The Quick Read: You pick accounts with three tests: how fully each one counts on your path, whether it is fully yours and reachable, and whether the dollars are already spoken for. Lead with cash and brokerage, add retirement accounts only to close a gap, and leave off anything the program does not list. Nothing is sold, frozen or pledged.
- Two paths, two scorecards. On the asset qualifier path, assets must cover the whole loan. On the asset depletion path, assets become monthly income. Each path counts accounts differently.
- Cash counts most. Savings, money market and certificates of deposit count at 100% on both paths. Brokerage counts at 100% on the qualifier path and securities count at 80% on the depletion path.
- Retirement money is discounted. On the qualifier path it counts at 90% under age 59½ and 100% after. On the depletion path it counts at 70% at any age.
- Use each dollar once. Money spent on the down payment or closing costs cannot also sit in your qualifying pool.
- Documents still matter. Income may go undocumented, but the assets never do. All of this is subject to underwriting and the lender’s own calculation.
What Does “Showing” an Account Mean?
Showing an account means giving the lender statements for it so the balance can be counted. It does not mean selling, moving or pledging anything. The lender counts the balance toward a test, and the money stays in your name.
Many borrowers picture a lien on their portfolio. That is not how it works. The loan is secured by the house. Your accounts are evidence that you can carry the loan.
An asset-based mortgage is a consumer loan for a principal residence or second home. Through select programs, the asset depletion path also reaches investment property. Both paths are placed through select lenders in Lendmire’s wholesale network. Each program has its own rules, and the figures here are ceilings and floors, never offers.
Here is the part most people miss. You choose from the accounts you own, and the choice changes the result. The same net worth can pass on one account set and fall short on another.
Which Path Fits You: Assets Cover the Loan, or Assets Become Income?
Pick the path first, because the path decides how every account is scored. On the asset qualifier path, eligible assets must equal or exceed the entire loan amount, and no employment or income is documented. On the asset depletion path, usable assets are divided by 60 months to create a qualifying income, which then runs through the debt-to-income test. A borrower is reviewed on one path at a time.
The two paths suit different readers. The qualifier path suits someone whose liquid balances are large compared with the loan. The depletion path suits someone who wants the loan sized to an income number, or who is buying an investment property.
Leverage differs by path and occupancy. Terms are set through select programs and are subject to underwriting:
- Asset qualifier path: up to 80% loan-to-value (the loan as a share of the property’s value) on a purchase, and 75% on a refinance, for a principal residence or second home. Loans run up to $4,000,000.
- Asset depletion path, principal residence or second home: up to 80% on a purchase or rate-and-term refinance, and 60% on a cash-out refinance.
- Asset depletion path, investment property: up to 65% on a purchase or rate-and-term refinance, and 60% on a cash-out. Loans run from $125,000 to $3,500,000.
Cash-out proceeds never count as qualifying assets on the depletion path. Whether the qualifier path allows cash-out, and at what leverage, is set by the lender and is not published.
For the bigger picture on investor financing, Lendmire’s complete DSCR loans guide shows where rental-income loans fit next to these asset-based options.
How Do You Pick Accounts?
Five Questions, Account by Account
Run each account through five questions, in order. The first account that fails a question usually belongs off the list.
1. Is the account type listed on my path? If the program does not list it, it does not count, no matter its size.
2. How much of the balance counts? A savings account counts at 100%. A retirement account counts less. Rank accounts by what share of each dollar survives.
3. Is it fully mine and reachable? Titling and access matter. A vested balance you can withdraw from counts. Money you cannot reach or only partly own may not.
4. Is it seasoned? Seasoning is how long money has sat in an account. A large deposit that arrived last month draws questions.
5. Is the dollar already spoken for? Down payment and closing funds leave the pool. The same dollar cannot count twice.
Then build the list. Start with the accounts that count most and document easiest: cash, then brokerage. Add retirement accounts only if the shortfall requires it. Showing fewer accounts means fewer statements to explain, so a short, clean list often beats a long one.
Before you apply, ask your broker to run the qualifying numbers with two or three different account sets. That test costs nothing and shows which account is carrying the file.
