The Quick Read: The best program for a retired couple depends on what they own, but for a couple living on savings, the route is usually asset depletion. That path turns eligible account balances into monthly qualifying income, and through select programs it allows a cash-out refinance with no traditional personal-income documentation, pay stubs or employment verification, subject to underwriting.
- The loan is still fully underwritten. The assets are documented with statements, and credit is reviewed.
- Asset depletion divides usable assets by 60 months to create qualifying income. That income then runs through a debt-to-income test.
- Through select programs, cash-out leverage on the asset depletion path tops out at 60% loan-to-value, whether the property is a principal residence, second home or investment property.
- Cash-out proceeds never count as qualifying assets.
- A rental the couple owns may fit a rent-based investor loan better than an asset-based one.
Key Terms Defined
Asset qualifier path: A program track where eligible assets must equal or exceed the entire loan amount, so no income is documented.
Asset depletion path: A program track that converts eligible assets, after haircuts, into monthly qualifying income by dividing by 60 months.
Haircut: The share of an account balance a lender discounts because the asset could lose value or carry penalties to access.
Debt-to-income ratio (DTI): Monthly debts, including the new housing payment, divided by monthly qualifying income.
Seasoning: The length of time money must sit in an account, with statements to prove it, before a lender counts it.
Cash-out refinance: A new, larger loan that pays off the old one and hands the difference to the borrower.
Business-purpose loan: A loan made for a rental or other investment property rather than for a home the borrower lives in.
What Does “Asset-Based” Mean for a Retired Couple?
The phrase covers two different tools, and mixing them up leads couples to the wrong program.
The first is asset-based qualification on the borrower. The couple’s account balances stand in for a paycheck. That is the focus of this article, and it is what Lendmire arranges through asset-based mortgage programs placed with select lenders in its wholesale network.
The second is property-based qualification. If the couple is refinancing a rental, the rent can carry the loan, and that is the investor-loan world. This is a different product with its own rules. Later sections cover when it beats the asset route.
Retired households fit this program well. Balances are large, documented income is small, and a traditional underwriter sees a problem that is really just a different shape of wealth.
How Does Underwriting Treat a Couple With No Paycheck?
An underwriter does not need a job. The underwriter needs a reason to believe the loan will be repaid, and large, seasoned, documented assets supply that reason.
Here is how a file moves, step by step:
1. Pick the path. A borrower is qualified on one path at a time. The two paths never blend.
2. List eligible assets. Each account type counts at a set percentage.
3. Season the money. Statements prove the funds were there, not moved in last week.
4. Run the math. The qualifier path compares usable assets to the whole loan. The depletion path converts usable assets to income and tests DTI.
5. Review credit and the property. An appraisal sets value, and the credit file is reviewed under the lender’s matrix.
6. Underwrite the whole file. Nothing here is a shortcut around underwriting. The file is smaller on income paperwork and heavier on statements.
Lendmire is a broker. It matches the scenario to a program, and a wholesale lender underwrites and decides. For a consumer loan on a home, TRID disclosures apply as they would on any consumer mortgage.
Two Paths Compared
| Factor | Asset qualifier | Asset depletion |
|---|---|---|
| How it qualifies | Usable assets cover the whole loan | Usable assets ÷ 60 months = income |
| Income documented | None | Derived from assets, tested by DTI |
| Cash-out | Set by the lender, not published | Allowed, up to 60% LTV |
| Loan amounts | Up to $4,000,000 | $125,000 to $3,500,000 |
| Credit | 600 minimum score | The lender’s score and loan-amount matrix |
| Seasoning | 60 days, two months of statements per account | Statements 120 days old plus one within 45 days |
All figures are program ceilings and floors through select programs, subject to underwriting. They are not offers.
On the qualifier path, a refinance goes up to 75% loan-to-value on a principal residence or second home. The lender sets whether cash-out proceeds are allowed there and at what leverage, and that detail is not published. Ask for it by name before assuming it.
The depletion path is the one that publishes cash-out terms. On a principal residence or second home, it allows up to 80% on a purchase or rate-and-term refinance and 60% on a cash-out refinance.
Which Assets Count, and for How Much?
Each account type counts at a share of its balance, and the shares differ by path.
| Asset | Qualifier path | Depletion path |
|---|---|---|
| Brokerage / securities | 100% | 80% |
| Cash, savings, money market | 100% | 100% |
| Certificates of deposit | 100% | 100% |
| 401(k) / IRA | 90% under 59½, 100% at 59½+ | 70% at any age |
| Real-estate equity | Not listed | 60% |
Some assets never count on the depletion path. These 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.
