The Quick Read: Yes, usually, as long as the home sits in a state where the lender’s program is licensed. Where you live does not decide eligibility. Where the property sits does.
- The state you live in is not an underwriting factor. The property’s state is, because lender licensing follows the property.
- Through select programs in Lendmire’s network, the consumer mortgage is placed in 16 states: Alabama, California, Colorado, Florida, Georgia, Indiana, Michigan, Montana, New Mexico, North Carolina, Ohio, Pennsylvania, Tennessee, Texas, Virginia and Washington.
- Your assets can sit in any regulated US account. The lender reviews the statements, not the state where the bank is located.
- A primary residence or second home can use either qualifying path. An investment property uses the asset depletion path only, subject to underwriting.
- A rental you plan to use yourself for more than a few weeks a year changes which loan fits.
What Is an Asset-Based Mortgage, Exactly?
An asset-based mortgage is reviewed around what you own instead of what you earn. The lender looks at your statements for cash, brokerage accounts, certificates of deposit and retirement accounts. It does not start from a paycheck.
The names vary. You will see asset depletion, asset utilization, asset qualifier and asset dissipation used for the same family of loans. They are not business asset-based lending, which borrows against company inventory or receivables. They are not a securities-backed line of credit, which is a credit line secured by your portfolio rather than a mortgage on the home.
Across our wholesale network, there are two paths, and a borrower is on one path at a time:
- The asset qualifier path. Your eligible assets, after the credit percentages, must equal or exceed the entire loan amount. No employment or income is documented.
- The asset depletion path. Your eligible assets, after haircuts, are divided by 60 months. That number becomes monthly qualifying income, and it must carry the housing payment and your other debts through the debt-to-income test.
This fits retirees, people who sold a business, heirs, and households living off a portfolio. Their balances are large and their documented income is not. Both paths are subject to underwriting, and the lender’s own calculation governs.
Does the Property’s State Matter More Than Yours?
Yes. Three locations show up in every file, and they matter for different reasons.
| Location | Does it matter? | Why |
|---|---|---|
| State where you live | No | It is not an eligibility factor |
| State where the property sits | Yes | The lender must be licensed there |
| State where your assets are held | Rarely | The lender reviews regulated-account statements |
The property’s state controls the practical work. The appraisal, title search, insurance and recording all happen there. Condo rules, rural property limits and insurance exposure such as flood or wind also follow the property.
Your home address does not change leverage or pricing. A borrower in one state buying in another is judged on credit, assets and the property, the same as a local buyer.
Our licensing footprint is the real boundary. Consumer mortgage lending runs through select lenders in the 16 states listed in the Quick Read. If the home is outside them, this loan is not available for that purchase, and you would look at other structures instead.
Primary Home, Second Home or Investment Property?
How you will use the home decides which path and which leverage apply. This is where out-of-state buyers most often get tripped up.
| Use of the home | Qualifier path | Depletion path |
|---|---|---|
| Primary residence | Yes | Yes |
| Second home | Yes | Yes |
| Investment property | No | Yes |
A primary residence is the home you will live in. An out-of-state move is fine, but the lender expects you to actually occupy it.
A second home is a home you keep for your own use, such as a coastal or mountain property. Lenders look for a home that suits that purpose. A place you plan to rent out most of the year does not fit.
An investment property is bought to rent to others. On the asset depletion path, an investment property gets lower leverage than a home you occupy. That is covered in the leverage section below.
Business-purpose rental loans work differently. 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. The Consumer Financial Protection Bureau’s rule text treats a non-owner-occupied rental as business-purpose. It also says purpose is decided case by case.
The same text sets a 14-day test. If you expect to use the home more than 14 days in the coming year, the special treatment for rentals does not apply. A vacation house you also rent out is the classic trap.
A law-firm guide to the business-purpose exemption adds a related point. An owner-occupied rental is generally treated as consumer credit unless the property has more than two units. So the label you put on the application does not settle the question. Your real plans do.
How Qualifying Works on Each Path
Which path fits you depends on one question. Do your assets cover the whole loan, or do they need to become income?
The asset qualifier path
Your eligible assets must equal or exceed the entire loan amount. Here is how the balances count:
| Asset | Share that counts |
|---|---|
| Brokerage accounts | 100% |
| Certificates of deposit | 100% |
| Money market | 100% |
| Savings | 100% |
| 401(k) and IRA, under age 59½ | 90% |
| 401(k) and IRA, age 59½ or older | 100% |
Accounts combine. You need 60 days of seasoning and two months of statements for each qualifying account. The credit floor is 600, subject to underwriting.
