The Quick Read: An assets-only mortgage is reviewed around the verified liquid money you hold rather than on traditional personal-income documentation or deposits, so the lender tests whether your accounts can cover the loan, closing costs, and reserves instead of asking what you earn each month.
- Qualification runs on your balance sheet, and the lender still verifies every account it relies on.
- Two versions exist: asset allowance (assets divided into imputed monthly income) and true assets-only (no income math at all).
- You do not sell the assets or pledge them as collateral.
- Retirement accounts count at 70% (80% at age 59½ or older), through select wholesale programs, subject to full underwriting.
- Above $4,000,000, every file is reviewed case by case before submission.
Key Terms Defined
Liquid assets are cash, savings, money market funds, CDs, and brokerage holdings you could turn into cash without much delay.
Asset allowance is a qualification method that divides your liquid assets by a set number of months to create imputed monthly income, which then runs through a debt-to-income test.
Assets-only is the stricter method. The lender skips income and debt-to-income math and checks that your liquid assets cover the loan amount plus costs.
Debt-to-income (DTI) is your total monthly debt payments compared with your monthly income.
Divisor is the number of months your assets are spread across. A bigger divisor means less imputed income.
Haircut is the percentage a lender discounts an asset because it is volatile or restricted.
Reserves are liquid funds left over after closing, counted in months of the mortgage obligation.
Non-QM means a loan that sits outside the standard mortgage box, usually because the borrower’s income is documented differently.
Business-purpose loan is a loan made to buy or hold property as an investment, not to live in.
How Does an Assets-Only Mortgage Work, Step by Step?
Underwriting follows a fixed order: list the eligible accounts, discount them, subtract what the deal itself consumes, then run either an income test or a coverage test. Everything turns on how much is left after the deal takes its share.
Here is the sequence a lender in Lendmire’s wholesale network walks through:
1. Inventory the accounts. Cash, savings, brokerage accounts, and vested retirement funds are the usual candidates.
2. Apply haircuts. Retirement accounts count at 70% on most files, and at 80% once the borrower is 59½ or older.
3. Remove what the purchase uses. Down payment, closing costs, and required reserves come out of the pool first. Plan around your post-closing balance, not today’s statement total.
4. Pick the test. Asset allowance divides what remains by 36, 60, or 84 months. Assets-only skips the division and checks coverage of the loan plus costs.
5. Run the rest of the file. Credit, the property, and any existing debts get reviewed like on any other loan.
6. Confirm the paper trail. Statements for each qualifying account are the core documents.
Notice what is missing: no one sells a stock and no one drains an account. The word depletion describes a paper drawdown. Your money stays where it is.
Two Ways Lenders Use Your Assets
Asset allowance converts your accounts into income. True assets-only tests whether the accounts are large enough to carry the loan outright. Same raw material, different test.
| Factor | Asset allowance | Assets-only |
|---|---|---|
| Income math | Liquid assets ÷ 36, 60, or 84 months | None |
| DTI test | Yes | No |
| What you prove | Enough imputed income | Liquid U.S. assets cover the loan |
| Property use | Primary and second homes | Confirm by program |
| Leverage cap | 80% maximum | Set by size ladder |
Asset allowance works like this. The divisor depends on the role the assets play. Use 36 months when assets supplement other income and DTI before the asset income sits at or below 60%. Use 60 months when that pre-asset ratio is above 60%. Use 84 months when assets are your only qualifier, or on any loan above $3,500,000. The ratio with the asset income counted must still fit the 50% ceiling.
The divisor swings the outcome hard. The same pool divided by 36 produces more than twice the monthly income of that pool divided by 84. That is why a borrower comparing offers should ask which divisor the file uses before judging anything else. Asset allowance stays limited to primary and second homes, with an 80% maximum, through select wholesale programs, subject to full underwriting.
Assets-only is blunter. It requires no DTI. Your liquid U.S. assets must equal the loan amount, plus closing costs, plus sixty months of any net loss on your other residential property. That last piece matters if you own rentals that run at a loss. A property that loses money each month adds to the amount you must show.
Picture a founder who just sold a company, holds a large brokerage account, and has almost no taxable income this year. Asset allowance fits if she wants income-style math with a little cushion. Assets-only fits if her accounts are big enough to cover the whole loan. The same person, two different tests.
Which Assets Count and Which Do Not?
Liquid, verifiable, and personally owned is the filter. Cash and brokerage holdings count in full on most files, retirement funds count at a discount, and anything illiquid or borrowed from someone else does not count.
What counts, through select wholesale programs:
- Checking, savings, money market accounts, and CDs.
- Brokerage holdings.
