The Quick Read: Yes, usually. Two retirees can apply as co-borrowers on an asset-based mortgage when both sign the note, the accounts are documented and accessible, and the program accepts more than one borrower on the property type.
- On the asset qualifier path, eligible assets must cover the entire loan; on the asset depletion path, assets become monthly qualifying income.
- Whose name sits on each account matters as much as the balance.
- Retirement accounts count at 90% under age 59½ and 100% at 59½ or older on the qualifier path, and at 70% on the depletion path.
- Title form (tenants in common or survivorship) is a separate decision from the loan.
- Programs run through select lenders, subject to underwriting.
Two retirees with big balances and small paychecks are an ordinary fit for this kind of loan. The part that trips people up is not the pooling idea. It is account ownership, title, and what happens if one co-owner dies or leaves. Lendmire, a mortgage broker, places these consumer files through select lenders in its network. Consumer mortgage lending is licensed in 16 states, Indiana among them.
How Do the Two Asset-Based Paths Work?
There are two paths, and a borrower is qualified on one at a time. The asset qualifier path asks whether eligible assets, after the credit percentages, equal or exceed the whole loan. No employment or income is documented. The asset depletion path divides usable assets by 60 months to produce a monthly qualifying income. That income must carry the housing payment and other debts through the debt-to-income test.
Think of it this way. Qualifier asks, “Do your assets cover the loan?” Depletion asks, “Do your assets, turned into income, carry the payment?”
Neither path sells your investments. The divisor is a calculation convention. Your accounts stay where they are.
Both paths are documented. “No income documentation” never means “no documentation.” The lender reviews statements, ownership, and access. The federal ability-to-repay rule lets a lender rely on income or assets other than the home securing the loan, and requires that whatever it relies on be verified. Asset-based qualifying has a regulatory footing. The details are program design.
Can Two Retirees Be Co-Borrowers?
Yes. Co-borrowing is routine. Each person applies, each credit report is pulled, and each person who signs the note is responsible for the whole debt. A market source explainer on co-owning a home notes that co-owners are typically on both title and mortgage and share the liability equally. It also says the lowest credit score among the borrowers tends to drive pricing.
Three terms get mixed up here:
- On the note means you are legally liable for repaying the loan.
- On the title means you own part of the property.
- Co-borrower usually means both. A co-signer is on the note without owning.
Relationship matters less than people expect. Spouses, siblings, partners, and friends can all apply. What changes is the title choice and the planning around it, covered below.
Credit matters on both paths. The qualifier path publishes a 600 minimum score. The depletion path follows the lender’s matrix. A first-time investor on the depletion path needs 700, which is relevant if the home is a rental. Housing history of 0x30x12 is the baseline, and a single 30-day late in the past twelve months is considered case by case, subject to underwriting.
How Are Two Borrowers’ Assets Evaluated Together?
Eligible assets from both borrowers can combine, but each asset must belong to someone on the loan, and each must meet the program’s rules. This is where two-person files succeed or stall.
Across the wholesale network, the strictest overlays focus on one question: is every person on the account also on the note? An account held by a retiree who is not borrowing may not count at all, or may count only a proportionate share. Some lenders want an access letter from a non-borrower joint holder. There is no single rule, so the safest structure puts every account you plan to use under the names of the two borrowers.
Credit percentages differ by path.
| Asset | Qualifier path | Depletion path |
|---|---|---|
| Cash, savings, money market | 100% | 100% |
| Certificates of deposit | 100% | 100% |
| Brokerage / securities | 100% | 80% |
| Retirement (401(k), IRA) | 90% under 59½; 100% at 59½+ | 70% at any age |
| Real-estate equity | Not listed | 60% |
Notice the retirement line. Most retirees are past 59½, so on the qualifier path their retirement balances count in full. On the depletion path, they count at 70% regardless of age. For two retirees holding mostly IRAs, that gap can decide which path fits. All figures are subject to underwriting.
A down payment cannot be counted twice. The Lexology legal summary on non-QM ability-to-repay states that down-payment funds cannot count as an asset for this purpose. Cash-out proceeds from the new loan likewise never count as qualifying assets on the depletion path.
