The Quick Read: It depends on the path: the asset qualifier path needs eligible assets that equal or exceed the entire loan, while the asset depletion path divides usable assets by 60 months into qualifying income and needs at least $250,000 liquid when assets are your only income, subject to underwriting. There is no single dollar threshold. The number moves with the loan size, the type of account, and which path fits your situation.
- Asset qualifier path: eligible assets, after credit percentages, must cover the whole loan. No employment or income is documented.
- Asset depletion path: usable assets divided by 60 months become monthly income. That income must carry the housing payment and your other debts.
- Leverage differs by path. The qualifier path goes up to 80% on a purchase. The depletion path goes up to 80% on a purchase of a principal residence or second home, and 65% on an investment property.
- The assets are documented. You skip traditional personal-income documentation, pay stubs and employment verification. You do not skip statements, seasoning or credit review.
- The figures are the same in every state. New Mexico does not change the program math.
Why Can a Retiree With No Paycheck Still Qualify?
A retiree can qualify because a lender may treat assets as the source of repayment instead of wages. If your balances are large and your documented income is small, asset-based programs read your balance sheet instead of your 1040. That is the whole idea.
Many retirees get shut out of standard underwriting for a simple reason. Their wealth sits in brokerage accounts, CDs and retirement funds, but their tax return shows modest income. A traditional lender sees the return and stops. An asset-based lender sees the statements and keeps going.
Lendmire is a mortgage broker, not a lender. It places these files through select lenders in its wholesale network. Across that network, asset-based mortgage programs fall into the two paths above. You are qualified on one path at a time, never a blend of both.
Every file is still fully underwritten. The lender reviews credit, appraises the property and verifies your assets. The difference is what gets documented. You document balances, not a paycheck.
The Two Paths Side by Side
The qualifier path asks whether your assets cover the loan. The depletion path asks whether your assets, converted to monthly income, can carry the payment. Which one wins depends on the size of your portfolio relative to the loan and the type of property.
| Factor | Asset qualifier | Asset depletion |
|---|---|---|
| Core test | Eligible assets ≥ entire loan | Assets ÷ 60 months = income |
| Purchase leverage | Up to 80% | Up to 80% (primary/second home) |
| 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 |
| Income documented | None | Derived from assets |
The depletion path also covers investment property, at up to 65% on a purchase or rate-and-term refinance and 60% on a cash-out. The qualifier path is for a principal residence or second home. Cash-out proceeds never count as qualifying assets on the depletion path. These are ceilings, not offers, and each file is subject to underwriting.
How Much Do You Actually Need?
You need enough usable assets to satisfy the path’s test, plus cash for the down payment and closing costs. Usable means after the credit percentages are applied. The lender’s own calculation always governs, so treat the examples below as illustrations.
Qualifier path. Usable assets must equal or exceed the entire loan amount. On an 80% purchase, that means usable assets worth at least 80% of the price. A 75% refinance works the same way against the new loan.
Picture an $800,000 loan. Say you hold $330,000 in brokerage accounts (counted at 100%, so $330,000), $300,000 in a 401(k) while under 59½ (counted at 90%, so $270,000), and $200,000 in savings (counted at 100%, so $200,000). That counts $800,000 of usable assets. The loan is reviewed on assets alone, subject to underwriting.
The qualifier path asks for no reserves at or below 75% loan-to-value. Above that, the lender sets them. Since a purchase can go to 80%, expect the reserve question on higher-leverage purchases.
Depletion path. Here the math runs the other direction. Say you hold $1,500,000 in securities (counted at 80%, so $1,200,000) and $300,000 in cash (counted at 100%, so $300,000). That is $1,500,000 of usable assets. Divided by 60 months, it produces $25,000 of monthly qualifying income.
That income then carries the housing payment and your other debts through the debt-to-income test (DTI, the share of monthly income that goes to debt payments). The size of the loan you can support is whatever keeps that ratio within the lender’s limit.
The depletion path has a floor. Qualified assets must be at least the lesser of $1,000,000 or 1.25 times the loan balance. When asset depletion is your only income, you also need at least $250,000 liquid. The loan must fall between $125,000 and $3,500,000.
What Counts as an Asset, and How Much of It?
Cash and CDs count in full on both paths. Everything else is discounted differently depending on the path. Compare the columns carefully, because the same account can count for more on one path than the other.
| Asset type | Qualifier path | Depletion path |
|---|---|---|
| Brokerage / securities | 100% | 80% |
| Certificates of deposit | 100% | 100% |
| Money market / savings | 100% | 100% (cash accounts) |
| 401(k) / 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, so your brokerage, savings and retirement balances add together.
