The Quick Read: Yes, usually, as long as you qualify through your remaining assets and not through pay stubs: through select asset-based programs, a lender can either count your seasoned account balances against the whole loan or convert them into monthly qualifying income, with no traditional personal-income documentation, pay stubs or employment verification, subject to underwriting. Every file is fully underwritten, and your statements are the proof. The cash you spent is gone from your balance sheet, so what is left in your accounts decides the outcome.
- Path one, assets cover the loan: eligible assets, after the credit percentages, must equal or exceed the entire loan. Leverage runs up to 80% on a purchase and 75% on a refinance of a principal residence or second home.
- Path two, assets become income: usable assets divided by 60 months become qualifying income that runs through a debt-to-income test.
- Seasoning matters: the qualifier path wants 60 days of seasoning and two months of statements per account.
- Cash-out is limited: on the depletion path, cash-out tops out at 60% on a principal residence, second home or investment property.
- Talk first: call a broker before you close on the cash purchase, not after.
Why Paying Cash Does Not Close the Door
Most people assume a lender needs a paycheck. That is true for many mortgages, and it is not true for every mortgage.
Some programs ask a different question. They ask whether your documented assets can carry the loan. Retirees, people who sold a business, heirs, and households living off a portfolio often fit this profile. Their balances are large and their documented income is small.
Paying cash for a house changes the math in one way. It moves money out of your accounts and into the property. A lender looks at what remains after that purchase. So the real question is not whether you paid cash. It is whether the assets you still hold can qualify for the loan you want.
One more point matters here. The programs below work the same way for a Michigan borrower as for anyone else. Lendmire’s consumer lending is licensed in 16 states, and Michigan is one of them. Nothing in the program figures changes at the state line. Local taxes, insurance and title practices are context for your budget, not program parameters.
Which Path Fits You?
Think of two doors. You walk through one at a time, never both.
The asset qualifier path treats your balances as the loan’s backing. If your eligible assets equal or exceed the whole loan amount, you qualify on assets alone. The lender does not document employment or income. It does document the assets.
The asset depletion path turns your balances into income. The lender takes usable assets and divides them by 60 months. That monthly figure must carry the housing payment and your other debts through the debt-to-income test.
| Factor | Asset qualifier path | Asset depletion path |
|---|---|---|
| How you qualify | Assets cover the whole loan | Assets become monthly income |
| Purchase leverage | Up to 80% | Up to 80% (primary or second home) |
| Refinance leverage | Up to 75% | 80% rate-and-term; 60% cash-out |
| Loan amounts | Up to $4,000,000 | $125,000 to $3,500,000 |
| Credit | 600 minimum score | Lender’s matrix |
| Seasoning | 60 days; two months of statements | Statements 120 days old plus one within 45 days |
All figures are ceilings and floors through select programs, subject to underwriting. They are never offers. 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.
Across the lenders we place files with, these two paths are the core of what the market offers to asset-rich, income-light borrowers. The strongest leverage on a file usually comes from the path that fits the borrower’s balance sheet, not from forcing a fit.
Path One: Assets Cover the Whole Loan
This path suits you if your remaining balances are large compared with the loan you want. It documents no employment or income. Underwriting still reviews credit, the property and your accounts.
Here is how much of each balance counts on this path:
- Brokerage accounts, certificates of deposit, money market and savings count at 100%.
- A 401(k) or IRA counts at 90% if you are under 59½, and 100% at 59½ or older.
- Accounts combine, so you can stack them.
Say you want an $800,000 loan. Suppose you hold $330,000 in brokerage accounts, which count at 100%. You also hold $300,000 in a 401(k) while under 59½, which counts at 90%, or $270,000. And you hold $200,000 in savings at 100%. That adds up to $800,000 of usable assets, which equals the loan, so you would qualify on assets alone. This arithmetic is illustrative, and the lender’s own calculation governs.
Reserves are not required on this path at or below 75% loan-to-value. Above that, the lender sets them. The credit floor is a 600 score, and a housing history of 0x30x12 is the target. One 30-day late payment in the past twelve months is considered case by case. Multiple bankruptcies are not eligible.
The loan amount can reach $4,000,000. Whether cash-out proceeds are allowed on this path is set by the lender and is not published. So do not plan around pulling cash out through the qualifier path.
