The Quick Read: The asset qualifier path covers the whole loan with your eligible assets and documents no income, while the asset depletion path turns those assets into monthly income that must pass a debt-to-income test. A retiree with a large, liquid portfolio and little other income often fits the qualifier path. A retiree whose eligible assets fall short of covering the full loan, but who can still turn them into enough monthly income, often fits depletion.
- Qualifier path: eligible assets, after credit percentages, must equal or exceed the entire loan amount.
- Depletion path: usable assets divided by 60 months become qualifying income.
- One path at a time: a borrower is qualified on one path, never a blend of both.
- Leverage differs: up to 80% on a purchase on both paths for a primary residence or second home, with different refinance and cash-out limits, subject to underwriting.
- Documented either way: no traditional personal-income documentation, pay stubs or employment verification are needed, but your statements and credit are fully reviewed.
The Honest Answer: Who Each Path Is Really For
Think of the two paths as two different questions. The qualifier path asks: do your assets cover this loan outright? The depletion path asks: if we turn your assets into income, can you carry the payment?
If you sold a business, received an inheritance, or have seven figures sitting in brokerage and savings accounts, the qualifier path is often the cleaner fit. It skips the debt-to-income math altogether. If your portfolio is large but the loan is large too, depletion may work better, because it only needs the assets to generate enough imputed income.
Many Florida retirees also carry Social Security or a pension. On the depletion path, asset-derived income can supplement that documented income, subject to underwriting. The qualifier path documents no income at all, so a borrower on that path is qualified on assets alone.
Here is a wrinkle worth knowing. The two labels are not standardized across the industry. Some lenders use “asset qualifier” and “asset depletion” as near-synonyms, and others split them by divisor or by a post-closing asset test. The definitions here describe how programs in Lendmire’s wholesale network work, and a lender elsewhere may define them differently. Ask any lender how it defines the term before you compare.
Side-by-Side
The table describes programs placed through select lenders in Lendmire’s wholesale network, subject to underwriting. It compares structure only. Pricing is not compared.
| Factor | Asset Qualifier | Asset Depletion |
|---|---|---|
| Review basis | Assets cover the entire loan | Assets ÷ 60 months = income, then DTI |
| Income documented | None | Derived income; may supplement real income |
| Purchase leverage | Up to 80% | Up to 80% primary/second home |
| Refinance leverage | Up to 75% | 80% rate-and-term; 60% cash-out |
| Investment property | Not on this path | Up to 65% purchase; 60% cash-out |
| Loan amounts | Up to $4,000,000 | $125,000 to $3,500,000 |
| Retirement accounts | 90% under 59½; 100% at 59½+ | 70% at any age |
| Securities | Brokerage at 100% | 80% |
| Seasoning | 60 days; two months of statements | Statements 120 days old plus one within 45 days |
| Credit | 600 minimum | The lender’s matrix |
| Reserves | None at or below 75% LTV | No published reserve months |
| Minimum assets | Must cover the whole loan | Lesser of $1,000,000 or 1.25x the loan; $250,000 liquid floor if sole income |
Two things stand out. The qualifier path credits assets more generously, but it asks for far more of them because they must cover the full loan. The depletion path haircuts more, yet it works with a smaller pile relative to the loan.
When the Asset Qualifier Is the Better Fit
The qualifier path wins when your liquid balances are large compared with the loan. It is built for the borrower who would rather show a full statement than build an income story.
You have the cash and liquid investments. Brokerage, CDs, money market, and savings all count at 100% on this path. Picture a retiree buying a Florida home with an $800,000 loan. Say the portfolio holds $330,000 in brokerage accounts, $300,000 in a 401(k) and $200,000 in savings. The brokerage counts at 100% ($330,000), the 401(k) counts at 90% if the borrower is under 59½ ($270,000), and savings counts at 100% ($200,000). That totals $800,000 of usable assets, which is reviewed on assets alone. This is illustrative, and the lender’s own calculation governs.
You are 59½ or older. Retirement balances count at 100% on the qualifier path once you pass that age. On depletion they stay at 70%. For a retiree with most of the net worth in an IRA, that gap can decide the path.
You want the simplest file. There is no debt-to-income test to pass because no income is documented. The lender’s ability-to-repay review rests on the assets. Credit still matters, with a 600 minimum on this path.
You are refinancing a primary or second home. Up to 75% is available on a refinance. Whether cash-out is allowed on this path, and at what leverage, is set by the lender and not published, so ask before you plan around it.
The trade-off is plain. You tie up a lot of statements. The assets must also season for 60 days, so money that just landed in an account may need to sit before it counts.
When the Asset Depletion Path Is the Better Fit
Depletion fits when the portfolio is big, but the loan is too large for assets to cover outright. It also fits when you want to buy an investment property, which the qualifier path does not cover.
The loan is large relative to your assets. Consider an investor with $1,500,000 in securities and $300,000 in cash. The securities count at 80% ($1,200,000) and the cash at 100% ($300,000), for $1,500,000 usable. Divide by 60 months and you get $25,000 of monthly qualifying income. That income then carries the housing payment and other debts through the debt-to-income test. Again, illustrative only.
