The Quick Read: Yes, a Texas retiree can qualify for a mortgage on savings and investments alone, because asset-based programs either count eligible balances against the whole loan or convert them into monthly qualifying income, and neither route asks for traditional personal-income documentation, pay stubs or employment verification, though every file is fully underwritten and the statements are documented.
- Assets cover the loan outright: on the asset qualifier path, eligible balances must equal or exceed the entire loan amount, and no income is documented.
- Assets become income: on the asset depletion path, usable assets divided by 60 months become the qualifying income.
- Account type matters: a retirement account at age 59½ or older counts at 100% on the qualifier path but at 70% on the depletion path.
- Texas changes the paperwork, not the program figures: pulling cash out of a Texas homestead carries extra state rules.
- Rentals follow a different test: a pure rental purchase usually goes to a business-purpose investor loan that looks at the property’s rent.
All figures here are typical ceilings and floors through select programs, subject to underwriting. They are not offers.
Key Terms Defined
Asset qualifier path: a program route where eligible assets, after the credit percentages, must equal or exceed the entire loan amount.
Asset depletion path: a program route that divides usable assets by 60 months to create a monthly qualifying income.
Usable assets: the share of each balance a program counts after applying its percentages or haircuts.
Seasoning: the length of time funds have sat in an account, shown on statements.
Debt-to-income ratio: monthly debts, including the new housing payment, divided by monthly qualifying income.
Does Retirement or Age Block Approval?
No. Being retired is not a reason for denial. Lenders care about whether the file can show repayment ability, and a large, documented portfolio does that well.
Retirees often assume a missing paycheck ends the conversation. At a big bank, it often does, because standard underwriting wants a pay history or traditional personal-income documentation. Across Lendmire’s wholesale network, other programs treat the balance sheet as the qualifier. For a Texas retiree living on a portfolio, Social Security or a pension, the real question is not whether you are retired. It is which path fits your balances and your goal.
What Does “Alone” Actually Mean?
“Alone” means the lender relies on your documented assets and does not ask for employment or paycheck documentation. It does not mean the file skips review. Credit is reviewed, the property is appraised, and your statements are verified.
Lendmire is a broker. It arranges these loans through select lenders. Each lender underwrites the file and decides on approval. Through Lendmire’s asset-based mortgage program, a borrower is qualified on one path at a time. The two paths do not blend.
| Factor | Asset qualifier path | Asset depletion path |
|---|---|---|
| How assets are used | Cover the entire loan | Convert to monthly income |
| Income documented | None | Derived from assets |
| Debt-to-income test | Not applied | Applied |
| Loan amounts | Up to $4,000,000 | $125,000 to $3,500,000 |
| Best fit | Asset-rich, low-leverage buyer | Borrower who needs a higher loan |
The qualifier path suits a retiree who plans to put down a large amount or buy at modest leverage. The depletion path suits someone who wants a bigger loan than the assets alone could cover, because income, not the balance, is the test.
How Does the Asset Qualifier Path Work?
On the qualifier path, your eligible balances, after the credit percentages below, must equal or exceed the whole loan. Leverage reaches up to 80% on a purchase and 75% on a refinance of a principal residence or second home, subject to underwriting. No employment or income is documented.
The percentages favor older borrowers. Brokerage accounts, certificates of deposit, money market and savings all count at 100%. A 401(k) or IRA counts at 90% under age 59½ and at 100% at 59½ or older. Accounts combine.
Run the illustration this way. Say the loan is $800,000. The borrower holds $330,000 in brokerage accounts (100% = $330,000), $300,000 in a 401(k) while under 59½ (90% = $270,000) and $200,000 in savings (100% = $200,000). That counts $800,000 of usable assets, so the file is reviewed on assets alone. A retiree past 59½ would count the 401(k) at its full balance, which is why retirement age helps here. The lender’s own calculation governs.
Reserves are not required at or below 75% loan-to-value. Above that, the lender sets them. The credit floor is 600 on this path.
How Does the Asset Depletion Path Work?
On the depletion path, the lender applies a haircut to each asset class, adds up the usable total, and divides by 60 months. The result is monthly qualifying income. That income must then carry the full housing payment and other debts through the debt-to-income test.
