The Quick Read: Yes, a Pennsylvania snowbird can buy a winter home on savings alone in two ways: pay all cash, or qualify for an asset-based mortgage that counts eligible balances instead of paychecks, with no traditional personal-income documentation, pay stubs or employment verification, subject to underwriting and the lender’s review of your statements. Which route fits depends on how much you hold, how it is invested, and how you plan to use the home.
- All cash needs no lender, but it ties up a large share of your liquid savings.
- An asset-based mortgage can qualify you on assets alone, with your balances documented by statements.
- The asset qualifier path needs eligible assets to cover the entire loan. The asset depletion path turns assets into monthly income.
- A winter home you live in is a second home, so a rental-investor loan is the wrong tool.
- Leverage, seasoning and eligible accounts are set by the program and reviewed on every file.
What Does “Savings Alone” Actually Mean?
It means one of three things, and each one runs on different rules. You can pay all cash. You can use savings as a down payment and qualify for the loan on income. Or you can let the savings themselves qualify the loan.
Most snowbirds asking this question live on a portfolio, a pension, or both. The balances are large, and the documented paycheck income is small or gone. A standard income-based lender looks at that picture and sees a weak file. A lender that tests assets sees a strong one.
Can You Just Pay Cash?
Yes. Cash is common for this kind of buyer. NAR’s Economists’ Outlook reports that over a recent 10-month window, 57% of vacation-home buyers and 56% of investment buyers paid all cash. Primary-residence buyers over the same window came in at 18%. Vacation is a broad category, so those figures are not snowbird-specific. They still show how often a financed offer sits next to a cash one.
Paying cash is simple on paper. No lender reviews you. The seller will usually still want proof that the funds exist, so expect to show statements.
The catch is what counts as cash. A retirement account is not cash until you withdraw from it. The withdrawal can create a tax bill and may push you into a higher bracket.
Cash also has a liquidity cost. Say you move a large share of your savings into a winter house. That money no longer covers a roof, a health event, or a market dip. Many retirees want the home and a cushion. That is where borrowing against assets, instead of spending them, starts to make sense.
How Does an Asset-Based Mortgage Work for a Winter Home?
An asset-based mortgage is reviewed around documented assets instead of employment income. Lendmire arranges these loans as a broker through select lenders in its network. Across that network, the program splits into two paths, and you are qualified on one path at a time. Details on the program sit on Lendmire’s asset-based mortgage program page.
Both paths are fully underwritten. You still document your assets with statements. What you skip is the paycheck paperwork: no traditional personal-income documentation, pay stubs or employment verification. Programs change, and every file is reviewed individually.
The asset qualifier path
On this path, your eligible assets, after the credit percentages below, must equal or exceed the entire loan amount. No income or employment is documented. The lender’s review of your ability to repay rests on the assets.
Through select programs, leverage on a second home runs up to 80% loan-to-value on a purchase and 75% on a refinance. Loan amounts go up to $4,000,000. The credit floor is a 600 score. Reserves are not required at or below 75% loan-to-value on this path, and above that the lender sets them.
Seasoning means how long the money has sat in your accounts. Here it is 60 days, with two months of statements for each qualifying account.
| 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. Here is an illustration, and the lender’s own calculation governs. Take an $800,000 loan. 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). Together that is $800,000 of usable assets. That covers the loan, so it can qualify on assets alone, subject to underwriting.
Notice that this path asks a lot. The assets must cover the whole loan, not just the down payment. It suits a buyer with a large, liquid portfolio who wants to keep the home loan modest relative to it.
The asset depletion path
This path works differently. The lender takes your usable assets and divides them by 60 months. The result is a monthly qualifying income, and it must carry the housing payment and your other debts through the debt-to-income test. That test compares your monthly debts to your income.
Leverage on a second home runs 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 amounts run from $125,000 to $3,500,000. Credit follows the lender’s matrix.
| Asset | Share that counts |
|---|---|
| Cash accounts | 100% |
| Certificates of deposit | 100% |
| Securities | 80% |
| Private stock | 75% |
| Retirement accounts, any age | 70% |
| Real-estate equity | 60% |
Seasoning works differently here too. 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.
There are 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 in liquid assets. If asset income only supplements documented income, the debt-to-income ratio can run up to 45%, and the minimum-assets rule is waived.
Here is an illustration, again with the lender’s own calculation governing. Say you hold $1,500,000 in securities (80% counts, 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 carries the housing payment and your other debts through the debt-to-income test.
Don’t blend the two paths. Qualifier-path percentages and depletion-path haircuts differ, and each has its own seasoning rules. A good broker names the path every time a figure appears, and so should you when you compare quotes.
