No Paycheck, No Problem: The Secret to Buying a Home in Retirement

How Retirees Are Buying Homes Without a Paycheck: The Power of Asset-Based Loans

Many retirees we meet in Pierce County and throughout Western Washington want to move—but they hesitate because they no longer have “qualifying income.” The paycheck has stopped, but the savings, investments, and retirement accounts are healthy. The good news is, those assets can now work for you in ways that traditional lending once ignored.

Recently, we helped an early retired Microsoft engineer use an asset-based mortgage loan to buy his new home before selling his old one. The strategy gave him freedom to move on his timeline, finish a few updates on his previous house, and avoid the stress of juggling closings. It’s a great example of how modern lending is catching up with how real people live in retirement.

What Is an Asset-Based Loan?

An asset-based (or “asset depletion”) loan lets you qualify for a mortgage using your net worth instead of employment income.

Lenders review your liquid assets—cash, brokerage accounts, IRAs, 401(k)s, and similar accounts—and use a formula to convert part of those balances into a “monthly income” for qualification purposes. You don’t have to sell investments or withdraw large amounts; the lender simply recognizes the earning power of your portfolio.

This approach has quietly become one of the most useful financing tools for retirees who want flexibility without financial disruption.

Why It Works So Well for Retirees

No job required. Lenders rely on your verifiable assets, not a paycheck.

Keep your money invested. You avoid large taxable withdrawals that could trigger penalties or affect your long-term plan.

Buy first, sell later. For our client, it meant he could secure his new home in Olympia, move in comfortably, and take his time prepping his former home for sale—no rushed deadlines or double moves.

More control. You choose the timing that makes sense for your finances, renovations, and lifestyle.

Assets That Typically Qualify

• Checking and savings accounts

• Stocks, bonds, ETFs, and mutual funds

• Retirement accounts (IRAs and 401(k)s, especially after age 59½)

• Annuities, trust funds, and even cash-value life insurance

Each lender has slightly different guidelines, but the principle is the same: if it’s liquid and verifiable, it may count.

How We Help Clients Use Asset-Based Loans

We make a point of staying current with lenders who understand the evolving needs of retirees. When clients come to us with healthy portfolios but no employment income, we connect them with loan officers experienced in structuring these programs. Then we guide the process—helping document assets, coordinate timing between properties, and make sure the move feels seamless.

For many, the biggest relief comes when they realize they can move without disturbing the investment plan they’ve worked hard to build.

Bottom Line

If you’re retired—or close to it—and want to buy your next home without dipping into your nest egg, an asset-based loan might be the answer. It’s flexible, practical, and built for your stage of life.

We’re always happy to talk through how this strategy can fit your specific goals. The rules of lending are changing, and we make sure our clients know every option that can make their next move smarter and easier.

🌟 Your Next Step: Let’s Talk

Ready to take the first step?
📞 Call or text me anytime. 253-255-5966 Let’s turn your fears into confidence—and your home’s equity into freedom.

Because your next chapter should be about joy—not worry. 💛

Susie | Real Estate Agent Serving clients in Washington for 20+ Years

P.S. Curious about your home’s value? Ask me for a free, no-obligation assessment today. 253-255-5966