Retired With Savings and No Paycheck? You Can Still Get a Mortgage
You sold the business, or you retired early, or you are living off a portfolio you spent thirty years building. You have real money in the bank and in the brokerage account. Then you sit down with a loan officer and the first question is, "Can I see your last two pay stubs?"
There are no pay stubs. That does not mean there is no mortgage. It means you need someone who knows how to qualify you on what you have instead of what you get paid.
What is asset-based qualifying?
Lenders call it asset depletion, or assets as a basis for repayment. The idea is simple. Instead of a paycheck, the lender looks at your eligible liquid assets, subtracts what you are using for the down payment and closing costs, and spreads what is left over a set number of months. That gives the underwriter a monthly qualifying income figure, a little like a pension paying out over time.
Checking, savings, brokerage and investment accounts can count. Retirement accounts can count at least in part. The equity in the house you already own does not, and neither does a business you still run.
Do I have to sell my investments?
No. This is the part people do not believe until they see it in writing. The lender needs to verify the money exists, that it is yours, and that you can get to it. Verifying is not liquidating. Your brokerage account keeps doing what it is doing. The only money that actually moves is what you choose to bring to the closing table.
What did Freddie Mac change in 2026?
Freddie Mac rewrote its version of this rule. Bulletin 2026-10, issued in August 2026 and summarized in lender notices since, makes several changes to how assets can be used as qualifying income:
The divisor drops from 240 months to 180 months. Same assets, larger qualifying income figure.
Primary homes, second homes and investment properties are all eligible.
The old age restriction on bank and brokerage accounts is gone.
The old loan-to-value cap specific to this rule is removed, and standard program limits apply instead.
Bank and brokerage accounts generally need twelve months of seasoning, with a look at how the balance moved over that year.
The changes are required for loans settling on or after February 3, 2027, and lenders were allowed to adopt them early. Some have, some have not. That gap is exactly why it pays to run your file with more than one lender instead of taking the first answer you get. Fannie Mae has its own version of asset qualifying with its own rules, and there are non-agency programs built for this too.
Who is this actually for?
Sarasota and Lakewood Ranch are full of people this fits:
Retirees who have not started drawing Social Security or a pension yet.
Early retirees living on investments.
Business owners who just sold and have a big balance but no ongoing income.
Snowbirds buying a winter place who would rather keep the portfolio invested than write one giant check.
It also stacks. Asset-based income can sit alongside Social Security, a pension, part-time consulting or rental income. I build the file with whatever combination produces the strongest honest number.
What should you watch out for?
Seasoning matters. Money that moved into an account last month gets questions. If you are planning a purchase, do not shuffle accounts around right before you apply. Talk to me first and we will figure out the cleanest paper trail.
Retirement funds you cannot touch without penalty yet may count for less, or not at all, depending on the program and your age. And this is still a full loan. You complete an application, verify your identity and go through credit approval like anyone else. The difference is what we are proving. Instead of proving a paycheck, we are proving a portfolio.
Is this better than just paying cash?
Sometimes cash is the right answer. Sometimes keeping your money invested and liquid matters more, especially in Florida, where insurance, a roof or a hurricane deductible can ask for real money on short notice. That is a conversation about your whole picture, not a sales pitch, and I will tell you if cash makes more sense.
If your bank account and your tax return are telling two different stories, start with my guide to asset-based qualifying, or call or text (941) 941-5150. Bring your statements and we will see what they qualify you for.
Guidelines change and every file is different, so treat this as general education, not advice for your specific situation.
Tony Fitzgerald, NMLS #1284924.
Talk it through
Have a question about your own situation? I answer the phone. No pressure, no pitch, and if your current plan is the right one I will tell you that.
See how asset-based qualifying works
Already have a quote? Get a second look
Run the numbers on the calculator
More from Tony
1rmtg.com home · About Tony · How I run a mortgage call · All Field Notes posts
Loan programs: All loan options · First-time buyer · Self-employed · Refinance · HELOC and home equity · Non-warrantable condos
Where I lend: Sarasota · Lakewood Ranch · Bradenton · Venice · Every Florida location
Still have a question? 74 mortgage questions, answered straight
Tony Fitzgerald, NMLS #1284924. 1st Response Mortgage, powered by Mpire Financial Group LLC, NMLS #2108504, Florida Mortgage Lender License #MLD2467. Equal Housing Lender. NMLS Consumer Access: nmlsconsumeraccess.org. This article is general education, not financial, tax, or legal advice, and not an offer of credit or a commitment to lend. Terms vary by borrower, property, and transaction, and program guidelines change over time.
