The Quick Read: Yes, you can get a mortgage in Tennessee with little or no earned income if your savings are large enough, because asset-based programs review your file on documented assets instead of a paycheck, and every file still goes through full underwriting with statements, credit review, and a property review, subject to lender guidelines. Lendmire arranges these loans as a broker through select lenders in its network, and the program figures below do not change by state.
- Path one, asset qualifier: your eligible assets, after the credit percentages, must equal or exceed the entire loan. No employment or income is documented.
- Path two, asset depletion: your eligible assets are converted into monthly qualifying income by dividing usable assets by 60 months. That income then runs through the debt-to-income test.
- You are on one path at a time. The two sets of figures never blend.
- You still document everything about your assets. That means no traditional personal-income documentation, pay stubs or employment verification, but plenty of statements.
- Rental property is different. An investor buying a rental often is reviewed on the property’s rent instead, which is covered near the end.
What Does “No Income” Actually Mean to a Lender?
It means no paycheck, not no paperwork. A lender wants proof that you can repay the loan. For most borrowers that proof is income. For a cash-rich, income-light borrower, the proof is the balance in your accounts.
Picture a few common profiles. A retiree lives on a portfolio and takes only small withdrawals. A business owner has just sold the company. Someone received an inheritance or a legal settlement. An early-retired professional lives off investments. Each has large balances and a low documented income, and a standard salary-based underwriting model reads that as a weak file even though the borrower is wealthy.
Asset-based programs fix that mismatch. They let the balance sheet do the work that a W-2 normally does. The credit is not waived, though. Across our wholesale network, every file is fully underwritten. The lender pulls credit, reviews the property, and reads your statements line by line.
The Two Paths: Asset Qualifier and Asset Depletion
Choose the path by asking one question: can your assets cover the whole loan, or do you need them to behave like income? The first question points to the asset qualifier path. The second points to asset depletion. Each has its own leverage limits, credit rules, and paperwork.
| Feature | Asset qualifier | Asset depletion |
|---|---|---|
| How you qualify | Usable assets cover the whole loan | Usable assets ÷ 60 months = income |
| Income documented | None | Derived from assets, runs through DTI |
| Loan size | Up to $4,000,000 | $125,000 to $3,500,000 |
| Credit | 600 minimum score | The lender’s matrix |
| Reserves | None at or below 75% LTV | No published reserve months |
On the asset qualifier path, leverage runs up to 80% loan-to-value (LTV, the loan divided by the property value) on a purchase and 75% on a refinance, on a principal residence or second home. Whether cash-out proceeds are allowed on this path is set by the individual lender, so treat cash-out as a question to ask rather than a feature to assume.
On the asset depletion path, leverage on a principal residence or second home goes up to 80% on a purchase or rate-and-term refinance and 60% on a cash-out refinance. On an investment property, the limits are 65% on a purchase or rate-and-term refinance and 60% on a cash-out. Cash-out proceeds never count as qualifying assets.
All of these are ceilings, subject to underwriting and the specific program. They are not offers.
Which Assets Count, and How Much
Not every dollar counts at face value. Each path applies its own percentages to your balances. Keep the two tables separate, because the numbers differ.
Asset qualifier path: share of the balance that counts.
| Asset | Counts at |
|---|---|
| Brokerage accounts | 100% |
| Certificates of deposit | 100% |
| Money market accounts | 100% |
| Savings accounts | 100% |
| 401(k) and IRA, under age 59½ | 90% |
| 401(k) and IRA, 59½ or older | 100% |
Accounts combine. Several accounts at different institutions can add up to the loan amount.
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 at all on the depletion path. These include 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.
What about crypto, gold, and borrowed money?
None of these are published as eligible on either path. Cryptocurrency, precious metals, collectibles, business accounts beyond your ownership share, and pledged or borrowed funds do not count at a percentage. The documented route is to convert them to cash, hold the cash in a regulated account long enough to season, and let the lender review the source. Plan that conversion before you apply, not during.
Worked Examples
These examples show the mechanics. The lender’s own calculation governs, and every file is subject to underwriting.
Asset qualifier. Say you want an $800,000 loan. You hold $330,000 in brokerage accounts, which count at 100%, so $330,000. You hold $300,000 in a 401(k) and you are under 59½, so it counts at 90%, or $270,000. You hold $200,000 in savings, which counts at 100%, so $200,000. Together that is $800,000 of usable assets. The assets alone cover the loan, so you qualify on assets without documenting income.
Asset depletion. Say you hold $1,500,000 in securities, which count at 80%, so $1,200,000. You also hold $300,000 in cash at 100%. That is $1,500,000 of usable assets. Divide by 60 months and you get $25,000 of monthly qualifying income. That income must then carry the housing payment and your other debts through the debt-to-income test.