Here is the worked shape. Suppose a borrower holds $1,500,000 in securities (80% = $1,200,000) and $300,000 in cash (100% = $300,000). That is $1,500,000 usable, divided by 60 months, for $25,000 of monthly qualifying income. That income then runs through the debt-to-income test. The lender’s own calculation governs.
On a principal residence or second home, leverage reaches 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.
Three guardrails apply:
- Qualified assets must reach at least the lesser of $1,000,000 or 1.25 times the loan balance.
- When asset depletion is the only income source, liquid assets can never be below $250,000.
- Asset income can also supplement documented income, such as Social Security or a pension, up to a 45% debt-to-income ratio. In that case the minimum-assets rule is waived.
That last point matters for retirees who draw a pension. Pairing the two can work better than either alone.
Which Accounts Count, and at What Value?
The same account can count for more on one path than the other. Know the difference before you decide which assets to document.
| Account type | Qualifier path | Depletion path |
|---|---|---|
| Brokerage / securities | 100% | 80% |
| Certificates of deposit | 100% | 100% |
| Money market / savings / cash | 100% | 100% |
| 401(k) or IRA | 90% under 59½, 100% after | 70% at any age |
| Private stock | Not listed | 75% |
| Real-estate equity | Not listed | 60% |
Some assets 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.
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 cash in a regulated account. The balance is then seasoned, and the lender reviews the source.
What Do Statements and Seasoning Look Like?
The assets are fully documented on both paths. “No income documentation” never means “no documentation.” The distinction is simple: no traditional personal-income documentation, pay stubs or employment verification, but plenty of statements.
On the qualifier path, funds need 60 days of seasoning, with 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. Funds from the sale of a business, an inheritance or a legal settlement are excused from that seasoning.
A practical checklist for a Texas retiree:
- Two months of statements for every account you plan to use.
- Large recent deposits explained with a paper trail.
- Retirement account statements showing your balance and your age eligibility.
- Government ID and the documents the lender requests on credit and the property.
Large, unexplained deposits slow files down. Document the source of anything that arrived recently, and ask the broker which accounts to keep untouched.
What About Credit, Leverage and Loan Size?
Credit still counts. The qualifier path has a 600 minimum score. The depletion path follows the lender’s matrix, and a first-time investor on that path needs 700. Housing history is typically 0x30x12, and one 30-day late in the past twelve months is considered case by case. Multiple bankruptcies are not eligible. A housing event needs 4 years of seasoning on the depletion path.
Because this is a full consumer-mortgage review for a home you live in, expect an appraisal, title work and the usual disclosures.
Leverage tradeoffs deserve a plain look. A large down payment on the qualifier path leaves the borrower with a small loan and a lot of equity. It also pulls cash out of the portfolio. The depletion path allows a bigger loan against the same assets, but the payment must fit the derived income. Neither choice is wrong. The right one depends on how much liquidity you want left over.
Where Does Texas Change the Picture?
The program figures do not change by state. A Texas borrower sees the same percentages and the same documents as anyone else. Consumer mortgage lending through this program is licensed in 16 states, and Texas is one of them.
Texas matters in one place: cash-out. The Texas Constitution, Article XVI, Section 50(a)(6), governs cash-out loans against a Texas homestead. If you plan to pull equity from your own homestead to fund another purchase, the state’s rules sit on top of the program’s 60% depletion-path cash-out ceiling for a principal residence or second home, and the lender’s Texas overlay can be tighter. A retiree buying with savings and no cash-out runs into none of this.
Texas property taxes and insurance also affect affordability, since they feed the payment. They are a budgeting item, not a program parameter.
Why Are Assets a Legitimate Basis for a Mortgage?
Federal rules treat assets as a legitimate repayment source. The CFPB’s ability-to-repay rule requires a lender to consider the borrower’s income or assets, other than the value of the property securing the loan. It also requires the lender to verify what it relies on with third-party records that provide reasonably reliable evidence. That is why the underwriting rests on statements, not a stated balance.
What About a Rental Property?
A rental is a different test. 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. Programs below a 1.00 coverage ratio are available through select lenders in the network, though leverage and terms adjust.
