The Quick Read: A retiree with real savings and no paycheck qualifies by showing the lender the assets themselves, either as proof that the balances cover the whole loan or as a monthly income figure built from those balances, with every figure checked against statements. Select programs ask for no traditional personal-income documentation, pay stubs or employment verification. The file is still fully underwritten, so credit, the property and the paperwork on your accounts all get reviewed.
Key takeaways
- There are two asset-based paths, and a borrower is reviewed on one at a time. The asset qualifier path uses assets to cover the entire loan. The asset depletion path turns assets into monthly income.
- Eligible assets are counted at a percentage of their balance, and the percentages differ by path.
- Statements do the work a pay stub would do, so account seasoning matters.
- Leverage is a ceiling, not an offer, and it depends on the path, the occupancy and the transaction.
- Everything here is subject to underwriting through select programs in Lendmire’s wholesale network.
Why a Missing Paycheck Isn’t the Real Problem
Lenders need a documented source of repayment. A paycheck is only one of them. A retiree with a seven-figure portfolio and a modest Social Security check can look weak on a standard income test and strong on any asset test. The portfolio is real money. The question is how it gets counted.
Picture a Pennsylvania couple selling a large suburban house to downsize. They hold brokerage accounts, a few CDs and an IRA. Their taxable income is small, because they draw only what they need. A standard income-based loan sees a low number. An asset-based file sees the balances.
That gap is why a handful of programs exist. Lendmire is a broker, so it does not lend. It places these files with select lenders that write asset-based mortgages, and the lender’s own calculation governs the final answer. Pennsylvania sits among the 16 states where the consumer program is offered, and the program figures below do not change by state.
Which Path Fits You?
Pick the asset qualifier path if your balances can cover the whole loan. Pick the asset depletion path if you need your assets to become income. The first documents no income at all. The second builds an income figure and runs it through a debt-to-income test, which compares monthly debts to monthly income.
| Factor | Asset qualifier | Asset depletion |
|---|---|---|
| Core idea | Assets cover the entire loan | Assets become monthly income |
| Max leverage, purchase | 80% | 80% (home); 65% (investment) |
| Max leverage, refinance | 75% | 80% rate-and-term; 60% cash-out |
| Loan size | Up to $4,000,000 | $125,000 to $3,500,000 |
| Credit | 600 minimum | Lender’s score matrix |
| Income documented | None | Derived from assets |
Leverage on the qualifier path is capped at 80% on a purchase and 75% on a refinance, and it applies to a principal residence or second home. On the depletion path, 80% on a purchase or rate-and-term refinance and 60% on a cash-out refinance apply to a principal residence or second home. Cash-out proceeds never count as qualifying assets. Whether the qualifier path allows cash-out at all is the lender’s call and is not published.
Retirees with steady pension and Social Security income may do fine on an ordinary income-documented loan. Conventional, FHA and VA programs each set their own rules for counting retirement income, and those rules are theirs, not this program’s. This page is for the reader whose balances are large and whose documented income is not. The asset-based mortgage program page lays out the product itself.
The Asset Qualifier Path, Step by Step
On the qualifier path, your eligible assets, after the credit percentages, must equal or exceed the entire loan amount. No employment or income is documented. The lender’s ability-to-repay review rests on the assets.
Here is the sequence on most files in the network:
1. Total your accounts. Brokerage, CDs, money market and savings each count at 100%. A 401(k) or IRA counts at 90% under age 59½ and 100% at 59½ or older. Accounts combine.
2. Compare to the loan. The usable total has to reach the full loan amount.
3. Season the funds. The program wants 60 days of seasoning and two months of statements for each qualifying account.
4. Check credit. The published floor is 600, subject to underwriting.
5. Clear the property. Appraisal and title work proceed as with any purchase.
Run an illustrative example. Say the loan is $800,000. 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 is $800,000 of usable assets, which equals the loan, so the file is reviewed on assets alone. The lender’s own calculation governs.
Reserves are simple on this path. None are required at or below 75% loan-to-value. Above that, the lender sets them. So an 80% purchase may carry a reserve requirement, and a 75% refinance generally does not.
