The Quick Read: A retiree can refinance without a paycheck by qualifying on assets instead of wages. Through select programs, the lender either counts your eligible assets against the whole loan or converts them into a monthly qualifying income, and each file is underwritten on one of those two paths, subject to lender guidelines.
- Asset qualifier path: eligible assets must equal or exceed the entire loan amount, and no income is documented. Leverage runs up to 75% on a refinance of a principal residence or second home.
- Asset depletion path: usable assets divided by 60 months become qualifying income that runs through the debt-to-income test. Leverage runs up to 60% on a cash-out and up to 80% on a rate-and-term refinance of a principal residence or second home.
- Assets are documented on both paths. Statements, seasoning and credit all still apply.
- Rental properties are a different loan. A rental refinance is business-purpose and is reviewed on the property’s rent, not your retirement income.
Retirement does not close the door on a refinance. It changes what the lender looks at. Instead of pay stubs, the underwriter looks at what you have saved, how liquid it is, and how long it has been sitting there.
This guide walks through how that works for a Michigan homeowner. It covers the two asset paths, what each one counts, a worked example for each, and the edge cases that trip people up. Program figures are the same in every state. Michigan is one of 16 states where Lendmire’s consumer mortgage lending is licensed. Lendmire is the broker, placing files with select lenders in its network. It is not the lender. Nothing here is a commitment to lend.
Why Does No W-2 Not Mean No Refinance?
A lender can approve a refinance on assets or retirement income instead of wages. The federal ability-to-repay rule lets a lender rely on a borrower’s “current or reasonably expected income or assets,” and wages are not required. The value of the home securing the loan does not count toward that test, per Cornell’s copy of 12 CFR 1026.43. The lender must also verify whatever it relies on with reliable third-party records.
That is why “no income” and “no documentation” are different things. A retiree on an asset-based refinance still hands over statements. What the lender does not do is ask for a paycheck.
Many retirees assume the only choices are a conventional refinance on pension and Social Security, or nothing. A third route is built for people who are cash-heavy and income-light. It fits retirees, business sellers, and households living off a portfolio.
Which of the Two Asset Paths Fits You?
Pick the qualifier path if your assets could cover the whole loan. Pick the depletion path if your assets are large but you need them to behave like income. A borrower is qualified on one path at a time. The tables never blend.
| Factor | Asset Qualifier | Asset Depletion |
|---|---|---|
| How assets are used | Must cover entire loan | Become monthly income |
| Income documented | None | Derived from assets |
| Refinance leverage | Up to 75% | Up to 80% rate-and-term |
| Cash-out leverage | Set by lender | Up to 60% |
| Loan amounts | Up to $4,000,000 | $125,000 to $3,500,000 |
| Credit | 600 minimum | Lender’s matrix |
All figures are typical ceilings and floors across select programs, subject to underwriting. They are not offers.
A quick gut check helps. If your portfolio is bigger than the loan you want, the qualifier path is usually the first look. If your portfolio is large but the loan is large too, the depletion path may fit better, because it only needs the converted income to carry the payment.
How Does the Asset Qualifier Path Work?
The eligible assets, after credit percentages, must equal or exceed the whole loan. No employment or income is documented. The lender’s ability-to-repay review rests on the assets.
Here is how much of each balance counts on this path:
- Brokerage accounts, CDs, money market and savings count at 100%.
- A 401(k) or IRA counts at 90% if you are under 59½, and 100% at 59½ or older.
- Accounts combine.
Say you want an $800,000 refinance. 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). Usable assets total $800,000, which equals the loan. The file is reviewed on assets alone, subject to underwriting. The lender’s own calculation governs.
Other terms on this path:
- Seasoning: 60 days, with two months of statements for each qualifying account.
- Credit: a 600 minimum score, subject to underwriting.
- Leverage: up to 75% on a refinance of a principal residence or second home.
- Reserves: none required at or below 75% loan-to-value. Above that, the lender sets them.
Cash-out on this path is set by the lender and is not published. Do not plan around a specific cash-out figure here. If you need cash out, the depletion path has published numbers.
How Does the Asset Depletion Path Work?
The lender adds up your usable assets, divides by 60 months, and treats the result as monthly income. That income must carry the full housing payment and your other debts through the debt-to-income test. Debt-to-income, or DTI, is your monthly debts divided by your monthly income.
The haircuts, meaning the share of each balance that counts, look different here:
- Cash accounts and CDs 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%.
Picture a retiree with $1,500,000 in securities (80% counts, so $1,200,000) and $300,000 in cash (100%, so $300,000). Usable assets are $1,500,000. Divide by 60 months and you get $25,000 of monthly qualifying income. That figure then has to carry the new housing payment and other debts under the DTI test. The numbers are illustrative, and the lender’s own calculation governs.
Notice what changed between the two examples. A retirement account counted at 90% on the qualifier path but only 70% on the depletion path. Mixing the tables is a common mistake we see on these files, so name the path before you run any math.
Not every asset is 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 are out.
What Are the Depletion Path Minimums and Leverage?
You need substantial assets, and leverage drops on cash-out. 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.
Leverage on this path, subject to underwriting:
- Principal residence or second home: up to 80% on a purchase or rate-and-term refinance, and 60% on a cash-out refinance.
- Investment property: up to 65% on a purchase or rate-and-term refinance, and 60% on a cash-out.
Cash-out proceeds never count as qualifying assets. You cannot borrow against the house and then count that cash to qualify for the same loan.
