The Quick Read: A borrower qualifies by showing verified liquid assets large enough to support the loan. Depending on the program, the lender either converts those assets into monthly income that must pass a debt-to-income test, or checks that liquidity covers the loan outright. The file is reviewed on that basis rather than on traditional personal-income documentation. The details below reflect select wholesale programs, subject to full underwriting, and nothing here is a commitment to lend.
- Assets-only is a family of programs, not one product. Two different underwriting structures sit under the label.
- Assets are verified, not ignored. Statements prove ownership and value, and the lender still pulls credit.
- Retirement accounts count at 70% of value (80% at age 59.5 and older). Business funds, gifts, unvested stock and cryptocurrency never count.
- These paths are for primary and second homes. Rental property usually runs on property cash flow instead.
- The divisor, the haircuts and what is netted out first decide the result more than the raw balance does.
What Does Assets-Only Actually Mean?
The label covers two structures, and mixing them up causes most of the confusion. Lenders also call the first one asset depletion, asset utilization or an asset allowance. The second is often called an asset qualifier or an assets-only loan.
| Factor | Asset allowance | Assets-only |
|---|---|---|
| How assets are used | Divided into imputed monthly income | Measured directly against the loan |
| DTI test | Yes | None |
| Typical borrower | Retiree, low reported income | Large liquid balance, no income story |
| Main lever | The divisor | Total qualifying liquidity |
Across the wholesale network Lendmire shops, both exist. When a lender says a program needs no income, ask which structure it uses. The answer changes how much you need and what the file must show.
How Does Underwriting Treat Your Assets, Step by Step?
Underwriting follows a fixed order. Each step shrinks or sizes the pool before any approval question comes up.
1. List eligible assets. These are liquid accounts such as cash, brokerage holdings and vested retirement funds.
2. Apply the haircuts. Retirement accounts count at 70%, or 80% at age 59.5 and older.
3. Remove what the deal consumes. Down payment and closing costs come out of the pool first.
4. Choose the structure. An asset allowance divides what remains. Assets-only compares it to the loan.
5. Run the test. Allowance files go through DTI. Assets-only files skip it.
6. Verify. Statements prove ownership and balances.
For an asset allowance, the divisor is the biggest lever. Through select wholesale programs, liquid assets are divided by 36 months when the file is supplemental and DTI before the asset income is at or below 60%. They are divided by 60 months when the file is supplemental and that pre-asset DTI is above 60%. They are divided by 84 months when the allowance stands alone, or on any loan above $3,500,000. Supplemental means the assets add to income documented another way, such as bank statements. The 60% test only picks the divisor. The ratio with the asset income counted must still fit the 50% DTI ceiling.
Compare the 36-month and 84-month divisors on the same portfolio. The shorter one produces about 2.3 times the qualifying income. That is why two lenders can look at one borrower and reach very different answers.
An assets-only file works differently. It qualifies without a DTI test when U.S. liquid assets equal the loan amount, plus closing costs, plus sixty months of any net loss on other residential property. Assets are counted, not sold. The borrower keeps the accounts, and the math is a repayment stress test.
Which Assets Count and Which Don’t?
Cash, brokerage holdings and vested retirement funds are the core of the pool. The rest depends on how liquid and how reachable the asset is.
| Asset | Treatment | Why |
|---|---|---|
| Checking, savings, money market | Counts in full | Cash on hand |
| Brokerage and marketable securities | Counts, subject to review | Value can swing |
| Retirement accounts | 70% (80% at 59.5+) | Penalty and tax drag |
| Revocable living trust assets | Counts | Borrower controls them |
| Other trusts | Does not count | Access is restricted |
| Business funds | Does not count | Belongs to the entity |
| Gifts, unvested stock, crypto | Does not count | Not seasoned or not stable |
Home equity and other real estate do not count either, because they are not liquid. Lendmire’s piece How to Use Trust Assets to Qualify on an Asset Depletion Mortgage covers the trust rules in more depth.