A Two-Retiree Example
Take the qualifier path. Say the retirees want an $800,000 loan. Between them they hold $330,000 in brokerage accounts (100% counts, so $330,000), $300,000 in a 401(k) while under 59½ (90%, so $270,000), and $200,000 in savings (100%, so $200,000). That counts $800,000 of usable assets, which meets the loan amount on assets alone. Once either owner reaches 59½, that 401(k) counts at 100%.
Now the depletion path. Suppose the pair holds $1,500,000 in securities and $300,000 in cash. Securities at 80% count $1,200,000, cash at 100% counts $300,000, for $1,500,000 usable. Divided by 60 months, that is $25,000 of monthly qualifying income, which must then carry the housing payment and other debts through the debt-to-income test. Both examples are illustrative, and the lender’s own calculation governs.
What If the Two Profiles Are Not Equal?
An uneven pair can still qualify, but the weaker file shapes the result. Four things tend to matter.
Credit. The lender looks at both scores, and the lower one tends to drive terms. A 600 floor on the qualifier path is a minimum, not a target.
Asset mix. One retiree with cash and one with mostly retirement funds produce different usable totals on each path. Run both before choosing.
Unequal contributions. If one person funds most of the purchase, the loan does not record that. Both borrowers are liable for the full amount regardless of who contributes more. Unequal contributions belong in a written agreement and often in the title form.
Seasoning. The qualifier path wants 60 days of seasoning and two months of statements for each qualifying account. The depletion path wants statements at least 120 days old plus a recent one within 45 days. Moving money between the two retirees’ accounts right before applying can reset the clock. Move funds early, or leave them where they are.
Depletion also carries a floor: 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 assets are the only income source. Pension or Social Security income can sometimes be layered in, in which case asset-derived income supplements documented income up to a 45% debt-to-income ratio and the minimum-assets rule is waived. Whether that applies depends on the program.
How Much Can Two Retirees Borrow?
Leverage depends on the path and the property.
On the qualifier path, loans run up to $4,000,000, with up to 80% loan-to-value on a purchase and 75% on a refinance of a principal residence or second home. No reserves are required at or below 75% loan-to-value; above that, the lender sets them.
On the depletion path, loan amounts run $125,000 to $3,500,000. On a principal residence or second home, leverage reaches 80% on a purchase or rate-and-term refinance and 60% on a cash-out.
These are ceilings, not offers. The qualifier path covers principal residences and second homes. A rental purchase is only on the table through the depletion path, and a property bought mainly for rental income is often better served by a DSCR loan, which qualifies primarily on property-level rental income covering the payment, subject to lender guidelines. Lendmire’s complete DSCR loans guide explains when that route makes more sense.
How Should Two Unmarried Indiana Retirees Hold Title?
Title is a separate decision from the mortgage, and Indiana’s default may not be the one you want. Under Indiana law, a deed to two or more people is presumed a tenancy in common unless it expressly creates a joint tenancy with survivorship, according to an Indiana law firm’s overview of joint ownership. A Purdue Extension estate-planning publication adds that tenancy by the entirety is reserved for married couples, and that unmarried owners need “with rights of survivorship” wording in the deed.
| Title form | At death | Shares | Best suited to |
|---|---|---|---|
| Tenants in common | Share passes to the owner’s heirs | Can be unequal | Friends or relatives with unequal contributions |
| Joint tenancy with survivorship | Survivor takes the whole | Equal | Partners who want the survivor to keep the home |
| Tenancy by the entirety | Survivor takes the whole | Equal | Spouses |
Under survivorship, a deceased owner’s share passes to the surviving owner without probate. Under tenancy in common, a share can pass to heirs, which may mean a surviving friend ends up co-owning with a stranger. The Experian guide to buying with friends or family covers the same tradeoff. Confirm the wording with an Indiana attorney before signing the deed.
What Happens If One of You Dies, Needs Care, or Wants Out?
The loan does not split when the relationship does. Each borrower remains liable for the full balance. Here is how the common events play out.
- Death. The loan stays in place. Title form decides who owns the home. If a surviving co-owner cannot carry the payment alone, a refinance or sale may follow. Plan for it before buying.
- Moving to care. The absent owner stays on the note and title unless the loan is refinanced. Decide in advance who pays what.
- One owner wants out. A buyout usually requires the remaining owner to refinance in their own name, which means qualifying again on their own assets.
- Forced sale. Without an agreement, a dispute can end in a court-ordered sale.
