The Quick Read: Usually 10% to 25% down on a primary-residence purchase up to $4,000,000, with the percentage rising as the loan grows, because the ladder steps from 90% to 75% LTV through select wholesale programs, subject to full underwriting. The file must also show liquid assets that cover the loan plus closing costs. Second homes and investment property run about five points lower on leverage. Everything above $4,000,000 is reviewed case by case before submission.
- A primary-residence purchase runs up to 90% LTV on loans to $1,000,000, which means 10% down at best.
- Leverage on a primary-residence purchase steps down to 85% to $2,000,000, 80% to $3,000,000 and 75% to $4,000,000 (the top band wants a 760 credit score).
- Above $4,000,000, a primary-residence purchase is reviewed case by case, and the first band runs 65% LTV on review, so plan on roughly 35% down.
- Assets-only means no income math at all. The proof is balance-sheet strength, not a debt-to-income ratio.
- Down payment cash, closing costs and reserves all come out of the same pile of assets, so a bigger down payment is not always better. The exact numbers vary by lender and program and follow a full review of property, leverage, and credit.
LTV, or loan-to-value, is the loan balance divided by the property’s value. A 90% LTV means 10% down. Every figure here is a ceiling through select wholesale programs, subject to full underwriting, and nothing here is a commitment to lend. Final terms depend on the lender’s guidelines, the property type, and the borrower’s complete credit picture.
What Counts as an Assets-Only Mortgage?
An assets-only mortgage is reviewed around what you own, not what you earn. The lender looks at liquid assets, meaning cash, brokerage accounts and similar funds you can reach, and ignores traditional personal-income documentation and pay stubs. This suits founders, retirees, physicians and investors whose taxable income looks small next to their net worth.
The label covers two different paths, and the down payment numbers differ between them. Across Lendmire’s wholesale network, the two look like this:
- Asset allowance. The lender divides your liquid assets by 36, 60 or 84 months and treats the result as monthly income. It is available on primary and second homes only, with a maximum of 80% LTV.
- Assets-only. There is no income calculation and no debt-to-income test. You qualify when your U.S. liquid assets equal the loan amount, plus closing costs, plus sixty months of any net loss on other residential property you own. Each figure is subject to lender guidelines and a complete review of property type, leverage, and credit.
Many borrowers hear these called asset depletion, asset qualifier or something similar. The names are used loosely, so ask which math a lender applies before you compare down payments.
A DSCR loan is a different product. It qualifies primarily on property-level rental income covering the payment, subject to lender guidelines, and it never looks at your balance sheet the same way. Keep the two sets of down payment figures apart.
How Much Down Payment Does the Ladder Require?
The down payment follows the loan size, because the maximum LTV falls as the balance rises. On a primary-residence purchase, the ladder looks like this through select wholesale programs, subject to full underwriting:
| Loan size | Max LTV (primary purchase) | Down payment |
|---|---|---|
| $300K to $1M | 90% | 10% |
| $1M to $2M | 85% | 15% |
| $2M to $3M | 80% | 20% |
| $3M to $4M | 75% | 25% |
| $4M to $5M | 65%, on review | 35% |
| $5M to $10M | 60%, on review | 40% |
| $10M to $30M | 55%, on review | 45% |
Credit requirements climb alongside size. The $300K to $1M band runs on a 680 credit score, the $1M to $1.5M band on 700, and most bands from $1.5M to $3.5M on 720. The $3.5M to $4M band wants 760. Leverage, reserves, and pricing vary by lender and program; the final terms follow the full file review.
Second homes and investment property run about five points lower at every size, so the down payment is about five points higher. A second home that would reach 85% LTV on a purchase under $1,000,000 lands near 15% down, and an investment purchase in that band sits near the same figure. Cash-out refinances run lower still, but that is a separate question. Terms vary by lender guidelines, property type, leverage, credit profile, and full file review.
