The Quick Read: Yes, a New Mexico snowbird can buy a winter home on savings alone, either by paying all cash or by using an asset-based mortgage that drives lender review on documented balances instead of paychecks, as long as the statements are seasoned and the property fits the program. Every file is still fully underwritten. You skip traditional personal-income documentation, pay stubs and employment verification, but you do not skip documentation. The assets are the documentation.
- All cash: no lender, but sellers and title companies still want proof of funds.
- Asset qualifier path: eligible assets must cover the whole loan, and no income is documented.
- Asset depletion path: usable assets divided by 60 months become qualifying income.
- Wrong tool: a rental-income loan does not fit a winter home you live in.
- Footprint: the program covers 16 states, and Arizona is not one of them.
What Does “On Savings Alone” Actually Mean?
It means one of three things, and each runs on a different rulebook. Buyers often mix them up. Sorting them first saves a lot of wasted effort.
| Meaning | What gets reviewed | Best fit |
|---|---|---|
| All cash | Proof of funds only | Large liquid balances, no need for leverage |
| Savings as the down payment | Your income and debts | Retirees with a pension or steady income |
| Savings as the qualifying source | Documented assets | Big balances, little documented income |
The third row is where most of the confusion lives. Lendmire arranges those loans through asset-based mortgage programs placed with select lenders in its network. A retiree, a business seller or an early-retired professional often has seven figures in accounts and almost no traditional employment income. A standard income-based file reads that profile badly. An asset-based file reads it well.
Path One: Paying All Cash
All cash is common among vacation buyers. NAR’s Economists’ Outlook reports that over a 10-month window, 57% of vacation-home buyers and 56% of investment buyers paid all cash. That is a broad vacation category, not a snowbird count, but it tells you what a financed offer may be up against.
Cash removes the lender. It does not remove paperwork. Sellers and title companies commonly ask for a recent statement showing the funds are real and in your name.
Cash also has costs that never show up on the offer. Pulling a large balance from a traditional retirement account can trigger a tax bill. Tax treatment can depend on how the funds are used and how the property is held; borrowers should keep clear records and speak with a qualified tax professional before relying on any deduction.
There is a liquidity cost too. Once the money goes into a house, it is not available for a roof, a medical bill or the next opportunity. Many retirees with large portfolios prefer to keep assets invested and borrow against them. This is a genuine toss-up, and the answer depends on how much cushion remains after closing.
Path Two: Letting Savings Qualify the Loan
Across Lendmire’s wholesale network, asset-based loans come in two flavors. A borrower is qualified on one at a time, never a blend. The tables below keep them apart.
The asset qualifier path
Here the lender asks one question: do your eligible assets equal or exceed the entire loan? If yes, the loan is reviewed on assets alone. No employment or income is documented.
Typical figures, subject to underwriting and through select programs:
- Leverage: up to 80% loan-to-value on a purchase and 75% on a refinance, for a principal residence or second home.
- Loan size: up to $4,000,000.
- Credit: a 600 minimum score.
- Seasoning: 60 days, with two months of statements for each qualifying account.
- Reserves: none required at or below 75% loan-to-value. Above that, the lender sets them.
Different accounts count at different percentages. Brokerage, certificates of deposit, money market and savings count at 100%. Retirement accounts count at 90% if you are under 59½ and 100% at 59½ or older. Accounts combine.
Here is an illustration. Say the loan is $800,000. You hold $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, which matches the loan and is reviewed on assets alone. The lender’s own calculation governs, and your down payment funds are reviewed separately.
The asset depletion path
Here the lender turns your assets into income. Usable assets are divided by 60 months, and the result must carry the full housing payment and your other debts through the debt-to-income test.
Typical figures, subject to underwriting:
- Leverage: up to 80% on a purchase or rate-and-term refinance and 60% on a cash-out refinance, for a principal residence or second home. On an investment property the limits are 65% and 60%.
- Loan size: $125,000 to $3,500,000.
- Credit: the lender’s score and loan-amount matrix. A first-time investor needs 700.
- Statements: at least 120 days old at application, plus one dated within 45 days.
- Minimums: qualified assets of at least the lesser of $1,000,000 or 1.25 times the loan, and never below $250,000 liquid when assets are your only income source.
