The Quick Read: It depends on the loan size, the program path, and how much of your balance counts after credit percentages, closing funds and seasoning, so no single dollar minimum fits every borrower. On the asset qualifier path, your eligible assets must equal or exceed the entire loan. The other path turns assets into monthly income, and it has its own floor. Both are subject to underwriting.
- Asset qualifier path: usable assets must cover the whole loan. No employment or income is documented.
- Asset depletion path: usable assets divided by 60 months become qualifying income. That income must carry the housing payment and other debts.
- Depletion floor: qualified assets of at least the lesser of $1,000,000 or 1.25 times the loan balance, and never below $250,000 liquid when assets are your only income.
- Not every dollar counts. Each account type is credited at a percentage, and money committed to the purchase comes out first.
Lendmire is a mortgage broker. It places these asset-based consumer loans through select lenders in its network, and the figures here are program ceilings and floors, never offers.
Which Path Fits You?
The asset qualifier path fits you if your balances are large enough to cover the loan outright. The asset depletion path fits you if your assets are large but you still want them to behave like income in a debt-to-income test. A borrower is qualified on one path at a time, and the two tables never blend.
| Factor | Asset qualifier | Asset depletion |
|---|---|---|
| How assets are used | Must cover entire loan | Usable assets ÷ 60 months = income |
| Income documented | None | Derived income only (or supplements) |
| Purchase leverage | Up to 80% LTV | Up to 80% (primary/second home) |
| Refinance leverage | Up to 75% LTV | 80% rate-and-term; 60% cash-out |
| Loan amounts | Up to $4,000,000 | $125,000 to $3,500,000 |
| Credit | 600 minimum | Lender’s matrix |
Leverage on the qualifier path applies to a principal residence or second home. On the depletion path, investment property tops out at 65% LTV on a purchase or rate-and-term refinance and 60% on a cash-out. Cash-out proceeds never count as qualifying assets. Terms vary by lender guidelines, property type, leverage, credit profile, and full file review.
The assets are documented on both paths. What goes undocumented on the qualifier path is employment and income.
Why the Qualifier Path Sets a Clean Dollar Bar
On the qualifier path, the answer is a simple comparison: eligible assets, after the credit percentages below, must equal or exceed the loan amount. A bigger loan needs a bigger pool.
Take an $800,000 loan. Say you hold $330,000 in brokerage accounts (counted at 100%, so $330,000), $300,000 in a 401(k) while under 59½ (counted at 90%, so $270,000), and $200,000 in savings (100%, so $200,000). Usable assets total $800,000, which matches the loan, so the file is reviewed on assets alone, subject to underwriting. This is an illustration, and the lender’s own calculation governs.
Reserves matter less here. Across the network, programs on this path typically require none at or below 75% LTV. Above that, the lender sets them.
How Assets Become Income on the Depletion Path
The depletion path divides your usable assets by 60 months. The result is monthly qualifying income, and that income then runs through the debt-to-income test alongside the new housing payment and your other debts.
Here is the sanctioned shape. Say you hold $1,500,000 in securities (counted at 80%, so $1,200,000) and $300,000 in cash (100%, so $300,000). Usable assets are $1,500,000. Divided by 60 months, that is $25,000 of monthly qualifying income. That figure must carry the full housing payment and other debts.
The divisor is the biggest lever in any asset-income formula. Market explainers quote many different periods, which is why published dollar ranges disagree so much. The network figure is 60 months on this path. Halving a divisor doubles the income, so never compare a number from one lender’s page to another’s without checking the divisor first.
Asset income can also supplement documented income, up to a 45% debt-to-income ratio. When it supplements, the minimum-assets rule below is waived.