- Vested retirement accounts, at 70% (80% for borrowers 59½ and older).
- Assets held in a revocable living trust.
What never counts:
- Business funds.
- Gifts.
- Trusts other than a revocable living trust.
- Unvested stock.
- Cryptocurrency.
Home equity also does not count. Equity in another property is not liquid cash, and lenders treat it that way.
Why a Lender Can Skip Pay Stubs and Still Must Verify
Federal ability-to-repay rules for consumer mortgages let a creditor base its decision on income, on assets other than the home securing the loan, or on both, per the CFPB’s Regulation Z section 1026.43. The same rule requires the lender to verify whichever it relies on using third-party records that give reasonably reliable evidence.
That is the answer to the nervous question. This is not a stated-income loan. It is fully documented. The evidence is statements from banks and brokerages instead of W-2s, and the file is underwritten like any other.
Do You Have to Sell Your Assets?
No. Assets stay in your name and in your accounts. They are evidence of repayment ability, not collateral. The house secures the loan.
The catch is that the same assets cannot be counted twice. Reserves come from the same pool, and so does cash to close. A borrower who is reviewed on a large account and then moves most of it into the down payment can find the file no longer works. Plan the order of operations before you wire anything.
That also explains why moving money mid-process can hurt. Lenders want to see accounts that were steady and sourced. A large recent deposit needs a paper trail. Tax treatment can depend on how the funds are used and how the property is held; investors should keep clear records and speak with a qualified tax professional before relying on any deduction.
Terms depend on the lender’s guidelines, the property type, the leverage, and a full review of the credit profile.
What Size and Leverage Does This Support?
Loan sizes run from $300,000 to $30,000,000 through two wholesale programs. A portfolio non-QM program carries files up to $6,000,000. A bank portfolio program carries twelve-month-statement files up to $30,000,000 on its own ladder, and that ladder begins above $4,000,000 and overlaps the portfolio program up to $6,000,000.
On a primary residence purchase, leverage steps down as the loan grows:
- Up to $1,000,000: 90%.
- $1,000,000 to $2,000,000: 85%.
- $2,000,000 to $3,000,000: 80%.
- $3,000,000 to $4,000,000: 75%.
- Above $4,000,000: reviewed case by case before submission. The bank program’s own ladder runs 65% to $5,000,000, 60% to $10,000,000, and 55% to $30,000,000, on review.
Second homes and investment properties each follow their own leverage ladder, so check the figure for your occupancy rather than adjusting a primary-residence number. Asset allowance caps at 80% regardless. All of these are ceilings through select wholesale programs, subject to full underwriting, and none is a commitment to lend.
Other numbers to know: a 660 credit floor on the portfolio program (680 on the bank program, 700 above the super-jumbo line), DTI to 50%, and reserves of 3, 6, or 9 months by size. That is 3 months to $500,000, 6 months to $1,500,000, and 9 months above. Super-jumbo overlays add a 700 credit floor, a clean housing history, and U.S. citizen or permanent resident status.
What You Still Have to Prove
Expect statements for every qualifying account, a clear source for any large deposit, and the same credit and property review as any mortgage. You are swapping the type of evidence, not removing it.
Practical habits that help the file:
- Keep qualifying funds in one place and avoid shuffling them between accounts.
- Gather consecutive statements before you apply.
- Explain unusual deposits in writing.
- Do not count business money as personal money.
Where the General Rule Breaks
The standard path has real exceptions. These are the ones that trip borrowers up most.
Investment property. Asset allowance is for primary and second homes. A pure rental is a different animal. 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. For a rental, the property’s own income usually does the work. Lendmire’s complete DSCR loans guide walks through that path.
Retirement accounts. The 70% versus 80% split depends on age. A borrower at 52 and a borrower at 62 with identical balances produce different counted assets.
Business money. An account titled to your company does not count, even if you own all of it. Move money into a personal account early, and be ready to show the history.
Trusts. Only a revocable living trust counts. Other trust structures do not.
Crypto and unvested stock. Neither counts. A borrower whose wealth sits there has to qualify another way.
Market drops. Brokerage values move. A file approved on a high balance can look different if the account drops before closing. Build a cushion.
The divisor trap. Offers that look similar can use 36, 60, or 84 months. Compare divisors first.
Honestly, the divisor deserves more attention than it gets. Borrowers fixate on loan size and overlook it.
