The Quick Read: It depends on the path and the property, but $500,000 in assets does not mean a $500,000 house. The same money cannot count twice, once as the down payment and again as the qualifying pool. On the asset qualifier path, the usable balance left after the down payment and closing costs must cover the entire loan, so the price is the loan plus the cash you put down. A rental purchase is sized by rent coverage and leverage instead.
- Asset qualifier path: eligible assets, after the credit percentages, must cover the entire loan. Leverage reaches 80% on a purchase, subject to underwriting.
- Asset depletion path: usable assets divided by 60 months become qualifying income. At this asset level the loan tops out near 80% of qualified assets, because the minimum-assets test is 1.25 times the loan.
- Rental purchases: a DSCR loan is reviewed primarily on property-level rental income covering the payment, subject to lender guidelines, with no personal income documentation.
- Documentation still applies: statements are seasoned and reviewed on every path, and the credit score still matters.
What House Can You Buy With $500,000 in Assets?
The answer is a formula, not a single number. Price equals the loan plus the cash you commit to the down payment. Cash committed is your total liquid assets, minus closing costs, minus any reserves the lender wants left over.
That formula only gives you a ceiling. Three limits decide the real figure:
1. Cash. The down payment, closing costs and any required reserves all come out of the same pile.
2. The qualifying test. On a home you live in, either the assets cover the loan, or the assets are converted into income and run through a debt-to-income test. On a rental, rent must cover the payment.
3. Leverage. The loan-to-value cap sets how far each dollar of down payment stretches.
Most readers assume $500,000 in the bank means a $500,000 house. It does not. The money covers the down payment, closing costs and any reserves. It does not cover the price.
The assets are documented on every path. “No income” is not “no documentation.” Lenders review statements, source large deposits, pull credit and review the property. What they skip is the paycheck, the tax return and the employment history. This guide explains the owner-occupied paths first and then the rental route.
Two Ways to Qualify on Assets
Across Lendmire’s wholesale network, asset-based mortgage programs on a home you live in run on one of two paths. A borrower is qualified on one path at a time, and the two should never be blended.
| Factor | Asset qualifier | Asset depletion |
|---|---|---|
| Core test | Assets cover the whole loan | Assets become monthly 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 to $3,500,000 |
| Credit | 600 minimum | Lender’s matrix |
All figures come from select programs and are subject to underwriting.
Asset qualifier: the assets cover the loan
On this path, the usable balance of your accounts must equal or exceed the entire loan amount. No employment or income is documented. Leverage is typically up to 80% on a purchase and 75% on a refinance, on a principal residence or second home. The lender’s ability-to-repay review rests on the assets.
Here is how the credit percentages work. Brokerage accounts, certificates of deposit, money market and savings count at 100%. A 401(k) or IRA counts at 90% if you are under 59½ and at 100% from 59½ on. Accounts combine.
A sanctioned illustration: an $800,000 loan, backed by $330,000 in brokerage accounts, $300,000 in a 401(k) under 59½ (counted at 90%), and $200,000 in savings, counts $800,000 of usable assets. That loan is reviewed on assets alone. The lender’s own calculation governs the real file.
Now apply that to $500,000. The usable balance has to cover the whole loan, and the down payment and closing costs have to come from somewhere. Funds spent at closing cannot also count toward covering the loan. So the loan you can support is smaller than the balance, and the price is the loan plus the down payment. Ask the loan officer exactly how funds to close are treated before you pick a price.
Asset depletion: the assets become income
This path divides usable assets by 60 months to produce a monthly qualifying income. That income must carry the full housing payment and your other debts through the debt-to-income test. Haircuts are steeper here: cash and certificates of deposit at 100%, securities at 80%, retirement accounts at 70% at any age, and real-estate equity at 60%.
Two minimums matter for a $500,000 borrower:
- Qualified assets must be at least the lesser of $1,000,000 or 1.25 times the loan balance.
- Liquid assets can never be below $250,000 when depletion is the only income source.
At the $500,000 level, the first test points to the 1.25 multiple. That means the loan cannot exceed about 80% of qualified assets. The depletion minimum loan is $125,000, which is no obstacle.
