The Quick Read: The asset qualifier path covers the entire loan with eligible assets and documents no employment or income. The asset depletion path divides usable assets by 60 months to create a qualifying income, then runs that income through a debt-to-income test. For a cash-out refinance, the depletion path publishes clear leverage limits, while qualifier-path cash-out terms are set by the lender.
- A borrower is reviewed on one path at a time, never a blend of the two.
- Qualifier path: eligible assets must equal or exceed the whole loan, subject to underwriting.
- Depletion path: cash-out tops out at 60% loan-to-value (LTV) on a principal residence, second home or investment property.
- Assets are documented on both paths. Only the income documentation goes away on the qualifier path.
- If the rental’s rent covers its payment, a DSCR loan may be simpler than either path.
Here is the honest answer on who each option is for. The asset qualifier path suits someone whose balances are large enough to cover the loan outright. Think of a retiree, a business seller or an inheritance recipient. The asset depletion path suits someone whose assets are large but not large enough to cover the loan. Those assets get turned into income, and the income carries the payment.
Both paths are consumer-purpose programs, placed through select lenders in Lendmire’s wholesale network and subject to underwriting. The figures below are ceilings and floors, not offers.
Side-by-Side
The table shows how the two paths differ. The Qualifier column reflects program parameters across the network. The Depletion column does too.
| Factor | Asset Qualifier | Asset Depletion |
|---|---|---|
| Review basis | Assets cover entire loan | Assets ÷ 60 months = income |
| Income documented | None | Derived income, tested on DTI |
| Loan amounts | Up to $4,000,000 | $125,000 to $3,500,000 |
| Cash-out leverage | Set by lender, not published | 60% LTV |
| Refinance leverage (other) | Up to 75% LTV | Up to 80% (primary/second), 65% (investment) |
| Property types | Primary and second homes | Primary, second home, investment |
| Seasoning | 60 days, two months of statements | Statement age requirements vary by file and lender |
| Reserves | None at or below 75% LTV | No published reserve months |
| Credit | 600 minimum | Lender’s matrix |
The depletion path’s 65% and 60% investment figures apply to investment property. The 80% figure applies to a principal residence or second home on a purchase or rate-and-term refinance. Keep those occupancy labels attached whenever you see the numbers.
On entity vesting: both paths look at a person’s assets, so guarantor and entity treatment is program-specific. Ask before assuming an LLC can hold title.
Key Terms Defined
Asset qualifier path: A program where eligible assets, after credit percentages, must equal or exceed the entire loan amount. No employment or income is documented.
Asset depletion path: A program that divides usable assets by 60 months to create monthly qualifying income. That income then goes through the debt-to-income test.
Debt-to-income (DTI): The share of monthly income that goes to housing and other debts. Lenders cap it.
Haircut: The percentage of an account’s balance that does not count. A 70% credit means a 30% haircut.
Seasoning: The time assets must sit in an account before they count.
Cash-out refinance: A new, larger loan that pays off the old one and returns the difference as cash.
How Each Path Counts Your Assets
The two paths treat the same account differently. Run the same portfolio through each and the totals can shift a lot.
On the qualifier path, brokerage, CDs, money market and savings all count at 100%. A 401(k) or IRA counts at 90% under age 59½ and 100% at 59½ or older. Accounts combine.
Here is the sanctioned example. Take an $800,000 loan with $330,000 in brokerage accounts, $300,000 in a 401(k) under 59½ and $200,000 in savings. The brokerage counts at 100%, or $330,000. The 401(k) counts at 90%, or $270,000. The savings counts at 100%, or $200,000. That totals $800,000 of usable assets, so the borrower is reviewed on assets alone, subject to underwriting.
On the depletion path, cash and CDs count at 100%. Securities count at 80%, retirement accounts at 70% at any age and real-estate equity at 60%. Custodial accounts, deferred compensation, escrow accounts, foreign funds, cash on hand, privately held stock, stock options and non-vested restricted stock units are not eligible.