Notice what did not happen. Nobody sold the portfolio, and nothing was pledged. The assets are used to show ability to repay, and you keep them.
Why a Lender Can Use Assets Instead of Paychecks
For a home you will live in, the lender must make a reasonable, documented judgment that you can repay. That judgment does not have to rest on wages. The CFPB’s ATR/QM small entity compliance guide says a creditor may consider assets other than the home itself. Its examples include savings, vested retirement funds, stocks, bonds, CDs and trust funds.
That is the legal footing for both paths. The consumer-purpose mortgage still gets a full review. The review simply leans on your assets rather than your earnings.
What a Tennessee Borrower Should Know
Lendmire’s consumer mortgage lending is licensed in 16 states, and Tennessee is one of them. The program figures here apply the same way for a Tennessee purchase as for any other licensed state. State facts such as local prices, taxes and insurance are context for your budget. They are not program parameters.
Tennessee draws relocators and retirees, and many of them arrive with large sale proceeds and little current income. That is exactly the profile these programs were built for. If you are selling a home elsewhere and moving, the proceeds can become your seasoned cash balance, and sale-of-business, inheritance and legal-settlement funds are excused from the depletion path’s statement-age rule.
Property type matters. The asset qualifier path covers a principal residence or second home. The depletion path covers those too, and also investment property, where the loan is a business-purpose loan at lower leverage. You can read more about asset-based mortgage programs on Lendmire’s program page.
Documentation, Seasoning, and Credit
Seasoning is how long money has to sit in an account before a lender counts it. Lenders use it to confirm the funds are yours and not a short-term loan. The rules differ by path.
Asset qualifier path:
- 60 days of seasoning on qualifying assets.
- Two months of statements for each qualifying account.
- A 600 minimum credit score, with a housing history of 0x30x12. One 30-day late in the last twelve months is considered case by case.
Asset depletion path:
- Statements at least 120 days old at application, plus the most recent statement within 45 days.
- Credit follows the lender’s matrix. A first-time investor needs a 700 score.
- Qualified assets of at least the lesser of $1,000,000 or 1.25 times the loan balance. When depletion is your only income source, you need at least $250,000 in liquid assets.
- Multiple bankruptcies are not eligible. A housing event needs four years of seasoning.
Large unexplained deposits slow files down or kill them. Before you apply, trace any recent big transfer to its source. Moving money between your own accounts is fine when the paper trail is clean. A lender will ask about it, so have the answer ready.
Asset-derived income can also supplement documented income, up to a 45% debt-to-income ratio. When it supplements, the minimum-assets rule is waived. That helps a borrower with a small pension or part-time income who also holds a good portfolio.
Retirement Accounts: The Questions Everyone Asks
Retirement money is where borrowers get confused, so here is the plain version. On the asset qualifier path, 401(k) and IRA balances count at 90% under age 59½ and 100% at 59½ or older. On the depletion path, retirement accounts count at 70% at any age.
You do not have to withdraw or liquidate the account for it to count. Asset-based programs use the balance to show ability to repay. If you do plan to withdraw funds for the down payment, tax treatment varies and you should consult a qualified professional first.
The Investor Decision: Savings, Rentals, and the Right Tool
If you are buying a rental, you may not need asset-based qualifying at all. 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. Regulation Z’s business-purpose exemption lists factors that decide whether a loan is truly business-purpose, including the borrower’s stated purpose and how much of the borrower’s income comes from the property.
The label of “investment” alone does not settle it. As Compliance Alliance explains, the loan’s purpose is what controls. A home you will live in stays a consumer loan, and that is where asset qualifying and asset depletion earn their place.
A DSCR loan, short for debt service coverage ratio, qualifies primarily on property-level rental income covering the payment, subject to lender guidelines. Programs below 1.00 coverage are available through select lenders in the network, but LTV and terms adjust. Your savings still matter on a DSCR file as down payment and reserves.
| Program | What it uses instead of a paycheck | Best for |
|---|---|---|
| Asset qualifier | Assets cover the whole loan | Cash-rich buyer of a home |
| Asset depletion | Assets divided into monthly income | Portfolio-funded household or investor |
| Bank statement | Income documented through deposits | Self-employed with steady deposits |
| DSCR | The property’s rent | Rental purchases and refinances |
Pick asset depletion for an investment property when you want to qualify on your own balance sheet, and the rent is thin or the property is not yet leased. Pick DSCR when the rent comfortably covers the payment and you would rather keep your assets out of the calculation. The stronger play for many investors is DSCR on the rental and an asset-based loan on their own home. Both can run at once, and each is tested separately.
Risks and Tradeoffs
Asset-based qualifying can help address the income problem. It does not remove risk from the loan for you. Three tradeoffs deserve attention.