Assets-Only vs Bank Statements vs DSCR
Three paths serve three borrower types. Choose by where your proof is strongest: your accounts, your deposits, or the property’s rent.
| Factor | Asset path | Bank statements | DSCR |
|---|---|---|---|
| Reviewed on | Liquid balances | Deposits after expenses | Property rent |
| Best for | Asset-rich, low taxable income | Self-employed with strong cash flow | Rental purchases |
| Property use | Primary, second home | Primary, second, investment | Investment only |
| Draws on your liquidity | Yes | Moderately | Little |
Self-employed borrowers with healthy deposits often do better on statements. Lendmire’s piece Bank Statement Loan vs Assets-Only Mortgage goes deeper. Twelve or 24 months of personal or business statements qualify, with an expense ratio applied (business statements need at least 25% ownership), and transfers from the borrower’s own business into a personal account count in full.
For investors scaling a portfolio, asset qualification has a built-in limit. Each loan draws on the same pool. Reserves come from the same pool too. DSCR files lean on the property instead, which is why growing investors tend to prefer it. DSCR programs below 1.00 coverage are available through select lenders in the network, but leverage and terms adjust.
Is It Right for You?
Run this checklist before you call a broker:
- You hold substantial liquid assets in your own name.
- Your traditional personal-income documentation understates what you can afford.
- You are buying a primary or second home, not a pure rental.
- Your post-closing balance still clears reserves.
- You would rather not sell securities to prove income.
If three or more fit, the path deserves a serious look. If your wealth is in a business, real estate equity, or crypto, look at statements or DSCR instead.
Frequently Asked Questions
Is an assets-only mortgage a no-documentation loan?
No. Every account the lender relies on is verified with statements, and credit and the property get full review. The type of evidence changes, not the amount of scrutiny.
Can I use a retirement account?
Yes, with a discount. Retirement accounts count at 70% on most files, or 80% once you are 59½ or older, through select wholesale programs, subject to full underwriting.
Does the mortgage drain my accounts?
No. The depletion is a calculation only. Your assets stay in your name, unpledged and untouched.
Can I use it to buy a rental?
Asset allowance applies to primary and second homes. For rentals, the property’s income usually carries the file through a DSCR program.
Where is this available?
Lendmire’s consumer mortgage lending is licensed in 16 states: AL, CA, CO, FL, GA, IN, MI, MT, NM, NC, OH, PA, TN, TX, VA, and WA. Programs change, and every file is underwritten individually.
Next Step
If you are buying a primary or second home and want to see how your liquid assets could support the loan, Lendmire can help you compare asset-based mortgage options based on your balances, credit profile, leverage, and your goals. Terms are subject to lender guidelines and are not a commitment to lend.
Reserves come out of the same pool as your down payment, so it pays to size them early. Lendmire’s piece How Many Months of Reserves Does an Assets-Only Mortgage Require? covers the counts.
For current guidelines and terms, see Lendmire’s super jumbo bank statement loan programs page.
Lendmire’s self-employed mortgages page presents both super jumbo programs, bank statement and DSCR, side by side.
About Lendmire
Lendmire is a non-QM mortgage brokerage (NMLS# 2371349) arranging DSCR investor loans in 41 markets, including Washington, D.C. DSCR eligibility is generally reviewed around property-level rental income rather than personal income, subject to lender and program guidelines, a fit for self-employed investors and LLC-owned portfolios. Lendmire was recognized as a Scotsman Guide Top Mortgage Workplace in 2025 and 2026.
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Informational only. Not a Loan Estimate, approval, or commitment to lend. Program availability and eligibility are subject to lender guidelines, credit approval, property review, and underwriting.
References
1. CFPB, Regulation Z section 1026.43
2. Cornell LII, 12 CFR 1026.43
This article is part of Lendmire’s super jumbo bank statement loan program — full qualification details, guidelines, and scenarios live on the program page.
Related reading: How a Super Jumbo Mortgage Works for Founders · How a Super Jumbo Mortgage Works for Real Estate Developers · How a Super Jumbo Mortgage Works for Entrepreneurs
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
- Mortgage Loan Originator · NMLS# 1129696 · Verify on NMLS Consumer Access
- North Carolina Real Estate Broker · License# 343312 · Verify on NCREC
- North Carolina Insurance Producer · License# 19053198 · Property, Casualty, Life, Health · Verify on NAIC SBS
- Lendmire LLC · Firm NMLS# 2371349 · Verify firm licensure
Disclosures. The information presented in this article is general market commentary, not financial, legal, or tax advice. Lendmire is a mortgage brokerage (NMLS# 2371349) — not a direct lender or depository institution — and loan placement is subject to lender underwriting. Nothing in this content represents a commitment to lend. Loan terms, pricing, and program availability vary based on borrower qualifications, property characteristics, and state of subject property, and are subject to change at any time. Lendmire complies with Equal Housing Opportunity requirements. Consumer access: nmlsconsumeraccess.org.