The Quick Read: Yes, two retirees can apply together as co-borrowers on an asset-based mortgage, married or not. The lender looks at each person’s eligible assets, and on the asset qualifier path those combined assets must cover the entire loan, subject to underwriting. Whether a given pair works depends on whose name is on which account, how each account counts, and how the two take title.
- On the asset qualifier path, eligible assets must equal or exceed the whole loan, and no income is documented.
- On the asset depletion path, usable assets divided by 60 months become monthly qualifying income.
- Brokerage, CD, money market and savings balances count at 100% on the qualifier path. Retirement accounts count at 90% under age 59½ and 100% after.
- Marriage is not required. Title is a separate decision from the loan.
- Programs change and every file is underwritten individually, so treat every figure here as a ceiling or floor, never an offer.
Picture two friends in their late sixties, both widowed, both living on Social Security and portfolio balances. Neither has a paycheck. Both have more in the bank than most working households ever see. That is exactly the profile asset-based mortgage programs were built for, and a second name on the loan is not a problem in itself.
How Do the Two Paths Work?
An asset-based mortgage comes in two forms, and a borrower is qualified on one at a time. The asset qualifier path asks whether your eligible assets cover the whole loan. The asset depletion path turns assets into monthly income and tests it against the housing payment and other debts.
Asset qualifier path. Eligible assets, after the credit percentages below, must equal or exceed the entire loan amount. No employment or income is documented. Loans run up to $4,000,000, with leverage up to 80% on a purchase and 75% on a refinance of a principal residence or second home. The credit floor is 600, subject to underwriting. Final terms depend on lender guidelines, property type, leverage, and the borrower’s complete credit picture.
Asset depletion path. Usable assets are divided by 60 months to produce qualifying income. That income then runs through the debt-to-income test, which compares monthly debts to monthly income. Loans run from $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 refinance. This path generally needs qualified assets of at least the lesser of $1,000,000 or 1.25 times the loan, and never less than $250,000 liquid when assets are the only income source. The lender’s matrix sets the credit score.
Never blend the two tables. Pick the path first, then check the figures that belong to it.
Whose Assets Count When There Are Two Borrowers?
Both borrowers’ eligible assets are reviewed, and accounts combine. That is how a pair can clear a threshold neither person clears alone. Across the wholesale network, the cleanest files are the ones where each qualifying account is titled in a borrower’s name, because the lender has to document ownership and every balance it relies on.
Here is an illustrative qualifier-path file, with the lender’s own calculation governing. Say the pair wants an $800,000 loan. One retiree holds $330,000 in brokerage accounts, which count at 100%, or $330,000. The other holds $300,000 in a 401(k) and is under 59½, so it counts at 90%, or $270,000. Together they hold $200,000 in savings at 100%. That adds up to $800,000 of usable assets, which covers the loan on assets alone.
Now an illustrative depletion-path file. Combined securities of $1,500,000 count at 80%, or $1,200,000. Add $300,000 in cash at 100%. Usable assets are $1,500,000. Divide by 60 months and you get $25,000 of monthly qualifying income. That income must carry the housing payment and other debts through the debt-to-income test. Social Security or pension income may supplement the file. When asset income supplements documented income, the program allows it up to a 45% debt-to-income ratio, and the minimum-assets rule is waived.
One question depends on the specific lender: how a loan treats assets held by only one borrower. Some programs weigh each applicant’s profile separately. Have that conversation before you apply, not after.
How Much of Each Account Counts?
The credit percentage depends on the path and the account type. Here is how the two paths treat the main account types, subject to underwriting.
| Account type | Qualifier path | Depletion path |
|---|---|---|
| Cash, savings, money market | 100% | 100% (cash accounts) |
| Certificates of deposit | 100% | 100% |
| Brokerage / securities | 100% | 80% |
| Retirement (401(k), IRA) | 90% under 59½, 100% after | 70% at any age |
| Real-estate equity | Not listed | 60% |
Two retirees may differ in age, so check each person separately. A 62-year-old and a 58-year-old holding the same 401(k) balance will not count the same on the qualifier path.
Some holdings are not published as eligible on either path: cryptocurrency, precious metals, collectibles, pledged or borrowed funds. Privately held company stock is not eligible on either path either. The documented route is converting these to a seasoned cash balance in a regulated account, with the source reviewed by the lender. On the depletion path, custodial accounts, deferred compensation, escrow accounts, foreign funds, cash on hand and stock options are not eligible.
What Documents Do the Two of You Need?
Assets are verified on both paths. “No income documentation” never means “no documentation.” The federal ability-to-repay rule lets a creditor rest repayment ability on assets, and it requires verification with reasonably reliable third-party records, per CFPB Regulation Z and its Cornell LII text.
Seasoning is the waiting period an asset must sit in your account before it counts. The two paths differ:
- Qualifier path: 60 days of seasoning and two months of statements for each qualifying account.