If you have some documented income, such as a pension, asset-derived income can supplement it up to a 45% DTI. When it supplements, the minimum-assets rule is waived. That helps a retiree whose pension is real but not big enough alone.
Credit follows the lender’s matrix. A first-time investor on this path needs a 700 score. Housing history is generally 0x30x12, though one 30-day late in the last twelve months may be considered case by case. A housing event such as a foreclosure needs four years of seasoning, and multiple bankruptcies are not eligible.
What About Seasoning and Statements?
Both paths require your assets to be documented and settled. On the qualifier path that means 60 days of seasoning and two months of statements per 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.
This is where retirees get caught. Moving money between accounts right before you apply can reset the clock. Cryptocurrency, precious metals, collectibles, borrowed or pledged funds, and business accounts beyond your ownership share 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 lender reviewing the source.
Ask yourself one question before you shuffle any money: will this transfer leave a clean statement trail? If not, wait.
What If the Property Is a Rental?
A rental refinance is a different loan with a different test. 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. It is the property’s monthly rent divided by its monthly principal, interest, taxes, insurance and any HOA dues. The loan is reviewed primarily on property-level rental income covering the payment, subject to lender guidelines. Your retirement income is not the main test. Credit, equity and reserves still matter, so the borrower is not ignored.
Standard programs are often built around a 1.00 coverage benchmark. Programs below 1.00 are available through select lenders in the network, but leverage and terms adjust. For the full picture, see Lendmire’s complete DSCR loans guide. For a retiree who owns rentals specifically, Lendmire’s piece Can a Retiree With No W-2 Income Get a DSCR Loan? covers that case.
Two things matter here. First, a rental DSCR loan cannot be used on the home you live in. Second, if the cash-out on a rental is used for personal purposes, such as paying personal bills, the loan can be pulled back toward consumer rules. The business-purpose label depends on the real purpose, not just the property type.
Key Terms Defined
Asset qualifier: a path where eligible assets must equal or exceed the whole loan, with no income documented.
Asset depletion: a path that divides usable assets by 60 months to create monthly qualifying income.
Haircut: the share of an account balance that does not count toward qualifying.
Seasoning: how long funds have sat in your account before you apply.
Debt-to-income (DTI): your monthly debts divided by your monthly income.
Rate-and-term refinance: a refinance that changes the loan’s terms without taking cash out.
Cash-out refinance: a refinance for more than you owe, with the difference paid to you.
Which Mistakes Sink Retiree Refinances?
Most denials trace to a few fixable errors.
- Blending the paths. Using the 90% retirement figure on a depletion file overstates income.
- Counting cash-out proceeds as assets. They never count.
- Moving funds too late. Unseasoned deposits can fail the statement test.
- Overlooking ineligible assets. Stock options and non-vested RSUs do not count on the depletion path.
- Expecting a rental loan on a primary home. The loan type follows occupancy.
If a file falls short, the fix is often structural. Lower the loan amount, choose a rate-and-term refinance over cash-out, or add a documented pension so asset income can supplement. That last option lifts the DTI ceiling to 45% and waives the minimum-assets rule.
For households where one spouse still works, a related path may help. Lendmire’s explainer Can a W-2 Spouse Carry the Mortgage Without Self-Employed Income? covers that setup.
What Does the Decision Look Like in Practice?
Start with the loan size, then the asset mix, then the cash-out need. Here is a simple sequence a Michigan retiree can follow.
1. Add up eligible balances and apply the qualifier-path percentages. If the total meets the loan, the qualifier path is likely your first look.
2. If it falls short, apply the depletion haircuts, divide by 60, and see whether that income carries the payment under the DTI test.
3. Check seasoning. Confirm two months of statements, and the older statement if you are on depletion.
4. Decide whether you need cash out. If so, plan around the depletion path’s 60% ceiling.
5. Confirm occupancy. Primary and second homes use these paths. Rentals use DSCR.
Michigan taxes, insurance and local prices affect the monthly payment. They do not change the program parameters. Tax treatment varies; consult a qualified professional.
Because this is a consumer mortgage, standard consumer disclosures apply. Also keep in mind that every file is underwritten individually, and programs change.
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. The brokerage can be reached at 828-256-2183.
Frequently Asked Questions
Can I refinance with no job at all?
Yes, through select programs that qualify you on assets. Either your eligible assets cover the whole loan, or they convert into monthly income at a 60-month divisor. Both are subject to underwriting, credit review and statement seasoning.
Does my 401(k) or IRA count?
Yes, though the share that counts depends on the path. On the qualifier path it counts at 90% under age 59½ and 100% at 59½ or older. On the depletion path it counts at 70% at any age. You do not need to be taking withdrawals.
Can I take cash out?
On the depletion path, yes, up to 60% leverage on a principal residence, second home or investment property. On the qualifier path, cash-out is set by the lender and not published. The exact numbers vary by lender and program and follow a full review of property, leverage, and credit.
Is this the same as a no-doc loan?
No. You document your assets with statements and seasoning, and the lender reviews credit and the property. What you skip is a paycheck, not the paperwork. The lender’s ability-to-repay review rests on those assets, per the CFPB’s rule text.
What if I own a rental instead of living in the home?
A rental refinance is business-purpose and qualifies primarily on property-level rental income covering the payment, subject to lender guidelines. It does not use these asset paths, which apply to principal residences and second homes, with investment property only on the depletion path.
Lendmire’s asset-based mortgage in Michigan page presents the program for Michigan 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. Cornell LII, 12 CFR 1026.43
2. CFPB Regulation Z § 1026.43
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 Michigan
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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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.