The Quick Read: A retiree does not need a paycheck to get a mortgage on a home they will live in, but a lender does need documented proof that the loan can be repaid. Through select programs in Lendmire’s network, that proof comes from assets: either eligible balances that cover the whole loan, or balances converted into monthly qualifying income. Every file is fully underwritten, subject to lender guidelines, and a borrower is qualified on one path at a time.
- Asset qualifier path: eligible assets must equal or exceed the entire loan, and no employment or income is documented.
- Asset depletion path: usable assets divided by 60 months become qualifying income that runs through the debt-to-income test.
- No traditional personal-income documentation, pay stubs or employment verification are required, but account statements are.
- Leverage runs up to 80% on a purchase on either path for a primary residence or second home, with limits that differ by path.
Retirees tend to hit the same wall. They have a large portfolio and a small, hard-to-document income. A Social Security check and an IRA distribution don’t always add up to a number a standard income test likes. Brokers who work these files see it weekly. The portfolio is fine. The income test is the problem.
This piece walks through how asset-based underwriting actually treats a retiree’s balances, the two paths, the edge cases, and how to choose. It is written for a New Mexico borrower. The program figures below do not change by state. New Mexico is one of the 16 states where Lendmire’s consumer mortgage lending is licensed, and Lendmire arranges these loans as a broker through select lenders. It does not lend or approve.
Can a Retiree Get a Mortgage Without Wages?
Yes. Age and retirement status are not disqualifiers. What matters is whether the file shows a reasonable, documented way to repay. Federal ability-to-repay guidance lists current or reasonably expected income or assets among the factors a lender considers, and it requires employment status only when the lender relies on employment income, per the CFPB’s small entity compliance guide. That leaves room for a lender to rely on assets instead of wages.
So the question changes. It is not “where do you work?” It is “what do you hold, how much of it counts, and does it carry this loan?”
Asset-based programs exist for this reader: retirees, people who sold a business, heirs, early-retired professionals and anyone living off a portfolio. The balances are large. The documented income is not.
Which Asset Path Fits? (The Decision Comes First)
Pick the path before you gather a single statement. The two paths use different haircuts, different leverage and different tests. They are never blended.
| Factor | Asset qualifier | Asset depletion |
|---|---|---|
| Core test | Eligible assets cover the whole loan | Assets become monthly income |
| Income documented | None | Derived income, run through DTI |
| Purchase leverage | Up to 80% | Up to 80% (65% on investment property) |
| Refinance leverage | Up to 75% | Up to 80% rate-and-term, 60% cash-out |
| Loan amounts | Up to $4,000,000 | $125,000 to $3,500,000 |
Leverage figures above apply to a principal residence or second home unless noted, subject to underwriting.
Here is the practical split. If your liquid and near-liquid balances are larger than the loan, the qualifier path is cleaner. There is no income to calculate and no debt-to-income test. If your balances are big but smaller than the loan, the depletion path may fit, because it spreads the balances over time and measures whether the resulting income carries the payment.
The Asset Qualifier Path, Step by Step
The qualifier path asks one question. After the credit percentages below, do your eligible assets equal or exceed the entire loan amount? If yes, the loan can qualify on assets alone, subject to underwriting. No employment or income is documented.
How the balances count on this path:
- Brokerage accounts, certificates of deposit, money market and savings count at 100%.
- 401(k) and IRA balances count at 90% if you are under 59½, and 100% at 59½ or older.
- Accounts combine.
Credit score floor is 600. Seasoning is 60 days, and the lender wants two months of statements for each qualifying account. Reserves are not required at or below 75% loan-to-value. Above that, the lender sets them.
Here is an illustrative example. Say an $800,000 loan is backed by $330,000 in brokerage accounts (100% counts, so $330,000), $300,000 in a 401(k) held under age 59½ (90% counts, so $270,000) and $200,000 in savings (100% counts, so $200,000). That is $800,000 of usable assets against an $800,000 loan. It is reviewed on assets alone. The lender’s own calculation governs, and the example is illustrative only.
Notice what the haircut did. The 401(k) was $300,000 on paper and $270,000 in the math. A retiree under 59½ who leans on a retirement account should plan for that gap.
The Asset Depletion Path, Step by Step
The depletion path converts assets into income. A lender takes usable assets after haircuts, divides by 60 months, and treats the result as monthly qualifying income. That income then carries the full housing payment and other debts through the debt-to-income test.
