The Quick Read: A retiree qualifies by showing the lender that savings, brokerage balances and retirement accounts can carry the loan, instead of showing wages. Across the lenders Lendmire works with, that happens one of two ways. Either your eligible assets cover the entire loan outright, or your assets are converted into a monthly qualifying income. Every file is fully underwritten, subject to lender guidelines, and the assets are documented with statements.
- Asset qualifier path: eligible assets must equal or exceed the whole loan, and no employment or income is documented.
- Asset depletion path: usable assets divided by 60 months become income that must carry the housing payment and your other debts.
- What you skip: traditional personal-income documentation, pay stubs and employment verification. You do not skip statements, credit review or an appraisal.
- Leverage: up to 80% on a purchase on the qualifier path, and up to 80% on a purchase of a principal residence or second home on the depletion path, subject to underwriting.
- One path at a time: a borrower is qualified on one path, never a blend of both.
You may have been told that no paycheck means no mortgage. That belief is common among retirees, and it is wrong. Lenders can review a loan on what you own. Here is how that works, step by step.
Which Route Fits You?
Pick the path by looking at how much cash-like money you hold compared with the loan you want. A household with large balances relative to the loan usually fits the qualifier path. A household whose assets sit mostly in a portfolio rather than in cash-like balances often looks at depletion.
| Your situation | Likely path | What the lender weighs |
|---|---|---|
| Balances exceed the whole loan | Asset qualifier | Credit percentages on each account |
| Large portfolio, income is thin | Asset depletion | Assets ÷ 60 months, then debt-to-income |
| Still has a pension or Social Security | Depletion, as a supplement | Documented income plus asset income, up to 45% debt-to-income |
| Income arrives as regular deposits | Bank statement program | Deposits, not assets |
The bank statement program is for borrowers who document income with deposits. It is a different lane, so this article leaves it there.
Path One: When Your Assets Cover the Whole Loan
On the asset qualifier path, your eligible assets, after the credit percentages below, must equal or exceed the entire loan amount. No employment or income is documented. Through select programs, loans run up to $4,000,000, subject to underwriting.
Leverage tops out at 80% loan-to-value on a purchase and 75% on a refinance, for a principal residence or second home. Lenders set whether cash-out proceeds are allowed on this path, so treat that as a question for the file, not a given.
| Asset (qualifier path) | Share that counts |
|---|---|
| Brokerage accounts | 100% |
| Certificates of deposit | 100% |
| Money market and savings | 100% |
| 401(k) and IRA, under age 59½ | 90% |
| 401(k) and IRA, 59½ or older | 100% |
Accounts combine, so three smaller balances can add up to one qualifying total.
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. Credit starts at a 600 minimum score, with housing history of 0x30x12 (one 30-day late in the last twelve months is considered case by case). Reserves are not required at or below 75% loan-to-value. Above that, the lender sets them.
Path Two: When Your Assets Become Income
On the asset depletion path, the lender takes your usable assets and divides them by 60 months. The result is a monthly qualifying income. That income must carry the full housing payment and your other debts through the debt-to-income test, which compares monthly debts to monthly income.
Loans run from $125,000 to $3,500,000. Leverage depends on the property:
- Principal residence or second home: up to 80% on a purchase or rate-and-term refinance, and 60% on a cash-out refinance.
- Investment property: up to 65% on a purchase or rate-and-term refinance, and 60% on a cash-out.
Cash-out proceeds never count as qualifying assets. Figures are ceilings, not offers, and all are subject to underwriting.
| Asset (depletion path) | Share that counts |
|---|---|
| Cash accounts and CDs | 100% |
| Securities | 80% |
| Private stock | 75% |
| Retirement accounts, any age | 70% |
| Real-estate equity | 60% |
Some assets do not count here. Those 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. Cryptocurrency, precious metals, collectibles and borrowed funds are not published as eligible on either path. The documented route is converting them to a seasoned cash balance in a regulated account, with the source reviewed by the lender.
Minimums apply. Qualified assets must be at least the lesser of $1,000,000 or 1.25 times the loan balance. They are never below $250,000 liquid when depletion is your only income. If you also have a pension or Social Security, asset income can supplement it up to a 45% debt-to-income ratio, and the minimum-assets rule is waived.
Statements must be at least 120 days old at application, plus one statement within 45 days. Credit follows the lender’s matrix, and a first-time investor needs a 700 score. A housing event, such as a foreclosure, needs 4 years of seasoning on this path.
Two Worked Examples
These examples use the program’s percentages. The lender’s own calculation governs.
Example one, the qualifier path. Picture a couple in Alabama seeking an $800,000 loan on a purchase of their next home. They hold $330,000 in brokerage accounts, $300,000 in a 401(k) while under 59½, and $200,000 in savings.
- Brokerage at 100%: $330,000.
- 401(k) at 90%: $270,000.
- Savings at 100%: $200,000.
That counts $800,000 of usable assets, which matches the loan. They qualify on assets alone, subject to underwriting. Notice the 401(k) haircut. Waiting until 59½ would have counted that balance at 100%.
Example two, the depletion path. Say you hold $1,500,000 in securities and $300,000 in cash.
- Securities at 80%: $1,200,000.
- Cash at 100%: $300,000.
- Usable total: $1,500,000.
- Divided by 60 months: $25,000 of monthly qualifying income.
That income then has to carry the housing payment and other debts through the debt-to-income test. This is why the borrower’s payment matters on this path. Property taxes and insurance sit inside the payment, and they vary by county. Alabama lake and Gulf Coast homes can carry heavier insurance lines than inland ones. A bigger payment eats the same income faster.
