Can You Get a Mortgage in Austin Using Savings Instead of a Paycheck? How Asset Depletion Loans Work

Yes, often you can. An asset depletion mortgage lets you qualify using your savings and investments instead of a paycheck. The lender looks at what you have in eligible accounts and turns it into a monthly income figure for qualifying. It’s one of the most useful tools we have for retirees, early retirees and people between jobs who have money in the bank but not a W-2 to show for it.

We hear this question a lot around Austin, Georgetown, Lakeway, Dripping Springs and San Antonio. Someone sold a business, cashed out of a tech job, or retired with a healthy portfolio, and then a bank told them they don’t have enough “income” to buy a house. Here’s how asset-based qualifying actually works.

What is an asset depletion mortgage?

An asset depletion mortgage is a type of non-QM loan that qualifies you based on your liquid assets rather than your job income. Instead of pay stubs and tax returns, the lender reviews your account statements, adds up the eligible balances, and divides that total over a set number of months to arrive at a qualifying income.

You aren’t actually required to spend your savings down to pay the mortgage. The calculation is just a way to show the lender that your assets can support the payment over the life of the loan. Your money stays invested and stays yours.

Who is asset-based qualifying a good fit for?

• Retirees who have savings and investments but modest Social Security or pension income on paper.
• Early retirees, including Austin tech folks who left the workforce after an exit or a long run of stock compensation.
• Business owners who just sold and now have proceeds in the bank but no ongoing business income.
• People between jobs or taking a career break who want to buy now rather than wait for a new offer letter.
• Investors and high-net-worth buyers whose tax returns show low income because of write-offs, even though their balance sheet is strong.

If your income is mostly from self-employment and you still run the business, a bank statement loan or a self-employed mortgage may be the better path. Sometimes the strongest file combines more than one income source, and we look at that too.

Which assets count?

Each lender sets its own rules, but these are the accounts that usually come into play:

• Checking and savings accounts
• Brokerage accounts holding stocks, bonds and mutual funds
• Retirement accounts such as IRAs and 401(k)s, often counted at a reduced value to reflect taxes and market swings
• Money market accounts and CDs
• Vested stock that is liquid and can be sold

Things that typically don’t count include the equity in your current home, unvested stock, business assets that can’t be readily sold, and anything you can’t document with statements. Money you need for your down payment, closing costs and reserves is usually set aside first, and the qualifying income is calculated from what’s left.

How do lenders turn my savings into income?

The basic idea is simple: eligible assets divided by a number of months. Where lenders differ is in the details, such as how many months they divide by, how much of a retirement account they’ll count, and whether they let you combine asset income with Social Security, a pension or rental income.

Those differences matter. The same portfolio can qualify you for a noticeably different loan amount from one lender to the next. As a broker working with more than 50 wholesale lenders, we can compare those formulas side by side instead of forcing your file into one bank’s box. Our page on why use a mortgage broker explains how that shopping works.

Do I still need decent credit and a down payment?

Yes. Asset depletion is a different way to document income, not a way around the rest of the approval. Lenders still look at your credit history, the size of your down payment, the property, and the reserves you’ll have left after closing. A stronger overall file generally means more lender options and better terms.

Asset depletion works for primary homes, second homes and in many cases investment property. On higher-priced homes in places like West Lake Hills or Lakeway, it often pairs with jumbo financing, and some lenders offer interest-only options on top of it.

What documents will I need?

• Recent statements for every account you want counted, all pages
• Retirement account statements and, in some cases, terms showing you can access the funds
• Award letters for Social Security or a pension, if you want that income added in
• A clear paper trail for any large recent deposits, such as a business sale or stock sale
• ID and the usual purchase documents once you’re under contract

Getting these organized early makes everything faster. Our guide on how Austin buyers prepare for preapproval walks through the rest of the checklist.

Is asset depletion better than just paying cash?

It depends on your goals. Some buyers have the cash to buy outright but would rather keep their money invested, keep liquidity for emergencies, or avoid selling assets and triggering taxes. Others want the simplicity of no mortgage at all. There isn’t one right answer.

What we can do is lay out what financing would look like next to a cash purchase so you can make the call with real numbers in front of you. If you also have rental property, a DSCR loan for those properties can keep your personal income out of the picture entirely.

Common mistakes to avoid

• Moving money between accounts right before you apply, which creates extra paperwork to explain
• Assuming a bank’s “no” means every lender will say no
• Forgetting that retirement funds may be counted at a reduced value
• Not planning for the reserves you’ll need left over after closing
• Waiting until you’re under contract to find out how much you qualify for

Frequently Asked Questions

Can I get a mortgage in Texas without a job if I have savings?

Often, yes. An asset depletion mortgage lets you qualify using eligible savings and investments instead of employment income. The lender converts your eligible assets into a monthly qualifying income.

Which assets count for an asset depletion loan?

Checking, savings, brokerage and money market accounts usually count, and retirement accounts often count at a reduced value. Home equity, unvested stock and assets you can’t document generally don’t.

Do I have to spend my savings to pay the mortgage?

No. The calculation only shows the lender that your assets can support the payment. Your money can stay invested.

Can retirees use Social Security together with asset depletion?

Many lenders allow you to combine asset-based income with Social Security, a pension or other documented income. The rules vary by lender, which is why comparing lenders helps.

Have savings but no paycheck? Let’s look at your options

Tell us roughly what you have in savings and investments and what you’re looking to buy. We’ll show you which lenders count your assets most favorably and how asset depletion compares with other non-QM programs for your situation. No pressure, just a straight answer.