The Quick Read: Yes, but only through three routes: paying all cash, using savings as the down payment on a loan that still tests your income, or qualifying on documented assets through select asset-based mortgage programs that skip traditional personal-income documentation, pay stubs and employment verification, subject to underwriting. A rental-income loan is the wrong tool for a home you live in all winter.
- All cash: No lender is involved, but sellers and title companies usually still want proof of funds.
- Savings as a down payment: The lender still tests your income and monthly debts.
- Assets as the qualifier: Through select programs, large balances can cover the loan or stand in for income. The file is fully underwritten and the assets are documented with statements.
- Rental-income loans: They are built for investment property you do not live in, so they do not fit a winter home.
What Does “Savings Alone” Actually Mean?
It means one of three different things, and each one runs through a different process. Most confusion comes from treating them as one. A retired Ohio couple with a large portfolio and a small pension can fit all three, but each path asks for different paperwork and leaves a different amount in the bank afterward.
| Path | What the other side wants to see | Best fit | Main trade-off |
|---|---|---|---|
| All cash | Proof of funds | Plenty of liquid money | Drains reserves |
| Savings as down payment | Income, debts, credit | Steady pension or Social Security | Income is still tested |
| Assets as the qualifier | Seasoned statements | Big balances, small income | Program limits apply |
The sections below take them in order. Program figures are ceilings and floors that come through select lenders in Lendmire’s network. They are not offers, and every file is underwritten individually.
Can You Just Pay Cash?
You can, and many vacation buyers do. A NAR Economists’ Outlook piece reports that over a ten-month window, 57% of vacation-home buyers and 56% of investment buyers paid all cash. Those are national figures for vacation buyers generally, not snowbirds specifically. NAR’s 2025 Profile of Home Buyers and Sellers puts all-cash purchases at a record 26% across all buyers.
The practical point is that a financed offer in a vacation market often competes against cash. That is one reason some snowbirds look at asset-based financing instead of draining an account.
Cash does not mean paperwork-free. Sellers and title companies typically ask for proof of funds, such as recent statements showing the money is liquid and in your name. Money sitting in a retirement account is not cash until you withdraw it.
Withdrawals carry a cost. Kiplinger warns that a large traditional IRA distribution can trigger a big tax bill, which makes “savings alone” costlier than it looks for some retirees. 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.
Paying cash is also not always the smarter move. Some retirees combine cash with a mortgage so they keep a cushion for repairs, insurance and the next surprise.
Savings as a Down Payment, Income as the Test
If you use savings for the down payment and finance the rest the conventional way, the lender still tests income. That is the default path for a second home. The lender looks at the new payment, insurance, taxes, your current home’s housing costs and your other monthly debts, as HSH explains.
Being out of the workforce is not automatically a barrier. Kiplinger notes that retirees on pensions, withdrawals or Social Security can still be considered. The trouble starts when you hold a large portfolio and draw little from it. A standard income test reads that profile as thin, even though the balance sheet is strong.
That mismatch is exactly what asset-based programs were built for.
How Can Your Assets Qualify the Loan?
Through asset-based mortgage programs, your documented balances do the work that paychecks normally do. There are two paths. You are qualified on one at a time, never a blend of both.
The asset qualifier path covers the whole loan with eligible assets. No employment or income is documented. The asset depletion path divides your usable assets by 60 months to produce a monthly qualifying income. That income then runs through the debt-to-income test along with the housing payment and your other debts.
| Factor | Asset qualifier | Asset depletion |
|---|---|---|
| Core idea | Assets cover the entire loan | Assets become monthly income |
| Second home, purchase | Up to 80% | Up to 80% |
| Refinance | 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 |
Cash-out proceeds never count as qualifying assets on the depletion path. Whether cash-out is allowed on the qualifier path is set by the lender and is not published, so no figure is stated here.
What Counts, and How Much
Not every dollar counts at face value. On the qualifier 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 at 100% at 59½ or older.
- Accounts combine.
On the depletion 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%.
That last line matters for Ohio owners with a paid-down primary home, because equity can count, but only at 60% on the depletion path.
