The Quick Read: A retiree with large balances and little paycheck income can qualify by having the lender underwrite the portfolio instead of a salary. Either the assets cover the whole loan outright, or they are converted into a monthly qualifying income that runs through the debt-to-income test. Through select programs, no traditional personal-income documentation, pay stubs or employment verification are required, but every asset is documented and every file is fully underwritten, subject to lender guidelines.
- Assets cover the loan: on the asset qualifier path, usable assets must equal or exceed the entire loan amount.
- Assets become income: on the asset depletion path, usable assets divided by 60 months become qualifying monthly income.
- One path at a time: a borrower is qualified on one path, never a blend of both.
- Not all balances count in full: retirement accounts and securities are discounted, and the discount differs by path.
- Statements matter: seasoning rules apply, and large recent deposits draw questions.
Indiana is one of the 16 states where Lendmire arranges consumer mortgages. The program figures below are the same for an Indiana borrower as anywhere else in that footprint. Treat them as ceilings and floors, not offers.
Why Does a Portfolio Work When a Paycheck Doesn’t?
Standard underwriting asks one question: what do you earn? A retiree living on Social Security, a small pension and portfolio withdrawals often looks thin on paper, even with seven figures invested. The balance sheet is strong. The income line is weak.
Asset-based programs flip the lens. The lender looks at what you own, how long it has been in your accounts, and whether it is large enough to carry the loan. Across the wholesale network Lendmire works with, this is a niche product placed through select lenders. It suits retirees, people who sold a business, heirs, early-retired professionals, and households living off a portfolio.
You keep your investments. Nothing is sold or moved to qualify. The lender only needs to see the balances and the history.
Which Path Fits You: Assets as the Loan or Assets as Income?
The two paths solve different problems. Pick the one that matches how your wealth is arranged.
| Factor | Asset Qualifier | Asset Depletion |
|---|---|---|
| Core test | Usable assets ≥ whole loan | Usable assets ÷ 60 = monthly income |
| Income documented | None | Derived income, tested by DTI |
| Purchase leverage | Up to 80% | Up to 80% (65% on investment property) |
| Refinance leverage | Up to 75% | Up to 80% rate-and-term; 60% cash-out |
| Loan amounts | Up to $4,000,000 | $125,000 to $3,500,000 |
On the qualifier path, the 80% purchase and 75% refinance ceilings apply to a principal residence or second home. On the depletion path, a principal residence or second home can reach 80% on a purchase or rate-and-term refinance and 60% on a cash-out refinance. An investment property on the depletion path is capped at 65% on a purchase or rate-and-term refinance and 60% on a cash-out. All of it is subject to underwriting.
Here is the simple rule of thumb. If your usable assets are at least as large as the loan, the qualifier path is the cleaner fit. If your portfolio is large but smaller than the loan, the depletion path turns it into income instead.
How Does the Asset Qualifier Path Work?
The qualifier path asks whether your eligible assets, after the credit percentages below, equal or exceed the entire loan. No employment or income is documented. The lender’s repayment review rests on the assets.
| Asset (qualifier path) | Share that counts |
|---|---|
| Brokerage accounts | 100% |
| Certificates of deposit | 100% |
| Money market | 100% |
| Savings | 100% |
| 401(k) and IRA, under age 59½ | 90% |
| 401(k) and IRA, 59½ or older | 100% |
Accounts combine. Here is an illustration. Picture a borrower seeking an $800,000 loan who holds $330,000 in brokerage accounts (100% counts, so $330,000), $300,000 in a 401(k) while under 59½ (90% counts, so $270,000), and $200,000 in savings (100% counts, so $200,000). That adds up to $800,000 of usable assets, which meets the loan amount, so the file is reviewed on assets alone. The lender’s own calculation governs.
Credit still counts. The published floor on this path is a 600 score, and housing history is expected to be clean: 0x30x12, with one 30-day late in the last twelve months looked at case by case. No reserves are required at or below 75% loan-to-value. Above that, the lender sets them.
How Does the Asset Depletion Path Work?
The depletion path turns a portfolio into a paycheck on paper. Usable assets, after haircuts, are divided by 60 months. The result is monthly qualifying income, and it must carry the full housing payment and your other debts through the debt-to-income test.
| Asset (depletion path) | Share that counts |
|---|---|
| Cash accounts | 100% |
| Certificates of deposit | 100% |
| Securities | 80% |
| Private stock | 75% |
| Retirement accounts (any age) | 70% |
| Real-estate equity | 60% |
Run the numbers on a retiree with $1,500,000 in securities (80% counts, so $1,200,000) plus $300,000 in cash (100% counts, so $300,000). Usable assets come to $1,500,000. Divided by 60 months, that is $25,000 of monthly qualifying income. That income then has to carry the housing payment and other debts through the DTI test. Illustrative only, and the lender’s calculation governs.
Notice the retirement haircut. A 401(k) or IRA counts at 70% at any age on this path, versus 90% to 100% on the qualifier path. If most of your wealth sits in retirement accounts and you are over 59½, the qualifier path often treats you better, provided the loan fits inside your balances.
Depletion has guardrails. Qualified assets must be at least the lesser of $1,000,000 or 1.25 times the loan balance. When asset depletion is your only income source, you also need at least $250,000 liquid. Cash-out proceeds from a refinance never count as qualifying assets.