The haircuts are steeper here. Cash and certificates of deposit count at 100%, securities at 80%, private stock at 75%, retirement accounts at 70% at any age and real-estate equity at 60%.
Run the numbers on a portfolio of $1,500,000 in securities (80% counts, so $1,200,000) plus $300,000 in cash (100%). That is $1,500,000 usable. Divide by 60 months and you get $25,000 of monthly qualifying income. That income then has to carry the housing payment and other debts. Asset-derived income can also supplement documented income, up to a 45% debt-to-income ratio.
Side by side
| Factor | Asset qualifier | Asset depletion |
|---|---|---|
| How assets are used | Must cover the whole loan | Divided by 60 into income |
| Purchase leverage (second home) | Up to 80% | Up to 80% |
| Retirement accounts | 90% under 59½, 100% after | 70% at any age |
| Securities | 100% (brokerage) | 80% |
| Credit | 600 minimum | Lender’s matrix |
The qualifier path suits a borrower whose balances are large relative to the loan. The depletion path suits someone who wants to finance more of the home but can document the assets to support it. Both are consumer mortgages, and neither is a no-credit-check product.
What Does Not Count as Savings?
Some assets look big on a net-worth statement and count for nothing here. Custodial accounts, deferred compensation, escrow accounts, foreign funds, cash on hand, stock options and non-vested restricted stock units are not eligible on the depletion path. Cryptocurrency, precious metals, collectibles and borrowed or pledged funds are not published as eligible on either path.
The documented route for those holdings is to convert them to a seasoned cash balance in a regulated account. The lender then reviews the source. Plan for that seasoning window before you shop, not after you find the house.
Where Does a Rental-Income Loan Fit? (It Doesn’t, Here)
A DSCR loan, which qualifies primarily on property-level rental income covering the payment, subject to lender guidelines, is the wrong tool for a winter home you live in. 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.
The occupancy line is concrete. Under the CFPB’s commentary on exempt transactions, the business-purpose presumption for a rental does not apply if you expect to occupy the property more than 14 days in the coming year. The commentary’s own example is a beach house the owner uses for a month and rents out the rest of the year, which counts as owner-occupied. A snowbird who spends a winter there clears 14 days easily.
So the winter home is a consumer-purpose second home. That is exactly why asset-based underwriting exists for it. The lender documents that you can repay, and it uses assets instead of paychecks to do so.
Two corollaries matter for investors:
- Rent cannot rescue thin numbers. Consumer-purpose second-home underwriting generally does not count projected rent to qualify. If the deal only works with rent, you are really buying a rental, and that is a different loan with a different occupancy promise.
- An LLC is not a workaround. Title in an entity name does not change how you use the home, and any entity borrowing remains subject to program terms. A law-firm analysis from Hunton Andrews Kurth makes the point that business purpose does not mean compliance-exempt. Occupancy and purpose drive the file, not the borrower’s name.
The same buyer can end up on both sides over time. Buy a winter home you live in, and it is a second home. Later buy a pure rental, and that purchase belongs on the investor side. Declare each one honestly at intake.
Can You Buy Where You Want to Winter?
Not everywhere. Lendmire’s consumer lending for this program is licensed in 16 states: Alabama, California, Colorado, Florida, Georgia, Indiana, Michigan, Montana, New Mexico, North Carolina, Ohio, Pennsylvania, Tennessee, Texas, Virginia and Washington. The program figures above do not change by state, but the property has to sit in one of them.
For a New Mexico buyer, that includes a second home in Florida, Texas or California. It also includes a place in your own state, such as a Las Cruces or Albuquerque house for the mild months. Arizona, a favorite winter destination, is not on the list. If your heart is set there, expect to look at other options.
Cash competition varies by market. NAR’s analysis of cash purchases named Santa Fe at 67%, the highest share it found. That data is dated, so read it as directional.
Condo and HOA rules deserve a look before you offer. Some boards restrict second-home owners, and second-home insurance is often priced differently from a primary home. Neither is a loan issue, but either can change the carry.
When Savings Alone Isn’t Enough
Savings alone falls short in a few predictable ways.
- Thin liquid balances. On the depletion path, you generally need at least $250,000 in liquid assets when they are your only income source.
