The Quick Read: The asset qualifier path is built, through select programs and subject to underwriting, for a retiree whose eligible balances cover the entire loan. The asset depletion path suits a retiree who needs those balances turned into monthly qualifying income to carry the payment. Lendmire, a mortgage broker, places both through lenders in its wholesale network. Its consumer mortgage lending is licensed in 16 states, Virginia among them. The program figures below do not change by state, and a borrower is qualified on one path at a time.
- Asset qualifier path: eligible assets, after the credit percentages, must equal or exceed the whole loan. No employment or income is documented. Loans run up to $4,000,000.
- Asset depletion path: usable assets divided by 60 months become monthly qualifying income. That income must carry the housing payment and other debts through the debt-to-income test. Loans run from $125,000 to $3,500,000.
- Retirement accounts: the qualifier path counts them at 90% under age 59½ and 100% at 59½ or older. The depletion path counts them at 70% at any age.
- Property types: the qualifier path covers principal residences and second homes. The depletion path adds investment property, at lower leverage.
Neither path is a loan product on its own. Each is a way of proving you can repay, and the lender’s own calculation governs on every file.
Side-by-Side
The table shows how the two paths line up through select programs in Lendmire’s network. Every figure is a ceiling or floor, not an offer, and is subject to underwriting.
| Factor | Asset Qualifier Path | Asset Depletion Path |
|---|---|---|
| Review basis | Assets cover the entire loan | Assets become monthly income (60-month divisor) |
| Income documented | None | Derived income; documented income may supplement |
| Property types | Principal residence, second home | Principal residence, second home, investment property |
| Max LTV, purchase | 80% | 80% (65% on investment property) |
| Max LTV, refinance | 75% | 80% rate-and-term, 60% cash-out (65% / 60% on investment) |
| Loan amounts | Up to $4,000,000 | $125,000 to $3,500,000 |
| Retirement account credit | 90% under 59½, 100% at 59½+ | 70% at any age |
| Statement requirements | Two months per account, 60-day seasoning | Statements 120 days old plus one within 45 days |
| Credit | 600 minimum score | Lender’s matrix (700 for a first-time investor) |
| Reserves | None at or below 75% LTV | No published reserve months |
| Entity vesting | Generally the individual borrower | Generally the individual borrower |
A few rows deserve a plain-English gloss. Loan-to-value, or LTV, is the loan as a percentage of the property’s value. Qualifier-path cash-out proceeds are set by the lender and are not published, so no figure appears for them. On the depletion path, cash-out proceeds never count as qualifying assets.
Key Terms Defined
Asset qualifier path: a way to qualify on assets alone. Eligible balances, after credit percentages, must equal or exceed the entire loan.
Asset depletion path: a way to qualify by converting usable assets into monthly income. The lender divides them by 60 months and tests the result against your debts.
Credit percentage (haircut): the share of an account balance that counts. Cash may count at 100% while a retirement account counts at less.
Usable assets: the total of your balances after those percentages are applied.
Seasoning: the time funds must sit in an account before they count. Seasoning rules differ by path.
Debt-to-income (DTI): monthly debts, including the new housing payment, divided by monthly qualifying income. Only the depletion path runs this test on asset-derived income.
Loan-to-value (LTV): the loan amount as a percentage of the property’s value.
How the Math Works for the Same Retiree
Picture a Virginia professional who retired early at 57, with a large portfolio and a modest pension. Take each path in turn. The figures below are illustrative, and the lender’s calculation governs.
Asset qualifier path. Say the loan is $800,000. The retiree holds $330,000 in brokerage accounts, $300,000 in a 401(k) and $200,000 in savings. Brokerage and savings count at 100%. The 401(k) counts at 90% because the retiree is under 59½, which is $270,000. Usable assets total $800,000, matching the loan, so the file is reviewed on assets alone. Nobody divides anything, and nobody asks about income.
Asset depletion path. Now say the retiree holds $1,500,000 in securities and $300,000 in cash. Securities count at 80%, or $1,200,000. Cash counts at 100%, or $300,000. Usable assets come to $1,500,000. Divide by 60 months and the result becomes the retiree’s monthly qualifying income. That income then carries the housing payment and other debts through the debt-to-income test.
The same IRA behaves differently on each path, and age matters. A $300,000 IRA held by a borrower age 59½ or older counts for $300,000 on the qualifier path and $210,000 on the depletion path. Our early retiree at 57 would see the qualifier path count it at 90%, or $270,000, until turning 59½. The older the retiree and the heavier the retirement accounts, the more the qualifier path favors them. The 59½ line is the age the IRS uses for early retirement withdrawals, and the qualifier path’s credit steps up at that age.
Other asset classes do not appear 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 to convert them into a seasoned cash balance in a regulated account. The lender reviews the source of those funds.
When the Asset Qualifier Path Is the Better Fit
The asset qualifier path wins when the portfolio is big enough to cover the loan outright and you would rather not build an income story. Through select programs, it is a good fit for these borrowers:
- Retirees with large, liquid balances. If brokerage, CD, money market and savings balances add up to the loan amount or more, the file is simple. Those accounts count at 100%.
