The Quick Read: A retiree with large savings and little wage income can qualify on assets instead of a paycheck, through select programs placed by a broker like Lendmire. One route counts your eligible assets against the whole loan. The other converts those assets into a monthly qualifying income. Both are fully underwritten, and you document the assets with statements, not traditional personal-income documentation, pay stubs or employment verification.
- Asset qualifier path: eligible assets must equal or exceed the entire loan. No income is documented.
- Asset depletion path: usable assets divided by 60 months become qualifying income, tested against your debts.
- Leverage: up to 80% on a purchase on the qualifier path, subject to underwriting.
- Accounts: retirement balances count at 90% under age 59½ on the qualifier path, 70% on the depletion path.
- Footprint: this consumer program is available in Michigan, one of 16 licensed states.
Picture a retired couple in Grand Rapids. They hold a seven-figure portfolio and draw almost nothing in taxable income. A lender that only reads traditional personal-income documentation sees a thin file. A lender that reads the statements sees a strong one. The programs below exist for that gap.
Can Retirement Alone Disqualify You?
No. A lender may weigh how long your income will last, but retirement itself is not a reason to say no. Under CFPB Regulation B, a creditor cannot discount income because it comes from a pension, annuity or other retirement benefit. The same rule says income is judged on your own circumstances, not group statistics, and age alone cannot sink an application.
So the real question is documentation. Most mortgage underwriting wants a paycheck or a tax return that proves income. Retirees often have neither in useful form. Asset-based underwriting fixes that by reading your balances directly.
Which Path Fits You?
Pick the qualifier path if your eligible assets cover the whole loan. Pick the depletion path if you want assets turned into income, or if you plan to supplement other income. You are qualified on one path at a time, and the two use different asset percentages, so never mix the tables.
| Factor | Asset qualifier | Asset depletion |
|---|---|---|
| How it works | Assets cover the entire loan | Assets ÷ 60 months = income |
| Income documented | None | Derived, then tested on DTI |
| Purchase leverage | Up to 80% | 80% (home); 65% (investment) |
| Refinance leverage | Up to 75% | 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 |
All figures are ceilings and floors across select programs, subject to underwriting. They are not offers. On the depletion path, a home means a principal residence or second home. Investment property runs lower: 65% on a purchase or rate-and-term refinance and 60% on a cash-out. On the qualifier path, cash-out terms are set by the lender and are not published.
How the Asset Qualifier Path Works
You qualify when your eligible assets, after the credit percentages, equal or exceed the entire loan amount. The lender does not document employment or income. It still underwrites the file, checks credit and reviews the property.
Here is how balances count on this path:
- Brokerage accounts, certificates of deposit, money market and savings count at 100%.
- A 401(k) or IRA counts at 90% under age 59½ and 100% at 59½ or older.
- Accounts combine.
Run an illustrative example. Say the loan is $800,000. You hold $330,000 in brokerage accounts (100% counts $330,000). You hold $300,000 in a 401(k) under 59½ (90% counts $270,000). You hold $200,000 in savings (100% counts $200,000). Usable assets total $800,000, so the file is reviewed on assets alone. The lender’s own calculation governs.
Seasoning applies. The assets typically need 60 days in the account, with two months of statements for each one. Reserves are generally not required at or below 75% loan-to-value. Above that, the lender sets them. Credit starts at a 600 minimum score, and housing history is reviewed closely. A single recent late payment may be considered case by case.
How the Asset Depletion Path Works
Here your assets become income. The lender takes usable assets, divides by 60 months, and treats the result as monthly qualifying income. That income must then carry the housing payment and your other debts through the debt-to-income test.
The haircuts on this path are different, and stricter on retirement money:
- Cash and certificates of deposit count at 100%.
- Securities count at 80%.
- Private stock counts at 75%.
- Retirement accounts count at 70% at any age.
- Real-estate equity counts at 60%.
Not eligible here: 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.
Try an illustrative example. You hold $1,500,000 in securities (80% counts $1,200,000) and $300,000 in cash (100% counts $300,000). Usable assets are $1,500,000. Divided by 60 months, that is $25,000 of monthly qualifying income. That income then has to carry the housing payment and other debts through the debt-to-income test, with the lender’s calculation governing.
Minimums matter. Qualified assets generally must be at least the lesser of $1,000,000 or 1.25 times the loan balance. They can never fall below $250,000 liquid when depletion is your only income source. If you also have Social Security or a pension, asset-derived income can supplement it up to a 45% debt-to-income ratio, and the minimum-assets rule is waived in that case.
Statements run on a different clock here. They must be at least 120 days old at application, plus a recent statement within 45 days. Funds from a business sale, inheritance or legal settlement are excused from that seasoning. A first-time investor on this path needs a 700 score.
