The Quick Read: Retiring without a paycheck does not block a refinance, because lenders can qualify you on documented assets instead of wages, and the right path depends on whether the home is your residence or a rental, how large and liquid your balances are, and how much leverage you want. Across Lendmire’s wholesale network, two asset-based paths exist for a home you live in. Rentals follow a separate investor route. Every figure below is a ceiling or floor, subject to underwriting, and not an offer.
- The asset qualifier path covers the whole loan with eligible assets and documents no employment or income.
- The asset depletion path turns eligible assets into monthly qualifying income, which then runs through the debt-to-income test.
- You are qualified on one path at a time. The two never blend.
- Assets are always documented. “No W-2” never means “no paperwork.”
- A rental property qualifies differently, through its own rent rather than your balances.
What “No W-2” Really Means for a Refinance
A lender replaces your pay stub with other proof. It does not drop the proof requirement. If you are retired, living on a portfolio, or holding proceeds from a business sale, an inheritance, or a settlement, your balances may be large while your documented income is small. Asset-based mortgages exist for exactly that profile.
The first question is which property you are refinancing. A home you live in, whether primary or second, uses the consumer asset-based paths here. A rental you own as an investment uses a separate investor loan that looks at the property’s rent. Many retirees hold both, and each loan is judged on its own terms.
The second question is how your money is arranged. Cash, brokerage accounts, and certificates of deposit are easy for a lender to count. Retirement accounts count too, at a lower percentage on some paths. Crypto, collectibles, and borrowed funds are harder, and I cover them below.
Lendmire is a mortgage broker, not a lender. It places these files with select lenders in its network. Its consumer mortgage lending is licensed in 16 states, and Washington is one of them.
Which Path Fits You? A Side-by-Side
The asset qualifier path fits you when your eligible assets add up to at least the entire loan. The asset depletion path fits when your assets are large but not that large, and you need them to generate income that carries the payment. Here is how the two compare on the figures that matter, subject to underwriting.
| Factor | Asset Qualifier | Asset Depletion |
|---|---|---|
| How you qualify | Assets cover the whole loan | Assets become monthly income |
| Income documented | None | Derived from assets |
| Refinance leverage | Up to 75% | Up to 80% rate-and-term, 60% cash-out |
| Loan amounts | Up to $4,000,000 | $125,000 to $3,500,000 |
| Credit | 600 minimum | The lender’s matrix |
| Seasoning | 60 days, 2 months of statements | Statements 120 days old, plus one within 45 days |
The depletion leverage above applies to a principal residence or second home. On an investment property, the depletion path tops out at 65% for a purchase or rate-and-term refinance and 60% for cash-out.
The Asset Qualifier Path, Step by Step
On this path, the lender adds up your eligible assets after applying a credit percentage to each. If the total equals or exceeds the entire loan amount, you qualify on assets alone. The lender does not document your employment or income. Its review rests on the assets and on your credit, subject to underwriting.
The credit percentages are straightforward:
- Brokerage accounts, certificates of deposit, money market, and savings count at 100%.
- 401(k) and IRA balances count at 90% if you are under 59½.
- Those same retirement balances count at 100% once you are 59½ or older.
- Accounts combine, so you can mix types to reach the total.
Here is the sanctioned illustration. Say you want an $800,000 refinance. You hold $330,000 in brokerage accounts, which counts at 100%, or $330,000. You hold $300,000 in a 401(k) while under 59½, which counts at 90%, or $270,000. You hold $200,000 in savings, which counts at 100%, or $200,000. Together that is $800,000 of usable assets, which matches the loan. The lender’s own calculation governs, and this is illustrative only.
Leverage on this path goes up to 80% on a purchase and 75% on a refinance, on a principal residence or second home. Whether cash-out proceeds are allowed, and at what leverage, is set by the lender and is not published, so ask before you plan on pulling equity out.
Seasoning matters. Assets generally need to sit in your accounts for 60 days, and you provide two months of statements for each account used. The credit floor is 600. Reserves are not required at or below 75% loan-to-value. Above that level, the lender sets them.
The Asset Depletion Path, Step by Step
Think of this path as a salary your portfolio pays you on paper. The lender takes your eligible assets, applies a haircut to each type, adds them up, and divides by 60 months. The result is monthly qualifying income. That income then has to carry the full housing payment and your other debts through the debt-to-income test.
The haircuts on this path are different from the qualifier percentages, so never mix them:
- Cash accounts and certificates of deposit 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%.