Privately held company stock is not an eligible asset on either path. A founder or shareholder qualifies by documenting liquid assets instead. That means seasoned proceeds from a sale or buyout, cash, public securities and retirement accounts at their counted shares.
Cryptocurrency, precious metals, collectibles and pledged or borrowed funds are also 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.
What Does the Math Look Like for a Couple?
These examples are illustrative only, and the lender’s own calculation governs.
Qualifier path. Say a couple wants an $800,000 loan on the asset qualifier path. They hold $330,000 in brokerage accounts, which counts at 100%, or $330,000. They hold $300,000 in a 401(k) while under 59½, which counts at 90%, or $270,000. They hold $200,000 in savings, which counts at 100%, or $200,000. That totals $800,000 of usable assets, which matches the loan. They qualify on assets alone, with no income documented.
Depletion path. Say a couple holds $1,500,000 in securities, which counts at 80%, or $1,200,000. They also hold $300,000 in cash, which counts at 100%, or $300,000. That is $1,500,000 usable, and dividing it by 60 months gives $25,000 of monthly qualifying income. That income must then carry the new housing payment and other debts through the debt-to-income test.
This difference matters for cash-out. On the depletion path, the couple’s assets create income, but the loan is still capped at 60% of the home’s value on a cash-out. If they want more cash, the leverage cap is the limit, not their wealth.
How Do Minimums and Pensions Fit In?
The depletion path asks for qualified assets of at least the lesser of $1,000,000 or 1.25 times the loan balance. When asset depletion is the only income source, it also requires that no less than $250,000 of those assets be liquid.
Social Security or a pension changes the picture. Asset-derived income may supplement documented income up to a 45% debt-to-income ratio. When it supplements, the minimum-assets rule is waived. A couple with modest pension income and mid-sized accounts may do better mixing the two than leaning on assets alone.
Does Cash-Out Work Differently With Assets?
Yes, in three ways.
- Leverage is lower. The depletion path allows 80% loan-to-value on a rate-and-term refinance of a principal residence but only 60% on a cash-out.
- The cash does not count. A couple cannot pull cash out and then count it to qualify for the same loan.
- Source matters. Money that came from a borrowed or pledged source is not published as eligible, so do not park borrowed funds in an account to build the balance.
A couple who plans to keep investments invested while borrowing against the house often finds this structure appealing. It protects the portfolio from forced sales. The cost is a bigger monthly obligation, which a household without paychecks has to carry from its accounts.
What Changes When Two Spouses Own the Accounts?
Ownership details decide what the lender can use. Review these before applying:
- Whose name is on each statement. Joint accounts are the simplest. An account in one spouse’s name may need that spouse on the loan, and lenders differ on this.
- Age 59½ on the qualifier path. The 90% versus 100% retirement credit turns on age. Where one spouse is younger, the lender decides which spouse’s age governs that account.
- Accounts combine. On the qualifier path, balances across accounts add together toward the loan amount.
- Survivor planning. If one spouse dies, a joint account may pass directly, but an individual retirement account follows its beneficiary form. Before moving money, ask how the change affects both the file and the estate.
Where Does the General Rule Break?
The home they live in. A cash-out on a principal residence is a consumer mortgage. Asset-based programs treat it that way, with a 60% cash-out ceiling on the depletion path. Terms depend on the lender’s guidelines, the property type, the leverage, and a full review of the credit profile.
A rental they own. The loan on a rental can be a business-purpose loan. Under CFPB Regulation Z §1026.3, credit to acquire, improve or maintain non-owner-occupied rental property is deemed business purpose, unless the owner expects to occupy it more than 14 days in the coming year. Doss Law’s practitioner summary describes the same rule. Business-purpose does not mean unregulated, as Hunton’s legal analysis notes, because some states still license these lenders.
For a rental, the depletion path does allow an investment property at up to 60% loan-to-value on a cash-out. Still, a rent-based investor loan is reviewed primarily on property-level rental income covering the payment, subject to lender guidelines, and avoids counting down the couple’s accounts. If the rent comfortably covers the new, larger payment, that route may fit better. If the rent is thin, assets can fill the gap.
A rental they live in. A duplex where the couple occupies one unit follows different rules, so talk through the occupancy first. Whether the loan counts as business purpose can turn on the number of units and on whether the credit is used to acquire, or to improve or maintain, the property. The lender and counsel should confirm how the Regulation Z rule applies to that building.
