The Quick Read: Yes, a snowbird can buy a Florida winter home on savings alone, either by paying cash or through an asset-based mortgage that underwrites the savings instead of a paycheck. A DSCR loan is the wrong tool, because a home you live in part of the year is a second home, not a rental. Every file is still fully underwritten, and the assets are documented with statements.
- Cash is the simplest route, but it drains your liquidity.
- Asset qualifier path: eligible assets cover the entire loan, and no employment or income is documented.
- Asset depletion path: your assets are converted into monthly qualifying income, which then has to carry the payment and your other debts.
- Occupancy decides everything. Personal use means a second-home file, whatever the property is titled as.
Many snowbirds are asset-rich and income-light. Retirees, business sellers and people living off a portfolio all fit that picture. Their balances are large, but a bank’s income test sees very little. This guide covers which path fits, what each one counts, and where buyers get hurt.
What Does “Savings Alone” Actually Mean?
It means one of three different things, and mixing them up causes most of the confusion. You can pay all cash. You can use savings as a down payment on a loan that still is reviewed against income. Or you can have your savings qualify the loan itself.
| Path | Who it fits | What gets verified | Main risk |
|---|---|---|---|
| All cash | Buyers with ample liquid funds | Proof of funds, source of funds | Savings tied up in one home |
| Savings as down payment | Buyers with steady income | Income, credit, down payment | Income test still applies |
| Assets qualify the loan | Cash-heavy, income-light buyers | Account statements, credit, property | Statement and seasoning rules |
The third path is where an asset-based mortgage lives. Lendmire arranges these through select lenders in its network, in 16 states, Florida among them. Details below are subject to underwriting, and programs change.
The All-Cash Route
Cash is simple on paper. You send proof of funds with the offer, the seller’s side confirms the money exists, and the title agent verifies it before closing. No loan means no lender appraisal and no lender insurance requirements.
That simplicity has a price. You hold one large, slow-to-sell asset, and it carries recurring costs. Many buyers also find that a cash offer tempts them to overpay or skip diligence. Being able to afford it is not the same as it being a good price.
Your account types matter too. Cash and certificates of deposit are already cash. Brokerage balances take a sale, and retirement balances can bring costs when you pull them out, so talk to your advisor before liquidating anything. (Even a healthy portfolio can look thin once you strip out what you will not touch.)
Qualifying the Loan on Assets Alone
Under the asset qualifier path, your eligible assets must equal or exceed the whole loan amount. Nothing about your employment or income gets documented. There is no traditional personal-income documentation, no pay stubs and no employment verification. Through select programs, leverage tops out at 80% loan-to-value (LTV, the loan as a share of the home’s value) on a purchase and 75% on a refinance, for a principal residence or second home. Loans run up to $4,000,000.
Different assets count at different percentages on this path:
- Brokerage accounts, certificates of deposit, money market and savings count at 100%.
- A 401(k) or IRA counts at 90% if you are under 59½, and 100% at 59½ or older.
- Accounts combine.
Here is a worked example, and the lender’s own calculation governs. Say the loan is $800,000. You hold $330,000 in brokerage accounts (100% = $330,000), $300,000 in a 401(k) while under 59½ (90% = $270,000) and $200,000 in savings (100% = $200,000). That counts $800,000 of usable assets and is reviewed on assets alone, subject to underwriting.
Two timing rules apply. Seasoning is the minimum time money must sit in an account before a lender counts it. Here that is 60 days, backed by two months of statements for each qualifying account. Credit still matters: the published floor is a 600 score, and no one gets approved on balances alone. Reserves are not required at or below 75% LTV, and above that the lender sets them. Terms vary by lender guidelines, property type, leverage, credit profile, and full file review.
Turning Savings Into Income
On the asset depletion path, the lender converts your eligible assets into monthly qualifying income. It divides usable assets by 60 months. That income must then carry the full housing payment and your other debts through the debt-to-income test (DTI, monthly debts compared with monthly income).
Each asset type counts at a set percentage of its balance, and the share that counts is lower for less liquid assets on this path:
- Cash accounts and certificates of deposit count at 100%.
- Securities count at 80%. Privately held stock is not eligible on either path.
- Retirement accounts count at 70% at any age.
- Real-estate equity counts at 60%.