Account by Account: How Each Path Counts Them
This table shows the share of each balance that counts. It is a comparison of two separate scorecards, so never blend the columns. Figures are typical program ceilings, subject to underwriting.
| Account type | Qualifier path | Depletion path |
|---|---|---|
| Savings, money market | 100% | 100% (cash accounts) |
| Certificates of deposit | 100% | 100% |
| Brokerage / securities | 100% | 80% |
| Private stock | Not published | 75% |
| 401(k) or IRA, under 59½ | 90% | 70% |
| 401(k) or IRA, 59½ or older | 100% | 70% |
| Real-estate equity (other property) | Not published | 60% |
Two patterns stand out. Cash-like accounts are the strongest on both paths. Brokerage balances look better on the qualifier path, where they count in full, than on the depletion path, where securities are discounted to reflect price swings.
If you own cryptocurrency, precious metals or collectibles, they are not published as eligible on either path. The documented route is converting them to a seasoned cash balance in a regulated account, with the lender reviewing the source. The same applies to business accounts beyond your ownership share.
Retirement Accounts: A Separate Decision
Retirement accounts get their own decision because lenders discount them for withdrawal cost and tax. The IRS says a 10% additional tax generally applies to early IRA distributions, which are those taken before age 59½, unless an exception applies (IRS Topic 557). Lenders know this, so they score these accounts less fully.
Here is how that plays out on each path:
- Qualifier path: a 401(k) or IRA counts at 90% under 59½ and 100% at 59½ or older. Turning 59½ moves the score.
- Depletion path: retirement accounts count at 70% at any age, so the birthday does not change the score.
Work through three checks for each retirement account. First, is the balance vested? Unvested money does not count. Second, can you actually withdraw it? Some employer plans restrict withdrawals while you still work there, and a lender may ask for proof of access. Third, do you really need it? If cash and brokerage already clear the test, leave the retirement account out.
The most expensive mistake runs the other way. Some borrowers liquidate a retirement account to show cash. That move can trigger tax and penalties, and it is almost never necessary. Show the account where it sits. Pulling money out early can trigger an additional 10% tax on top of regular income tax; tax treatment varies, so consult a qualified professional before moving any funds.
Lendmire’s article How to Use Retirement Accounts for Reserves on an Asset Depletion Mortgage covers the reserve side of that question in more depth.
A Worked Example: Same Borrower, Different Account Sets
These numbers are illustrative. Program terms apply, and the lender’s own calculation governs.
Qualifier path, an $800,000 loan. Picture a borrower under 59½ with $330,000 in brokerage accounts, $300,000 in a 401(k) and $200,000 in savings. The brokerage counts at 100%, which is $330,000. The 401(k) counts at 90%, which is $270,000. The savings count at 100%, which is $200,000. Usable assets total $800,000, which matches the loan, so the file is reviewed on assets alone.
Now drop the 401(k) from the list. Brokerage and savings give $530,000 of usable assets. That is short of the $800,000 loan. The retirement account was the piece that closed the gap, so it earns its place here. Had the borrower been 59½ or older, the same 401(k) would count at 100% and the cushion would be larger.
Depletion path, qualifying income. Take another borrower with $1,500,000 in securities and $300,000 in cash. The securities count at 80%, which is $1,200,000. The cash counts at 100%, which is $300,000. Usable assets are $1,500,000. Divided by 60 months, that is $25,000 of monthly qualifying income, which then carries the housing payment and other debts through the debt-to-income test.
Leave off the cash and show only the securities. The cash account carries real weight because it counts in full. This is why it pays to test several account sets before you submit.
The depletion path also has minimums. Qualified assets generally must reach the lesser of $1,000,000 or 1.25 times the loan balance, and never less than $250,000 liquid when asset depletion is the only income source. Asset-derived income may also supplement documented income up to a 45% debt-to-income ratio. When it supplements, the minimum-assets rule is waived.
Accounts to Leave Off or Handle Carefully
Some accounts hurt more than they help. Here is a practical way to sort them.
Not eligible on the depletion path:
- Custodial accounts
- Deferred compensation
- Escrow accounts
- Foreign funds
- Cash on hand
- Stock options and non-vested restricted stock units
- Funds from non-regulated financial companies
Handle with care:
- Recently moved money. Large transfers between your own accounts need a clear paper trail. Recent deposits need a source.
- Borrowed or pledged funds. Margin balances and loan proceeds are not published as eligible. Leave them off.
- Shared and trust accounts. Joint accounts, trusts and accounts in a spouse’s name raise titling questions. Reviews are case by case, and lender guidelines differ. Lendmire’s piece How to Choose Which Assets to Pledge on an Asset Depletion Mortgage works through the ownership side.
- Business funds. An operating account belongs to the entity. Only your ownership share can matter, and many files do better without it.