You have other income to stack. Social Security, a pension, or required distributions can be documented and combined with asset-derived income, up to a 45% debt-to-income ratio. When assets only supplement documented income, the minimum-assets rule is waived. This stacking exists only on the depletion path.
You want an investment property. On depletion, an investment property is available at 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. For a pure rental, many Florida retirees look at a DSCR loan instead, which qualifies primarily on property-level rental income covering the payment, subject to lender guidelines. Lendmire’s complete DSCR loans guide walks through that third path.
You hold varied assets. Depletion accepts securities at 80%, private stock at 75%, retirement accounts at 70%, and real-estate equity at 60%. Statements must be at least 120 days old at application, with the most recent within 45 days. Funds from a business sale, inheritance, or legal settlement are excused from that seasoning.
The trade-off: depletion applies haircuts, and the qualifying minimum is high. You need the lesser of $1,000,000 or 1.25 times the loan balance in qualified assets, and never below $250,000 liquid when depletion is your only income source.
What Does Not Count on Either Path
Cryptocurrency, precious metals, collectibles, business accounts beyond your ownership share, and pledged or borrowed funds are not published as eligible on either path. The documented route is to convert them into a seasoned cash balance in a regulated account, with the lender reviewing the source.
On depletion, the following are explicitly out: 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.
Key Terms Defined
Asset qualifier: a path where eligible assets must equal or exceed the whole loan, with no income documented.
Asset depletion: a path where usable assets divided by 60 months become qualifying income for the debt-to-income test.
Debt-to-income (DTI): your monthly debts, including the new housing payment, divided by your monthly income.
Seasoning: how long funds must sit in an account before a lender counts them.
Haircut: the share of an account’s balance a lender discounts when counting it.
Does the Law Treat These Loans Differently?
A little, and only briefly. These are consumer mortgages for a home you live in or use as a second home. That puts them under the federal rule that a lender must reasonably confirm you can repay, and it allows assets, not just income, to do that job. A rental loan is different: federal rules exempt credit extended for a business purpose, and the CFPB’s Truth in Lending guide treats a non-owner-occupied rental as business-purpose credit. That is why DSCR loans do not run through your personal income at all.
The line is not always obvious. Regulators’ official commentary says the primary purpose is decided case by case. So a Florida retiree buying a part-time residence lands on the consumer side, while a pure rental follows the business-purpose side.
The Balanced Verdict
Choose the asset qualifier if your eligible balances cover the entire loan, you want no income documented, and you are buying or refinancing a primary residence or second home. It tends to reward retirees past 59½ with big retirement balances.
Choose asset depletion if the loan is larger than your assets can cover, if you want to supplement Social Security or pension income, or if you are buying an investment property on the consumer path. Expect more haircuts and a higher minimum-asset test.
Consider DSCR if the property is a pure rental. It is reviewed on the property, so your assets matter mainly for cash to close and reserves.
Neither path is a free pass. Both document your accounts, review your credit, and are underwritten file by file. The figures here are ceilings and floors, not offers, and they are subject to underwriting. Lendmire’s consumer mortgage lending is licensed in Florida among 16 states. 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.
Frequently Asked Questions
Do I have to sell my investments to use either path?
No. The assets are counted, not sold. Only the funds you need for the down payment, closing costs and any required reserves are actually spent, and those funds cannot also be counted toward qualifying.
Can Social Security or a pension combine with these programs?
Only on the depletion path. Asset-derived income can supplement documented income up to a 45% debt-to-income ratio, and the minimum-assets rule is waived when it supplements. The qualifier path documents no income at all, so it does not use Social Security or pension income.
Do retirement accounts count the same on both paths?
No. On the qualifier path, a 401(k) or IRA counts at 90% under age 59½ and 100% at 59½ or older. On depletion, retirement accounts count at 70% at any age. That gap often settles which path fits.
Can I use either path for a rental property?
Only depletion covers an investment property, at up to 65% on a purchase or rate-and-term refinance and 60% on a cash-out. For a rental you will not live in, many retirees compare it with a DSCR loan, which looks at the property’s rent instead of your assets.
Is a minimum credit score required?
Yes. The qualifier path has a 600 minimum. The depletion path follows the lender’s matrix, and a first-time investor on that path needs 700. Approval is never promised and every file is underwritten individually.
About Lendmire
Lendmire (NMLS# 2371349) is a mortgage broker that places asset-based mortgages through select lenders in its wholesale network. Scotsman Guide named Lendmire a Top Mortgage Workplace in both 2025 and 2026.
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References
2. CFPB Truth in Lending Act guide
3. Federal Reserve posting of CFPB official staff commentary on Regulation Z
This article is part of Lendmire’s asset-based mortgage program — full qualification details, guidelines, and scenarios live on the program page.
Related reading: Asset Qualifier vs Asset Depletion for an Ohio Retiree · How a 401(k) Counts Toward a Florida Asset Qualifier Mortgage Under Age 59½ · Delayed Financing vs. an Asset Qualifier Loan After Paying Cash for a Florida Home
Guides: Asset-Based Mortgage in Florida
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.