The Quick Read: A retiree can qualify on savings and investments instead of a salary, through one of two asset-based paths, and the lender reviews every file individually, subject to underwriting.
- The asset qualifier path counts your eligible assets against the entire loan amount and documents no employment or income.
- The asset depletion path turns your eligible assets into monthly qualifying income by dividing them over 60 months.
- You qualify on one path at a time, and the lender never asks for traditional personal-income documentation, pay stubs or employment verification on these programs.
- Your assets are still documented with account statements, and the credit percentages, seasoning and leverage limits below apply.
- Lendmire is a broker: it places these loans through select lenders, and the lender makes the final decision.
Does a Lender Actually Need a Paycheck?
A lender needs proof that you can repay the loan. A paycheck is one way to show that, and a large, documented pile of assets is another.
Picture a 67-year-old couple in Richmond. They sold a business, hold a large brokerage account and some CDs, and draw a modest pension. A big bank looks at their taxable income, sees a low number, and stops. That is a mismatch between how banks measure borrowers and how the couple actually lives.
Asset-based mortgage programs fix that mismatch. The loan is a consumer mortgage, meant for a principal residence or second home. Through select programs, an investment property can also qualify, but only on the depletion path described below. Across the wholesale network Lendmire places files through, the same two structures appear again and again. Each one reads your balance sheet instead of your pay history.
These programs fit a specific borrower: retirees, people who sold a business, recipients of an inheritance or settlement, early-retired professionals, and households living off a portfolio. Their balances are large and their documented income is not.
Key Terms Defined
Asset qualifier path: A program path where your eligible assets, after credit percentages, must equal or exceed the whole loan amount.
Asset depletion path: A program path where eligible assets are divided by 60 months to create monthly qualifying income.
Haircut: The share of an account’s balance a lender discounts because the money is less liquid or less certain.
Seasoning: How long money has sat in your accounts, shown by statements, before the lender will count it.
Debt-to-income ratio (DTI): Your monthly debts, including the new housing payment, divided by your monthly income.
Required minimum distribution (RMD): The yearly amount the IRS requires you to withdraw from most traditional retirement accounts once you reach a set age.
Loan-to-value (LTV): The loan amount divided by the property’s value, shown as a percentage.
The Two Paths and How to Pick One
Pick the qualifier path if your eligible assets can cover the whole loan. Pick the depletion path if your assets are large but cannot cover the loan outright, and you want them converted into income.
Here is how the two paths compare. Every figure is a ceiling or floor, subject to underwriting, and not an offer.
| Factor | Asset qualifier path | Asset depletion path |
|---|---|---|
| How you qualify | Assets cover the entire loan | Assets become monthly income |
| Income documented | None | Derived income runs through DTI |
| Purchase leverage | Up to 80% LTV | Up to 80% (home), 65% (investment) |
| Refinance leverage | Up to 75% LTV | 80% rate-and-term, 60% cash-out (home) |
| Loan amounts | Up to $4,000,000 | $125,000 to $3,500,000 |
| Occupancy | Principal residence or second home | Home or investment property |
| Credit | 600 minimum score | The lender’s matrix |
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. A principal residence or second home on that path can go to 80% on a purchase or rate-and-term refinance, and 60% on a cash-out. Cash-out proceeds never count as qualifying assets on the depletion path.
On the qualifier path, whether cash-out is allowed is set by each lender, so do not plan around it.
How Virginia Retirees Qualify Without a Paycheck, Step by Step
Underwriting follows the same order on both paths. First the lender confirms which assets are eligible. Then it applies the credit percentage or haircut. Then it checks that the statements are old enough. Finally it runs the path’s test.
Step 1: Sort your accounts. On the qualifier 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% once you reach 59½. Accounts combine, so several balances can add up to the loan amount.
Step 2: Check the seasoning. The qualifier path wants 60 days of seasoning and two months of statements for every qualifying account. The depletion path wants statements at least 120 days old at application, plus the most recent statement dated within 45 days. Funds from the sale of a business, an inheritance or a legal settlement are excused from that depletion-path seasoning.
Step 3: Apply the test. On the qualifier path, usable assets must equal or exceed the whole loan. On the depletion path, usable assets divided by 60 months gives monthly income, and that income must carry the full housing payment and your other debts.
Step 4: Check credit and housing history. 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 on that path needs 700. Housing history is typically 0x30x12, meaning no 30-day lates in the past twelve months, though one late payment is considered case by case. Multiple bankruptcies are not eligible. A housing event such as a foreclosure needs 4 years of seasoning on the depletion path.
Step 5: Check minimums. The depletion path requires qualified assets of at least the lesser of $1,000,000 or 1.25 times the loan balance. When assets are your only income source, you also need at least $250,000 liquid. The qualifier path requires no reserves at or below 75% LTV. Above that, the lender sets them. Leverage, reserves, and pricing vary by lender and program; the final terms follow the full file review.
