The Quick Read: Yes, but only in two ways: you pay all cash, or your savings and investments themselves qualify the loan through an asset-based mortgage, where the lender checks documented balances instead of pay stubs, and every file is still underwritten, subject to lender guidelines, credit, and the property. Savings are never a free pass. They either leave your account in full, or they get documented and tested.
- All cash needs no loan, but it drains liquidity you may want for the next twenty years.
- An asset-based mortgage uses your statements in place of traditional personal-income documentation, pay stubs, or employment verification.
- The asset qualifier path covers the whole loan with eligible assets. The asset depletion path turns assets into monthly qualifying income.
- A winter home you live in is personal use. Rental-income loans fit only a home you truly rent out.
- Programs change, and every file is underwritten individually.
What Does “On Savings Alone” Actually Mean?
Three different things hide inside that phrase, and each follows a different rulebook.
1. You pay all cash. No lender is involved, so no loan qualification applies.
2. You use savings for the down payment and finance the rest on your income. Your paychecks, pension, and debts are typically reviewed as part of the loan qualification.
3. Your savings qualify the loan. The loan is reviewed on verified assets rather than income documentation, subject to lender guidelines.
Most snowbirds asking this question mean number three. They are retired, selling a business, or living off a portfolio. Their balances are large and their documented income is small. Number three is where this article spends most of its time.
One note for a Georgia home base: the program figures below do not change by state. Your winter home usually sits somewhere else, so the state where you buy matters too. Consumer mortgage lending through Lendmire’s program covers 16 states: Alabama, California, Colorado, Florida, Georgia, Indiana, Michigan, Montana, New Mexico, North Carolina, Ohio, Pennsylvania, Tennessee, Texas, Virginia, and Washington. Lendmire is a broker. It arranges these loans through select lenders in its network, and it does not lend itself.
Paying All Cash: The Simplest Path With a Real Cost
Cash is the cleanest route. It is also the one that leaves you with the least flexibility afterward.
NAR’s profile of home buyers found that all-cash purchases averaged 26% over the last year, an all-time high. NAR’s own breakdown shows that figure covers primary-residence buyers only. Buyers of vacation homes and investment properties pay cash even more often. NAR also notes that buyers with significant housing equity are making larger down payments and all-cash offers.
So you would not be unusual. But cash has three costs:
- Liquidity. After closing, the money is in drywall. You cannot spend it on a medical bill or a market dip.
- Liquidation. Selling investments or pulling from retirement accounts to fund a purchase can trigger taxes. A tax professional can run that math before you sell anything.
- Concentration. A second home is one asset in one place, with upkeep.
A common middle path is cash for part of the price, with a loan covering the rest. A broker sees this often when the buyer wants the savings kept invested.
Savings as a Down Payment Only
If you use savings for the down payment and finance on income, the lender tests your income. For a retiree, that means pension, Social Security, or documented withdrawals.
A second-home loan also adds a payment to your debt-to-income ratio, which is the share of monthly income that goes to debt. If you tap a home equity line or do a cash-out refinance on your Georgia home to fund the down payment, those payments count too. Rent from the winter home does not help you qualify when you plan to live there.
For a cash-heavy, income-light buyer, this path often stalls. The balances are there. The qualifying income is not.
When Your Savings Qualify the Loan
This is the asset-based route. Lendmire’s asset-based mortgage program offers two paths, and a borrower is qualified on one path at a time. Never blend them.
The asset qualifier path: assets cover the whole loan
On this path, your eligible assets, after the credit percentages below, must equal or exceed the entire loan amount. You document no employment and no income. You do document the assets, with statements.
Typical ceilings, subject to underwriting and through select programs:
- Up to 80% loan-to-value (LTV, the loan as a share of the home’s value) on a purchase.
- Up to 75% on a refinance, on a principal residence or second home.
- Loans up to $4,000,000.
- A 600 minimum credit score.
| Asset (qualifier path) | Share that counts |
|---|---|
| Brokerage accounts | 100% |
| CDs, money market, savings | 100% |
| 401(k) or IRA, under age 59½ | 90% |
| 401(k) or IRA, 59½ or older | 100% |
Accounts combine. Here is an illustration. The lender’s own calculation governs. Take an $800,000 loan. You hold $330,000 in brokerage accounts (100% = $330,000), $300,000 in a 401(k) under 59½ (90% = $270,000), and $200,000 in savings (100% = $200,000). That counts $800,000 of usable assets, so the file is reviewed on assets alone.