Some assets are not eligible on the depletion path at all. Those include 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 and pledged or borrowed funds are not published as eligible on either path. The documented route is to convert them to a seasoned cash balance in a regulated account, with the source reviewed by the lender.
Seasoning, Minimums and Reserves
Seasoning is the waiting period money must sit in your account before it counts. On the qualifier path, funds need 60 days of seasoning and two months of statements for each qualifying account. On the depletion path, statements must be at least 120 days old at application, plus a recent statement within 45 days. Sale-of-business, inheritance and legal-settlement funds are excused from that seasoning.
The depletion path also has minimums. 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 source, you also need at least $250,000 liquid. If asset-derived income supplements documented income, it can count up to a 45% debt-to-income ratio, and the minimum-assets rule is waived.
Reserves are cash left over after closing. On the qualifier path, none are required at or below 75% loan-to-value, and above that the lender sets them. The depletion path has no published reserve months.
Credit still matters. Housing history is typically 0x30x12, and one 30-day late in the last twelve months is considered case by case. Multiple bankruptcies are not eligible. All of this is subject to underwriting, and nothing here is a promise of approval.
Two Illustrative Ohio Files
Say a retired Ohio couple wants an $800,000 loan on a winter home in the Sun Belt. They hold $330,000 in brokerage accounts, $300,000 in a 401(k) and $200,000 in savings. One spouse is under 59½.
On the qualifier path, the brokerage accounts count at 100%, or $330,000. The 401(k) counts at 90% under 59½, or $270,000. Savings count at 100%, or $200,000. Together that is $800,000 of usable assets, which matches the loan, so the file is reviewed on assets alone. The lender’s own calculation governs.
Now take a couple with $1,500,000 in securities and $300,000 in cash. Securities count at 80%, or $1,200,000. Cash counts at 100%, or $300,000. That is $1,500,000 usable, and divided by 60 months it produces $25,000 of monthly qualifying income. That income then carries the housing payment and other debts through the debt-to-income test.
The first couple needs no income test, but their assets must cover the entire loan. The second couple’s assets only need to produce enough income. Which path fits depends on your balances and on how much the debt-to-income test leaves you.
Across the lenders Lendmire works with, the usual stumbling block is not the balance. It is statements that show a transfer from last month, an account in a trust or business name, or a retirement account whose terms limit withdrawals. Gathering clean statements early prevents most surprises.
Is a Winter Home a Second Home or an Investment Property?
For a snowbird, it is a second home. Occupancy decides the loan lane, and the label you choose does not. If you live in the home for a winter, you cannot call it a rental to qualify for a different product.
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 federal rule behind that treatment, Regulation Z § 1026.3, deems credit for a non-owner-occupied rental to be business purpose. An owner who expects to occupy the property for more than 14 days cannot use that treatment. A snowbird who stays all winter is far beyond that line.
Misstating occupancy on a business-purpose affidavit is a misrepresentation to the lender. It is not a clever workaround.
Renting the home part-time does not fix this either. Rental income generally cannot be used to qualify a second-home loan, and a buyer who needs the rent to qualify must apply for an investment property loan. Short-term rental rules can vary by city, county, HOA and property type, so confirm local rules before relying on projected rental income.
Investment property does exist in the asset-based world, but only on the depletion path. There it tops out at 65% on a purchase and 60% on a cash-out, compared with 80% and 60% for a second home. It is a business-purpose loan, and it suits an actual rental rather than a winter retreat.
The Ohio Angle and the Costs Behind the Price
Ohio is the only thing here that is specific to you. Lendmire’s consumer mortgage lending is licensed in 16 states, Ohio among them, so an Ohio buyer can work with the brokerage on the personal side. The program figures above do not change by state. The home you buy can be anywhere that fits the property and lender requirements.
Your Ohio home can matter in two ways. First, its equity can count at 60% on the depletion path. Second, borrowed money does not count. A HELOC draw on the Ohio home is borrowed funds, which are not published as eligible on either path, so a HELOC-funded down payment is a different conversation.
Costs that do not show up in the price deserve a line in your budget. Kiplinger says insurers typically charge more for second homes because they sit vacant part of the year, and property taxes may run higher than in your home state. Association dues, utilities and upkeep add to the carry on a second home, so get an insurance quote and the association’s numbers before you bid.
