The Quick Read: A retiree with large savings and no wages can qualify by letting assets do the work that a paycheck normally does. Through select programs, assets either cover the whole loan outright or get converted into a monthly qualifying income. Every file is still fully underwritten, and the assets are documented with statements.
- Path one, asset qualifier: eligible assets must equal or exceed the entire loan amount. No employment or income is documented.
- Path two, asset depletion: usable assets are divided by 60 months to create qualifying income, which then runs through the debt-to-income test.
- One path at a time: a borrower is qualified on one path, never a blend of the two.
- Paperwork: the file needs no traditional personal-income documentation, pay stubs or employment verification. It does need account statements, credit and a property review.
- Fit: these programs suit a home you will live in or a second home. Rental purchases usually run through a different product.
Why a Paycheck Isn’t the Requirement
A paycheck is only one way to show you can repay a loan. A lender needs proof that the money will be there each month, and a large, documented, seasoned portfolio is that proof. Retirees often have the most proof and the least payroll.
Lendmire is a mortgage broker. It arranges asset-based mortgages through select lenders in its network, and the lenders underwrite and approve the loans. Its consumer mortgage lending is licensed in 16 states, Montana among them. The program figures below are the same for a borrower in Missoula, Bozeman or a small town on the Hi-Line. Only the property and the borrower’s file change.
Lendmire’s asset-based mortgage programs are built for people whose balances are large and whose documented income is small. That includes retirees, business sellers, inheritance recipients and early-retired professionals. The figures here are ceilings and floors, not offers, and they are subject to underwriting.
Key Terms Defined
Asset qualifier: a path where eligible assets, after credit percentages, must equal or exceed the whole loan amount. The file documents no income.
Asset depletion: a path that divides usable assets by 60 months to produce a monthly qualifying income. That income must carry the housing payment and other debts.
Debt-to-income (DTI): monthly debts divided by monthly income. The depletion path runs its derived income through this test.
Seasoning: how long money has sat in an account. Lenders use it to confirm the funds are really yours and not a recent, borrowed deposit.
Haircut: the share of an asset’s balance a lender will not count. A 70% credit means a 30% haircut.
Loan-to-value (LTV): the loan amount as a percentage of the property’s value.
Two Ways to Let Assets Do the Work
Across the wholesale network Lendmire works with, the first question is always the same. Do your assets cover the whole loan, or do they need to become income? The answer picks the path, and the path sets the rules.
| Factor | Asset qualifier | Asset depletion |
|---|---|---|
| What it tests | Assets cover the entire loan | Assets become monthly income |
| Income documented | None | Derived from assets |
| Purchase leverage | Up to 80% | Up to 80% (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 | Lender’s matrix |
The leverage figures for the qualifier path apply to a principal residence or second home. On the depletion path, 80% applies to a purchase or rate-and-term refinance on a principal residence or second home. A cash-out refinance there is limited to 60%. An investment property on the depletion path is limited to 65% on a purchase or rate-and-term refinance and 60% on a cash-out. Cash-out proceeds never count as qualifying assets. Whether cash-out is allowed on the qualifier path is set by the lender, so a firm figure is not available.
The qualifier path fits you if your liquid and near-liquid balances exceed the loan. It asks the fewest questions, and it works well for a purchase with a large down payment. The depletion path fits you if your assets are large but you want to keep more of them invested. It also fits you if you have some documented income, such as a pension, that falls short of the number you need.
Which Assets Count, and How Much
Not every dollar counts the same. Lenders reduce balances that carry risk or access limits. The table below shows each path’s treatment, subject to underwriting.
| Asset | Asset qualifier | Asset depletion |
|---|---|---|
| Cash, savings, money market | 100% | 100% (cash accounts) |
| Certificates of deposit | 100% | 100% |
| Brokerage accounts / securities | 100% | 80% |
| Private stock | Not published | 75% |
| 401(k) and IRA | 90% under 59½; 100% at 59½+ | 70% at any age |
| Real-estate equity | Not published | 60% |
On the qualifier path, accounts combine. Here is an illustrative case, and the lender’s own calculation governs. Say you want an $800,000 loan. You hold $330,000 in brokerage accounts, which count at 100%, or $330,000. You hold $300,000 in a 401(k) while under 59½, which counts at 90%, or $270,000. You hold $200,000 in savings, which counts at 100%, or $200,000. Your usable assets total $800,000, which matches the loan, so the file is reviewed on assets alone.
