The Quick Read: Yes, retirement does not block a mortgage: an asset-based loan can qualify you on savings and investments with no traditional personal-income documentation, pay stubs or employment verification, and a rental purchase or refinance can instead run on the property’s rent, so the right path depends on your balances, the property and how you plan to use it. Both routes are fully underwritten, and your statements still get reviewed line by line.
- Assets cover the loan: the asset qualifier path counts eligible balances against the whole loan amount, subject to underwriting.
- Assets become income: the asset depletion path divides usable assets by 60 months to create qualifying income.
- Rents are not the test on either asset path. Rent matters when the loan is a rental loan reviewed on the property’s income.
- Savings stay in play as funds to close and reserves, so plan for cash left after closing.
- Colorado is one of the 16 states where Lendmire’s consumer mortgage lending is licensed. Lendmire is the broker, and select lenders in its network make the credit decisions.
What “Mortgage on Rents and Savings” Actually Means
Two different questions hide inside that phrase. One is whether rent can help you qualify. The other is whether you can borrow against a rental you already own. Retired landlords usually mean both.
Here is the plain version. Rent and savings are tested by different loan types. An asset-based mortgage tests your balances. A rental loan tests the property. Mixing the two in one number is not how most files work.
Lendmire’s asset-based mortgage program is built for the first question: a cash-heavy, income-light borrower. Think retirees, business sellers, inheritance recipients, and households living off a portfolio. Balances are large. Documented income is small. The program has two paths, and a borrower is on one path at a time.
Path One: Assets Cover the Whole Loan
On the asset qualifier path, eligible assets must equal or exceed the entire loan amount. No employment or income is documented. The assets are documented, though, with statements.
Here is how the credit percentages work across the program’s published figures:
- Brokerage accounts, certificates of deposit, money market and savings count at 100%.
- 401(k) and IRA balances count at 90% under age 59½ and 100% at 59½ or older.
- Accounts combine.
Run the arithmetic on an illustrative file. An $800,000 loan is supported by $330,000 in brokerage accounts (100% = $330,000), $300,000 in a 401(k) held by a borrower under 59½ (90% = $270,000), and $200,000 in savings (100% = $200,000). That counts $800,000 of usable assets and is reviewed on assets alone, subject to underwriting. The lender’s own calculation governs.
Leverage on this path goes up to 80% loan-to-value on a purchase and 75% on a refinance, for a principal residence or second home. Loans go up to $4,000,000. The minimum credit score is 600. Reserves are not required at or below 75% loan-to-value. Above that, the lender sets them.
Seasoning is the quiet requirement. Assets need 60 days of seasoning, with two months of statements for each qualifying account. A transfer made last week is a problem. Whether cash-out is allowed on this path, and at what leverage, is set by the lender and is not published.
Path Two: Assets Become Qualifying Income
On the asset depletion path, usable assets are divided by 60 months. The result is monthly qualifying income. That income then carries the housing payment and your other debts through the debt-to-income test.
The haircuts are steeper here:
- Cash accounts and certificates of deposit count at 100%.
- Securities count at 80%.
- Private stock counts at 75%.
- Retirement accounts count at 70% at any age.
- Real-estate equity counts at 60%.
Landlords should notice that last line. Equity in a paid-down rental can count as an asset on this path, at 60%.
Run the shape of a file. $1,500,000 in securities (80% = $1,200,000) plus $300,000 in cash (100% = $300,000) is $1,500,000 usable. Divided by 60 months, that is $25,000 of monthly qualifying income. That figure then has to carry the housing payment and other debts through the debt-to-income test.
Other terms on this path, all subject to underwriting:
- Loan amounts run from $125,000 to $3,500,000.
- Qualified assets must be at least the lesser of $1,000,000 or 1.25 times the loan balance.
- Liquid assets never fall below $250,000 when depletion is your only income source.
- Asset-derived income can supplement documented income up to a 45% debt-to-income ratio. When it supplements, the minimum-assets rule is waived.
- Statements must be at least 120 days old at application, plus the most recent one within 45 days.
- Credit follows the lender’s matrix. A first-time investor needs a 700 score.