Also think about liquidity after closing. If the home absorbs most of your cash, a roof or a medical bill becomes harder to absorb.
Before You Make an Offer
- Decide the use. Personal seasonal use points to a second home. Rent-reliant files belong in a different loan lane.
- Pick your path. Cash, savings plus income-based financing, or assets as the qualifier.
- Inventory your balances. List each account, its type and how long the money has been there.
- Season what needs seasoning. Move any new deposits early, and keep sources documented.
- Get insurance and association numbers. Do this before the offer, not after.
- Talk to a tax professional. Do this before any large retirement withdrawal.
Key Terms Defined
Asset qualifier: A program path where eligible assets, after credit percentages, equal or exceed the whole loan amount.
Asset depletion: A path that divides usable assets by 60 months to produce a monthly qualifying income.
Seasoning: The period money must sit in an account before a lender counts it.
Proof of funds: Statements or letters showing you have the cash to complete a purchase.
Reserves: Liquid money left after closing that a lender may want to see.
Second home: A home you use personally for part of the year, which is financed differently from a rental.
Frequently Asked Questions
Can I use my 401(k) or IRA to buy a winter home?
Yes, in two ways. You can withdraw funds and pay cash, which may carry a large tax cost. Or you can document the balance as an asset on an asset-based program. Retirement accounts count at 90% under 59½ and 100% after on the qualifier path, and at 70% on the depletion path, subject to underwriting.
Can I qualify with no income at all?
Through the asset qualifier path, no employment or income is documented, but the file is fully underwritten and the assets are documented with statements. Eligible assets must cover the entire loan. On the depletion path, assets are converted into qualifying income, which must still pass the debt-to-income test.
Does renting out the home change the loan?
It can. Rental income generally cannot be used to qualify a second-home loan, and a buyer who needs the rent to qualify is steered to an investment property loan. Occupancy, not the label, decides the lane.
Is paying cash always better?
Not necessarily. Cash avoids a lender, but it drains reserves and can mean a taxable withdrawal. Some retirees combine cash with financing to keep a cushion. The right balance depends on your balances, your other income and how much liquidity you want to keep.
Do I need to be an Ohio resident to use these programs?
Lendmire’s consumer lending is licensed in Ohio, so an Ohio borrower can work with the brokerage on a personal-use home. The program figures are the same regardless of where you live, and every file is reviewed individually by the lender.
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. You can reach the brokerage at 828-256-2183. For an Ohio retiree, the real question is rarely whether the savings are big enough. It is which path keeps enough of them untouched after the keys change hands.
Lendmire’s asset-based mortgage in Ohio page presents the program for Ohio borrowers.
About Lendmire
Lendmire, NMLS# 2371349, is a mortgage brokerage with consumer lending licenses in 16 states. Bank statement, P&L-only, 1099-only and asset-based mortgages are arranged through wholesale lending partners for borrowers whose tax returns understate their income, and each application is reviewed individually by the lender. 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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References
1. NAR Economists’ Outlook: The Cash Buyer
2. NAR Profile of Home Buyers and Sellers
3. Kiplinger: Great Places for Snowbirds to Land
This article is part of Lendmire’s asset-based mortgage program — full qualification details, guidelines, and scenarios live on the program page.
Related reading: How Snowbirds Get a Mortgage on a Winter Home Without Income · Can a Virginia Retiree Get a Mortgage on Savings and Investments Alone? · Can You Use an Asset-Based Mortgage to Buy a Pennsylvania Home for Your Parents?
Guides: Asset-Based Mortgage in Ohio
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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Important disclosures. Lendmire (NMLS# 2371349) is a licensed mortgage brokerage. Lendmire is not a direct lender, depository institution, or financial advisor. All loan inquiries are subject to lender underwriting; this article does not constitute a commitment to lend. Rates, terms, and program guidelines are subject to change without notice and vary by borrower profile, property type, and state. Information in this article is general in nature and is not financial, legal, or tax advice. Equal Housing Opportunity. NMLS Consumer Access: nmlsconsumeraccess.org.