The Quick Read: Yes, usually, if the loan is built on assets instead of paychecks: a retiree can qualify when eligible savings, brokerage and retirement balances either cover the whole loan or convert into a qualifying monthly income, subject to underwriting, credit review and the property’s use, with no traditional personal-income documentation, pay stubs or employment verification. Every file is still fully underwritten. The assets are documented with statements.
- Path one, asset qualifier: eligible assets must equal or exceed the entire loan amount, and no income is documented.
- Path two, asset depletion: usable assets are divided by 60 months to create a qualifying income, which then runs through a debt-to-income test.
- Retirement accounts count, but the credit differs by path and, on one path, by age.
- Occupancy matters. A home you live in and a rental you own are treated differently.
- Credit still counts. The qualifier path has a 600 minimum score, and the depletion path follows the lender’s matrix.
Two Ways to Qualify on Assets
Across the wholesale network Lendmire places files through, “assets alone” means one of two things. Either the assets cover the loan outright, or the assets get converted into pretend monthly income. A borrower is qualified on one path at a time. Never blend them.
| Factor | Asset qualifier | Asset depletion |
|---|---|---|
| Core test | Usable assets ≥ whole loan | Assets ÷ 60 months = income |
| Income documented | None | Derived from assets |
| Max loan | 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 on select programs, subject to underwriting. They are not offers.
Which fits you? If your liquid balances are large compared to the loan, the qualifier path is cleaner. You skip the income math entirely. If your balances are big but the loan is large too, depletion may fit better. Your assets become a monthly income figure, and that income has to carry the housing payment and your other debts.
Lendmire’s asset-based mortgage programs cover both. New Mexico is one of the 16 states where consumer mortgage lending is offered. The program figures don’t change by state.
What Counts, and How Much
Not every dollar counts at face value. Each path gives a percentage of the balance.
| Asset | Qualifier path | Depletion path |
|---|---|---|
| Savings, money market | 100% | Cash accounts 100% |
| Certificates of deposit | 100% | 100% |
| Brokerage / securities | 100% | Securities 80% |
| 401(k) and IRA | 90% under 59½, 100% at 59½+ | 70% at any age |
| Private stock | Not published | 75% |
| Real-estate equity | Not published | 60% |
On the qualifier path, accounts combine. On the depletion path, several things don’t count at all: 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, borrowed or pledged funds, and business accounts beyond your ownership share are not published as eligible on either path. The documented route is converting them to a seasoned cash balance in a regulated account. The lender reviews the source of that cash.
A retiree under 59½ should note the split. The qualifier path credits retirement balances at 90% until you turn 59½. The depletion path credits them at 70% at any age. Cash-out proceeds never count as qualifying assets on the depletion path.
Two Worked Examples
These are illustrations. The lender’s own calculation governs.
Assets cover the loan (qualifier path). Say the loan is $800,000. You hold $330,000 in brokerage accounts, $300,000 in a 401(k) and $200,000 in savings, and you are under 59½.
- Brokerage at 100% counts $330,000.
- The 401(k) at 90% counts $270,000.
- Savings at 100% counts $200,000.
That is $800,000 of usable assets, which matches the loan. The file is reviewed on assets alone, subject to underwriting. No income is documented.
Assets become income (depletion path). Say you hold $1,500,000 in securities and $300,000 in cash.
- Securities at 80% count $1,200,000.
- Cash at 100% counts $300,000.
That is $1,500,000 usable. Divide by 60 months and you get $25,000 of monthly qualifying income. That figure then carries the housing payment and your other debts through the debt-to-income test. Your credit and the loan size still matter.
Two minimums apply on the depletion path. Qualified assets must be at least the lesser of $1,000,000 or 1.25 times the loan balance. And when depletion is your only income source, you need at least $250,000 liquid.
Leverage, Loan Size and Credit
Leverage is the share of the home’s value the loan covers. Here is how the ceilings run, subject to underwriting.
- Qualifier path: up to 80% on a purchase and up to 75% on a refinance, on a principal residence or second home. Cash-out terms on this path are set by the lender and aren’t published.
- Depletion path, principal residence or second home: up to 80% on a purchase or rate-and-term refinance, and 60% on a cash-out refinance.
- Depletion path, investment property: up to 65% on a purchase or rate-and-term refinance, and 60% on a cash-out refinance.
On credit, the qualifier path has a 600 minimum score. The depletion path follows the lender’s matrix, and a first-time investor needs 700 there. Housing history is typically 0x30x12, meaning no 30-day lates in the last twelve months. One late is considered case by case. Multiple bankruptcies aren’t eligible. A housing event needs 4 years of seasoning on the depletion path.
Reserves differ too. 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.
Is It Allowed When You Have No Paycheck?
Yes. Lenders don’t need wages to find that you can repay. The CFPB’s ability-to-repay rule lets a creditor rest its repayment finding on income, assets, or both, other than the value of the home securing the loan. Your savings can carry the file. The home’s own equity cannot.
Age and retirement status don’t block the loan. Lenders still document how they considered your assets.
One edge case catches people. A retiree who buys a duplex to live in is not buying a pure rental. A compliance newsletter summary notes that business-purpose treatment of an owner-occupied building depends on unit count, with a threshold of more than 2 units to acquire. Below that, expect consumer-mortgage treatment. That doesn’t hurt the asset path. It just means this is a consumer file.
What About a Rental?
A rental is a different loan. Credit to buy non-owner-occupied rental property is deemed business-purpose, and business-purpose loans sit outside the consumer ability-to-repay framework. Rental financing therefore qualifies primarily on property-level rental income covering the payment, subject to lender guidelines. Your personal income isn’t the test.