Every file is fully underwritten. The assets are documented. Only the paycheck is absent.
Which Assets Count and Which Don’t
Cash-like accounts count fully on both paths, and retirement accounts count for less. The treatment differs by path, so read each column as its own program.
| Asset | Qualifier path | Depletion path |
|---|---|---|
| Brokerage / securities | 100% | 80% |
| Cash, savings, money market | 100% | 100% |
| Certificates of deposit | 100% | 100% |
| 401(k) or IRA | 90% under 59½, 100% at 59½+ | 70% at any age |
| Private stock | Not published | 75% |
| Real-estate equity | Not published | 60% |
The depletion path does not accept custodial accounts, deferred compensation, escrow accounts, foreign funds, cash on hand, stock options, non-vested restricted stock units, or funds from non-regulated financial companies.
Cryptocurrency, precious metals, collectibles, pledged or borrowed funds, and business accounts beyond your ownership share are not published as eligible on either path. The documented route is to convert them into a seasoned cash balance in a regulated account. The lender then reviews the source of that money.
Many retirees sit on a mix of these holdings. A fair first move is to total each bucket at its own percentage before you talk to anyone.
Worked Examples
These numbers show the mechanics. The lender’s own calculation governs.
Qualifier path. Say you want an $800,000 loan. You hold the following:
- Brokerage accounts: $330,000, counted at 100%, so $330,000 counts.
- 401(k) under age 59½: $300,000, counted at 90%, so $270,000 counts.
- Savings: $200,000, counted at 100%, so $200,000 counts.
That totals $800,000 of usable assets. The file is reviewed on assets alone, subject to underwriting.
Depletion path. Now say you hold securities and cash:
- Securities: $1,500,000, counted at 80%, so $1,200,000 counts.
- Cash: $300,000, counted at 100%, so $300,000 counts.
That is $1,500,000 of usable assets. Divided by 60 months, it produces $25,000 of monthly qualifying income. That income then carries the housing payment and your other debts through the debt-to-income test.
Asset-derived income can also supplement income you already document, up to a 45% debt-to-income ratio. When it supplements, the minimum-assets rule is waived. A retiree with a pension and Social Security can often use this combined route.
One timing question is worth asking early: does the lender count your assets before or after the cash to close leaves the account? Practices differ, and it changes which path fits.
Retirement Income You Already Have
Pensions, annuities and Social Security are real income, and lenders may not mark them down just because they are retirement income. Regulation B, the federal fair-lending rule, bars a lender from discounting or excluding income because it comes from an annuity, pension or other retirement benefit. The lender may still weigh how much the income is and how likely it is to continue. The same rule treats age 62 and older as elderly, and age alone is not a legal reason to treat you worse.
Required minimum distributions are another documented stream. Under IRS Publication 590-B, RMDs from traditional IRAs and workplace plans start at age 73 under current rules, and later for younger retirees. A 66-year-old therefore has no mandatory distributions to document. That retiree leans on Social Security, a pension, or the asset-based paths above.
Documented income and asset income are not either-or. Pension and Social Security income can sit alongside depletion income, and the 45% debt-to-income ceiling applies to the combined file.
Where the General Rule Breaks
Early retirees under 59½. On the qualifier path, a 401(k) or IRA counts at 90% until 59½ and 100% after. On the depletion path, retirement accounts count at 70% at any age. Pulling retirement money out just to look like you have income is a separate decision. Tax treatment can depend on how the funds are used and how the property is held; borrowers should keep clear records and speak with a qualified tax professional before relying on any deduction.
Investment property. Only the depletion path covers it, at 65% on a purchase or rate-and-term refinance and 60% on a cash-out. Because an investment-property loan is a business-purpose investor loan, it is reviewed differently from a standard owner-occupied mortgage.
Couples and joint accounts. Accounts combine on the qualifier path. How the lender treats a spouse who is not on the loan, or an account held in only one name, is lender-specific. Ask before you move any money.
Other asset types. Crypto, metals and borrowed funds are not published as eligible. Convert and season them first.
Credit events. A recent foreclosure or short sale needs 4 years of seasoning on the depletion path. Multiple bankruptcies are not eligible. A high balance does not override these.
Loan size. The depletion path starts at $125,000 and tops out at $3,500,000. The qualifier path reaches $4,000,000. Nothing above that is available.
What Changes for a Virginia Borrower
The program figures do not change by state. A retiree buying in Virginia sees the same credit percentages, seasoning and leverage limits as one in any other state Lendmire’s consumer lending covers. Virginia is one of 16 states where that licensing applies.
Local facts affect the choice of path, not the rules. A buyer in Northern Virginia, where purchase prices run higher, may find the qualifier path’s larger loan ceiling and the depletion path’s 1.25-times-the-loan asset minimum matter more. A buyer in Southwest Virginia, where prices are lower, may find the $125,000 depletion floor and a smaller loan make either path easier to meet. These are comparisons of fit, not market statistics.
