The Quick Read: The right program for a retiree depends on whether your assets should cover the whole loan or be converted into monthly qualifying income, and through select programs in Lendmire’s network a borrower with large balances and modest documented income can be reviewed on either path, subject to underwriting.
- Asset qualifier path: eligible assets must equal or exceed the entire loan, and no employment or income is documented.
- Asset depletion path: usable assets are divided by 60 months into a qualifying income, which then runs through the debt-to-income test.
- Documents: there are no traditional personal-income documentation, pay stubs or employment verification, but every asset is documented with statements and every file is fully underwritten.
- Two hard limits: privately held company stock is not eligible on either path, and cash-out proceeds never count as qualifying assets.
What “Asset-Based” Means for a Retiree
Asset-based means the loan is reviewed on what you own rather than on a paycheck. Retirees often have the opposite profile from what a bank expects. Balances are large, but documented monthly income is small. A conventional file reads that as weak. An asset-based file reads it as a different kind of strength.
The key point is that there are two separate paths. You are qualified on one at a time, and the rules for each do not blend. Lendmire is a mortgage broker, so it does not lend. It places these files with select lenders in its wholesale network, and those lenders underwrite and approve. The network figures below are ceilings and floors, not offers. The lender’s own calculation governs every file.
The programs described here are consumer mortgages on a principal residence or second home. The depletion path also reaches investment property. Consumer lending is available in 16 states, listed in the FAQ.
Key Terms Defined
- Cash-out refinance: a new mortgage larger than the old one, where the difference comes back to you as cash.
- Asset qualifier: a path where eligible assets, after the credit percentages, must equal or exceed the entire loan amount.
- Asset depletion: a path where usable assets divided by 60 months become a monthly qualifying income.
- Haircut: the share of an account’s balance a lender refuses to count, because the balance can fall or is hard to reach.
- Seasoning: how long funds have sat in your account before the lender will count them.
- Debt-to-income (DTI): your monthly debts, including the new housing payment, compared with your qualifying income.
How Underwriting Treats Each Path, Step by Step
Each path asks a different question. The qualifier path asks whether your assets could repay the whole loan. The depletion path asks whether your assets, spread over 60 months, produce enough income to carry the payment.
The asset qualifier path
1. Pick the loan size. Leverage runs up to 80% loan-to-value on a purchase and up to 75% on a refinance, on a principal residence or second home. Loans go up to $4,000,000, subject to underwriting.
2. Count your assets. Brokerage, certificates of deposit, money market and savings count at 100%. Retirement accounts count at 90% if you are under 59½ and 100% at 59½ or older. Accounts combine.
3. Compare the total to the loan. Usable assets must equal or exceed the entire loan amount.
4. Season the funds. The lender wants 60 days of seasoning and two months of statements for each qualifying account.
5. Check credit. The published floor is a 600 score, with housing history of 0x30x12. One 30-day late payment in the last twelve months is considered case by case.
Here is the shape of the math, and the lender’s own calculation governs. Say the loan is $800,000. You hold $330,000 in brokerage accounts, which counts at 100% for $330,000. You hold $300,000 in a 401(k) and are under 59½, so it counts at 90% for $270,000. You hold $200,000 in savings, which counts at 100% for $200,000. Together that is $800,000 of usable assets, and the file is reviewed on assets alone.
One important gap: whether cash-out proceeds are allowed on this path, and at what leverage, is set by the lender and is not published. Ask for it in the first conversation rather than assuming.
The asset depletion path
1. Count your assets after haircuts. Cash accounts and certificates of deposit count at 100%. Securities count at 80%. Retirement accounts count at 70% at any age. Real-estate equity counts at 60%.
2. Divide by 60. Usable assets divided by 60 months give the monthly qualifying income.
3. Run the DTI test. That derived income must carry the full housing payment and other debts.
4. Check the minimum assets. Qualified assets must be at least the lesser of $1,000,000 or 1.25 times the loan balance. They must never fall below $250,000 liquid when depletion is your only income source.
5. Check statements. Statements must be at least 120 days old at application, plus the most recent one within 45 days. Funds from a business sale, inheritance or legal settlement are excused from that seasoning.
The shape of the math here: $1,500,000 in securities counts at 80%, which is $1,200,000. Add $300,000 in cash at 100%, and the total is $1,500,000 of usable assets. Divided by 60 months, that is $25,000 of monthly qualifying income. That income then carries the housing payment and other debts through the DTI test.
- Principal residence or second home: up to 80% on a purchase or rate-and-term refinance, and up to 60% on a cash-out refinance.
- Investment property: up to 65% on a purchase or rate-and-term refinance, and up to 60% on a cash-out refinance.