On this path, reserves are not required at or below 75% LTV. Above that, the lender sets them. Whether cash-out proceeds are allowed on this path is the lender’s call, so do not plan around it. Terms vary by lender guidelines, property type, leverage, credit profile, and full file review.
The asset depletion path: assets become income
This path divides your usable assets by 60 months to create a monthly qualifying income. That income then has to carry the housing payment and your other debts through the debt-to-income test.
Typical ceilings, again subject to underwriting:
- On a principal residence or second home, up to 80% LTV on a purchase or rate-and-term refinance, and 60% on a cash-out.
- On an investment property, up to 65% on a purchase or rate-and-term refinance, and 60% on a cash-out.
- Loans from $125,000 to $3,500,000.
- Credit follows the lender’s matrix. A first-time investor on this path needs a 700 score. Exact terms depend on the lender’s guidelines, property type, leverage, and a full review of the borrower’s file.
| Asset (depletion path) | Share that counts |
|---|---|
| Cash accounts, CDs | 100% |
| Securities | 80% |
| Private stock | 75% |
| Retirement accounts | 70% at any age |
| Real-estate equity | 60% |
Another illustration. Say you hold $1,500,000 in securities (80% = $1,200,000) and $300,000 in cash (100% = $300,000). That is $1,500,000 usable, divided by 60 months, for $25,000 of monthly qualifying income. That income then carries the housing payment and other debts through the debt-to-income test.
This path has minimums. Qualified assets must be at least the lesser of $1,000,000 or 1.25 times the loan balance. And you need no less than $250,000 liquid when assets are your only income source. Cash-out proceeds never count as qualifying assets. Asset income can also supplement documented income up to a 45% debt-to-income ratio. When it does, the minimum-assets rule is waived.
Most programs in the network work this way. Few lenders publish these numbers, so expect them to be ceilings and floors, not offers.
Which path fits you?
The qualifier path suits borrowers whose liquid balances are at least the size of the loan. The depletion path suits borrowers who need their assets turned into income, often because they want more flexibility on the loan size. It is also the only path that reaches investment property.
Seasoning, Statements, and Credit
Savings must be real and settled. Underwriters check that.
- Qualifier path: 60 days of seasoning and two months of statements for each qualifying account.
- Depletion path: statements 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.
- Credit: a clean housing history matters. The standard is 0x30x12, though one 30-day late in the last twelve months is considered case by case. Multiple bankruptcies are not eligible.
Some assets do not count on either path. Crypto, precious metals, collectibles, and borrowed or pledged funds are not published as eligible. The documented route is converting them to a seasoned cash balance in a regulated account, with the source reviewed by the lender. On the depletion path, cash on hand, stock options, and foreign funds are also out.
This is not a no-doc loan. It means no traditional personal-income documentation, pay stubs, or employment verification. Statements get read line by line.
Second Home or Rental? The Label Decides Everything
Picture two snowbirds with identical balances. One lives in the winter home from November to April. The other rents it out most of the year and stays a few weeks. They are on different tracks.
If you live in the home, it is a second home. That is personal use. A second home must be a one-unit property. Rent does not help you qualify, and the loan is a consumer mortgage, so consumer disclosures apply. The asset-based paths above fit this file.
If you plan to rent the home most of the year and not live there, it is an investment property. 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. A DSCR loan is reviewed primarily on property-level rental income covering the payment, subject to lender guidelines. It still requires a down payment, credit review, and reserves, and you sign a certification that you will not live there. The trade is simple: second-home financing gives up using rent to qualify, and DSCR gives up personal use.
Some DSCR programs allow minimal owner stays and others do not. Ask before you apply.
The label is not something you can dodge with an LLC or by charging yourself rent. Under the federal rule on business-purpose credit, the CFPB’s Regulation Z commentary says the creditor must decide, in each case, whether the transaction is primarily for an exempt purpose. Your real use is the question, not the paperwork.
The IRS runs its own personal-use test for rental homes, in IRS Publication 527, and passing it does not make a loan eligible; tax treatment varies, so consult a qualified professional.
Short-term rental rules can vary by city, county, HOA, and property type, so investors should confirm local rules before relying on projected rental income.
Side by Side: Cash, Asset-Based, Income-Based
| Factor | All cash | Asset qualifier | Asset depletion | Income-based |
|---|---|---|---|---|
| What gets tested | Proof of funds | Asset total vs. loan | Derived income, DTI | Your income, DTI |
| Savings after closing | Mostly gone | Stay invested | Stay invested | Mostly stay |
| Income documents | None | None | None | Full |
| Asset statements | Yes | Yes | Yes | Down payment |
| Can reach investment property | n/a | No | Yes | Varies |
The honest tradeoff is liquidity against structure. Cash avoids underwriting but drains your account. The asset-based paths keep your money invested while a lender tests your balances. A mortgage payment is a new fixed cost in retirement, so size it with care. This one is a toss-up depending on how much of your net worth sits in the account and how you feel about debt.