Run a worked example, illustrative only. Take $1,500,000 in securities (80% = $1,200,000) plus $300,000 in cash (100% = $300,000). That is $1,500,000 usable, divided by 60 months, or $25,000 of monthly qualifying income. That figure then has to carry the payment and other debts.
Here is where the path gets stricter. You need qualified assets of at least the lesser of $1,000,000 or 1.25 times the loan balance. If asset depletion is your only income, you also need at least $250,000 liquid. Statements must be at least 120 days old at application, plus one within 45 days.
Leverage on a second home runs up to 80% LTV on a purchase or rate-and-term refinance, and 60% on a cash-out refinance. Loans run from $125,000 to $3,500,000. Credit follows the lender’s matrix. Cash-out proceeds never count as qualifying assets. Exact terms depend on the lender’s guidelines, property type, leverage, and a full review of the borrower’s file.
Some assets are not eligible on this path: custodial accounts, deferred compensation, escrow accounts, foreign funds, cash on hand, privately held stock, stock options and non-vested restricted stock units. Canadian snowbirds, note the foreign-funds line. Cryptocurrency, precious metals and collectibles are not published as eligible on either path. The documented route is converting them to a seasoned balance in a regulated account, with the lender reviewing the source.
One borrower is reviewed on one path at a time. Never blend the two tables. For a deeper look at the mechanics, see Lendmire’s asset-based mortgage program page.
Which Path Fits You?
Pick by asking where your wealth sits and whether you earn anything.
- Mostly cash and brokerage, no paycheck: the asset qualifier path is built for you, provided your assets cover the full loan.
- Large portfolio, loan bigger than your liquid assets: the depletion path may work, since income is derived from assets and you keep some money invested.
- Steady pension or business income, plus savings: assets may supplement documented income on the depletion path, up to a 45% DTI. In that case the minimum-assets rule is waived.
- Plenty of cash, no wish to borrow: buy outright, and keep a cushion.
I also see a fourth group: buyers who could pay cash but would rather not. Financing keeps savings liquid for repairs, insurance surprises and medical bills. This one is a genuine toss-up. Cash removes a payment, but a loan keeps options open, and the right answer depends on how much of your net worth the home would eat.
How Much Savings Is Enough?
Count four layers before you make an offer: the purchase price, closing costs, a first-year ownership budget, and a reserve cushion. Total them, then compare against your liquid assets only. Retirement money you cannot touch without a hit does not belong in that math.
For an all-cash buy, ask whether the home plus its first year of costs would leave you comfortable if markets dropped. A sound test is whether you could still cover a year of living costs without selling the home. If the answer is no, you are buying too much house for your savings.
For an asset-qualified loan, the test is different. Your usable assets, after the percentages above, must clear the program’s thresholds. Then ask whether you can carry two homes’ costs. A snowbird who owns a northern home must show the ability to carry both, plus other debts, as HSH’s second-home mortgage article notes. Lenders on the depletion path look at your existing housing cost inside the DTI test.
Do not forget what sits outside the loan. Furnishing, utilities, travel and upkeep while you are away all come from savings.
Why DSCR Is the Wrong Tool for 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 treatment follows from federal rules that exempt business-purpose credit from the consumer-credit framework.
A snowbird who spends several months in the home is using it personally. So the file belongs in the second-home lane, where your income and assets get underwritten and rent generally does not help you qualify. DSCR does the opposite. It qualifies primarily on property-level rental income covering the payment, subject to lender guidelines, and it generally disallows personal use.
Some programs tolerate occasional personal visits. That varies by lender, so ask before you assume.
Do not call the home an investment to reach a DSCR loan. An LLC, a lease form or a stated plan does not change how you will actually use the home. Misrepresenting occupancy is not a workaround. A South Florida real-estate publication calls it one of the most-committed types of mortgage fraud in the state.
The asset depletion path does cover investment property, with leverage up to 65% LTV on a purchase or rate-and-term refinance and 60% on a cash-out. That is a different file: a business-purpose loan on a home you will not occupy. Every figure here varies by lender and program, and guidelines, property type, leverage, and credit profile all apply.
The Florida Cost Layer
Cash buyers face a trap here. With no lender, nobody forces you to check insurability before you sign. Do it anyway. Get a real insurance quote for the exact address, confirm flood-zone status, and ask how coverage handles a home left empty for months.
