The Quick Read: Usually yes, as long as you still hold large, seasoned balances after the cash closing, because an asset-based mortgage can qualify a Texas borrower on those balances with no traditional personal-income documentation, pay stubs or employment verification, though if the purchase drained your savings or the house is your homestead and you want cash out, the answer narrows. Every file is fully underwritten, and the assets are documented with statements. Eligibility is subject to underwriting through select programs.
- Assets cover the loan (qualifier path): eligible balances must equal or exceed the entire loan, and no employment or income is documented.
- Assets become income (depletion path): usable assets divided by 60 months become qualifying income for a debt-to-income test.
- The cash you spent is gone from the count. Only what is left in documented accounts helps you.
- Rentals and homesteads split. A Texas rental can follow a business-purpose route. A homestead cash-out follows Texas constitutional rules.
What Does “Mortgage After Paying Cash” Mean?
It means you bought a house with no loan, then put a mortgage on it afterward. The industry calls it delayed financing, a cash-out after a cash purchase, or a post-purchase refinance. Investors do it to win deals where a financing contingency would lose the bid, then pull some capital back out.
Two questions decide the file. Did the lender’s own program allow a loan on a house you already own free and clear? And how do you prove you can repay once your paycheck is zero and your savings just paid for a house?
The second question is the one most cash buyers never plan for. It is where asset-based programs earn their keep.
The Real Problem: Your Cash Just Left the Account
Lenders cannot count money you already spent. A buyer who wires most of a portfolio into a house has a large property and a thin balance sheet.
Across Lendmire’s wholesale network, the files that work are the ones where the buyer kept a second pool of money. That might be brokerage accounts, retirement funds, certificates of deposit or a business sale that has not been spent. The files that stall are the ones where the house was the whole plan.
Also note that cash-out proceeds from the new loan never count as qualifying assets on the depletion path. You cannot refinance and then use the proceeds to prove you can afford the refinance.
Whether equity in the very house being financed counts as an asset is a lender-level question. Do not plan on it.
Two Ways to Qualify Without Income
Lendmire’s asset-based mortgage programs run on two paths, and a borrower is qualified on one path at a time. The figures below are ceilings and floors, not offers, and they are subject to underwriting.
| Factor | Asset qualifier path | Asset depletion path |
|---|---|---|
| How you qualify | Eligible assets cover the whole loan | Assets ÷ 60 months = income |
| Income documented | None | Derived income, DTI test |
| Purchase leverage | Up to 80% | Up to 80% home / 65% investment |
| Refinance leverage | Up to 75% | Rate-and-term as purchase; 60% cash-out |
| Loan amounts | Up to $4,000,000 | $125,000 to $3,500,000 |
| Credit | 600 minimum | Lender’s matrix |
On the depletion path, the 80% and 60% figures apply to a principal residence or second home. The investment-property figures are 65% on a purchase or rate-and-term refinance and 60% on a cash-out. On the qualifier path, whether cash-out proceeds are allowed, and at what leverage, is set by the lender and is not published.
Path one: assets cover the whole loan
The qualifier path asks one question. After the credit percentages are applied, do your eligible assets equal or exceed the entire loan? If yes, the lender documents no employment or income at all.
Brokerage accounts, certificates of deposit, money market and savings count at 100%. Retirement accounts count at 90% if you are under age 59½ and 100% at 59½ or older. Accounts combine.
Seasoning is 60 days, with two months of statements for each qualifying account. Reserves are not required at or below 75% loan-to-value. Above that, the lender sets them.
Path two: assets become income
The depletion path divides usable assets by 60 months. That figure is your qualifying income, and it must carry the housing payment and your other debts through the debt-to-income test.
Haircuts are heavier here. Cash and certificates of deposit count at 100%, securities at 80%, private stock at 75%, retirement accounts at 70% at any age, and real-estate equity at 60%.
Minimum qualified assets are the lesser of $1,000,000 or 1.25 times the loan balance. When depletion is your only income source, you also need at least $250,000 in liquid assets. If the asset income supplements documented income instead, it can be used up to a 45% debt-to-income ratio, and the minimum-assets rule is waived.