Now the depletion path. Say you hold $1,500,000 in securities, which count at 80%, or $1,200,000. You also hold $300,000 in cash at 100%. That is $1,500,000 of usable assets. Divided by 60 months, it produces $25,000 of monthly qualifying income. That income then has to carry the housing payment and your other debts through the debt-to-income test.
Some assets are not eligible on the depletion path. These include 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.
Cryptocurrency, precious metals, collectibles and pledged or borrowed funds are not published as eligible on either path. The documented route is to convert them into a seasoned cash balance in a regulated account. The lender then reviews the source of those funds.
The Early Retiree Wrinkle
Retirement accounts are where age matters. On the qualifier path, a 401(k) or IRA counts at 90% if you are under 59½ and at 100% from 59½ on. The haircut reflects early-access penalties. On the depletion path, retirement accounts count at 70% at any age, so age does not change that treatment.
A retiree at 58 with most of the wealth in an IRA might lean toward the qualifier path to get the 90% credit. A retiree at 66 with the same account might see a 100% credit on that path. The arithmetic shifts with your age and your mix of accounts, and a broker can run both paths against your statements.
Sell Assets or Use Them as Qualifying Income?
You could sell investments and pay cash. You could also qualify on those investments and keep them. These choices lead to different outcomes.
Selling turns a growing portfolio into a single, illiquid house. Using the depletion path leaves the portfolio invested while the lender counts it as income. The tradeoff is that you carry a mortgage, and the portfolio must stay large enough to support it. Tax treatment varies; consult a qualified professional before choosing which assets to sell or hold.
One more caution applies. Pulling extra retirement distributions to inflate income for a lender can backfire. The depletion method already handles retirement balances through its own haircut, so extra withdrawals may only add cost.
Documented retirement income still helps. Asset-derived income may supplement documented income, such as a pension or Social Security, up to a 45% debt-to-income ratio. When assets supplement income this way, the minimum-assets rule is waived.
What Underwriting Actually Checks
Underwriting does not disappear. It changes its evidence. The lender confirms your assets, your credit and the property, then decides whether the loan makes sense.
Credit. The qualifier path has a 600 minimum score. The depletion path follows the lender’s score and loan-amount matrix. A first-time investor on the depletion path needs a 700 score. Housing history is generally 0x30x12, meaning no 30-day lates in the last twelve months. One late in that window is considered case by case. Multiple bankruptcies are not eligible. On the depletion path, a housing event such as a foreclosure needs 4 years of seasoning.
Depletion minimums. Qualified assets must be at least the lesser of $1,000,000 or 1.25 times the loan balance. When assets are your only income source, you also need at least $250,000 in liquid assets.
Reserves. The qualifier path requires none at or below 75% loan-to-value. Above that, the lender sets them. The depletion path has no published reserve months.
Property. The home is appraised like any other. The lender also reviews occupancy and property type.
The Federal Rule Behind It
Federal law does not demand wages. The federal repayment-ability rule, described in the Federal Register’s text of the ability-to-repay rule, lets a lender base its decision on income or on assets. It names retirement benefits as acceptable income. It lists savings, amounts vested in a retirement account and stocks as acceptable assets.
The rule also requires the lender to verify whatever it relies on, using records specific to you. That is why a statement-based file is still a fully underwritten file.
One tension is worth knowing. A law-firm analysis of non-QM lending says a lender may rest its determination solely on verified assets. The same analysis says the lender must still consider and verify debt-to-income or residual income. This helps explain why depletion files show a DTI calculation and qualifier files lean entirely on assets.
Documentation and Timing Checklist
Get the paperwork right before you apply, because statements drive both paths.
