The Quick Read: Retirement does not block a refinance, because lenders need proof you can repay, and that proof can be your savings, documented retirement income, or a rental’s rent instead of a paycheck. Which proof fits depends on the property and on how your money is held. Through select programs in Lendmire’s wholesale network, Georgia borrowers can qualify on assets or on rent without a W-2, subject to underwriting.
- Your home or second home: assets can cover the whole loan (the asset qualifier path), or assets can be converted into monthly income (the asset depletion path).
- A rental property: a DSCR loan is reviewed primarily on property-level rental income covering the payment, subject to lender guidelines.
- Your assets are documented: you skip income paperwork, never asset paperwork.
- You use one path at a time: the two asset paths have different percentages, so they are never blended.
First Question: Is the Property Your Home or a Rental?
Sorting the property comes before any math, because it decides which loans are even available. A home you live in or a second home can use an asset-based mortgage. A rental can use a DSCR loan, which looks at the rent instead of you.
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. DSCR stands for debt service coverage ratio, which is monthly rent divided by the full monthly payment, including taxes, insurance, and any HOA dues. A ratio of 1.00 means rent equals the payment. Some select lenders in the network will review files below 1.00, though leverage and terms adjust when they do.
A DSCR loan cannot refinance the house you live in. It also ignores your Social Security, pension, and account balances when it tests the loan. If you hold a rental, the complete DSCR loans guide covers the mechanics.
The rest of this article is about the other lane: your own residence or second home, with a large balance sheet and little documented income.
Path One: Assets Cover the Entire Loan
The asset qualifier path asks a single question: do your eligible assets, after the credit percentages below, equal or exceed the whole loan? If they do, no employment or income is documented. The lender’s ability-to-repay review rests on the assets.
Here is the shape of a qualifying file, using illustrative numbers. Say the loan is $800,000. You hold $330,000 in brokerage accounts, which count at 100%, so $330,000. You hold $300,000 in a 401(k) while under age 59½, which counts at 90%, so $270,000. You hold $200,000 in savings, which counts at 100%, so $200,000. Together that is $800,000 of usable assets, and the file is reviewed on assets alone. The lender’s own calculation governs.
Key figures for this path, all subject to underwriting:
- Brokerage, CDs, money market, and savings count at 100%.
- 401(k) and IRA balances count at 90% under age 59½ and 100% at 59½ or older.
- Accounts combine.
- Loans go up to $4,000,000.
- Leverage reaches 75% on a refinance of a principal residence or second home.
- The minimum credit score is 600.
- No reserves are required at or below 75% loan-to-value.
- Whether cash-out is allowed on this path is set by the lender and is not published.
Path Two: Assets Become Monthly Income
The asset depletion path turns your balances into income. The lender applies a haircut to each asset type, adds the usable total, and divides by 60 months. That number is your monthly qualifying income. It then has to carry the housing payment and your other debts through a debt-to-income test, which compares monthly debts to monthly income.
Run the numbers on $1,500,000 in securities, which count at 80%, so $1,200,000, plus $300,000 in cash at 100%. That is $1,500,000 usable, divided by 60 months, which gives $25,000 of monthly qualifying income. The payment and other debts must fit inside that figure. Again, the lender’s calculation governs.
This path has stricter entry rules:
- Loans run from $125,000 to $3,500,000.
- Qualified assets must be at least the lesser of $1,000,000 or 1.25 times the loan balance.
- When depletion is your only income source, you need at least $250,000 liquid.
- Asset-derived 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.
- The lender’s score-and-loan-amount matrix sets the credit requirement.
Which Assets Count, Side by Side
Each path counts assets differently, so read the column for the path you are on.
| Asset | Qualifier path | Depletion path |
|---|---|---|
| Cash, savings, money market | 100% | Cash accounts 100% |
| Certificates of deposit | 100% | 100% |
| Brokerage / securities | 100% | Securities 80% |
| 401(k) or IRA | 90% under 59½; 100% after | 70% at any age |
| Private stock | Not listed | 75% |
| Real-estate equity | Not listed | 60% |
Some assets are not eligible 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. The lender then reviews the source of the funds.
Retirement accounts get a haircut because withdrawals carry consequences. Tax treatment varies; consult a qualified professional before relying on any withdrawal.
Seasoning, Credit, and Leverage
Seasoning is how long money must sit in an account before a lender counts it. Across the network, the rules differ by path.
- Qualifier path: 60 days of seasoning and two months of statements for each qualifying account.
- Depletion path: statements at least 120 days old at application, plus a most recent statement within 45 days. Funds from the sale of a business, an inheritance, or a legal settlement are excused from that seasoning.
On leverage, the figures are ceilings, never offers:
- Qualifier path, refinance of a principal residence or second home: up to 75%.
- Depletion path, principal residence or second home: up to 80% on a rate-and-term refinance and 60% on a cash-out refinance.
- Depletion path, investment property: up to 65% on a rate-and-term refinance and 60% on a cash-out.
Cash-out proceeds never count as qualifying assets on the depletion path. Housing history is generally 0x30x12, meaning no 30-day lates in the past twelve months. One late payment is considered case by case. Multiple bankruptcies are not eligible. Following a housing event, the depletion path needs 4 years of seasoning.
Does a Federal Rule Require a Paycheck?
No. The federal ability-to-repay rule requires a lender to make a reasonable, good-faith determination that you can repay. The CFPB explains that lenders must generally consider and document income, assets, employment, credit history, and monthly expenses. Assets can satisfy that test just as well as a salary.
