The Quick Read: Yes, through select asset-based programs, because a pension start date is not a requirement on those files. Under these programs, borrowers are reviewed against their savings instead of a paycheck. Either your assets cover the whole loan, or they are converted into monthly qualifying income. Eligibility is subject to underwriting.
- Path one, the asset qualifier: usable assets must equal or exceed the entire loan, and no employment or income is documented.
- Path two, asset depletion: usable assets are divided by 60 months to create qualifying income, which runs through the debt-to-income test.
- You stay on one path at a time. The two paths have different leverage, asset credit, and seasoning rules.
- Buying a rental instead? A DSCR loan is reviewed primarily on property-level rental income covering the payment, subject to lender guidelines, so pension timing does not enter the picture.
Which Path Fits You?
Your balance sheet decides the path. Ask one question first: do your eligible assets add up to more than the whole loan? If yes, the asset qualifier path is usually the cleaner fit. If not, asset depletion may work. Both are consumer mortgage programs, placed through select lenders in Lendmire’s network.
On the asset qualifier path, the loan is underwritten on assets alone. Your eligible balances, after the credit percentages below, must equal or exceed the entire loan amount. The lender does not document your employment or income. It does document your assets, and that is the part people miss. No income documentation never means no documentation.
On the asset depletion path, the lender turns your usable assets into income. It divides them by 60 months. The result must carry the full housing payment and your other debts through the debt-to-income test. Debt-to-income is simply your monthly debts compared with your monthly income.
Think of the qualifier path as “my assets cover the loan.” Think of depletion as “my assets become a paycheck on paper.” The second is a qualifying convention. You keep your assets and you are not required to draw them down.
This is a good fit for early retirees, people who sold a business, and households living on a portfolio. It also fits recipients of an inheritance or settlement, where balances are large and documented income is thin.
What Counts as an Asset?
Not every dollar counts the same. Lenders apply a percentage to each account type, which the industry calls a haircut. The numbers below are typical of select programs in the network, subject to underwriting.
| Asset type | Qualifier path | Depletion path |
|---|---|---|
| Brokerage accounts | 100% | Securities 80% |
| Savings and money market | 100% | Cash accounts 100% |
| Certificates of deposit | 100% | 100% |
| 401(k) and IRA | 90% under 59½, 100% at 59½+ | 70% at any age |
| Private stock | Not published | 75% |
| Real-estate equity | Not published | 60% |
Keep those two columns separate. A figure from one path never applies to the other.
The retirement row matters most to you. A pre-pension retiree often holds most of their wealth in a 401(k) or IRA. On the qualifier path, those balances count at 90% before age 59½. Counting a balance is not the same as spending it. A lender may count the account, but withdrawing from it for a down payment is a separate event, since early retirement-account withdrawals generally carry a 10% additional tax before 59½, per Fidelity. Tax treatment varies; consult a qualified professional.
Several things are not eligible on the depletion path. These include custodial accounts, deferred compensation, escrow accounts, foreign funds, and cash on hand. Stock options, non-vested restricted stock units, and funds from non-regulated financial companies are also out.
Cryptocurrency, precious metals, collectibles, and pledged or borrowed funds are not published as eligible on either path. If you hold them, the documented route is to convert them to a seasoned cash balance in a regulated account. The lender then reviews the source of the funds.
Two Worked Examples
These examples are illustrative. The lender’s own calculation governs.
Qualifier path. Say you want an $800,000 loan. You hold $330,000 in brokerage accounts, which count at 100%, or $330,000. You hold $300,000 in a 401(k) and you are under 59½, so it counts at 90%, or $270,000. You hold $200,000 in savings, counted at 100%, or $200,000. Together that is $800,000 of usable assets. The assets match the loan, so the file is reviewed on assets alone, subject to underwriting.
Depletion path. Say you hold $1,500,000 in securities and $300,000 in cash. The securities count at 80%, or $1,200,000. The cash counts at 100%, or $300,000. Usable assets total $1,500,000. Divide by 60 months and you get $25,000 of monthly qualifying income. That income then has to carry the housing payment and your other debts through the debt-to-income test.
Notice what is missing from both. No pension, no paycheck, and no employment history appear anywhere in the math.
Does Your Pension Start Date Change Your Options?