Your savings still matter on a rental. They fund the down payment and closing costs, and they are documented. A retiree’s pension or Social Security is not part of the rent test.
If a rental is thin on rent, the asset depletion path can apply to an investment property. Leverage is lower: up to 65% on a purchase or rate-and-term refinance and 60% on a cash-out. A property may pass one test and fail the other. Comparing both is part of the work a broker does.
If you plan to live in the property, the rental route usually does not fit. A home you occupy goes to an asset-based path or another full-documentation route.
Sell Your Investments or Qualify on Them?
Many retirees ask whether they should liquidate to buy. The answer turns on what you value more: flexibility or simplicity.
| Factor | Sell to fund the purchase | Qualify on the assets |
|---|---|---|
| Portfolio stays invested | No | Yes |
| Size of loan | Smaller or none | Larger |
| Liquidity after purchase | Reduced | Preserved |
| Complexity | Lower | Higher |
| Underwriting | Simpler | Statements and seasoning reviewed |
Selling removes the paperwork and the loan. Qualifying on assets keeps the portfolio working, but it means carrying a mortgage and meeting seasoning rules. Retirees with strong cash needs for health care often prefer the second route. Those who dislike debt often prefer the first. Tax treatment varies; consult a qualified professional.
When Does This Route Not Fit?
An honest answer includes the cases where it does not work.
- Thin balances. The depletion path needs the lesser of $1,000,000 or 1.25 times the loan, and never below $250,000 liquid when assets are the only income.
- Concentrated or volatile holdings. Private stock counts at 75% on the depletion path, and securities at 80%. A portfolio in a single stock can shrink fast.
- Assets held in ineligible forms. Crypto, collectibles and cash on hand must be converted and seasoned first.
- Weak credit or recent housing events. Credit floors apply regardless of balances.
- Short time horizons. If you plan to sell in a couple of years, check whether the loan terms make sense.
If any of these apply, it may be worth looking at other options, including paying cash, downsizing, or a different program.
A Quick Readiness Checklist
Ask yourself:
1. Is the property a home I will live in, a second home, or a rental?
2. Do my balances sit in eligible accounts, and for how long?
3. Am I 59½ or older, and does that change how my retirement accounts count?
4. Do I want the assets to cover the loan outright, or to become income?
5. Can I document the source of any recent large deposit?
If you can answer yes to most of these, the conversation with a broker is worth having.
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.
Frequently Asked Questions
Can a Texas retiree use a 401(k) or IRA to qualify?
Yes, with different values on each path. On the asset qualifier path, retirement balances count at 90% under age 59½ and 100% at 59½ or older. On the asset depletion path, they count at 70% at any age. Each is subject to underwriting.
Do I have to sell my investments to buy a home?
No. These programs qualify the borrower on assets without requiring a sale. Your statements are documented and seasoned, but the portfolio stays in place, and cash-out proceeds from a depletion-path loan never count as qualifying assets.
Can I use Social Security or a pension along with my assets?
Yes, on the depletion path. Asset-derived income can supplement documented income up to a 45% debt-to-income ratio, and the minimum-assets rule is waived in that case. Without that supplement, the assets must carry the file alone.
Does a Texas homestead cash-out work the same way?
Not exactly. The Texas Constitution has its own limits on cash-out loans against a homestead, so the lender’s Texas overlay can be stricter than the program’s own cash-out ceiling. A purchase funded with savings does not carry that issue.
Does a rental purchase use the same program?
Usually not. A pure rental purchase normally goes to a business-purpose investor loan that qualifies primarily on property rent, subject to lender guidelines. For an investment property, the asset depletion path is an alternative with lower leverage than for a home you live in.
For retirees who live on their portfolio, the larger the balance sheet and the cleaner the statements, the more options a Texas borrower is likely to have.
Lendmire’s asset-based mortgage in Texas page presents the program for Texas borrowers.
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.
Investors who want the broader program framework can review how DSCR loans work.
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References
1. CFPB Regulation Z, Section 1026.43
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 Texas Widow Qualify for a Mortgage on Life Insurance and Retirement Assets? · Can You Qualify for a Mortgage If Your Income Is in a Foreign Currency? · Can a Florida Retiree Get a Mortgage on Savings and Investments Alone?
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.