Which Path Fits a Snowbird Best?
It depends on your balance sheet and on how much loan you want. A portfolio large enough to cover the loan outright points to the qualifier path. A portfolio that is large but not that large points to depletion. Cash alone needs no lender at all.
| Route | What gets tested | Second-home leverage |
|---|---|---|
| All cash | Proof of funds | None needed |
| Asset qualifier | Assets cover the whole loan | Up to 80% on a purchase |
| Asset depletion | Assets become income, then DTI | Up to 80% on a purchase |
| Income-based loan | Paychecks, pensions, debts | Set by that program |
On most files across the network, the qualifier path suits a buyer with plenty of brokerage and savings money who values a simple test. Depletion suits a buyer whose assets are big but who wants the lender to see a monthly income number and test it against the payment. Retirement money tends to count for more on the qualifier path at 59½ or older, and for a flat 70% on the depletion path.
Here is a genuine toss-up. At full qualifier credit, a retirement account looks better on the qualifier path. Yet that path demands that the whole loan be covered, which may be a harder bar than the depletion test. Running both is often worth it, and a broker who sees several lenders can do that side by side.
Conventional second-home loans are a different animal. On those, savings alone typically does not carry the file, because the lender tests income and debts. Agency-style programs have their own asset rules and are described only as those programs’ rules, not this one’s. For a snowbird living on a portfolio, the asset-based route often fits the profile better.
Why Can’t You Use a Rental-Investor Loan for a Home You Live In?
Because a rental-investor loan is built for property you do not occupy. A winter home you live in for months is a second home. Rental-investor financing, such as a DSCR loan, is reviewed on rent covering the payment, and it does not fit a home you plan to occupy.
The legal line is narrow. The CFPB’s rule text and official comments add that if you expect to occupy the property for more than 14 days in the coming year, it cannot be treated as non-owner-occupied. A snowbird who stays for months is far past that line.
Putting the home in an LLC does not change that. Actual use controls the classification, not the title. Misstating occupancy to get a different loan is a misrepresentation risk, and it is not worth it.
A common pattern for an investor who also wants a winter home is two separate deals. One is a rental-investor loan for the rental. The other is cash or an asset-based consumer mortgage for the winter home. Spending savings on the winter home also lowers the cash you have for reserves and down payments on rentals, so plan the two together.
What if you rent the winter home while you are away?
Occasional rental is typically tolerated on a second-home file. Rent from it generally cannot be used to qualify. If your plan shifts to renting full time, the loan has to be re-papered, and occupancy re-certified. Be honest about intended use from day one.
What Counts, and What Doesn’t?
Cash accounts and certificates of deposit count in full on both paths. Securities and retirement balances count for less on the depletion path. Beyond that, several asset classes are not published as eligible on either path.
Not published as eligible are cryptocurrency, precious metals, collectibles, business accounts beyond your ownership share, and pledged or borrowed funds. The documented route for these is to convert them to a seasoned cash balance in a regulated account, with the source reviewed by the lender. Do not assume they count at any percentage.
This matters for a common move: borrowing from a HELOC (a home-equity line of credit) to fund the purchase. Borrowed funds are not published as eligible assets on either path. On the depletion path, equity in real estate does count at 60%. Cash-out proceeds from a refinance never count as qualifying assets.
Also not eligible on the depletion path are 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. Check your list before you apply.
What should you gather?
- Statements for every account you want counted. Two months each on the qualifier path.
- Statements at least 120 days old plus one within 45 days, on the depletion path.
- Photo ID and the purchase contract.
- A written source for any large recent deposit.
- A credit report review, because credit still counts even with strong assets.
No income documentation does not mean no documentation. Expect a lender to read every statement.
What Does the Pennsylvania Side Look Like?
The program figures do not change by state. What changes is the logistics of carrying two homes. The same terms apply to a Pennsylvania borrower as to anyone else.
Lendmire’s consumer mortgage lending is licensed in 16 states: Alabama, California, Colorado, Florida, Georgia, Indiana, Michigan, Montana, New Mexico, North Carolina, Ohio, Pennsylvania, Tennessee, Texas, Virginia and Washington. Pennsylvania is on that list, and so are several common snowbird destinations. Confirm that your winter home’s state is on the list before you plan around this program.
If you plan to sell your Pennsylvania home to fund the purchase, think about timing. Sale proceeds sitting in an account still have to meet seasoning on the path you choose. The excused categories on the depletion path are sale of a business, inheritance and legal settlement, so do not count on home-sale money being excused. Moving funds across accounts can also muddy the paper trail, so keep statements clean.
Buying a winter home does not by itself change where you live for legal purposes. That depends on where you spend your time and keep your ties. Questions about residency belong with a professional who handles them.
