The Quick Read: An Ohio retiree can qualify for a mortgage on a portfolio instead of a paycheck, because select lenders will count documented assets in place of employment income. Which route fits depends on one choice: let the assets cover the whole loan, or convert them into a monthly qualifying income.
- 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, which then runs through the debt-to-income test.
- You keep your investments. The lender calculates on paper; you do not have to sell anything to qualify.
- Assets are still documented. Expect no traditional personal-income documentation, pay stubs or employment verification, but plenty of account statements.
- Every figure is subject to underwriting and varies by lender, property and credit profile.
A retiree with a seven-figure portfolio and a modest pension often gets the odd result at a big bank: plenty of money, not enough income. The loan systems at large retail lenders are built around pay stubs. That is the gap the asset-based mortgage fills. This guide walks through how it works, step by step.
What “Buying on Savings” Actually Means
Three different things hide inside that phrase, and mixing them up wastes months.
1. Paying cash. You write the check. No loan, no qualifying.
2. Withdrawing retirement money for the down payment. You pull funds out of an IRA or 401(k) and still need to qualify for a loan on the rest.
3. Qualifying on assets. The portfolio stays invested. The lender treats it as the basis for repayment.
This article covers the third. Lendmire’s asset-based mortgage programs are built for it. They fit retirees, people who sold a business, heirs, and households living on a portfolio. Their balances are large and their documented income is not.
Ohio is one of the states where Lendmire arranges consumer mortgages through select lenders. The program figures below do not change by state. Ohio shapes your costs, not the qualifying rules.
One more split matters. If the home is a rental, the loan lane is different. Rental financing qualifies primarily on property-level rental income covering the payment, subject to lender guidelines. This article is about the home you will live in, or a second home.
Path One: Assets Cover the Whole Loan
The asset qualifier path is the simplest idea in the program. Your eligible assets, after credit percentages, must equal or exceed the entire loan amount. No employment or income is documented.
Here is how the balance counts on this path, through select programs and subject to underwriting:
| Asset | Share that counts |
|---|---|
| Brokerage accounts | 100% |
| Certificates of deposit | 100% |
| Money market | 100% |
| Savings | 100% |
| 401(k) and IRA, under age 59½ | 90% |
| 401(k) and IRA, 59½ or older | 100% |
Accounts combine. Picture an $800,000 loan. You hold $330,000 in brokerage accounts (counts at 100%, so $330,000), $300,000 in a 401(k) while under 59½ (90%, so $270,000) and $200,000 in savings (100%, so $200,000). That is $800,000 of usable assets, and the file is reviewed on assets alone. The lender’s own calculation governs, but that is the shape.
Other terms on this path, typically:
- Leverage: up to 80% loan-to-value (the loan as a share of the home’s 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. Seasoning means how long the money has sat in the account.
- Reserves: none required at or below 75% loan-to-value. Above that, the lender sets them.
Cash-out proceeds on this path are set by the lender and are not published. Do not plan around them.
Path Two: Assets Become Income
The asset depletion path works differently. The lender takes your usable assets and divides them by 60 months. The result is a monthly qualifying income. That income must carry the full housing payment and your other debts through the debt-to-income test.
Different asset types get different haircuts on this path:
| Asset | Share that counts |
|---|---|
| Cash accounts | 100% |
| Certificates of deposit | 100% |
| Securities | 80% |
| Private stock | 75% |
| Retirement accounts | 70%, any age |
| Real-estate equity | 60% |
Run one example. You hold $1,500,000 in securities (80%, so $1,200,000) and $300,000 in cash (100%, so $300,000). That is $1,500,000 usable. Divided by 60 months, it produces $25,000 of monthly qualifying income. That income then has to carry the housing payment and other debts.
Notice the retirement account line. It counts at 70% at any age on this path. On the qualifier path, the same account counts at 90% or 100%. So a retiree with mostly IRA money often does better on the qualifier path, while someone with big securities and cash holdings may prefer depletion.
