The Quick Read: A retiree with no paycheck can refinance an Indiana home through an asset-based mortgage, because select lenders in Lendmire’s wholesale network can qualify the loan on documented savings and investments instead of wages, subject to underwriting. Which route fits depends on one question. Do your assets cover the whole loan, or do they need to be converted into monthly income?
- Asset qualifier path: eligible assets must equal or exceed the entire loan, and no employment or income is documented. Refinance leverage runs up to 75% on a principal residence or second home.
- Asset depletion path: usable assets divided by 60 months become qualifying income, which then runs through a debt-to-income test. Leverage reaches 80% on a rate-and-term refinance and 60% on a cash-out refinance of a principal residence.
- Assets are still documented: statements are reviewed on both paths. The loan skips the paycheck, not the paperwork.
- A borrower is qualified on one path at a time: the two paths never blend.
Lendmire is a mortgage broker. It arranges these consumer mortgages through select lenders, for borrowers in 16 states, Indiana among them. Every figure below is a ceiling or floor that depends on underwriting, not an offer.
What Does “No W-2 Income” Mean to an Underwriter?
It means the lender has no wage history to measure, so the file has to prove repayment ability another way. Retirement does not disqualify a borrower. Lenders judge whether the loan can be repaid from documented income or documented assets, and either can carry a file.
Plenty of retirees assume the answer is no because pay stubs are gone. That assumption is a common mistake in this segment. A household with large balances and little documented income is exactly the profile asset-based programs were built for.
This article covers a traditional refinance of a home you own. A reverse mortgage is a different product with different mechanics, and it is not covered here.
Which Path Fits You: Assets as the Loan, or Assets as Income?
Start with the size of your balances against the size of the loan. If eligible assets, after the credit percentages below, equal or exceed the entire loan, the asset qualifier path is usually the cleaner fit. If they do not, but the portfolio is large, the asset depletion path may work.
| Factor | Asset Qualifier Path | Asset Depletion Path |
|---|---|---|
| How assets are used | Must cover the whole loan | Divided by 60 months into income |
| Income documented | None | Derived income, plus any documented income |
| Refinance leverage | Up to 75% (home or second home) | 80% rate-and-term, 60% cash-out |
| Loan amounts | Up to $4,000,000 | $125,000 to $3,500,000 |
| Credit | 600 minimum score | The lender’s matrix |
Investment property is available only on the depletion path, at up to 65% on a rate-and-term refinance and 60% on a cash-out, subject to underwriting. Whether cash-out proceeds are allowed on the qualifier path is set by the lender and is not published, so confirm it before planning around it.
How Do Lenders Count Your Accounts?
Each account type counts for a share of its balance, and the shares differ by path. Accounts combine, so a mix of savings, brokerage and retirement funds can add up to the loan amount.
On the asset qualifier path:
- Brokerage accounts, certificates of deposit, money market and savings count at 100%.
- 401(k) and IRA balances count at 90% under age 59½ and 100% at 59½ or older.
On the asset depletion path:
- Cash accounts and certificates of deposit count at 100%.
- Securities count at 80%, private stock at 75%, retirement accounts at 70% at any age, and real-estate equity at 60%.
- Custodial accounts, deferred compensation, escrow accounts, foreign funds, cash on hand, stock options, unvested restricted stock units and funds from non-regulated financial companies are not eligible.
Cryptocurrency, precious metals, collectibles and borrowed or pledged funds are not published as eligible on either path. The documented route is to convert them into a seasoned cash balance in a regulated account, with the lender reviewing the source. Statements are the standard way to prove assets. The CFPB’s ability-to-repay compliance guide lists financial-institution and investment-account statements as acceptable verification, and only the income or assets a lender actually relies on need to be verified.
Two Worked Examples
These shapes show the arithmetic. The lender’s own calculation governs the real file.
Qualifier path. Picture a retired couple refinancing an $800,000 loan. They hold $330,000 in brokerage accounts (counted at 100%, so $330,000). They also hold $300,000 in a 401(k) while under 59½ (90%, so $270,000) and $200,000 in savings (100%, so $200,000). That totals $800,000 of usable assets against an $800,000 loan, so the file is reviewed on assets alone, subject to underwriting. Once the 401(k) owner reaches 59½, that account counts at 100%.
Depletion path. Say a retiree holds $1,500,000 in securities (80%, so $1,200,000) and $300,000 in cash (100%, so $300,000). Usable assets are $1,500,000. Divided by 60 months, that produces $25,000 of monthly qualifying income. That income then has to carry the housing payment and other debts through the debt-to-income test.
