The Quick Read: It depends on two ceilings, and the lower one sets your limit: the leverage cap for the property and loan size, and the liquid assets a program will count after haircuts, closing costs and reserves, so the same portfolio can support very different loans on a purchase, a refinance or an investment property. Assets-only options are available through select wholesale programs, subject to full underwriting.
- Assets-only qualification typically needs U.S. liquid assets equal to the loan amount plus closing costs, with no debt-to-income test.
- Asset allowance is a different path. It divides liquid assets by 36, 60 or 84 months to create qualifying income.
- Leverage steps down as the loan grows, and every loan above $4,000,000 is reviewed case by case before submission.
- Retirement accounts count at 70% (80% at age 59.5 and older). Crypto, gifts and unvested stock never count.
- For a rental property, qualification usually runs through the rent, not your balance sheet.
What Does “Assets-Only” Actually Mean?
An assets-only mortgage sizes the loan against your verified liquid assets instead of your traditional personal-income documentation or deposits. Through select wholesale programs, the file qualifies when U.S. liquid assets equal the loan amount plus closing costs. The rule also adds sixty months of any net loss on other residential property you own.
That last piece trips people up. If you carry a rental that loses money each month, the program wants five years of that loss held back in assets. Own several such properties and the required balance rises fast.
There is no debt-to-income test on this path. The lender instead looks at what is left after you close.
Assets-only is not the same as asset allowance. Asset allowance converts assets into monthly income and then runs the usual debt-to-income math. The two paths can produce very different loan sizes for the same borrower. A broker who sees many guidelines can run both and keep whichever supports the larger loan.
The bank-statement path is a third option. Lendmire’s piece comparing a bank statement loan with an assets-only mortgage covers when deposits beat a balance sheet.
The Two Ceilings That Cap Your Loan
Your maximum loan is the lower of the asset-supported amount and the leverage-supported amount. Most borrowers focus on one and miss the other. Whichever ceiling binds first decides the answer.
Ceiling one: assets. On the assets-only path, the loan plus closing costs cannot exceed counted liquid assets. If you hold $5 million in eligible liquid assets, you cannot size a loan that uses all of it. Closing costs and any held-back property losses come out first.
Ceiling two: leverage. Loan-to-value steps down as the loan grows. Through select wholesale programs, subject to underwriting, typical purchase ceilings run like this:
| Loan size | Primary residence purchase | Investment property purchase |
|---|---|---|
| $300K–$1M | 90% | 85% |
| $1M–$2M | 85% | 80% |
| $2M–$2.5M | 80% | 80% |
| $2.5M–$3M | 80% | 75% |
| $3M–$3.5M | 75% (720+ credit) | 60% |
| $3.5M–$4M | 75% (760+ credit) | 60% |
| $4M–$5M | 65%, on review | 65%, on review |
Second homes run about five points below primary residences at most sizes. Rate-and-term refinances usually track purchase leverage, while cash-out runs lower.
The two ceilings bind in different situations. A buyer with modest assets and a large down payment hits the asset ceiling first. A buyer with huge assets and a small down payment hits the leverage ceiling first. Picture someone with a very large portfolio buying a property in the $3M–$3.5M loan band as an investment. The 60% cap sets the loan, and the portfolio is not the limit at all.
Above $4,000,000, nothing in the table is a flat limit. Those loans are reviewed case by case before submission, and the leverage shown is a starting point for that review.
How Asset Allowance Works (and When It Gives a Bigger Loan)
Asset allowance turns liquid assets into monthly qualifying income. Through select wholesale programs, the divisor is 36 months when the asset income supplements other income and debt-to-income stays at or below 60%. It is 84 months when assets are the only income, and for any loan above $3,500,000.
A shorter divisor produces more monthly income from the same balance. That is why the divisor is the biggest swing factor in the math. The 80% maximum LTV applies, and this path is for primary and second homes only.
Here is the logic with no dollars attached. A borrower with a strong salary but a high existing obligation load might use the 36-month divisor to add asset income on top of earnings. A retiree with no salary falls into the 84-month standalone path. The same account balance supports a far smaller loan for the retiree, because the divisor is more than twice as long.
So which path is larger? For someone with little debt and huge liquidity, assets-only can win, since it ignores debt-to-income. For someone with real income and modest liquidity, asset allowance can win. Run both before assuming.
What Counts as an Asset, and How Much of It
Only certain assets count, and some count at a discount. Documentation requires consecutive statements showing ownership and current value.
| Asset type | How it counts |
|---|---|
| Cash and brokerage accounts | Counted as liquid assets |
| Retirement accounts | 70%, or 80% at 59.5 and older |
| Revocable living trust assets | Count |
| Other trusts | Do not count |
| Business funds | Do not count |
| Gifts | Do not count |
| Unvested stock | Does not count |
| Cryptocurrency | Does not count |
The business-funds exclusion matters for founders. Money sitting in a company account is not yours for this purpose, even if you own the company outright. Moving it to a personal account shortly before applying creates a sourcing question. Expect an underwriter to ask where large recent deposits came from.
Concentrated stock positions deserve a hard look too. Counted value is the statement value, so a position that drops sharply before closing shrinks your ceiling.
Reserves, Closing Costs and the Things That Quietly Shrink Your Number
Four deductions come off your counted assets before the loan size is set. Most calculators miss at least two.
1. Down payment. Whatever you put into the purchase leaves the pool.
2. Closing costs. The assets-only test adds these to the loan amount.
3. Reserves. Through select programs, reserves run 3 months on loans to $500,000, 6 months to $1,500,000 and 9 months above. Add 2 months per additional financed property, up to a 12-month maximum. First-time investors typically need 12 months.