Path Two: Assets Become Income
This path fits you if you want more flexibility on the property type, or if the loan is large compared with your liquid balances. It also fits you if you have some documented income and want assets to supplement it.
The haircuts are steeper here:
- 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.
- Real-estate equity counts at 60%.
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 are not eligible.
Take $1,500,000 in securities. At 80%, that is $1,200,000 usable. Add $300,000 in cash at 100%. You now have $1,500,000 usable. Divide by 60 months and you get $25,000 of monthly qualifying income. That figure then has to carry the housing payment and your other debts through the debt-to-income test. Again, this is an illustration and the lender’s own calculation governs.
Minimums apply. Qualified assets must be at least the lesser of $1,000,000 or 1.25 times the loan balance. They must never fall below $250,000 liquid if asset depletion is your only income. If asset income only supplements documented income, it can run up to a 45% debt-to-income ratio, and the minimum-assets rule is waived.
Credit follows the lender’s score and loan-amount matrix. A first-time investor on this path needs a 700 score. A housing event needs four years of seasoning.
What Counts, and What Does Not
If your wealth sits in crypto, precious metals or collectibles, the answer is plain. These are not published as eligible on either path. Neither are pledged or borrowed funds, or business accounts beyond your ownership share.
The documented route is conversion. You move the value into a seasoned cash balance in a regulated account. The lender then reviews the source. Plan that step early, because seasoning takes time.
Can You Pull Cash Back Out Right After Buying?
Many cash buyers want their money back. The practice has a name: delayed financing means refinancing soon after an all-cash purchase, which can skip the usual waiting period before a cash-out loan.
Lenders handle it in different ways. The conventional world has a written version. Fannie Mae’s Selling Guide section on cash-out refinance transactions includes a delayed-financing exception. It sits inside a debt-to-income system that documents wage income. That is a different system from the asset programs described here.
For the asset programs, four things are worth knowing.
First, the amount you can borrow is usually tied to your documented cost, meaning purchase price plus closing costs. That can sit below the appraised value. A buyer who got a bargain or did a rehab may not recover every dollar invested.
Second, cash-out proceeds never count as qualifying assets on the depletion path. You cannot pull money out and then use it to qualify.
Third, the depletion path caps cash-out at 60% on a principal residence, second home or investment property. The qualifier path publishes no cash-out figure. Terms depend on the lender’s guidelines, the property type, the leverage, and a full review of the credit profile.
Fourth, how a lender treats a very recent cash purchase depends on the program and the file. No one can promise a waiver of the waiting period on an asset-based loan. Ask before you close.
If the House Is a Rental
A cash buyer often buys a rental. That changes the loan type.
Investor loans are designed for non-owner-occupied investment properties. Because they are business-purpose loans, they are reviewed differently from a standard owner-occupied mortgage. The Federal Register rulemaking on the federal ability-to-repay rule says investment-purpose loans count as business-purpose loans.
For a pure rental, a rental-income loan usually fits better. It qualifies primarily on property-level rental income covering the payment, subject to lender guidelines. Your personal paycheck is not the test. Select lenders in the network also offer programs below a 1.00 coverage ratio, though leverage and terms adjust when coverage is thin.
An investment property can also run through the asset depletion path, where it is capped at 65% on a purchase or rate-and-term refinance and 60% on a cash-out. Occupancy matters. If you plan to live in the property, treat it as a principal residence or second home, because the loan then becomes consumer credit and the asset-based rules above apply. Be honest about intent at the start.
Proving Where the Cash Came From
A lender wants a clean trail for both the purchase and the accounts that remain. The documents change with the source.
| Source of funds | Typical proof |
|---|---|
| Savings or investments | Statements for each account |
| Sale of a prior home | Settlement statement |
| Sale of a business | Sale agreement and deposit record |
| Inheritance | Estate paperwork and deposit record |
| Legal settlement | Settlement papers and deposit record |
| Retirement withdrawal | Withdrawal record and deposit record |
Sale-of-business, inheritance and legal-settlement funds are excused from the depletion path’s seasoning rule. On the qualifier path, two months of statements per qualifying account still apply. Gifts and unusual transfers vary by lender, so raise them early.
Also keep your purchase documents together: the settlement statement, proof the sale was arm’s length, and clean title. A buyer who has these in order has a much easier file.
