The Quick Read: Retired Texas borrowers qualify by documenting assets instead of wages, through one of two asset-based paths. One path lets eligible assets cover the entire loan. The other converts assets into monthly qualifying income. Both are fully underwritten, subject to lender guidelines and underwriting.
- Path one, asset qualifier: eligible assets must equal or exceed the whole loan. No employment or income is documented.
- Path two, asset depletion: usable assets divided by 60 months become qualifying income that must carry the housing payment and other debts.
- You are tested on one path at a time. The two sets of figures never blend.
- You still document everything that matters. That means no traditional personal-income documentation, pay stubs or employment verification, but full account statements and a credit review.
Retirement does not end your borrowing life. It changes what you hand the lender. Instead of a pay stub, you hand over statements.
What a Missing Paycheck Means to a Lender
A lender needs proof that you can repay the loan. A paycheck is one kind of proof. Documented, seasoned assets are another, and that is the idea behind Lendmire’s asset-based mortgage programs.
Lendmire is a mortgage broker. It arranges these loans through select lenders in its wholesale network. It does not lend or approve anything itself.
There is no special retiree loan. Retirees use the same loan families as everyone else. The difference is how the file proves repayment. A salaried borrower shows pay stubs and traditional personal-income documentation. A retiree living on a portfolio shows brokerage, savings, CD and retirement statements.
Think of a retired couple with a large brokerage account, a paid-off pension plan and a modest Social Security check. On paper, their income looks thin. Their balance sheet does not. Asset-based programs are built for exactly that mismatch.
This covers a consumer purchase of a principal residence or second home. Investment property appears only on the depletion path, covered below.
Path One: Assets Cover the Whole Loan
On the asset qualifier path, your eligible assets, after the credit percentages below, must equal or exceed the entire loan amount. No employment or income is documented. Through select programs, leverage reaches 80% on a purchase and 75% on a refinance, for a principal residence or second home.
Loans run up to $4,000,000 on this path, subject to underwriting. The credit floor is a 600 score. Reserves are not required at or below 75% loan-to-value (LTV, the loan as a share of the property’s value). Above that, the lender sets them.
Whether cash-out is allowed on this path is the lender’s call. It is not something to plan around.
Here is how each account type counts toward the loan:
| Asset (qualifier path) | Share that counts |
|---|---|
| Brokerage accounts | 100% |
| Certificates of deposit | 100% |
| Money market | 100% |
| Savings | 100% |
| 401(k) or IRA, under age 59½ | 90% |
| 401(k) or IRA, age 59½ or older | 100% |
Accounts combine. You can stack brokerage, savings and retirement balances to reach the loan amount.
Seasoning is the waiting period an asset must sit in your account. Here it is 60 days, with two months of statements for each qualifying account. Move money around right before applying and the clock restarts.
Path Two: Assets Become Income
On the asset depletion path, the lender totals your usable assets, divides by 60 months, and counts the result as monthly income. That income must carry the full housing payment and your other debts through the debt-to-income test (DTI, monthly debts as a share of monthly income). You keep your assets. The division is a qualifying formula, not a withdrawal plan.
Each account type is haircut before the division:
| Asset (depletion path) | Share that counts |
|---|---|
| Cash accounts | 100% |
| Certificates of deposit | 100% |
| Securities | 80% |
| Private stock | 75% |
| Retirement accounts, any age | 70% |
| Real-estate equity | 60% |
Leverage on a principal residence or second home reaches 80% on a purchase or rate-and-term refinance and 60% on a cash-out refinance. Cash-out proceeds never count as qualifying assets.
Loan amounts run from $125,000 to $3,500,000. Credit follows the lender’s matrix. A first-time investor on this path needs a 700 score.
The housing history standard is 0x30x12. One 30-day late in the past twelve months is considered case by case. Multiple bankruptcies are not eligible. A housing event such as a foreclosure needs 4 years of seasoning.
Minimums are higher here. Qualified assets must be at least the lesser of $1,000,000 or 1.25 times the loan balance. They must never fall below $250,000 liquid when depletion is your only income source. Statements must be at least 120 days old at application, plus the most recent one within 45 days. Funds from the sale of a business, an inheritance or a legal settlement are excused from that seasoning.
Asset-derived income can also supplement documented income, such as a pension or Social Security, up to a 45% DTI. When it supplements, the minimum-assets rule is waived.
An investment property on this path is a business-purpose loan, and it is reviewed differently from an owner-occupied mortgage. Leverage is lower.
Side by Side: The Two Paths
| Factor | Asset qualifier | Asset depletion |
|---|---|---|
| Core test | Assets cover whole loan | Derived income carries DTI |
| Purchase leverage | Up to 80% | Up to 80% (residence) |
| Refinance leverage | Up to 75% | 80% rate-and-term, 60% cash-out |
| Loan range | Up to $4,000,000 | $125,000 to $3,500,000 |
| Seasoning | 60 days, 2 statements | 120-day-old plus 45-day statement |
| Investment property | Not offered | Yes, at lower leverage |
All figures are ceilings and floors through select programs, never offers. Each file is subject to underwriting.
Run the Numbers: Two Illustrative Retirees
These examples are illustrative. The lender’s own calculation governs.
Qualifier path. Picture a borrower seeking an $800,000 loan. They hold $330,000 in brokerage accounts, which counts at 100%, or $330,000. They hold $300,000 in a 401(k) and are under 59½, so it counts at 90%, or $270,000. They hold $200,000 in savings at 100%, or $200,000. Usable assets total $800,000. That matches the loan, so the file is reviewed on assets alone.
Depletion path. Now picture a retiree with $1,500,000 in securities and $300,000 in cash. Securities count at 80%, or $1,200,000. Cash counts at 100%, or $300,000. Usable assets are $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.
