The Quick Read: Retiring does not shut the door on a refinance. If your savings are large, a lender can qualify the loan on those assets, or turn them into a monthly income figure. Which route fits depends on how big your balances are compared with the loan you want, and on the kind of accounts that hold them.
- Asset qualifier path: your eligible assets must equal or exceed the entire loan, and no employment or income is documented.
- Asset depletion path: usable assets divided by 60 months become qualifying income, which then runs through the debt-to-income test.
- Leverage ceilings: up to 80% on a purchase and 75% on a refinance for the qualifier path, subject to underwriting.
- You are on one path at a time. The two sets of figures never blend.
- The assets are fully documented. What drops away is the paycheck, not the paperwork.
Why No W-2 Does Not Block You
A W-2 is a tax form for wages. When you retire, you stop receiving one. Lenders know this. Federal guidance from the CFPB says a lender generally cannot decide on age alone. It also says a lender cannot refuse to consider retirement or pension income.
That protection is not a promise of approval. You still have to show you can repay the loan. The question is how you show it when no paycheck exists.
Asset-based mortgages answer that question. Across our wholesale network, they are built for cash-heavy, income-light households: retirees, people who sold a business, heirs, and early retirees living off a portfolio. These are consumer mortgages on a home you live in or a second home. The programs below are available through select lenders, subject to underwriting.
Lendmire is a broker. It arranges these loans through select lenders in its network and does not make the lending decision. Its consumer mortgage lending is licensed in 16 states, and New Mexico is one of them. The program figures do not change by state.
Which Path Fits You?
Pick the path by asking one thing: do your assets cover the whole loan, or do they need to become income?
If your assets cover the loan outright, use the asset qualifier path. Eligible assets, after the credit percentages below, must equal or exceed the entire loan amount. No employment and no income is documented. The lender’s ability-to-repay review rests on the assets instead.
If your assets are large but fall short of the loan, use the asset depletion path. The lender divides your usable assets by 60 months. The result is a monthly qualifying income. That income must carry the housing payment and your other debts through the debt-to-income test, which compares monthly debts with monthly income.
A third case exists. You may have a pension or Social Security that covers part of the picture. On the depletion path, asset-derived income can supplement documented income, up to a 45% debt-to-income ratio. When it supplements, the minimum-assets rule is waived.
| Factor | Asset Qualifier | Asset Depletion |
|---|---|---|
| How assets are used | Must cover the whole loan | Become monthly income |
| Income documented | None | Derived from assets |
| Max leverage, purchase | 80% | 80% (primary or second home) |
| Max leverage, refinance | 75% | 80% rate-and-term, 60% cash-out |
| Loan amounts | Up to $4,000,000 | $125,000 to $3,500,000 |
Those depletion-path ceilings are for a principal residence or second home. An investment property on the depletion path tops out at 65% on a purchase or rate-and-term refinance and 60% on a cash-out. Cash-out proceeds never count as qualifying assets. On the qualifier path, whether cash-out is allowed, and at what leverage, is set by the lender and is not published. Treat all of these as ceilings, not offers.
What Counts as an Asset, and How Much
The percentage is the share of each balance the lender credits. Name the path before you read the number.
On the asset qualifier path:
- Brokerage accounts, certificates of deposit, money market and savings: 100%.
- 401(k) and IRA balances: 90% under age 59½, and 100% at 59½ or older.
- Accounts combine.
On the asset depletion path:
| Asset | Share counted |
|---|---|
| Cash accounts, CDs | 100% |
| Securities | 80% |
| Private stock | 75% |
| Retirement accounts | 70% at any age |
| Real-estate equity | 60% |
Some assets do not count on the depletion path at all. That list covers 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. If you hold those, the documented route is to convert them into a seasoned cash balance in a regulated account. The lender then reviews the source of the funds. They never count at a percentage as they sit.
A Worked Example for Each Path
These numbers are illustrative. The lender’s own calculation governs.
Qualifier path. Say you want an $800,000 loan. You hold $330,000 in brokerage accounts (100% counts, so $330,000). You hold $300,000 in a 401(k) and you are under 59½ (90% counts, so $270,000). You hold $200,000 in savings (100% counts, so $200,000). Usable assets total $800,000. That matches the loan, so the file is reviewed on assets alone, subject to underwriting.
Depletion path. Say you hold $1,500,000 in securities (80% counts, so $1,200,000). You also hold $300,000 in cash (100% counts, 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 your housing payment and other debts through the debt-to-income test.
Notice how the two differ. The qualifier path asks whether your assets equal the loan. The depletion path asks whether the income those assets create supports the payment. A borrower with $800,000 of usable assets and a $900,000 loan fails the first test.
Seasoning, Statements, and Credit
Lenders want proof that the money is really yours and has been for a while. That is called seasoning, meaning the waiting period funds must sit in your account before they count.
- Qualifier path: 60 days of seasoning, with two months of statements for each qualifying account.
- Depletion path: statements 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.
Hear this clearly: “no income documentation” never means “no documentation.” Your assets are documented on both paths. Expect to show statements, explain any large deposits, and source any recent transfers. Moving money between accounts a few weeks before applying is one of the most common ways a clean file gets complicated.
