The Quick Read: Yes, a Virginia snowbird can buy a winter home on savings alone, either by paying all cash or by using an asset-based mortgage where documented balances qualify the loan instead of a paycheck. A DSCR loan is not the right tool, because a home the buyer lives in for the winter is not a non-owner-occupied rental.
- All cash is common for vacation buyers, and it needs proof of funds, not underwriting.
- An asset-based mortgage can cover the whole loan with eligible assets, or turn assets into qualifying income.
- Mortgage approval rests on statements, credit, and the property, subject to underwriting.
- Rental income does not help a personal-use winter home qualify.
Virginia is the reader here, not a rule. The program figures below do not change by state, and Lendmire arranges consumer asset-based mortgages for Virginia borrowers through select lenders in its network.
What Does “Savings Alone” Actually Mean?
It means one of three things, and each has its own rulebook. Mixing them up is where snowbirds lose time.
| Meaning | Rulebook | What gets checked |
|---|---|---|
| All cash | Seller and title | Proof of funds |
| Savings as down payment, loan on income | Standard income-based mortgage | Income, debts, reserves |
| Savings qualify the loan | Asset-based mortgage | Statements, credit, property |
The second row is the trap for retirees. A lender testing income and debts has little to work with when the household lives off a portfolio. The first and third rows are the real answers to the title question.
Path One: Pay All Cash
Cash is the normal move in this buyer class. NAR’s Economists’ Outlook reports that 57% of vacation-home buyers paid all cash, and 56% of investment buyers did the same. Don’t confuse that with the 26% all-cash figure from NAR’s Profile of Home Buyers and Sellers. That number covers primary-residence buyers only.
So a financed offer in a vacation market often sits next to cash offers. That is a fact about the competition, not a reason to avoid financing.
There is no lender underwriting on a cash purchase. There is still paperwork. Expect a proof-of-funds letter or recent statements with the offer, then title, insurance, and escrow. The cost of cash is liquidity. After closing, the household carries two homes out of what is left. Some buyers raise the cash from retirement accounts, and that can trigger taxes in its own right. Tax treatment varies; consult a qualified professional.
Path Two: Savings as a Down Payment, Loan on Income
This path usually fails for retirees with no paycheck. Standard underwriting tests income against debts, including the payment on the Virginia home. A big balance sheet with thin documented income does not fit that test. Rental income on a winter home you use does not count toward qualifying either.
If the household still has pension, Social Security, or part-time income, this path can work for a smaller loan. For most cash-heavy, income-light buyers, the next path fits better.
Path Three: Let the Assets Qualify the Loan
Asset-based financing is the answer for a buyer with large balances and little documented income. Across the wholesale network, the asset-based mortgage program runs on more than one path, and a borrower is qualified on one path at a time.
Asset qualifier path. Eligible assets 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, on a principal residence or second home. The credit minimum is 600. Counted balances. Exact terms depend on the lender’s guidelines, property type, leverage, and a full review of the borrower’s file.
- Brokerage, certificates of deposit, money market, and savings: 100%.
- 401(k) and IRA: 90% under age 59½, 100% at 59½ or older.
- Accounts combine.
Here is an illustrative case. An $800,000 loan with $330,000 in brokerage accounts (counted at 100%, so $330,000), $300,000 in a 401(k) under 59½ (counted at 90%, so $270,000), and $200,000 in savings (100%, so $200,000) shows $800,000 of usable assets. That is reviewed on assets alone, subject to underwriting.
Asset depletion path. Eligible assets, after haircuts, are divided by 60 months into a qualifying income. That income then runs through the debt-to-income test. Loans run from $125,000 to $3,500,000. On a principal residence or second home, leverage goes up to 80% on a purchase or rate-and-term refinance and 60% on a cash-out refinance. Counted balances:
- Cash and certificates of deposit: 100%.
- Securities: 80%.
- Private stock: 75%.
- Retirement accounts: 70% at any age.
- Real-estate equity: 60%.
Illustrative case. $1,500,000 in securities (80%, so $1,200,000) plus $300,000 in cash (100%) gives $1,500,000 usable. Divided by 60 months, that is $25,000 of monthly qualifying income. That income then has to carry the housing payment and other debts. The lender’s own calculation governs.
Minimum assets on this path are the lesser of $1,000,000 or 1.25 times the loan, and never below $250,000 liquid when depletion is the only income source. Credit follows the lender’s matrix.
Seasoning and statements
Assets are documented on both paths. This is not a no-doc loan. It means no traditional personal-income documentation, pay stubs, or employment verification, and every file is fully underwritten.
- 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 one statement within 45 days.