The Asset Depletion Path, Step by Step
Depletion divides your usable assets by 60 months to create a monthly qualifying income. That income then has to carry the housing payment and your other debts through the program’s debt-to-income test.
Take the program’s own illustration. You hold $1,500,000 in securities, counted at 80% for $1,200,000, plus $300,000 in cash, counted at 100%. That is $1,500,000 usable. Divide by 60 months and you get $25,000 of monthly qualifying income. That figure, not your tax return, is what the debt-to-income test sees.
The path has minimums. Qualified assets must reach the lesser of $1,000,000 or 1.25 times the loan balance. When depletion is your only income source, you also need at least $250,000 liquid. Asset 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.
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. A first-time investor on this path needs a 700 score. Everyone else follows the lender’s matrix.
What Counts, and at What Percentage
Cash and CDs count fully on both paths. Everything else is trimmed, and the trim depends on the path. Never blend the two columns below.
| Asset | Qualifier path | Depletion path |
|---|---|---|
| Brokerage / securities | 100% | 80% |
| CDs | 100% | 100% |
| Savings / money market / cash | 100% | 100% |
| 401(k) / IRA | 90% under 59½; 100% at 59½+ | 70% at any age |
| Private stock | Not listed | 75% |
| Real-estate equity | Not listed | 60% |
Some assets are excluded 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. 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 to a seasoned cash balance in a regulated account, with the lender reviewing the source. That step has its own seasoning clock.
Notice the retirement-account split. The same IRA is worth 90% or 100% on the qualifier path and a flat 70% on the depletion path. For many retirees over 59½, that alone decides which path to try first.
Pennsylvania Buyers: Who Actually Uses This
Pennsylvania retirees tend to arrive at asset-based loans from a few directions. The downsizer sells a long-held suburban house and wants a smaller place without draining the portfolio. The second-home buyer wants a Poconos retreat. The early retiree has left a career but has not reached 59½, so the 90% retirement credit on the qualifier path matters.
A few practical points follow.
Home-sale proceeds. Cash from selling your current house can fund the purchase, and it lands in your statements like any deposit. If you are buying before the sale closes, plan around that overlap with your lender early. The timing depends on the contract and the lender.
Couples. If one spouse still works, you may be able to supplement documented income with asset income on the depletion path.
Carrying costs. Property taxes and insurance vary by county, so build a realistic housing budget before you pick a price. State facts like these are context. They are never program parameters.
Keeping your investments. This is the quiet advantage. Qualifying on assets means you do not have to sell holdings or pull IRA money just to produce income on paper. Tax treatment varies; consult a qualified professional.
An experience note from the desk: the retirees who struggle are rarely short on money. They are short on tidy statements. Accounts opened last month, balances shuffled between institutions, a big deposit nobody can explain. Lenders in the network read statements line by line, and a clean paper trail does more for a file than an extra $50,000.
Where the Rule Breaks
Age cannot sink the file, but several other things can. Start with the legal ground. A CFPB consumer handout on credit discrimination lists the permitted uses of age, such as favoring borrowers 62 or older or judging whether income will drop at retirement. The Department of Justice describes the Equal Credit Opportunity Act as barring age discrimination in credit. Protection is not approval, though. You still have to qualify on the facts.
Now the real edge cases:
- Borrowed or pledged funds. They do not count on either path.
- Cash-out proceeds. On the depletion path they never count as qualifying assets, so you cannot refinance, then use the cash to qualify.
- A housing event. On the depletion path, a bankruptcy, foreclosure or similar event needs 4 years of seasoning, and multiple bankruptcies are not eligible. Housing history is 0x30x12, with one 30-day late in the last twelve months considered case by case.
- Thin liquid balances. Real-estate equity counts at only 60% on the depletion path, and the $250,000 liquid floor applies when assets are your only income.
- Investment property. This is available only on the depletion path, at 65% on a purchase or rate-and-term refinance and 60% on a cash-out. It is business-purpose lending. Because these are business-purpose investor loans, they are reviewed differently from a standard owner-occupied mortgage. Any rental income is not what carries this file, so assets still have to.
- Loan size. Above $4,000,000 on the qualifier path or $3,500,000 on the depletion path, these programs do not apply.
Programs change and every file is underwritten individually. Treat every figure as a ceiling or floor, not an offer.