What Counts, and How Much
Cash and CDs count at full value on both paths. Beyond that, the two paths treat accounts differently, so read the right column.
| Asset type | Qualifier path | Depletion path |
|---|---|---|
| Savings, money market | 100% | Cash accounts 100% |
| Certificates of deposit | 100% | 100% |
| Brokerage / securities | 100% | 80% |
| Privately held stock | Not eligible | Not eligible |
| 401(k) and IRA | 90% under 59½; 100% at 59½+ | 70% at any age |
| Real-estate equity | Not published | 60% |
Accounts combine on the qualifier path. On the depletion path, custodial accounts, deferred compensation, escrow accounts, foreign funds, cash on hand, privately held stock, stock options, non-vested restricted stock units and funds from non-regulated financial companies are not eligible.
Privately held stock is not eligible on either path. A founder’s route is documented liquid assets, such as seasoned proceeds from a sale or buyout. Cryptocurrency, precious metals, collectibles and pledged or borrowed funds are not published as eligible on either path either. The documented route is converting them to a seasoned cash balance in a regulated account, with the source reviewed by the lender. Retirement-heavy borrowers can see how the rules differ in Lendmire’s piece Asset Depletion Mortgage Rules for Retirement vs Liquid Assets. Tax treatment varies; consult a qualified professional before relying on any withdrawal strategy.
The Depletion Path Minimum
The depletion path sets a floor on top of the math. Qualified assets must reach at least the lesser of $1,000,000 or 1.25 times the loan balance. They must also never fall below $250,000 liquid when asset depletion is your only income source.
On a smaller loan, 1.25 times the loan is the lower number, so the requirement shrinks with the loan. At a loan of $800,000, 1.25 times equals $1,000,000. Above that, the $1,000,000 cap governs. The $250,000 liquid floor stays in force when assets are your sole income.
These are the figures the network programs publish, subject to underwriting.
Work Backward From Your Own Number
Start with the path, then solve in one direction.
Qualifier path: take the loan you want. Your usable assets, after the credit percentages, must equal or exceed it. To see the raw balance you need in a bucket, divide the usable amount you want from it by that bucket’s credit percentage. For example, getting $270,000 of usable credit from a 401(k) under 59½ takes a $300,000 balance, because it counts at 90%.
Depletion path: take the monthly qualifying income your debt-to-income test needs. Multiply by 60 to get the usable assets you need. Then gross that figure up for the haircuts: usable assets drawn from securities, which are credited at only a percentage of their value, require a larger raw balance.
Finally, subtract what you will commit to the purchase. A down payment and closing funds cannot be counted twice, so plan on the balance left after closing, not today’s statement balance.
Same Balance, Different Outcomes
Two people with identical total balances can land in different places. The mix drives the answer.
A cash-heavy borrower keeps every dollar on the depletion path. A brokerage-heavy borrower sees 80 cents on the dollar there, but a full dollar on the qualifier path. A retirement-heavy borrower sees 70 cents on the dollar on the depletion path, and 90 cents on the qualifier path until age 59½. At 59½ or older, retirement balances count in full on the qualifier path.
This is why the asset-rich, income-light retiree often prefers the qualifier path. The credit percentages are friendlier, and no income math is needed.
What Takes Dollars Out of Your Pool
Four things shrink the balance a lender will count.
- Seasoning. The qualifier path wants 60 days of seasoning and two months of statements for each qualifying account. The depletion path wants statements at least 120 days old at application plus the most recent statement within 45 days. Sale-of-business, inheritance and legal-settlement funds are excused from that seasoning.
- Recent deposits. Large or fresh deposits need a documented source. Moved money can fall outside the seasoning window.
- Ineligible account types. Anything on the excluded list above counts for nothing until converted and seasoned.
- Funds committed to the deal. Down payment and closing money leave the pool first.
Where Rental Investors Fit
Asset-based mortgages are consumer loans, and they mostly serve primary homes and second homes. A rental purchase usually belongs on a different track. 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, and the Federal Register’s ability-to-repay rulemaking notes that investment-purpose loans are treated as business-purpose loans.
