The Quick Read: A retired Colorado buyer qualifies by proving the savings can carry the loan, either by letting eligible assets cover the whole loan or by converting them into a monthly qualifying income, subject to underwriting. The loan is fully underwritten, and the assets are documented with statements.
- Asset qualifier path: eligible assets must equal or exceed the entire loan. No employment or income is documented, and no traditional personal-income documentation, pay stubs or employment verification are needed.
- Asset depletion path: usable assets divided by 60 months become a qualifying income that runs through the debt-to-income test.
- One path at a time: a borrower is reviewed on one path, never a blend of the two.
- Credit and leverage still matter: the qualifier path has a 600 minimum score, and leverage runs up to 80% on a purchase on that path.
- Figures are ceilings and floors: these are program ranges through select lenders, not offers, and every file is underwritten individually.
Retired people often hold a lot of money and show very little income on paper. A $2 million brokerage account can sit beside a tax return that looks thin. Traditional underwriting reads the tax return. Asset-based underwriting reads the account statements.
Does Retirement Block a Mortgage?
No. Retirement status and age are not disqualifiers. A lender wants evidence that you can repay, and a paycheck is only one form of that evidence.
Many retirees do qualify the ordinary way, using Social Security, a pension, or steady retirement-account distributions. That route works when the documented income is large enough for the payment. It struggles when most of your wealth sits in investments you are not drawing down.
That gap is what asset-based mortgage programs are built for. Lendmire is a broker. It places these files with select lenders in its wholesale network. These programs are for borrowers whose balances are large and whose documented income is not. That includes retirees, business sellers, inheritance recipients and early-retired professionals. In Colorado, the same program figures apply as elsewhere, subject to underwriting.
Two Ways to Qualify Using Assets
The two paths answer different questions. The qualifier path asks whether your assets cover the loan outright. The depletion path asks whether your assets, turned into income, can carry the payment.
| Factor | Asset qualifier path | Asset depletion path |
|---|---|---|
| Core test | Eligible assets ≥ whole loan | Assets ÷ 60 months = income |
| Income documented | None | Derived from assets |
| Purchase leverage | Up to 80% | Up to 80% (home); 65% (investment) |
| Refinance leverage | Up to 75% | 80% rate-and-term; 60% cash-out (home) |
| Loan amounts | Up to $4,000,000 | $125,000 to $3,500,000 |
| Credit | 600 minimum score | Lender’s matrix |
Read each column on its own. Never mix a figure from one path into the other.
On the depletion path, the home figures apply to a principal residence or second home. For investment property, leverage is 65% on a purchase or rate-and-term refinance and 60% on a cash-out. Cash-out proceeds never count as qualifying assets. Whether cash-out is allowed on the qualifier path is set by the lender, so no figure is published for it.
How the Asset Qualifier Path Works
Start with the simplest idea. Add up your eligible assets after the credit percentages. If the total equals or exceeds the whole loan amount, you qualify on assets alone. No employment or income is documented.
Here is what counts on this path, subject to underwriting:
- Brokerage accounts, CDs, money market and savings count at 100%.
- A 401(k) or IRA counts at 90% if you are under 59½.
- A 401(k) or IRA counts at 100% at 59½ or older.
- Accounts combine.
Run an illustration. Say the loan is $800,000. You hold $330,000 in brokerage accounts (100% counts, so $330,000). You hold $300,000 in a 401(k) and are under 59½ (90% counts, so $270,000). You hold $200,000 in savings (100%, so $200,000). Usable assets total $800,000, which matches the loan. That file is reviewed on assets alone, subject to the lender’s own calculation.
The rest of the file still gets checked. Credit needs a 600 minimum score. Housing history is expected to be 0x30x12, though one 30-day late in the last twelve months is considered case by case. Multiple bankruptcies are not eligible.
Seasoning is the waiting period an asset must sit in your account before it counts. Here it is 60 days, with two months of statements for each qualifying account. No reserves are required at or below 75% loan-to-value. Above that, the lender sets them. Since this path allows up to 80% on a purchase, a high-leverage buy may carry a reserve requirement. Terms vary by lender guidelines, property type, leverage, credit profile, and full file review.
How the Asset Depletion Path Works
Depletion turns a lump sum into a monthly income. Usable assets, after the haircuts below, are divided by 60 months. The result must carry the full housing payment plus your other debts through the debt-to-income test. That test is the ratio of monthly debt to monthly income.