Condos add another layer. Many associations cap the number of non-owner-occupied units, and too many investor-owned units can make financing hard to find, per South Florida reporting. Ask for the association’s rules and reserve status before you offer on a unit. If you plan to rent the unit, check the rental rules first. Short-term rental rules can vary by city, county, HOA, and property type, so confirm local rules before relying on projected rental income.
Upkeep matters too. A home sitting empty needs someone to check it, run the water and handle storm prep.
Rent First or Buy Now?
Rent first if you have never spent a full winter in the area. A single season tests the neighborhood, the commute to the beach or the doctor, and whether you want to be in one place every year. It costs far less than finding out after you own.
Buy now if you already know the area, your savings clear the thresholds comfortably, and you can handle ongoing costs. Real snowbirds who can pay cash often weigh price run-ups against waiting and renting, though that discussion is dated, so treat it as color rather than data.
Mistakes That Cost Snowbirds
- Treating a cash offer as a license to overpay. Seller leverage and your own comfort should set the price.
- Counting retirement money at face value. Each program counts it at a percentage, and pulling it out can cost you.
- Skipping the insurance quote. Do it before contract, not after.
- Buying sight unseen. Walk the property, the street and the building.
- Drifting into mixed use. A home you occupy and also rent is a classification problem. Pick one lane.
- Assuming the 14-day test is a lending rule. It is a tax-classification test: IRS Publication 527 treats a dwelling as used as a home when personal use exceeds the greater of 14 days or 10% of rental days, and the University of Illinois Tax School describes the same threshold. Tax treatment varies; consult a qualified professional.
Key Terms Defined
Asset qualifier path: a program route where eligible assets must cover the entire loan and no employment or income is documented.
Asset depletion path: a route that divides usable assets by 60 months to create monthly qualifying income, which then runs through the DTI test.
Seasoning: the time funds must sit in an account before a lender counts them.
Haircut: the share of an account’s balance a lender refuses to count, to allow for market swings or access costs.
Second home: a home you occupy part of the year, not subject to rental arrangements.
Frequently Asked Questions
Can I use retirement accounts to buy a winter home?
Yes, in two ways. On the asset qualifier path, a 401(k) or IRA counts at 90% if you are under 59½ and 100% at 59½ or older. On the depletion path, retirement accounts count at 70% at any age. Using them as cash is a separate matter, since pulling money out can carry costs, so speak with your advisor first.
Do I still need reserves if I pay cash?
No lender requires them, but you should keep your own. On the asset qualifier path, reserves are not required at or below 75% LTV, and above that the lender sets them. A cushion for insurance, repairs and a down market is sound planning even with no loan. Final terms depend on lender guidelines, property type, leverage, and the borrower’s complete credit picture.
Can I rent the home when I am away?
It depends on the file. On a second-home loan, rent generally does not count toward qualifying, and renting complicates occupancy. A pure rental that you never occupy belongs in an investment file instead. Choose a lane before you buy, because the label decides the paperwork.
Can I qualify with no income at all?
On the asset qualifier path, no employment or income is documented, but the file is fully underwritten. The assets are documented with statements, and credit still counts, with a published floor of a 600 score. Approval is never promised, and every file is reviewed individually.
Is the program available to Canadian snowbirds?
Not through the funds route in most cases. Foreign funds are not eligible on the depletion path, and the program is offered only in 16 states. Canadian buyers usually need a different documentation route, so ask before you plan around it.
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. Reach the team at 828-256-2183 or request a quote.
Lendmire’s asset-based mortgage in Florida page presents the program for Florida 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.
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. HSH, second-home mortgage article
2. CFPB, Regulation Z § 1026.3
3. South Florida Sun Times, property rules for snowbirds
4. Bogleheads forum thread on snowbird buying
6. University of Illinois Tax School, tax rules for rentals and vacation homes
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 an Ohio Retiree Get a Mortgage on Savings and Investments Alone? · Can a Pennsylvania Snowbird Buy a Winter Home on Savings Alone? · Can You Buy a Home on Savings While Your Business Is Still Ramping Up?
Guides: Asset-Based Mortgage in Florida
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
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.