Bigger balances also add overlays. Above $3,500,000 on a primary residence, and above $3,000,000 on a second home or investment property, the program asks for a 700 credit floor and a clean 0x30x24 housing history. It also requires 48 months of seasoning after any credit event, a U.S. citizen or permanent resident borrower, no rural property and no non-occupant co-borrowers. Cash-out proceeds cannot satisfy reserves at that size.
Why Does It Ask for More Than a Conventional Loan?
Because the lender is taking a risk it cannot price off a paycheck. NerdWallet’s down payment explainer lists a 3% minimum on conventional loans and 3.5% on FHA loans. Those programs lean on mortgage insurance and standardized income files. Large, asset-qualified loans do not.
Leverage in the non-QM world sits well below that. Scotsman Guide, citing a data analysis, reports an average LTV of 75% for non-QM and QM borrowers in 2024, against 97% for government-loan borrowers. A 75% average means a typical down payment of about 25%. That lines up with the upper-middle rungs of the ladder above. Exact terms depend on the lender’s guidelines, property type, leverage, and a full review of the borrower’s file.
An assets-only mortgage is not a route to a small down payment. It is a route to qualifying when your income documents understate your wealth.
How Does Your Down Payment Feed the Qualifying Income?
On the asset allowance path, the down payment comes out of the pool before the lender divides anything. A larger down payment gives you a smaller loan, which helps. It also leaves fewer assets to divide, which lowers your qualifying income.
The divisor matters just as much. The 36-month version produces the highest monthly figure. The 60-month version produces 60% of it, and the 84-month version only about 43% of it, because 36 divided by 84 is roughly 0.43. The 84-month divisor applies to standalone files and to any loan above $3,500,000. Supplemental files use 36 months when debt-to-income is at or below 60% and 60 months when it is above.
The idea comes from bank regulation. The OCC’s guidance on asset dissipation underwriting describes it as using an applicant’s assets to calculate a hypothetical cash annuity stream, which is added to other income when evaluating ability to pay. The method is often used for high-net-worth applicants with significant liquid assets but insufficient cash flow under standard income criteria. Nothing is sold and nothing is pledged. The math is a qualifying convention.
Federal rules also allow it. The CFPB’s ability-to-repay rule says a creditor may base its repayment-ability determination on income, on assets other than the dwelling securing the loan, or both. That rule governs how repayment is judged. It does not set a down payment, which is why each program’s LTV ceiling decides the number.
The pure assets-only path skips the divisor entirely. There the question is simpler: do your liquid assets cover the loan plus costs?
Worked Example: One Buyer, Three Down Payments
Run the numbers on a buyer with a fixed pool of qualifying liquid assets who wants a $1,500,000 primary residence. This is a modeled scenario, not a market statement. At that price the ceiling is 85% LTV on a purchase, so 15% down is the floor. Here is how the choices compare. Every figure here varies by lender and program, and guidelines, property type, leverage, and credit profile all apply.
| Down payment | LTV | What improves | What tightens |
|---|---|---|---|
| 15% | 85% | Most cash stays in the pool | Largest loan to cover |
| 25% | 75% | Smaller loan to cover | Pool shrinks after the cash leaves |
| 35% | 65% | Smallest loan of the three | Lowest cushion for reserves and income |
On the assets-only path, a smaller loan lowers the liquidity needed to qualify, but the cash you spend on the down payment has to come from somewhere. Whether down payment cash counts inside the loan-plus-costs liquidity figure or sits on top of it is a file-level question for the lender’s review. Plan on the cautious reading, which means near the full purchase price in liquid assets.
On the asset allowance path, the trade is sharper. Every dollar added to the down payment removes a dollar from the pool being divided. Past a certain point, the extra cash lowers your qualifying income faster than it helps the loan size. The practical move is to start from the minimum down payment and add cash only if the file needs it.
The Total Cash Checklist
The down payment is only one draw on your assets. Add these up before you pick a number:
- Down payment. The percentage from the ladder for your loan size and occupancy.
- Closing costs. These come out of the same pool, and on the assets-only path they sit inside the liquidity test.
