The Quick Read: Usually the full loan amount. On the asset qualifier path, your eligible assets, after each account type’s credit percentage, must equal or exceed the entire loan, subject to underwriting. Nothing is sold or pledged, and no employment or income is documented.
- Qualifier path: counted assets must be at least 100% of the loan, with loans up to $4,000,000 through select programs.
- Cash, CDs, money market, savings and brokerage count at 100%. A 401(k) or IRA counts at 90% under age 59½ and 100% at 59½ or older.
- Funds need 60 days of seasoning and two months of statements per account.
- If your balances fall short, the depletion path turns assets into income instead. It follows different tests and different leverage.
Which Path Are You On?
Two programs share the name “asset-based mortgage,” and mixing them up is the most common source of bad math. A borrower is reviewed on one path at a time.
The asset qualifier path covers the loan with assets alone. Your counted balances must match the whole loan, and no income is documented.
The asset depletion path converts assets into monthly qualifying income. That income must carry the housing payment and your other debts through a debt-to-income test.
| Factor | Asset qualifier | Asset depletion |
|---|---|---|
| Core test | Counted assets ≥ loan | Assets ÷ 60 = income |
| Income documented | None | Derived from assets |
| Purchase leverage | Up to 80% | 80% home, 65% investment |
| Loan range | Up to $4,000,000 | $125,000–$3,500,000 |
| Property use | Primary or second home | Also investment property |
Leverage here means loan-to-value (LTV), the loan as a percentage of the property’s value. These figures are program ceilings through select lenders, not offers, and every file is underwritten individually.
How Much Do You Need on the Qualifier Path?
Counted assets must equal or exceed 100% of the loan amount. “Counted” is the key word. You multiply each account by its credit percentage, then add them up.
Think of it as a formula: loan amount ≤ sum of (balance × credit percentage).
Here is the shape Lendmire uses to explain it. Say you want an $800,000 loan. You hold $330,000 in brokerage accounts, $300,000 in a 401(k) and you are under 59½, and $200,000 in savings.
- Brokerage counts at 100%, so $330,000.
- The 401(k) counts at 90%, so $270,000.
- Savings count at 100%, so $200,000.
That totals $800,000 of usable assets. It matches the loan, so the file is reviewed on assets alone, subject to underwriting. The lender’s own calculation governs.
Your raw balances total $830,000, but only $800,000 counts. The gap between raw and counted is the haircut. A haircut is the share of a balance a lender ignores because of withdrawal cost or volatility.
Which Assets Count, and at What Weight?
Cash-like accounts and brokerage balances count in full on the qualifier path. Retirement money depends on your age. Balances combine across accounts.
| Asset (qualifier path) | Share that counts |
|---|---|
| Brokerage accounts | 100% |
| Certificates of deposit | 100% |
| Money market | 100% |
| Savings | 100% |
| 401(k) / IRA, under 59½ | 90% |
| 401(k) / IRA, 59½ or older | 100% |
The depletion path is stricter. Never apply this second table to a qualifier file.
| Asset (depletion path) | Share that counts |
|---|---|
| Cash accounts | 100% |
| Certificates of deposit | 100% |
| Securities | 80% |
| Private stock | 75% |
| Retirement accounts | 70% at any age |
| Real-estate equity | 60% |
Reverse the math to size a target. If your only asset is a retirement account and you are under 59½, you need a balance of about 1.11 times the loan. If it is all cash, you need exactly the loan. A mixed portfolio lands between the two.
What Does Not Count?
A few categories never make the table on either 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 are not eligible on the depletion path.
Cryptocurrency, precious metals, collectibles, borrowed or pledged funds, and business accounts beyond your ownership share are not published as eligible on either path. If you hold these, the documented route is converting them to a seasoned cash balance in a regulated account. The lender then reviews the source of the funds.
The home you are buying cannot count either. Federal rules require that assets used to qualify be assets other than the dwelling securing the loan, which the next section covers.
