The Quick Read: Yes, a Michigan snowbird can buy a winter home on savings alone, either by paying all cash or by qualifying for a loan on assets instead of paycheck income. A DSCR loan is not the tool when the buyer will live in the home, because DSCR loans are built for rentals.
- All cash needs no lender, only proof of funds, but it drains liquidity.
- Savings as a down payment still means income is tested on a standard second-home mortgage.
- An asset qualifier path can cover the whole loan with eligible assets and no employment or income documented, subject to underwriting.
- An asset depletion path turns assets into qualifying income by dividing usable assets by 60 months.
- Every file is fully underwritten, and the assets are documented with statements.
What Does “Savings Alone” Actually Mean?
It means one of three things, and mixing them up is where most snowbird plans go sideways. The first is all cash. The second is savings as a down payment with income carrying the loan. The third is savings that qualify the loan with no income documented.
Each path has a different paper trail. Cash has the lightest one, and the asset-based loan has the most unusual one. The middle path is the conventional second-home mortgage, which tests income, debts and assets together.
A retiree with a seven-figure portfolio and a small pension often looks weak on the middle path. That gap is exactly what asset-based programs were built to close.
Is Paying All Cash Common for This Buyer?
Yes. NAR’s Economists’ Outlook reports from its REALTORS® Confidence Index that 57% of vacation-home buyers and 56% of investment buyers paid all cash over a recent 10-month window. The same page puts the share of all buyers paying cash in October 2025 at 29%. Those are broad categories, not snowbird-specific data, so treat them as a signal of what a financed offer competes against.
Cash has real advantages: no loan fees, and sellers like it. The cost is liquidity. Once the savings go into the house, there is no cushion for a roof, an assessment or a bad market year. An investor also has to weigh the opportunity cost of parking that capital in a personal-use home instead of deploying it elsewhere.
What cash still requires: proof of funds to the seller and title company. “Savings alone” never means “no paperwork.”
Why Not Just Use a DSCR Loan?
Because a DSCR loan is a business-purpose rental loan, and a home you winter in is a personal-use home. DSCR files qualify primarily on property-level rental income covering the payment, subject to lender guidelines. The borrower certifies the property is not owner-occupied.
Federal commentary draws the line plainly. The CFPB’s Regulation Z commentary says that if an owner expects to occupy a property more than 14 days in the coming year, it cannot be treated as non-owner-occupied under the business-purpose rule. It gives a beach house the owner uses for a month each summer as an owner-occupied example. A snowbird who stays for months is far past that line.
Misstating occupancy on an application is a serious problem, not a technicality. Putting the house in an LLC does not fix it, because occupancy follows actual use. DSCR stays the right tool for the properties you genuinely rent out. The winter home is a separate file.
How Does an Asset-Based Mortgage Qualify a Retiree?
It drives lender review on what you own rather than what you earn. Across the wholesale network, two paths exist, and a borrower is qualified on one path at a time. Lendmire brokers these through asset-based mortgage programs placed with select lenders, and every file is underwritten individually.
The asset qualifier path. Eligible assets, after the credit percentages, must equal or exceed the entire loan amount. No employment or income is documented. Leverage runs up to 80% on a purchase and 75% on a refinance, subject to underwriting. Loans go up to $4,000,000. The credit floor is 600.
The asset depletion path. Usable assets are divided by 60 months to produce a monthly qualifying income. That income then carries the housing payment and other debts through the debt-to-income test. Leverage on a second home runs up to 80% on a purchase or rate-and-term refinance and 60% on a cash-out. Loans run from $125,000 to $3,500,000. Credit follows the lender’s matrix. The minimum is qualified assets of at least the lesser of $1,000,000 or 1.25 times the loan, and never below $250,000 liquid when depletion is the only income source.
Both paths document the assets. The phrase is “no tax returns, pay stubs or employment verification,” never “no documentation.”
What Counts, and at What Percentage
| Asset | Qualifier path | Depletion path |
|---|---|---|
| Brokerage / securities | 100% | 80% |
| Cash, savings, money market | 100% | 100% (cash accounts) |
| Certificates of deposit | 100% | 100% |
| Retirement accounts | 90% under 59½, 100% after | 70% at any age |
| Private stock | Not published | 75% |
| Real-estate equity | Not published | 60% |
These are the share of each balance that counts, subject to underwriting. Accounts combine on the qualifier path.
Not eligible on the depletion 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. Crypto, precious metals and collectibles 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 by the lender.
What Does the Math Look Like?
Run the numbers on a qualifier example first. Say the loan is $800,000. The borrower holds $330,000 in brokerage accounts (100% counts, so $330,000), $300,000 in a 401(k) while under 59½ (90% counts, so $270,000), and $200,000 in savings (100%, so $200,000). That is $800,000 of usable assets against an $800,000 loan, which is reviewed on assets alone, subject to underwriting.
Now a depletion example. Take $1,500,000 in securities (80% counts, so $1,200,000) plus $300,000 in cash (100%, so $300,000). Usable assets are $1,500,000. Divide by 60 months and the qualifying income is $25,000 a month. That income then has to carry the housing payment and other debts through the debt-to-income test.
Both examples are illustrative. The lender’s own calculation governs.
Consider a Michigan retiree who is 58 with most of the portfolio in a 401(k). On the qualifier path that balance counts at 90%. On the depletion path it counts at 70%. The age and the account mix change which path fits, which is why a broker looks at both before choosing.
