The Quick Read: Usually yes on a home you live in, because eligible assets can qualify the refinance by covering the whole loan or by converting into monthly qualifying income, and on a rental DSCR is usually the better fit, since the property’s rent is what gets tested. DSCR is the debt service coverage ratio, which compares rent to the property’s monthly obligation. Everything is subject to underwriting, and your assets still get documented.
- Assets can carry a refinance on a principal residence or second home, subject to lender guidelines.
- The asset qualifier path counts assets against the entire loan, and the asset depletion path divides usable assets by 60 months.
- Investment property is only eligible on the depletion path, at lower leverage.
- Cash-out proceeds never count as qualifying assets.
- Rental owners whose paychecks ended often do better on a DSCR refinance.
What It Takes to Refinance Into an Asset Depletion Loan When Your Income Stops
Two paths exist, and a borrower is reviewed on one at a time. Across the wholesale network Lendmire places files through, the choice between them drives everything else.
The asset qualifier path asks one question: do your eligible assets, after the credit percentages, equal or exceed the entire loan amount? If so, no employment or income is documented. Leverage runs up to 75% loan-to-value on a refinance of a principal residence or second home. Loans go up to $4,000,000. The credit floor is 600, subject to underwriting.
The asset depletion path turns assets into income. Usable assets, after haircuts, are divided by 60 months. That monthly figure must carry the full housing payment and your other debts through the debt-to-income test. Loans run from $125,000 to $3,500,000. Credit follows the lender’s matrix, and a first-time investor needs 700.
Neither path means “no documentation.” Your statements are reviewed on both. Only your paycheck drops out of the picture.
How the Math Works on Each Path
These examples are illustrative. The lender’s own calculation governs.
Qualifier path. Say you are refinancing an $800,000 loan. You hold $330,000 in brokerage accounts (counted at 100%), $300,000 in a 401(k) while under age 59½ (counted at 90%, or $270,000), and $200,000 in savings (100%). That counts as $800,000 of usable assets. It equals the loan, so you qualify on assets alone.
Depletion path. Say you hold $1,500,000 in securities (counted at 80%, or $1,200,000) and $300,000 in cash (100%). That is $1,500,000 of usable assets. Divided by 60 months, it produces $25,000 of monthly qualifying income. That income then carries the housing payment and other debts through the debt-to-income test.
The depletion path has minimums too. Qualified assets must be at least the lesser of $1,000,000 or 1.25 times the loan balance. When assets are your only income source, liquid assets can never fall below $250,000.
What Counts, and What Doesn’t
Here is how the qualifier path credits each balance.
| Asset | Share that counts |
|---|---|
| Brokerage, CDs, money market, savings | 100% |
| 401(k) or IRA, under 59½ | 90% |
| 401(k) or IRA, 59½ or older | 100% |
Here is how the depletion path haircuts each balance.
| Asset | Share that counts |
|---|---|
| Cash accounts and CDs | 100% |
| Securities | 80% |
| Private stock | 75% |
| Retirement accounts, any age | 70% |
| Real-estate equity | 60% |
The depletion path does not accept custodial accounts, deferred compensation, escrow accounts, foreign funds, cash on hand, stock options, non-vested restricted stock units, or funds from non-regulated financial companies. The value of the home you are refinancing is not an asset for this purpose.
Crypto, precious metals, collectibles and 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. The lender then reviews the source of that cash.
Which Refinance Types Work?
Leverage depends on the path, the loan purpose and the occupancy.
| Loan purpose | Qualifier path | Depletion path |
|---|---|---|
| Rate-and-term, principal residence or second home | Up to 75% LTV | Up to 80% LTV |
| Cash-out, principal residence or second home | Set by lender, not published | Up to 60% LTV |
| Rate-and-term, investment property | Not offered | Up to 65% LTV |
| Cash-out, investment property | Not offered | Up to 60% LTV |
Cash-out proceeds never count as qualifying assets on the depletion path. On the qualifier path, the lender sets whether cash-out is allowed and at what leverage. Those details are not published, so ask before you plan around it.
Is There a Waiting Period After Your Income Stops?
No calendar rule says you must wait after leaving work. What matters is whether your assets are seasoned and documented.
On the qualifier path, each account needs 60 days of seasoning and two months of statements. On the depletion path, statements must be at least 120 days old at application, plus one statement within 45 days. Funds from the sale of a business, an inheritance or a legal settlement are excused from that depletion-path seasoning. Large unexplained deposits slow a file, so keep paperwork showing where lump sums came from.
Refinance Now on Income, or Wait and Use Assets?
If you are still earning, compare both sequences before your last paycheck. Documented income may qualify you under a different program, subject to lender guidelines. Asset-derived income can also supplement documented income up to a 45% debt-to-income ratio. When it supplements, the minimum-assets rule is waived.