Where the General Rule Breaks
The ranking above holds for most files. Several edge cases bend it.
The house you are buying never counts. Under the federal ability-to-repay rule, the assets a lender may consider exclude the value of the dwelling that secures the loan, and the lender must verify assets with reliable third-party records (12 CFR 1026.43). Equity in other property can count on the depletion path at 60%. Equity in the subject property cannot.
Seasoning rules differ by path. On the qualifier path, expect 60 days of seasoning and two months of statements for each account you show. On the depletion path, statements must be at least 120 days old at application, plus the most recent statement within 45 days. Funds from the sale of a business, an inheritance or a legal settlement are excused from that seasoning. These are often the very funds a cash-heavy, income-light borrower holds.
Reserves work differently by path. On the qualifier path, no reserves are required at or below 75% loan-to-value, and above that the lender sets them. The depletion path publishes no reserve months. Either way, keep reserve cash from being counted twice.
Credit still matters. The qualifier path has a 600 minimum score. The depletion path follows the lender’s matrix, and a first-time investor on that path needs 700. A housing event needs 4 years of seasoning on the depletion path. Never read an asset-based mortgage as a no-credit-check loan.
Rentals can run 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. Rental loans qualify primarily on property-level rental income covering the payment, subject to lender guidelines. Even then, assets are reviewed for cash to close and reserves, so organized statements help on that route too.
Documentation Checklist
Gather these before you talk to a lender:
- The two most recent monthly statements for every account you plan to show, all pages included.
- Statements old enough for your path’s seasoning rule.
- A written source for any large recent deposit.
- A transfer trail if money moved between your own accounts.
- Proof of ownership and titling for joint, trust or spouse-owned accounts.
- Vesting and withdrawal-access proof for any employer retirement plan.
- A running list of what you will spend on the down payment and closing costs.
Assets are documented on both paths. No income documentation never means no documentation.
Common Mistakes
- Showing everything. More accounts means more statements to explain. Show what the file needs.
- Counting the same dollar twice. Cash to close cannot also be part of the pool.
- Liquidating retirement funds first. Show the account in place instead.
- Assuming one haircut fits all. Programs differ. Ask for the specific table before you plan.
- Waiting to move money. Large transfers late in the process cause delays and questions. Do your moving before you apply.
Key Terms Defined
Asset qualifier path: The path where eligible assets, after credit percentages, must equal or exceed the whole loan, with no income documented.
Asset depletion path: The path where usable assets divided by 60 months become a monthly qualifying income.
Haircut: The discount a lender applies to an asset’s balance, so only part of it counts.
Seasoning: How long money has been in an account before you apply.
Debt-to-income (DTI): Your monthly debts, including the new housing payment, compared with your monthly qualifying income.
Reserves: Money left over after closing that shows you can keep paying the loan.
Frequently Asked Questions
Do I have to show every account I own?
No. You show the accounts the file relies on. Many borrowers submit a short list of the strongest accounts and keep the rest out of the file. Some guidelines still ask about every account listed on the application, so list only what you intend to rely on.
Does the lender take or freeze the accounts I show?
No. The balances are counted for a qualifying test only. Nothing is liquidated, pledged or frozen, and the loan is secured by the property.
Do retirement accounts count at full value?
Usually not. On the qualifier path, a 401(k) or IRA counts at 90% under 59½ and 100% at 59½ or older. On the depletion path, retirement accounts count at 70% at any age. Both figures are subject to underwriting.
Can crypto or home equity help me qualify?
Cryptocurrency is not published as eligible on either path. The documented route is converting it to a seasoned cash balance in a regulated account. Equity in the home you are buying never counts. Equity in another property can count at 60% on the depletion path.
Which path is better if I am buying an investment property?
The depletion path is the one that reaches investment property, at up to 65% on a purchase and 60% on a cash-out. The qualifier path covers principal residences and second homes only. Either way, the best fit depends on your balances, your credit and the property.
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 options based on your statements, the property, credit profile, leverage, and your goals. 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. Lendmire is a broker, not a lender, and every file is underwritten individually. You can reach the team at 828-256-2183.
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. IRS Topic 557, Additional Tax on Early Distributions from Traditional and Roth IRAs
2. 12 CFR 1026.43, Minimum Standards for Transactions Secured by a Dwelling
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 Asset Qualifier Income Is Calculated for a Jumbo Mortgage · How Asset Depletion Mortgage Eligible Assets Work for Rental Investors · How to Document an Asset Qualifier Mortgage
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.