The Quick Read: Yes, a retiree in Tennessee can qualify for a mortgage on savings and investments alone, because select lenders in Lendmire’s wholesale network offer asset-based programs that either count eligible balances against the whole loan or convert them into monthly qualifying income, with no traditional personal-income documentation, pay stubs or employment verification required, subject to underwriting.
- Two paths exist. The asset qualifier path covers the entire loan with eligible assets. The asset depletion path divides usable assets by 60 months to create qualifying income.
- A borrower is qualified on one path at a time. The figures from the two paths are never blended.
- Assets are documented with statements. The loan is fully underwritten, so this is not a no-documentation loan.
- Credit still matters. The qualifier path has a 600 minimum score, and the depletion path follows the lender’s matrix.
- The same program figures apply to a Tennessee borrower as to a borrower in any other licensed state.
What Does “Assets Alone” Actually Mean?
It means the lender relies on your balances instead of a paycheck, a pension statement or a tax return. Across the wholesale network, this shows up as two different methods, and they are easy to confuse.
The asset qualifier path is the simpler one. Eligible assets, after the credit percentages below, must equal or exceed the entire loan amount. The file does not document employment or income at all.
The asset depletion path works differently. The lender takes usable assets, divides them by 60 months, and treats the result as monthly income. That income must carry the full housing payment and your other debts through a debt-to-income test.
Which one fits? If your balances are large enough to cover the whole loan outright, the qualifier path is cleaner. If your balances are large but smaller than the loan, the depletion path turns them into income instead. Lendmire’s asset-based mortgage program page lays out both paths as they are placed through select lenders, and the details below are subject to underwriting.
How Does a Lender Turn Balances Into an Approval?
The lender counts only the assets it relies on, applies a percentage to each account type, and then tests the result against the loan. The steps run in this order on most files:
1. The borrower picks the path and shares statements for the accounts that will be counted. 2. The lender applies the credit percentage to each balance. Brokerage, savings and CDs count differently from retirement accounts. 3. On the qualifier path, the lender checks that usable assets equal or exceed the whole loan. 4. On the depletion path, the lender divides usable assets by 60 months and runs the resulting income through the debt-to-income test. 5. Credit, property and title are reviewed like any other mortgage file.
Two worked examples show the shape. Both are illustrative, and the lender’s own calculation governs.
Qualifier example. Picture a Tennessee retiree seeking an $800,000 loan. She holds $330,000 in brokerage accounts, which count at 100% or $330,000. She holds $300,000 in a 401(k) while under age 59½, which counts at 90% or $270,000. She holds $200,000 in savings, which counts at 100% or $200,000. Usable assets total $800,000, which equals the loan, so the file is reviewed on assets alone.
Depletion example. Consider a retiree with $1,500,000 in securities and $300,000 in cash. The securities count at 80%, or $1,200,000. The cash counts at 100%, or $300,000. Usable assets are $1,500,000, and dividing by 60 months gives $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 two examples use different assets, and that is the point. The qualifier path rewards a large pile of liquid money. The depletion path rewards a large portfolio that is not necessarily big enough to cover the loan.
Which Assets Count, and How Much?
The percentage that counts depends on the account type and on the path. Here is the qualifier path first.
| Asset (qualifier path) | Share of balance that counts |
|---|---|
| Brokerage accounts | 100% |
| Certificates of deposit | 100% |
| Money market | 100% |
| Savings | 100% |
| 401(k) and IRA, under age 59½ | 90% |
| 401(k) and IRA, age 59½ or older | 100% |
Accounts combine, so a mix of savings and brokerage balances adds up toward the loan amount. Now the depletion path, which uses its own haircuts.
| Asset (depletion path) | Share of balance that counts |
|---|---|
| Cash accounts | 100% |
| Certificates of deposit | 100% |
| Securities | 80% |
| Private stock | 75% |
| Retirement accounts, any age | 70% |
| Real-estate equity | 60% |
Several account types are 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.
Other asset classes are a gray zone. 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. Cash-out proceeds from a refinance never count as qualifying assets.