Once income has ended, assets are the main route. A refinance done before leaving work can be simpler. But it only makes sense if the new loan still suits you after the paycheck stops. Do not rush into a refinance just because the window feels like it is closing.
Does Losing Your Income Disqualify You?
No. A lender must look at your ability to repay. The CFPB’s ability-to-repay compliance guide says a lender must consider and verify the income or assets it relies on. It sets no fixed debt-to-income threshold. A retired borrower with large savings can therefore be reviewed on those savings instead of wages. The lender’s documented policy decides the outcome.
What About a Rental Property?
On a rental, ask whether you need asset depletion at all. 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. Compliance Alliance notes that credit to buy, improve or maintain non-owner-occupied rental property is treated as business purpose.
That matters because a DSCR loan involves no personal income documentation. Qualification runs on property-level rental income covering the payment, subject to lender guidelines. Stopped wages do not change the test.
Programs below 1.00 coverage are available through select lenders in the network, but leverage and terms adjust. Asset depletion on an investment property is possible, but at 65% on a rate-and-term and 60% on a cash-out. It also ties your savings to the loan calculation. For most rental owners, DSCR is the cleaner tool. The complete DSCR loans guide covers the full picture.
Is It Worth Refinancing at All?
Run a break-even test before you start. Ask whether the new loan lowers your monthly obligation or fixes a real problem, such as a balloon or an adjustable term. Then ask whether you could live with it for years.
Drawdown risk is the part most borrowers underweight. Qualifying on assets is not the same as living on them. If markets fall, your balances shrink while the loan commitment stays the same. Keep enough liquid cash outside the qualifying pool to ride out a bad stretch.
Using retirement money for closing costs adds a cost of its own. Withdrawing retirement funds before 59½ generally carries a 10% additional tax unless an exception applies, per the IRS, so tax treatment varies and a qualified professional should weigh in. Asset depletion itself withdraws nothing.
What Still Gets Underwritten
Strong assets do not bypass underwriting. Credit, debts, the property and the appraisal are still reviewed. The housing history standard is 0x30x12, though 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. Reserves are not required on the qualifier path at or below 75% loan-to-value, and above that the lender sets them. The depletion path has no published reserve months. These are program ceilings and floors, not offers.
Income-Stop Scenarios
- Retirement. Social Security or pension income that is documented may qualify you more simply. Assets fill the gap if that income is thin.
- Business sale. Sale proceeds are excused from depletion-path seasoning, but the source still needs documenting.
- Inheritance or settlement. The same excused seasoning applies. Keep the paperwork in one place.
- Layoff or sabbatical. Assets can qualify you if the balances are large enough to meet the program minimums.
- Joint assets. Who appears on the loan versus the account affects which balances count, so raise it early.
Readiness Checklist
1. List every account and its type, then apply the percentages above. 2. Gather statements, two months for the qualifier path, or the 120-day and 45-day set for depletion. 3. Document the source of any large deposit. 4. Pull your credit and check your housing payment history. 5. Decide whether the property is a home or a rental, since that sets the path.
Key Terms Defined
Asset qualifier path: The route where eligible assets, after credit percentages, must cover the entire loan.
Asset depletion path: The route where usable assets are divided by 60 months into qualifying income.
Haircut: The share of an asset’s balance a lender will not count.
Seasoning: How long funds must sit in an account before they count.
DSCR: Rent divided by the property’s monthly obligation, used to qualify rental loans.
Frequently Asked Questions
Can I refinance with no job?
Often yes on a principal residence or second home, subject to underwriting. Eligible assets can qualify the loan outright or convert into income. Your credit, debts and property are still reviewed.
Is this only for retirees?
No. Business sellers, inheritance and settlement recipients, early-retired professionals and households living on a portfolio also use it. The common thread is large balances and low documented income.
Can I get cash out?
On the depletion path, cash-out is allowed at up to 60% loan-to-value on a principal residence, second home or investment property. On the qualifier path, the lender sets cash-out and does not publish it. The proceeds never count toward qualifying.
Do retirement accounts count?
Yes. On the qualifier path they count at 90% under 59½ and 100% at 59½ or older. On the depletion path they count at 70% at any age.
Does my home equity count?
The home you are refinancing does not. Equity in other real estate counts at 60% on the depletion path only.
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. Consumer mortgage lending is licensed in 16 states. Qualification is not a commitment to lend.
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 Ability-to-Repay and Qualified Mortgage Compliance Guide
2. Compliance Alliance: Regulation Z and Investment Properties
3. IRS: Exceptions to Tax on Early Distributions
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 Document a Bank Statement, 1099 or Asset Depletion Loan · Dividend Income vs Asset Depletion for a Second Home Jumbo Loan · How an Asset Depletion Jumbo Loan Works
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.