Haircuts on this path are different from the qualifier path:
- Cash accounts 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: 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.
Run the shape of it. $1,500,000 in securities counts at 80%, or $1,200,000. Add $300,000 in cash at 100%. Usable assets total $1,500,000. Divide by 60 months and the qualifying income is $25,000 a month. That figure then has to carry the housing payment and other debts through the debt-to-income test. Illustrative only.
Minimums matter here. Qualified assets must be at least the lesser of $1,000,000 or 1.25 times the loan balance. When depletion is the only income source, liquid assets can never fall below $250,000. Asset-derived income can also supplement documented income, such as a pension, up to a 45% debt-to-income ratio. When it supplements, the minimum-assets rule is waived.
Statement rules also differ. Statements must be at least 120 days old at application, plus the most recent statement within 45 days. Funds from the sale of a business, an inheritance or a legal settlement are excused from that seasoning. Credit follows the lender’s score and loan-amount matrix, and a first-time investor on this path needs a 700.
Leverage is where this path is tighter. On a principal residence or second home, it runs up to 80% on a purchase or rate-and-term refinance and 60% on a cash-out. Cash-out proceeds never count as qualifying assets.
Key Terms Defined
Asset qualifier: A path where eligible assets, after credit percentages, equal or exceed the whole loan and no income is documented.
Asset depletion: A path that divides usable assets by 60 months to produce monthly qualifying income.
Haircut: The share of an account’s balance that a lender does not count, which varies by asset type.
Seasoning: The length of time funds must sit in an account, shown through statements, before they count.
Debt-to-income (DTI): Monthly debts, including the new housing payment, compared with qualifying monthly income.
Loan-to-value (LTV): The loan amount compared with the property’s value or price.
What Counts, What Doesn’t, and What Gets Subtracted
Retirees often ask about the odd assets. Cryptocurrency, precious metals, collectibles, business accounts beyond your ownership share, and pledged or borrowed funds are not published as eligible on either path. Say so plainly to yourself before you plan around them.
The documented route is converting them to a seasoned cash balance in a regulated account, with the source reviewed by the lender. That takes planning and it takes time on the statement side.
On the depletion path, down payment, closing costs and any funds you need to bring to the table come out of the portfolio before the income math. A retiree with a large portfolio can look very different once a 20% down payment leaves the account. Run the subtraction first. Each figure is subject to lender guidelines and a complete review of property type, leverage, and credit.
Large unexplained deposits are a common reason asset files stall. If money moved recently, keep the paper trail.
Where the General Rule Breaks
Early retirees. Under 59½, the qualifier path counts retirement accounts at 90% and the depletion path at 70%. A portfolio built mostly in taxable accounts works better than one locked in an IRA.
Investment property. Asset qualification here is a consumer-purpose tool for a home you live in or a second home. Investment property is available only on the depletion path, where the loan is business-purpose, with leverage up to 65% on a purchase or rate-and-term and 60% on a cash-out. Lending on investment property is treated as business-purpose, as the Federal Register rulemaking record explains. A creditor must determine in each case whether a transaction is primarily for an exempt purpose, per Regulation Z § 1026.3. A loan meant for your own home is not a business loan. Leverage, reserves, and pricing vary by lender and program; the final terms follow the full file review.
Retirees who still draw wages. A part-time consulting check can sit alongside assets on the depletion path, up to the 45% debt-to-income ceiling.
Housing history. The program looks for 0x30x12, meaning no 30-day lates in twelve months. One late is considered case by case. Multiple bankruptcies are not eligible, and a housing event needs four years of seasoning on the depletion path.
Weak candidates. Thin assets, scattered accounts that can’t be documented, and credit below the program floor are poor fits. Another product may serve better.
New Mexico Context
The program figures are the same in every state. New Mexico changes the setting, not the math.
A retiree buying a primary residence in Albuquerque or Las Cruces is a straightforward asset qualifier or depletion file. A buyer purchasing a second home in Santa Fe or Taos is the same program, with the second-home leverage on the same path. A retiree relocating from another state brings out-of-state statements. That is fine, as long as the accounts are with regulated institutions and are seasoned. Foreign funds are not eligible on the depletion path.
Rural properties add appraisal questions, such as comparable sales and property type. Those come from the property side of the file, not the asset side. Property taxes and insurance still sit in the housing payment, and on the depletion path that payment has to be carried by the derived income. Budget for both. They vary by county and carrier.