A retiree with a federal or military pension has a natural fit for the combined route. The documented pension carries part of the debt-to-income test, and the depletion income covers the rest, up to the 45% ceiling. A retiree relocating to Virginia from another state can use the same statements, provided the accounts are in regulated institutions and the funds are seasoned.
Taxes, insurance and local prices are context for budgeting. They are never program parameters.
Document Checklist and Sequence
Gather documents in the order the lender will test them, so you find seasoning problems before they cost you.
1. Two months of statements for every qualifying account on the qualifier path, or statements at least 120 days old plus one within 45 days on the depletion path. 2. A source explanation for any large deposit, plus the documents for any sale-of-business, inheritance or settlement funds. 3. Award letters or statements for pensions, annuities and Social Security, if you want them to supplement the file. 4. A list of any non-eligible holdings you plan to convert, with the conversion date. 5. Credit report review, housing history, and any prior housing event with its date.
The asset-based mortgage programs Lendmire arranges through select lenders are described on the asset-based mortgage program page. Qualification stays subject to lender guidelines, credit approval and property review.
Common Reasons These Files Stall
Most retiree files stall for the same few reasons, and each one is avoidable.
- Funds moved recently and have not seasoned. Money transferred between accounts shortly before application can fail the 60-day or 120-day tests.
- Ineligible assets were counted. Custodial accounts, stock options and non-vested restricted stock units do not qualify on the depletion path.
- Assets fall below the depletion minimums. The requirement is the lesser of $1,000,000 or 1.25 times the loan, and never under $250,000 liquid when assets are the only income source.
- Borrowed or pledged funds sit in the accounts. They are not published as eligible on either path.
- Housing history has a recent late payment. One 30-day late in the past twelve months gets a case-by-case look, and more than that makes approval harder.
- Cash-out proceeds were counted as assets. On the depletion path they never are.
Other Routes Compared
Asset-based mortgages are not the only option. Here is how they sit next to the alternatives, described by each program’s own logic.
| Route | Best for | What it relies on |
|---|---|---|
| Asset qualifier path | Large liquid balances, no income wanted | Assets cover the loan |
| Asset depletion path | Large assets, income-light households | Assets divided by 60 months |
| Full-documentation loan | Retirees with strong pension or Social Security | Documented income and DTI |
| Bank statement program | Self-employed with business deposits | Deposits as income |
A reverse mortgage works in a different way entirely: it draws on home equity and follows its own age and equity rules. A DSCR loan, by contrast, qualifies primarily on property-level rental income covering the payment, subject to lender guidelines. A refinance can follow either asset path, with the leverage limits above.
Frequently Asked Questions
Can I qualify for a mortgage with no job at all?
Yes, on either asset path, subject to underwriting. The qualifier path documents no employment or income, and the depletion path derives income from your assets. The lender does not ask for traditional personal-income documentation, pay stubs or employment verification, but it does review credit, housing history and your account statements.
Does my age affect approval?
Age alone is not a legal basis for a denial, and the fair-lending rule treats age 62 and older as a protected group. What does matter is your age relative to account rules: retirement balances count at 90% under 59½ and 100% after on the qualifier path.
Do I have to sell my investments to qualify?
No. The lender documents your assets with statements and applies the credit percentages or haircuts, and nothing is liquidated to qualify. The only exception is converting an ineligible asset such as crypto into a seasoned cash balance if you want it to count.
Can I use a 401(k) or IRA, and how much of it counts?
Yes, with limits. On the qualifier path a 401(k) or IRA counts at 90% under age 59½ and 100% at 59½ or older. Accounts combine, and the lender’s own calculation governs.
Can I buy a second home or an investment property this way?
A second home is reviewed on either path, alongside a principal residence. An investment property is available only on the depletion path, at up to 65% LTV on a purchase or rate-and-term refinance and 60% on a cash-out. Subject to lender guidelines, credit approval and property review.
Where to Start
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.
Lendmire’s asset-based mortgage in Virginia page presents the program for Virginia borrowers.
About Lendmire
Lendmire (NMLS# 2371349) is a mortgage brokerage serving self-employed and high-net-worth borrowers in 16 states. Bank statement, P&L-only, 1099-only and asset-based mortgages are arranged through wholesale lending channels; Lendmire brokers the financing and the lender underwrites each application. 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. eCFR Regulation B (12 CFR Part 1002)
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 a Georgia Trust Beneficiary Qualify for a Mortgage on Trust Assets? · How Pennsylvania Retirees Downsize on an Asset Qualifier Mortgage · Can a Florida Buyer Qualify for a Mortgage on IRA Assets Without Withdrawals?
Guides: Asset-Based Mortgage in Virginia
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
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.