The Quick Read: A federal retiree’s pension, Social Security, TSP and savings can support a mortgage in two ways: the assets cover the whole loan, or the assets are converted into qualifying income. Which one fits depends on how large your balances are compared with the loan.
- 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 monthly income that runs through the debt-to-income test.
- Your TSP counts without withdrawal: the balance is documented with statements, and you do not have to start taking money out.
- One path at a time: a borrower is qualified on one path, and the two tables are never blended.
- Every file is underwritten: assets are documented with statements, subject to underwriting and lender guidelines.
Picture a retired federal employee in Northern Virginia or Hampton Roads. The FERS annuity is steady, Social Security has started, and the TSP and savings are substantial. On paper, that income can look thin against a large loan. The wealth is real, but a paycheck-based formula doesn’t see it.
Asset-based mortgages fix that mismatch. Lendmire is a broker, so it arranges these loans through select lenders in its wholesale network. The figures below are ceilings and floors from those programs, not offers, and every file is underwritten individually.
What Counts as “Income” for a Federal Retiree?
A federal retiree’s income usually has several parts: an FERS or CSRS annuity, Social Security, possibly an FERS supplement, and TSP distributions. Traditional lenders add up the recurring pieces and divide by the housing payment and debts. That works if the income is large. It works poorly if most of your wealth sits in the TSP and you only draw what you need.
The Thrift Savings Plan is the tax-deferred retirement plan for federal employees. It was created by the Federal Employees’ Retirement System Act of 1986, as the Federal Register describes. Its balance can be large while the annual withdrawals are small. Many retirees simply let the TSP grow and live on the annuity.
That’s the gap asset-based programs close. They look at what you own, not only what lands in your account each month.
Key Terms Defined
Asset qualifier path: a program route where eligible assets, after credit percentages, must equal or exceed the entire loan amount. No employment or income is documented.
Asset depletion path: a route that converts usable assets into monthly qualifying income by dividing by 60 months. That income then goes through the debt-to-income test.
Debt-to-income (DTI): your monthly debts, including the new housing payment, as a share of qualifying income.
Seasoning: how long funds have sat in an account before the lender counts them.
TSP: the Thrift Savings Plan, the retirement savings plan for federal employees.
Loan-to-value (LTV): the loan amount as a percentage of the property’s value.
Path One: Let the Assets Cover the Whole Loan
The asset qualifier path is the simplest idea here. If your eligible assets, after the percentages below, equal or exceed the entire loan, you qualify on assets alone. No employment or income is documented. You still document the assets, and credit is still reviewed.
Across our wholesale network, this path typically allows up to 80% loan-to-value on a purchase and 75% on a refinance, on a principal residence or second home. Loan amounts run up to $4,000,000, subject to underwriting. The credit floor is 600.
Here is how much of each balance counts on this path:
| Asset | Share that counts |
|---|---|
| Brokerage accounts | 100% |
| Certificates of deposit | 100% |
| Money market | 100% |
| Savings | 100% |
| 401(k) and IRA, under 59½ | 90% |
| 401(k) and IRA, 59½ or older | 100% |
Accounts combine. Most federal retirees are past 59½, so their retirement balances count in full on this path. The same table treats TSP money like other retirement accounts, subject to underwriting.
Here is an illustration, subject to the lender’s own calculation. Take an $800,000 loan. Say the borrower has $330,000 in brokerage accounts (100% counts, so $330,000), $300,000 in a 401(k) under 59½ (90% counts, so $270,000) and $200,000 in savings (100% counts, so $200,000). Usable assets total $800,000, which matches the loan, so the file is reviewed on assets alone.
The qualifier path requires no reserves at or below 75% loan-to-value. Above that, the lender sets them. Whether cash-out is allowed on this path is up to the lender and isn’t published, so don’t plan around it.
Path Two: Turn the Assets Into Monthly Income
The asset depletion path works differently. Eligible assets, after haircuts, are divided 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.
This path suits a retiree whose balances are large but not large enough to cover the whole loan outright. It also applies to investment property, where the loan is business-purpose.
Leverage is lower here. On a principal residence or second home, the ceiling is typically 80% on a purchase or rate-and-term refinance and 60% on a cash-out refinance. 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 from $125,000 to $3,500,000.
The credit review follows the lender’s matrix. A first-time investor on this path needs a 700 score. Housing history is 0x30x12, and a housing event needs four years of seasoning.
Haircuts are heavier than on the qualifier path:
| Asset | Share that counts |
|---|---|
| Cash accounts | 100% |
| Certificates of deposit | 100% |
| Securities | 80% |
| Private stock | 75% |
| Retirement accounts (TSP, IRA, 401(k)) | 70% at any age |
| Real-estate equity | 60% |
Some assets aren’t eligible on this path: 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.
An illustration, again subject to the lender’s own calculation. Say a borrower holds $1,500,000 in securities (80% counts, so $1,200,000) and $300,000 in cash (100% counts, so $300,000). That is $1,500,000 usable, divided by 60 months, or $25,000 of monthly qualifying income. That income then carries the housing payment and other debts through the debt-to-income test.
Two minimums apply. Qualified assets must be at least the lesser of $1,000,000 or 1.25 times the loan balance. And when asset depletion is the only income source, assets can’t fall below $250,000 liquid. If asset income only supplements documented income, it can be used up to a 45% debt-to-income ratio, and the minimum-assets rule is waived.
Which Path Fits Which Retiree?
Pick the path by comparing your usable assets with the loan.
| Your situation | Likely fit |
|---|---|
| Usable assets cover the whole loan | Asset qualifier |
| Large assets, loan bigger than assets | Asset depletion |
| Annuity plus assets, want to combine | Depletion, supplementing income |
| Buying a rental, not a home | Depletion (business-purpose) |
A borrower is qualified on one path at a time. The tables never blend. If your assets exceed the loan, the qualifier path avoids the income math entirely. If they don’t, depletion lets the portfolio carry the payment.