Mostly it changes how you plan, not whether you can apply. A pension that has not started is usually not counted as income, because a lender wants to see income you are receiving now. Treat a future pension as untested on any given program. Do not build a plan that depends on a lender counting it early.
The asset paths do not need it. Here is how the picture shifts as your start date gets closer.
| Where you are | What usually matters | Likely fit |
|---|---|---|
| Years from pension start | Size and type of liquid assets | Qualifier or depletion path |
| Close to pension start | Seasoning of your statements | Either path, planned early |
| Pension has started | Documented income plus assets | Asset income can supplement |
Once the pension starts, it becomes documented income. Under the depletion path, asset-derived income can supplement documented income up to a 45% debt-to-income ratio. When assets only supplement, the minimum-assets rule is waived. That can help a couple where one spouse already draws a pension and the other does not.
Picture a couple with one active pension and a $1,500,000 portfolio in the shape shown above. The active pension is documented income. The portfolio’s derived income fills the gap, and the lender runs the combined figure through the 45% test, subject to underwriting. Two years earlier, the same couple would have relied on assets alone.
One planning point is easy to miss. Statements need time to age before you apply. Moving money between accounts right before you apply can slow a file or pull an account out of eligibility. Settle where your money lives early.
Leverage, Credit, and Seasoning
These are the ceilings and floors from select programs, subject to underwriting. They are not offers.
Leverage on the asset qualifier path is up to 80% loan-to-value on a purchase and up to 75% on a refinance, on a principal residence or second home. Loan-to-value is the loan as a percentage of the property’s value. Cash-out terms on this path are set by the lender and are not published.
Leverage on the asset depletion path is up to 80% on a purchase or rate-and-term refinance and 60% on a cash-out refinance, on a principal residence or second home. On an investment property, it is 65% on a purchase or rate-and-term refinance and 60% on a cash-out. Cash-out proceeds never count as qualifying assets.
Loan amounts run up to $4,000,000 on the qualifier path and from $125,000 to $3,500,000 on the depletion path.
Credit has a 600 minimum score on the qualifier path. The depletion path follows the lender’s matrix. A first-time investor on the depletion path needs 700. Housing history is typically 0x30x12, meaning no 30-day late payments in the last twelve months. One late payment is considered case by case. Multiple bankruptcies are not eligible. A housing event such as a foreclosure needs four years of seasoning on the depletion path. Your credit is always reviewed.
Seasoning is how long your money has to sit before a lender trusts it. On the qualifier path, it is 60 days, with two months of statements for each qualifying account. On the depletion path, statements must be at least 120 days old at application, plus the most recent statement within 45 days. Funds from a business sale, inheritance, or legal settlement are excused from that seasoning.
Depletion minimums: qualified assets of at least the lesser of $1,000,000 or 1.25 times the loan balance. When depletion is your only income source, you also need at least $250,000 in liquid assets.
Reserves are not required at or below 75% loan-to-value on the qualifier path, with the lender setting them above that. The depletion path has no published reserve months.
Buy Now, Bridge, Wait, or Pay Cash?
You have options beyond these programs. Each has real tradeoffs.
| Option | What it does for you | Main tradeoff |
|---|---|---|
| Asset-based mortgage | Keeps your portfolio invested | Seasoning and documented assets |
| Bridge with part-time income | Adds documented income | Work you may not want |
| Wait for the pension | Documented income arrives | Delays the purchase |
| Pay cash | No monthly payment | Locks up your portfolio |
Paying cash is simple, but it concentrates your wealth in one house. An asset-based mortgage lets the portfolio keep working, and you keep liquidity. The cost is a loan, with its payment and its underwriting. This is a genuine judgment call. A planner or tax professional who knows your whole picture is worth a conversation.
Large retail lenders often struggle with this borrower. Their standard income tests expect a paycheck or a long tax-return history. Asset-based programs exist because many portfolio-rich borrowers fail those tests despite strong finances.
What If the Property Is a Rental?
A pre-pension retiree who wants a rental has an easier path. DSCR loans are designed for non-owner-occupied investment properties. Because they are business-purpose investor loans, they are reviewed differently from a standard owner-occupied mortgage.
DSCR stands for debt service coverage ratio. The lender compares the property’s rent with its monthly payment, which covers principal, interest, taxes, insurance, and any association dues. The loan is reviewed primarily on property-level rental income covering the payment, subject to lender guidelines. Your pension and employment status are not part of the test. Your credit is still reviewed, and you will need funds for the down payment, closing costs, and reserves.