Now the sanctioned illustration. Suppose you hold $1,500,000 in securities, which counts at 80%, or $1,200,000. You also hold $300,000 in cash, which counts at 100%, or $300,000. That is $1,500,000 of usable assets. Divide by 60 months and you get $25,000 of monthly qualifying income. That figure then carries the housing payment and other debts through the debt-to-income test. Again, the lender’s own math governs.
Some funds do not count on this path at all. 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 not eligible.
There are minimums. 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 also need at least $250,000 in liquid assets. Statements must be at least 120 days old at application, with the most recent one dated within 45 days. Funds from a business sale, an inheritance, or a legal settlement are excused from that age requirement.
Leverage runs up to 80% on a rate-and-term refinance and 60% on a cash-out, for a principal residence or second home. Cash-out proceeds never count as qualifying assets.
Pensions, Social Security, and Other Retirement Income
If you do receive a pension, annuity, or Social Security, that income is usable. The federal fair-lending rule that implements the Equal Credit Opportunity Act says a lender cannot discount income because it comes from an annuity, pension, or other retirement benefit. A lender may still weigh how much of it there is and how likely it is to continue. You can read the rule yourself at eCFR, 12 CFR Part 1002. Retirement alone is never a reason for denial.
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. That helps a retiree whose pension and Social Security cover most of the payment but fall a little short.
Be careful with retirement-account withdrawals. Many retirees keep distributions low for tax planning, which leaves little documented income. Tax treatment varies, and a qualified professional should review how withdrawals affect your plan. The asset paths exist partly to solve this conflict, because they count the balance rather than the withdrawals.
Which Path Matches Your Situation
| Your profile | Likely fit | Main sticking point |
|---|---|---|
| Assets exceed the loan | Asset qualifier | 60-day seasoning |
| Large portfolio, modest loan need | Depletion | Minimum assets |
| Pension plus savings, small gap | Depletion supplementing income | 45% debt-to-income cap |
| Assets mostly in crypto or collectibles | Convert to cash first | Source review |
A few notes on that last row. Cryptocurrency, precious metals, collectibles, business accounts beyond your ownership share, and pledged or borrowed funds 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. Never plan on them counting at a percentage.
What If the Property Is a Rental?
A rental follows a different road. Lendmire’s investor 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.
A DSCR loan, short for debt service coverage ratio, qualifies primarily on property-level rental income covering the payment, subject to lender guidelines. You divide the monthly rent by the full monthly payment, which covers principal, interest, taxes, insurance, and HOA dues. Your personal paycheck is not the test, which is why a retiree can refinance rentals without any wages. Lenders still check your credit.
Select lenders in the network offer programs below 1.00 coverage, though leverage and terms adjust. Each rental is reviewed on its own cash flow, so retirement does not cap how many you can refinance. Investor loans can also be made to LLC-titled borrowers, subject to program terms. For the full mechanics, read Lendmire’s complete DSCR loans guide. For the retiree angle specifically, see Lendmire’s piece Can a Retiree With No W-2 Income Get a DSCR Loan?.
Where the Rules Break
The business-purpose treatment that supports investor loans is narrower than many retirees assume. The CFPB’s rule on covered credit deems a loan on non-owner-occupied rental property a business-purpose loan. These edge cases can pull a loan back into consumer territory:
- House-hacking a duplex. If you live in one unit, the rule treats an acquisition as business purpose only above 2 units. Credit to improve or maintain the property counts only above 4 units. A retiree living in a duplex is likely in consumer-loan territory, so the asset paths may fit better than DSCR.
- The 14-day rule. If you expect to occupy the property for more than 14 days in the coming year, it is not treated as non-owner-occupied. A rental you plan to stay in for extended stretches can lose the clean business-purpose treatment.
- Under 59½. Your 401(k) and IRA count at 90% on the qualifier path and 70% on the depletion path. Retirement balances are the first place a plan falls short.
- First-time investors. On the depletion path, a first-time investor needs a 700 score when the property is an investment.
- Housing events. After a foreclosure, short sale, or similar event, the depletion path wants 4 years of seasoning. Multiple bankruptcies are not eligible.
- Late payments. Housing history of 0x30x12 is the standard. One 30-day late in the past twelve months is considered case by case.
If a spouse still works, that income can strengthen a file. Lendmire has covered how it works in its piece Can a W-2 Spouse Carry the Mortgage Without Self-Employed Income?.