- Concentrated holdings. Money tied up in private stock, real estate equity or ineligible accounts is discounted or excluded.
- Fresh money. Funds that arrived last week have not seasoned. Gifts, transfers between accounts and large deposits draw questions.
- Credit trouble. A recent housing event needs 4 years of seasoning on the depletion path, and multiple bankruptcies are not eligible.
- Rent-dependent math. If the home only works with rental income, it is not a second-home file.
None of these ends the conversation. Most are fixable with time or restructuring, subject to lender guidelines.
Which Path Fits You?
Use this as a rough decision flow:
1. Balances well above the price and no wish to borrow: all cash may fit, if you keep a healthy reserve afterward.
2. Liquid assets that at least equal the loan: the asset qualifier path may fit, and it asks for no income documentation.
3. Large portfolio, wants more leverage: the asset depletion path may fit, since the derived income carries the payment through the debt-to-income test.
4. Steady pension or Social Security income: an income-based file may work. Some retirees blend cash and a mortgage.
5. Planning to rent it out most of the year: treat it as an investment property and route it accordingly.
Key Terms Defined
Asset-based mortgage: a consumer home loan that is reviewed around documented assets instead of employment income.
Asset qualifier path: the route where eligible assets must equal or exceed the entire loan amount, with no income documented.
Asset depletion path: the route where usable assets divided by 60 months become monthly qualifying income.
Seasoning: how long funds have sat in your account, so the lender can see they are really yours.
Proof of funds: a recent statement showing you have the cash to close.
Debt-to-income ratio: your monthly debts, including the new housing payment, compared with your monthly income.
Frequently Asked Questions
Do I need any income to buy a winter home with savings?
Not on the asset qualifier path, where no employment or income is documented. Eligible assets must cover the whole loan, and your credit is still reviewed. On the asset depletion path, your assets are converted into qualifying income, so the income exists on paper even if it is not a paycheck.
Do my retirement accounts count?
Yes, with limits. On the asset qualifier path, 401(k) and IRA balances count at 90% under age 59½ and 100% at 59½ or older. On the asset depletion path they count at 70% at any age. Every figure is subject to underwriting.
Can I rent the winter home out when I’m away?
Occasional rental use is a classification question, not a loan feature. If you will occupy the home more than 14 days a year, treat it as a second home and disclose your plans accurately. If the property is truly non-owner-occupied, it belongs in investor financing instead.
What proof of funds will I need?
For cash, sellers and title companies commonly ask for a recent statement. For the asset qualifier path, expect two months of statements per account and 60 days of seasoning. For the asset depletion path, expect statements at least 120 days old plus one within 45 days.
Should I rent a winter place first?
For many retirees, yes. A season or two of renting shows whether the town, the weather and the upkeep suit you before any money moves. If you already know where you want to spend winters, buying on assets is a workable route.
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. Program terms are subject to underwriting and are not a commitment to lend.
Winter buyers who commit to a house they will actually use usually do best when the financing matches the way they live, and savings can do that job in more than one form.
Lendmire’s asset-based mortgage in New Mexico page presents the program for New Mexico borrowers.
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.
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 – The Cash Buyer and the Waltz of the Rising Rates
2. CFPB – Regulation Z § 1026.3 Exempt Transactions
3. Hunton Andrews Kurth – Beware of Business Purpose
4. NAR Economists’ Outlook – Where Are Buyers Paying Cash for Homes?
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 Use an Asset-Based Mortgage to Buy a Pennsylvania Home for Your Parents? · How Snowbirds Get a Mortgage on a Winter Home Without Income · Can You Buy a Multi-Generational Home on an Asset Qualifier Mortgage?
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
Required disclosures. Lendmire (NMLS# 2371349) operates as a licensed mortgage broker, not a direct lender or depository. The discussion in this article is general in nature and should not be relied upon as financial, legal, or tax advice — every investment scenario is unique and should be reviewed by a qualified professional. Any loan inquiry is subject to lender underwriting, and this article is not a commitment to lend or a guarantee of approval. Mortgage rates, loan terms, and program guidelines vary by borrower, property, and state, and may change without notice. Equal Housing Opportunity. Verify licensure at NMLS Consumer Access.