Credit still matters. The qualifier path has a 600 minimum score. The depletion path follows the lender’s matrix, and a first-time investor on that path needs a 700. Housing history is typically 0x30x12, meaning no 30-day late payments in the last twelve months. One late in that window is considered case by case. Multiple bankruptcies are not eligible. A housing event such as a foreclosure needs 4 years of seasoning on the depletion path.
The depletion path also has minimum assets. You need qualified assets of at least the lesser of $1,000,000 or 1.25 times the loan balance. If asset depletion is your only income source, you need at least $250,000 liquid.
On reserves, the qualifier path requires none at or below 75% loan-to-value, which is the loan balance compared with the home’s value. Above that, the lender sets them. The depletion path has no published reserve months.
Where the General Rule Breaks
The path above fits most retirees with real savings. A few situations bend it.
You live in the home versus you rent it out. This article covers a home you occupy or a second home. If the property is a rental you hold as an investment, the loan is business-purpose, and that is a different product. Federal rulemaking treats investment-purpose loans as business-purpose loans outside the consumer ability-to-repay rules. Lendmire’s piece Can a Retiree With No W-2 Income Get a DSCR Loan? covers that route. Rental financing qualifies primarily on property-level rental income covering the payment, subject to lender guidelines.
Your wealth sits in odd places. Crypto, collectibles, or a business account you only partly own will not count as-is. Convert and season first.
Your balances are good but your score is thin. Strong assets do not erase a credit problem. The score floors above still apply.
You are close to the line. A borrower a little short on the depletion path can sometimes add documented pension or Social Security income. That supplements the asset-derived income, and the minimum-assets rule is then waived.
The loan is a cash-out. Cash-out refinances carry the lowest leverage on the depletion path, 60%, and proceeds never count as qualifying assets. Plan the numbers before you assume you can pull a large sum.
Is a Refinance Worth It in Retirement?
Qualifying is one question. Whether you should is another.
A refinance can lower your obligations, change the loan type, or pull equity. It also costs money and can restart your term. If you are a few years from owning the home free and clear, resetting to a long term may not help. If you want to buy out a former spouse, or restructure around a portfolio, the case may be stronger.
Compare against alternatives honestly. A reverse mortgage has no monthly payment requirement but works very differently. A home equity line draws on equity without replacing the first loan. Each has trade-offs, and a broker who sees many programs can lay them next to each other. The test is simple: does the refinance solve a real problem for the years you expect to hold the home?
This is a consumer mortgage, so standard consumer loan disclosures apply. Sequence matters too. Money you spend on a down payment or closing costs leaves your account, which can shrink the assets you were counting on. Run the usable-asset math after those withdrawals, not before.
Key Terms Defined
Asset qualifier path: a program route where eligible assets must cover the entire loan and no income is documented.
Asset depletion path: a route that divides usable assets by 60 months to create monthly qualifying income.
Haircut: the share of an asset’s value the lender does not count.
Seasoning: the time funds must sit in your account, shown by statements, before they count.
Debt-to-income (DTI): monthly debts divided by monthly income.
Loan-to-value (LTV): the loan balance divided by the home’s value.
Frequently Asked Questions
Can a lender turn me down just because I’m retired?
No. Federal guidance says age alone cannot decide a credit application, and lenders cannot refuse to consider retirement or pension income. They can still review your ability to repay. A denial for weak credit, thin assets, or a property issue is a different matter.
Do I need a pension or Social Security to qualify?
Not on the asset qualifier path, where no income is documented and the assets must cover the loan. On the depletion path, a pension or Social Security can supplement asset-derived income up to a 45% debt-to-income ratio. Either way, approval is subject to underwriting.
Does my 401(k) or IRA count?
Yes. 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. Pick the path first, then read the percentage.
Will I need to show my bank statements?
Yes. Both paths document the assets. The qualifier path wants two months of statements per account and 60 days of seasoning. The depletion path wants statements at least 120 days old plus one within 45 days.
Is this the same as a no-doc loan?
No. Your employment and wage income are not the basis. Your assets are verified closely, and the lender reviews the source of funds, your credit, and the property.
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. For the wider picture on investor financing, see the complete DSCR loans guide.
Tax treatment varies; consult a qualified professional.
For current guidelines and terms, see Lendmire’s asset-based mortgage programs page.
Lendmire’s asset-based mortgage in New Mexico page presents the program for New Mexico borrowers.
About Lendmire
Lendmire (NMLS# 2371349) is a mortgage broker licensed for consumer lending in 16 states. Scotsman Guide named Lendmire a Top Mortgage Workplace in both 2025 and 2026.
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References
1. CFPB
2. Federal Register: Ability-to-Repay and Qualified Mortgage Standards
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 to Qualify for a Mortgage on Liquid Assets Alone · Can You Get a HELOC With No Income by Qualifying on Assets? · Asset Depletion Income Formula and Haircuts
Guides: Asset-Based Mortgage in New Mexico
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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Compliance and disclosures. Lendmire (NMLS# 2371349) is a licensed mortgage broker and is not a direct lender, depository institution, financial advisor, or tax professional. Content in this article is general market analysis and educational information — not financial, legal, or tax advice for any specific situation. Lendmire does not guarantee loan approval; every transaction is subject to underwriting by the funding lender. Mortgage pricing and loan program guidelines are subject to change at any time without notice and vary by borrower characteristics, property type, and state regulations. Lendmire complies with Equal Housing Opportunity. Licensure verification: NMLS Consumer Access.