Now the depletion example. Say a borrower holds $1,500,000 in securities and $300,000 in cash. Securities at 80% gives $1,200,000. Cash at 100% gives $300,000. That is $1,500,000 usable. Divide by 60 months and you get $25,000 of monthly qualifying income. That income must carry the housing payment and other debts through the DTI test. The lender’s own calculation governs.
Notice what changed. A retirement account counts for more on the qualifier path, and securities count for less on the depletion path. Which path wins depends on what you hold.
Cryptocurrency, precious metals, collectibles, pledged or borrowed funds and business accounts beyond your ownership share are not published as eligible on either path. The documented route is converting them to a seasoned cash balance in a regulated account. The lender reviews the source.
When the Asset Qualifier Path Is the Better Fit
The qualifier path fits when your eligible assets can cover the entire loan. It asks for no employment or income, so a retiree or a recent business seller avoids the income-paperwork problem entirely.
It also avoids the DTI test. No income is documented, and the ability-to-repay review rests on the assets. That helps if your existing debts are heavy.
Leverage is the catch on a cash-out. The qualifier path publishes up to 75% on a refinance of a principal residence or second home. Whether cash-out proceeds are allowed, and at what leverage, is set by the lender and is not published. Ask for that answer before you build a plan around it.
Two more practical points. Credit needs a 600 minimum, subject to underwriting. And you need the assets seasoned: 60 days, with two months of statements for each qualifying account.
There is also a cost to the balance sheet. If assets must equal the whole loan, a big share of your liquidity is spoken for. That can limit what you do next. One cash-out can shrink the pool available for the next deal.
When the Asset Depletion Path Is the Better Fit
The depletion path fits when your assets are large but fall short of the loan amount. It turns them into income, so you can borrow against a pool that would be too small on the qualifier path.
It is also the only asset path that publishes investment-property leverage. On a rental, depletion allows 65% LTV on a purchase or rate-and-term refinance and 60% on a cash-out. On a principal residence or second home, it allows 80% on a purchase or rate-and-term and 60% on a cash-out. Cash-out proceeds never count as qualifying assets. Final terms depend on the lender’s guidelines, the property type, and the borrower’s complete credit picture.
Depletion can also supplement documented income. Asset-derived income can fill a gap up to a 45% DTI. When it supplements, the minimum-assets rule is waived.
Otherwise, the minimums bite. When depletion is the only income source, you need qualified assets of at least the lesser of $1,000,000 or 1.25 times the loan balance. You also need at least $250,000 liquid. A first-time investor needs a 700 credit score. Housing history is 0x30x12, though one 30-day late in the last twelve months is considered case by case. A housing event needs four years of seasoning. Each figure is subject to lender guidelines and a complete review of property type, leverage, and credit.
Statements must cover at least 120 days of history at application, and a more recent statement is also needed, with exact timing varying by file and lender. Sale-of-business, inheritance and legal-settlement funds are excused from that seasoning.
The trade-off is the haircut. A retirement account counts at 70%, and you still have a DTI to clear.
Which Should You Choose?
Work through these questions in order.
1. Do eligible assets cover the whole loan? If yes, the qualifier path is worth a look. If no, depletion is the realistic path.
2. Do you need cash-out on a rental? Depletion publishes that leverage at 60% LTV on an investment property. Qualifier-path cash-out terms are set by the lender.
3. Are your existing debts heavy? The qualifier path skips DTI. The depletion path runs through it.
4. Is your property an investment property? Only the depletion path covers it.
5. Does the rent cover the payment? Then consider DSCR. It qualifies primarily on property-level rental income covering the payment, subject to lender guidelines. There is no personal-income paperwork and no asset pool to haircut. Select lenders in the network also offer programs below 1.00 coverage, but LTV and terms adjust.
Many borrowers assume a rental cash-out must use one of these asset paths. That is not so. If you hold the property through an entity or for business purposes, a business-purpose investor loan may fit better. Lendmire’s complete DSCR loans guide explains how that route works.
Why Cash-Out Changes the Picture
Cash-out is not a purchase. Leverage is lower, and the lender has more to check.
First, the loan pays off the existing mortgage. The old balance comes out of the new loan before you see cash. Second, cash-out proceeds never count as qualifying assets on the depletion path. You cannot use the new cash to meet your own asset test.