- Reserves. Programs in the network want 3 months of reserves on loans to $500,000, 6 months to $1,500,000 and 9 months above that. Each additional financed property adds 2 months, up to a 12-month maximum. First-time investors need 12 months.
- Qualifying pool. On the asset allowance path, what remains after the other three is what gets divided by 36, 60 or 84. Final terms depend on lender guidelines, property type, leverage, and the borrower’s complete credit picture.
Reserves are separate from the down payment. Cash spent on one cannot count twice. Above $3,500,000 on a primary residence, cash-out proceeds cannot satisfy reserves either.
Which Assets Count, and What Gets Left Out?
Cash and brokerage holdings count in full, subject to documentation. Retirement accounts count at 70% of their value, or 80% once the borrower is 59.5 or older. A revocable living trust works, so assets held there can count.
Several things never count:
- business funds
- gifts
- trusts other than a revocable living trust
- unvested stock
- cryptocurrency
Gifts matter most here. Many buyers assume family money can build the asset pool, and it cannot on these programs. The funds also have to be traceable on statements. Moving money between accounts right before you apply can create a paper trail the underwriter has to untangle.
Tax treatment varies; consult a qualified professional before selling any holding to raise cash.
How Do Property Type and Occupancy Change the Number?
The occupancy rule comes first. The asset allowance path covers primary and second homes only. Investment property usually moves to other qualification paths, which is the right pivot for most rental buyers.
Property type shifts the ceiling too. Warrantable condos run to 85% LTV and non-warrantable condos to 80%, subject to the loan-size ladder. Two- to four-unit properties run to 85%, while second homes are one-unit only. Rural property tops out at 80% on ten acres or less and never above $3,000,000. Texas 50(a)(6) home-equity loans take a 5-point LTV reduction and stop at $3,000,000 on the portfolio program. These specifics are subject to lender guidelines and a full review of property, leverage, and credit.
The program behind the loan matters as well. A portfolio non-QM program carries files up to $6,000,000. A bank portfolio program takes twelve-month-statement files up to $30,000,000 on its own ladder, which begins above $4,000,000 and overlaps the portfolio program to $6,000,000. Above $6,000,000 it stands alone. Credit floors are 660 on the portfolio program and 680 on the bank program, rising to 700 above the super-jumbo line. Debt-to-income runs up to 50%.
Broker view: across the wholesale network, files at this size rarely fail on the down payment percentage. They fail on documentation. A seasoned asset pool with clean statements and no stray transfers gets through review more smoothly than a bigger pool with three months of unexplained movement.
What If You Are Short on Cash or Buying a Rental?
You have a few paths, and each trades one constraint for another.
If your income is real but arrives through a business, a bank statement program may fit better. It is reviewed on 12 or 24 months of deposits after an expense ratio, and transfers from your own business into a personal account count in full. That path suits a self-employed borrower whose traditional personal-income documentation understates income.
If the purchase is a rental, a DSCR loan is reviewed primarily on property-level rental income covering the payment, subject to lender guidelines. Compare the two products side by side on cash needed, reserves and total cost. Down payment figures from one do not carry over to the other.
A smaller purchase also lowers every draw on your assets. Lendmire’s complete DSCR loans guide is a good starting point if you are weighing a rental purchase against a primary-residence one.
Common Mistakes
- Counting retirement accounts at full value. They count at 70%, or 80% at 59.5 and older.
- Forgetting closing costs. They come out of the same pool and sit inside the assets-only liquidity test.
- Treating gifts as assets. They never count toward the asset pool.
- Using business funds. Money in a business account does not count as personal liquid assets.
- Spending the cushion on down payment. A larger down payment lowers qualifying income on the asset allowance path.
- Assuming 90% LTV scales up. The 90% ceiling stops at $1,000,000. No loan above that size gets it.
- Ignoring the review rule. Every loan above $4,000,000 is reviewed case by case, so figures at that size are starting points. Terms depend on the lender’s guidelines, the property type, the leverage, and a full review of the credit profile.
Who Is This a Fit For?