4. Losses on other residential property. Sixty months of any net loss is held back on the assets-only path.
Cash-out proceeds cannot satisfy reserves on loans above the super-jumbo line, which sits at $3,500,000 on a primary residence and $3,000,000 on a second home or investment property. Those loans also carry tighter overlays, including a 700 credit floor and 48-month seasoning on any credit event. Exact terms depend on lender and investor guidelines, credit profile, reserves, and property review.
A common mistake is counting the same dollars twice. A balance used for the down payment cannot also be the asset base for the loan. Another is forgetting that a retirement account counts at a haircut, not face value.
Which Investors Should Even Consider This?
For the investor buying a rental, assets-only is usually the wrong tool. A DSCR loan is reviewed primarily on property-level rental income covering the payment, subject to lender guidelines, so your liquid assets mostly serve as reserves. Tying up a large balance to prove a loan size that the rent could support anyway ties up capital for no reason.
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.
The picture flips in a few situations:
- Thin rent, large balance sheet. A property whose rent barely covers the payment may fit better under a program that looks at your assets.
- A second home you will use yourself. DSCR is built for rentals, so a vacation property for personal use needs another path.
- Primary residence purchase with irregular income. A founder with a recent sale or a retiree with a big portfolio fits the profile.
Federal ability-to-repay rules let a lender base its repayment decision on income, on assets other than the home being financed, or on both, per CFPB Regulation Z §1026.43 and its eCFR text. That is why an asset-based path exists for borrowers whose reportable income understates their means.
If you are weighing the alternatives for an investment property, the complete DSCR loans guide walks through how property-rent-based lender review works. Programs below 1.00 coverage are available through select lenders, but leverage and terms adjust to match.
Three Borrower Profiles, Three Different Answers
The retiree with a large portfolio. No salary, mostly brokerage and retirement accounts. The retirement balance counts at 70%, or 80% past 59.5. Asset allowance on the 84-month divisor gives modest income, so assets-only is often the stronger path. The loan is capped by counted assets, not by leverage, unless the property is very large.
The founder after a business sale. The proceeds are personal cash now, but recent large deposits will draw questions. Documenting the source cleanly matters more than the balance itself. Once sourced, assets-only can support a large loan, and leverage on a primary residence purchase typically steps down as the loan passes $2,000,000.
The investor with concentrated holdings. Heavy in one stock, some of it unvested. Unvested shares do not count at all. Vested shares count at statement value. The leverage ladder for investment property is lower, so the leverage ceiling often binds before the asset ceiling does.
Working Backward: How Many Assets Do You Need?
Start with the target loan and work toward the assets. This is the fastest sanity check.
1. Pick the target loan size.
2. Add estimated closing costs.
3. Add sixty months of any net loss on other residential property.
4. Add reserves for the loan size.
5. Convert retirement accounts at 70% (or 80% at 59.5 and older).
The result is your required counted assets for assets-only. For asset allowance, reverse the divisor: your needed monthly income times 36, 60 or 84 gives the liquid assets required.
Then check the leverage table. If the loan divided by the price exceeds the cap for that size, the loan shrinks no matter how large the balance is.
Maximum Loan Versus a Comfortable Loan
The most you can borrow is rarely the most you should borrow. An assets-only loan locks up a large balance until you sell or refinance. That leaves less cushion for a vacancy, a repair or a market drop.
Interest-only structures can lower the monthly burden. Through select programs, they run to 85% LTV with a 700 credit floor on one program, and 60% on a bank portfolio program. The interest-only ceiling never raises a cash-out limit. Leverage, reserves, and pricing vary by lender and program; the final terms follow the full file review.
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.
Key Terms Defined
Assets-only: A path that qualifies you when liquid assets equal the loan plus closing costs and held-back property losses, with no debt-to-income test.
Asset allowance: A path that divides liquid assets by 36, 60 or 84 months to create qualifying monthly income.
Haircut: The percentage of an asset that is discounted when the lender counts it, such as retirement accounts at 70%.
Divisor: The number of months used to spread your assets into monthly income. A shorter divisor means more income.
Seasoning: The time that must pass after a credit event or deposit before the lender treats it as settled.
Frequently Asked Questions
Is there a dollar cap on an assets-only mortgage?
Loan sizes run from $300,000 to $30,000,000 across two wholesale programs, one carrying files to $6,000,000 and a bank portfolio program above that. The practical limit is lower for most borrowers. Your counted assets and the leverage ladder set it, and loans above $4,000,000 are reviewed case by case.
Do retirement accounts count?
Yes, at a haircut. Through select programs, they count at 70% of the balance, rising to 80% at age 59.5 and older. Business funds, gifts, most trusts, unvested stock and cryptocurrency do not count.
Can I use an assets-only loan on an investment property?
Leverage ladders exist for investment property, but the asset allowance path is for primary and second homes only. Rental buyers typically do better with a DSCR loan, where the property’s rent drives lender review and assets serve as reserves.
Does this mean no personal income documentation?
No personal income documentation is needed on the assets-only path, because qualification runs on liquid assets. The assets themselves must still be verified with consecutive statements, and credit, the property and reserves are all reviewed.
Which states is this available in?
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.
If you are financing a high-balance property and want to see how the numbers work on your assets, deposits or the property’s rent, Lendmire can help you compare options based on your liquidity, credit profile, leverage and goals. Phone 828-256-2183 or request a quote.
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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References
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 Assets-Only Income Is Calculated for a Jumbo Mortgage · How Much Can Influencers Borrow With a Bank Statement Loan? · How Much Down Payment Does a Super Jumbo Self-Employed Mortgage Need?
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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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.