The Quick Read: Yes, but only on the asset depletion path, and at lower leverage than a primary home gets. The assets-only qualifier path does not cover investment property. Many Ohio rental buyers find that a DSCR loan, which qualifies primarily on property-level rental income covering the payment, fits better, subject to lender guidelines.
- On the asset depletion path, an Ohio investment property can reach up to 65% loan-to-value on a purchase and 60% on a cash-out refinance, through select programs.
- Your eligible assets are discounted, then divided by 60 months to create qualifying income.
- That income runs through a debt-to-income test, so your personal balance sheet qualifies the file, not the rent.
- Seasoned, documented statements are required. “No income documentation” never means “no documentation.”
- If the rental covers its own payment, DSCR is usually the first lane to price.
How Does Asset Depletion Turn a Portfolio Into Income?
Asset depletion is a calculation, not a withdrawal. A lender counts a share of your eligible assets, divides the total by 60 months, and treats the result as monthly income. Nothing is sold, pledged, or drained.
Picture a retiree with $1,500,000 in securities at an 80% credit and $300,000 in cash at 100%. That counts as $1,500,000 of usable assets. Divide by 60 months and you get $25,000 of monthly qualifying income. That figure is illustrative, and the lender’s own calculation governs.
That income then has to carry the full housing payment and your other monthly debts through the debt-to-income test. The new Ohio rental’s payment goes into that test. A big portfolio does not automatically mean a big loan. The haircuts and the 60-month divisor shrink the number fast.
Across Lendmire’s wholesale network, this is the consumer-purpose path. It suits cash-heavy, income-light buyers: retirees, people who sold a business, inheritance or settlement recipients, and early-retired professionals.
Two Asset Paths, and Only One Reaches Rentals
The network offers two asset-based paths, and a borrower is reviewed on one at a time.
The asset qualifier path needs eligible assets that equal or exceed the entire loan amount. No employment or income is documented. It covers principal residences and second homes only. Investment property is not part of it.
The asset depletion path is the one that reaches rentals. Through select programs, loan amounts run from $125,000 to $3,500,000. Leverage on this path looks like this:
- Investment property: up to 65% on a purchase or rate-and-term refinance, and 60% on a cash-out refinance.
- Principal residence or second home: up to 80% on a purchase or rate-and-term refinance, and 60% on a cash-out refinance.
Cash-out proceeds never count as qualifying assets. These are ceilings, not offers, and every file is underwritten individually.
Buying a rental this way means putting meaningfully more of your own cash into the deal. At 65% leverage on a purchase, the remaining 35% plus closing costs comes from you. That brings up the double-duty problem covered below. Leverage, reserves, and pricing vary by lender and program; the final terms follow the full file review.
Which Assets Count on the Depletion Path?
Cash and CDs count in full. Everything volatile or restricted gets discounted. Here is how the depletion path treats each type, subject to underwriting:
| Asset | 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% |
Some assets are not eligible on this path at all: custodial accounts, deferred compensation, escrow accounts, foreign funds, cash on hand, stock options, and non-vested restricted stock units. Cryptocurrency, precious metals, collectibles, and borrowed or pledged funds are not published as eligible either. The documented route is converting them to a seasoned cash balance in a regulated account, with the lender reviewing the source.
What Else Does the Lender Check?
Assets are documented, always. The depletion path asks for statements at least 120 days old at application, plus the most recent statement within 45 days. Funds from a business sale, inheritance, or legal settlement are excused from that seasoning, though the lender still reviews the source.
Minimums matter here:
- Qualified assets must be at least the lesser of $1,000,000 or 1.25 times the loan balance.
- If asset depletion is your only income source, you need at least $250,000 in liquid assets.
- Asset-derived income can supplement documented income, such as a pension, up to a 45% debt-to-income ratio. When it supplements, the minimum-assets rule is waived.
Credit follows the lender’s score and loan-amount matrix. A first-time investor on this path needs a 700 score. Housing history is 0x30x12, though one 30-day late in the last twelve months is considered case by case. Multiple bankruptcies are not eligible, and a housing event needs four years of seasoning.
Why Is DSCR Usually the Better Rental Lane?
For most rentals, DSCR fits better because it qualifies the property instead of you. Lenders divide the property’s monthly rent by its monthly obligation (principal, interest, taxes, insurance, and any HOA dues). The borrower’s personal income is not the qualifier.
Lender guidelines differ here. A 1.00 coverage ratio is a common select-program floor. Programs below 1.00 are available through select lenders in the network, but leverage and terms adjust. Reserves still apply on the subject property.
Many Ohio markets offer rents that run high relative to purchase price, which is why coverage often works. That is a general pattern, not a promise for any one property.
The structural difference is not minor. Asset depletion loans are consumer mortgages. That brings personal vesting, a debt-to-income test, and limited LLC flexibility. DSCR loans are designed for non-owner-occupied investment properties, and they can close in an LLC, subject to lender program eligibility. Because they are business-purpose investor loans, they are reviewed differently from a standard owner-occupied mortgage.