The Process, Step by Step
Having placed many of these files, here is the sequence that tends to go smoothly.
1. Classify the property. Is it your residence, a second home, or a rental? That choice sets the loan type.
2. Inventory your accounts. List every balance, its type, and its age. Flag anything under 60 days old, because it may need seasoning.
3. Run both paths on paper. See whether assets cover the loan outright. If not, divide usable assets by 60 and check the result against your payment and debts.
4. Pull statements. Gather two months per account for the qualifier path. For depletion, gather statements at least 120 days old plus one within 45 days.
5. Check credit and housing history. Confirm your score against the path’s floor and look for any recent late payments.
6. Request a quote and compare structures. A broker can compare programs across the network based on your statements, the property, and your goals.
7. Review the consumer disclosures. Because this is a consumer mortgage, standard consumer-mortgage disclosures apply.
Should You Refinance at All?
Not every retiree should. Refinancing resets the loan term and carries costs. If you plan to stay in the home long enough for the savings to outweigh those costs, it can make sense. If not, skip it.
A cash-out refinance on the depletion path tops out at 60% leverage for a residence, which is lower than a rate-and-term refinance at 80%. If you only need to change the loan structure, rate-and-term is the cleaner route. If you need access to equity, compare the cash-out against a home equity line of credit or simply drawing from your portfolio. Each has a different effect on your assets and your heirs. Final terms depend on the lender’s guidelines, the property type, and the borrower’s complete credit picture.
Consider your estate too. A larger loan balance means less equity for heirs, and a loan carried on assets means those assets stay invested. Weigh the full cost of the new loan against what you save.
Key Terms Defined
Asset qualifier: A path where eligible assets, after credit percentages, must equal or exceed the entire loan, with no income documented.
Asset depletion: A path that divides usable assets by 60 months to create monthly qualifying income, which then runs through the debt-to-income test.
Seasoning: The time money must sit in your accounts before a lender counts it.
Debt-to-income ratio: Your monthly debts, including the new housing payment, compared with your monthly income.
Rate-and-term refinance: A refinance that changes the loan’s structure without pulling out extra cash.
DSCR: Debt service coverage ratio, meaning a rental’s monthly rent compared with its full monthly payment.
Frequently Asked Questions
Can I refinance with only Social Security income?
Possibly, depending on the loan size. Social Security is usable income, but it rarely carries a large payment alone. Many retirees pair it with the depletion path, where asset-derived income supplements it up to a 45% debt-to-income ratio. Subject to underwriting.
Does being retired hurt my approval?
Retirement itself is not a reason for denial, and the federal fair-lending rules protect age and retirement income. What matters is your credit, your documented assets or income, and the property. A lender may still look at how long your income will continue.
Can I use my 401(k) or IRA to qualify?
Yes, through select programs. On the qualifier path, those balances count at 90% under 59½ and 100% after. On the depletion path, they count at 70% at any age. Taxes on withdrawals are a separate question for a qualified professional.
Can I use crypto or collectibles?
Not directly. Neither path publishes them as eligible.
Is this the same as a no-doc loan?
No. Both paths document your assets in detail, and the lender reviews your credit. What you skip is documenting employment income on the qualifier path, or traditional wages on the depletion path.
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. This is not a commitment to lend, and every file is underwritten individually.
Lendmire offers an asset-based mortgage program for Washington 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.
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References
This article is part of Lendmire’s asset-based mortgage program — full qualification details, guidelines, and scenarios live on the program page.
Related reading: Does an Asset Depletion Loan Require Any Income? · What Counts as an Asset Statement for a Mortgage? · How an Assets-Only Mortgage Works
Guides: Asset-Based Mortgage in Washington
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
- Mortgage Loan Originator · NMLS# 1129696 · Verify on NMLS Consumer Access
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- Lendmire LLC · Firm NMLS# 2371349 · Verify firm licensure
Disclosure information. Lendmire is a state-licensed mortgage brokerage under NMLS# 2371349. Lendmire is not a depository institution, direct lender, or financial advisor — all loans referenced are placed through wholesale lender partners and are subject to each lender's underwriting standards. This article is provided for general informational purposes and is not a commitment to lend, nor does it constitute financial, legal, or tax advice. Loan programs, terms, rates, and qualification standards change without notice and depend on borrower profile, property type, and the state in which the subject property is located. Equal Housing Opportunity provider. NMLS Consumer Access: nmlsconsumeraccess.org.