The depletion path is also where a borrower with some documented income, such as a pension or Social Security, can blend the two. Asset-derived income may supplement documented income up to a 45% debt-to-income ratio. When it supplements, the minimum-assets rule is waived.
Tax treatment can depend on how the funds are used and how the property is held; borrowers should keep clear records and speak with a qualified tax professional before relying on any deduction.
Seasoning, Credit and Minimums
Money has to sit before it counts. The qualifier and depletion paths use different clocks, and mixing them up stalls files.
- Qualifier path: 60 days of seasoning and two months of statements for each qualifying account. Credit starts at a 600 minimum score. No reserves are required at or below 75% loan-to-value, and above that the lender sets them.
- 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. Credit follows the lender’s score and loan-amount matrix, and a first-time investor needs 700.
- Depletion minimums: qualified assets of at least the lesser of $1,000,000 or 1.25 times the loan balance. When asset depletion is your only income source, liquid assets can never be below $250,000.
- Housing history: 0x30x12 is the standard, with one 30-day late in the last twelve months considered case by case. Multiple bankruptcies are not eligible, and a housing event needs 4 years of seasoning on the depletion path.
Cash-out proceeds never count as qualifying assets on the depletion path. You cannot pull equity out and then use that cash to qualify for the same loan.
Which Retiree Are You?
Most retirees fit one of four profiles, and each points to a different starting path.
| Profile | Likely Path | Main Hurdle |
|---|---|---|
| Large balances, not drawing income | Qualifier if assets cover the loan | Seasoning of recent transfers |
| Drawing monthly from a portfolio | Depletion, income from assets | Minimum-assets thresholds |
| Pension or Social Security plus savings | Depletion, supplementing income | Staying within the 45% debt-to-income test |
| Younger early retiree, under 59½ | Qualifier, 401(k) counts at 90% | Retirement balance counts for less |
A household where one spouse still earns wages has a different set of choices. Lendmire’s piece Can a W-2 Spouse Carry the Mortgage Without Self-Employed Income? covers that situation.
Rate-and-Term or Cash-Out: Why the Purpose Matters
A rate-and-term refinance pays off the existing loan plus costs, and nothing more. Any dollar above that turns the deal into a cash-out, which carries lower leverage on the depletion path: 60% rather than 80% on a principal residence. For a retiree planning to stay in the home, rate-and-term is usually the easier file to qualify, because the borrower is replacing an obligation rather than adding borrowing.
A cash-out can still make sense for a specific purpose, such as a roof or a home modification. Size it against the leverage ceiling first, and remember that the extra proceeds will not count toward qualifying.
What If the Property Is a Rental, Not Your Home?
Everything above applies to a home you live in, or a second home. A true non-owner-occupied rental follows a different lane. 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. The loan is reviewed primarily on property-level rental income covering the payment, subject to lender guidelines, so personal income plays no role. Select lenders in the network will review coverage below 1.00, but leverage and terms adjust when they do.
Occupancy decides the lane, and one detail catches owners off guard. Under the CFPB’s business-purpose exemption, a non-owner-occupied rental is generally treated as business purpose. That treatment does not hold if you expect to occupy the property more than 14 days in the coming year. Use of the proceeds also matters. The Reg Z commentary notes that exempt credit can become consumer credit when a new consumer-purpose obligation replaces the old one.
The complete DSCR loans guide covers how the coverage ratio is built.
Is Refinancing Worth It on a Fixed Income?
It is worth it when the refinance solves a specific problem and the costs are recovered before you would likely sell or move. Run three checks before committing.
1. Break-even: compare total closing costs against the monthly savings. If the savings are small, the break-even point may sit years out.
2. Prepayment terms: check the existing loan for a penalty, since it shifts the break-even.
3. Liquidity: an asset-based file only works if the assets stay put. Draining a portfolio to cut a payment can undercut the very income the next lender relies on.
Alternatives deserve a fair look. A home-equity line, a reverse mortgage or simply keeping the current loan can each beat a refinance in the right situation. If the existing loan is modest and the household is comfortable, doing nothing is a legitimate answer.
Document Checklist for a Retiree File
Files stall on missing paperwork far more often than on weak credit. Gather these before applying:
- Statements for every account you want counted, two months on the qualifier path, or statements 120 days old plus one within 45 days on the depletion path.
