The Quick Read: It depends on which path you use: on the asset qualifier path, your eligible assets must equal or exceed the entire loan amount, while on the asset depletion path you need qualified assets of at least the lesser of $1,000,000 or 1.25 times the loan, and never less than $250,000 liquid when assets are your only income. Both paths are subject to underwriting, and the figures are ceilings and floors, not offers. Neither path asks for traditional personal-income documentation, pay stubs or employment verification, but the assets themselves are documented with statements.
- Asset qualifier path: usable assets must cover the whole loan, with leverage up to 80% on a purchase and 75% on a refinance, through select programs.
- Asset depletion path: usable assets divided by 60 months become qualifying income, and that income has to carry the housing payment and other debts.
- Retirement money is discounted: 401(k) and IRA balances count at 90% under age 59½ and 100% after on the qualifier path, but at 70% at any age on the depletion path.
- Statements matter: the accounts must be seasoned, which means they have to sit in your name for a set period before the lender counts them.
- Program figures are the same in every state: an Alabama borrower faces the same asset math as anyone else, although taxes and insurance vary by county. Each figure is subject to lender guidelines and a complete review of property type, leverage, and credit.
Can an Alabama Retiree Really Buy a Home With No Income?
Yes, if your balance sheet is strong. Many retirees hold large balances but show little taxable income, because they live off savings and investments. A conventional lender looks at that and sees a thin paycheck record. An asset-based lender looks at the same file and sees a borrower with plenty of money to repay.
Here is the plain version. An asset-based mortgage is reviewed around what you own instead of what you earn. You still go through full underwriting. You still show credit, the property is still appraised, and the lender still reviews every account. What you skip is the employment and income paperwork: no traditional personal-income documentation, pay stubs or employment verification.
Lendmire is a mortgage broker. It places these loans through select lenders in its wholesale network and does not lend or approve them itself. Consumer mortgage lending through the brokerage is licensed in 16 states, and Alabama is one of them. If you are weighing asset-based mortgage programs, the first decision is the path, because the path sets how much you need.
This article is aimed at retirees in or moving to Alabama. That might mean downsizing, buying near the coast or a lake, or relocating closer to family. The loan rules do not change with the setting. Local costs do, so budget for them separately.
The Two Ways Assets Can Qualify You
Across the wholesale network, asset-based loans fall into two families. A borrower is qualified on one path at a time, never a blend of the two. The table shows the structural difference.
| Factor | Asset qualifier | Asset depletion |
|---|---|---|
| How assets are used | Must cover the entire loan | Divided by 60 months into income |
| Income documented | None | Derived income runs through the debt-to-income ratio |
| Purchase leverage | Up to 80% | Up to 80% primary or second home |
| Loan amounts | Up to $4,000,000 | $125,000 to $3,500,000 |
| Credit | 600 minimum score | Lender’s matrix |
| Best fit | Very large balances | Solid balances, moderate loan |
The asset qualifier path is the cleaner idea. If your eligible assets, after the credit percentages, add up to at least the loan amount, the loan rests on those assets alone. No income is documented, and the lender’s review of your ability to repay rests on the balances.
The asset depletion path works like a pension calculation. The lender totals usable assets, divides by 60 months, and treats the result as monthly income. Then it runs the housing payment and your other debts against that income through the debt-to-income test, which compares monthly debts to monthly income. Debt-to-income is shortened to DTI from here on.
Which path fits you? A retiree with a $1,500,000 portfolio buying a home that needs an $800,000 loan may land on the qualifier path. A retiree whose portfolio is large but smaller than the loan will usually need the depletion path, because there the assets only have to produce enough income, not cover the debt.
How Much Do You Actually Need?
There is no single number. The need scales with the loan, and the answer changes by path. Here is how it breaks down on each.
Asset qualifier path. Your usable assets must equal or exceed the whole loan. If the loan is $800,000, you need $800,000 of usable assets after the credit percentages in the next section. You also need cash for the down payment and closing costs, and whether those funds can come from the same accounts depends on the lender’s own calculation. Reserves are another piece. On this path, none are required at or below 75% loan-to-value, which is the loan balance as a share of the property’s value. Above that, the lender sets them.
Asset depletion path. 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. No reserve months are published for this path, but the lender’s file review still looks at what remains after closing.
The depletion math is easy to follow. Say you hold $1,500,000 in securities, which count at 80% for $1,200,000, plus $300,000 in cash at 100%. That is $1,500,000 usable. Divide by 60 months and you get $25,000 of monthly qualifying income. That income then has to carry the housing payment and every other monthly debt through the DTI test. The lender’s own calculation governs, and this example is illustrative only.