A related question is whether a New Mexico widow can qualify on life insurance and retirement assets.
Asset-Based Mortgage vs. Other Retiree Options
| Option | How it works | Fits when |
|---|---|---|
| Asset-based mortgage | Assets cover the loan or become income | Big balances, little documented income |
| Conventional with income | Pension, Social Security, distributions counted | Steady, documented fixed income |
| Reverse mortgage | Home equity paid to the borrower, age 62+ | Staying in a home you already own |
| HELOC on a current home | Credit line against existing equity | You already own a home with equity |
| All cash | Pay outright from the portfolio | Liquidity stays comfortable after the purchase |
Reverse mortgages are a different tool with a different purpose. They are not a purchase-money path for most retirees buying a new home.
There is a real planning argument for a mortgage over cash. Selling appreciated securities or pulling large IRA distributions to pay cash can carry costs and strip the portfolio. Keeping it invested and qualifying on it can preserve more. There is a counterpoint too. Cash buyers carry no payment and no debt-to-income test. Tax treatment varies; consult a qualified professional.
Documents to Gather
- Two months of statements for each qualifying account on the qualifier path.
- On the depletion path, statements at least 120 days old plus the latest within 45 days.
- Proof of ownership for each account.
- Source documentation for any large deposit or recent account move.
- Credit information and housing history.
- Purchase contract and property details.
- Documentation of any sale of business, inheritance or settlement, if those funds are part of the file.
These loans are consumer mortgages, so standard consumer disclosures apply. Programs change and every file is underwritten individually. Figures above are ceilings and floors, not offers.
For a retiree who also owns rentals, the strategy can split in two. An asset-based loan can serve the home. A separate business-purpose loan can serve the rental, qualifying primarily on property-level rental income covering the payment, subject to lender guidelines. Two products, two logics, one portfolio left intact. Lendmire’s asset-based mortgage programs cover the first of those. Sub-1.00 coverage programs exist on the rental side through select lenders, with adjusted leverage and terms.
Common Mistakes
- Assuming the two paths can be combined. They can’t. One path per file.
- Counting a retirement account at face value. It never counts at 100% under 59½ on the qualifier path, and never above 70% on the depletion path.
- Moving money right before application. Fresh deposits and transfers need a paper trail and may need seasoning.
- Planning around crypto or collectibles. Convert to seasoned cash first.
- Reading “no income documentation” as “no documentation.” Statements are required on both paths.
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.
Frequently Asked Questions
Can I qualify with no income at all?
On the asset qualifier path, yes in the sense that no employment or income is documented. Your eligible assets, after credit percentages, must equal or exceed the entire loan, and the lender reviews your credit, seasoning and statements. It is fully underwritten, subject to lender guidelines.
Do I have to cash out my IRA or 401(k)?
No. The balance is counted, not liquidated. On the qualifier path it counts at 90% under 59½ and 100% at 59½ or older. On the depletion path it counts at 70% at any age. Forcing larger distributions just to qualify is usually unnecessary.
Does my age matter?
Not as a disqualifier. Age affects how retirement accounts are credited on the qualifier path, with the 59½ line changing the percentage. Past that line, the balance counts in full.
Can I use Social Security or a pension together with assets?
On the depletion path, derived income can supplement documented income up to a 45% debt-to-income ratio, and the minimum-assets rule is waived when it does. On the qualifier path, no income is documented at all.
What credit score do I need?
The qualifier path’s published floor is 600. The depletion path follows the lender’s score and loan-amount matrix, and a first-time investor on that path needs 700. Approval depends on the full file.
Lendmire’s asset-based mortgage in New Mexico page presents the program for New Mexico borrowers.
About Lendmire
As a mortgage broker (NMLS# 2371349), Lendmire helps self-employed and high-net-worth borrowers in 16 states qualify on bank statements, a profit-and-loss statement, 1099s or liquid assets instead of tax returns, through wholesale lenders. Lendmire is never the lender; program terms are set by the lender and its guidelines. Scotsman Guide named Lendmire a Top Mortgage Workplace in both 2025 and 2026.
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References
1. CFPB ATR/QM Small Entity Compliance Guide
2. Federal Register, CFPB Ability-to-Repay and Qualified Mortgage final rule
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 a New Mexico Widow Qualify for a Mortgage on Life Insurance and Retirement Assets? · How Pennsylvania Retirees Downsize on an Asset Qualifier Mortgage
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
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.