- Documentation of the source for any large recent deposit.
- Proof of pension, Social Security or annuity income, if you want it to supplement the depletion calculation.
- Current homeowner’s insurance, the existing mortgage statement and title information.
- Traditional personal-income documentation showing no wages is fine, but be ready to explain where your living expenses are funded from.
Lendmire’s team works from the whole file, not a single document. Across the wholesale network, the strongest files list every account up front, name the path they are targeting, and explain unusual transfers before an underwriter asks.
Key Terms Defined
Asset qualifier path: a program route in which eligible assets, after credit percentages, must cover the entire loan amount.
Asset depletion path: a program route in which usable assets divided by 60 months become monthly qualifying income.
Seasoning: the period funds must stay in an account before they count toward qualifying.
Rate-and-term refinance: a refinance that pays off the existing loan and costs, with no cash taken out.
Cash-out refinance: a refinance that borrows more than the payoff and costs, with the difference paid out to the borrower.
Debt-to-income ratio: monthly debts, including the new housing payment, compared to qualifying income.
Frequently Asked Questions
Can I refinance an Indiana home without a job?
Usually yes, through an asset-based program, if your documented assets are large enough. The loan is reviewed on assets, not wages, and your credit, statements and property are still reviewed. Program details come from select lenders in Lendmire’s network and are subject to underwriting.
Can I use my savings as income?
On the asset depletion path, yes, through a formula. Usable assets after the credit percentages are divided by 60 months, and the result runs through the debt-to-income test. Cash and certificates of deposit count at 100%, securities at 80% and retirement accounts at 70% at any age.
Does my 401(k) or IRA count?
It counts on both paths, at different shares. On the asset 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.
Do loans with no income documentation still exist?
Loans with no personal income documentation exist, but they are not undocumented loans. The lender reviews your assets, credit, appraisal and title. What changes is that wages are not the measure.
Can I use these programs on a rental I own?
Not these consumer programs, with one exception. The asset depletion path accepts investment property at up to 65% on a rate-and-term refinance and 60% on a cash-out. For most rentals, a DSCR loan, which is reviewed on the property’s rent, is the better-fitting route.
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. Reach the team at 828-256-2183 or request a quote at lendmire.com.
For current guidelines and terms, see Lendmire’s asset-based mortgage programs page.
Lendmire’s asset-based mortgage in Indiana page presents the program for Indiana borrowers.
About Lendmire
Lendmire, NMLS# 2371349, is a mortgage brokerage with consumer lending licenses in 16 states. Bank statement, P&L-only, 1099-only and asset-based mortgages are arranged through wholesale lending partners for borrowers whose tax returns understate their income, and each application is reviewed individually by the lender. Scotsman Guide named Lendmire a Top Mortgage Workplace in both 2025 and 2026.
Get Started
Ready to find the right loan for you?
In about 30 seconds you can review financing options available for your home or investment property. No commitment required.
Informational only. Not a Loan Estimate, approval, or commitment to lend. Program availability and eligibility are subject to lender guidelines, credit approval, property review, and underwriting.
References
1. CFPB – ATR/QM compliance guide
2. CFPB – Reg Z §1026.3 Exempt transactions
3. Bankers Online – 12 CFR 1026.3 text
This article is part of Lendmire’s asset-based mortgage program — full qualification details, guidelines, and scenarios live on the program page.
Related reading: What Counts as an Asset Statement for a Mortgage? · How an Assets-Only Mortgage Works · Does an Asset Depletion Loan Require Any Income?
Guides: Asset-Based Mortgage in Indiana
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
- Mortgage Loan Originator · NMLS# 1129696 · Verify on NMLS Consumer Access
- North Carolina Real Estate Broker · License# 343312 · Verify on NCREC
- North Carolina Insurance Producer · License# 19053198 · Property, Casualty, Life, Health · Verify on NAIC SBS
- Lendmire LLC · Firm NMLS# 2371349 · Verify firm licensure
Disclosures. The information presented in this article is general market commentary, not financial, legal, or tax advice. Lendmire is a mortgage brokerage (NMLS# 2371349) — not a direct lender or depository institution — and loan placement is subject to lender underwriting. Nothing in this content represents a commitment to lend. Loan terms, pricing, and program availability vary based on borrower qualifications, property characteristics, and state of subject property, and are subject to change at any time. Lendmire complies with Equal Housing Opportunity requirements. Consumer access: nmlsconsumeraccess.org.