Seasoning and statements also differ by path. The qualifier path asks for 60 days of seasoning and two months of statements for each qualifying account. The depletion path asks for statements 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 on the depletion path.
Do You Have to Sell Your Investments?
No. The assets stay in place and keep working. Lenders verify them with statements, and nothing has to be sold or withdrawn to qualify.
That matters to a retiree because selling a large portfolio can create a taxable event and take money out of the market. Compare two retirees. One sells stock to fund a big down payment and loses future growth on that money. The other keeps the portfolio invested, and the lender counts it toward qualifying. Tax treatment varies by situation, so consult a qualified professional before relying on either approach.
There is one catch. The same dollars cannot do two jobs. If a balance is counted toward qualifying, it cannot also be pledged to another lender or borrowed against to fund the purchase, because pledged and borrowed funds do not count. A down payment drawn from the counted accounts also lowers the balance the lender sees. Build the numbers on what remains after the cash to close leaves the account.
Why Do the Rules Allow This?
Federal repayment rules do not require a paycheck. The CFPB’s ability-to-repay compliance guide says a lender must make a good-faith determination of repayment ability. It lists income or assets among the factors to consider, and it says the lender must verify only the income or assets it actually relies on. Statements from financial institutions are acceptable verification.
A law-firm commentary on non-QM lending adds a useful wrinkle. A lender may base a decision solely on verified assets, though the rule still calls for debt-to-income or residual-income consideration, which the commentary flags as an apparent tension. That tension is why the two paths exist. The depletion path runs derived income through a debt-to-income test, while the qualifier path rests its repayment review on the assets themselves.
Can Social Security and Pensions Be Added?
Sometimes, and it depends on the path. The qualifier path documents no income, so Social Security and pension checks are not part of the file. The depletion path is different.
On the depletion path, asset-derived income may supplement documented income, up to a 45% debt-to-income ratio. When assets supplement income this way, the minimum-assets rule is waived. A retiree with a modest pension and a large portfolio can therefore combine the two, subject to underwriting.
| Question | Qualifier path | Depletion path |
|---|---|---|
| Is income documented? | No | Only if supplementing |
| Do assets cover the whole loan? | Yes, required | Not required |
| Is a debt-to-income test used? | No income test | Yes |
| Divisor on assets | None | 60 months |
What Are the Leverage, Loan Size and Credit Limits?
The qualifier path allows up to 80% loan-to-value on a purchase and 75% on a refinance of a principal residence or second home. Loans run up to $4,000,000. Whether cash-out proceeds are allowed on this path is set by the lender and is not published, so nothing should be assumed.
The depletion path allows up to 80% on a purchase or rate-and-term refinance of a principal residence or second home, and 60% on a cash-out refinance. Loans run from $125,000 to $3,500,000. Minimum assets are the lesser of $1,000,000 or 1.25 times the loan balance, and never below $250,000 liquid when depletion is your only income source.
On credit, the qualifier path has 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 0x30x12, and one 30-day late in the last twelve months is considered case by case. Multiple bankruptcies are not eligible, and a housing event needs 4 years of seasoning on the depletion path. These figures are ceilings and floors, never offers, and every file is underwritten individually.
What About Buying a Rental?
The depletion path can finance an investment property, but leverage drops. It allows up to 65% on a purchase or rate-and-term refinance and 60% on a cash-out refinance of an investment property.
A rental is also reviewed differently from a home you live in. 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. Your savings still matter there, as down payment and reserves, but they are not converted into income.
Which route is better for a retiree buying a rental? If the property’s rent covers the payment well, a rental-focused loan usually fits better. If the rent is thin but your portfolio is deep, the depletion path may fit. The property selection drives the answer, and a large portfolio will not rescue a property whose rent does not carry its own debt.
What Is Different for a Tennessee Borrower?
The program figures do not change by state. Tennessee is one of the 16 states where Lendmire’s consumer mortgage lending is licensed. State facts such as local prices and property costs are context for your budget, not program parameters.
Relocation buyers are a common fit. A retiree who sells a home elsewhere and moves to Tennessee often holds a large cash balance but no paycheck, which is the profile these programs were built for. Sale proceeds sitting in a regulated account are straightforward to document with statements.
