The Quick Read: It depends on the loan path: on the asset qualifier path, usable assets must equal or exceed the entire loan amount, while on the asset depletion path usable assets are divided by 60 months into monthly qualifying income and must total at least the lesser of $1,000,000 or 1.25 times the loan. There is no single national dollar figure. Every number below is a ceiling or floor on select programs, subject to underwriting.
- Asset qualifier path: no employment or income is documented, and loans run up to $4,000,000.
- Asset depletion path: loans run from $125,000 to $3,500,000, and the derived income goes through a debt-to-income test.
- Never below $250,000 liquid when depletion is your only income source.
- Rental properties are different. A winter home you buy mainly to rent usually belongs on a DSCR loan, where the property’s rent is the test.
A snowbird’s real question is usually “how much do I need to have sitting in accounts?” Lenders ask a different question: which loan path fits, and how is each balance counted? This article covers both.
Which Path Fits a Snowbird?
The path depends on how you use the winter home and how your wealth is held. A borrower is qualified on one path at a time, and the two paths never blend.
On the asset qualifier path, eligible assets, after the credit percentages below, must equal or exceed the whole loan. Employment and income are not documented. Leverage runs up to 80% on a purchase and 75% on a refinance, for a principal residence or second home.
On the asset depletion path, eligible assets are converted to monthly income by dividing by 60. That income must carry the full housing payment and your other debts. Leverage on a principal residence or second home runs up to 80% on a purchase or rate-and-term refinance and 60% on a cash-out refinance. Cash-out proceeds never count as qualifying assets.
Across the wholesale network Lendmire works with, the qualifier path suits snowbirds whose balances are large relative to the loan. The depletion path suits those who want to keep a smaller loan-to-asset ratio or who also have pension or Social Security income. Asset-derived income may supplement documented income up to a 45% debt-to-income ratio. When it supplements, the minimum-assets rule is waived.
How Each Asset Is Counted
Accounts are not counted dollar for dollar. Each type gets a credit percentage, and the percentages differ by path. Programs set these figures, and the lender’s own calculation governs.
| Asset | Qualifier path | Depletion path |
|---|---|---|
| Brokerage accounts | 100% | Securities 80% |
| CDs | 100% | 100% |
| Money market, savings | 100% | Cash accounts 100% |
| 401(k) and IRA | 90% under 59½; 100% at 59½+ | 70% at any age |
| Private stock | Not published | 75% |
| Real-estate equity | Not published | 60% |
Accounts combine on the qualifier path. 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 to convert them to a seasoned cash balance in a regulated account, with the source reviewed by the lender. They never count at a percentage.
Why Retirement Balances Get Discounted
Retirement money is liquid on paper but costly to touch. The IRS says IRA withdrawals can be taken at any time, but a withdrawal before 59½ may carry an additional 10% tax unless an exception applies. That is why the qualifier path counts these balances at 90% for borrowers under 59½ and 100% afterward. It is also why the depletion path counts retirement accounts at 70% at any age. Tax treatment varies; consult a qualified professional.
You do not have to sell or withdraw anything to use these balances. The assets are verified, not liquidated. The depletion math is a qualifying convention, not a withdrawal plan.
Lendmire has covered the details in its pieces on how retirement assets can qualify you for a jumbo mortgage and using trust assets on an asset depletion mortgage.
The Math, Run Both Directions
Most pages only go from assets to income. A snowbird usually starts with a target price, so run it both ways. The figures below are illustrative, and the lender’s calculation governs.
Qualifier path, assets to loan. Take an $800,000 loan. Say you hold $330,000 in brokerage accounts (100%, so $330,000 counts), $300,000 in a 401(k) while under 59½ (90%, so $270,000 counts) and $200,000 in savings (100%, so $200,000 counts). That is $800,000 of usable assets. The file is reviewed on assets alone, subject to underwriting.
Depletion path, assets to income. Take $1,500,000 in securities (80%, so $1,200,000 counts) plus $300,000 in cash (100%, so $300,000 counts). That is $1,500,000 usable. Divided by 60 months, it produces $25,000 of monthly qualifying income. That income then carries the housing payment and your other debts through the debt-to-income test.
Reverse it from a target. On the qualifier path, the target is simple: usable assets equal to the loan you want. Work backward from the purchase price using the 80% purchase limit. On the depletion path, estimate the monthly income your payment and debts require, then multiply by 60. That is the usable assets you need after the credit percentages, and it is never below the program minimums. If you need a rough check, divide your usable assets by 60 and compare the result to what your total monthly housing obligations would be.
Agency programs run their own asset-based income rules, and those generally spread assets across the loan term. That produces much lower qualifying income than the 60-month divisor above. The comparison is one reason non-QM asset programs exist.
Four Snowbird Profiles
Which constraint binds depends on your balance sheet. These are hypothetical borrowers, not deals.
| Profile | Likely fit | What binds |
|---|---|---|
| Brokerage-heavy, paid-off primary home | Qualifier path | Usable assets vs. loan |
| Mostly 401(k) and IRA, under 59½ | Qualifier path (90%) | Retirement discount |
| Pension plus large portfolio | Depletion path, supplementing income | 45% debt-to-income |
| Mortgaged primary, mixed assets | Depletion path | Total debts vs. derived income |
The retirement-heavy borrower feels the discount most. On the qualifier path they lose 10% of the balance until 59½. On the depletion path they lose 30% at any age. Moving from one path to the other can change the answer even when the balance sheet stays identical.
The mortgaged-primary borrower is the one many pages skip. On the depletion path, the existing primary payment counts as a debt against the derived income. Two housing payments on one portfolio is a different test than one.
