The Quick Read: Yes, a Thrift Savings Plan (TSP) balance can count toward an asset qualifier mortgage in Virginia, because the TSP is a vested, individually titled 401(k)-style retirement account, and asset-based programs accept that account type at a percentage of its balance without requiring you to withdraw anything, subject to underwriting. The percentage depends on the path and on your age, and a TSP alone rarely covers a whole loan.
- On the asset qualifier path, retirement balances count at 90% under age 59½ and 100% at 59½ or older, through select programs.
- On the asset depletion path, retirement accounts count at 70% at any age.
- The qualifier path needs eligible assets that equal or exceed the entire loan amount, so the TSP is usually one piece of a larger pile.
- You do not cash out the TSP. The lender counts the balance as it sits, and the statement is the proof.
- Virginia changes none of the program figures. The mechanics come from the lender’s guidelines, not from state rules.
The TSP is the federal government’s retirement plan for civilian employees and members of the uniformed services. A lot of Virginia households hold one, and plenty of them have a large balance and a modest documented income. That profile is exactly who asset-based mortgages were built for.
Key Terms Defined
Asset qualifier mortgage: a loan where eligible assets, after credit percentages, equal or exceed the entire loan amount, so no employment or income is documented.
Asset depletion mortgage: a loan where usable assets are divided by 60 months to create a monthly qualifying income, which then runs through the debt-to-income test.
Haircut: the share of an asset’s balance the lender does not count. A 70% credit means a 30% haircut.
Usable assets: the balance that remains after the credit percentages are applied.
Seasoning: how long funds have sat in an account before the lender relies on them.
Vested: money that is yours to keep. The TSP vests your own contributions immediately, and the TSP booklet on in-service withdrawals covers vesting of agency money.
Traditional vs. Roth TSP: the two contribution types inside one TSP account. Both sit in the same plan, and a lender’s guidelines decide whether it treats them differently.
Does a TSP Balance Actually Count?
A TSP balance counts the way any 401(k)-type balance counts: as a retirement asset, at a percentage, with a statement behind it. Across Lendmire’s wholesale network, lenders review the TSP as a defined-contribution retirement plan. Few program guides name the TSP specifically, so describing it as a 401(k)-style account is the honest way to frame it.
The percentage exists because retirement money is not cash. It is locked inside a plan, and getting it out can trigger taxes and penalties. The lender discounts the balance to reflect that.
You do not have to withdraw the money. Withdrawing is a separate, irreversible event, and it would turn a retirement asset into a cash balance that needs its own seasoning. If you are wondering whether assets must be liquidated before they count, Lendmire’s piece Do You Have to Liquidate Assets to Reserve an Asset Qualifier Mortgage? works through that question.
One caution on the word “count.” It does not mean “counts toward a down payment in cash.” On the qualifier path the assets prove you can carry the loan. Funds you actually spend on a down payment or closing costs leave the pile and cannot be counted twice.
The Two Paths: Qualifier vs. Depletion
A borrower is qualified on one path at a time, and the paths use different percentages. The qualifier path asks whether assets cover the loan outright. The depletion path asks whether assets, converted to monthly income, can carry the payment. Never blend the two tables.
| Factor | Asset qualifier | Asset depletion |
|---|---|---|
| Core test | Assets cover the entire loan | Assets ÷ 60 months = income |
| Income documented | None | Derived income, run through DTI |
| Retirement credit | 90% under 59½, 100% at 59½+ | 70% at any age |
| Purchase leverage | Up to 80% | Up to 80% (primary/second home) |
| Refinance leverage | Up to 75% | 80% rate-and-term, 60% cash-out |
| Loan amounts | Up to $4,000,000 | $125,000 to $3,500,000 |
| Seasoning | 60 days, two months of statements | Statements 120+ days old, plus one within 45 days |
These are ceilings and floors through select programs, not offers, and every file is underwritten individually. On the depletion path, investment property is capped lower: up to 65% on a purchase or rate-and-term refinance and 60% on a cash-out. The qualifier path is for principal residences and second homes.
The qualifier path has a published credit floor of 600. The depletion path follows the lender’s matrix for score and loan amount. Cash-out proceeds never count as qualifying assets on the depletion path.
How Each Asset Type Is Treated
Cash-like assets get full credit on both paths. Retirement accounts are where the paths split, and the TSP sits in that row.
| Asset | Qualifier path | Depletion path |
|---|---|---|
| Savings, money market | 100% | Cash accounts 100% |
| Certificates of deposit | 100% | 100% |
| Brokerage accounts | 100% | Securities 80% |
| TSP / 401(k) / IRA | 90% under 59½; 100% at 59½+ | 70% at any age |
| Real-estate equity | Not published | 60% |
A few asset classes are not published as eligible on either path: cryptocurrency, precious metals, collectibles, pledged or borrowed funds, and business accounts beyond your ownership share. The documented route is converting them to a seasoned cash balance in a regulated account, with the source reviewed by the lender. For the full rundown, see Lendmire’s piece How Lenders Count Assets Toward an Asset Depletion Mortgage.