The bigger squeeze is the debt-to-income test. $500,000 of cash divided by 60 months is modest income. Hold your assets in retirement accounts at 70%, and the income falls further. The monthly income, not the leverage cap, usually sets your price on this path. Loans in the program range up to $3,500,000, but that range is a ceiling, not a statement about what $500,000 can reach.
Asset-derived income can also supplement documented income, up to a 45% debt-to-income ratio. In that case the minimum-assets rule is waived.
Which Assets Count and How
How your $500,000 is held changes the answer more than most borrowers expect.
| Asset | Qualifier path | Depletion path |
|---|---|---|
| Cash, savings, money market | 100% | 100% (cash) |
| Certificates of deposit | 100% | 100% |
| Brokerage accounts | 100% | 80% (securities) |
| 401(k) or IRA | 90% under 59½, 100% after | 70% |
| Privately held stock | Not eligible | Not eligible |
| Real-estate equity | Not published | 60% |
Some holdings are not eligible on the depletion path at all: 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.
Privately held stock is not eligible on either path. A founder or shareholder qualifies through documented liquid assets: seasoned proceeds from a sale or conversion, cash, public securities and retirement accounts at their percentages.
Cryptocurrency, precious metals, collectibles and pledged or borrowed funds are not published as eligible on either path. The documented route is to convert them to a seasoned cash balance in a regulated account. The lender then reviews the source. They never count at a percentage on their own.
Seasoning also matters. On the qualifier path, funds need 60 days of seasoning and two months of statements for each account. On the depletion path, statements must be at least 120 days old at application, plus a recent statement within 45 days. Funds from the sale of a business, an inheritance or a legal settlement are excused from that seasoning.
Three Borrower Profiles
Picture a retiree with $500,000 spread across savings and a rollover IRA, age 62. On the qualifier path the IRA counts at 100%, since the owner is past 59½. Every account counts in full. Credit still has to clear 600.
Say a recent business seller holds the proceeds in a brokerage account. Those funds are excused from the 120-day statement rule on the depletion path. On the qualifier path, they still need two months of statements. But brokerage balances count at 100% there and only 80% on the depletion path. If the plan is a smaller loan, the qualifier path is usually the cleaner fit.
Consider a younger early retiree with most of the $500,000 in a 401(k) under 59½. The qualifier path counts it at 90%. The depletion path counts it at 70%. That gap can be the difference between a file that fits and one that does not.
What About a Rental?
Everything above applies to a principal residence or second home, except where noted. If the purchase is a rental, you are in a different lane.
Investment property can use the depletion path, but at lower leverage of 65% on a purchase. A rental investor with no income usually fits better on a DSCR loan. 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 CFPB’s text of Regulation Z exempts credit extended primarily for a business purpose, and the agency’s compliance guide says such exempt loans are not eligible for qualified-mortgage status. That is why no personal income proof is part of the file.
The test is coverage: gross monthly rent divided by the full housing payment, meaning principal, interest, taxes, insurance and any HOA dues. A ratio of 1.00 is break-even. On a purchase, the appraiser’s rent schedule sets the rent, not the tenant’s lease history.
Coverage below 1.00 does not automatically end the file. Scotsman Guide notes that some non-QM lenders will go below 1.0 when the borrower has other assets to cover the shortfall. Select lenders in the network offer sub-1.00 programs, with leverage and terms adjusted. This is where the $500,000 earns its keep. Larger reserves and lower leverage can offset thin coverage, subject to lender guidelines.
Here is the decision a $500,000 investor actually faces. Each rental consumes a down payment, closing costs and reserves. One larger property and several smaller ones split the same cash differently. Often rent, not cash, becomes the binding limit on price.
Business-purpose treatment has limits. A borrower cannot buy a rental and then live in it. Using cash-out proceeds for personal purposes can also undo the business-purpose treatment.
Spend Versus Qualify: The Tension Nobody Explains
Money used for the down payment is gone. It cannot also be the pool that qualifies you.
Run the numbers on a borrower who puts a large share of the $500,000 into the down payment. The remaining pool shrinks. On the qualifier path, the pool must still cover the whole loan. On the depletion path, the remaining pool is divided by 60, so the derived income drops. A bigger down payment lowers the loan, but it also lowers what you qualify on.