What Doesn’t Count as an Asset?
Several things are off the table 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.
Other asset classes are not published as eligible on either path. That covers cryptocurrency, precious metals, collectibles, business accounts beyond your ownership share, and pledged or borrowed funds. The documented route is to convert them to a seasoned cash balance in a regulated account, with the source reviewed by the lender. Don’t count on them at any percentage.
Can Social Security or a Pension Be Added In?
Yes, on the depletion path. Asset-derived income can supplement documented income, such as Social Security or a pension, up to a 45% debt-to-income ratio. When assets supplement documented income, the minimum-assets rule is waived.
That helps the retiree whose guaranteed income covers most of the payment but not quite all of it. The portfolio fills the gap.
What Documents and Seasoning Do You Need?
The assets are documented on both paths. “No income documentation” never means “no documentation.” What you skip is traditional personal-income documentation, pay stubs and employment verification.
Here is the checklist:
- Qualifier path: two months of statements for each qualifying account, and 60 days of seasoning on the funds.
- Depletion path: statements at least 120 days old at application, plus the most recent statement within 45 days.
- Excused from depletion seasoning: sale-of-business, inheritance and legal-settlement funds.
- Credit report and ID, as with any loan.
A large deposit that appeared last month will draw questions. Move money before you apply, not during. For a fuller walkthrough of the underlying mechanics, see Lendmire’s guide How to Qualify for a Mortgage Using Assets Instead of Income.
What Credit Do You Need?
The qualifier path publishes a 600 minimum score. The depletion path follows the lender’s score and loan-amount matrix, so the number moves with the size of the loan. A first-time investor on the depletion path needs a 700.
Multiple bankruptcies are not eligible. A housing event, such as a foreclosure, needs four years of seasoning on the depletion path. None of this promises approval. Every file is underwritten individually.
Buying a Rental With Your Portfolio
Here the picture changes. A loan on a rental or other non-owner-occupied property is a business-purpose loan. A Federal Register rulemaking states that investment-purpose loans are considered business-purpose loans. The OCC Comptroller’s Handbook lists credit extended primarily for a business or commercial purpose as exempt from the consumer lending rule.
In practice, you can still use the depletion path on an investment property, at the lower 65% purchase and 60% cash-out leverage noted above. It is the asset-based mortgage program with tighter leverage. If you would rather qualify on the rent itself, business-purpose rental financing is a separate product called DSCR. Your portfolio then supports the down payment and reserves rather than counting as income. Each figure is subject to lender guidelines and a complete review of property type, leverage, and credit.
Where Does This Route Break Down?
Be honest about the limits.
- The portfolio can fall. A market drop between application and closing shrinks usable assets. A tight file can slip below the line.
- The haircuts are real. A $1,000,000 portfolio never counts as $1,000,000 on the depletion path unless it is all cash.
- Minimums are firm. If you have less than $250,000 liquid and no other income, depletion is not available.
- Cash-out has no shortcut. Proceeds never count as qualifying assets.
- Leverage is lower. Investment property tops out at 65% on a purchase on the depletion path.
- Cost of stress. Qualifying is not the same as comfortable. Plan your own reserves so you aren’t forced to sell in a down year.
Tax treatment varies; consult a qualified professional before relying on any tax assumption.
Key Terms Defined
Asset qualifier: a path where eligible assets, after credit percentages, must equal or exceed the whole loan amount.
Asset depletion: a path that divides usable assets by 60 months to create a qualifying monthly income.
Haircut: the discount applied to an asset’s balance, such as counting securities at 80%.
Seasoning: the length of time funds have sat in your account, shown by statements.
Debt-to-income (DTI): your monthly debts, including the new housing payment, compared to your monthly income.
Business-purpose loan: a loan on a property you rent out rather than live in.
Frequently Asked Questions
Do I have to sell my investments to qualify?
No. The lender documents the balances and their history, but you keep the accounts and the control. Cash-out proceeds from a refinance are the one exception, because they never count as qualifying assets.
Do retirement accounts count?
Yes, at a discount. 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 Indiana change the program figures?
No. The leverage, credit and asset rules are the same for an Indiana borrower. Local property costs matter to your budget, but they are not program parameters.
Is there underwriting if I don’t document income?
Yes. Credit, assets, the property and the loan amount are all reviewed. You skip traditional personal-income documentation, pay stubs and employment verification, but the file is fully underwritten.
Can I use crypto or precious metals?
Not directly. They are not published as eligible on either path. The documented route is to convert them to a seasoned cash balance in a regulated account, and the lender reviews the source.
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. Start by gathering two months of statements and sorting your balances by account type.
Lendmire’s asset-based mortgage in Indiana page presents the program for Indiana 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.
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References
1. Federal Register — Ability-to-Repay and Qualified Mortgage Standards Under the Truth in Lending Act
2. 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 to Refinance a Michigan Mortgage After Retiring With No W-2 Income · How to Refinance a Mortgage After Retiring With No W-2 Income · How to Refinance a Georgia Mortgage After Retiring With No W-2 Income
Guides: Asset-Based Mortgage in Indiana
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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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.