Statements must be at least 120 days old at application, plus one within 45 days. Sale-of-business, inheritance and legal-settlement funds are excused from that seasoning.
A first-time investor on this path needs a 700 score. Housing history is 0x30x12, though one 30-day late in the last twelve months is considered case by case. Multiple bankruptcies are not eligible.
Two Worked Examples
The lender’s own calculation governs. These show the shape of the math.
Qualifier path. Say a borrower wants an $800,000 loan. She holds $330,000 in brokerage accounts (100% counts, so $330,000), $300,000 in a 401(k) while under 59½ (90% counts, so $270,000), and $200,000 in savings (100% counts, so $200,000). That is $800,000 of usable assets. The loan is covered by assets alone, and no income is documented.
Depletion path. Consider a retiree with $1,500,000 in securities (80% counts, so $1,200,000) and $300,000 in cash (100% counts, so $300,000). Usable assets are $1,500,000. Divided by 60 months, that is $25,000 of monthly qualifying income. That figure then carries the housing payment and other debts through the debt-to-income test.
Now the failure case. A buyer pays cash for a house using nearly everything she owns, keeps a modest checking balance, and then asks for a mortgage. The asset count is short on both paths. No program fixes that. Pledged or borrowed funds are not published as eligible, and neither are cryptocurrency, precious metals or collectibles. The documented route for those is converting them to a seasoned cash balance in a regulated account, with the source reviewed by the lender.
Why Texas Changes the Answer
Texas draws one hard line: homestead versus everything else. A house you live in is protected by the state constitution. A rental is not.
Article XVI, Section 50 of the Texas Constitution says no lien on a homestead is valid unless it secures a debt the section lists. For a cash-out loan on that homestead, the constitutional text sets a 12th-day waiting period after application or notice. It also caps the refinance plus all other liens at 80% of fair market value, per this FindLaw copy of the provision. That page is an older mirror, so verify the current text before relying on it.
Two practical points follow:
- The program is usually tighter than the statute. On the depletion path, cash-out on a principal residence or second home tops out at 60%. The Texas cap is the outer wall, and the program limit sits inside it.
- Homestead protection belongs to people, not entities. Texas land-law commentary notes that homestead protection is for natural persons, not LLCs or corporations.
An asset-based mortgage on a principal residence or second home is a consumer loan, so consumer mortgage disclosures apply to the file. The assets, not a paycheck, carry the repayment story.
What If the Texas House Is a Rental?
Then the file looks different. 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.
Federal rulemaking treats investment-purpose loans as business-purpose loans. The CFPB’s truth-in-lending guide shows that credit extended primarily for business purposes is exempt from Regulation Z. That is why a no-paycheck investor can still be underwritten on the property.
That route qualifies primarily on property-level rental income covering the payment, subject to lender guidelines. Credit, reserves, title, appraisal and entity documents are all still reviewed. Proceeds on a recent cash purchase are generally limited to your documented cost basis, not the new appraised value. A bargain price stays your bargain.
If your rent is thin but your balance sheet is strong, the depletion path is the other door for an investment property, at 65% on a purchase or rate-and-term refinance and 60% on a cash-out. Because it is a business-purpose loan, the asset-based program applies to investor files here.
Paper Trail Checklist
Build the file before you need it. Lenders and underwriters read the history behind the cash.
Before the cash purchase:
- Keep a clean settlement statement showing no mortgage financing.
- Avoid seller financing, and avoid a bridge or hard-money lien on the house. Those generally break the cash-purchase condition.
- Know where the cash came from and keep records of every transfer.
- Decide now whether you want a refinance later. Lenders set their own windows.
After the purchase:
- Pull a title report showing no liens.
- Keep two months of statements on every account you want counted (qualifier path).
- Keep statements that are 120 days old plus one inside 45 days (depletion path).
- Gather proof of the source for any large deposit, such as a sale, inheritance or settlement.
Clean documentation does not guarantee approval. It gives the underwriter fewer gaps to chase.
Edge Cases That Trip Files
- Hard-money or bridge purchase. The cash-purchase condition generally fails. Refinancing the bridge is one thing. Taking extra cash out inside the seasoning window is the problem.
