The Quick Read: Usually yes: through select asset-based programs, your IRA can count toward qualifying while it stays invested, either by covering the loan outright or by becoming monthly qualifying income, so no withdrawal is needed to qualify, subject to underwriting. The catch is cash to close, which has to come from somewhere.
- 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 to create qualifying income, which then runs through the debt-to-income test.
- IRA treatment differs by path: the qualifier path counts an IRA at 90% under age 59½ and 100% at 59½ or older, while the depletion path counts it at 70% at any age.
- Rentals are different: a pure rental purchase usually moves to a DSCR loan, where the property’s rent is the test and the IRA mostly supports reserves.
Florida borrowers get the same program figures as anyone else. State rules do not change the percentages below. Lendmire is a broker, so it arranges these loans through select lenders in its network; the lender underwrites every file individually.
Which Path Fits an IRA-Heavy Borrower?
The right path depends on what you are buying and how much documented income you have. If your balances are large and your paycheck is small, asset-based qualifying is built for you. That usually means retirees, people who sold a business, and early-retired professionals living off a portfolio.
Here is how the two paths work across the programs Lendmire places files with. You are qualified on one path at a time, never a blend.
| Feature | Asset qualifier | Asset depletion |
|---|---|---|
| Core test | Assets cover the whole loan | Assets become monthly income |
| Income documented | None | Derived from assets |
| IRA counts at | 90% under 59½, 100% at 59½+ | 70% at any age |
| Purchase leverage | Up to 80% | Up to 80% (65% investment) |
| Loan size | Up to $4,000,000 | $125,000 to $3,500,000 |
All figures are ceilings through select programs, not offers, and they stay subject to underwriting.
Do You Have to Withdraw From the IRA to Qualify?
No. On both paths the lender counts a share of the balance on paper. The IRA stays invested and untouched. What the lender wants is a documented trail, which means statements showing the account is yours, who owns it, and what it holds.
Many borrowers assume they must liquidate the IRA first. Lenders are not asking you to spend the IRA. They are asking whether it proves you can repay.
Your IRA is not the only way to qualify, but it is a legitimate one. The federal repayment-capacity framework lets a lender consider assets as well as income, and the federal consumer-finance regulator’s small-entity compliance guide says a creditor may consider amounts vested in a retirement account. The lender must verify those assets with reliable third-party records, which is why statements matter so much.
How the Asset Qualifier Path Counts an IRA
On the qualifier path, the question is simple: do your eligible assets, after the credit percentages, equal or exceed the loan? Brokerage accounts, certificates of deposit, money market and savings count at 100%. An IRA or 401(k) counts at 90% if you are under 59½ and 100% once you reach 59½. Accounts combine.
Here is the sanctioned shape of the math. Say you want an $800,000 loan. You hold $330,000 in brokerage accounts (100%, so $330,000), $300,000 in a 401(k) while under 59½ (90%, so $270,000) and $200,000 in savings (100%, so $200,000). That counts $800,000 of usable assets, and the file is reviewed on assets alone. This is illustrative, and the lender’s own calculation governs.
A few program details matter here:
- Leverage: up to 80% on a purchase and 75% on a refinance, for a principal residence or second home.
- Credit: a 600 minimum score, with a housing history of 0x30x12.
- Seasoning: 60 days, and two months of statements for each qualifying account.
- Reserves: none required at or below 75% loan-to-value; above that, the lender sets them.
Seasoning is the waiting period an asset must sit in your account before it counts. A recent IRA rollover or a large fresh deposit may need that time to clear.
Whether cash-out proceeds are allowed on this path is set by each lender and is not published, so ask before you plan around it.
How the Asset Depletion Path Counts an IRA
The depletion path turns assets into pretend income. The lender takes your usable balance after the haircuts, divides it by 60 months, and treats the result as monthly qualifying income. That income must carry the full housing payment and your other debts through the debt-to-income test, or DTI, which compares monthly debts to monthly income.
Retirement accounts count at 70% at any age on this path. Cash and certificates of deposit count at 100%, securities at 80%, private stock at 75%, and real-estate equity at 60%.
Run the sanctioned example. $1,500,000 in securities (80%, so $1,200,000) plus $300,000 in cash (100%) is $1,500,000 usable. Divide by 60 months and you get $25,000 of monthly qualifying income. Now swap in a $1,000,000 IRA. At 70% it counts as $700,000 usable, which divides to a noticeably smaller monthly qualifying income than the first example. That only works if the usable assets also clear the program minimum, described below.
The minimums are real:
- Qualified assets: at least the lesser of $1,000,000 or 1.25 times the loan balance.
- Liquid floor: never below $250,000 liquid when asset depletion is your only income source.
- Statements: at least 120 days old at application, plus the most recent statement within 45 days.
- Credit: the lender’s score and loan-amount matrix, and 700 for a first-time investor.
Asset-derived income can also supplement documented income, such as a pension or Social Security, up to a 45% DTI. When it supplements, the minimum-assets rule is waived.
Why the Qualifier Path Often Beats Depletion for IRA Money
For an IRA specifically, the qualifier path counts more of the balance. At 59½ or older, 100% beats 70%. Under 59½, 90% still beats 70%. If your assets can cover the entire loan, the qualifier path is usually the more generous treatment of retirement money.
The depletion path wins when the loan is too big for your assets to cover outright. It lets you borrow against assets that fall short of the full loan, because they only need to carry the payment as income.
This one is a genuine tradeoff. If your assets are less than the loan, the qualifier path is closed to you, and depletion is the route. If you have enough, check both with a broker who sees several lenders’ guidelines, because overlays vary.
What About the Down Payment and Closing Cash?
This is where “without withdrawals” gets an asterisk. Qualifying and funding are two separate steps. The IRA can support the first step without moving a dollar. The second step needs actual cash.