Crypto, precious metals, collectibles, and borrowed or pledged funds are not published as eligible on either path. The route is converting them to a seasoned cash balance in a regulated account, with the source reviewed by the lender.
Why a DSCR Loan Is the Wrong Tool Here
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.
Regulation Z draws the line at 14 days. If the owner expects to occupy the property for more than 14 days in the coming year, it cannot be treated as non-owner-occupied. A snowbird staying November through March is far past that. An LLC does not fix this, since the label on the file does not change how the property is used.
A DSCR file also asks the borrower to certify no personal occupancy. Signing that for a home you will live in is a misstatement. Keep the winter home separate from any rental-portfolio financing.
Can the Snowbird Rent It Out Sometimes?
Pick a lane. Second-home financing does not count rent toward qualifying, and a manager running bookings conflicts with second-home rules. Real rental income means an investment property, and personal use shrinks to what the program allows.
Tax rules use a separate test. IRS Publication 527 treats a dwelling as a home when personal use exceeds the greater of 14 days or 10% of the days rented at a fair price. Don’t merge it with the lending rule. Family stays count as personal use. Short-term rental rules can vary by city, county, HOA, and property type, so confirm local rules before relying on projected rental income.
Cash Versus Asset-Based Loan: How to Choose
| Factor | All cash | Asset-based mortgage |
|---|---|---|
| Liquidity after closing | Lower | Higher |
| Investments | Often sold | Stay invested |
| Offer strength | Strongest | Usually weaker than cash |
| Documentation | Proof of funds | Statements, credit, appraisal |
A simple read. If the winter home is a small share of the portfolio, cash is clean. If buying means selling appreciated investments or draining retirement accounts, an asset-based loan keeps the portfolio working. Other funding sources exist, such as a home equity loan or HELOC on the Virginia home, which Bankrate lists as a way to finance a vacation home. Those add a lien on the primary residence.
Buying cash and borrowing later is a third route. It is simple at purchase, though later financing runs through its own review.
Worked Example: A Retired Virginia Couple
This is a hypothetical. Picture a couple with a brokerage account, a 401(k), and savings, and no paycheck. Their documented income is thin.
- Cash: they sell investments, fund the offer with a proof-of-funds letter, and own the home outright with less liquidity.
- Income-based loan: they struggle, because there is little income to test.
- Asset qualifier path: if eligible balances cover the whole loan after the credit percentages, they qualify on assets alone, subject to underwriting.
- Asset depletion path: their portfolio converts to monthly income through the 60-month divisor, then carries the new payment and existing debts.
The right path depends on loan size, account mix, and whether they want to keep the portfolio invested.
Mistakes to Avoid
- Putting a winter home you will use into a DSCR file.
- Assuming an LLC changes the occupancy class.
- Counting rental income to qualify a personal-use loan.
- Sending statements that are too new for the seasoning window.
- Planning a retirement-account withdrawal without checking the tax cost.
- Forgetting to budget for two homes after closing.
Key Terms Defined
Proof of funds: a statement or letter showing the buyer has the cash for the offer.
Seasoning: the length of time money must sit in an account before it counts.
Asset qualifier: a path where eligible assets cover the whole loan amount.
Asset depletion: a path that divides usable assets by 60 months to create qualifying income.
Haircut: the share of an asset’s balance that a lender discounts.
Frequently Asked Questions
Can I buy a winter home with no income?
Yes, through all cash or an asset qualifier loan. The qualifier path documents no employment or income, but assets, credit, and the property are reviewed, subject to underwriting.
Do I have to pay all cash?
No. Cash is common among vacation buyers, but asset-based mortgages let eligible balances qualify the loan so investments can stay invested. Availability depends on the property, credit, and lender guidelines.
Do retirement accounts count?
Yes, at a discount on the depletion path (70% at any age). On the qualifier path they count at 90% under 59½ and 100% after, subject to underwriting.
Can I rent the winter home to cover costs?
Not if you want personal-use financing. Rent does not help a second-home loan qualify, and heavy renting pushes the file toward investment-property rules.
Does a DSCR loan work for a snowbird home?
No. DSCR loans are for non-owner-occupied investment property. A home you live in for months does not fit.
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.
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References
1. NAR Economists’ Outlook: the cash buyer
2. NAR: Top 10 takeaways from the Profile of Home Buyers and Sellers
3. CFPB Regulation Z, Section 1026.3
5. Bankrate: how to buy a vacation home
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 You Buy a Second Home in Georgia on Assets Instead of Income? · Can a Virginia Retiree Get a Mortgage on Savings and Investments Alone? · Can a Florida Retiree Get a Mortgage on Savings and Investments Alone?
Guides: Asset-Based Mortgage in Virginia
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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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.