The Quick Read: Yes, a retiree living off savings can buy a winter home in two ways: pay all cash, or qualify for an asset-based mortgage that counts eligible savings and investments instead of paycheck income, subject to underwriting and to the property sitting in a licensed state. A regular second-home loan usually still tests income, so savings alone rarely carries it. A rental-investor loan is the wrong tool for a home you will live in.
- All cash needs no lender, but you still prove the funds to the seller.
- An asset-based mortgage needs no traditional personal-income documentation, pay stubs or employment verification, but it is fully underwritten and your statements are documented.
- Two paths exist: assets cover the whole loan, or assets are converted into qualifying income.
- Leverage, credit and seasoning rules differ by path, so never mix the two.
- Lendmire is a broker. Lenders decide, and every file is reviewed individually.
What Does “On Savings Alone” Actually Mean?
It can mean three different things, and only two of them work without a paycheck. You can pay all cash, use savings as a down payment while income pays for the rest, or let your savings serve as the qualifying income itself.
The first is simple. You buy the home outright, and no lender asks about your job.
The second is where many retirees get stuck. A standard second-home loan puts your savings toward the down payment, then tests your income and debts for the remainder. A retiree with a large portfolio and a small documented income can look weak on that test, even though the balances are enormous.
The third is the one this article spends the most time on. Your assets themselves do the qualifying. Lendmire arranges this through asset-based programs placed with select lenders, and the two versions are explained below.
Path One: Paying All Cash
Cash is the cleanest route, and in vacation markets it is common. The National Association of REALTORS reported that over a ten-month stretch of its REALTORS Confidence Index, 57% of vacation-home buyers and 56% of investment buyers paid all cash. Only 18% of primary-residence buyers did. That 57% covers vacation buyers broadly, not snowbirds specifically, but it shows the bar you may compete against when you make an offer with a loan.
Cash still has paperwork. Sellers and title companies usually want proof of funds, which means current statements showing the money is yours and available.
The real risk is what is left afterward. A buyer who moves most of a portfolio into one house has little liquid money for healthcare, repairs or a bad market year. Owning mortgage-free is not owning cost-free, because insurance, HOA dues and upkeep on two households continue.
Pulling the money out also has a price. Withdrawals from retirement accounts can create taxable income, and tax treatment varies, so consult a qualified professional before you sell or draw anything.
A useful test is liquidity after closing. Ask what you would still hold in accessible cash, with the purchase done and a full year of carrying costs on both homes covered. If that number makes you uneasy, a loan may be the safer structure.
Why a Rental-Investor Loan Does Not Fit a Winter Home
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.
That distinction matters to snowbirds. The CFPB’s official interpretation of Regulation Z says the business-purpose treatment fails when the owner expects to occupy the home for more than 14 days in the coming year. Its example is a beach house the owner uses for a month and rents out the rest of the year. That house counts as owner-occupied.
If you winter in the home for weeks or months, you are far past that line. The home is a second home, and it needs a second-home loan.
Calling the home an investment, or titling it in an entity, does not change how you actually use it. Misstating occupancy on a loan application is a misrepresentation, and it is the fastest way to turn a clean file into a bad one.
A DSCR loan remains the right tool for your other properties, the ones you rent to tenants and never sleep in. It is simply not the tool for the winter home.
Path Two: Savings as the Down Payment
Using savings for a down payment and financing the rest is the ordinary second-home route. It works well when you also have steady documented income, such as pension, Social Security or business earnings, that clears the debt-to-income test. Savings alone typically does not carry it.
Second-home loans also tend to be stricter than primary-residence loans. Lenders want to see that the home is a true second home, usually meaning you will occupy it part of the year and keep exclusive control. They also generally do not let projected rental income count toward qualifying.
If your income is thin, skip ahead. This path is not built for you.
Path Three: Savings That Qualify the Loan
This is the path built for large balances and small paychecks. The asset-based mortgage program comes in two versions, and a borrower is qualified on one at a time.
