The Quick Read: In the true assets-only path, no income is calculated at all. Through select wholesale programs, subject to full underwriting, the lender checks that your verified U.S. liquid assets equal the loan amount plus closing costs plus sixty months of any net loss on other residential property, and no debt-to-income test runs. A close cousin, the asset allowance, does turn assets into imputed monthly income by dividing them over 36, 60 or 84 months.
- Assets-only needs liquid assets that cover the whole loan plus costs. The asset allowance needs a pool large enough to produce income after you subtract your down payment, closing costs and reserves.
- Cash counts in full. Retirement accounts count at 70% of balance, or 80% at age 59½ and older, through select programs.
- Both asset paths apply to primary and second homes only, with leverage capped at 80%. Investment property goes down a different road.
- Business funds, gifts, unvested stock and cryptocurrency never count toward the pool.
- Above $4,000,000, every file is reviewed case by case before submission, so treat any figure at that size as a starting point.
What “Assets-Only” Really Means
Most people use the phrase for two different things. The first is a true assets-only loan. The second is asset depletion, which the network calls an asset allowance. The names sound alike, but the math is not.
A true assets-only loan asks one question. Do you hold enough liquid money to cover the loan, the closing costs, and a buffer for any losing rental property you own? If yes, the lender does not build an income figure and does not run debt-to-income at all.
An asset allowance does build an income figure. The lender takes your eligible assets, subtracts what you will spend at closing, and spreads the remainder over a set number of months. That monthly number then stands in for the paycheck or the bank-statement deposits you do not have.
Both paths suit a particular borrower. Think of a founder after a business sale, a retiree with a large brokerage account, or a physician whose income lives inside a practice. Their traditional personal-income documentation understates their wealth, and their deposits may be lumpy or thin.
Neither path requires you to sell anything. The assets stay invested. The lender only models what they could support.
Key Terms Defined
Assets-only: A path where verified liquid assets must cover the loan plus costs, with no income calculation and no debt-to-income test.
Asset allowance: A path that divides eligible liquid assets by a set number of months to create imputed monthly income.
Divisor: The number of months you divide the pool by. A shorter divisor produces more monthly income from the same assets.
Liquid assets: Money you can reach without selling a building or a business, such as cash, brokerage holdings and eligible retirement balances.
Haircut: The discount a program applies to an asset because it could lose value or cost you tax to access.
Reserves: Money left in your accounts after closing, counted in months of the new payment. Programs through select wholesale lenders typically ask for 3 months up to $500,000, 6 months up to $1,500,000, and 9 months above that.
Debt-to-income (DTI): Your monthly debts divided by your monthly income. Bank-statement programs here typically allow up to 50%.
How Assets-Only Income Is Calculated, Step by Step
Underwriting follows the same order on almost every asset file. Skip a step or swap two of them, and the answer changes. The sequence below reflects how programs across the network, through select wholesale programs and subject to full underwriting, treat a typical file.
1. List the assets that qualify. Cash, brokerage accounts and eligible retirement accounts can count. Real estate equity does not. Each account needs custodian statements, and the underwriter checks that the money is yours and reachable.
2. Apply the haircut for each account type. Cash counts at 100%. Retirement accounts count at 70%, rising to 80% for borrowers aged 59½ or older.
3. Remove excluded money. Business funds, gifts, trusts other than a revocable living trust, unvested stock and cryptocurrency never count.
4. Subtract what is already spoken for. Down payment, closing costs and required reserves come out first. A dollar cannot serve as closing cash and as qualifying assets at once.
5. Run the program’s test. This is where the two paths split.
- On assets-only, the remaining liquid U.S. assets must equal the loan amount plus closing costs plus sixty months of any net loss on other residential property. Nothing is divided, and no DTI is calculated.
- On the asset allowance, the lender divides the remaining pool by 36, 60 or 84 months. That is your imputed monthly income.
6. Finish the file. Credit, housing history, appraisal, leverage and reserves are all still reviewed. Assets do not replace underwriting. They replace the income documents.
Notice step 4 comes before step 5. Subtract first, then divide. Dividing a gross pool and subtracting afterward overstates your income, which is a common error in online calculators.