A haircut is the share of an account’s value the lender discounts. On this path, the share that counts is:
- Cash accounts and CDs: 100%.
- Securities: 80%.
- Private stock: 75%.
- Retirement accounts: 70% at any age.
- Real-estate equity: 60%.
Now the illustration. Say you hold $1,500,000 in securities (80% counts, so $1,200,000) and $300,000 in cash (100%, so $300,000). Usable assets are $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 your other debts. The lender’s own calculation governs, and this is illustrative only.
Each retirement dollar counts less here than on the qualifier path. That is a real tradeoff. A large 401(k) usually works harder on the qualifier path, where it counts at 90% to 100% instead of 70%.
The depletion path has its own entry bar. Qualified assets must be at least the lesser of $1,000,000 or 1.25 times the loan balance. When depletion is your only income source, you also need at least $250,000 liquid. Statements must be at least 120 days old at application, plus one statement within 45 days. Funds from the sale of a business, an inheritance or a legal settlement are excused from that seasoning.
Credit follows the lender’s score and loan-amount matrix. A first-time investor on this path needs a 700 score. A housing event such as a foreclosure needs four years of seasoning.
One more feature. Asset income can supplement documented income, such as a pension, up to a 45% debt-to-income ratio. When it supplements, the minimum-assets rule is waived. A retiree with a modest pension and a mid-sized portfolio sometimes lands here.
What Counts, and What Doesn’t
The percentages above cover mainstream accounts. Plenty of wealth sits elsewhere, and this is where retirees get surprised.
Not eligible on the depletion path:
- Custodial accounts
- Deferred compensation
- Escrow accounts
- Foreign funds
- Cash on hand
- Stock options
- Non-vested restricted stock units
- Funds from non-regulated financial companies
Cryptocurrency, precious metals, collectibles and pledged or borrowed funds are not published as eligible on either path. Here is the workaround. Convert them to a seasoned cash balance in a regulated account, and the lender reviews the source of that money. Business accounts count only to the extent of your ownership share.
Where the General Rule Breaks
Several edge cases change the answer.
You are under 59½. The qualifier path counts your retirement balance at 90% instead of 100%. The depletion path counts it at 70% regardless of age. If you have both brokerage money and retirement money, the age cutoff changes which path looks better.
Accounts are shared. Joint accounts with a spouse usually mean the spouse is a borrower too.
Unemployment benefits. These generally do not count like a pension or an annuity, because lenders want income expected to continue.
You want to buy a rental. Investment property is allowed only on the depletion path, at 65% leverage on a purchase and 60% on a cash-out. It is a business-purpose loan. Exact terms depend on the lender’s guidelines, property type, leverage, and a full review of the borrower’s file.
You are not selling anything. You don’t have to liquidate your investments. The assets count while they stay invested. What you spend on the down payment and closing costs reduces what remains to count.
Which Path Fits You?
Pick the path by your balance sheet.
- Assets comfortably exceed the loan, and a lot of it is in cash, CDs or brokerage. The qualifier path fits. It avoids derived income and the debt-to-income test.
- Assets are large but the loan is larger than your usable assets. The depletion path may work, because it does not require assets to cover the loan.
- You have a pension or Social Security plus a mid-sized portfolio. Supplementing documented income with asset income can work, up to the 45% debt-to-income limit.
- Most of your wealth is in a 401(k) and you are 59½ or older. The qualifier path counts it at 100%, which is hard to beat.
- You are an early retiree under 59½ with a big portfolio. Run both paths. The 90% versus 70% difference can decide it.
- Your wealth is mostly in a business, crypto or stock options. Expect a conversion step before any program will count it.
A good broker runs both paths side by side and shows you the gap. This is where seeing many lenders’ guidelines pays off. Across Lendmire’s wholesale network, the same statements can look strong on one path and thin on the other. Programs change, and each lender reviews every file individually.
Documents and Sequencing
Gather your paperwork before you shop. Seasoning is where files stall.
1. Statements for every account you plan to use. The qualifier path wants two months for each account. The depletion path wants one statement that is at least 120 days old, plus one within 45 days.
2. Large recent deposits explained. Money that moved into an account recently needs a paper trail, except for sale-of-business, inheritance and legal-settlement funds on the depletion path.