Where the Rules Break
Retirement accounts are the main wrinkle. Under IRS Publication 590-B, IRA withdrawals before age 59½ generally carry a 10% additional tax, and required distributions do not begin until age 73. That is why an early retiree’s account often gets a lower credit percentage than the same balance would at 59½. You can see it in the qualifier table: 90% under 59½, 100% after.
Other edge cases come up often:
- Crypto, precious metals and collectibles. These 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 source reviewed.
- Borrowed or pledged funds. Not published as eligible. Do not plan around them.
- Cash-out proceeds. On the depletion path they never count as qualifying assets.
- Multiple bankruptcies. Not eligible. A housing event needs four years of seasoning on the depletion path.
- Home equity as your main asset. It counts at only 60% on the depletion path, so a house-rich, cash-poor retiree may fall short.
One more point on regulation. The CFPB proposed a Regulation B rewrite that addresses disparate-impact claims and special purpose credit programs. It is a proposal, so do not assume the final text matches today’s.
What About Social Security and Pensions?
They count as income, and you can stack them with assets. If your pension and Social Security cover part of the payment, the depletion path can fill the gap, up to that 45% ratio. A retiree who still works part time can do the same. Under Regulation B, a creditor may also consider a planned drop in income due to retirement, which matters if you are a few months from stopping.
This is the blended route. It often beats leaning on assets alone, because the asset minimum no longer applies once you supplement documented income.
Michigan Situations
The program figures do not change by state, but your situation might. A few common shapes:
- The downsizer. You sell the family house and buy smaller. Sale proceeds sitting in savings can season on the qualifier path, often covering the loan outright.
- The northern or lake-home buyer. A second home is eligible on both paths, with the same leverage as a primary residence. Expect the lender to review the property closely.
- The buyout or pension retiree. Auto-industry retirees often hold a lump sum in a rollover IRA. The age-59½ line decides whether it counts at 90% or 100% on the qualifier path.
- The early retiree in their 50s. The depletion path’s 70% retirement haircut applies at any age, so a brokerage account helps more than an IRA does.
State facts like property taxes and insurance are context for your budget. They are not program parameters.
What About an Investment Property?
Only the depletion path covers it, and only up to 65% on a purchase or rate-and-term refinance and 60% on a cash-out. That loan is business-purpose. If instead the rent carries the payment and you want to qualify on the property, that is a different product built for investors. Lendmire’s explainer on super jumbo DSCR loans for asset-rich retirees covers it. Some select lenders will review coverage below 1.00, but leverage and terms adjust.
This is also not a bank-statement loan, which suits borrowers who document income through deposits.
Prepare Your Statements
1. List every account you may use, and note its type. 2. Check each balance has been in place long enough: 60 days on the qualifier path, statements 120 days old on the depletion path. 3. Pull the required statements for each account. 4. Explain any large deposit with paper, such as a sale closing statement. 5. Check your credit and housing history before you apply.
The asset-based mortgage program is placed through select lenders in Lendmire’s network. Consumer lending is licensed in 16 states, including Michigan. Because it is a consumer mortgage, standard disclosures apply.
Key Terms Defined
Seasoning: the time funds must sit in an account before a lender counts them.
Haircut: the share of a balance a lender discounts because the asset can lose value or carries a penalty.
Debt-to-income (DTI): your monthly debts divided by your monthly income, used to test whether you can carry a loan.
Asset depletion: converting usable assets into a monthly qualifying income by dividing them over a set period.
Qualifying assets: the balances that count after the program’s percentages are applied.
Frequently Asked Questions
Can I use only my 401(k) to qualify?
Sometimes. On the qualifier path a 401(k) counts at 90% under 59½ and 100% after, but the total of all eligible assets must cover the whole loan. On the depletion path it counts at 70% at any age, and the minimum-asset rules apply. Subject to underwriting.
Is this a no-doc loan?
No. Every file is fully underwritten and your assets are documented with statements. What you skip is traditional personal-income documentation, pay stubs and employment verification.
Do I need to sell my investments?
Not necessarily. Brokerage accounts count toward qualifying while they stay invested. Cash you plan to use as a down payment or closing funds comes out of the usable total first.
Does my age count against me?
No. Federal fair-lending rules bar using age as a reason to decline, and lenders can weigh how long income will last. The program has no published maximum age.
What if I am retired before 59½?
You can still qualify. The IRA and 401(k) credit is lower on the qualifier path (90%), and the depletion path uses 70%. Cash and brokerage balances carry the most weight.
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. Tax treatment varies; consult a qualified professional.
Lakeshore buyers in Michigan will find that the age on the birth certificate matters less than the age of the statements in the file.
Lendmire’s asset-based mortgage in Michigan page presents the program for Michigan 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.
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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
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 Georgia Buyer Qualify for a Mortgage on IRA Assets Without Withdrawals? · Can You Qualify for a Mortgage If Your Income Is in a Foreign Currency? · How Much Does a Startup Founder Need in Assets to Qualify for a Mortgage?
Guides: Asset-Based Mortgage in Michigan
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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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.