- Qualifier path: the assets need 60 days of seasoning. Provide two months of statements for each qualifying account.
- Depletion path: statements must be at least 120 days old at application. You also provide the most recent statement, dated within 45 days. Funds from the sale of a business, an inheritance or a legal settlement are excused from that seasoning.
- Large deposits: expect questions about any large transfer. A trade-press review of the 2020 rule changes notes that a lender cannot treat a deposit as income just because funds arrive. It has to confirm what the money is. Keep a paper trail for irregular transfers and distributions.
- Spouses and joint accounts: accounts held jointly can combine on the qualifier path. If one applicant’s assets can support repayment alone, the lender need not rely on the other’s.
Montana Considerations
Montana retirees often buy for lifestyle, not for a job. That points to a second home, a relocation from another state or a seasonal base. A second home is eligible on both paths, with the leverage figures above.
Rural parcels can involve more appraisal work than a subdivision house. Allow extra room for that review. Seasonal residents should be ready to show how they will occupy the home. The state does not change the program figures. Taxes, insurance and local prices are context for your budget, not parameters of the loan.
If you plan to buy a rental instead of a home you will use, the depletion path allows investment property at lower leverage. A rental purchase underwritten on the property’s income is a separate product. Lendmire’s explainer on super jumbo DSCR loans for asset-rich retirees covers that route.
When This Isn’t the Right Fit
Asset-based qualification is not for everyone. If your portfolio is modest, the depletion minimums may put the loan out of reach. A retiree with steady pension and Social Security income may do better with a standard income-based loan, since agency-backed conventional loans generally rely on documented, continuing income.
A reverse mortgage is a different product. It lets an older homeowner draw on equity in a home they already own. It does not help you buy with a mortgage you repay.
The honest downside is that you carry a larger debt with no wages behind it. Markets fall, and depletion math uses balances that move. Before you apply, ask whether the portfolio could carry the payment through a bad year.
Frequently Asked Questions
Can I qualify on Social Security alone?
Social Security counts as documented income under the applicable program, subject to lender guidelines. If it does not reach the number you need, asset-derived income may supplement it up to a 45% debt-to-income ratio on the depletion path.
Does retiring early hurt my chances?
Not directly, but it changes how retirement accounts are counted. On the qualifier path, a 401(k) or IRA counts at 90% under age 59½ and 100% after. On the depletion path, retirement accounts count at 70% at any age.
Can I refinance with assets instead of income?
Yes, through select programs. The qualifier path allows up to 75% loan-to-value on a refinance of a principal residence or second home. The depletion path allows up to 80% on a rate-and-term refinance and 60% on a cash-out of those same properties.
Is there a minimum amount of assets?
The qualifier path has no stated minimum beyond covering the full loan amount after credit percentages. The depletion path requires at least the lesser of $1,000,000 or 1.25 times the loan balance.
Does this mean no credit check?
No. The qualifier path has a 600 minimum score, and the depletion path follows the lender’s matrix. Approval depends on your credit, assets, the property and underwriting.
Your 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. Gather two months of statements for each account first. That one step shows which path fits.
About Lendmire
Lendmire (NMLS# 2371349) is a mortgage brokerage serving self-employed and high-net-worth borrowers in 16 states. Bank statement, P&L-only, 1099-only and asset-based mortgages are arranged through wholesale lending channels; Lendmire brokers the financing and the lender underwrites each application. Scotsman Guide named Lendmire a Top Mortgage Workplace in both 2025 and 2026.
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References
1. Federal Register – Ability-to-Repay and Qualified Mortgage Standards under Regulation Z
2. CFS Review – CFPB addresses non-QMs under the ability-to-repay rule
3. Consumer Finance Monitor – CFPB finalizes ability-to-repay and qualified mortgage 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: How to Document a Montana Asset Qualifier Mortgage Without an Employer · Can a Florida Buyer Qualify for a Mortgage on IRA Assets Without Withdrawals? · Can a Business Owner Use Company Cash to Qualify for an Asset-Based Mortgage?
Guides: Asset-Based Mortgage in Montana
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.