Mistakes That Sink the Plan
Most failed files trace back to the same few errors:
- Buying first, asking later. Our experience across files is that most problems begin when the borrower never talked to the lender before the cash closing.
- Leaving a lien on the property. Seller financing, or a bridge or hard-money loan secured by the house, can trigger a lender’s seasoning rules. Private money not secured by the property is a gray area that depends on the lender.
- Borrowing the cash. If the purchase money came from a credit line, the new loan may have to repay it. That defeats the point.
- Counting the wrong assets. Crypto and cash on hand do not count as published.
- Blending the paths. You qualify on one path at a time.
- Skipping seasoning. A balance that arrived last week may not be usable yet.
- Assuming no rules apply. Lenders must classify a loan correctly. Hunton Andrews Kurth’s analysis of business-purpose lending notes that some states require lender licensing for loans secured by residential real property regardless of purpose. That is why lenders collect business-purpose documentation.
Tax treatment varies; consult a qualified professional before relying on any deduction.
Who This Fits (and Who It Does Not)
This route tends to fit you if:
- Your remaining balances are large relative to the loan you want.
- Your documented income is low or irregular, or your income is mostly portfolio-based.
- You can document where your cash came from.
- You can wait for seasoning to run.
It tends not to fit if:
- Your wealth sits mostly in illiquid or ineligible assets.
- You spent nearly all your liquid money on the purchase.
- You financed the cash purchase with a loan against the property.
If it does not fit, you have fallbacks. You can wait out a standard cash-out waiting period. You can look at a home equity line. You can also look at a bank statement program if you document income through deposits. Each has its own rules, which differ from the asset-based rules above.
A Step-by-Step Order of Operations
1. Talk to a broker before the cash closing. Map your accounts to a path.
2. Check the seasoning clock. Make sure the accounts you want to count are old enough.
3. Buy clean. Avoid liens and borrowed funds.
4. Keep your paper trail. Save the settlement statement and statements for every account.
5. Pick your path and compare programs. Run both and see which clears.
6. Apply and respond to underwriting. The lender reviews credit, the property and your statements.
Asset-based mortgages on a principal residence or second home are consumer mortgages, so the standard consumer disclosure rules apply. Investor loans are business-purpose and are handled differently.
Frequently Asked Questions
Can I get a mortgage right after buying with cash and having no job?
Often yes, if the lender reviews your qualifying assets instead of employment income. The qualifier path needs eligible assets that equal or exceed the whole loan, and it needs seasoned statements. How soon after the cash closing depends on the program and the lender, so ask before you close.
Does paying cash make my loan harder to approve?
It can, because the cash leaves your accounts. The lender counts only what remains. A buyer who keeps a strong liquid balance after the purchase is in a much better position than one who drained everything.
Can I borrow against a house I own outright?
Yes, through select programs. On the asset depletion path, cash-out is capped at 60% on a principal residence, second home or investment property. Proceeds from a cash-out never count toward qualifying assets.
Do retirement accounts count?
They do, at a reduced share. On the qualifier path a 401(k) or IRA counts at 90% under age 59½ and 100% at 59½ or older. On the depletion path retirement accounts count at 70% at any age. All figures are subject to underwriting.
Does Michigan change any of this?
The program figures are the same for a Michigan borrower. Local taxes, insurance and title practices affect your budget but do not change the program rules.
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. Lendmire is a broker that places these loans through select lenders in its network. It is not a commitment to lend, and every file is underwritten individually.
Michigan cash buyers who plan the paper trail before closing keep the most options open afterward.
Lendmire’s asset-based mortgage in Michigan page presents the program for Michigan 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 traditional personal-income documentation, 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.
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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. Fannie Mae Selling Guide B2-1.3-03, Cash-Out Refinance Transactions
2. Federal Register: Ability-to-Repay and Qualified Mortgage Standards
3. Hunton Andrews Kurth: Beware of Business Purpose
This article is part of Lendmire’s asset-based mortgage program — full qualification details, guidelines, and scenarios live on the program page.
Related reading: Delayed Financing vs. an Asset Qualifier Loan After Paying Cash for an Indiana Home · How to Finance a Michigan Vacation Home With an Asset Qualifier Mortgage · Does Cash-Value Life Insurance Count on an Asset Depletion Mortgage?
Guides: Asset-Based Mortgage in Michigan
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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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.