It fits borrowers with large, documented, liquid assets and income that is lumpy, retired or hard to prove on paper. Founders between exits, retirees living off portfolios and professionals with uneven pay are typical examples. It fits less well for borrowers whose wealth sits in real estate equity, private business interests or crypto, because those assets do not count.
Borrowers who want the smallest possible down payment should look at agency or government programs first. Those come with their own rules, and this path will not beat their minimums.
Key Terms Defined
LTV (loan-to-value): the loan balance divided by the property’s value; a 75% LTV means a 25% down payment. Every figure here varies by lender and program — guidelines, property type, leverage, and credit profile all apply.
Liquid assets: cash and holdings you can reach and document, such as brokerage accounts, excluding items like business funds and crypto.
Asset allowance: a qualifying method that divides liquid assets by 36, 60 or 84 months to produce monthly income.
Assets-only: a qualifying method with no income calculation, where liquid assets must cover the loan plus closing costs plus sixty months of any net loss on other residential property.
Reserves: funds left after closing, counted in months of payments, that the lender wants to see as a cushion.
Seasoning: the time funds have been in your account, which shows where they came from.
Next Steps
If you are buying a primary residence or second home on the strength of your liquid assets, or financing a high-balance property on business or personal bank statements, and want to see how the numbers work, Lendmire can help you compare super jumbo options based on your holdings, the property, credit profile, leverage and your goals. Start by listing your liquid assets by type, then price the down payment, closing costs and reserves against that total.
Frequently Asked Questions
What is the minimum down payment on an assets-only mortgage?
The lowest figure is 10% on a primary-residence purchase up to $1,000,000, through select wholesale programs, subject to full underwriting. The percentage rises with loan size, and second homes and investment property run lower on LTV. Above $4,000,000, everything is reviewed case by case.
Can I use gift funds or business money for the down payment?
No for the asset pool, because gifts and business funds never count as qualifying assets in these programs. Your own documented liquid funds are what the lender wants to see. A lender may treat the source of down payment cash separately, so ask early.
Does putting more down help me qualify?
On the assets-only path, a bigger down payment shrinks the loan you must cover with liquidity. On the asset allowance path, it also shrinks the pool you divide, so qualifying income falls. Start at the minimum and add cash only if the file needs it.
Can I use retirement accounts?
Yes, in part. Retirement accounts count at 70% of their value, or 80% once the borrower reaches 59.5. Retirement funds do not need to be sold; they count as a qualifying asset.
Is Lendmire available in my state?
Lendmire’s consumer mortgage business 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. This article is national in scope and does not describe availability in any one state.
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), a non-QM mortgage broker serving investors in 41 markets including Washington, D.C., helps structure DSCR scenarios commonly evaluated around a property’s rental income rather than personal income paperwork, subject to lender guidelines. A Scotsman Guide Top Mortgage Workplace in 2025 and 2026, Lendmire places loans through wholesale investor lenders and is not a direct lender.
Investors who want the broader program framework can review how DSCR loans work.
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References
1. NerdWallet, how much down payment for a house
2. Scotsman Guide, a decade later, non-QM loans prove a stable, crucial option
3. OCC Bulletin 2019-36, asset dissipation underwriting
4. CFPB, Regulation Z §1026.43 ability-to-repay
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 P&L Only Jumbo Loan Works · How Much Down Payment Does an Asset Qualifier Mortgage Need? · How Much Can Commission-Only Earners Borrow With a Bank Statement Loan?
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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Required disclosures. Lendmire (NMLS# 2371349) operates as a licensed mortgage broker, not a direct lender or depository. The discussion in this article is general in nature and should not be relied upon as financial, legal, or tax advice — every investment scenario is unique and should be reviewed by a qualified professional. Any loan inquiry is subject to lender underwriting, and this article is not a commitment to lend or a guarantee of approval. Mortgage rates, loan terms, and program guidelines vary by borrower, property, and state, and may change without notice. Equal Housing Opportunity. Verify licensure at NMLS Consumer Access.