Leverage on this path goes up to 80% on a purchase and 75% on a refinance, for a principal residence or second home. Loans go up to $4,000,000. Reserves are not required at or below 75% loan-to-value. Above that, the lender sets them.
Here is an illustration, not an offer. Take an $800,000 loan with $330,000 in brokerage accounts, $300,000 in a 401(k) and $200,000 in savings. The borrower is under 59½. 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. That adds up to $800,000 of usable assets, so the loan is reviewed on assets alone, subject to underwriting.
The asset depletion path
Here your assets become income. The haircuts are steeper:
| Asset | Share that counts |
|---|---|
| Cash accounts | 100% |
| Certificates of deposit | 100% |
| Securities | 80% |
| Private stock | 75% |
| Retirement accounts, any age | 70% |
| Real-estate equity | 60% |
Not eligible on this path: custodial accounts, deferred compensation, escrow accounts, foreign funds, cash on hand, stock options, non-vested restricted stock units, and funds from non-regulated financial companies.
Statements must be at least 120 days old at application, and the most recent one must be within 45 days. Funds from the sale of a business, an inheritance or a legal settlement are excused from that seasoning. Credit follows the lender’s matrix. A first-time investor needs a 700 score. Housing history is 0x30x12, and one late payment in the last twelve months is considered case by case.
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 when depletion is your only income source. Loans run from $125,000 to $3,500,000. Asset income can also supplement documented income up to a 45% debt-to-income ratio, and then the minimum-assets rule is waived.
Take $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. Together that is $1,500,000 of usable assets. Divide by 60 months and you get $25,000 of monthly qualifying income. That income then has to carry the housing payment and your other debts through the debt-to-income test. Again, this is illustrative, and the lender’s own calculation governs.
Leverage on the depletion path
| Property use | Purchase or rate-and-term | Cash-out |
|---|---|---|
| Primary residence or second home | Up to 80% | Up to 60% |
| Investment property | Up to 65% | Up to 60% |
Cash-out proceeds never count as qualifying assets. Every figure here is a ceiling, subject to underwriting, not an offer.
Assets outside these lists are not published as eligible on either path. That includes cryptocurrency, precious metals, collectibles, pledged or borrowed funds, and business accounts beyond your ownership share. The documented route is converting them to a seasoned cash balance in a regulated account. The lender then reviews where the money came from.
What Changes When You Buy From Far Away?
The loan terms stay the same. The logistics get heavier. Here is the order we walk borrowers through:
1. Confirm the property’s state is one of the 16. Do this before you fall for a house.
2. Pick your path. Decide whether your assets cover the loan outright or become income. Check the seasoning on your statements now, because an account opened last month will not clear.
3. Line up the local team. The appraiser, title company and insurance agent all work in the property’s state. Ask the title company early which closing methods it accepts.
4. Check the property type. Condos, rural properties and unique homes carry restrictions that vary by lender. Ask about them before you make an offer.
5. Price the insurance exposure. Flood, wind and wildfire exposure can change what a home costs to carry. Get a quote before you commit.
6. Close remotely if needed. A mobile notary, remote signing or a title office near you can all work. Not every state or document accepts every method.
Because this is a consumer mortgage, the standard consumer disclosures apply to the file.
In files like these, the slow part is rarely the borrower’s strength. It is usually a statement that has not seasoned or an insurance quote that arrives late. Borrowers who gather both first tend to have a smoother file.
Buying Out of State to Rent It Out
If the home is a rental, the asset-based route is the narrower option. The qualifier path does not cover investment property at all. The depletion path does, but at lower leverage.
The usual alternative is a DSCR loan, which qualifies primarily on property-level rental income covering the payment, subject to lender guidelines. DSCR stands for debt service coverage ratio, and the lender checks whether rent covers the payment. Our complete DSCR loans guide walks through that math.
Your home state does not matter there either. The lender looks at the property’s rent, which an appraiser documents with a rent schedule. On a single-family rental that is Form 1007. On a two-to-four-unit property it is Form 1025.
Some programs in the network go below 1.00 coverage, but loan-to-value and terms adjust. A borrower with a strong asset base can also weigh the two routes against each other. DSCR availability is confirmed file by file.
The entity question comes up often. An LLC formed in one state can generally own property in another. UpCounsel’s explainer on owning property through an out-of-state LLC notes that owning and renting the property may require registering the LLC in the property’s state. That can create fees and filings in both states. Lenders often ask for that registration, subject to lender program eligibility.