- Depletion path: statements at least 120 days old at application, plus the most recent statement within 45 days. Sale-of-business, inheritance and legal-settlement funds are excused from that seasoning.
Gather statements for every account from both of you before you talk to anyone. Large recent deposits will draw questions, so be ready to show where the money came from. Both applicants’ credit is pulled. Housing history of 0x30x12 is the target, and one 30-day late in the past twelve months is considered case by case.
Do You Need to Be Married?
No. The equal-credit rules require a lender to apply the same standards to married and unmarried applicants. That means friends, siblings and partners buying together go through the same underwriting as a couple. Age works the same way: retiring and giving up a paycheck is not a disqualifier by itself.
Marriage does change one thing, which is title. Michigan Legal Help lists four ways to co-own property in Michigan: tenants in common, joint tenants, joint tenants with full rights of survivorship, and tenants by the entireties. A Michigan real estate attorney’s analysis of joint tenancy with right of survivorship explains that the entireties estate is available only to married couples, and that unmarried co-owners with an unspecified deed are presumed to be tenants in common.
That default matters. A tenant in common has no survivorship right, so if one friend dies, that share goes to their heirs, not to the co-owner. Survivorship language changes that outcome. Title is your estate-planning decision, not a lending requirement, so get legal advice on it before closing.
| Pair | Loan qualification | Title note |
|---|---|---|
| Married couple | Same standards as any applicants | Entireties available |
| Siblings or friends | Same standards, assets reviewed per person | Tenancy in common by default |
| Unmarried partners | Same standards | Survivorship needs deed language |
| Widowed pair | Same standards | Plan for each person’s heirs |
What Happens If Something Changes?
Both co-borrowers are liable on the note. If one moves to assisted living, wants to sell, or dies, the other still owes the loan unless it is refinanced or paid off. Unequal contributions are common between retirees, and they deserve a written co-ownership agreement covering shares, who pays what, and how a buyout works. A Michigan attorney can draft it.
Is This the Right Path for Two Retirees?
It fits when your balances are large and your documented income is small. It also fits when selling investments would trigger costs you would rather avoid. Tax treatment varies; consult a qualified professional.
The honest drawbacks: the qualifier path ties up a large share of your liquid assets against the loan, and the depletion path demands substantial minimum assets. Neither gives you cheap flexibility.
If the property will be a rental rather than your home, this is a different lane. Asset-based loans here are consumer mortgages for principal residences and second homes, with investment property available only on the depletion path at lower leverage, up to 65% on a purchase or rate-and-term refinance and 60% on a cash-out.
Key Terms Defined
- Asset qualifier: a path where eligible assets must cover the entire loan and no income is documented.
- Asset depletion: a path that divides usable assets by 60 months to create qualifying income.
- Debt-to-income (DTI): monthly debts compared with monthly income.
- Seasoning: how long funds must sit in an account before they count.
- Co-borrower: a second applicant who shares liability on the note.
- Tenancy in common: co-ownership with no right of survivorship.
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 that places these loans through select lenders in its network, subject to underwriting.
Frequently Asked Questions
Do both retirees have to be on the loan to use both sets of assets?
Generally yes. A lender can only rely on the assets of someone who is an applicant, with ownership documented. If one person has most of the money and the other has none, ask how the specific lender treats a one-sided file.
Are both of us liable for the full payment?
Yes. Co-borrowers share liability on the note, no matter how you split ownership or monthly costs. A written co-ownership agreement protects the relationship, but it does not change what the lender can collect.
Does age 59½ matter for a 401(k) or IRA?
On the qualifier path it does: balances count at 90% under 59½ and 100% at 59½ or older. On the depletion path retirement accounts count at 70% at any age. Check each borrower’s age separately.
Can we use this for a second home?
Yes, the programs cover principal residences and second homes, with the leverage figures above and subject to underwriting.
Do we have to sell our investments?
Not necessarily. Brokerage and retirement balances can count as qualifying assets without being sold, though the lender reviews statements and ownership. Large recent moves of money will need a documented source.
Lendmire’s asset-based mortgage in Michigan page presents the program for Michigan 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. CFPB Regulation Z, §1026.43
2. Cornell LII, 12 CFR 1026.43
3. Michigan Legal Help, Jointly Owned Property
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 Two Texas Retirees Buy a Home Together on an Asset Qualifier Mortgage? · Can a Florida Condo With Pending Assessments Get an Asset Qualifier Mortgage? · Can You Get a Pennsylvania Asset-Based Mortgage With No Job?
Guides: Asset-Based Mortgage in Michigan
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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Important disclosures. Lendmire (NMLS# 2371349) is a licensed mortgage brokerage. Lendmire is not a direct lender, depository institution, or financial advisor. All loan inquiries are subject to lender underwriting; this article does not constitute a commitment to lend. Rates, terms, and program guidelines are subject to change without notice and vary by borrower profile, property type, and state. Information in this article is general in nature and is not financial, legal, or tax advice. Equal Housing Opportunity. NMLS Consumer Access: nmlsconsumeraccess.org.