Same wealth, two different yardsticks. The first asks whether you could pay the loan off. The second asks whether your portfolio supports the payment.
Which Path Fits You?
Pick the path by your balance sheet, not your preference.
| Your situation | Likely fit |
|---|---|
| Large balances, loan small relative to assets | Asset qualifier |
| Heavy in retirement accounts under 59½ | Qualifier, at 90% credit |
| Assets modest versus the loan, plus a pension | Depletion, supplementing income |
| Buying a rental with your portfolio | Depletion only |
This is a genuine toss-up for many retirees. The qualifier path has no income test at all, but it demands assets that equal the whole loan. The depletion path works differently: it counts assets through a formula, applies haircuts, and adds a DTI test. A file that passes one can miss the other. Running both on your actual statements is the honest answer.
What Counts and What Doesn’t
Cash, CDs, brokerage and retirement accounts form the core on both paths. Percentages differ, as the tables show. A common surprise is the house you already own. Under the federal ability-to-repay standard, the value of the home securing the loan does not count as an asset. The CFPB’s small-entity compliance guide says assets other than that dwelling can be considered. Equity-rich, cash-poor retirees often learn this late.
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 most business accounts are not published as eligible on either path. The documented route is converting them to a seasoned cash balance in a regulated account. The lender reviews the source. Tax treatment varies; consult a qualified professional before selling anything.
Texas Specifics, and Moving In From Out of State
Texas is one of the 16 states where Lendmire arranges consumer mortgage lending. The program figures above do not change by state. What changes is the housing payment itself, because taxes and insurance vary by county and sit inside the payment on the depletion path.
Moving to Texas? A missing local work history rarely matters here. On the qualifier path, no employment or income is documented at all. On the depletion path, assets are the income source. What matters is proof of funds.
If you are selling a home elsewhere, think about timing. Proceeds need to land in a regulated account, and the lender reviews their source. Seasoning rules still apply unless an exception covers the funds. Plan the sale and the purchase together.
Why Retirees Get Declined, and the Fixes
Most declines trace to the same few problems. Fixing them before you apply is far cheaper than after.
- Assets in an ineligible bucket. Fix it by converting to a seasoned cash balance in a regulated account.
- Statements too young. Sixty days on the qualifier path, 120 days on the depletion path. Leave the money alone.
- Unexplained transfers. Large moves between accounts draw questions. Keep a paper trail.
- Total assets short. The depletion path has hard minimums. A smaller loan or larger down payment can close the gap.
- Credit or housing history. The qualifier path has a 600 floor, and on the depletion path a late in the past twelve months is reviewed case by case.
One pattern shows up often in files like these. Retirees assume the big number matters most. In practice, the account mix matters more. A portfolio heavy in ineligible holdings can fail while a smaller, cleaner one passes. Sorting the statements before applying prevents the surprise.
The Federal Rule Behind It All
Federal lending rules do not require wages. The Federal Register final rule lists eight factors a lender must consider. The first is current or reasonably expected income or assets. The CFPB’s compliance guide adds that income need not be salaried. Retirement benefits, interest, dividends and rental income can all count.
The old 43% DTI cap also gets cited as if it were still the rule. Consumer Finance Monitor reports that a later rule update replaced it in the General QM definition with a price-based test. Lenders still weigh DTI or residual income.
When Another Option Is Better
Asset-based loans are not always the answer.
- Paying cash. If your portfolio comfortably supports it, no loan means no payment.
- Reverse mortgage. Those have their own rules and suit different goals.
- Bank statement loans. That program is for borrowers who document income through deposits.
- DSCR loans. That is the business-purpose route for rentals. It qualifies primarily on property-level rental income covering the payment, subject to lender guidelines.
Drawing down a large share of your portfolio for a house carries real risk. Think about what the remaining assets must fund.
Key Terms Defined
Asset depletion: a qualifying method that divides usable assets by 60 months to create monthly income.
Seasoning: the time funds must sit in an account before they count.
Haircut: the share of an asset’s balance a lender subtracts before counting it.
DTI: monthly debts divided by monthly income.
LTV: the loan amount as a share of the property’s value.
Frequently Asked Questions
Do I have to cash out my retirement account?
No. Both paths count your balances without requiring a withdrawal. The depletion division is a formula, and you keep the assets. Account access and statements are reviewed through underwriting.
Does being under 59½ hurt me?
It matters on the qualifier path. A 401(k) or IRA counts at 90% under 59½ and 100% at 59½ or older. On the depletion path, retirement accounts count at 70% at any age.
Can I use Social Security or a pension?
Yes, as documented income. On the depletion path, asset-derived income can supplement it up to a 45% DTI.
Can I buy a rental with this?
Only on the depletion path, at 65% on a purchase or rate-and-term refinance and 60% on a cash-out refinance. The loan is business-purpose.
Is there any income documentation?
The qualifier path documents none. Both paths still document assets with statements and review credit. Every file is underwritten individually.
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’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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Informational only. Not a Loan Estimate, approval, or commitment to lend. Program availability and eligibility are subject to lender guidelines, credit approval, property review, and underwriting.
References
1. CFPB ATR/QM Small Entity Compliance Guide
2. Federal Register, ATR/QM final rule
3. Consumer Finance Monitor, QM rule update
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 Trust Beneficiary Qualify for a Mortgage on Trust Assets? · Can a Texas Widow Qualify for a Mortgage on Life Insurance and Retirement Assets? · How Pennsylvania Retirees Downsize on an Asset Qualifier Mortgage
Guides: Asset-Based Mortgage in Texas
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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- Lendmire LLC · Firm NMLS# 2371349 · Verify firm licensure
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.