What the Federal Rule Says (and Doesn’t)
Lenders may qualify you on income, on assets, or on both. The CFPB’s ability-to-repay rule says a creditor can base its decision on assets other than the dwelling that secures the loan. Its examples include savings, vested retirement amounts, stocks, bonds, CDs and funds available from a trust. The eCFR text of the same rule adds that the lender must consider and verify the assets it relies on.
The rule sets no divisor, haircut or coverage ratio. Those are program choices, which is why figures differ from one lender to the next. It also settles a common worry: asset-based does not mean undocumented.
Seasoning, Statements and Documents
Seasoning is the time funds must sit in your account before the lender counts them. The assets are fully documented on both paths. Only the income documentation goes away.
Qualifier path:
- 60 days of seasoning.
- Two months of statements for each qualifying account.
- A 600 minimum credit score, through select programs.
Depletion path:
- Statements at least 120 days old at application.
- The most recent statement within 45 days.
- Sale-of-business, inheritance and legal-settlement funds are excused from that seasoning.
- Credit follows the lender’s score and loan-amount matrix, and a first-time investor needs a 700.
A practical checklist for your side of the table:
1. Gather statements for every account you plan to use, all pages.
2. Confirm each account is titled in your name.
3. Flag any large deposit and write down where it came from.
4. Convert any crypto or metals to cash early, so the balance has time to season.
5. Keep the money in place. Moving funds between accounts can reset the clock.
Do You Need Reserves on Top?
On the qualifier path, reserves are not required at or below 75% LTV. Above that, the lender sets them. Since the qualifier purchase ceiling is 80%, a high-leverage purchase is where reserves can appear. Ask before you assume. The depletion path publishes no reserve months. Exact terms depend on the lender’s guidelines, property type, leverage, and a full review of the borrower’s file.
Cash to close comes from your statements too. Ask how the lender treats closing funds against your counted total, because a file that matches the loan to the dollar leaves no room for it.
For more on how much cash goes into the purchase itself, see Lendmire’s piece How Much Down Payment Does an Asset Qualifier Mortgage Need?.
The Depletion Path: Sizing by Income Instead
Depletion does not ask whether assets cover the loan. It asks whether assets produce enough monthly income to carry your debts. Usable assets are divided by 60 months.
The shape: $1,500,000 in securities counts at 80%, or $1,200,000. Add $300,000 in cash at 100%. That is $1,500,000 usable. Divided by 60 months, it produces $25,000 of monthly qualifying income. That income then carries the housing payment and your other debts through the debt-to-income test, subject to underwriting.
This path has its own floors:
- Qualified assets of at least the lesser of $1,000,000 or 1.25 times the loan balance.
- Never below $250,000 liquid when depletion is your only income source.
- On a home purchase or rate-and-term refinance, up to 80% LTV. A cash-out refinance on a principal residence or second home tops out at 60%.
- On an investment property, up to 65% on a purchase or rate-and-term refinance and 60% on a cash-out. Cash-out proceeds never count as qualifying assets. Every figure here varies by lender and program — guidelines, property type, leverage, and credit profile all apply.
If you also have documented income, asset-derived income can supplement it up to a 45% debt-to-income ratio. When it supplements, the minimum-assets rule is waived.
Assets stay invested on both paths. Dividing by 60 is a qualification convention, not a withdrawal plan.
What If You Are Short?
You have four honest options, and each has a cost.
- Shrink the loan. A larger down payment lowers the amount your counted assets must cover. Your cash goes into the house instead of staying on deposit.
- Move to the depletion path. Assets that do not cover the loan outright may still produce enough income. The tradeoff is lower haircut percentages and, for investment property, lower leverage.
- Season what you have. Recent transfers and unseasoned deposits are a common reason a balance does not count yet. Waiting 60 days can fix it on the qualifier path.
- Use documented income. If you have a pension, Social Security or other income, asset-derived income can supplement it on the depletion path.
Several of these depend on moving balances, so read Lendmire’s guide on whether you must liquidate assets to reserve an asset qualifier mortgage first.