Across the wholesale network, the two versions look like this on a principal residence or second home, subject to underwriting and lender guidelines:
| Factor | Asset qualifier path | Asset depletion path |
|---|---|---|
| How assets are used | Cover the whole loan | Converted into monthly income |
| Purchase leverage | Up to 80% LTV | Up to 80% LTV |
| Refinance leverage | Up to 75% LTV | 80% rate-and-term, 60% cash-out |
| Loan amounts | Up to $4,000,000 | $125,000 to $3,500,000 |
| Credit | 600 minimum score | The lender’s matrix |
| Statements | 60 days seasoning, two months per account | Statements 120+ days old, plus one within 45 days |
LTV means loan-to-value, the loan amount as a percentage of the home’s value. Seasoning is how long money has sat in an account before the lender counts it.
The asset qualifier path
Here, your eligible assets, after the credit percentages below, must equal or exceed the entire loan amount. No employment or income is documented. Your balances are the qualification, and the lender’s ability-to-repay review rests on them.
On this path, brokerage accounts, certificates of deposit, money market and savings all count at 100%. Retirement accounts count at 90% if you are under 59½ and 100% once you reach 59½. Accounts combine. Reserves are not required at or below 75% LTV, and above that the lender sets them. Final terms depend on the lender’s guidelines, the property type, and the borrower’s complete credit picture.
Here is an illustration. Take an $800,000 loan. You hold $330,000 in brokerage accounts, which counts at 100% for $330,000. You hold $300,000 in a 401(k) while under 59½, which counts at 90% for $270,000. You hold $200,000 in savings, counted at 100% for $200,000. That totals $800,000 of usable assets, which covers the loan on assets alone. This is illustrative only, and the lender’s own calculation governs.
The asset depletion path
Here, your assets become income. Eligible balances, after the haircuts below, are divided by 60 months to produce a monthly qualifying income. That income must then carry the housing payment and your other debts through the debt-to-income test. A haircut is the share of a balance a lender refuses to count.
The counted shares are cash and certificates of deposit at 100%, securities at 80%, private stock at 75%, retirement accounts at 70% at any age, and real-estate equity at 60%. 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 are not eligible.
The illustration: $1,500,000 in securities counts at 80% for $1,200,000. Add $300,000 in cash at 100%, and you have $1,500,000 of usable assets. Divided by 60 months, that is $25,000 of monthly qualifying income, which then has to carry the housing payment and other debts. Again, the lender’s calculation governs.
This path has minimum assets. You generally need qualified assets of at least the lesser of $1,000,000 or 1.25 times the loan balance, and never below $250,000 liquid when asset depletion is your only income source. If you have some documented income, assets can supplement it up to a 45% debt-to-income ratio, and the minimum-assets rule is waived.
For a second home, depletion-path leverage tops out at 80% on a purchase or rate-and-term refinance and 60% on a cash-out refinance. Cash-out proceeds never count as qualifying assets.
What does not count
Cryptocurrency, precious metals, collectibles, pledged or borrowed funds, and business accounts beyond your ownership share are not published as eligible on either path. The documented route is converting them into a seasoned cash balance in a regulated account, with the lender reviewing the source.
A practitioner note
Across the wholesale network, the files that stall are rarely the ones with too little money. They are the ones where money moved recently, balances are scattered across accounts, or the statements do not tell a clean story. Lining up two months of statements per account before you shop saves real friction, because the lender is reviewing the assets, not just the totals.
Second Home, Investment Property or Primary Residence?
The classification drives the loan type, so settle it before you shop.
| Factor | Primary residence | Second home | Investment property |
|---|---|---|---|
| How you use it | Main home | Part of the year, your control | Rented to others |
| Rental income to qualify | Generally no | Generally no | Part of the review |
| Typical loan lane | Consumer mortgage | Consumer mortgage | Business-purpose loan |
Heavy renting risks pushing a winter home into the investment lane, which is a separate financing path with its own terms. If your plan is truly to rent it out and stay away, call it an investment and finance it that way. If you will live in it, keep it honest.
