The Quick Read: You qualify by showing that your documented liquid assets, after the down payment and closing costs come out, are large enough to carry the loan under one of two asset tests, and then by clearing the credit, reserve and property rules that apply at your loan size, subject to lender guidelines. Lendmire arranges these files through select wholesale programs, and every figure below is a typical ceiling that stays subject to full underwriting.
- Assets-only path: no debt-to-income test when U.S. liquid assets equal the loan amount, plus closing costs, plus sixty months of any net loss on other residential property.
- Asset allowance path: liquid assets divided by 36, 60 or 84 months become qualifying income, on primary and second homes only, at 80% LTV or lower.
- What counts: retirement accounts count at 70% (80% at age 59.5 or older). Business funds, gifts, cryptocurrency and unvested stock never count.
- Credit and reserves: a 660 credit floor on the portfolio program, 700 above the super-jumbo line, and typically 3, 6 or 9 months of reserves by loan size.
- Size review: every loan above $4,000,000 is reviewed case by case before submission.
What Is an Asset Qualifier Jumbo Loan?
An asset qualifier jumbo loan is a large mortgage approved mainly on what the borrower owns instead of what the borrower’s traditional personal-income documentation shows. It suits people with real wealth and thin or uneven paper income. Think founders between ventures, physicians in transition, retirees living off portfolios, and entrepreneurs whose write-offs shrink taxable income.
Two methods sit under that label, and borrowers often blur them. The first is the assets-only path. It tests your liquid assets directly against the loan. The second is the asset allowance, often called asset depletion. It divides your liquid assets by a set number of months to create monthly qualifying income, and the borrower does not have to sell anything.
Both methods are non-agency, non-QM structures. Across Lendmire’s wholesale network, each one lives inside a larger program with its own credit, reserve and property rules. Passing the asset math is only the first gate.
On scope, 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. An investor reading from another state should treat this article as general education, not as availability.
How Does Underwriting Treat Your Assets, Step by Step?
Underwriting works through six steps. It starts with an inventory of what you own and ends with verification of what you can prove. Knowing the order helps you spot where a file will pinch before the lender does.
1. Inventory. The underwriter lists cash, brokerage accounts, retirement funds and any trust-held assets. Ownership has to match the borrower or an eligible revocable living trust.
2. Eligibility and haircuts. Cash and near-cash generally count at full value. Retirement balances are discounted to 70%, or 80% once the borrower is 59.5 or older. Business funds, gifts, other trusts, unvested stock and cryptocurrency drop out entirely.
3. Net out the transaction. The down payment, closing costs and required reserves come out first. If a third of a portfolio goes into the down payment, only the remaining two-thirds is on the table.
4. Run the asset test. On the assets-only path, the countable total must cover the loan, closing costs and sixty months of any net loss on other residential property. On the asset allowance, the total is divided by 36, 60 or 84 months to produce income.
5. Layer on the file tests. Credit score, housing history, reserves, property type and, where the path uses one, debt-to-income all apply on top.
6. Document. Expect recent account statements to confirm ownership and source, plus a credit review, an appraisal and a title or entity review. Large unexplained deposits slow files down, and moving money between accounts just before applying makes the trail harder to read.
This sequence is why the headline portfolio number is rarely the number that matters. The usable number is what remains after step three.
Which Assets Count, and Which Never Do
Liquid, U.S.-based, clearly owned assets count most. Anything restricted, borrowed, gifted or tied to a business counts for little or nothing. The table shows typical treatment through select wholesale programs, subject to full underwriting.
| Asset | Typical treatment | What to watch |
|---|---|---|
| Cash and bank balances | Generally full value | Source large deposits |
| Brokerage accounts | Generally counted, with haircuts for volatile holdings | Concentrated stock positions |
| Retirement accounts | 70% (80% at 59.5+) | Access and ownership |
| Revocable living trust assets | Count | Other trusts do not |
| Business funds | Never count | Move to personal only with documentation |
| Gifts, unvested stock, crypto | Never count | Plan around them early |
One practical point: a revocable living trust is the only trust structure that typically passes. If your liquidity sits in an irrevocable trust or an LLC, the asset test may see very little of it.
Why the Divisor Changes Everything
On the asset allowance path, the divisor you land in matters more than almost any other variable. Three tiers exist across the network. A 36-month divisor applies when the asset income is supplemental and the file’s debt-to-income ratio before the asset income is at or below 60%. A 60-month divisor applies when the asset income is supplemental and that pre-asset ratio is above 60%. An 84-month divisor applies when the asset math has to stand alone, and on any loan above $3,500,000.
The 60% figure only picks the divisor. It is not a debt-to-income ceiling. Once the asset income is counted, the qualifying ratio still has to fit within the 50% ceiling.
The same balance produces more than twice as much monthly income at 36 months as at 84. That gap is why a file that fails on a standalone basis can pass once even modest documented income, such as a pension or rental income, sits beside the assets.