Where Other Loan Types Fit
Asset-based qualifying is one tool among several, and it is not a reverse mortgage. A reverse mortgage lets an older homeowner draw against home equity without monthly payments. It does not help you buy a different home on assets. It is a separate product with its own rules.
| Option | Who it tends to suit | How income is treated |
|---|---|---|
| Income-documented conventional, FHA or VA | Steady pension or Social Security | Documented under that program’s rules |
| Full-documentation jumbo | Large loan, strong documented income | Income documented |
| Bank statement program | Borrowers documenting income with deposits | Deposits stand in for income |
| Asset-based mortgage | Cash-heavy, income-light | Assets cover the loan or become income |
Big banks and large retail lenders usually run the first two. The last row is where retirees with big balances and small paychecks often land. If you have pension income that a standard loan would count easily, price that route too.
Mistakes to Avoid Before You Apply
- Moving money mid-process. Shifting funds between accounts resets seasoning and creates deposits to explain.
- Selling investments unnecessarily. The assets may already qualify as they sit.
- Counting ineligible assets. Stock options, unvested units and cash at home do not count on the depletion path.
- Using the wrong path. Test both with your actual balances before committing.
- Assuming one percentage fits all. A retirement account is 90% or 100% on one path and 70% on the other.
- Skipping a stale statement. A statement too old for the depletion window forces a fresh pull.
Your Checklist, From First Call to Closing
1. Gather your last several months of statements for every account.
2. Run both paths on paper: usable assets versus loan, and usable assets divided by 60.
3. Check your credit and housing history.
4. Decide purchase price and leverage you actually want.
5. Talk to a broker who can compare lenders in the network.
6. Submit the file with clean, seasoned statements and an explanation for any large deposit.
7. Respond to underwriting questions as they arise, and review the disclosures you receive as a consumer buyer.
Key Terms Defined
Asset qualifier: A path where eligible assets, after credit percentages, must equal or exceed the whole loan, with no income documented.
Asset depletion: A path that divides usable assets by 60 months to create a monthly qualifying income.
Seasoning: The period funds must sit in an account before a lender counts them.
Debt-to-income ratio: Your monthly debts, including the new housing payment, divided by your monthly income.
Loan-to-value (LTV): The loan amount divided by the property’s value.
Frequently Asked Questions
Can a lender deny me because I’m retired or too old for a 30-year loan?
Not on age alone. Federal credit law bars age discrimination, though lenders may look at whether income will change at retirement. On an asset-based file, your balances, not your work history, drive the review. Approval still depends on credit, assets and the property.
Can I buy soon after I stop working?
Often yes, because these programs look at accounts, not employment. On the depletion path, funds from the sale of a business, an inheritance or a legal settlement are excused from the seasoning rule. Statement timing still applies, so keep your accounts steady.
Do I need a 600 credit score?
The qualifier path publishes a 600 minimum, subject to underwriting. The depletion path follows the lender’s matrix, and a first-time investor there needs 700. Credit is always reviewed. Terms depend on the lender’s guidelines, the property type, the leverage, and a full review of the credit profile.
Do retirement accounts count?
Yes, at a reduced share. On the qualifier path, a 401(k) or IRA counts at 90% under 59½ and 100% at 59½ or older. On the depletion path, retirement accounts count at 70% at any age.
Is this the same as a reverse mortgage?
No. A reverse mortgage draws against equity you already own. An asset-based mortgage finances a purchase or refinance with your assets as proof of repayment.
The 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.
Lendmire’s asset-based mortgage in Pennsylvania page presents the program for Pennsylvania 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.
Investors who want the broader program framework can review how DSCR loans work.
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References
1. CFPB – Helping consumers spot credit discrimination
2. DOJ Civil Rights – Equal Credit Opportunity Act
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 Two Pennsylvania Retirees Buy a Home Together on an Asset Qualifier Mortgage? · How to Buy Before You Sell in Pennsylvania Using an Asset Qualifier Mortgage · Can a Florida Buyer Qualify for a Mortgage on IRA Assets Without Withdrawals?
Guides: Asset-Based Mortgage in Pennsylvania
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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- Lendmire LLC · Firm NMLS# 2371349 · Verify firm licensure
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.