That distinction is also the legal reason the two lanes split. Federal rules exempt credit extended primarily for a business or investment purpose from the consumer-mortgage framework. The Federal Register text of the ability-to-repay rule confirms that investment-purpose loans count as business-purpose loans. The test looks at the purpose of the loan, not the label on the property, per Compliance Alliance. That is why a true rental usually moves to DSCR, while a buyer who plans real personal use may land in a consumer path.
| Path | What it qualifies | Rental purchase? |
|---|---|---|
| Asset qualifier | Assets cover the whole loan | No, primary or second home only |
| Asset depletion | Your assets, divided by 60 months | Yes, at 65% purchase leverage |
| DSCR | The property’s rent vs. its payment | Yes, the usual rental lane |
| Bank statement | Income shown by deposits | Mostly for borrowers with deposit-documented income |
Lendmire’s complete DSCR loans guide walks through the property-level side in detail.
When Does Asset Depletion Still Win on a Rental?
Asset depletion ignores rent. That helps when a property is high-priced and low-rent, so the coverage ratio would be thin.
Occupancy decides the lane, not the label. If your own use is substantial, the file is almost certainly consumer credit anyway, and asset depletion is the mechanism to explore.
Some borrowers combine approaches, subject to lender guidelines. A weak coverage ratio may be supplemented with assets in some programs. That is lender-specific, so ask before assuming it.
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. For how an STR buyer compares the two routes, see Lendmire’s explanation of how an STR investor qualifies on asset depletion versus rental income.
Same Dollars, Two Jobs
On the depletion path, your liquid pool does double duty. It is the income base and the cash to close. The more you stretch it, the thinner your cushion after closing.
The same dollar cannot count as qualifying assets and also fund the down payment. At 65% leverage on a purchase, the down payment is large. Closing costs come on top. Sequence the numbers before you shop: what you need in cash, what stays behind as assets, and what that leaves for income. Check your post-closing balance before choosing an asset path. Terms vary by lender guidelines, property type, leverage, credit profile, and full file review.
Retirement accounts add a wrinkle. They count at 70% on this path, and nothing needs to be withdrawn.
Key Terms Defined
Asset depletion: A method that divides discounted eligible assets by 60 months to create qualifying income.
Asset qualifier: A path where eligible assets cover the entire loan and no income is documented.
Haircut: The share of an asset’s balance a lender will not count.
Seasoning: How long funds have sat in your account, shown by statements.
Debt-to-income (DTI): Your monthly debts as a share of qualifying income.
DSCR: Debt service coverage ratio, meaning the property’s rent divided by its monthly payment.
What Causes Files to Stall?
Most problems are fixable before you apply.
- Unseasoned funds. Money moved in recently needs a documented source unless it came from a business sale, inheritance, or settlement.
- Ineligible assets. Crypto, stock options, and unvested shares do not count until converted and seasoned.
- Overstretching the pool. A strong income figure with a thin cash cushion is a weak file.
- Wrong lane. A pure rental that could clear DSCR may not need depletion at all.
- Market swings. Securities are discounted, and balances move, so statement dates matter.
A practical checklist: gather statements for every account, confirm your credit profile, decide the property’s intended use, and compare asset depletion against DSCR on the same property.
Frequently Asked Questions
Can I use asset depletion on a rental I want to buy through an LLC?
Usually not on the depletion path, because that is a consumer mortgage with personal vesting. LLC purchases are generally a DSCR conversation, subject to program terms.
Do I need to sell my investments to qualify?
No. The method is a calculation, not a liquidation. The lender counts a share of your balances and leaves the accounts in place. Statements still prove ownership, value, and seasoning.
Can I use my IRA or 401(k)?
Yes, on the depletion path they count at 70% at any age. The asset qualifier path treats them differently, but it does not cover rentals.
Can I take cash out of an Ohio rental on asset depletion?
Through select programs, cash-out on an investment property reaches up to 60% loan-to-value on this path.
What if the rent doesn’t cover the payment?
A DSCR below 1.00 is reviewed by select lenders, with leverage and terms adjusting. Some programs may layer assets in. Eligibility depends on the lender, property, and credit profile.
Next Steps
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’s consumer mortgage lending is licensed in 16 states, Ohio among them. As a broker, it arranges loans through select lenders. It does not lend or approve them.
Ohio’s mix of lower price points and steady rents is why the first question for most buyers is whether the rent covers the payment.
Lendmire’s asset-based mortgage in Ohio page presents the program for Ohio borrowers.
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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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. Cornell LII – 12 CFR 1026.3
2. Federal Register – Ability-to-Repay and Qualified Mortgage Standards
3. Compliance Alliance – Regulation Z and Investment Properties
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 Depletion Income Differs on a Primary Home vs Rental · How Asset Depletion Converts Savings Into Qualifying Income · How to Qualify for a Bank Statement or Asset Depletion Loan as a Rental Investor
Guides: Asset-Based Mortgage in Ohio
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.