The Quick Read: Yes, in many cases: a Washington homeowner can refinance when paychecks stop, because select programs qualify the loan on documented assets rather than employment, either by letting eligible balances cover the entire loan outright or by converting those balances into monthly qualifying income, though every file is fully underwritten and subject to lender guidelines.
- The asset qualifier path needs eligible assets that equal or exceed the whole loan. No employment or income is documented.
- The asset depletion path divides usable assets by 60 months to create qualifying income, which then runs through a debt-to-income test.
- A borrower is qualified on one path at a time. The two never blend.
- This is not a no-documentation loan. Assets are verified with statements. What drops out is traditional personal-income documentation, pay stubs and employment verification.
- Washington is one of the 16 states where Lendmire’s consumer mortgage lending is licensed. The program figures are the same here as anywhere else.
Which Path Fits a Washington Homeowner With Savings but No Paycheck?
The path depends on how your assets compare to the loan. If eligible assets cover the whole balance, the asset qualifier path is the cleaner fit. If assets are large but fall short of the loan, asset depletion turns them into income. Lendmire arranges both through select lenders in its wholesale network, and each file is underwritten individually.
| Factor | Asset qualifier | Asset depletion |
|---|---|---|
| How you qualify | Assets cover the entire loan | Assets become monthly income |
| Income documented | None | Derived from assets |
| Debt-to-income test | Not run on income | Yes, on derived income |
| Loan range | Up to $4,000,000 | $125,000 to $3,500,000 |
| Best fit | Cash-rich, loan modest | Large portfolio, loan larger |
Here is the decision rule most programs follow. Add up your eligible balances after the credit percentages. If the total equals or exceeds the loan, start with the qualifier path. If it doesn’t, check whether depletion income can carry the payment and your other debts.
Leverage differs too. On the qualifier path, the ceiling is 75% loan-to-value on a refinance of a principal residence or second home. Whether cash-out proceeds are allowed on that path is set by the individual lender and isn’t published, so treat any cash-out plan there as unconfirmed.
On the depletion path, a principal residence or second home can go up to 80% on a rate-and-term refinance and 60% on a cash-out refinance. An investment property tops out at 65% on a rate-and-term refinance and 60% on a cash-out. Cash-out proceeds never count as qualifying assets. These are ceilings, subject to underwriting, not offers.
Key Terms Defined
Asset qualifier: A path where eligible assets, after credit percentages, must equal or exceed the entire loan amount.
Asset depletion: A path where usable assets divided by 60 months become monthly qualifying income.
Debt-to-income (DTI): The share of monthly income that goes to housing and other debts.
Seasoning: How long funds have sat in your accounts before the lender will count them.
Rate-and-term refinance: A refinance that changes the loan’s terms without pulling out extra cash.
Cash-out refinance: A refinance that takes out a larger loan and pays you the difference.
What Do the Numbers Look Like in Practice?
Two illustrations show the mechanics. They are illustrative only, and the lender’s own calculation governs.
Qualifier path. Picture a borrower seeking an $800,000 loan. She holds $330,000 in brokerage accounts, $300,000 in a 401(k) and $200,000 in savings. She is under age 59½.
- Brokerage counts at 100%, or $330,000.
- The 401(k) counts at 90% under 59½, or $270,000.
- Savings counts at 100%, or $200,000.
Usable assets total $800,000, which matches the loan. She is reviewed on assets alone, subject to underwriting. After 59½, that same 401(k) would count at 100%.
Depletion path. Now take a retiree with $1,500,000 in securities and $300,000 in cash.
- Securities count at 80%, or $1,200,000.
- Cash counts at 100%, or $300,000.
Usable assets are $1,500,000. Divided by 60 months, that is $25,000 of monthly qualifying income. That figure must carry the full housing payment and other debts through the debt-to-income test. Passing that test is the real question, not the size of the balance.
Note that the same 401(k) shows up at different percentages on the two paths. On the qualifier path it is 90% under 59½ and 100% after. On the depletion path it is 70% at any age. Always name the path before you quote a number.
What Counts as an Asset, and What Doesn’t?