This is the only asset path that reaches investment property. Leverage is 65% on a purchase or rate-and-term refinance and 60% on a cash-out refinance for an investment property. On a principal residence or second home, it is 80% on a purchase or rate-and-term refinance and 60% on a cash-out. Cash-out proceeds never count as qualifying assets.
Where Do Your Rents Fit?
Rents do not raise your number on the qualifier path. That path counts balances and documents no income. On the depletion path, asset income can supplement documented income. Whether a lease and its rent count as documented income is the lender’s call, so ask early.
This is the reframe retirees need. Social Security, pension and IRA distributions do not enter a rental-property coverage ratio either. That ratio looks at one thing: does the property’s rent cover its monthly housing obligation? Retirement does not hurt that test. It does not help it, either.
So rents do two jobs in practice. They make a rental loan work when the property carries itself. They also show a healthy portfolio, which supports reserves and your overall file.
Which Path Fits You? (A Plain Decision Table)
| Factor | Asset-Based Path | Rental (DSCR) Loan | Income-Based Loan |
|---|---|---|---|
| What is tested | Your verified assets | The property’s rent vs. payment | Your documented income |
| Best fit | Big balances, small income | Rental that pays for itself | Steady pay or pension |
| Property type | Home, second home, rental on depletion path | Non-owner-occupied rental | Mostly owner-occupied |
| Savings role | Qualify the loan | Down payment and reserves | Down payment and reserves |
| Watch for | Seasoning, haircuts | Rent vs. appraiser’s market rent | Debt-to-income limits |
The rule of thumb across the wholesale network is simple. Strong rent and modest savings point to the rental loan. Thin rent and deep savings point to the asset path. If both are strong, compare the two on leverage and documents.
Rental loans on one-to-four units are reviewed on the property’s income, subject to lender guidelines. The appraiser’s market-rent opinion matters, and the lower of the lease and market rent is the usual practice. On a single-family rental that opinion comes from Form 1007, and on two to four units the Form 1025 report carries it, per the form list in Fannie Mae’s Selling and Servicing Guide forms. A Realvals explainer notes that the 1025 integrates the rent analysis. Fannie Mae’s list is used here only to name the forms.
Three Retiree-Landlord Pictures
Picture a landlord with a paid-off rental and a large brokerage account who wants a mortgage on a home to live in. The asset qualifier path fits. The balances cover the loan, and rents never need to be documented. Leverage tops out at 80% on a purchase for a principal residence.
Say you own several rentals and want to buy a seasonal place. That is a second home. Depletion could fit if your securities and cash are large, and equity in the rentals counts at 60%. Check the minimum-assets rule first. It is the one that trips most files.
Consider a landlord who wants to buy another rental. The asset qualifier path covers principal residences and second homes, so it does not apply. Investment property runs through the depletion path at 65% on a purchase, or through a rental loan if the rent covers the payment. Many files in this spot go the rental route, because strong rent supports it and the savings stay liquid. Select lenders in the network will look at sub-1.00 coverage, though leverage and terms adjust. That is a lender review, not a promise.
Where Retiree Files Stall
Most delays are paper problems, not credit problems. These are the usual ones:
- Recent transfers. Money moved between accounts inside the seasoning window. The qualifier path wants 60 days and two months of statements per account.
- Stale statements. On the depletion path, statements need to be 120 days old plus one within 45 days.
- Ineligible assets. Custodial accounts, deferred compensation, escrow accounts, foreign funds, cash on hand, stock options and non-vested restricted stock units do not count on the depletion path.
- Crypto, metals and collectibles. None is published as eligible on either path. The documented route is converting them to a seasoned cash balance in a regulated account. The lender reviews the source of funds.
- Borrowed funds. Pledged or borrowed money does not count.
- Cash-out proceeds. They never count as qualifying assets on the depletion path.
A business sale, inheritance or legal settlement is an exception to the seasoning requirement.
When the Asset Path Is the Wrong Tool
Be honest about the poor fits.
- Thin balances. A $250,000 liquid floor and a 1.25x-loan test shut out smaller portfolios on the depletion path.
- A shrinking pool. Asset-based loans do not drain your accounts, but your balances are still what lenders reviewed. Plan for what you will spend after closing.