- Related-party sale. An arm’s-length sale is the norm for cash-purchase exceptions, so a sale between relatives usually falls into ordinary seasoning rules.
- Cash through an LLC. Programs vary on whether an entity purchase can be refinanced the way you want. Ask before you buy.
- Credit line as the source. A line of credit can be a source for the purchase, but the refinance may have to pay it off.
- Rehab spend. Money you put into the house after purchase is generally not reimbursed under a cost-basis cap.
- Prepayment penalties. Many investor loans carry one. Factor in your hold period.
- Texas homestead cash-out. Plan for the 12th-day wait and for the lower of the program and constitutional caps.
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.
Key Terms Defined
Asset qualifier path: The program route where eligible assets, after credit percentages, equal or exceed the whole loan and no income is documented.
Asset depletion path: The route that divides usable assets by 60 months to create qualifying income for a debt-to-income test.
Seasoning: The period money has sat in an account, shown by statements, before a lender counts it.
Delayed financing: A mortgage placed on a house soon after you bought it with cash.
Homestead: The Texas home you live in, which carries special lien protections.
Cost basis: What you actually paid for the house, often the ceiling for proceeds after a cash purchase.
Choosing Between Cash First and a Loan From Day One
Cash gives you a stronger bid. A loan from day one gives you better purchase terms and keeps more of your balance sheet intact. In this program, leverage on a purchase runs higher than on a cash-out: on the qualifier path, 80% on a purchase versus 75% on a refinance. On the depletion path, a principal residence or second home gets up to 80% on a purchase and 60% on a cash-out.
If your assets are large but you plan to spend most of them on the house, financing at purchase can preserve the asset count the lender wants to see. Run the math both ways before you wire funds.
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. Lendmire is a broker. It places files with select lenders in its network, and the lender underwrites and decides.
Frequently Asked Questions
Can I get a mortgage right after buying a house with cash?
Often, but it depends on the program and the property. On a rental, proceeds are generally capped near your documented cost basis, and each program sets its own window. On an asset-based loan, the file rests on your remaining seasoned balances, not on the house. All of it is subject to underwriting.
Does the house I just bought count as an asset?
Do not count on it. On the depletion path, real-estate equity counts at 60%, but whether equity in the property being financed qualifies is a lender-level decision. Cash-out proceeds never count as qualifying assets on the depletion path.
Is this a no-doc loan?
No. Every file is fully underwritten. You skip traditional personal-income documentation, pay stubs and employment verification, but the lender documents your assets with statements, plus credit, title and an appraisal.
What if I used a hard-money loan or a credit line to buy?
A hard-money or bridge lien on the house generally breaks the cash-purchase condition for a delayed-financing refinance. A credit line used as a source of funds may have to be paid off at the refinance. Pledged or borrowed funds are not published as eligible assets on either path.
Does the Texas 80% cap apply to my rental?
No. The homestead cash-out rules apply to a home you live in, not to a rental. A cash-bought Texas home you live in follows the homestead rules, and the business-purpose investor route is not available for it.
Lendmire’s asset-based mortgage in Texas page presents the program for Texas borrowers.
About Lendmire
Lendmire — NMLS# 2371349 — is a mortgage broker that arranges bank statement, P&L-only, 1099-only and asset-based home financing in 16 states through wholesale lenders, on primary residences, second homes and investment properties. Every option is subject to the lender’s guidelines and full underwriting. Scotsman Guide named Lendmire a Top Mortgage Workplace in both 2025 and 2026.
Investors who want the broader program framework can review how DSCR loans work.
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References
1. Texas Legal Guide – Texas Constitution, Article XVI, Section 50
2. FindLaw – Texas Constitution Art. 16, Section 50
3. Lone Star Land Law – Homestead Protections in Texas
4. Federal Register – Ability-to-Repay and Qualified Mortgage Standards
5. CFPB – Truth in Lending Act guide
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 · How to Refinance a Pennsylvania Mortgage After Retiring With No W-2 Income · Can a Virginia Buyer Get a Mortgage After Paying Cash for a House With No Income?
Guides: Asset-Based Mortgage in Texas
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.