What Are the Size, Leverage and Credit Requirements?
Credit and leverage are where this family of loans tightens at the top end. Through select wholesale programs, subject to full underwriting, loan amounts run from $300,000 to $30,000,000. A portfolio non-QM program carries files to $6,000,000. A bank portfolio program takes over above $4,000,000 and carries twelve-month-statement files to $30,000,000.
On a primary-residence purchase, leverage typically steps down with size:
- 90% to $1,000,000
- 85% to $2,000,000
- 80% to $3,000,000
- 75% to $4,000,000 at the top credit tier
Above $4,000,000, every file is reviewed case by case before submission. On review, a primary-residence purchase may run around 65% to $5,000,000, then lower as size grows. Second homes run lower, roughly five points at many sizes. The asset allowance path caps at 80% either way.
Other typical requirements:
- Credit: a 660 floor on the portfolio program, 680 on the bank program, and 700 above the super-jumbo line.
- DTI: up to 50% on most files, which matters most for allowance structures.
- Reserves: 3 months to $500,000, 6 months to $1,500,000, and 9 months above.
Above $3,500,000 on a primary residence, extra overlays apply. They include a 700 credit floor, a clean housing history, U.S. citizenship or permanent residency, and no rural property. Those overlays begin at $3,000,000 on a second home.
Where Does the General Rule Break?
Most surprises come from edge cases, not from the headline formula.
Investment property. The asset paths are for primary and second homes only. A rental purchase usually runs on property cash flow. 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. A borrower with large liquid balances and a property that cash flows often belongs in that lane. Select lenders in the network also offer sub-1.00 coverage programs, though leverage and terms adjust. Lendmire’s complete DSCR loans guide walks through that path.
Reserves and assets overlapping. Some programs let the same assets serve as income support and as reserves. Others net reserves out first. Ask which applies before you count the same dollar twice.
Large loans. Above $3,500,000, the asset allowance is the 84-month standalone version. Above $4,000,000, the review is case by case.
Recent transfers. Moves between your own accounts are easy to explain. Large unexplained deposits slow a file because underwriters want to know where the money came from. Gifts never count as assets.
Market movement. Brokerage balances change between application and the final review. A thin cushion can disappear if the portfolio falls.
Texas home-equity loans. A Texas 50(a)(6) loan takes a 5-point leverage reduction and stops at $3,000,000 on the portfolio program.
Not the old no-income, no-asset loan. That product skipped verification of both. The current paths verify assets in full.
Why Does the Lender Still Need Proof?
The federal ability-to-repay rule, Regulation Z §1026.43, requires a reasonable, good-faith determination that the borrower can repay. A lender may base that on income, assets, or both. The CFPB’s small entity compliance guide lists the consumer’s income or assets, other than the dwelling, as the first factor a creditor must consider.
No federal formula sets the divisor, the haircuts or the DTI cap. Those are lender and investor choices, which is why programs differ so much.
What Do Three Typical Borrowers Look Like?
Picture a retiree with a large brokerage account and a pension. The pension is documented income and the portfolio fills the gap. A supplemental structure with a 36- or 60-month divisor may fit, depending on DTI before the asset income is counted.
Say a founder just sold a company and holds the proceeds in cash. Traditional personal-income documentation shows a modest year. Assets-only may fit if U.S. liquid assets cover the loan, closing costs and the other-property loss test. That file is built on liquidity rather than a ratio.
Consider a physician with strong deposits but uneven reported income. Assets can supplement a bank-statement file rather than replace it, which is the supplemental structure above.
Is It the Right Tool, or Is Another Route Better?