What Does Savings-Only Leave You Exposed To?
It leaves you with less liquidity after you close. That is the real tradeoff behind this question. A winter home brings costs beyond the loan, including insurance, association dues, upkeep and travel, and these vary a lot by county and property type.
Say you spend most of your liquid savings and then a roof or a hurricane deductible arrives. A line of credit might help, but lenders do not love lending to a buyer who just drained their reserves. A loan that is reviewed on assets leaves more of your money in your accounts, still growing and still available.
On the other hand, assets that sit in your accounts can lose value in a down market. Paying cash locks in a hard asset and removes a payment. A mortgage keeps cash flexible and adds a monthly obligation. Both are reasonable. The better choice is the one you can live with in a bad year.
For retirees, a practical test works well. Ask what would happen if your portfolio fell by a fifth while the home needed a major repair. If the answer is uncomfortable, preserving liquidity probably matters more than owning the home free and clear.
Key Terms Defined
Non-QM loan: A mortgage that does not follow the standard qualified-mortgage box, often because it qualifies the borrower on something other than paychecks.
Seasoning: How long money has been in your accounts before a lender will count it.
Debt-to-income ratio: Your monthly debts divided by your monthly income, used to see whether you can carry the payment.
Asset depletion: A method that divides usable assets by a set number of months to create monthly qualifying income.
Proof of funds: Statements that show a seller you have the money to pay cash.
What Should You Do Next?
Start by listing what you hold and where. Sort it into cash, brokerage, retirement and anything unusual. Then decide how much liquidity you want left after you buy. The answer tells you whether cash, the qualifier path or the depletion path is the better starting point.
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 through the quote request page. Nothing here is a commitment to lend, and every file is subject to underwriting.
Frequently Asked Questions
Can a reverse mortgage buy a winter home?
Not directly as a second-home purchase tool for most snowbirds. The asset-based route is a different product built for buyers who hold large balances. If you are weighing both, compare them on the same statements and the same goals.
Can I use my IRA or 401(k) to qualify?
Often yes, through select programs. On the qualifier path, retirement balances count at 90% under age 59½ and 100% at 59½ or older. On the depletion path they count at 70% at any age. You do not have to withdraw the money to have it counted, subject to underwriting.
Do I need a pension or Social Security to qualify?
Not on the asset qualifier path, which documents no income. On the depletion path, your assets are converted into monthly income, and documented income can supplement it up to a 45% debt-to-income ratio. Either way, credit and assets are still reviewed.
Can I rent the home out while I am up north?
Occasional rental is typically tolerated on a second-home file, but the rent generally cannot be used to qualify. If you plan to rent it regularly, say so up front, because that can change the loan type. Short-term rental rules can vary by city, county, HOA, and property type, so confirm local rules before relying on projected rental income.
Does it matter if my statements are brand new?
Yes. The qualifier path wants 60 days of seasoning and two months of statements for each account. The depletion path wants statements at least 120 days old plus one within 45 days. Moving money around right before you apply can slow your options, so keep accounts steady.
Lendmire’s asset-based mortgage in Pennsylvania page presents the program for Pennsylvania 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.
Get Started
Ready to find the right loan for you?
In about 30 seconds you can review financing options available for your home or investment property. No commitment required.
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 with official interpretations
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 Florida Retiree Get a Mortgage on Savings and Investments Alone? · How to Finance a Pennsylvania Vacation Home With an Asset Qualifier Mortgage · Can Two Pennsylvania Retirees Buy a Home Together on an Asset Qualifier Mortgage?
Guides: Asset-Based Mortgage in Pennsylvania
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
- Mortgage Loan Originator · NMLS# 1129696 · Verify on NMLS Consumer Access
- North Carolina Real Estate Broker · License# 343312 · Verify on NCREC
- North Carolina Insurance Producer · License# 19053198 · Property, Casualty, Life, Health · Verify on NAIC SBS
- Lendmire LLC · Firm NMLS# 2371349 · Verify firm licensure
Legal disclosures. Lendmire (NMLS# 2371349) is a state-licensed mortgage brokerage that arranges financing through wholesale lender relationships. Lendmire is not a direct lender, depository institution, or registered financial advisor. The discussion above is general informational content about real estate financing — it is not financial, legal, or tax advice, and readers should consult licensed professionals for guidance on their individual circumstances. Loan inquiries are subject to lender underwriting; this article does not represent a commitment to lend. Loan terms, rates, and qualification standards vary by borrower, property, and state, and are subject to change at any time. Equal Housing Opportunity. NMLS Consumer Access: nmlsconsumeraccess.org.