Loan amounts run from $125,000 to $3,500,000. Credit follows the lender’s matrix. A first-time investor on this path needs a 700 score. A housing event such as a foreclosure needs four years of seasoning.
The depletion path can also supplement documented income. If you have Social Security or a pension, asset-derived income can add to it, up to a 45% DTI. When it supplements, the minimum-assets rule is waived. That matters for many retirees, because a modest pension plus a portfolio is common.
Which Path Fits Which Retiree?
The path that fits is the one your balance sheet supports. There is no universal winner, which is why the best program for your situation comes down to which path your numbers clear.
| Your profile | Likely path | Why |
|---|---|---|
| Savings and brokerage cover the whole loan | Asset qualifier | No income documented at all |
| Large portfolio, loan bigger than liquid cash | Asset depletion | Assets become income over 60 months |
| Small pension plus large portfolio | Depletion, supplementing income | Derived income adds up to 45% DTI |
| Business sale or inheritance in cash | Either, after review | Those funds are excused from depletion seasoning |
| Wealth mostly in private company stock | Neither, until converted | Private stock is not eligible on either path |
The qualifier path fits a borrower who wants the cleanest file and does not need much cash-out leverage. The depletion path fits a borrower who wants cash back, because its cash-out leverage is published at 60%. The tradeoff is that the depletion path counts less of each account and requires a minimum asset base.
Lendmire’s asset-based mortgage programs are built for this cash-heavy, income-light profile. That includes retirees, sellers of a business, inheritance recipients and households living on a portfolio.
Which Assets Count, and What Does Not
The haircuts differ by path, so never read one column against the other path’s rules.
| Asset | Qualifier path | Depletion path |
|---|---|---|
| Cash, savings, money market | 100% | 100% |
| Certificates of deposit | 100% | 100% |
| Brokerage and securities | 100% | 80% |
| Retirement accounts | 90% under 59½, 100% at 59½+ | 70% at any age |
| Real-estate equity | Not listed | 60% |
On the depletion path, these are also not eligible: 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, business accounts beyond your ownership share, and pledged or 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.
Cash-out proceeds from the new loan never count as qualifying assets. You cannot borrow the cash and then use it to qualify.
A founder’s route is the same. Convert shares through a sale or buyout, season the proceeds as cash, and then qualify with cash, public securities and retirement accounts at their haircuts.
Why Retirees Often Mix Up These Programs
Many retirees expect Social Security or a pension to be the deciding factor. On these programs it is not the main test. The qualifier path documents no income. The depletion path builds income from assets, and documented income can supplement it.
A second mix-up is with rental-property loans. A business-purpose rental loan is reviewed primarily on property-level rental income covering the payment, subject to lender guidelines. That is a different product. It does not look at your portfolio the way asset-based programs do. A bank statement loan is different again. It serves borrowers who document income through deposits.
Other mix-ups are common too. Some borrowers assume retirement accounts count at full value on every path, which is not true on the depletion path. Others assume a portfolio held in a trust or a business needs no review, when the lender still checks ownership and source.
The Fixed-Income Safety Test
Qualifying and being comfortable are two different questions. The lender checks whether the file works. You should check whether your life works with the new loan.
Run these four checks before you apply:
1. Payment share. Ask what portion of your reliable monthly income the new housing payment would take. Use pension, Social Security and planned withdrawals, not hoped-for portfolio gains.
2. Cash-out purpose. Know exactly what the cash is for. Home repairs, accessibility changes or debt payoff are concrete. A vague cushion is harder to justify against a larger payment.
3. Market drop. Picture your portfolio down sharply. On the depletion path, the assets that qualified you may be worth less later. Ask whether you can still carry the payment.
4. Exit. Decide how you would sell or refinance again if your needs change. Some programs carry restrictions in the early years, so ask about them.
Non-QM and asset-based loans generally cost more than standard mortgages, because they offer flexibility the standard programs do not. The loan proceeds themselves are not income. 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.
Where the General Rule Breaks: Named Edge Cases
Privately held stock. It is not an eligible asset on either path. Convert it to a seasoned cash balance first.
Paid-off home. A new first lien on a home with no mortgage is still a cash-out refinance. The cash-out leverage limits apply.
Investment property. Investment property is only available on the depletion path, where the loan is business-purpose. Federal rules treat credit to acquire, improve or maintain a rental property that is not owner-occupied as business purpose, per CFPB Regulation Z. The line is not always bright. If you expect to occupy the property for more than 14 days in the coming year, a different analysis can apply, per Doss Law’s summary of the rule.
State rules. Business purpose does not mean exempt from all regulation. Some states license lenders on residential real property regardless of purpose, as the law-firm publication Hunton explains. This matters most if the property is a home you live in.