The asset allowance applies to primary and second homes only, at a maximum of 80% LTV. For larger loans, remember the review rule: above $4,000,000, the file is reviewed case by case before submission. Final terms depend on lender guidelines, property type, leverage, and the borrower’s complete credit picture.
If you want to see how asset depletion pairs with deposit-based income on very large balances, Lendmire’s piece How to Qualify a Jumbo Bank Statement Loan on Asset Depletion covers that blend.
Do You Qualify? A Practical Self-Test
Run through these questions before anyone pulls your credit. Each one maps to a real decline reason.
- Is the money yours and liquid? Business funds, gifts and crypto do not count, so strip them out first.
- What is left after the down payment, closing costs and reserves? That remainder is your real number.
- Does it clear the assets-only test? Compare it against the loan amount plus closing costs plus sixty months of any net loss on other residential property.
- If not, does the asset allowance work? Check the divisor tier against your debt-to-income picture.
- Is your credit above the floor for your loan size? The floor is 660 on the portfolio program and 700 above the super-jumbo line.
- Is the property eligible? Occupancy, unit count and location all matter.
If the answer to the second question is a surprise, that is useful. It is far cheaper to learn it from a worksheet than from a conditional approval.
Leverage, Credit and Reserves by Loan Size
Leverage steps down as the loan grows. On a primary-residence purchase, the ceilings through select wholesale programs typically run 90% to $1,000,000, 85% to $2,000,000, 80% to $3,000,000, and 75% to $4,000,000 for the top credit tier. Above $4,000,000, leverage is reviewed case by case. The bank portfolio program’s own ladder runs 65% to $5,000,000, 60% to $10,000,000 and 55% to $30,000,000, all on review. Second homes and investment property take their own ladders, which typically sit lower than the primary-residence figures.
Remember the asset allowance cap. Even where the ladder allows more, an asset allowance file tops out at 80% LTV. These specifics are subject to lender guidelines and a full review of property, leverage, and credit.
| Loan size | Primary-residence purchase LTV ceiling |
|---|---|
| To $1,000,000 | 90% |
| To $2,000,000 | 85% |
| To $3,000,000 | 80% |
| To $4,000,000 | 75% (top credit tier) |
| Above $4,000,000 | Case by case, on review |
Credit for the top leverage in each band typically rises with size, though the program floors are the figures that matter for eligibility. The super-jumbo line sits at $3,500,000 for a primary residence and $3,000,000 for a second home or investment property. Debt-to-income can run to 50% where the path uses it.
Reserves typically run 3 months 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 typically need 12 months. Above the super-jumbo line, cash-out proceeds cannot satisfy reserves.
Treat the asset test and the reserve test as separate gates. Lenders generally do not let one balance do several jobs, so confirm with the program how they stack on your file.
Asset Qualifier vs. Other Paths
Choose the path by what is strongest in your file. A strong balance sheet points one way, steady deposits another, and a rental’s cash flow a third.
| Path | Reviewed on | Best for | Trade-off |
|---|---|---|---|
| Assets-only | Liquid assets vs. loan | Asset-rich, low documented income | Large liquidity needed |
| Asset allowance | Assets divided by 36, 60 or 84 months | Borrowers with some other income | Primary and second homes only |
| Bank statement | 12 or 24 months of deposits | Self-employed owners | Expense ratio trims income |
| DSCR | Property rent vs. payment | Rental purchases | Investment property only |
| Conventional jumbo | Traditional personal-income documentation and W-2s | Strong, documented earners | Returns must show the income |
Retirees often land on the asset allowance because their income is portfolio-based. Lendmire’s guide How to Qualify for a Jumbo Loan on Asset Depletion as a Retiree walks through that profile.
If a conventional jumbo works on your traditional personal-income documentation, it is often the cheaper route, because the asset programs trade pricing and eligibility flexibility for documentation flexibility. The asset path earns its place when your returns understate what you can truly carry.
Where the General Rule Breaks
Several edge cases change the answer. Most of them involve occupancy, ownership or timing.
Investment property. The asset allowance is limited to primary and second homes. An investor buying a rental usually moves to a DSCR structure instead, which qualifies primarily on property-level rental income covering the payment, subject to lender guidelines. 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. Lendmire’s complete DSCR loans guide covers that route.
The regulatory frame. For owner-occupied loans, federal ability-to-repay rules let a lender consider income, assets, or both. The CFPB’s ATR/QM compliance guide says the lender may use its own underwriting method, so long as it considers the eight required factors and verifies the inputs with reliable third-party records. NCUA exam guidance likewise expects underwriting standards to cover all eight factors. The rule sets no divisor and no haircut, so those are program choices. How a program treats debt-to-income is also a program guideline: assets-only files run no debt-to-income test, while the asset allowance path does.
Super-jumbo overlays. Above $3,500,000 on a primary residence, and above $3,000,000 on a second home or investment property, extra rules apply. They include a 700 credit floor, a 0x30x24 housing history, and 48 months of seasoning after any credit event. Borrowers must be U.S. citizens or permanent residents, with no non-occupant co-borrowers. Rural property is out, and acreage is capped at ten acres.
