida Retiree Get a Mortgage on Savings and Investments Alone?
Guides: Asset-Based Mortgage in Michigan
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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- Lendmire LLC · Firm NMLS# 2371349 · Verify firm licensure
Compliance and disclosures. Lendmire (NMLS# 2371349) is a licensed mortgage broker and is not a direct lender, depository institution, financial advisor, or tax professional. Content in this article is general market analysis and educational information — not financial, legal, or tax advice for any specific situation. Lendmire does not guarantee loan approval; every transaction is subject to underwriting by the funding lender. Mortgage pricing and loan program guidelines are subject to change at any time without notice and vary by borrower characteristics, property type, and state regulations. Lendmire complies with Equal Housing Opportunity. Licensure verification: NMLS Consumer Access.