Depletion path terms, typically:
- Leverage: on a principal residence or second home, up to 80% on a purchase or rate-and-term refinance and 60% on a cash-out refinance. Cash-out proceeds never count as qualifying assets.
- Loan size: $125,000 to $3,500,000.
- Minimum assets: the lesser of $1,000,000 or 1.25 times the loan balance. It must never fall below $250,000 liquid when asset depletion is your only income source.
- Credit: the lender’s score and loan-amount matrix. A first-time investor needs a 700.
- Seasoning: statements at least 120 days old at application, plus the most recent statement within 45 days. Funds from a business sale, inheritance or legal settlement are excused from that seasoning.
- Supplementing income: asset income can add to documented income, such as a pension, up to a 45% debt-to-income ratio. When it supplements, the minimum-assets rule is waived.
One path at a time. A borrower is qualified on the qualifier path or the depletion path, never a blend of the two tables.
How Underwriting Treats Your Savings, Step by Step
Here is the sequence a file follows. Nothing here is a shortcut. Every file is fully underwritten.
1. Pick the path. Your broker compares your statements against both tables and checks which one clears.
2. Inventory the accounts. List every checking, savings, brokerage, CD and retirement account with balance and age.
3. Check seasoning. Newly moved money gets scrutiny. Sixty days on the qualifier path and 120 days on the depletion path are the clocks.
4. Apply the percentages. Each balance is cut to its counting share. The total is your usable asset figure.
5. Run the test. On the qualifier path, usable assets are compared against the whole loan. On the depletion path, the derived income goes through the debt-to-income test.
6. Review credit and the property. Credit score, housing history and the appraisal still matter. Housing history of 0x30x12 is the target. One 30-day late in the last twelve months is considered case by case.
The legal frame behind this is worth a short look. Federal ability-to-repay rules let a lender base repayment on income, on assets, or both. The CFPB’s rule text lists assets such as savings or checking balances, vested retirement amounts, stocks, bonds and CDs. The lender must also check whatever it relies on. The eCFR version of the rule requires third-party records for the income or assets it counts.
That explains why you will hand over statements even though no one asks for pay stubs. Skipping income documents never means skipping documentation. The assets are the documentation.
What Does Not Count (and the Workaround)
Plenty of wealth sits outside the tables. On the depletion path, these are not eligible:
- custodial accounts
- deferred compensation
- escrow accounts
- foreign funds
- cash on hand
- stock options
- non-vested restricted stock units
- funds from non-regulated financial companies
Cryptocurrency, precious metals, collectibles, pledged or borrowed funds, and business accounts beyond your ownership share are not published as eligible on either path. The documented route is converting them into a seasoned cash balance in a regulated account. The lender then reviews the source of the funds. Plan that conversion early, because seasoning clocks start when the money lands.
Cash, Withdrawal or Asset-Based Loan?
The best choice depends on what you want your portfolio to do after closing.
| Factor | Pay cash | Withdraw retirement funds | Qualify on assets |
|---|---|---|---|
| Portfolio stays invested | No | Partly | Yes |
| Monthly obligation | None | Smaller loan | Full loan |
| Liquidity after closing | Lowest | Reduced | Highest |
| Qualifying needed | None | Yes, for the rest | Yes, on assets |
Taking money out of a retirement account can trigger a tax bill. Tax treatment varies; consult a qualified professional before choosing a funding source.
Qualifying on assets keeps your money working and your cash flexible. The trade-off is a monthly payment and a loan to carry. Paying cash is cleaner on paper but can leave a retiree house-rich and cash-poor. Honestly, this is a genuine toss-up for many households, and it turns on how much liquidity you want to keep for medical costs, travel or helping family.
Where the General Rule Breaks
Some situations bend the rules above.
Thin or concentrated assets. The depletion path wants qualified assets of at least the lesser of $1,000,000 or 1.25 times the loan. A portfolio in one account or one stock gets harder scrutiny.