You have two honest options for a rental:
1. Use rental-based financing, where the property’s rent carries the loan.
2. Use the asset depletion path on an investment property, at up to 65% on a purchase and 60% on a cash-out refinance, subject to underwriting.
The first usually allows more leverage. The second makes sense when the rent is thin but your portfolio is deep. Many retirees pair the two: assets for the home you live in, rent-based financing for the rentals.
What Lenders Ask For (and Where Files Stall)
The paper trail is statements. Expect the following.
- 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. Sale-of-business, inheritance and legal-settlement funds are excused from that seasoning.
- ID, a credit authorization, and the appraisal.
Files stall on predictable things. A large unexplained deposit. Funds sitting in someone else’s name. Money moved between accounts the week before applying. Not ideal.
Here is a pattern a broker sees often. A retiree with a seven-figure portfolio is declined at a big retail lender because reported income is low, then qualifies cleanly once the file is placed on an asset path. The portfolio never changed. Only the underwriting basis did. The reverse also happens: a strong balance sheet gets held up by one unsourced deposit that a two-line letter would have cleared.
Does the Loan Drain Your Portfolio?
Not automatically. That’s the point. You aren’t required to sell investments to show income. Down payment and closing funds come out of your balances first, though, so count what’s left. On the depletion path those assets must still clear the minimums above.
Some programs let asset-derived income supplement documented income such as Social Security or a pension, up to a 45% debt-to-income ratio. When it supplements, the minimum-assets rule is waived. This can help if you’d rather not claim Social Security early just to show income. Whether to delay or claim is a question for a financial adviser, not a loan officer.
Budget for the full cost of owning the home, not just the loan: taxes, insurance, association dues, and the extra premiums that mountain and rural properties can carry. Tax treatment varies; consult a qualified professional.
Alternatives Worth Comparing
| Option | Basis | Best fit |
|---|---|---|
| Asset qualifier loan | Assets cover the loan | Big cash and brokerage balances |
| Asset depletion loan | Assets become income | Large loan, large portfolio |
| Agency conventional loan | Documented income | Retirees with pension or steady income |
| Reverse mortgage | Home equity and age | A primary residence you already own |
| HELOC on another home | Equity in that home | Bridging a purchase |
| Paying cash | Your own funds | Ample liquidity and no wish to borrow |
Agency conventional loans are income-documented, which is why a retiree with a portfolio but low taxable income often gets declined there. A reverse mortgage generally suits a home you already own and live in, not a purchase of a second property. These rules belong to those programs, not to the asset-based programs.
Key Terms Defined
Asset qualifier: a path where eligible assets, after credit percentages, must equal or exceed the entire loan.
Asset depletion: a path where usable assets divided by 60 months become a monthly qualifying income.
Debt-to-income (DTI): your monthly debts divided by your monthly income, which here is the derived figure.
Seasoning: how long funds must sit in an account before they count.
Non-QM: a loan outside the standard qualified-mortgage box, underwritten to its own guidelines.
Haircut: the share of a balance a lender doesn’t count.
Frequently Asked Questions
Can I use my IRA or 401(k) if I’m under 59½?
Yes, on both paths. The qualifier path credits 90% of the balance under 59½ and 100% at 59½ or older. The depletion path credits 70% at any age. Whether you can actually withdraw the funds without a penalty isn’t the test, though the lender reviews the statements.
Does a New Mexico home change the program figures?
No. Leverage, credit percentages and seasoning are the same in New Mexico as in the other states where the program is offered. Local prices, taxes and insurance shape the budget, not the program rules.
Can I combine asset income with Social Security or a pension?
Often yes. On the depletion path, asset-derived income can supplement documented income up to a 45% debt-to-income ratio, and the minimum-assets rule is waived when it does. Details vary by lender, subject to underwriting.
Does this mean no documentation?
No. It means no traditional personal-income documentation, pay stubs or employment verification. Your assets are documented with statements, your credit is reviewed, and the property is appraised. Every file is fully underwritten.
Can I buy a rental this way?
Yes, in two ways. Rental financing qualifies primarily on the property’s rent covering the payment. Or the asset depletion path can finance an investment property at up to 65% on a purchase, subject to underwriting.
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. Programs change, and every file is underwritten individually. Not a commitment to lend.
Lendmire’s asset-based mortgage in New Mexico page presents the program for New Mexico 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.
For a New Mexico retiree, the question is rarely whether the balance is big enough. It is whether the right account types and statements are lined up before the offer goes in.
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References
1. CFPB Regulation Z, ability to repay (§ 1026.43)
2. Compliance Alliance, Regulation Z and investment properties
3. eCFR 12 CFR 1026.3, exempt transactions
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 New Mexico Snowbird Buy a Winter Home on Savings Alone? · Can Co-Borrowers Combine Accounts on a New Mexico Asset Qualifier Mortgage? · Can a Washington Early Retiree Get a Mortgage Before Age 59½ on Retirement Accounts?
Guides: Asset-Based Mortgage in New Mexico
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
- Mortgage Loan Originator · NMLS# 1129696 · Verify on NMLS Consumer Access
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- Lendmire LLC · Firm NMLS# 2371349 · Verify firm licensure
Disclosures. The information presented in this article is general market commentary, not financial, legal, or tax advice. Lendmire is a mortgage brokerage (NMLS# 2371349) — not a direct lender or depository institution — and loan placement is subject to lender underwriting. Nothing in this content represents a commitment to lend. Loan terms, pricing, and program availability vary based on borrower qualifications, property characteristics, and state of subject property, and are subject to change at any time. Lendmire complies with Equal Housing Opportunity requirements. Consumer access: nmlsconsumeraccess.org.