Cash, CDs and brokerage accounts count most fully. Retirement accounts count, but at a discount. Cryptocurrency, precious metals, collectibles and borrowed funds are not published as eligible on either path.
| Asset | Qualifier path | Depletion path |
|---|---|---|
| Savings, money market | 100% | 100% (cash accounts) |
| Certificates of deposit | 100% | 100% |
| Brokerage accounts | 100% | 80% (securities) |
| Private stock | Not listed | 75% |
| 401(k) and IRA | 90% under 59½; 100% after | 70% at any age |
| Real-estate equity | Not listed | 60% |
Not eligible on the depletion path: 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.
Say you hold a large crypto balance. It is not published as counting at any percentage. The documented route is converting it to cash in a regulated account and letting that balance season, with the lender reviewing the source. Pledged or borrowed funds don’t count either. Equity alone, by itself, is not income.
What Paperwork and Seasoning Will Lenders Want?
Both paths require statements, so expect a stack of them. The paperwork shifts from income to assets.
- 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 a recent statement within 45 days. Funds from the sale of a business, an inheritance or a legal settlement are excused from that seasoning.
- Credit: a 600 minimum score on the qualifier path. The depletion path follows the lender’s matrix of score and loan amount. A first-time investor on the depletion path needs 700.
- Housing history: 0x30x12 is the standard. One 30-day late in the last twelve months is considered case by case. Multiple bankruptcies are not eligible, and a housing event needs 4 years of seasoning on the depletion path.
Large unexplained deposits slow files down. Underwriters want to know where money came from. If you recently moved funds between accounts, keep a clear paper trail. A deposit from a house sale or a settlement is easier to document than a pile of cash moving around.
When Does the Timing of Your Income Matter?
Timing matters less than most borrowers fear, but it does shape your paper trail. Asset-based files look at balances and history, not paystubs. Where you are on the income timeline mainly affects which statements you can produce.
Before the paycheck ends. You have the most flexibility. Nothing about your balances is changing, and the application can still show recent income if you want a supplemental path. On depletion, derived income may supplement documented income up to a 45% debt-to-income ratio. When it does, the minimum-assets rule is waived.
Right after income stops. Statement dates are the main issue. If you sold a business or took a severance payout, those funds may need to season. The depletion path excuses seasoning for business-sale, inheritance and settlement funds. The qualifier path asks for 60 days.
Months later. The profile looks cleaner, since balances have sat. Borrowers whose only income source is their portfolio on the depletion path need qualified assets of at least the lesser of $1,000,000 or 1.25 times the loan balance. They also need no less than $250,000 liquid. Lenders in the network read this minimum strictly.
Is Washington Different?
Not for the program figures. The leverage ceilings, asset percentages and seasoning rules above are the same in Washington as in the other 15 licensed states. What changes by state is context: local home prices, taxes, insurance and property types. Those shape how large your loan is, not whether the program’s rules apply.
That honesty matters. A Washington borrower shouldn’t expect a state-specific loophole, and shouldn’t assume one exists. The practical question is whether your assets and credit fit one of the two paths.
Does It Matter If the Home Is a Residence, Second Home or Rental?
Yes, the property’s use changes both the program and the leverage. A principal residence or second home is a consumer loan. An investment property is available only on the depletion path, where the loan is business-purpose, and it carries lower leverage: 65% on a purchase or rate-and-term refinance and 60% on a cash-out.
Lenders must make a reasonable, good-faith determination that you can repay a consumer mortgage. The CFPB’s ability-to-repay compliance guide lists current or reasonably expected income or assets among the factors that can support that decision. That is why assets can carry a file when a paycheck can’t. A law-firm review of how the CFPB treats non-QM loans adds that a lender may rely on verified assets, but must still consider debt-to-income or residual income.
Business-purpose investor loans are reviewed differently from a standard owner-occupied mortgage. Calling a property an investment doesn’t settle it, though. The OCC’s examiner handbook lists factors for judging business versus consumer purpose, and a cash-out on a rental used for personal spending can be treated as consumer purpose. If you plan to pull cash out, be straight about how it will be used.
What Other Income Still Counts?
Documented income you still receive can be combined with asset income on the depletion path. Pensions, Social Security and regular distributions are common examples. Asset-derived income may supplement documented income up to a 45% debt-to-income ratio. Because the minimum-assets rule is waived when assets supplement rather than replace income, a smaller portfolio can sometimes work.