The practical split is simple. DSCR qualifies primarily on property-level rental income covering the payment, subject to lender guidelines. Asset depletion is reviewed against the borrower’s balance sheet. When rent covers the payment, DSCR is usually the cleaner fit. When a rental’s rent falls short, select lenders in the network offer programs below 1.00 coverage, with LTV and terms adjusted.
Asset depletion can still serve an investor in two cases. One is buying a primary or second home. The other is an investment property on the depletion path, at the lower leverage shown earlier. Depletion loans often carry personal vesting with limited LLC flexibility, unlike DSCR.
One more cost deserves attention. Every dollar you count as qualifying assets is a dollar unavailable for the next down payment, reserves or repairs.
How Agency Rules Differ
Agency asset depletion is much narrower. Fannie Mae’s Selling Guide limits it to employment-related assets on a principal residence or second home. It caps LTV at 70%, or 80% when the asset owner is at least 62 at closing, and it subtracts any penalty on a complete distribution. Agency asset depletion does not cover investment properties, so it is not a route for a rental purchase. Exact terms depend on the lender’s guidelines, property type, leverage, and a full review of the borrower’s file.
Non-QM is the broader space where programs like these sit. Scotsman Guide reports non-QM at about 5% of mortgage originations, citing CoreLogic.
If You Fall Short
Falling short does not end the conversation. Several adjustments help.
- Borrow less or put more down, which shrinks the pool you need.
- Move funds into cash or savings that season well, since those count at 100%.
- Switch paths. A borrower short on the depletion math may clear the qualifier path, or the reverse.
- Combine asset income with documented income, up to the 45% debt-to-income limit, which waives the minimum-assets rule.
- Consider a different program. Bank statement loans fit borrowers who document income through deposits, and DSCR fits a pure rental.
Key Terms Defined
Asset depletion: a method that divides usable assets by a set number of months to create qualifying monthly income. Nothing is sold or withdrawn.
Asset qualifier: a path where eligible assets alone must cover the whole loan, with no income documented.
Haircut: the percentage cut a lender takes off an account balance before counting it.
Seasoning: the period funds must sit in your account, shown by statements, before they count.
Debt-to-income (DTI): your monthly debts, including the new housing payment, compared with monthly income.
Frequently Asked Questions
Is there a minimum amount of assets for an asset depletion mortgage?
On the depletion path, qualified assets must be at least the lesser of $1,000,000 or 1.25 times the loan balance, and never below $250,000 liquid when assets are your only income. On the qualifier path, the minimum is the loan amount itself. Both are subject to underwriting.
Do I have to sell my investments?
No. The calculation is a qualifying convention, not a withdrawal plan. You keep the accounts, and the lender reviews statements to confirm the balances.
Do retirement accounts count in full?
Not on the depletion path, where they count at 70% at any age. On the qualifier path they count at 90% under age 59½ and 100% at 59½ or older.
Can I use this for a rental property?
Only on the depletion path, at up to 65% LTV on a purchase or rate-and-term refinance and 60% on a cash-out. For most pure rentals, a DSCR loan is the cleaner fit when rent covers the payment.
Does “no income documented” mean no documentation?
No. Assets are fully documented through statements on both paths. What the qualifier path skips is employment and income documentation.
Next Step
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 programs based on your statements, the property, credit profile, leverage, and your goals. Lendmire’s consumer mortgage lending is licensed in 16 states: Alabama, California, Colorado, Florida, Georgia, Indiana, Michigan, Montana, New Mexico, North Carolina, Ohio, Pennsylvania, Tennessee, Texas, Virginia and Washington. Programs change. This is not a commitment to lend.
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
2. Fannie Mae Selling Guide B3-3.4-06
3. Scotsman Guide — One out of 20 mortgages are non-QM
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 Much Does a Pennsylvania Retiree Need in Assets to Buy a Home Without Income? · How Much of a Brokerage Account Counts Toward a North Carolina Asset Qualifier Mortgage? · Can an Indiana Divorce Settlement Count as Assets for a Mortgage?
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.