Shared ownership. If a spouse, co-owner or trust is involved, each person’s accounts and ownership share need to be documented. Business accounts count only to your ownership share.
Housing history. Multiple bankruptcies are not eligible.
A practitioner note from daily file work: the files that stall are rarely the ones with weak assets. They are the ones with a large recent deposit nobody can explain. If money moved between accounts, keep the trail clear before you apply. Lenders review the source of every large deposit, and a clean paper trail prevents an avoidable back-and-forth.
How Does This Compare With Your Other Options?
Asset-based is one tool. These other tools may fit better, depending on what you need.
| Option | Fits when | Retiree watch-out |
|---|---|---|
| HELOC | You want flexible access to equity | Terms and limits are set by the lender |
| Reverse mortgage | You want no required monthly payment | A different product, with its own rules |
| Selling investments | You need cash and have gains to spare | May trigger taxes and shrink the portfolio |
| Bank statement loan | You document income through deposits | Needs a deposit history, not just assets |
| Conventional cash-out | You have pension and documented income | Income must be shown to continue |
Who Should Skip This
Skip it if your wealth is mostly in assets the program does not count. Skip it if the new payment would crowd out your basic monthly spending. And skip it if you cannot explain why you need the cash.
Be careful with anyone who promises a loan with no review. Every file here is fully underwritten, and assets are documented with statements. A lender or broker who promises approval before looking at your statements is not describing a real program.
How a Broker Finds the Right Fit
Lendmire works with a multi-state network of wholesale cash-out refinance lenders. It does not list or rank them, and it does not lend. Guidelines differ across that network. Credit matrices, asset treatment and cash-out limits all vary.
A broker compares your statements, credit, property and leverage need against those guidelines and matches the scenario to a program. Which lenders are a fit depends on your situation. The best program for you depends on property type, credit profile, leverage and documentation.
What to prepare:
- Two months of statements for each account on the qualifier path.
- Statements at least 120 days old, plus one within 45 days, on the depletion path.
- A clear source for any large deposit.
- A picture of what you want the cash to do.
Frequently Asked Questions
Does privately held company stock count as an asset?
No. Privately held company stock is not an eligible asset on either path. If you hold a stake in a closely held business, the route is a sale or buyout converted into a seasoned cash balance. After that, cash, public securities and retirement accounts count at their normal percentages.
Can I get cash out on the asset qualifier path?
Whether cash-out proceeds are allowed on that path, and at what leverage, is set by the lender and is not published. The depletion path publishes a 60% cash-out ceiling on a principal residence, second home or investment property. Ask which path fits before you commit to a plan. Each figure is subject to lender guidelines and a complete review of property type, leverage, and credit.
Does this mean no documents?
No. There are no traditional personal-income documentation, pay stubs or employment verification. The assets, credit, property and source of funds are all documented and reviewed. Every file is fully underwritten, and consumer mortgage disclosures apply to these loans.
Where is the asset-based program available?
Consumer mortgage lending is available in 16 states: Alabama, California, Colorado, Florida, Georgia, Indiana, Michigan, Montana, New Mexico, North Carolina, Ohio, Pennsylvania, Tennessee, Texas, Virginia and Washington. All terms are subject to underwriting, and the program is offered through select lenders.
Can my pension or Social Security help?
Yes, on the depletion path. Asset-derived income can supplement documented income up to a 45% DTI, and the minimum-assets rule is waived when it does. The qualifier path does not document income at all.
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. Reach the team at 828-256-2183 or request a quote through Lendmire’s quote page.
Investors weighing their equity options can start with Lendmire’s guide to cash-out refinance on an investment property.
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.
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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. Doss Law: Business Purpose Exemption
3. Hunton: Beware of Business Purpose
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 Cash Out a Texas Home on an Asset Depletion Refinance? · Can You Get a Texas Asset-Based Mortgage With No Job? · Can You Get a Pennsylvania Asset-Based Mortgage With No Job?
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
- Mortgage Loan Originator · NMLS# 1129696 · Verify on NMLS Consumer Access
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- North Carolina Insurance Producer · License# 19053198 · Property, Casualty, Life, Health · Verify on NAIC SBS
- Lendmire LLC · Firm NMLS# 2371349 · Verify firm licensure
Disclosure information. Lendmire is a state-licensed mortgage brokerage under NMLS# 2371349. Lendmire is not a depository institution, direct lender, or financial advisor — all loans referenced are placed through wholesale lender partners and are subject to each lender's underwriting standards. This article is provided for general informational purposes and is not a commitment to lend, nor does it constitute financial, legal, or tax advice. Loan programs, terms, rates, and qualification standards change without notice and depend on borrower profile, property type, and the state in which the subject property is located. Equal Housing Opportunity provider. NMLS Consumer Access: nmlsconsumeraccess.org.