A first-time investor. On the depletion path, a first-time investor needs a 700 credit score. A housing event such as a foreclosure needs four years of seasoning. Multiple bankruptcies are not eligible. All of this is subject to underwriting. Final terms depend on the lender’s guidelines, the property type, and the borrower’s complete credit picture.
Credit. The qualifier path publishes a 600 minimum score. The depletion path follows the lender’s matrix. Housing history is reviewed at 0x30x12, with one 30-day late in the last twelve months considered case by case.
Which Route Fits Which Couple?
| Couple’s situation | Likely fit |
|---|---|
| Large liquid balances that exceed the loan | Asset qualifier |
| Large balances, loan larger than usable assets | Asset depletion |
| Pension or Social Security plus mid-sized accounts | Depletion, supplementing documented income |
| Rental with rent that clearly covers the new payment | Rent-based investor loan |
| Wealth mostly in a closely held company | Convert to cash first, then qualify |
The best program for your situation also depends on the property, credit profile, leverage need and how the accounts are titled. A broker who shops several wholesale lenders can match the file to the program whose overlays fit it.
When Should a Couple Not Do This?
Do not do it when the new payment depends on a portfolio that could shrink. A cash-out raises the monthly obligation, and a market drop reduces the very assets that qualify the loan. Do not do it if the cash is for something the household cannot afford to see go wrong.
Size the cash-out conservatively. Plan for a vacancy on a rental during a stretch with no wage income. Keep a cushion that sits outside the qualifying accounts.
How Does It Compare to the Alternatives?
| Option | How it works | Watch-out |
|---|---|---|
| Asset-based cash-out refinance | New first loan, qualified on assets | Higher monthly obligation |
| Home equity line | Second loan against the home | Lender income rules vary by product |
| Reverse mortgage | Borrow against home equity with no monthly payment | Balance grows, affecting heirs |
| Selling investments | Raise cash without new debt | Can trigger taxes and shrink the portfolio |
| Downsizing | Sell and move to a smaller home | Gives up the current house |
Each product follows its own rules, not this program’s. Tax treatment varies; consult a qualified professional.
What Should Be Ready Before Applying?
- Statements for every qualifying account, in line with the seasoning period for the chosen path.
- Photo ID and the current mortgage statement with payoff.
- Proof of any pension, annuity or Social Security if supplementing income.
- Documentation for any large deposit, such as proceeds from a business sale, inheritance or settlement.
- The property address and details, for appraisal ordering.
Frequently Asked Questions
Do we need a job or any income to qualify?
No job is required. On the asset qualifier path, no employment or income is documented, and the loan rests on the assets. On the depletion path, assets become the income. Either way the file is fully underwritten and the assets are documented, subject to underwriting.
Is this a no-income loan?
No. The couple documents assets with statements, and credit and the property are reviewed. The program skips traditional personal-income documentation, pay stubs and employment verification, not underwriting.
Can our retirement accounts count?
Yes. On the qualifier path, a 401(k) or IRA counts at 90% under age 59½ and 100% at 59½ or older. On the depletion path, retirement accounts count at 70% at any age.
Can we mix Social Security or a pension with assets?
Yes, on the depletion path. Asset-derived income can supplement documented income up to a 45% debt-to-income ratio, and the minimum-assets rule is waived when it does.
Does our business stock count if the company is privately held?
No. The route is documented liquid assets, such as seasoned proceeds from a sale, cash, public securities and retirement accounts at their counted shares.
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. Consumer mortgage lending for this program is licensed in 16 states: Alabama, California, Colorado, Florida, Georgia, Indiana, Michigan, Montana, New Mexico, North Carolina, Ohio, Pennsylvania, Tennessee, Texas, Virginia and Washington. Programs change, and every file is underwritten individually. This is not a commitment to lend.
About Lendmire
Lendmire, NMLS# 2371349, is a mortgage brokerage with consumer lending licenses in 16 states. Bank statement, P&L-only, 1099-only and asset-based mortgages are arranged through wholesale lending partners for borrowers whose tax returns understate their income, and each application is underwritten individually by the lender. Scotsman Guide named Lendmire a Top Mortgage Workplace in both 2025 and 2026.
For how equity extraction works on an investment property, see Lendmire’s guide to cash-out refinance on an investment property.
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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 Simplified
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: Best Asset-Based Cash-Out Refinance Program When Monthly Income Is Limited · Best Asset-Based Cash-Out Refinance Program With a 40-Year Term
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.