Credit, Seasoning and Documents
Assets are documented on both paths. No income documentation never means no documentation. Here is what a file typically needs.
- Qualifier path seasoning: 60 days, with two months of statements for each qualifying account.
- Depletion path statements: 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.
- Credit: the qualifier path’s published floor is a 600 score. The depletion path follows the lender’s score and loan-amount matrix, and a first-time investor on that path needs 700.
- Housing history: 0x30x12, 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.
- Reserves: on the qualifier path, none are required at or below 75% loan-to-value, and above that the lender sets them. The depletion path has no published reserve months.
A practical habit: move assets into a seasoned regulated account well before you apply. Large recent deposits need a documented source, and statements that look “fresh” can slow or sink a file.
Second Home or Rental? The Choice Changes the Loan
Occupancy drives the financing path more than any asset number. Lawyers.com describes a second home as typically in a resort or vacation area or far from the primary residence. You occupy it part of the year, you control who uses it, and it cannot be a timeshare or part of a rental agreement. Older guidance often puts the distance at 50 or more miles, but treat that as indicative.
If you rent the home while you are away, you may be buying an investment property. Lenders check use against insurance policies, public listings and address records. A false statement on a loan application is a federal offence. Short-term rental rules can vary by city, county, HOA, and property type, so investors should confirm local rules before relying on projected rental income.
On the depletion path, an investment property is allowed at lower leverage: up to 65% on a purchase and 60% on a cash-out. If rent is the point of the purchase, the investor path is usually better.
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. A DSCR loan is reviewed primarily on property-level rental income covering the payment, subject to lender guidelines. Assets still matter there, because you must fund the down payment, closing costs and any reserves the program requires. Reserves exist because a property used part of the year has slow seasons. Lendmire’s complete DSCR loans guide covers that path.
Should You Finance or Pay Cash?
A snowbird with large balances might still borrow. Liquidating a retirement account to pay cash can trigger tax, and liquidating a brokerage account gives up growth you may want. Financing keeps those assets working and preserves liquidity for emergencies. It also adds a monthly obligation, and on the depletion path that obligation must pass the debt-to-income test.
The flip point is straightforward. If your wealth is mostly cash and you would use little of it, paying cash is simple. If your wealth sits in retirement and brokerage accounts that you would rather not sell, an asset-based mortgage is worth comparing. If your income is documented and strong, a standard income-based second-home loan may price better than an asset program, and you should compare both.
Key Terms Defined
- Asset qualifier path: a loan qualified on eligible assets alone, with no employment or income documented.
- Asset depletion path: a loan where usable assets divided by 60 months become qualifying income.
- Credit percentage (haircut): the share of an account’s balance that counts toward qualifying.
- Seasoning: the length of time funds must sit in an account before they count.
- Second home: a property you occupy part of the year and control, not rented under an agreement.
Common Mistakes
- Treating a retirement balance as if it counts at full value on both paths.
- Calling the home a second home when the plan is to rent it out.
- Moving money into an account just before applying, without the seasoning it needs.
- Assuming crypto, foreign accounts or pledged funds count at a percentage. They do not.
- Forgetting that an existing primary-home payment counts against the derived income on the depletion path.
Frequently Asked Questions
How much do I need in assets for a snowbird mortgage?
On the qualifier path, usable assets must match or exceed the whole loan. On the depletion path, you need at least the lesser of $1,000,000 or 1.25 times the loan, and never below $250,000 liquid when depletion is your only income source. Credit percentages shrink what counts, so your gross balances must be higher than the loan.
Do I have to sell my investments to qualify?
No. Assets are documented and verified, not liquidated. The depletion calculation is a qualifying convention, and you keep the accounts.
Do retirement accounts count?
Yes, with a discount. The qualifier path counts 401(k) and IRA balances at 90% under 59½ and 100% at 59½ or older. The depletion path counts them at 70% at any age.
Can I use rental income to qualify for a second home?
Not on a true second home, where the rental income typically does not count. Rental income is assessed on an investment property, which is a different loan with different leverage. If rent is the plan, compare DSCR financing for the property.
Can I use this program in any state?
No. Lendmire’s consumer mortgage lending is licensed in 16 states: Alabama, California, Colorado, Florida, Georgia, Indiana, Michigan, Montana, New Mexico, North Carolina, Ohio, Pennsylvania, Tennessee, Texas, Virginia and Washington. Programs are placed through select lenders in its network, change over time and are underwritten individually.
If you are qualifying on assets rather than income and want to see how the numbers work, Lendmire, a mortgage broker, can help you compare asset-based mortgage options based on your statements, the property, credit profile, leverage, and your goals. Nothing here is a commitment to lend.
A snowbird’s winter home lives or dies on one early decision: whether it is a second home you use or a rental you operate.
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
1. IRS – Retirement plans FAQs on IRA distributions
2. Lawyers.com – Second Home vs Investment Property
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 Qualify for an Assets-Only Jumbo Loan · How to Qualify for an Assets-Only Mortgage · How Big Can an Assets-Only Mortgage Be?
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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Required disclosures. Lendmire (NMLS# 2371349) operates as a licensed mortgage broker, not a direct lender or depository. The discussion in this article is general in nature and should not be relied upon as financial, legal, or tax advice — every investment scenario is unique and should be reviewed by a qualified professional. Any loan inquiry is subject to lender underwriting, and this article is not a commitment to lend or a guarantee of approval. Mortgage rates, loan terms, and program guidelines vary by borrower, property, and state, and may change without notice. Equal Housing Opportunity. Verify licensure at NMLS Consumer Access.