Many DSCR programs accept retirement balances toward reserves, subject to lender guidelines. That means a large IRA or 401(k) can support the file without being liquidated.
Asset depletion can also apply to an investment property, though at lower leverage than a primary home. The comparison matters. DSCR leans on the rent. Depletion leans on you.
For the full picture, read the complete DSCR loans guide. If this is your first rental, Lendmire’s piece How to Buy a First Rental With a DSCR Loan Before Owning a Home covers the mechanics.
Why Lenders Are Allowed to Do This
Underwriting on assets is not a loophole. Under the federal ability-to-repay rule, a consumer-loan lender may base its repayment decision on income, on assets other than the home securing the loan, or on both, per the CFPB’s Regulation Z text. The lender must verify what it relies on. The official codified rule calls for reasonably reliable third-party records, which is why account statements matter so much.
In plain terms, the law does not demand a pension or a paycheck. Asset-based programs are built around that flexibility. Because these are consumer mortgages, standard consumer disclosures apply.
Where This Doesn’t Work
Be honest with yourself about these limits.
- Your wealth is mostly home equity. Real-estate equity counts at 60% on the depletion path. A paid-off house and modest liquid savings may qualify you for less than your net worth suggests.
- Your assets sit in ineligible forms. Cryptocurrency, collectibles, or cash on hand need conversion and seasoning first.
- You need to use borrowed money for the down payment. Pledged or borrowed funds are not published as eligible.
- Your credit is thin or damaged. A housing event or multiple bankruptcies can end the file.
- You are tight on liquidity. Counting assets for qualifying and having cash for closing are different questions. Funds used for the down payment and closing costs generally come out of what counts.
Common mistakes follow the same pattern. Borrowers shift money right before applying, assume a future pension will count, mix figures from the two paths, or confuse asset-based qualifying with having no paperwork.
Key Terms Defined
Asset qualifier path: a program where eligible assets must equal or exceed the entire loan, with no employment or income documented.
Asset depletion path: a program that divides usable assets by 60 months to create qualifying income for the debt-to-income test.
Haircut: the percentage of an account balance that a lender counts, which is lower for riskier assets.
Seasoning: the time funds must sit in your accounts before a lender accepts them.
Debt-to-income ratio: your monthly debts divided by your monthly income.
DSCR: a rental-property test that compares rent with the monthly payment instead of looking at your personal income.
Frequently Asked Questions
Do I have to sell or withdraw my investments to qualify?
No. Asset depletion is a qualifying calculation, and you keep your assets. The qualifier path likewise counts balances without requiring you to spend them. You will still need cash available for the down payment and closing costs, subject to underwriting.
Will a lender count my pension before it starts?
Plan as though it will not. Lenders generally want income you are currently receiving, so early counting should be treated as untested on any program. The asset paths work without it, and the pension can supplement your file once it begins.
Can my 401(k) or IRA count if I’m under 59½?
Yes, on both paths. It counts at 90% under 59½ on the qualifier path and at 70% at any age on the depletion path. Counting a balance toward qualifying is different from withdrawing it, so ask a professional before you move any retirement money.
Is no income documentation the same as no documentation?
No. You document your assets with statements, and you pass a credit review. What you skip is documenting employment and income on the qualifier path. The lender still verifies where the money is and where it came from.
What if I want to buy a rental instead of a home to live in?
A DSCR loan is reviewed primarily on the property’s rental income covering the payment, subject to lender guidelines, so a pension start date is not part of it. Asset depletion on an investment property is available at lower leverage, 65% on a purchase, subject to underwriting.
Next Steps
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 is a mortgage broker, not a lender. It places files through select lenders in its network, and consumer mortgage lending 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. Nothing here is 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 reviewed individually by the lender. Scotsman Guide named Lendmire a Top Mortgage Workplace in both 2025 and 2026.
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References
2. CFPB, Regulation Z § 1026.43
This article is part of Lendmire’s asset-based mortgage program — full qualification details, guidelines, and scenarios live on the program page.
Related reading: How an Assets-Only Mortgage Works · How to Open a HELOC on Assets Alone as a Retiree · How to Qualify for an Assets-Only Jumbo Loan
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.