An early retiree notices the age effect quickly. Under 59½, a 401(k) counts at 90% on the qualifier path. After 59½, it counts at 100%. On the depletion path, retirement accounts count at 70% regardless of age. If most of your wealth sits in an IRA, the qualifier path becomes stronger once you pass 59½.
What does not count 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.
What about crypto, precious metals and collectibles? Neither path publishes these as eligible. The documented route is converting them to a seasoned cash balance in a regulated account. The lender then reviews the source of that cash. Pledged or borrowed funds do not qualify either.
What Does the Lender Want to See on Paper?
Asset-based does not mean paperless. You provide statements, seasoning and a credit file.
Seasoning is how long money has sat in your account before the lender counts it. The rules differ by path:
- 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 dated within 45 days. Funds from the sale of a business, an inheritance or a legal settlement are excused from that seasoning.
Credit still matters. The qualifier path sets 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. Housing history is 0x30x12, meaning no 30-day lates in the last twelve months, although one late payment is considered case by case. Multiple bankruptcies are not eligible. A housing event such as a foreclosure needs four years of seasoning on the depletion path.
Large deposits draw questions. If you moved money between accounts recently, expect the lender to ask for the paper trail. The cleanest files keep balances in place and documented well before application.
Social Security or a Pension on Top
If you have a pension or Social Security, the depletion path can use it. Asset-derived income may supplement your documented income, up to a 45% DTI. When it supplements, the minimum-assets rule is waived.
This matters for retirees with moderate portfolios. Say your Social Security covers part of the payment. The assets then fill the gap instead of carrying the whole load. The $250,000 liquid floor applies only when asset depletion is the sole income source.
The qualifier path works differently. It documents no income at all, so there is nothing to add. You are qualified on assets alone, or you move to the depletion path and use both income types there.
Buying a Rental on Assets
An investment property qualifies only on the depletion path, at up to 65% on a purchase or rate-and-term refinance and 60% on a cash-out. The loan is business-purpose, meaning it is made for investing, not for living in. The loan amount range is $125,000 to $3,500,000.
There is a second way to finance a rental. 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. They test whether the property’s rent covers its payment. Your personal assets then show up as down payment, closing costs and reserves, not as income.
Which fits a retiree better? If the rental’s rent comfortably covers its payment, a DSCR loan keeps your portfolio out of the income test entirely. If the property is thin on rent, or you want the loan sized to your balance sheet, the depletion path may fit. That choice is worth running both ways before you commit. Asset depletion also asks for a bigger liquid cushion, while DSCR leans on the lease.
What the Federal Rules Say About Assets
The federal ability-to-repay rule lets a lender consider income or assets, other than the value of the home securing the loan. The CFPB’s Regulation Z page for section 1026.43 sets out that standard and requires the lender to verify those assets with third-party records.
That is why “no income means no loan” is a myth. The rule does not require wages. It requires proof of repayment ability.
The CFPB’s compliance guide gives examples of assets a lender may count. They include savings accounts, vested retirement amounts, stocks, bonds, CDs and trust funds. The rule leaves the conversion formula to the lender. That is why two lenders can produce different answers from the same balances.
Because this is a consumer mortgage on a home you live in, standard consumer disclosures apply to it.
Loan, Cash or Selling Investments?
Buying with a loan keeps your portfolio invested. Paying cash saves the loan entirely but concentrates your wealth in one house. Selling investments to fund the purchase can trigger taxable gains. Tax treatment varies; consult a qualified professional before selling investments to fund a purchase.
Assets used to qualify are not pledged as collateral. The balances stay in your accounts. They need to remain there through closing, because the lender relies on those documented balances. Moving money mid-process can undo the qualification.
Retirees often prefer the loan because their portfolio keeps compounding. The tradeoff is a monthly payment you must sustain from portfolio withdrawals and any pension. Ask whether the payment, plus taxes, insurance and upkeep, fits a spending plan that lasts decades.
New Mexico: What Stays the Same and What Changes
The program figures do not change by state. A New Mexico borrower sees the same percentages, seasoning and loan ranges. New Mexico is one of 16 states where Lendmire’s consumer mortgage lending is licensed.
What does change is the house. Santa Fe and Taos buyers often face higher prices than buyers in Albuquerque or Las Cruces. A higher price raises the loan and pushes more of the burden onto your assets. Local taxes and insurance vary by county and feed into the payment the depletion path must carry.
Retirees comparing states may find it useful to see how the same program reads elsewhere.
Mistakes That Sink Asset-Based Files
These are the errors Lendmire’s brokers see most often with income-light borrowers:
- Counting home equity on the qualifier path. The qualifier table does not list it. Equity counts at 60% only on the depletion path.
- Mixing the paths. A borrower is reviewed on one path at a time. Adding qualifier credit percentages to depletion math produces a number no lender will accept.
- Moving money before application. New deposits need sourcing and seasoning.