Should You Borrow Against Assets or Sell Them?
This is a decision, not a rule. Borrowing keeps your portfolio invested and avoids selling positions to fund a purchase. The tradeoff is that you carry a mortgage and the qualifying assets stay in place.
Paying cash ends the debt but ties up money you may want for other things. A bridge loan can cover a gap, but it is short-term by design, and a large cash-out later is limited to 60% on the depletion path.
On the qualifier path, the assets that qualify you also have to remain in place through the file. That makes sense for a borrower who wants the portfolio working, not liquidated. Tax treatment varies; consult a qualified professional before relying on any treatment.
It makes less sense if your assets are mostly in categories that do not count. A large share of stock options, foreign funds or crypto will shrink your qualifying total fast.
When the Answer Is Not With This Loan
Four situations send the borrower elsewhere:
- The home is outside the 16 states, so this program cannot be placed there.
- Your assets fall short of the depletion path minimums or are held in ineligible forms.
- The home is an investment property and you would prefer qualifying on rent.
- You have a recent housing event, since the depletion path wants 4 years of seasoning.
In those cases, a DSCR loan, a bank statement loan for borrowers who document income through deposits, or a conventional loan may fit better. If your main home is paid off, our piece HELOC vs Asset-Based Loan for a Retiree With a Paid-Off Home covers a different decision.
Pre-Application Checklist
Gather these before you talk to a lender:
- Two months of statements for each account, and older ones if you are on the depletion path.
- A list of what each account holds, so the lender can apply the right percentage.
- Photo ID and a credit authorization.
- The property address, so the lender can confirm the state and property type.
- Your intended use: primary, second home or rental.
Ask the lender these questions:
- Is the property’s state in your licensed footprint?
- Which path fits my balances, and at what leverage?
- Do any of my accounts count at less than 100%?
- What does the property type require?
Key Terms Defined
Asset qualifier path: The route where eligible assets must equal or exceed the whole loan, with no income documented.
Asset depletion path: The route where usable assets divided by 60 months become qualifying monthly income.
Seasoning: How long funds must sit in an account before a lender counts them.
Loan-to-value (LTV): The loan amount as a share of the home’s value.
Rate-and-term refinance: A refinance that changes the loan’s terms without taking cash out.
DSCR: A ratio of a rental’s income to its monthly payment, used for investment property loans.
Frequently Asked Questions
Can I use an asset-based mortgage for a vacation home in another state?
Yes, if the home is a second home you will use yourself and it sits in one of the 16 states. Both paths can apply, subject to underwriting. If you plan to rent it out for most of the year, a different loan fits better.
Do my assets have to be in the same state as the property?
No. The lender reviews statements from regulated accounts wherever the bank is located. What matters is seasoning, ownership and the asset type, not the state on the statement.
Can I refinance an out-of-state home this way?
Yes, within the same footprint. On the qualifier path a refinance goes up to 75% loan-to-value on a principal residence or second home. On the depletion path, a rate-and-term refinance goes up to 80% on a principal residence or second home. A cash-out goes up to 60% on the depletion path.
Can I close without traveling?
Often. Mobile notaries, remote signing and a title office near you can all work. Not every state or document accepts every method, so ask the title company early.
Do I need to live in the state where I buy?
No. There is no residency requirement in underwriting. You do need to occupy the home if it is your primary residence, and the home must sit in a state where the program operates.
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.
About Lendmire
Lendmire (NMLS# 2371349) is a mortgage broker licensed for consumer lending in 16 states. Scotsman Guide named Lendmire a Top Mortgage Workplace in both 2025 and 2026.
Get Started
Ready to find the right loan for you?
In about 30 seconds you can review financing options available for your home or investment property. No commitment required.
Informational only. Not a Loan Estimate, approval, or commitment to lend. Program availability and eligibility are subject to lender guidelines, credit approval, property review, and underwriting.
References
1. CFPB Regulation Z, section 1026.3
2. Doss Law: business-purpose exemption guide
3. UpCounsel: can an LLC own property in another state
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 Big Can an Asset Qualifier Mortgage Be? · How an Asset Qualifier Jumbo Mortgage Works · How Asset Depletion Income Differs on a Primary Home vs Rental
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
- Mortgage Loan Originator · NMLS# 1129696 · Verify on NMLS Consumer Access
- North Carolina Real Estate Broker · License# 343312 · Verify on NCREC
- North Carolina Insurance Producer · License# 19053198 · Property, Casualty, Life, Health · Verify on NAIC SBS
- 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.