Liquidity. The assets that qualify you may also be your living expenses. If you buy with a high loan amount and then draw on the same portfolio for a decade, the payment and the withdrawals come from one pool.
Market exposure. Securities fluctuate. A portfolio that supports the loan today can shrink in a downturn, while the payment stays the same. Lenders test this at application, not after closing.
Double counting. Money used for the down payment, closing costs and any reserves cannot also count toward qualifying. Subtract it first, then run the math. Many borrowers overestimate their usable assets because they skip this step.
There is also a plain tradeoff in structure. Leverage on the depletion path is lower on investment property and on cash-outs than on a purchase of a primary home. That is how the lender prices the risk of an income-light file.
Is This Right for You? A Readiness Checklist
Ask yourself these questions before applying:
- Do my eligible balances, after the percentages for my path, cover the loan or produce enough monthly income?
- Have my funds sat in regulated accounts long enough to season?
- Can I trace every large deposit to a clear source?
- Is my credit score at or above the path’s requirement?
- Is the property a home I will live in, a second home, or a rental?
- Can I live comfortably after the purchase without relying on the same assets that qualified me?
If you can answer yes to most of these, the file is worth structuring. If not, the gap is usually fixable. Converting crypto to a seasoned cash balance, consolidating accounts, or choosing a lower loan amount often closes it.
How to Apply: Step by Step
1. Gather statements for every account you plan to use, including the two most recent months.
2. Total your usable assets using the right path’s percentages, and subtract the down payment, closing costs and reserves.
3. Pick a path. If usable assets cover the loan, the qualifier path fits. If you need income, the depletion path fits.
4. Choose leverage within the ceiling for your occupancy and transaction type.
5. Submit the file with credit authorization, statements and property details. Underwriting then reviews credit, assets and the property.
6. Plan the source of every large deposit before the lender asks.
Common Mistakes
- Treating no income as no documentation. The assets are documented on both paths.
- Counting retirement balances at 100% on the wrong path.
- Forgetting to subtract the down payment and reserves.
- Applying with unseasoned or unexplained funds.
- Assuming approval because the balance is large. Credit, the property and the program’s rules still apply.
Key Terms Defined
Asset qualifier: a path where eligible assets must equal or exceed the entire loan amount, with no income documented.
Asset depletion: a path that divides usable assets by 60 months to create monthly qualifying income.
Seasoning: the time funds must sit in an account before a lender counts them.
LTV (loan-to-value): the loan amount divided by the property’s value.
Debt-to-income (DTI): your monthly debts, including the new housing payment, divided by monthly income.
Business-purpose loan: a loan made for investment or commercial use rather than for a home you live in.
Frequently Asked Questions
Do I need any income at all?
Not on the asset qualifier path, where usable assets must cover the entire loan and no employment or income is documented. On the asset depletion path, income is derived from your assets, so no paycheck is needed, but your assets must be large enough. Either way, the file is fully underwritten.
Can I use my IRA or 401(k)?
Yes, subject to underwriting. On the qualifier path, retirement balances count at 90% under 59½ and 100% after. On the depletion path, they count at 70% at any age. You generally do not need to withdraw the money for it to count.
Does this work for a second home or an investment property?
A second home is reviewed on both paths. An investment property is available only on the depletion path, as a business-purpose loan at lower leverage: up to 65% on a purchase or rate-and-term refinance and 60% on a cash-out. If the rent covers the payment, a DSCR loan may be the simpler tool.
Can cryptocurrency count as an asset?
Not directly. Crypto is not published as eligible on either path. The documented route is to convert it to cash, season it in a regulated account, and let the lender review the source.
Will the lender take or freeze my savings?
No. Assets are used to show ability to repay. You keep them, and nothing has to be sold. The lender only checks that the balances are real, seasoned and large enough.
What to Do Next
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. The program is placed through select lenders in its network, and Lendmire acts as the broker.
For a Tennessee borrower with a seasoned, well-documented balance sheet, the real question is rarely whether a lender will look at assets. It is which path fits the balances you hold.
Lendmire’s asset-based mortgage in Tennessee page presents the program for Tennessee 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.
Get Started
Ready to find the right loan for you?
In about 30 seconds you can review financing options available for your home or investment property. No commitment required.
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 Small Entity Compliance Guide
2. CFPB Regulation Z, 12 CFR 1026.3
3. Compliance Alliance, Regulation Z and Investment Properties
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 an Ohio Mortgage After Retiring With No W-2 Income · How to Refinance a Pennsylvania Mortgage After Retiring With No W-2 Income · How to Refinance a Tennessee Mortgage After Retiring With No W-2 Income
Guides: Asset-Based Mortgage in Tennessee
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
- North Carolina Insurance Producer · License# 19053198 · Property, Casualty, Life, Health · Verify on NAIC SBS
- 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.