Why Age 59½ Moves the Number
Age 59½ matters because it is the TSP’s own line for penalty-free access while you are still employed. The TSP offers active employees two in-service withdrawal types, financial hardship and age-based, as MOAA’s explanation of the withdrawal process describes. Before 59½, only hardship is open, and the TSP booklet notes a 10% early-withdrawal penalty on hardship withdrawals under 59½, so tax treatment varies and a qualified professional should be consulted before you rely on any figure.
That is why the qualifier path gives 90% credit under 59½ and full credit after. An account you can reach without a penalty is worth more to a lender than one you cannot.
Here is the quirk on the depletion path: retirement accounts count at 70% at any age. Age does not improve the depletion number. For a borrower past 59½ with a large TSP, the qualifier path often treats the balance more generously, as long as the total assets can cover the full loan.
TSP-Specific Wrinkles
The TSP behaves like a 401(k) in most ways, but a few features are worth knowing before you hand a statement to a lender.
An outstanding TSP loan. Active federal employees and uniformed service members can borrow from their own TSP. A loan lowers the account balance, and a lender counts the balance that remains. Underwriters may also look at the loan repayment as an obligation, which is a question for the lender’s guidelines. A delinquent loan becomes a taxed distribution that permanently shrinks the account. Taking a TSP loan to fund a down payment lowers the balance the lender can count, and a loan cannot stand in for the balance.
Vesting. Your own contributions are vested immediately. Agency or service money follows its own vesting schedule, described in the TSP booklet. The lender counts the vested amount shown on your statement.
Traditional vs. Roth. One TSP account can hold both types. Loans and withdrawals draw from them proportionally. Some lenders may treat them identically, and others may not, so ask before assuming.
Spousal consent. Married participants need spousal consent for in-service withdrawals, per FINRED, the federal financial-education site. That only matters if you actually pull money out, which counting the balance does not require.
Inherited TSP accounts. A beneficiary account works differently from your own participant account, and the booklet notes it cannot make in-service withdrawals. Whether a given lender accepts one is a question for underwriting, not something to assume.
Mutual fund window money. Whether a lender values it differently from core-fund money is unconfirmed. Ask when you request guidelines.
A Worked Example
Say you are under 59½, you are buying a primary residence, and you want to qualify on assets alone. Treat your TSP as the retirement line in this example. The figures are illustrative, and the lender’s own calculation governs.
Qualifier path: an $800,000 loan with $330,000 in brokerage accounts (100% = $330,000), $300,000 in a 401(k)-style account such as a TSP under 59½ (90% = $270,000) and $200,000 in savings (100% = $200,000) counts $800,000 of usable assets and is reviewed on assets alone.
Notice the TSP is only 90% there. Past 59½ the same TSP would count in full, so the total usable assets would rise. Through select programs, that loan could sit at up to 80% loan-to-value on a purchase or 75% on a refinance, subject to underwriting. No reserves are required at or below 75% loan-to-value, and above that the lender sets them.
Depletion path: $1,500,000 in securities (80% = $1,200,000) plus $300,000 in cash (100% = $300,000) is $1,500,000 usable, divided by 60 months = $25,000 of monthly qualifying income, which then carries the housing payment and other debts through the debt-to-income test.
If a TSP replaced some of those securities, it would count at 70% instead of 80%. That is why a retirement-heavy borrower often does better on the qualifier path. The depletion path has its own minimums: qualified assets of at least the lesser of $1,000,000 or 1.25 times the loan balance, and never below $250,000 liquid when depletion is the only income source.
Which Borrower Are You?
Each of these profiles tends to fit a different path. Final fit depends on credit, the property, and the lender’s review.
Retired federal employee with a large TSP and a pension. The qualifier path documents no income, so the pension is not needed to qualify, provided assets cover the loan. If assets fall short, the depletion path can supplement documented income, such as a pension, with asset-derived income up to a 45% debt-to-income ratio. When it supplements, the minimum-assets rule is waived.
Retiring service member. A large TSP plus savings from a final deployment or sale of a prior home often fits the qualifier path, if the total covers the loan. Military retirement pay is documented income and fits the supplement route.
Still-employed federal employee with a big TSP. You can qualify on assets and skip employment documentation, but your TSP stays untouched. An active TSP loan lowers the balance the lender sees, so check your statement first.
Household living off a portfolio. If your balances are mostly brokerage and cash, the depletion path may work, since securities count at 80% and cash at 100%. Retirement accounts at 70% pull the number down.