Three Ways the Test Can Run
Which divisor applies depends on how much of the qualification the assets must carry. The table below lays out the three structures.
| Factor | Assets-only | Allowance, supplemental | Allowance, standalone |
|---|---|---|---|
| Income calculated? | No | Yes, added to other income | Yes, the only income |
| DTI test? | None | Yes | Yes |
| Divisor | None | 36 or 60 months | 84 months |
| Fits | Deep liquidity, no income story | Some income plus large assets | Little or no income |
| Main risk | Pool must cover entire loan | Weak documented income | Longest divisor, lowest income |
The supplemental version uses a 36-month or 60-month divisor, depending on how the program’s DTI test lands on your file. Standalone use takes the 84-month divisor, and so does any loan above $3,500,000. Leverage on the asset allowance is capped at 80% on primary and second homes, subject to full underwriting.
The divisor is the biggest lever on the file. Run one pool through 36 months and again through 84, and the 36-month result is more than twice as large. That is why the network’s supplemental path is useful when you already have documented income, and why the standalone version asks for far more money.
Which Assets Count, and How Much
Not every dollar you own is a qualifying dollar. Here is how the main account types typically sit through select wholesale programs, subject to full underwriting.
| Asset type | Typical treatment |
|---|---|
| Cash in U.S. depository accounts | Counts in full |
| Brokerage and investment accounts | Counts, subject to review |
| Retirement accounts | 70%, or 80% at 59½ and older |
| Revocable living trust assets | Counts with trust documentation |
| Business funds, gifts, crypto, unvested stock | Never counts |
Retirement accounts get the haircut because pulling money out early costs you. The IRS applies a 10% additional tax to most early distributions from traditional and Roth IRAs taken before age 59½, which is why programs discount retirement balances and why borrowers under that age sit in the lower tier. 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.
Trusts matter too. A revocable living trust works because you control it, so underwriters can treat the money as yours. Other trust structures do not count, even if you benefit from them.
One Pool of Money
The same dollars cannot do three jobs. A pool has to fund closing, hold reserves, and generate qualifying income or cover the loan. Most failed files trace back to counting the pool twice.
Run the numbers on a modeled pool of 100 units, not dollars. Say 60 units sit in cash and brokerage, and 40 sit in retirement accounts for a borrower under 59½.
- Cash and brokerage count in full, so 60 units.
- Retirement counts at 70%, so 28 units.
- Total usable pool before costs: 88 units.
- Down payment, closing costs and reserves take 30 units. That leaves 58.
Now divide. At 84 months, 58 units produce about 0.69 units of monthly income. At 36 months, the same 58 units produce about 1.61. The second figure is roughly 2.3 times the first, from identical money.
Now picture the same borrower choosing assets-only on a smaller loan. No division happens. The question is simply whether the remaining liquid assets cover the loan plus costs. In that case the decision is binary, and a few extra units either way can tip it.
This is a modeled example, not a program quote. Every real file turns on the specific account mix, the loan size and the lender’s review.
Where the General Rule Breaks
The steps above hold for most files. These edge cases are where they stop working.
Investment property. Both asset paths apply to primary and second homes only. A rental purchase does not qualify through them. If you are buying a rental, you are looking at a DSCR loan or a bank-statement loan instead.
Business money in your own name. A transfer from your business into your personal account counts at 100% when it appears as a deposit on a bank-statement file. Funds still sitting inside the business never count toward the asset pool.
Large recent deposits. Money that just landed in an account needs a documented source. A gift never counts, even when the paperwork is clean.
Unvested or restricted holdings. Unvested stock does not count, because you cannot reach it. The same goes for cryptocurrency.
Other property that loses money. True assets-only adds sixty months of any net loss on your other residential holdings to the amount you must show. A portfolio of underwater rentals raises the bar sharply.
Loans above $3,500,000. The asset allowance moves to the 84-month divisor on any loan above that size. Super-jumbo overlays also apply, including a 700 credit floor and U.S. citizenship or permanent residency, and cash-out proceeds cannot satisfy reserves. Above $4,000,000, everything is reviewed case by case before submission.
Credit. The network’s portfolio program typically sets a 660 credit floor, rising to 700 above the super-jumbo line. A large pool does not offset a thin credit file.
Assets, Statements, or Property Income?
Asset paths are one of three ways to qualify a high-balance file. Choose by what you can show best.
If your business deposits are strong, a bank-statement loan typically divides 12 or 24 months of eligible deposits after an expense ratio. If your liquidity is large but your deposits are lumpy, the asset paths fit better. Lendmire’s piece Bank Statement Loan vs Assets-Only Mortgage covers that tradeoff in detail.