Retirement under 59.5. A balance counts at 70% instead of 80%. That ten-point gap can decide a close file.
Business owners. A large business valuation contributes nothing to the asset test. Only personal liquid assets count. A founder with most of their wealth inside a company may do better on deposits than on assets.
Purchase, Rate-and-Term, and Cash-Out
Purchase and rate-and-term refinances typically share the same ceilings on a primary residence, up to the $3,500,000 to $4,000,000 band, where rate-and-term steps down to 70%. Cash-out sits lower. Through select wholesale programs, primary-residence cash-out ceilings typically run 80% to $1,500,000, 75% to $2,000,000, 70% to $3,000,000, and 65% to $4,000,000. Above $4,000,000, cash-out is reviewed case by case. Cash-out proceeds are unlimited at or below 60% LTV, with a $1,500,000 cash-in-hand cap above that on the portfolio program. Terms depend on the lender’s guidelines, the property type, the leverage, and a full review of the credit profile.
Whether a given asset path allows cash-out is a program-by-program question, so confirm it before assuming it.
What If You Fall Short?
A shortfall is usually fixable, but each fix has a cost. These are the options a lender would review.
- Shrink the loan. A smaller balance lowers the assets-only requirement. The tradeoff is a larger down payment, which also removes cash from the pool.
- Add documented income. A pension, Social Security or rental income can move you into a shorter divisor tier.
- Switch paths. A bank statement program may fit better if your deposits are strong.
- Clean up the asset trail. Document large deposits, and avoid moving money between accounts or changing ownership right before applying.
- Wait out a credit event. The super-jumbo overlays want 48 months of seasoning.
If you liquidate a retirement account to help, 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.
Why Files Stall
Most stalled files trace back to a short list of mistakes:
- Counting business funds, gifts or crypto that never count.
- Counting retirement balances at full value instead of 70% or 80%.
- Forgetting to subtract the down payment and closing costs first.
- Using one balance for the asset test, reserves and closing funds at once.
- Holding assets in an entity or trust type the program does not accept.
- Missing a credit or housing-history overlay above the super-jumbo line.
Key Terms Defined
Asset allowance: a method that divides eligible liquid assets by 36, 60 or 84 months to create monthly qualifying income.
Assets-only: a path that tests liquid assets directly against the loan amount, closing costs and certain net losses, with no debt-to-income test.
Divisor: the number of months used to turn an asset balance into monthly income.
Reserves: liquid funds kept after closing, typically measured in months of the housing payment.
Seasoning: the length of time funds or a credit event have been in place and documented.
Super-jumbo line: the loan size, $3,500,000 on a primary residence and $3,000,000 on a second home or investment property, above which extra overlays apply.
Where to Start
If you are financing a high-balance property on business or personal bank statements, or on a strong balance sheet, and want to see how the numbers work, Lendmire can help you compare super jumbo options based on your assets, deposits, the property, credit profile, leverage and your goals. Lendmire is the broker that shops the wholesale network. It is never the lender, and nothing here is a commitment to lend.
Frequently Asked Questions
Do I have to sell my investments to qualify?
No. The assets are counted, not spent. On the asset allowance, balances are divided by a set number of months to create notional income. On the assets-only path, they are tested against the loan. Either way, the lender still verifies ownership and source.
Can I use my retirement account?
Yes, in part. Through select wholesale programs, retirement balances typically count at 70%, or 80% once the borrower is 59.5 or older. Access and ownership still have to be documented, and the final treatment is subject to full underwriting.
Does this work for a rental property?
Not on the asset allowance, which covers primary and second homes only. An investor buying a rental typically looks at a DSCR or bank statement structure instead. Investment-property leverage runs on its own ladder, which typically sits below primary-residence ceilings at most loan sizes.
Can gift funds or crypto count toward the asset test?
No. Business funds, gifts, unvested stock and cryptocurrency never count toward the asset test, and trusts other than a revocable living trust do not count either. Plan your qualifying balance without them.
Is a bigger down payment always better?
Not for the asset math. A larger down payment lowers the LTV, but it also removes cash from the pool the underwriter can count. The right balance depends on which path you use and how close the file runs to the line.
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 DSCR-focused mortgage brokerage, NMLS# 2371349, placing investor loans across 41 markets, including Washington, D.C. DSCR eligibility is generally reviewed by the lender around a property’s rental income rather than personal income documentation, which fits LLC-held rentals, self-employed investors, and portfolios scaling past conventional financed-property limits. Scotsman Guide named Lendmire a Top Mortgage Workplace in both 2025 and 2026.
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References
1. CFPB ATR/QM Small Entity Compliance Guide
2. NCUA Supervisory Letter 14-01
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 Super Jumbo Bank Statement Loan in Michigan · How to Document an Asset Qualifier Mortgage · How Asset Qualifier Mortgage Loan Limits Work
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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- 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.