Key Terms Defined
Asset-based mortgage: a loan where documented assets, not employment income, are what the lender tests.
Asset qualifier path: the version where eligible assets must equal or exceed the whole loan.
Asset depletion path: the version where usable assets divided by 60 months become qualifying monthly income.
Seasoning: how long money has to sit in an account before the lender counts it.
Loan-to-value (LTV): the loan amount as a percentage of the home’s value or price.
Debt-to-income (DTI): the share of your monthly income that goes to debt payments.
Can You Do This on Savings Alone? A Quick Checklist
Answer yes or no to each.
1. Will you live in the winter home? If yes, it is a second home. Rental loans are out.
2. Are your balances at least the size of the loan? If yes, look at the qualifier path.
3. Is most of your wealth in securities or retirement accounts? Expect haircuts, and look at the depletion path.
4. Is your money in crypto, metals, or borrowed funds? Plan to convert it to seasoned cash first.
5. Has the money sat in the account long enough for the statements to season?
6. Is the winter home in a state where the program is licensed?
7. Can you live comfortably after paying cash or after a new loan payment? Keep an emergency cushion either way.
If you answered no to numbers 5 or 6, stop and fix those first.
Where Savings Alone Won’t Work
Be honest about the limits.
- Thin balances. The depletion path wants at least the lesser of $1,000,000 or 1.25 times the loan, and never less than $250,000 liquid when assets are your only income source.
- Weak credit. Savings cannot make up for a score below the floor or a recent housing event.
- Young money. Funds that landed in your account last week are not seasoned.
- A multi-unit property. A second home must be one unit.
When savings alone fall short, the usual fixes are a smaller purchase, a larger down payment, or waiting until the balances season. Sometimes the right move is a mix: some cash, some financing.
Frequently Asked Questions
Can I buy a winter home with cash and no loan at all?
Yes. A cash purchase typically involves no lender underwriting, though sellers and title companies usually ask for proof of funds. The tradeoffs are liquidity and, when you sell investments to raise the cash, possible taxes. A tax professional can model that before you commit.
Do I need pay stubs or traditional personal-income documentation for an asset-based mortgage?
No. The program uses no traditional income documentation, pay stubs, or employment verification. It does require statements for the qualifying accounts, a credit review, and an appraisal, and it is fully underwritten.
Can I use my 401(k) or IRA?
Yes, with a haircut. On the qualifier path, retirement balances count at 90% under age 59½ and 100% at 59½ or older. On the depletion path they count at 70% at any age. Each is subject to underwriting.
Can I rent the home out sometimes and still use it as a second home?
Not safely. Second-home and rental loans each assume a different primary use. If you plan to rent it most of the year and stay only briefly, ask whether the program allows owner stays before applying.
Does a Georgia address change the program figures?
No. The figures stay the same. The winter home’s state matters because the program is licensed in 16 states. Taxes and insurance there are context, not program terms.
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. This is not a commitment to lend.
Lendmire’s asset-based mortgage in Georgia page presents the program for Georgia borrowers.
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.
Investors who want the broader program framework can review how DSCR loans work.
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References
1. NAR 2025 Profile of Home Buyers and Sellers press release
2. NAR Top 10 Takeaways from the Profile of Home Buyers and Sellers
3. CFPB Regulation Z, section 1026.3
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 a Florida Retiree Get a Mortgage on Savings and Investments Alone? · Can You Use an Asset-Based Mortgage to Buy a Pennsylvania Home for Your Parents? · Can You Buy a Second Home in Georgia on Assets Instead of Income?
Guides: Asset-Based Mortgage in Georgia
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
Compliance and disclosures. Lendmire (NMLS# 2371349) is a licensed mortgage broker and is not a direct lender, depository institution, financial advisor, or tax professional. Content in this article is general market analysis and educational information — not financial, legal, or tax advice for any specific situation. Lendmire does not guarantee loan approval; every transaction is subject to underwriting by the funding lender. Mortgage pricing and loan program guidelines are subject to change at any time without notice and vary by borrower characteristics, property type, and state regulations. Lendmire complies with Equal Housing Opportunity. Licensure verification: NMLS Consumer Access.