That is the practical edge case for early retirees. If you draw some income but not enough, a blended file can fit where a pure-assets file would fall short. Underwriting still reviews everything, and nothing here is a promise of approval.
When Is This the Wrong Move?
Asset-based refinancing is a good fit for cash-heavy, income-light households. It is the wrong tool for several other situations.
| Your situation | Likely better path |
|---|---|
| Rental with solid rent | Rental-property financing based on the property’s income |
| Behind on payments | Talk to your servicer about a modification |
| Assets too small for either path | Sell, downsize or rent |
| Need small, flexible access to cash | A home equity line, under that program’s own rules |
| Documented income plus modest assets | A bank statement or full-documentation loan |
A rate-and-term refinance on this program should have a clear purpose, such as removing a co-borrower or changing a loan structure. Refinancing just because you can is rarely a strong reason when income has stopped. Pulling cash out reduces equity, and cash-out terms may differ from those for other refinance types.
Retirement withdrawals can carry tax consequences. Tax treatment varies, so consult a qualified professional before relying on any plan.
One more practical point. Lendmire arranges financing as a broker, which means it can compare how several lenders in its network treat the same assets. Some lenders apply the credit percentages above differently on edge cases, and a strict overlay on one file may not appear on another. That comparison is the broker’s job, and it is easier to do before an application is filed.
What Should You Do This Week?
1. List every account and balance. Note the account type, since that decides the credit percentage.
2. Pull recent statements. Check dates against the 60-day and 120-day seasoning rules above.
3. Flag unusual deposits. Gather a paper trail for each.
4. Check your credit. The qualifier path wants a 600 minimum, and the depletion path follows the lender’s matrix.
5. Decide the loan’s purpose. Rate-and-term, cash-out and investment use all carry different ceilings.
6. Hold off on moving money. Selling holdings or shifting accounts can reset seasoning.
7. Compare programs. Review the asset-based mortgage programs before you choose a path.
Frequently Asked Questions
Do I need to be retired to qualify?
No. Age isn’t a disqualifier, and neither is retirement status. The programs look at assets, credit and the property. Retirees, business sellers, inheritance recipients and early-retired professionals all fit the profile, subject to underwriting.
Does my 401(k) count if I haven’t started withdrawals?
Yes, at a discount. On the qualifier path it counts at 90% under age 59½ and at 100% from 59½ on. On the depletion path it counts at 70% at any age. You don’t have to take a distribution for the balance to be considered, though the lender reviews statements.
Can I take cash out on an asset-based refinance?
On the depletion path, yes, at up to 60% on a principal residence, second home or investment property. On the qualifier path, cash-out terms are set by the lender and aren’t published.
Do I have to sell my investments?
No. Eligible balances count toward qualifying while they stay invested, though the lender reviews statements for account type and history. Selling is a choice, not a requirement, and converting assets like crypto to cash is only needed when they aren’t otherwise eligible.
Is this the same as a no-documentation loan?
No. Every file is fully underwritten. You document assets with statements, and you skip traditional personal-income documentation, pay stubs and employment verification.
A Practical 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 to start. Program availability, leverage and terms are subject to underwriting and lender guidelines. This is not a commitment to lend. The strongest files usually begin with a clean list of balances and a clear purpose for the loan.
Lendmire’s asset-based mortgage in Washington page presents the program for Washington borrowers.
About Lendmire
As a mortgage broker (NMLS# 2371349), Lendmire helps self-employed and high-net-worth borrowers in 16 states qualify on bank statements, a profit-and-loss statement, 1099s or liquid assets instead of tax returns, through wholesale lenders. Lendmire is never the lender; program terms are set by the lender and its 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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References
1. CFPB ability-to-repay and qualified mortgage compliance guide
2. CFS Review: CFPB addresses non-QMs under the ability-to-repay rule
3. OCC Comptroller’s Handbook: Truth in Lending Act
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 Much Does a Michigan Retiree Need in Assets to Buy a Home Without Income? · How Much Does a California Retiree Need in Assets to Buy a Home Without Income? · Can You Refinance a Michigan Home on Assets When Your Income Stops?
Guides: Asset-Based Mortgage in Washington
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
- Mortgage Loan Originator · NMLS# 1129696 · Verify on NMLS Consumer Access
- North Carolina Real Estate Broker · License# 343312 · Verify on NCREC
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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.