If the property is a rental, the picture changes. 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 DSCR loan is reviewed primarily on property-level rental income covering the payment, subject to lender guidelines, so your personal assets matter far less. Programs below a 1.00 coverage ratio exist through select lenders in the network, but leverage and terms adjust. The complete DSCR loans guide walks through that qualification model.
Here is the decision in practice. Strong rent against the price points to DSCR. A thin-rent trophy home or a primary residence, paired with deep liquidity, points to an asset path. A strong monthly deposit history points to bank statements.
Retirees sometimes ask whether pension or Social Security income can sit beside the asset pool. Lendmire’s article Does Pension Income Count Alongside Depleted Assets on a Mortgage? answers that case.
Why a Big Portfolio Still Fails
A large balance does not mean approval. These are the most common reasons a strong-looking file stalls.
- Counting equity. Home equity and business value are not liquid assets, so they never enter the pool.
- Double-counting. The same cash cannot be down payment, reserves and income.
- Wrong account mix. Wealth held mostly in retirement accounts shrinks after the haircut, and wealth held in a business never counts at all.
- Thin credit or housing history. Super-jumbo files typically require a clean housing record, and a credit event needs 48 months of seasoning.
- Over-leverage. Easy-approval investor products have led some borrowers to overreach, and Business Insider, via Yahoo Finance, advises stress-testing with conservative assumptions. The same logic applies to a jumbo: model the payment against the lowest your assets could fall, not the highest.
Liquidity is also spent twice in a practical sense. If a business sale, a capital call or a 1031 exchange is coming, plan the order. Cash you commit to the down payment shrinks the pool that supports income.
The Federal Rule Behind It
There is no federal formula for turning assets into income. The ability-to-repay provision in Regulation Z, section 1026.43 requires a lender to make a reasonable, good-faith determination that a consumer can repay. It lists current or reasonably expected income or assets, other than the value of the home securing the loan, among the factors. It also requires verification with third-party records and consideration of DTI or residual income, without fixing a threshold.
That is why divisors and haircuts are program choices, not national standards. Each program decides how to convert assets, and the lender documents the result.
Frequently Asked Questions
Can I qualify with no income at all?
On a true assets-only file, yes, because no income is calculated and no DTI test runs. You still need verified U.S. liquid assets equal to the loan amount, closing costs and sixty months of any net loss on other residential property, through select wholesale programs and subject to full underwriting. Credit, housing history and the appraisal are still reviewed.
Do I have to sell my investments?
No. The assets stay where they are. The lender uses them to model repayment ability, and you keep full ownership. What you do need is documentation that the money is yours and reachable, and any funds you spend on the down payment come out of the qualifying pool.
How do retirement accounts count?
Typically at 70% of the balance, rising to 80% for borrowers aged 59½ or older, through select programs. The discount reflects tax and early-withdrawal cost. Borrowers under that age should expect the lower tier, and the exact treatment is set by each program.
How much in assets is enough?
It depends on the path. Assets-only needs liquid assets covering the loan plus costs plus the loss buffer. The asset allowance needs a pool that produces enough monthly income after subtraction and division. Lendmire runs both versions against your file, since the answer shifts with account mix, loan size and divisor.
Can I use these paths to buy a rental?
Not through the asset paths, which apply to primary and second homes only. A rental purchase typically moves to a DSCR loan, which qualifies primarily on property-level rental income covering the payment. Bank-statement loans are the other option when your deposits tell the income story.
Next Step
If you are 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 bank statement loan options based on your deposits, the property, credit profile, leverage, and your goals. Reach the team at 828-256-2183. Leverage and eligibility are subject to lender guidelines, and nothing here is a commitment to lend.
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 investor financing, arranging DSCR loans in 40 states plus Washington, D.C. — 41 markets total. Qualification is based on the property’s income rather than personal income documentation, subject to lender guidelines, making it a fit for LLC-held rentals and scaling portfolios. Scotsman Guide named Lendmire a Top Mortgage Workplace in both 2025 and 2026.
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References
1. IRS Topic 557, additional tax on early distributions
2. Business Insider, via Yahoo Finance,
3. CFPB, Regulation Z section 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 to Get a Super Jumbo Loan With No Current Income · How Influencers Qualify for a Jumbo Mortgage With Bank Statements · How Commission-Only Earners Qualify for a Jumbo Mortgage With Bank Statements
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.