When Is This the Wrong Move?
Asset-based qualifying is not always the best choice. Several situations point elsewhere:
- If you have enough cash to buy outright and the cash is not needed elsewhere, a mortgage adds an obligation you may not need.
- If your assets are mostly crypto, collectibles or a closely held business, they will not count until converted to seasoned cash.
- If you are under 59½ with most of your wealth in retirement accounts, the qualifier path trims those balances to 90%, and the depletion path trims them to 70%.
- If your documented income is already strong, a conventional or full-documentation jumbo loan under those programs’ own rules may be simpler.
The portfolio itself is also a risk. A market drop after closing does not change the loan, but it can change how comfortable the budget feels. Retirees should plan the payment against steady income and not against the hope that markets hold.
What Documents Does the File Need?
Expect a short, specific list. Underwriters ask for statements, not pay stubs.
- Statements for each counted account: two months on the qualifier path, and the 120-day-old plus most recent statement on the depletion path.
- Proof that funds are in your name and in a regulated account.
- Source documents for any recent large deposit, such as a business sale, inheritance or settlement.
- Identity documents and a credit review.
- Property documents: purchase contract, appraisal and title.
Missing seasoning is the most common gap. A large deposit made last month, with no paper trail, is the file problem that sends borrowers back to gather statements.
Key Terms Defined
Asset qualifier: A path where eligible assets, after credit percentages, must equal or exceed the entire loan, with no employment or income documented.
Asset depletion: A path that divides usable assets by 60 months to create monthly qualifying income, which then runs through a debt-to-income test.
Seasoning: The period funds must sit in an account before the lender counts them.
Haircut: The reduction applied to an asset’s balance because it may lose value or be harder to access.
Debt-to-income ratio: Monthly debts, including the new housing payment, divided by monthly qualifying income.
Frequently Asked Questions
Can I qualify with no income at all?
Yes, on the asset qualifier path, where eligible assets must cover the entire loan and no employment or income is documented. Credit, the property and the assets are still fully underwritten, subject to underwriting and lender guidelines.
Do I have to withdraw from my IRA or 401(k)?
No, the balances stay where they are. On the qualifier path, they count at 90% under age 59½ and 100% at 59½ or older. On the depletion path, they count at 70% at any age.
Can I use borrowed or pledged funds?
No, pledged and borrowed funds are not published as eligible on either path. The documented route is converting other assets into a seasoned cash balance in a regulated account, with the source reviewed by the lender.
Can I refinance this way?
Yes, on both paths. The qualifier path allows up to 75% on a refinance of a principal residence or second home. The depletion path allows up to 80% on a rate-and-term refinance and 60% on a cash-out refinance of a principal residence or second home.
Does retiring early change anything?
Yes, it shifts the math on retirement accounts. Balances under age 59½ count at 90% on the qualifier path, versus 100% at 59½ or older. Seasoning and statement rules still apply, and the lender reviews each file individually.
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.
Tennessee retirees who sit on large balances and small paychecks often discover that the first step is not a loan application but a seasoning review, because the accounts that look largest on paper are not always the ones that count.
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 Compliance Guide
2. CFS Review: CFPB Addresses Non-QMs Under Ability-to-Repay Rule
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 Refinance an Ohio Mortgage After Retiring With No W-2 Income · Can a Tennessee Divorce Settlement Count as Assets for a Mortgage? · How Snowbirds Get a Mortgage on a Winter Home Without Income
Guides: Asset-Based Mortgage in Tennessee
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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Legal disclosures. Lendmire (NMLS# 2371349) is a state-licensed mortgage brokerage that arranges financing through wholesale lender relationships. Lendmire is not a direct lender, depository institution, or registered financial advisor. The discussion above is general informational content about real estate financing — it is not financial, legal, or tax advice, and readers should consult licensed professionals for guidance on their individual circumstances. Loan inquiries are subject to lender underwriting; this article does not represent a commitment to lend. Loan terms, rates, and qualification standards vary by borrower, property, and state, and are subject to change at any time. Equal Housing Opportunity. NMLS Consumer Access: nmlsconsumeraccess.org.