One more option helps some retirees. Asset-derived income may supplement documented income, such as Social Security or a pension, up to a 45% DTI. When it supplements, the minimum-assets rule is waived. If you have some documented retirement income, ask about this structure.
What Counts as an Asset, and How Much of It Counts
Balances are not all valued equally. A lender counts a share of each account, and the share depends on the path. The qualifier path is more generous. The depletion path is stricter, because the assets are being turned into income. Here is the qualifier path first.
| Account type | Share counted (qualifier path) |
|---|---|
| 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, so you can add them together toward the loan amount. Here is the qualifier example in full: an $800,000 loan, $330,000 in brokerage accounts at 100%, $300,000 in a 401(k) under 59½ at 90% for $270,000, and $200,000 in savings at 100%. That counts $800,000 of usable assets and is reviewed on assets alone, subject to underwriting.
The depletion path uses haircuts. A haircut is the share of a balance the lender subtracts because it is not fully cash-like.
| Account type | Share counted (depletion path) |
|---|---|
| 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: 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 cryptocurrency, precious metals, collectibles, or borrowed funds? Neither path publishes them as eligible. The documented route is to convert them to cash in a regulated account and season that balance, with the lender reviewing the source. Do not plan around them counting at a percentage.
The retirement discount matters most for retirees. A $1,000,000 IRA is not $1,000,000 of buying power on the depletion path. On the qualifier path it counts at 90% before age 59½ and 100% after. On the depletion path it counts at 70% at any age. Cash-out proceeds from a refinance never count as qualifying assets on the depletion path.
Do You Have to Sell Your Investments?
No. The lender counts the balance and does not require you to sell it. You keep the portfolio invested, and it stays in your name. What changes is that a documented portion has to be available and seasoned, and you should be comfortable that the lender’s file shows it clearly.
Picture two retirees buying similar homes, each with a $2,000,000 portfolio. One pays all cash and sells most of the portfolio to do it. The other borrows against the asset-based program and leaves the portfolio intact. After closing, the second retiree still holds the investments and carries a mortgage. The first holds a house and a small portfolio. Neither choice is wrong, and the right one depends on market risk, tax situation and how much liquidity you want after you move in. Tax treatment varies; consult a qualified professional.
A cash-heavy retiree sometimes does not need a loan at all. The loan makes sense when you want to keep money working, keep a cushion for health costs, or avoid selling positions at a bad moment. A broker can lay both versions side by side before you commit.
Leverage and Loan Size, Path by Path
Leverage is how much of the home’s value the loan can cover. Figures here are program ceilings subject to underwriting, and the appraisal can reduce them.
On the asset qualifier path, leverage runs up to 80% on a purchase and 75% on a refinance of a principal residence or second home. Whether cash-out proceeds are allowed on this path is set by the lender and is not published, so plan only on a purchase or a refinance without cash out.
On the asset depletion path, a principal residence or second home can go up to 80% on a purchase or rate-and-term refinance and 60% on a cash-out refinance. An investment property is lower: up to 65% on a purchase or rate-and-term refinance and 60% on a cash-out. Note that depletion is the path that can finance a rental at all. Business-purpose rental financing otherwise runs through DSCR loans, which qualify the property’s rent against its payment instead of qualifying you.
Credit also matters. The qualifier path has a 600 minimum score. The depletion path follows the lender’s matrix for score and loan amount. A first-time investor on the depletion path needs 700. Housing history is reviewed at 0x30x12, meaning no 30-day lates in the last twelve months, and one late can be considered case by case. Multiple bankruptcies are not eligible, and a housing event such as a foreclosure needs 4 years of seasoning on the depletion path.
Seasoning and Documents Lenders Ask For
Seasoning is the waiting period before an account counts. On the asset qualifier path, funds need 60 days of seasoning and two months of statements for each qualifying account. On the asset depletion path, statements must be at least 120 days old at application, plus the most recent statement within 45 days. Funds from the sale of a business, an inheritance, or a legal settlement are excused from that seasoning.
A typical file includes:
- Statements for each checking, savings, brokerage, CD and retirement account counted.
- Documentation of the source of any large recent deposit.
- Credit authorization and housing history.
- The purchase contract and, later, the appraisal.
- Proof that a retirement account is accessible, since the lender wants to see the balance as real and available.
Large unexplained deposits can slow a file down. Move money between your own accounts well before you apply, and keep a paper trail. A transfer from one of your accounts to another is easy to explain. A deposit from a relative is not.
Why Lenders Check the Assets So Closely
This part is regulation, kept short. A consumer mortgage lender has to make a reasonable, good-faith decision that you can repay, and it has to verify the income or assets it relies on using third-party records. The eCFR text of the ability-to-repay rule says this directly.