- Loan size. The depletion path starts at $125,000. Smaller loans need another program.
- Rental purchases that cash-flow. If rent covers the payment, the rental loan often keeps more of your savings free.
Selling investments to fund a purchase is the other route. It can trigger taxes and shrink the portfolio. Borrowing against assets keeps them invested. Tax treatment varies; consult a qualified professional.
Occupancy and Use of Funds
A rental loan is a business-purpose investor loan. 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 Federal Register text of the federal ability-to-repay rule says investment-purpose loans are treated as business-purpose loans. State licensing rules can still apply.
Two practical points for retirees. If you plan to use a rental as a seasonal home, say so up front. Occupancy changes which loan lane applies. And if you want cash out for personal living costs, say that too. Use of funds affects program eligibility, so the lender needs the real purpose.
Asset-based mortgages on a home are consumer loans, and TRID disclosures apply to them. Rental loans are business-purpose and exempt from TRID.
Colorado Context
The program figures do not change by state. A Colorado borrower sees the same percentages, seasoning periods and loan limits. What changes is the property: local taxes, insurance and HOA dues all affect the housing payment the file has to carry. Budget for them. They vary by county and by property.
Entity ownership is a separate question. Holding rentals personally or in an LLC changes the loan route, and some programs limit entity borrowers, depending on program guidelines. A landlord with several rentals titled in different ways should sort that out with counsel before applying.
Key Terms Defined
Asset qualifier path: the route where eligible assets, after credit percentages, must cover the entire loan with no income documented.
Asset depletion path: the route where usable assets divided by 60 months become qualifying monthly income for the debt-to-income test.
Seasoning: the length of time funds must sit in an account, shown by statements, before they count.
Debt-to-income ratio: monthly debts, including the new housing payment, compared against monthly qualifying income.
DSCR: the ratio of a rental’s monthly rent to its full monthly housing obligation.
Documents to Gather First
1. Statements for every account you want counted, with the right number of months.
2. A clear source for any large recent deposit.
3. Credit authorization.
4. A property address, plus leases and the insurance quote if the property is tenant-occupied.
5. Entity documents if an LLC will hold title, subject to program terms.
6. Notes on how you plan to use the property and any cash-out funds.
Frequently Asked Questions
Do I have to sell investments or drain my retirement account?
No. On both paths the assets stay where they are and the lender reviews statements. Eligible balances count at the program percentages, and nothing has to be liquidated to qualify. Funds you use for a down payment or closing costs do leave the account, so the balance that counts is the one after those withdrawals.
Does my age matter?
Mainly for retirement accounts on the qualifier path. 401(k) and IRA balances count at 90% under 59½ and at 100% from 59½ on. On the depletion path, retirement accounts count at 70% at any age.
Can I use both my rents and my savings?
A borrower is reviewed on one path at a time. On the depletion path, asset income can supplement documented income up to a 45% debt-to-income ratio. How the lender treats rent as documented income is a file-level question. Rental loans qualify on the property’s rent, with savings serving as funds and reserves.
Can I buy a rental with an asset-based mortgage?
Only through the depletion path, where investment property runs up to 65% on a purchase. The qualifier path covers principal residences and second homes. Many rental purchases fit a rental loan better when the rent covers the payment.
Can I cash out a paid-off rental?
Yes, through select programs. On the depletion path, cash-out on an investment property goes up to 60%, and the proceeds do not count as qualifying assets. A rental loan is another option. Either way, the program reviews how you plan to use the funds.
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. All figures here are program ceilings and floors, subject to underwriting, and are not a commitment to lend.
Lendmire’s asset-based mortgage in Colorado page presents the program for Colorado 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.
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References
1. Fannie Mae – Selling and Servicing Guide Forms
2. Realvals – Real Estate Appraisal Forms
3. Federal Register – Ability-to-Repay and Qualified Mortgage Standards Final 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 Two Colorado Retirees Buy a Home Together on an Asset Qualifier Mortgage? · How to Refinance a Colorado Mortgage After Retiring With No W-2 Income · Can You Get a Mortgage in Virginia With No Income but a Lot of Savings?
Guides: Asset-Based Mortgage in Colorado
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.