TSP and a VA Loan Are Not the Same Question
VA loans are agency-backed mortgages with their own rules, and those rules govern them, not this program. On a VA loan, income typically carries qualification, and a TSP balance serves mostly as evidence of reserves. The asset qualifier is a different underwriting path in which the assets are the repayment source.
If you already know you want a VA loan, ask that lender how it treats a TSP.
What About a Rental Property?
If the property is a pure rental, an asset-based consumer mortgage is usually not the right tool. 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 matter there mainly for reserves. Lendmire’s complete DSCR loans guide covers that path.
The asset depletion path does accept investment property at lower leverage, as the table showed. It is a consumer-purpose option for borrowers who prefer to qualify on their own assets.
Virginia Context
No Virginia-specific rule changes how a TSP is counted. The percentages, seasoning periods and leverage above are program figures, and they do not vary by state. Lendmire’s consumer mortgage lending is licensed in 16 states, Virginia among them, and the loan is placed through select lenders in its wholesale network. Lendmire is a broker, not the lender.
State facts such as local prices and taxes shape your budget but not the qualifying math.
Documentation Checklist
The assets are documented on both paths. “No income documentation” never means “no documentation.”
- Current TSP statement showing your name, balance, and vested amount.
- Two months of statements for each qualifying account on the qualifier path, with 60 days of seasoning.
- Statements at least 120 days old plus the most recent one within 45 days on the depletion path.
- Source of any large recent deposit. Funds from the sale of a business, an inheritance or a legal settlement are excused from the depletion seasoning rule.
- A clean housing history. A 0x30x12 history is the target, and one 30-day late in the last twelve months is considered case by case.
- Credit report. A 600 floor applies on the qualifier path, and the depletion path follows the lender’s matrix.
Common Misconceptions
The TSP is a government account, so it does not count. The TSP is a defined-contribution plan, and the question is lender policy, not whether it is government-run.
I must withdraw the money to use it. No. The lender counts the balance as it sits. Withdrawing is a separate transaction.
A TSP loan is free money for the down payment. The loan reduces the balance, applies to active participants only, and carries repayment and separation risk.
Retirees can borrow from the TSP. Separated or retired participants cannot take new TSP loans.
The TSP counts at 100%. It does on the qualifier path at 59½ or older. Under 59½ it counts at 90% there, and on the depletion path it counts at 70% at any age.
Home equity counts like a retirement balance. Equity is a separate asset class. On the depletion path real-estate equity counts at 60%.
Frequently Asked Questions
Do I have to withdraw my TSP to use it for an asset qualifier mortgage?
No. The lender counts the vested balance shown on your statement, at the program’s percentage. You do not cash out the TSP, and withdrawing would create a separate transaction with its own consequences.
Does my TSP count more after age 59½?
On the qualifier path, yes: retirement balances count at 90% under 59½ and 100% at 59½ or older. On the depletion path they count at 70% at any age. Both are through select programs and subject to underwriting.
Can a TSP loan help with the down payment?
A TSP loan lowers the balance that remains in the account, so the countable balance falls. It also adds a repayment obligation that an underwriter may weigh. Funds you spend on the down payment cannot be counted again as assets.
Is a TSP treated differently from a 401(k) or IRA?
Most programs treat it as a retirement account in the same class. Whether a particular lender’s guidelines separate traditional and Roth balances is a question to put to underwriting.
Will a TSP alone qualify me?
Rarely, on the qualifier path, since eligible assets must equal or exceed the entire loan amount. A large TSP combined with savings or brokerage balances is a more common pattern. Loans run up to $4,000,000 on that path, subject to underwriting.
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. A good first move is to pull your latest TSP statement and note your age against 59½, because those two facts move the result more than anything else.
Lendmire’s asset-based mortgage in Virginia page presents the program for Virginia 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.
Get Started
Ready to find the right loan for you?
In about 30 seconds you can review financing options available for your home or investment property. No commitment required.
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. TSP booklet on in-service withdrawals
2. MOAA: Understanding the Thrift Savings Plan Withdrawal Process
3. FINRED: Early TSP Withdrawals
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 Buy Before You Sell in Virginia Using an Asset Qualifier Mortgage · How Much of a Brokerage Account Counts Toward a Washington Asset Qualifier Mortgage? · How to Buy Before You Sell in Indiana Using an Asset Qualifier Mortgage
Guides: Asset-Based Mortgage in Virginia
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
- Mortgage Loan Originator · NMLS# 1129696 · Verify on NMLS Consumer Access
- North Carolina Real Estate Broker · License# 343312 · Verify on NCREC
- North Carolina Insurance Producer · License# 19053198 · Property, Casualty, Life, Health · Verify on NAIC SBS
- 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.