For benefit eligibility, estate conflicts with heirs, and tax reporting, raise the questions with an attorney or financial advisor. Tax treatment varies; consult a qualified tax professional.
What Belongs in a Co-Ownership Agreement?
A written agreement is not required by the lender, but it is the most practical protection. A solid one covers:
1. Each owner’s contribution to the down payment, closing costs, and reserves.
2. Who pays taxes, insurance, repairs, and utilities, and in what shares.
3. House rules, including guests and pets.
4. Buyout terms and how the home is valued.
5. What happens on death, incapacity, or a move to care.
6. How a dispute gets resolved before a sale is forced.
Is Co-Buying Right for the Two of You?
| Situation | Co-buying fits when | Consider another route when |
|---|---|---|
| Married couple | Combined assets lift the total | One spouse’s accounts are better kept separate |
| Siblings or friends | Contributions and exit terms are written down | Heirs would object or one owner needs an easy exit |
| Rental purchase | You want asset-based qualifying on a residence | The property is reviewed on rent, where DSCR may fit better |
| Uneven finances | The stronger file can carry the loan | The weaker credit would raise the cost for both |
Program figures do not change by state. Title law does.
Key Terms Defined
Asset qualifier: A path where eligible assets, after credit percentages, must equal or exceed the whole loan.
Asset depletion: A path that divides usable assets by 60 months to create monthly qualifying income.
Co-borrower: A person who signs the note and shares full responsibility for repayment.
Seasoning: The length of time funds must sit in an account before they count.
Tenancy in common: A form of title where each owner holds a separate share that passes to heirs.
Survivorship: A form of title where the surviving owner takes the whole property.
Frequently Asked Questions
Do we have to be married to buy together on an asset-based mortgage?
No. Unmarried partners, siblings, and friends can all be co-borrowers. Both sign the note and are fully liable. The difference is title: tenancy by the entirety is for married couples, so unmarried Indiana owners choose between tenants in common and joint tenancy with survivorship.
Does age matter for retirement accounts?
Yes, it can. On the qualifier path, 401(k) and IRA balances count at 90% under age 59½ and 100% at 59½ or older. On the depletion path, retirement accounts count at 70% at any age. All of it is subject to underwriting.
Can we use an account held jointly with someone who is not on the loan?
Often not in full. Many programs want everyone on an account to be on the note, and some count only a proportionate share or require an access letter. Rules vary by lender, so move key assets into the borrowers’ names early and mind the seasoning period.
Do we both have to live in the home?
The qualifier and depletion paths cover principal residences and second homes, and the depletion path also covers investment property. Occupancy rules depend on the program and the lender. Discuss your plan before applying.
Will our accounts be liquidated?
No. The divisor is only a calculation. Your investments stay in place, though the lender must verify ownership, access, and seasoning.
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. Reach the team at 828-256-2183.
Lendmire’s asset-based mortgage in Indiana page presents the program for Indiana borrowers.
About Lendmire
Lendmire (NMLS# 2371349) is a mortgage broker licensed for consumer lending in 16 states. Scotsman Guide named Lendmire a Top Mortgage Workplace in both 2025 and 2026.
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References
1. Cornell LII, 12 CFR 1026.43
2. Consumer Financial Services Review via Lexology
3. Frank Kraft, Understanding Joint Ownership in Indiana
4. Purdue Extension, Understanding Your Indiana Estate
5. Nolo, Indiana Avoiding Probate
6. Experian, Buying a Home with Friends or Family
This article is part of Lendmire’s asset-based mortgage program — full qualification details, guidelines, and scenarios live on the program page.
Related reading: Is an Asset Qualifier Mortgage Harder to Get Than an Asset Depletion Loan? · Asset Qualifier vs Asset Depletion for an Heir · Asset Qualifier vs Asset Depletion for a FIRE Household
Guides: Asset-Based Mortgage in Indiana
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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Disclosures. The information presented in this article is general market commentary, not financial, legal, or tax advice. Lendmire is a mortgage brokerage (NMLS# 2371349) — not a direct lender or depository institution — and loan placement is subject to lender underwriting. Nothing in this content represents a commitment to lend. Loan terms, pricing, and program availability vary based on borrower qualifications, property characteristics, and state of subject property, and are subject to change at any time. Lendmire complies with Equal Housing Opportunity requirements. Consumer access: nmlsconsumeraccess.org.