The Quick Read: Yes, on a principal residence or second home, a borrower can refinance on assets instead of paychecks through select programs, subject to underwriting. Eligible assets either cover the whole loan outright or get converted into a monthly qualifying income.
- Asset qualifier path: 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 that runs through the debt-to-income test.
- Leverage: on the qualifier path, up to 75% on a refinance. On the depletion path, up to 80% on a rate-and-term refinance and 60% on a cash-out refinance of a residence.
- Not a no-doc loan: the file is fully underwritten and the assets are documented with statements. There is no traditional personal-income documentation, such as pay stubs or employment verification.
The loan runs through select lenders in Lendmire’s network. Lendmire is the broker. Programs change, and every file is underwritten individually.
What Does “Income Stops” Mean to a Lender?
It means documented earnings are gone or about to be, while the balance sheet is still large. Retirees, people who sold a business, people living on an inheritance or settlement, and early-retired professionals all fit that picture. The question the lender asks is not whether you have a job. It asks whether the file can show you can repay.
That is a real distinction. The federal ability-to-repay rule asks lenders to consider current or reasonably expected income or assets, other than the value of the property that secures the loan. Assets count. Equity in the house you are refinancing does not count as the repayment source under that rule.
Across the wholesale network, two paths handle this. A borrower is qualified on one path at a time. Never blend the two.
Alabama is one of the 16 states where Lendmire arranges consumer mortgages. The program figures below do not change by state.
The Two Asset Paths Side by Side
Most programs that handle this split the same way. One treats assets as a pool that must cover the loan. The other turns assets into pretend income. The table shows the difference.
| Factor | Asset qualifier | Asset depletion |
|---|---|---|
| How you qualify | Assets cover the entire 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 |
| Statements | Two months per account | 120-day-old plus one within 45 days |
| Credit | 600 minimum | Lender’s matrix |
All figures are ceilings and floors through select programs, subject to underwriting. They are not offers.
The qualifier path has one more feature worth noting. Reserves are not required at or below 75% loan-to-value. Above that, the lender sets them. The depletion path publishes no reserve months.
Cash-out on the qualifier path is set by the lender and is not published. Don’t plan around a figure there; ask the lender directly.
For the full program overview, see Lendmire’s asset-based mortgage program page.
What Counts as an Asset?
It depends on the path, and the percentages differ. Here is what counts on each.
| Asset | Qualifier path | Depletion path |
|---|---|---|
| Brokerage accounts | 100% | Securities at 80% |
| CDs | 100% | 100% |
| Money market and savings | 100% | Cash accounts at 100% |
| 401(k) and IRA | 90% under 59½, 100% at 59½ or older | 70% at any age |
| Private stock | Not listed | 75% |
| Real-estate equity | Not listed | 60% |
Accounts combine. 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 reviews the source of that money.
Cash-out proceeds from the refinance itself never count as qualifying assets.
A Worked Example
These shapes show how the arithmetic runs. The lender’s own calculation governs.
Qualifier path. Say a borrower seeks an $800,000 loan. The accounts are $330,000 in brokerage (100% counts, so $330,000), $300,000 in a 401(k) under 59½ (90% counts, so $270,000) and $200,000 in savings (100%, so $200,000). Usable assets total $800,000. That equals the loan, so the file is reviewed on assets alone, with no income documented.
Depletion path. Consider $1,500,000 in securities (80% counts, so $1,200,000) plus $300,000 in cash (100%, so $300,000). Usable assets are $1,500,000. Divided by 60 months, that is $25,000 of monthly qualifying income. That income then has to carry the housing payment and other debts through the debt-to-income test.
Nothing is sold. Nothing is pledged. The assets stay invested. The depletion division is a qualifying convention only.
Which path is easier depends on the balance sheet. Large, liquid balances against a modest loan favor the qualifier path. Large balances against a bigger loan with other debts favor depletion. Honestly, it can go either way until the statements are in front of someone who can run both.
Timing: Before, During and After the Last Paycheck
Seasoning is what trips most files. On the qualifier path, funds need 60 days of seasoning and two months of statements for each qualifying account. On the depletion path, 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.
The practical habit: move money before you apply, not during. A transfer between your own accounts mid-file creates a sourcing question. Large deposits need a paper trail. Leave the accounts alone once statements start counting.
Layoff mid-file is a different issue. These programs do not rest on employment, so a job ending does not by itself break eligibility. Credit, housing history and the assets still have to hold up at underwriting.