Your annuity still matters on the depletion path. Asset-derived income can supplement documented income, which helps when the pension alone is a little short.
These are the asset-based mortgage programs Lendmire places through select lenders, in the 16 states where it does consumer lending. Virginia is one of them. The program figures don’t change by state.
What Documents the Lender Will Want
Documentation is real on both paths. “No tax returns, pay stubs or employment verification” is accurate. “No documentation” isn’t. Expect to provide:
- TSP statements. Recent account statements showing the balance.
- Bank and brokerage statements. Two months for each qualifying account on the qualifier path.
- Source-of-funds records for any large deposit.
- Identity and credit information.
- Annuity and Social Security award letters if you want the depletion path to supplement documented income.
Seasoning rules differ. On the qualifier path, funds need 60 days of seasoning and two months of statements per account. On the depletion path, statements must be at least 120 days old at application, plus the most recent statement within 45 days. Sale-of-business, inheritance and legal-settlement funds are excused from that seasoning.
A tip many retirees miss: don’t shuffle money between accounts right before applying. A large transfer creates a paper trail the lender has to explain. Leave balances where they are and let the statements age.
Should You Withdraw From the TSP Instead?
For most retirees, no. The point of asset-based qualification is that you can leave the TSP invested and still qualify. The balance is counted from statements. It isn’t pulled out.
Withdrawing has real costs. The Graduate School USA tutorial on the TSP in retirement notes that distributions before 59½ may carry a 10% penalty, with exceptions that include separating from service at or after age 55. It also says no new contributions or loans can be made after retirement. Required minimum distributions start at age 73.
Tax treatment varies; consult a qualified professional.
A few TSP edge cases matter here:
- Outstanding TSP loans must be resolved before withdrawal requests process.
- Annuity versus balance. A TSP life annuity is a fixed stream. It is a different thing from a lump-sum balance, and rarely worth choosing just to qualify.
- Liquidity depends on your status. Whether the balance is accessible turns on whether you’ve separated from service.
Withdrawing to buy also shrinks the very assets that make you qualify. On the depletion path especially, a smaller balance means a smaller divided-by-60 income.
Where the General Rule Breaks
A few cases don’t fit the neat picture.
Other asset types. Cryptocurrency, precious metals, collectibles, business accounts beyond your ownership share, and pledged or borrowed funds aren’t 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. On the depletion path, they never count as qualifying assets.
Thin credit. A borrower with a 600 score on the qualifier path may qualify, but the depletion path follows the lender’s matrix. Multiple bankruptcies aren’t eligible.
Rental purchases. If you’re buying an investment property, the depletion path applies at lower leverage. Business-purpose rental financing is also what DSCR loans are designed for, since they are reviewed differently from a standard owner-occupied mortgage. If your goal is a pure rental, compare both.
A borrower with plenty of income. If your pension and Social Security comfortably clear a conventional debt-to-income test, an asset-based program may be unnecessary.
How This Differs From a Conventional Loan
Conventional and full-doc jumbo loans, by their own rules, lean on documented income and ratios. That is the formula where a retiree with a modest annuity and a big TSP often looks weak. Asset-based programs read the same file differently.
The federal ability-to-repay standard, which the CFPB’s ability-to-repay summary lays out, has lenders weigh eight underwriting factors, including income or assets, debts and credit history. Assets are on that list. That is why asset-based loans are fully underwritten. They are consumer mortgages, so standard consumer-loan disclosures apply, and the same summary notes that loans where the lender verifies neither income nor assets cannot be Qualified Mortgages.
Timing Your Application
Retirement timing changes the picture. Applying before you retire means a paycheck still shows on paper. Applying after means the annuity and Social Security are your documented income, and the assets do more of the work.
Three timing points:
1. Let statements age. Seasoning is a hard requirement on both paths.
2. Mind the supplement. If you receive a FERS supplement, it is temporary, so a lender reviewing your income may weigh that end date.
3. Don’t move accounts at the last minute. Keep the paper trail clean.
Frequently Asked Questions
Do I have to withdraw from my TSP to qualify?
No. Eligible balances are counted from statements, and no withdrawal is required on either path. Keep the money invested, and document it with current statements, subject to underwriting.
How much of my TSP counts?
It depends on the path. On the qualifier path, retirement balances count at 90% under age 59½ and 100% at 59½ or older. On the depletion path, retirement accounts count at 70% at any age. Every file is underwritten individually.
Is this a no-doc loan?
No. Every file is fully underwritten and assets are documented with statements. What you skip is traditional personal-income documentation, pay stubs and employment verification on the qualifier path.
Can I combine my pension with my savings?
On the depletion path, yes. Asset-derived income can supplement documented income up to a 45% debt-to-income ratio, and then the minimum-assets rule is waived.
Is a Virginia address required?
The program is licensed for consumer lending in 16 states, and Virginia is one of them. The program figures don’t change by state, and local taxes and prices are context only.
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.
Lendmire’s asset-based mortgage in Virginia page presents the program for Virginia borrowers.
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.
Investors who want the broader program framework can review how DSCR loans work.
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References
1. Federal Register (TSP rule)
2. Graduate School USA: TSP in Retirement
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 to Buy Before You Sell in Virginia Using an Asset Qualifier Mortgage · How Pennsylvania Retirees Downsize on an Asset Qualifier Mortgage · Can a Florida Buyer Qualify for a Mortgage on IRA Assets Without Withdrawals?
Guides: Asset-Based Mortgage in Virginia
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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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.