3. Credit review. The lender pulls it and checks housing history.
4. Property details. The purchase contract or refinance information.
5. Account ownership proof. Who owns each account, and in what share.
Don’t move money between accounts while you are applying. Moving savings into a new account restarts the clock on that balance.
The Rules Behind It, Briefly
The federal ability-to-repay rule asks lenders to consider your current or reasonably expected income or assets, and it says employment status matters only when the lender relies on employment income. The CFPB’s ability-to-repay compliance guide also says a lender must consider a planned retirement. That is why retirement itself never blocks a loan.
Rental purchases follow a different frame. Credit extended for a business purpose is exempt from that rule under Regulation Z’s business-purpose exemption. The loan’s purpose governs, not just the collateral, as Compliance Alliance’s summary of Regulation Z and investment properties explains. A rental you will live in within the coming year is deemed business-purpose only above two units, so a two-unit owner-occupied purchase is a consumer loan.
For a pure rental, a separate loan type exists. Business-purpose investor financing qualifies primarily on property-level rental income covering the payment, subject to lender guidelines. Your portfolio then supports the down payment, reserves and source of funds. It is not counted as income.
A Note for Colorado Buyers
Colorado is one of 16 states where these consumer mortgage programs are available through select programs, subject to underwriting. The program figures do not change by state. What changes is the property. A Front Range house and a mountain second home carry different taxes, insurance and maintenance costs, and those belong in your housing payment. On the depletion path they affect the debt-to-income test directly. Budget for them before you pick a price.
Key Terms Defined
Asset qualifier path: a program path where eligible assets, after the credit percentages, must equal or exceed the entire loan amount.
Asset depletion path: a program path where usable assets divided by 60 months become a monthly qualifying income.
Haircut: the share of an account’s value that the lender discounts when counting it.
Seasoning: the period an asset must sit in your account, shown by statements, before it counts.
Debt-to-income ratio: your monthly debts, including the new housing payment, divided by your monthly income.
Loan-to-value (LTV): the loan amount as a percentage of the property’s value.
Next Steps
Start with your statements. List each account, its type, and your age relative to 59½. That list tells a broker which path to test first. 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.
Tax treatment varies; consult a qualified professional.
Frequently Asked Questions
Do I need to be retired to use these programs?
No. They suit anyone whose balances are large and documented income is small. That includes business sellers, inheritance recipients and people living off a portfolio. Retirees are a common fit because their wealth sits in accounts rather than paychecks.
Does the asset qualifier path mean no documentation?
No. Every file is fully underwritten, and your assets are documented with statements. What you skip is traditional personal-income documentation, pay stubs and employment verification. The lender still reviews credit, the property and the source of your funds.
Can I use my IRA or 401(k)?
Yes, subject to underwriting. On the qualifier path, retirement balances count at 90% under age 59½ and 100% at 59½ or older. On the depletion path, they count at 70% at any age. You don’t have to withdraw the money.
What credit score do I need?
The qualifier path has a 600 minimum score. The depletion path follows the lender’s score and loan-amount matrix, and a first-time investor there needs 700. Housing history is expected to be 0x30x12, though one recent late payment is considered case by case.
Can I buy a rental with this type of loan?
Only on the depletion path, at up to 65% leverage on a purchase or rate-and-term refinance and 60% on a cash-out, subject to underwriting. For a rental that stands on its own rent, a separate business-purpose investor loan may fit better. Every figure here varies by lender and program — guidelines, property type, leverage, and credit profile all apply.
Colorado’s mix of Front Range suburbs and mountain towns means two retirees with identical statements can face very different housing payments, so test the price before you test the path.
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.
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 Small Entity Compliance Guide
2. CFPB Regulation Z, Section 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 Much Does a Startup Founder Need in Assets to Qualify for a Mortgage? · Can a Georgia Buyer Qualify for a Mortgage on IRA Assets Without Withdrawals? · How to Refinance a Colorado Mortgage After Retiring With No W-2 Income
Guides: Asset-Based Mortgage in Colorado
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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Important disclosures. Lendmire (NMLS# 2371349) is a licensed mortgage brokerage. Lendmire is not a direct lender, depository institution, or financial advisor. All loan inquiries are subject to lender underwriting; this article does not constitute a commitment to lend. Rates, terms, and program guidelines are subject to change without notice and vary by borrower profile, property type, and state. Information in this article is general in nature and is not financial, legal, or tax advice. Equal Housing Opportunity. NMLS Consumer Access: nmlsconsumeraccess.org.