Refinance Specifics
Rate-and-term and cash-out refinances behave differently. On the depletion path, a residence or second home reaches 80% on a purchase or rate-and-term refinance and 60% on a cash-out. Drawing equity out lowers the leverage ceiling sharply.
Cash-out can also shrink the story. A larger loan balance raises the payment, and on the depletion path the derived income has to carry it. Plan the new balance against the usable assets, not against what the house is worth.
Two other points:
On the depletion path, assets must total at least the lesser of $1,000,000 or 1.25 times the loan balance, and never less than $250,000 liquid when asset depletion is the only income source. Asset-derived income may also supplement documented income up to a 45% debt-to-income ratio. When it supplements, the minimum-assets rule is waived.
The loan is a consumer mortgage, so consumer-loan disclosures apply.
Credit and Housing History
The qualifier path publishes a 600 minimum score. The depletion path follows the lender’s matrix. A first-time investor on the depletion path needs 700.
Housing history is read as 0x30x12. One 30-day late in the last twelve months is considered case by case. Multiple bankruptcies are not eligible. A housing event needs 4 years of seasoning on the depletion path. Credit is always pulled. This is not a no-credit-check loan.
What About a Rental Property?
If the property is a rental, the answer changes. Business-purpose credit is exempt from the consumer rules in Regulation Z, so rental loans can qualify primarily on property-level rent covering the payment, subject to lender guidelines. For most rental investors whose own income stopped, that is the cleaner route.
The depletion path does reach investment property, but at lower leverage: up to 65% on a purchase or rate-and-term refinance and 60% on a cash-out. The asset qualifier path is for principal residences and second homes.
Purpose controls, not the label on the property. A cash-out refinance of the house you live in is a consumer loan even if the money buys a rental. If a unit is owner-occupied, treat it as a residence.
Where Most Files Go Wrong
- Counting home equity as an asset. Equity in the subject property is not the repayment source. Real-estate equity counts only at 60% on the depletion path, and the lender decides what qualifies.
- Assuming no documents. Statements are required for every account.
- Skipping seasoning. Fresh deposits without a paper trail stall the file.
- Mixing the tables. Quoting the qualifier path’s 90% retirement credit against a depletion-path file gets the math wrong. Name the path every time.
- Treating the ceilings as offers. Final terms depend on underwriting.
Key Terms Defined
Asset qualifier: a path where eligible assets, after credit percentages, must equal or exceed the entire loan amount.
Asset depletion: a path that divides usable assets by 60 months to create monthly qualifying income.
Seasoning: how long funds must sit in an account before they count.
Loan-to-value (LTV): the loan balance as a share of the property’s value.
Debt-to-income (DTI): monthly debts, including the new housing payment, as a share of qualifying income.
Haircut: the share of an account’s balance that a program discounts.
Frequently Asked Questions
Can a lender deny me just because I’m retired or laid off?
Retirement or job loss is not itself the test. These programs exist for borrowers whose balances are large and whose documented income is not. Approval still depends on credit, housing history, assets and the property.
Can I use retirement accounts?
Yes, with a haircut. On the qualifier path, a 401(k) or IRA counts at 90% under age 59½ and 100% at 59½ or older. On the depletion path it counts at 70% at any age.
Does this work for a second home?
Yes. Both paths cover a principal residence or second home. The depletion path also reaches investment property at lower leverage.
Can I take cash out?
On the depletion path, a residence can reach 60% on a cash-out refinance. On the qualifier path, cash-out terms are set by the lender and not published. Cash-out proceeds never count as qualifying assets.
What if I am already behind on payments?
It matters. Housing history is reviewed as 0x30x12, and one 30-day late in the last twelve months is considered case by case.
Next Steps
Gather two months of statements per account, plus the older statement on the depletion path. Decide whether the loan amount fits inside your usable assets.
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. Programs are placed through select lenders, subject to underwriting. This is not a commitment to lend.
Alabama borrowers with large liquid balances and no paycheck often discover the file turns on seasoning, not on the balance itself.
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 ATR/QM Small Entity Compliance Guide
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 Much Does a Michigan Retiree Need in Assets to Buy a Home Without Income? · How Much Does a California Retiree Need in Assets to Buy a Home Without Income? · Can You Refinance a Michigan Home on Assets When Your Income Stops?
Guides: Asset-Based Mortgage in Alabama
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.