Seasoning and Statements
Seasoning is where files stall. On the qualifier path, funds need 60 days of seasoning, with two months of statements for each qualifying 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.
The practical habit: do not move money around right before applying. Large transfers between accounts create questions about source, and borrowed or pledged funds do not qualify. Keep statements consistent and complete, every page.
Reserves are simple on the qualifier path. None are required at or below 75% loan-to-value, and above that the lender sets them. The depletion path publishes no reserve months.
Which Path Fits Which Snowbird?
The path depends on the shape of the balance sheet. Assets that cover the whole loan outright point to the qualifier path. A portfolio that is large but short of the loan amount, or one the borrower wants to turn into income, points to depletion.
| Situation | Likely fit |
|---|---|
| Buying all cash | No lender; proof of funds only |
| Income carries it, savings as down payment | Conventional second-home mortgage |
| Assets exceed the loan, no income documented | Asset qualifier path |
| Large portfolio, wants it counted as income | Asset depletion path |
| House will be rented out, not lived in | DSCR, a separate file |
A conventional second-home mortgage is tested on income, debts and assets under agency-style rules. HSH’s second-home guide says that if you need the rental income to qualify, you must apply for an investment-property mortgage instead.
Can the Winter Home Be Rented Out Too?
Light rental use does not change the picture much, but heavy rental use does. A month of owner use plus rental the rest of the year still reads as owner-occupied under the CFPB’s beach-house example. Renting a few weeks does not turn a getaway into an investment.
Do not confuse the lender’s occupancy rule with the tax test. They use similar numbers and measure different things.
Tax treatment varies; consult a qualified professional.
If the real plan is to rent the house out and stay only briefly, the file belongs in a different lane, and that decision belongs before contract, not after. A clear plan on use keeps the application accurate.
What About Your Michigan Home?
It can be the funding source, the anchor, or the thing you sell. Many Michigan snowbirds keep the northern home and use a cash-out refinance on it to fund a cash purchase down south. That is a funding option, not a qualification shortcut. Point’s cash-out guide notes the drawbacks: a bigger balance on your primary home, and closing costs charged on the larger amount.
Selling the Michigan home and buying outright is the cleanest cash route, but it removes your northern base. Borrowing against it keeps the base and adds debt.
Government loans are not an option here. South Florida Sun Times reports that FHA, VA and USDA loans are primary-residence only.
Key Terms Defined
Asset qualifier path: the route where eligible assets equal or exceed the whole loan and no income is documented.
Asset depletion path: the route where usable assets divided by 60 months become qualifying monthly income.
Seasoning: the period funds must sit in an account before they count.
Usable assets: the share of each balance that counts after the program’s percentages.
Non-owner-occupied: a property the borrower does not live in, the category DSCR loans are built for.
Common Mistakes
- Treating a winter home as a DSCR deal. Months of personal use rule it out.
- Counting a full retirement balance. It counts at 90% or 70%, depending on the path.
- Moving large sums right before applying. It muddies the source and the seasoning.
- Assuming no paperwork. Statements, credit and underwriting still apply.
- Reading broad national cash-buyer data as snowbird data.
This route may not fit if your assets do not cover the loan on the qualifier path, fall below the depletion minimums, or if your credit is under the program floor. Loans are placed through select lenders and are not a commitment to lend.
Frequently Asked Questions
Can I use rental income from the winter home to qualify?
On a standard second-home mortgage, generally no. If rental income is what makes the loan work, the property is treated as an investment, and that is a DSCR-style file with a certification that you will not live there.
Do retirement accounts count?
Yes, at a reduced share. On the qualifier path, 401(k) and IRA balances count at 90% under age 59½ and 100% after. On the depletion path they count at 70% at any age. Withdrawals are not required to qualify, though the lender reviews the account statements.
What is the biggest difference between the two asset paths?
The qualifier path needs assets to cover the whole loan and documents no income. The depletion path turns assets into monthly income that must clear the debt-to-income test. A borrower is qualified on one path at a time.
Does paying cash really beat financing?
Not always. Cash saves loan costs and wins offers, but it leaves no cushion. Many buyers weigh that against keeping liquidity for other uses.
Is the program available in every state?
No. Lendmire’s consumer asset-based lending is licensed in 16 states: Alabama, California, Colorado, Florida, Georgia, Indiana, Michigan, Montana, New Mexico, North Carolina, Ohio, Pennsylvania, Tennessee, Texas, Virginia and Washington. Whether a specific winter-home state is covered depends on that list.
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 Michigan page presents the program for Michigan borrowers.
About Lendmire
Lendmire is a mortgage brokerage (NMLS# 2371349) licensed for consumer mortgage lending in 16 states, arranging bank statement and other alternative-documentation mortgages — P&L-only, 1099-only and asset-based paths — through a wholesale lending network. Eligibility is determined by the lender on each file. 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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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. NAR Economists’ Outlook on cash buyers
2. CFPB Regulation Z Comment 1026.3
3. HSH second-home mortgage guide
4. Point cash-out refinance guide
5. South Florida Sun Times on snowbird property rules
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 You Buy a Second Home in Georgia on Assets Instead of Income? · Can You Relocate to Michigan and Buy a Home on Assets Before You Have Local Income? · Can a Virginia Retiree Get a Mortgage on Savings and Investments Alone?
Guides: Asset-Based Mortgage in Michigan
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.