The same rule does not mean loans without verification are allowed. The CFPB’s rule summary lists eight minimum underwriting factors. It says loans where the lender never verifies income or assets cannot be Qualified Mortgages. It also says the rule does not dictate a particular underwriting model. That is why asset-based loans exist as a category.
Many borrowers still repeat a 43% debt-to-income cap. The Consumer Finance Monitor reports that the 43% limit was replaced with a price-based test. Debt-to-income or residual income is still considered. Your own file is judged against the specific program you apply for.
Timing: Before or After You Retire?
Retirement timing matters less on the qualifier path, because no employment or income is documented there. What matters is the seasoning clock. Move money into the accounts you plan to use early, and keep the statements clean.
The depletion path needs more planning. Statements must be at least 120 days old at application, with a recent one inside 45 days. A large deposit that appears late can complicate the picture. If you are close to retiring, start gathering statements now, whichever path you expect to use.
If you still receive a pension or Social Security, that income can supplement depletion income. That helps when the balance sheet alone falls just short. Your credit history is checked either way.
Where the General Rule Breaks
- The wrong property lane. DSCR cannot refinance your own residence. Asset-based mortgages cover the residence, a second home, and, on the depletion path only, investment property.
- Retirement balances are not DSCR income. On a DSCR loan, balances serve as credit support. On the depletion path they become income after a 30% haircut, so they count at 70% of their value. Those are two separate products.
- A first-time investor. On the depletion path, an investment-property borrower with no prior investing history needs a 700 score.
- Thin liquidity. Wealth in a home, a business, or private holdings will not clear the depletion minimums. Only liquid, eligible balances count toward them.
- Couples. Accounts combine on the qualifier path. If one spouse still works, Lendmire’s piece Can a W-2 Spouse Carry the Mortgage Without Self-Employed Income? explains that structure.
- Short-term rentals. Some DSCR programs count short-term rental income and some do not. Short-term rental rules can vary by city, county, HOA, and property type, so investors should confirm local rules before relying on projected rental income.
Should You Refinance at All?
A refinance is a trade, not a rescue. Before you start, decide which problem you are solving.
| Goal | Fits best | What gets verified |
|---|---|---|
| Cover the loan with savings | Asset qualifier path | Eligible assets vs. loan |
| Turn a portfolio into income | Asset depletion path | Derived income vs. debts |
| Refinance a rental | DSCR loan | Rent vs. payment |
Think about three things first. A new loan resets your term, so lower payments may mean a longer payoff. Closing costs must be earned back before the refinance pays for itself. And cash-out leverage is lower than rate-and-term leverage on these programs, so pulling cash costs you borrowing room.
Cash-out also competes with simply drawing from your portfolio. Spending a seasoned account is easy. Borrowing against a home you may want to keep for decades is a bigger commitment. This one is a genuine toss-up, and the right answer depends on your balance sheet and plans.
A practical sequence works well. Pick the property lane first. Then pick the path that matches how your wealth is held. Next, pull statements for every account. Finally, compare a few programs on leverage and credit, since lenders in the network differ.
Key Terms Defined
- Asset qualifier path: a program that drives lender review on eligible assets equal to or above the whole loan amount, with no income documented.
- Asset depletion path: a program that divides usable assets by 60 months to create monthly qualifying income.
- Haircut: the share of an asset’s balance a lender discounts, so only the counted portion helps you qualify.
- Seasoning: how long funds must sit in an account before they count.
- DSCR: the debt service coverage ratio, monthly rent divided by the full monthly payment on an investment property.
- Debt-to-income ratio: monthly debts divided by monthly income, used on the depletion path.
Frequently Asked Questions
Can I refinance if my only income is Social Security and retirement withdrawals?
Often yes, but the route depends on the property. On your home, an asset-based program can qualify you on balances alone or convert them into income. Documented retirement income can also supplement the depletion path. Approval depends on underwriting, credit, and the property.
Does a retiree need a job or W-2 at all?
No. The asset qualifier path documents no employment or income, and the depletion path builds income from your assets. Your assets are documented on both paths, and every file is underwritten individually.
Can I use my IRA or 401(k)?
Yes, within limits. 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.
Is this a no-doc loan?
No. Income paperwork is reduced, but your accounts, credit, and the property are all documented. The loan is a consumer mortgage, and the lender must still determine that you can repay.
What if the property is a rental?
Use a DSCR loan instead. It qualifies primarily on the property’s rent covering the payment, subject to lender guidelines. Asset depletion can also apply to investment property at 65% leverage on a rate-and-term refinance and 60% on a cash-out.
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. Lendmire is a broker that places these loans through select lenders in its wholesale network. Consumer mortgage lending is licensed in 16 states, Georgia among them. Program figures do not change by state and are never a commitment to lend. Ask for a quote at 828-256-2183.
Lendmire’s asset-based mortgage in Georgia page presents the program for Georgia 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.
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References
1. CFPB – What is the ability-to-repay rule?
2. CFPB – Summary of the ability-to-repay and qualified mortgage rule
3. Consumer Finance Monitor – CFPB Finalizes Ability-to-Repay and Qualified Mortgage Rules
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 Asset Depletion Income Is Calculated From Your Portfolio · Structured Settlement Payments vs Asset Depletion Income for a Mortgage · How Big Can an Assets-Only Mortgage Be?
Guides: Asset-Based Mortgage in Georgia
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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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.