The Quick Read: A retiree can buy a New Mexico home on assets by using one of two paths: the assets cover the whole loan outright, or the assets are converted into monthly qualifying income. Which path fits depends on how large the balances are compared with the loan, and on whether the buyer wants the largest possible loan or the simplest file. Every file is fully underwritten, and the assets are documented with statements.
- 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 ceilings: up to 80% on a purchase on the qualifier path; up to 80% on a purchase on the depletion path for a principal residence or second home.
- Paperwork: statements for every account, with no traditional personal-income documentation, pay stubs or employment verification.
- Footprint: consumer lending through the asset-based mortgage program is licensed in 16 states, and New Mexico is one of them.
All figures are ceilings and floors through select programs, subject to underwriting. They are not offers.
What “Buying on Assets” Actually Means
A retiree who sells a house in a higher-priced state often lands in New Mexico with a large balance sheet and a small paycheck. Pension and Social Security income may be modest. The portfolio is not.
Asset-based financing is built for that profile. The lender looks at what the borrower owns rather than what the borrower earns this year. Brokers who work these files, including Lendmire, see the same pattern often: big balances, thin documented income, and an automated underwriting system that reads “low income” as “low capacity.”
Be clear on one point. This is not a no-doc loan. Lenders verify the assets they rely on, and loans where neither income nor assets are verified cannot be Qualified Mortgages, per the CFPB’s ability-to-repay summary. Asset-based files are documented files. The documents are statements instead of pay stubs.
Lendmire’s asset-based mortgage program places these loans through select lenders in its network. This article covers the mechanics, not a promise of approval.
Key Terms Defined
Asset qualifier: a path where eligible assets, after credit percentages, must cover the entire loan amount.
Asset depletion: a path where usable assets divided by 60 months become monthly qualifying income.
Seasoning: how long funds must sit in an account before they count.
Haircut: the share of a balance the lender discounts because the asset can lose value or has restrictions.
Debt-to-income (DTI): monthly debts, including the new housing payment, compared against monthly qualifying income.
Which Path Fits a Retiree?
Start with the size of the loan against the size of the accounts. The answer sorts most files.
If liquid and near-liquid balances equal or exceed the whole loan, the asset qualifier path is the cleaner file. No employment or income is documented. The review rests on the assets.
If balances are large but do not cover the loan outright, the asset depletion path is the tool. The assets become income, and that income has to carry the housing payment and other debts.
A borrower is qualified on one path at a time. The table below keeps the two side by side, and the figures never blend.
| Factor | Asset Qualifier | Asset Depletion |
|---|---|---|
| How you qualify | Assets cover the full loan | Assets become monthly income |
| Income documented | None | Derived from assets |
| Purchase leverage | Up to 80% | Up to 80% (primary or second home) |
| 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 | Lender’s matrix |
Both are subject to underwriting. Investment property is possible only on the depletion path, at 65% on a purchase or rate-and-term refinance and 60% on a cash-out, and the loan is business-purpose.
How Underwriting Treats the Assets, Step by Step
Here is the sequence a file follows.
1. Inventory the accounts. List every account the borrower wants to use, with owner names and balances.
2. Apply the credit percentages for the path. Each asset type counts at a set share of its balance.
3. Check seasoning. Statements have to show the funds are established.
4. Run the path’s test. On the qualifier path, usable assets must equal or exceed the loan. On the depletion path, usable assets are divided by 60 months and the result goes through the DTI test.
5. Clear credit, collateral and title. Large balances do not decide the outcome alone. Credit, the appraisal and title still have to clear.
The CFPB’s small-entity compliance guide lists current or reasonably expected income or assets among the factors a lender must weigh. Assets are a recognized basis for repayment ability, not a workaround.
What Counts, and at What Percentage
On the asset qualifier path, the share of each balance that counts looks like this:
- Brokerage accounts, CDs, money market and savings: 100%.
- 401(k) and IRA balances: 90% under age 59½, 100% at 59½ or older.
- Accounts combine.
On the asset depletion path, the haircuts are steeper:
- Cash accounts and CDs: 100%.
- Securities: 80%.
- Private stock: 75%.
- Retirement accounts: 70% at any age.
- Real-estate equity: 60%.
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.
Crypto, precious metals, collectibles, pledged or borrowed funds, and business accounts beyond the borrower’s 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, with the source reviewed by the lender. Cash-out proceeds never count as qualifying assets.
Two Worked Examples
Say a retiree wants an $800,000 loan on the qualifier path. The accounts: $330,000 in brokerage, $300,000 in a 401(k) while under 59½, and $200,000 in savings.
- Brokerage at 100% counts $330,000.
- The 401(k) at 90% counts $270,000.
- Savings at 100% counts $200,000.
That is $800,000 of usable assets, which matches the loan, so the file is reviewed on assets alone, subject to underwriting.
Now the depletion path. Picture $1,500,000 in securities and $300,000 in cash.
- Securities at 80% count $1,200,000.
- Cash at 100% counts $300,000.
- Usable assets total $1,500,000.
- Divided by 60 months, that is $25,000 of monthly qualifying income.
That income then carries the housing payment and other debts through the DTI test. The lender’s own calculation governs.