Common Mistakes That Shrink Your Usable Assets
Most shortfalls come from the same few errors. Borrowers count raw balances instead of counted balances. They forget the 401(k) haircut under 59½. They include accounts held by a spouse or a business. They move money days before application. They assume the depletion table applies to a qualifier file. Counting home equity, which the federal rule keeps out for the dwelling securing the loan, is the last one.
One practitioner pattern: across the wholesale network Lendmire places files through, the strongest asset files are often the plainest. A few large, long-held accounts, titled correctly, with clean statements. A tangle of small accounts and recent transfers invites questions even when the total clears.
Where Does DSCR Fit?
Asset-based qualifying suits a cash-heavy borrower buying a home. If you are buying a rental, the better fit is usually a DSCR loan. A DSCR loan is a business-purpose investor loan that qualifies primarily on property-level rental income covering the payment, subject to lender guidelines. It does not tie up a loan-sized pile of assets. Lendmire’s complete DSCR loans guide walks through that route.
Use the asset-based path when the balance sheet is your strongest feature. Use DSCR when the property’s rent is. Retirement balances raise tax questions too. Tax treatment varies, so consult a qualified professional before relying on any assumption.
Key Terms Defined
Asset qualifier: A path that drives lender review on eligible assets alone, with no income documented.
Asset depletion: A path that divides usable assets by 60 months to create qualifying monthly income.
Haircut: The share of an account’s balance that a lender does not count.
Seasoning: The time funds must stay in an account before they count.
Loan-to-value (LTV): The loan amount as a percentage of the property’s value.
Debt-to-income (DTI): Your monthly debts as a share of your monthly qualifying income.
Frequently Asked Questions
Is there one minimum dollar amount of assets?
No. On the qualifier path the requirement scales with the loan: counted assets must cover 100% of it. Loans run up to $4,000,000 through select programs, so the needed balance moves with the size of the loan.
Do I have to sell my investments or withdraw my retirement money?
No. The assets stay where they are. They are documented and counted, not pledged or liquidated. The 90% credit on a 401(k) under 59½ is a qualification percentage, not a withdrawal.
Do retirement accounts count?
Yes, with limits. On the qualifier path, 401(k) and IRA balances count at 90% under age 59½ and 100% at 59½ or older. On the depletion path, retirement accounts count at 70% at any age. Eligibility is subject to underwriting.
Can I buy an investment property with an asset qualifier mortgage?
Not on the qualifier path, which covers principal residences and second homes. Investment property is available on the depletion path, at up to 65% on a purchase or rate-and-term refinance and 60% on a cash-out. For a rental purchase, DSCR is often the better comparison.
Is this a no-documentation loan?
No. No income is documented on the qualifier path, but your assets are. Expect two months of statements per account and 60 days of seasoning.
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. Lendmire is a broker and places these loans through select lenders. Every file is underwritten individually. This is not a commitment to lend. Reach the team at 828-256-2183.
Your counted balance, not your headline net worth, is the number that decides whether the loan is covered.
About Lendmire
As a mortgage broker (NMLS# 2371349), Lendmire helps self-employed and high-net-worth borrowers in 16 states qualify on bank statements, a profit-and-loss statement, 1099s or liquid assets instead of tax returns, through wholesale lenders. Lendmire is never the lender; program terms are set by the lender and its guidelines. Scotsman Guide named Lendmire a Top Mortgage Workplace in both 2025 and 2026.
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References
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 Document an Asset Qualifier Mortgage · Asset Qualifier Mortgage vs Bank Statement Mortgage · How Assets-Only Mortgage Loan Limits Work
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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Disclosure information. Lendmire is a state-licensed mortgage brokerage under NMLS# 2371349. Lendmire is not a depository institution, direct lender, or financial advisor — all loans referenced are placed through wholesale lender partners and are subject to each lender's underwriting standards. This article is provided for general informational purposes and is not a commitment to lend, nor does it constitute financial, legal, or tax advice. Loan programs, terms, rates, and qualification standards change without notice and depend on borrower profile, property type, and the state in which the subject property is located. Equal Housing Opportunity provider. NMLS Consumer Access: nmlsconsumeraccess.org.