The stronger play for most borrowers is a modest down payment, a smaller loan and a seasoned pool that clearly covers it. That is a judgment call, not a rule. Some borrowers would rather put more down and accept a tighter file. Either way, the lender wants to see the numbers before you commit to a contract price.
Key Terms Defined
Asset qualifier: a path where eligible assets, after credit percentages, must cover the whole loan, 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 will not count.
Seasoning: the length of time funds must sit in an account, shown by statements.
DSCR: gross monthly rent divided by the full housing payment on a rental.
Debt-to-income: monthly debts divided by monthly income, the test that derived income must pass.
Alternatives to Compare
| Option | What it trades off |
|---|---|
| Smaller loan, same assets | Lower price, easier file |
| Bigger down payment | Smaller loan, smaller qualifying pool |
| Pay cash | No loan, but no liquidity left |
| Add a co-borrower with income | Adds a documented income file |
| Wait and season funds | Cleaner statements, delayed purchase |
Risks After Approval
Approval is a test on the day of the file. It is not a plan for the next decade. When assets carry the loan, the loan continues while the balance may fall. A market drop can shrink a securities-heavy pool. Monthly draws shrink it further.
Keep a liquidity cushion beyond the lender’s minimum. If the home is a rental, remember that short-term rental rules can vary by city, county, HOA, and property type, so investors should confirm local rules before relying on projected rental income. Prepayment penalties are also common on investor loans.
Local prices matter as well. The same approved amount buys very different homes in different markets. Use local sales data to check your target against the amount the lender will support.
Tax treatment varies; consult a qualified professional before selling assets or withdrawing from retirement accounts to fund a purchase.
What to Gather
- Two months of statements for every qualifying account, plus 120-day-old statements if you are on the depletion path.
- A written source for any large recent deposit.
- A government ID and credit authorization.
- For a rental: entity documents if the loan will be made to an LLC, subject to lender program eligibility, plus any leases and the property address for the appraisal and rent schedule.
- Proof the funds sit in regulated accounts.
Clean statements give the lender fewer preventable questions. They do not guarantee approval.
Frequently Asked Questions
Can I get a mortgage with no income if I have $500,000 in the bank?
Yes, through select asset-based programs, subject to underwriting. The qualifier path documents no income and relies on the assets covering the loan. The depletion path turns assets into income. Credit, statements and the property are still reviewed.
What is the minimum credit score?
The qualifier path publishes a 600 floor. The depletion path follows the lender’s score and loan-amount matrix, and a first-time investor on that path needs 700. A housing history of 0x30x12 is the standard, and one 30-day late in the last twelve months is considered case by case.
Do I have to sell my investments?
No. Assets stay in your accounts on both paths. They are documented and counted, not liquidated or pledged as collateral. You will need to sell or move whatever you use for the down payment and closing costs.
Do retirement accounts count?
Yes, at a discount that varies by path. On the qualifier path a 401(k) or IRA counts at 90% under 59½ and 100% after. On the depletion path retirement accounts count at 70% at any age.
Does this work for a rental property?
Rarely as an owner-occupied program. Investment property is allowed only on the depletion path, at lower leverage. Most rental buyers use a DSCR loan instead, which looks at the property’s rent. Lendmire’s consumer mortgage lending is licensed in 16 states, so confirm availability in your state.
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 brokerage serving self-employed and high-net-worth borrowers in 16 states. Bank statement, P&L-only, 1099-only and asset-based mortgages are arranged through wholesale lending channels; Lendmire brokers the financing and the lender underwrites each application. Scotsman Guide named Lendmire a Top Mortgage Workplace in both 2025 and 2026.
Investors who want the broader program framework can review how DSCR loans work.
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References
1. CFPB – Regulation Z § 1026.3, Exempt transactions
2. CFPB – ATR/QM Small Entity Compliance Guide
3. Scotsman Guide – Invest in Your Future
This article is part of Lendmire’s asset-based mortgage program — full qualification details, guidelines, and scenarios live on the program page.
Related reading: Can You Buy a Second Home in Indiana on Assets Instead of Income? · Can You Relocate to Indiana and Buy a Home on Assets Before You Have Local Income? · Can You Relocate to Virginia and Buy a Home on Assets Before You Have Local Income?
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.