If your down payment comes from the IRA, you take a distribution, which is a withdrawal. Tax treatment varies; consult a qualified professional before you decide.
If you want to avoid that, the down payment and closing costs must come from non-retirement funds. Lenders typically subtract the cash you need to close before counting the rest of your assets. Large deposits also draw questions, so keep statements clean and be ready to document where cash originated.
Other asset classes are harder. Cryptocurrency, precious metals, collectibles 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 lender reviewing the source.
Buying a Rental: Where DSCR Comes In
The paths above are consumer mortgages for a home you live in or a second home. The depletion path also allows investment property, at up to 65% on a purchase or rate-and-term refinance and 60% on a cash-out.
For a pure rental, most investors use a DSCR loan instead. DSCR stands for debt service coverage ratio, which means monthly rent divided by the monthly payment on the property. The loan is reviewed primarily on property-level rental income covering the payment, subject to lender guidelines. Lendmire’s complete DSCR loans guide covers how that works in detail.
Where does your IRA fit? On a DSCR file, retirement balances often support reserves, meaning cash left over after closing. Many lenders discount a retirement balance or test whether you could actually reach the funds, so treat the balance as worth less than its statement value. It is a proof-of-funds test, not a liquidation requirement. Lenders still pull credit, so DSCR is not a loan with no paperwork.
Because DSCR loans are designed for non-owner-occupied investment properties, they are reviewed differently from a standard owner-occupied mortgage. Rent that comfortably covers the full monthly obligation is the main test, so your personal income matters far less.
Can the IRA Itself Be the Buyer?
That is a different question, and the answer is harder. A self-directed IRA can own real estate, but the IRA, not you, is the borrower. The IRS lists borrowing from an IRA, selling property to it, and using it as security for a loan among prohibited transactions. Disqualified persons include the owner, fiduciaries and family members.
The practical problem is the personal guarantee. A loan to an IRA must be non-recourse, meaning the lender can look only to the property.
Ordinary DSCR loans require a personal guaranty. They do not fit an IRA-owned property, and non-recourse availability is limited. Do not pledge your IRA as collateral for a mortgage, and do not sign for it.
Common Mistakes With IRA Assets
- Counting the statement balance at face value. Each path applies a percentage, and the depletion path takes 30% off at any age.
- Mixing the two tables. Qualifier percentages do not apply on the depletion path, and the reverse is also true.
- Moving money right before applying. A fresh rollover can break seasoning, so give assets time to settle.
- Confusing qualifying income with a taxable event. The lender’s calculation is not income you received. Only an actual distribution moves money.
- Assuming rentals and homes use the same loan. A home you will live in uses the consumer paths, and a pure rental usually uses DSCR.
Which Route Fits Which Buyer?
| Buyer | Likely route |
|---|---|
| Retiree whose assets exceed the loan | Asset qualifier |
| Retiree whose assets fall short of the loan | Asset depletion |
| Investor buying a pure rental | DSCR loan |
| Owner who wants the IRA to hold the property | Self-directed IRA, non-recourse debt |
Retirement-heavy borrowers on larger loans should also read Lendmire’s piece How to Use Retirement Assets to Qualify for a Jumbo Mortgage. Borrowers with very large balances may also want to look at whether retirement assets can help them qualify for a super jumbo mortgage.
Key Terms Defined
Asset qualifier: a path where eligible assets must cover the entire loan amount, with no income documented.
Asset depletion: a path that divides usable assets by 60 months to create monthly qualifying income.
Haircut: the share of an asset’s balance that a lender does not count.
Seasoning: the time an asset must sit in your account, or a statement must age, before it counts.
DTI: debt-to-income ratio, which compares your monthly debts to your monthly income.
DSCR: debt service coverage ratio, which compares a rental’s monthly rent to its monthly payment.
Non-recourse: a loan where the lender can look only to the property, not to the borrower personally.
Frequently Asked Questions
Can I use my IRA without withdrawing from it?
Yes. On both paths the IRA stays invested while the lender counts a share of the balance. The qualifier path counts it at 90% under 59½ and 100% at 59½ or older, and the depletion path counts it at 70% at any age. Every file is subject to underwriting.
Do I need to be 59½ or retired?
Age does not block you, but it changes the math on the qualifier path, where the percentage rises from 90% to 100% at 59½. The depletion path treats retirement accounts at 70% regardless of age. Retirement is not a requirement on either path.
Do I still need cash for a down payment?
Usually yes, from funds outside the IRA if you want to avoid a distribution. Lenders also want to see where that cash came from. Leverage ceilings are set per path and occupancy, such as up to 80% on a purchase of a principal residence.
Can I buy a rental with an IRA-backed mortgage?
On the depletion path, investment property is allowed at up to 65% on a purchase. Most pure rental purchases go through a DSCR loan instead, where the rent covering the payment is the main test and the IRA supports reserves.
What credit score do I need?
The qualifier path publishes a 600 minimum score. The depletion path follows the lender’s score and loan-amount matrix, and a first-time investor needs 700. Housing history is 0x30x12, and approval is never promised.
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. You can reach the team at 828-256-2183 or request a quote.
For current guidelines and terms, see Lendmire’s asset-based mortgage programs page.
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.
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References
1. CFPB – ATR/QM Small Entity Compliance Guide
2. IRS – Retirement topics: Prohibited transactions
This article is part of Lendmire’s asset-based mortgage program — full qualification details, guidelines, and scenarios live on the program page.
Related reading: What Counts as an Asset Statement for a Mortgage? · How to Qualify for a Mortgage on Liquid Assets Alone · How Assets-Only Mortgage Loan Limits Work
Guides: Asset-Based Mortgage in Florida
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.