California Considerations
California is only your starting point. The program’s figures do not change by state, but the property’s location matters.
Consumer mortgage lending through 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. Check that your winter destination appears on that list before you fall in love with a floor plan.
If you are funding the purchase from selling your California house, the proceeds become cash assets once they sit in your account and the statements document them, subject to the seasoning rules above. You can also count real-estate equity on the depletion path at 60%, but cash pulled out through a cash-out refinance never counts as a qualifying asset.
Cash, Loan or a Blend?
| Option | What it protects | What it risks |
|---|---|---|
| All cash | Simplicity and offer strength | Liquidity and portfolio growth |
| Cash plus income-based loan | Some liquidity | Needs documented income |
| Asset-based mortgage | Keeps portfolio invested | Different terms than a standard loan |
Cash buyers set the pace in vacation markets, so a financed offer sometimes has to work harder. On the other hand, an asset-based mortgage lets a retiree keep the portfolio invested rather than liquidating it, and it may leave more cushion for healthcare and repairs. The tradeoff is that you are using a specialty loan with its own terms, so the choice is a genuine toss-up that depends on how large your cash cushion would be afterward.
Mistakes to Avoid
- Misclassifying the home. Calling a personal winter home an investment to reach a different loan is a misrepresentation.
- Draining liquidity. A house you cannot afford to maintain is not a win.
- Moving money late. Recent deposits and transfers can fail seasoning.
- Mixing the two paths. Qualifier-path percentages do not apply on the depletion path, and the reverse is also true.
- Skipping the location test. Rent for a season before you buy, and confirm the state is in the licensed list.
Where to Start
1. Decide how you will use the home and how many days you will be there.
2. Gather two months of statements for every account you plan to use.
3. List what each account would count for on each path.
4. Decide whether assets should cover the loan or become income.
5. Test your liquidity after closing and a year of carrying costs.
6. Confirm the state, then talk to a broker about options.
Key Terms Defined
Asset qualifier path: the version of the program where eligible assets must cover the entire loan amount.
Asset depletion path: the version where eligible assets are divided by 60 months to create a monthly qualifying income.
Haircut: the share of an asset balance a lender will not count.
Seasoning: how long funds must sit in an account before they are counted.
Proof of funds: statements showing a buyer has the money to close.
Frequently Asked Questions
Can I buy a winter home with no income?
Yes, on the asset qualifier path, where your eligible assets cover the entire loan. No employment or income is documented, but the file is still fully underwritten and your statements are reviewed. Credit still matters, with a 600 minimum score on that path, and approval is never promised.
Do retirement accounts count?
Yes, with limits. 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. Everything is subject to underwriting.
Can I rent the home out when I am away?
You can, but rental income generally does not help you qualify, and heavy renting can push the home into the investment lane. The federal consumer-credit text treats a beach house used for a month and rented the rest of the year as owner-occupied. Your use decides the classification, not your intent to earn income.
Can I use equity from my California home?
On the depletion path, real-estate equity counts at 60% of its value. Cash-out proceeds from refinancing never count as qualifying assets, and the lender’s rules on seasoning still apply.
Is cash better than a loan?
It depends on what you would have left. Cash is simpler and strengthens an offer, but a loan may keep more of your portfolio invested and your cushion intact. Test your liquidity after closing before you decide.
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.
The snowbird markets reward buyers who still have cash on hand a year after closing.
Lendmire’s asset-based mortgage in California page presents the program for California 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.
Investors who want the broader program framework can review how DSCR loans work.
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
1. National Association of REALTORS, Economists’ Outlook on the cash buyer
2. CFPB, Regulation Z §1026.3 Official Interpretation
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 Multi-Generational Home on an Asset Qualifier Mortgage? · Can You Relocate to Georgia and Buy a Home on Assets Before You Have Local Income? · How to Buy a Home After Selling Your Company Without Tax Returns
Guides: Asset-Based Mortgage in California
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.