Why the Rules Allow It
Nothing here is a loophole. The federal ability-to-repay rule, found in 12 CFR 1026.43 on eCFR, tells lenders to consider current or reasonably expected income or assets. The rule requires reliable third-party records for whatever the lender relies on. So wages are one acceptable basis, not the only one. The CFPB’s small-entity compliance guide also lists interest, dividends and government benefits as countable income types.
This is a consumer mortgage, so the loan must be fully underwritten. Assets get verified with statements. The review rests on what you actually hold.
Early Retirees, Couples and Second Homes
Early retirees. The two paths treat locked retirement money differently. The qualifier path counts a 401(k) or IRA at 90% under 59½ and 100% after. The depletion path counts retirement accounts at 70% at any age. A 56-year-old with most wealth in an IRA may fit the qualifier path better. A 66-year-old with mostly securities may prefer depletion.
Couples. Accounts combine, but ownership and titling matter. Consider what happens if one spouse’s pension drops after a death. A lender running derived income sees only the assets, which do not shrink that way.
Second homes and relocation. Both paths cover a principal residence or second home. The program is available to Alabama borrowers, and consumer lending is licensed in 16 states in total. If you are moving into Alabama from out of state, check that your target state is on that list.
Investment property. Only the depletion path covers it, and then at lower leverage. Because the loan is business-purpose, it is reviewed differently from a standard owner-occupied mortgage. For a pure rental purchase, a rental-income loan is often the better tool. This article stays with qualifying on assets.
Keep the Portfolio Invested or Sell It?
Selling to pay cash is simple, and it also ends the growth, dividends and flexibility of those holdings. Qualifying on assets leaves the portfolio working. The tradeoff is a mortgage, with its payment and cost. Neither is right for everyone. Honestly, a retiree with a very large balance and no wish to hold debt may pay cash and sleep better.
One more caution. Raising your IRA withdrawals just to show income can backfire. It can push up your taxable income and shrink the balance you were counting on. Tax treatment varies; consult a qualified professional.
Prepare Before You Apply
The best-prepared files are boring. Gather these items in order:
1. Statements for every account you plan to count, with the most recent two months on the qualifier path.
2. A list of which path each account supports, using the percentages above.
3. Proof of ownership and titling for each account.
4. Your credit report and a housing history for the last twelve months.
5. A source-of-funds trail for any large recent deposit.
Then look at the asset-based mortgage program Lendmire arranges through select lenders. The asset-based mortgage program page lays out the structure in more detail.
Mistakes That Stall Approvals
- Moving money right before applying. Seasoning starts over on newly deposited funds. The 60-day qualifier rule is the clock.
- Counting the same dollar twice. Money used for the down payment cannot also be the asset base.
- Assuming every asset counts. Crypto, stock options and non-vested RSUs do not count as published.
- Blending the paths. A borrower is reviewed on one path at a time. Use the right table for the right path.
- Ignoring the payment side. On the depletion path, high taxes and insurance consume derived income.
When This Isn’t the Right Fit
This path is a poor match when your balances are modest. The depletion path wants at least $250,000 liquid as sole income. It is also a poor match if you plan to borrow against retirement assets that are pledged elsewhere, since pledged or borrowed funds are not published as eligible.
Large retail lenders and agency programs run on their own rules, and those may suit a retiree with a steady pension and little else. Compare the full terms. A reverse mortgage is another lane, built for homeowners rather than purchase buyers. It works differently, so compare it separately.
Key Terms Defined
Asset qualifier path: the loan is qualified on assets alone, and the eligible total must cover the entire loan.
Asset depletion path: usable assets divided by 60 months become qualifying monthly income.
Seasoning: the time an asset has to sit in your account before the lender counts it.
Haircut: the share of an asset’s balance that the lender subtracts, so only part counts.
Debt-to-income ratio: your monthly debts divided by your monthly income.
Loan-to-value (LTV): the loan amount divided by the property value.
Frequently Asked Questions
Can a lender deny me because of my age?
No. Age alone is not a qualifying factor, and the review looks at your assets, credit and the property. Every file is still underwritten individually, subject to lender guidelines.
Do I have to sell my investments to qualify?
No. Your accounts stay invested. The lender counts their balances at the percentages for your path, and the statements prove they exist.
Does retirement income help?
Yes, on the depletion path. Documented income such as a pension can combine with asset income up to a 45% debt-to-income ratio. When income supplements, the minimum-assets rule is waived.
What credit score do I need?
The qualifier path starts at a 600 minimum score. The depletion path follows the lender’s matrix, and a first-time investor needs a 700. Neither is a promise of approval.
Can I use crypto or precious metals?
Not directly. They are not published as eligible on either path. Converting them to a seasoned cash balance in a regulated account is the documented route, with the source reviewed by the lender.
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. Call 828-256-2183 or request a quote at Lendmire’s quote page.
Lendmire’s asset-based mortgage in Alabama page presents the program for Alabama borrowers.
About Lendmire
Lendmire — NMLS# 2371349 — is a mortgage broker that arranges bank statement, P&L-only, 1099-only and asset-based home financing in 16 states through wholesale lenders, on primary residences, second homes and investment properties. Every option is subject to the lender’s guidelines and full underwriting. Scotsman Guide named Lendmire a Top Mortgage Workplace in both 2025 and 2026.
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
2. CFPB ATR/QM Small Entity Compliance Guide
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 Qualify for a Mortgage If Your Income Is in a Foreign Currency? · How to Document an Alabama Asset Qualifier Mortgage Without an Employer · Can a Florida Buyer Qualify for a Mortgage on IRA Assets Without Withdrawals?
Guides: Asset-Based Mortgage in Alabama
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
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.