Third, occupancy matters. These asset paths are consumer-purpose programs. A rental loan treated as business purpose falls under a different regulatory frame. The Federal Register’s 2013 ability-to-repay rule says investment-purpose loans are considered business-purpose loans and are outside that rule. The CFPB’s Regulation Z § 1026.3 lists the factors used to decide a loan’s primary purpose. If you plan to occupy the home, you are in consumer territory. If you do not, the property is a business-purpose rental.
Finally, think about what the cash does to your balance sheet. Pulling equity can leave you with less liquidity than you started with, and reserves still need documenting.
Risks and Trade-Offs
Both paths tie up assets. You do not sell or pledge them, but they sit documented in the file and are, in effect, spoken for.
Market drops matter too. If a brokerage account falls, your usable assets fall with it, and the lender re-verifies at application. That is a risk for you if timing slips.
Cost trade-offs also exist. A home equity line, a bank statement loan or a conventional refinance each have their own rules. Bank statement programs suit borrowers who document income with deposits.
The agencies are a different case. Agency guidelines for conventional loans treat asset-dependent income through narrower, defined guidance. They require extra continuance analysis when an asset account is the main income source. Those are the agencies’ rules, not this program’s.
If neither path fits, other income routes may. A borrower with documented income may qualify under a standard program instead.
A cash-out refinance covers a case where a cash buyer wants to recover funds after purchase.
Frequently Asked Questions
Do I have to sell my assets?
No. The assets stay in your accounts. They are documented and counted, not sold or pledged. They still have to be seasoned and verified.
Can I combine depletion income with other income?
Yes, on the depletion path. Asset-derived income can supplement documented income up to a 45% DTI.
Does either path mean no documentation?
No. The qualifier path documents no employment or income. It still requires two months of statements for each qualifying account and 60 days of seasoning. The depletion path requires statements covering a longer history, plus a recent statement, with exact requirements varying by file and lender.
Can cash-out proceeds count as my assets or reserves?
On the depletion path, cash-out proceeds never count as qualifying assets. Qualifier-path reserves are none at or below 75% LTV, and above that the lender sets them. Leverage, reserves, and pricing vary by lender and program; the final terms follow the full file review.
What if my rent covers the payment on the rental?
Then a DSCR loan may be simpler. Compare it against both paths here.
Balanced Verdict
Neither path is better in general. The qualifier path is cleaner when your assets cover the loan, but cash-out terms are set by the lender. The depletion path publishes clear cash-out leverage and covers investment property, but it brings haircuts, a DTI test and minimum-asset rules.
If you are qualifying on assets rather than income and want to see how the numbers work, Lendmire can help you compare asset-based mortgage options based on your statements, the property, credit profile, leverage, and your goals.
Investors weighing their equity options can start with Lendmire’s guide to cash-out refinance on an investment property.
About Lendmire
Lendmire is a mortgage brokerage (NMLS# 2371349) licensed for consumer mortgage lending in 16 states, arranging bank statement and other alternative-documentation mortgages — P&L-only, 1099-only and asset-based paths — through a wholesale lending network. Eligibility is determined by the lender on each file. Scotsman Guide named Lendmire a Top Mortgage Workplace in both 2025 and 2026.
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References
1. Federal Register, Ability-to-Repay and Qualified Mortgage Standards
This article is part of Lendmire’s asset-based mortgage program — full qualification details, guidelines, and scenarios live on the program page.
Related reading: How to Qualify for an Asset Qualifier Mortgage · How to Qualify for an Asset Depletion Jumbo Loan · Maxed-Out Jumbo vs Super Jumbo Loan for a Retiree on Asset Depletion
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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Important disclosures. Lendmire (NMLS# 2371349) is a licensed mortgage brokerage. Lendmire is not a direct lender, depository institution, or financial advisor. All loan inquiries are subject to lender underwriting; this article does not constitute a commitment to lend. Rates, terms, and program guidelines are subject to change without notice and vary by borrower profile, property type, and state. Information in this article is general in nature and is not financial, legal, or tax advice. Equal Housing Opportunity. NMLS Consumer Access: nmlsconsumeraccess.org.