Seasoning and Statements
This is where files stall. Not the math. The paper.
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. Sale-of-business, inheritance and legal-settlement funds are excused from that seasoning on the depletion path.
A retiree who just sold a house elsewhere should check the timing. Sale proceeds parked in a new account the week before application are a common gap. Move them early and keep the statements clean.
Credit, Minimums and Other Lines
- Qualifier path credit: a 600 minimum score. The depletion path follows the lender’s matrix.
- Housing history: 0x30x12. One 30-day late in the last twelve months is considered case by case.
- First-time investor on the depletion path: needs a 700 score.
- Housing events: a bankruptcy or foreclosure needs 4 years of seasoning on the depletion path. Multiple bankruptcies are not eligible.
- Depletion minimums: qualified assets of at least the lesser of $1,000,000 or 1.25 times the loan balance, and never below $250,000 liquid when asset depletion is the only income source.
- Supplementing income: asset-derived income may add to documented income up to a 45% DTI, and the minimum-assets rule is waived when it does.
- Reserves: none required at or below 75% loan-to-value on the qualifier path. Above that, the lender sets them. No reserve months are published for the depletion path.
Where the General Rule Breaks
Retirement accounts under 59½. Many lenders ignore these because the money cannot be tapped without a penalty. The qualifier path counts them at 90%. The depletion path counts them at 70% at any age.
Cash-out. Whether the qualifier path allows cash-out, and at what leverage, is set by the lender and is not published. On the depletion path, cash-out on a principal residence or second home tops out at 60%.
Mixed purposes. A home the retiree lives in is a consumer mortgage. A rental is business-purpose. Pick the honest purpose. For a pure rental, the property’s rent against its payment is usually the better fit, and that is a separate program.
Automated underwriting misfires. A real portfolio can still read as inadequate income in software built around paychecks. Manual review of asset-based files exists for that reason.
Assets are not sold or pledged. The lender converts them to qualifying income or counts them against the loan. The retiree keeps them invested.
Why New Mexico Draws Retirees
One New Mexico housing guide describes the state as comparatively affordable for people arriving from higher-priced markets, with Santa Fe as its priciest. Treat that as color only. Prices and rents vary widely by town, and the loan figures above do not change by state.
Couples sometimes ask whether they can combine accounts. Lendmire’s piece Can Two New Mexico Retirees Buy a Home Together on an Asset Qualifier Mortgage? covers that case.
Out-of-State Buyer Checklist
1. Pull statements for every account, at least two months each, and confirm the 60-day seasoning on the qualifier path.
2. For the depletion path, confirm the oldest statement is 120 days old and the newest is within 45 days.
3. Move sale proceeds into a regulated account early.
4. Check credit and housing history before the file goes in.
5. Decide which path the numbers support.
6. Keep documented pension and Social Security income handy. It can supplement derived income on the depletion path.
Tax treatment varies by situation; consult a qualified professional before relying on any tax outcome.
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.
Frequently Asked Questions
Can a retiree with no paycheck get a mortgage in New Mexico?
Yes, through select programs, subject to underwriting. The assets either cover the loan outright or become qualifying income. Credit, the property and title still have to clear.
Do retirement accounts count?
They do, at a discount. On the qualifier path, 401(k) and IRA balances count at 90% under 59½ and 100% after. On the depletion path they count at 70% at any age.
Does the retiree have to sell investments?
No. The assets are counted or converted for qualifying purposes. They are not sold or pledged, and the borrower keeps them.
Is this a no-doc loan?
No. Every file is fully underwritten. The assets are documented with statements, and the borrower does not provide traditional personal-income documentation, pay stubs or employment verification.
What is the largest loan available?
Up to $4,000,000 on the asset qualifier path and $125,000 to $3,500,000 on the asset depletion path, subject to underwriting and the lender’s overlays.
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. Bank statement, P&L-only, 1099-only and asset-based mortgages for self-employed and high-net-worth borrowers are arranged through wholesale lenders on primary residences, second homes and investment properties; every file is underwritten by the lender under its program guidelines. Scotsman Guide named Lendmire a Top Mortgage Workplace in both 2025 and 2026.
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References
1. CFPB Ability-to-Repay Summary
2. CFPB ATR/QM Small Entity Compliance Guide
3. iBuyer — Best Places to Live in New Mexico
This article is part of Lendmire’s asset-based mortgage program — full qualification details, guidelines, and scenarios live on the program page.
Related reading: Can a New Mexico Snowbird Buy a Winter Home on Savings Alone? · How New Mexico Tech Employees Paid in Stock Get a Mortgage on Assets · Can You Buy a Home on Savings While Your Business Is Still Ramping Up?
Guides: Asset-Based Mortgage in New Mexico
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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Important disclosures. Lendmire (NMLS# 2371349) is a licensed mortgage brokerage. Lendmire is not a direct lender, depository institution, or financial advisor. All loan inquiries are subject to lender underwriting; this article does not constitute a commitment to lend. Rates, terms, and program guidelines are subject to change without notice and vary by borrower profile, property type, and state. Information in this article is general in nature and is not financial, legal, or tax advice. Equal Housing Opportunity. NMLS Consumer Access: nmlsconsumeraccess.org.