The practical point is that the rule allows lenders to rely on assets, income, or both. Per the CFPB’s rule and commentary, a lender may base its repayment determination on assets other than the dwelling itself. The same commentary says your own statement that you can repay is not enough to show the lender’s decision was reasonable. That is why the statements and seasoning requirements exist. A retiree with real assets benefits from the rule, because assets are a recognized basis for qualifying.
For contrast, conventional agency loans require documented income, which for a retiree usually means Social Security, pension or distribution income. That requirement is the main reason asset-based lending exists. The loan is a consumer mortgage, so standard consumer disclosures apply.
What If the Numbers Don’t Work?
Sometimes assets fall short of one path but suit another approach. The table sorts the common alternatives by when each fits. Terms for each come from its own provider, not from this program.
| Option | Fits when |
|---|---|
| Asset depletion path | Balances are strong but below the full loan |
| Mixed income plus assets | You have Social Security or a pension too |
| Smaller loan or larger down payment | Assets miss the minimum by a modest margin |
| Paying cash | You want no debt and keep ample liquidity |
| Securities-backed credit line | You want to borrow without selling positions |
| Reverse mortgage for purchase | You want no monthly mortgage payment |
A few lenders in the network are stricter than others on retirement accounts and on how recent statements must be. If one program does not fit your file, a comparison across several programs may. That is the main advantage of using a broker over a single lender.
Mistakes That Sink Retiree Files
Counting a retirement account at full value. The percentage depends on the path and sometimes your age. Run the discounted number first.
Assuming no income documentation means no documentation. The assets are documented in detail. Expect to hand over every statement page.
Mixing the two paths. The qualifier path and the depletion path have different percentages and different tests. A file is judged on one at a time.
Forgetting post-closing cash. Even where no reserve months are published, a file that leaves you with almost nothing liquid after closing draws questions. Keep a cushion for repairs, insurance and medical costs.
Letting an appraisal surprise you. If the appraised value comes in low, leverage limits can shrink the loan even when your assets are ample.
Ignoring state and local costs. Taxes and insurance vary by county, and they affect the monthly carry. Ask for local figures before you fall in love with a house.
Key Terms Defined
Asset qualifier: a path where eligible assets must equal or exceed the entire loan, so no income is documented.
Asset depletion: a path where usable assets divided by 60 months become monthly qualifying income.
Haircut: the portion of an account balance a lender does not count.
DTI (debt-to-income): monthly debts divided by monthly income, used to test whether you can carry the payment.
Seasoning: the period funds must sit in your account before a lender counts them.
Loan-to-value (LTV): the loan balance as a percentage of the property’s value.
Frequently Asked Questions
Is there a single asset minimum for an Alabama retiree?
No. On the asset qualifier path, usable assets have to equal or exceed the whole loan. On the asset depletion path, qualified assets must be at least the lesser of $1,000,000 or 1.25 times the loan balance, and never below $250,000 liquid when assets are your only income. Both are subject to underwriting.
Do I need traditional personal-income documentation or pay stubs?
No traditional income documentation, pay stubs or employment verification are required on either path. The assets are fully documented with statements, and the file is underwritten like any consumer mortgage. Credit, the property and the appraisal all still matter.
Do my IRA and 401(k) count?
Yes, at a discount. On the qualifier path they count at 90% under age 59½ and 100% at 59½ or older. On the depletion path they count at 70% at any age. A lender may also want to see that the funds are accessible.
Can I buy a second home or an investment property this way?
A second home is reviewed on both paths. An investment property is available only on the asset depletion path, at up to 65% on a purchase or rate-and-term refinance and 60% on a cash-out, subject to underwriting. Business-purpose rental financing can also run through DSCR loans, which qualify the property’s rent instead of your assets.
Do I have to sell my investments to close?
No. The lender counts the balances, and you keep them invested. You do need documented, seasoned statements, and cash-out proceeds from a refinance never count as qualifying assets on the depletion path.
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. Whatever the state, the first step is a statement-by-statement count of what is truly usable.
Lendmire’s asset-based mortgage in Alabama page presents the program for Alabama 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 tax returns, 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.
Investors who want the broader program framework can review how DSCR loans work.
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References
2. CFPB Regulation Z §1026.43 and commentary
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 You Buy a Second Home in Georgia on Assets Instead of Income? · Can You Relocate to Tennessee and Buy a Home on Assets Before You Have Local Income? · How Much Does a Retiring Physician Need in Assets to Qualify for a Mortgage?
Guides: Asset-Based Mortgage in Alabama
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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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.