Investment property. On the depletion path only, an investment property is allowed, at lower leverage: up to 65% on a purchase or rate-and-term refinance, and 60% on a cash-out. That loan is business-purpose. The asset qualifier path is for a principal residence or second home. Because business-purpose investor loans are reviewed differently from a standard owner-occupied mortgage, expect a different file.
Recent housing events. A housing event needs 4 years of seasoning on the depletion path. Multiple bankruptcies are not eligible.
Big loans. The ceiling is $4,000,000 on the qualifier path and $3,500,000 on the depletion path. Larger balances mean lower leverage and closer review, not looser.
Couples. Joint assets and joint borrowers change the math. Lendmire’s piece Can Two Ohio Retirees Buy a Home Together on an Asset Qualifier Mortgage? covers that case.
In files like these, the borrower’s first instinct is usually to count everything. Underwriters count only what is documented, seasoned and eligible. The strongest files across the wholesale network show the account owner’s name, two clean statements and a balance that has sat still. Moving money around the week before applying can complicate an otherwise strong file.
Ohio Context
Ohio costs are real, but they sit outside the program. Property taxes and homeowners insurance vary by county, and both feed the monthly housing payment. On the depletion path, that payment is what your derived income has to carry. So a county with higher carrying costs asks more of your 60-month income figure, even though the divisor and haircuts never change.
Price the full monthly obligation before you sign a purchase contract. Do it with a broker who has your statements in hand. That one step prevents most of the surprises.
Who Should Skip This
Honest disqualifiers:
- Your documented assets are thin relative to the loan.
- Most of your wealth sits in ineligible holdings you cannot convert.
- You would be left with little liquid cash after closing.
- Your credit falls below the floor for the path that fits you.
Also weigh market risk. On the depletion path, a falling portfolio shrinks your derived income at the next review. Keep a cushion beyond the minimum.
Key Terms Defined
Asset qualifier: a path where eligible assets, after credit percentages, cover the entire loan with no income documented.
Asset depletion: a path where usable assets divided by 60 months become monthly qualifying income.
Loan-to-value (LTV): the loan amount as a percentage of the home’s value.
Seasoning: how long funds have sat in an account before the lender counts them.
Debt-to-income (DTI): monthly debts, including the new housing payment, compared with monthly qualifying income.
Haircut: the share of an asset’s balance the lender does not count.
Frequently Asked Questions
Do I have to sell stocks or empty my IRA to qualify?
No. The lender calculates on paper and your holdings stay where they are. On the depletion path, the derived income is a calculation, not a forced withdrawal. Your funds still need to be documented and seasoned.
Which path is better if most of my money is in a 401(k) or IRA?
Often the qualifier path. Retirement balances count at 90% under age 59½ and 100% at 59½ or older there. On the depletion path they count at 70% at any age. Your statements decide, subject to underwriting.
Can I add my pension or Social Security to the asset income?
On the depletion path, yes. 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. Terms vary by lender.
Does buying on savings mean no paperwork and no credit check?
No. You will not be asked for traditional personal-income documentation, pay stubs or employment verification. You will be asked for statements, and your credit is reviewed. The qualifier path has a 600 minimum score, and the depletion path follows the lender’s matrix.
How much will the lender let me borrow against the home?
On a principal residence or second home, up to 80% on a purchase and 75% on a refinance on the qualifier path. On the depletion path it is up to 80% on a purchase or rate-and-term refinance and 60% on a cash-out refinance. These are ceilings, not offers.
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.
For an Ohio retiree, the paycheck was never the real test. The statements are.
Lendmire’s asset-based mortgage in Ohio page presents the program for Ohio 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 traditional personal-income documentation, 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
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? · How Pennsylvania Retirees Qualify for a Mortgage Without a Paycheck · Can a Pennsylvania Snowbird Buy a Winter Home on Savings Alone?
Guides: Asset-Based Mortgage in Ohio
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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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.