The right path depends on what you can document cleanly.
| Route | Best when | Watch for |
|---|---|---|
| Asset allowance | Big liquid pool, low income | Divisor and DTI limits |
| Assets-only | Liquidity covers the loan outright | Large balance requirement |
| Bank statements | Strong, steady deposits | Expense ratio reduces income |
| DSCR | Rental property that cash flows | Investment use only |
Lendmire’s comparison of a bank statement loan versus an assets-only mortgage covers the choice in detail. Bank statements use 12 or 24 months of deposits after an expense ratio, which reduces the income the lender can count.
One tradeoff deserves attention. Assets used to qualify are assets you cannot also spend on a down payment, repairs or reserves. A larger down payment can help leverage, but it also drains the pool.
Why Do Files Stall?
A few patterns repeat:
- Unsourced deposits. Fix by keeping statements consecutive and documenting transfers.
- Counting ineligible assets. Remove business funds, gifts and crypto before you estimate.
- Forgetting haircuts and costs. Subtract them before dividing.
- Choosing the wrong structure. An allowance borrower with a high DTI may be better served by assets-only, or the reverse.
- Thin reserve cushion. Plan for 3, 6 or 9 months depending on loan size.
Tax treatment varies with how assets are held and moved; consult a qualified professional before liquidating or transferring retirement or brokerage funds.
Key Terms Defined
Asset depletion: a method that converts liquid assets into imputed monthly income by dividing them over a set number of months.
Divisor: the number of months the lender divides eligible assets by, which sets the qualifying income.
Haircut: the percentage a lender discounts an asset to reflect risk, taxes or penalties.
Supplemental: assets used to add to income documented another way, rather than to carry the file alone.
Assets-only: a structure that compares liquid assets directly to the loan, with no DTI test.
Frequently Asked Questions
Do I have to sell my investments to qualify?
No. Assets are counted, not sold or pledged. You keep the accounts, and the lender uses the balances to test repayment ability.
Can I use retirement accounts?
Yes, through select wholesale programs. Retirement accounts count at 70% of value, or 80% at age 59.5 and older. Vested balances are what count.
Does this work for a rental property?
Generally not. The asset paths cover primary and second homes. Rental purchases more often run on property cash flow, so a DSCR loan is usually the better fit.
How much do I need in assets?
It depends on the structure. An assets-only file needs U.S. liquid assets equal to the loan plus closing costs plus sixty months of any net loss on other residential property. An allowance file depends on the divisor and your DTI.
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. Outside those states, availability differs.
Next Steps
If you are financing a high-balance home on liquid assets, deposits or bank statements and want to see how the numbers work, Lendmire can help you compare options based on your liquid assets, the property, credit profile, leverage and goals. Lendmire is a broker that shops multiple wholesale programs. It is not the lender, and every file is underwritten individually.
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 (NMLS# 2371349) is a mortgage brokerage focused on DSCR investor financing, helping arrange programs through wholesale and investor-lending channels in 41 markets, including Washington, D.C. DSCR loans are evaluated by the lender on property cash flow rather than personal income, subject to lender guidelines, supporting LLC closings and accommodating investors with four or more financed properties. Scotsman Guide Top Mortgage Workplace in both 2025 and 2026.
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References
1. CFPB, Regulation Z §1026.43
2. CFPB ATR/QM Small Entity Compliance Guide
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 to Qualify for a Bank Statement Loan for Entrepreneurs · How an Assets-Only Loan Works · How Professional Athletes Qualify for a Jumbo Mortgage With Bank Statements
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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Legal disclosures. Lendmire (NMLS# 2371349) is a state-licensed mortgage brokerage that arranges financing through wholesale lender relationships. Lendmire is not a direct lender, depository institution, or registered financial advisor. The discussion above is general informational content about real estate financing — it is not financial, legal, or tax advice, and readers should consult licensed professionals for guidance on their individual circumstances. Loan inquiries are subject to lender underwriting; this article does not represent a commitment to lend. Loan terms, rates, and qualification standards vary by borrower, property, and state, and are subject to change at any time. Equal Housing Opportunity. NMLS Consumer Access: nmlsconsumeraccess.org.