- Forgetting other debts. On the depletion path, car loans and credit cards sit inside the DTI test.
- Assuming every lender uses the same formula. Lenders in the network vary, and the lender’s calculation governs.
- Ignoring leverage limits. Cash-out is 60% on the depletion path, and cash-out proceeds never count as qualifying assets.
Is This a Fit for You?
Asset-based programs fit a cash-heavy, income-light borrower. That includes retirees, people who sold a business, heirs, settlement recipients and early-retired professionals living off a portfolio.
You are likely a fit if your balances are large against the loan, your accounts sit in regulated institutions, and your credit is clean. You are a weaker fit if your wealth is mostly crypto, collectibles, stock options or illiquid property, or if your credit has multiple bankruptcies. Underwriting decides, and nothing here is a commitment to lend.
Pre-Application Checklist
Gather these before you talk to a broker:
1. Two months of statements for every account you plan to use. 2. A list of account types, so the right percentage applies. 3. Older statements, at least 120 days back, if the depletion path may fit. 4. Documentation of any large deposit or sale proceeds. 5. A credit report review, including your housing payment history. 6. The target price range and occupancy: primary residence, second home or rental.
Key Terms Defined
Eligible assets: the account balances a lender will count toward qualification, after its percentages are applied.
Asset haircut: the share of a balance a lender discounts because the asset is volatile or harder to access.
Seasoning: the length of time funds must sit in your account before the lender counts them.
Debt-to-income ratio (DTI): the share of your monthly income that goes to debt payments, including the new housing payment.
Loan-to-value (LTV): the loan amount divided by the property’s value or price.
Business-purpose loan: a loan made to buy or refinance a property held for investment, not to live in.
Frequently Asked Questions
Is there a minimum amount of assets a retiree needs?
On the asset depletion path, qualified assets must be at least the lesser of $1,000,000 or 1.25 times the loan balance, and never below $250,000 liquid when assets are the only income source. On the qualifier path, the floor is the loan itself: eligible assets must equal or exceed the entire amount. All of it is subject to underwriting.
Does my 401(k) or IRA count if I am under 59½?
Yes, with a discount. On the qualifier path, retirement balances count at 90% under 59½ and 100% at 59½ or older. On the depletion path, retirement accounts count at 70% at any age. The two paths are never blended.
Can I add Social Security or a pension to my assets?
On the depletion path, yes. Asset-derived income may supplement documented income up to a 45% DTI, and the minimum-assets rule is waived when it does. The qualifier path documents no income, so there is nothing to add.
Does paperwork go away entirely?
No. You still provide account statements, meet the seasoning rules, and pass credit review and an appraisal. Every file is fully underwritten.
Can I use these programs to buy a rental?
Only on the asset depletion path, at up to 65% on a purchase and 60% on a cash-out for an investment property. A first-time investor there needs a 700 credit score. A rental whose rent covers its payment may fit a DSCR loan instead. Terms depend on the lender’s guidelines, the property type, the leverage, and a full review of the credit profile.
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. Reach the team at 828-256-2183 or request a quote. Figures here are illustrative, programs change, and the lender’s own calculation governs.
Lendmire’s asset-based mortgage in New Mexico page presents the program for New Mexico borrowers.
About Lendmire
Lendmire (NMLS# 2371349) is a mortgage broker licensed for consumer lending in 16 states. Bank statement, P&L-only, 1099-only and asset-based mortgages for self-employed and high-net-worth borrowers are arranged through wholesale lenders on primary residences, second homes and investment properties; every file is underwritten by the lender under its program guidelines. Scotsman Guide named Lendmire a Top Mortgage Workplace in both 2025 and 2026.
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References
1. CFPB, Regulation Z § 1026.43
2. CFPB, ATR/QM Small Entity Compliance Guide
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 Relocate to Michigan and Buy a Home on Assets Before You Have Local Income? · How Much Does a Startup Founder Need in Assets to Qualify for a Mortgage? · How Much Does a California Retiree Need in Assets to Buy a Home Without Income?
Guides: Asset-Based Mortgage in New Mexico
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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- Lendmire LLC · Firm NMLS# 2371349 · Verify firm licensure
Legal disclosures. Lendmire (NMLS# 2371349) is a state-licensed mortgage brokerage that arranges financing through wholesale lender relationships. Lendmire is not a direct lender, depository institution, or registered financial advisor. The discussion above is general informational content about real estate financing — it is not financial, legal, or tax advice, and readers should consult licensed professionals for guidance on their individual circumstances. Loan inquiries are subject to lender underwriting; this article does not represent a commitment to lend. Loan terms, rates, and qualification standards vary by borrower, property, and state, and are subject to change at any time. Equal Housing Opportunity. NMLS Consumer Access: nmlsconsumeraccess.org.