- Borrowers 59½ or older with big retirement accounts. A 401(k) or IRA counts at 100% at that age. The depletion path would count it at 70%.
- Larger loans. The qualifier path reaches $4,000,000. The depletion path stops at $3,500,000, so anything above that range needs the qualifier path.
- Households with heavy existing debts. The qualifier path documents no income, so no derived income gets tested against a DTI ceiling. The lender’s repayment review rests on the assets.
- Buyers who want lean reserve rules. None are required at or below 75% LTV. Above that, on a purchase between 75% and 80% LTV, the lender sets them. Exact terms depend on the lender’s guidelines, property type, leverage, and a full review of the borrower’s file.
Credit is more forgiving here. The published floor is a 600 minimum score, subject to underwriting. Housing history of 0x30x12 is the standard, and one 30-day late in the last twelve months is considered case by case.
The cost is straightforward. Eligible assets must equal or exceed the entire loan, not just a slice of it. A retiree with $700,000 of eligible balances cannot use this path for an $800,000 loan. The leverage ceiling also differs from the depletion path’s. The qualifier path allows up to 80% on a purchase and 75% on a refinance, but only on a principal residence or second home. Funds need 60 days of seasoning, with two months of statements for each qualifying account.
When the Asset Depletion Path Is the Better Fit
The asset depletion path wins when the portfolio is large but smaller than the loan, or when the property is an investment property. The 60-month divisor converts a pile of assets into income, and that income can do things the qualifier path cannot.
- Assets fall short of the loan. A retiree with $1,500,000 in qualifying balances can reach a loan well above that figure. The assets only need to produce enough monthly income to pass the DTI test. The program minimum is qualified assets of at least the lesser of $1,000,000 or 1.25 times the loan balance, and never below $250,000 liquid when asset depletion is the only income source.
- Retirees with documented income. Social Security, a pension or annuity can be documented alongside assets. Asset-derived income may supplement documented income up to a 45% DTI, and when it supplements, the minimum-assets rule is waived.
- Cash-out refinances and refinances generally. Principal residence and second home go up to 80% on a purchase or rate-and-term refinance and 60% on a cash-out. Cash-out proceeds never count toward the assets.
- Investment property. This is the only asset-based path that reaches it. Leverage tops out at 65% on a purchase or rate-and-term refinance and 60% on a cash-out. A first-time investor needs a 700 score, subject to underwriting.
The cost is the income test. Cash and CDs count at 100%, securities at 80%, private stock at 75%, retirement accounts at 70% and real-estate equity at 60%. 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. Statements must be at least 120 days old at application, plus the most recent statement within 45 days. Funds from the sale of a business, an inheritance or a legal settlement are excused from that seasoning.
A housing event, such as a foreclosure, needs 4 years of seasoning on this path. Multiple bankruptcies are not eligible.
What About Buying a Rental?
Neither path is the usual way to buy a rental. 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. A DSCR loan is reviewed primarily on property-level rental income covering the payment, subject to lender guidelines. The retiree’s portfolio then matters mainly for reserves and strength, not as income to be converted.
That explains why the depletion path’s investment-property option is narrow. It exists through select programs, at 65% on a purchase, and it requires the retiree to pass a personal DTI test. A property whose rent covers its own payment can often be financed without running that personal math. DSCR loans can be vested in an entity, subject to lender program eligibility. A bank statement program is a separate option for borrowers who document income with deposits.
What Each Path Costs You
Neither path is free. Here is what a retiree gives up on each.
On the qualifier path: you commit a large share of your balances to the loan. The assets must match the whole loan, and the lender wants those funds seasoned and documented. A market drop before application shrinks your usable total. A retiree who is thin on liquidity afterward should think about whether the loan fits their life, not just their file.
On the depletion path: you accept the DTI test. Your derived income is capped by how much counts after the credit percentages. Retirement accounts at 70% cut deeply into the total for older retirees. Other debts eat into the ratio, and the lender’s score and loan-amount matrix sets the credit floor.
Both paths are documented. A phrase like no traditional personal-income documentation, pay stubs or employment verification never means no documentation. The CFPB describes a lender’s ability-to-repay review as resting on income, on assets other than the home securing the loan, or on both. Statements for every account you rely on are the evidence, and the lender verifies what it counts.
Retirees most often stumble in these places:
- Counting 100% of everything. Credit percentages are real. A portfolio of securities and retirement accounts counts for noticeably less than its statement total.
- Mixing the two paths. You are on one at a time. Qualifier percentages do not apply to a depletion file, and the reverse is also true.
- Treating the home as an asset. The home you are financing does not count toward qualifying.
- Ignoring seasoning. New deposits and moved funds need time on the statements. Recent transfers can stall a file.
- Forgetting that the loan is a consumer mortgage. Standard consumer disclosures apply to these loans, unlike business-purpose DSCR loans.
Tax treatment can depend on how the funds are used and how the property is held; borrowers should keep clear records and speak with a qualified tax professional before relying on any deduction.
The Verdict
Pick the asset qualifier path if your eligible balances equal or exceed the whole loan, you want no income documented, you hold large retirement accounts at 59½ or older, or your loan runs above $3,500,000. It is simpler and counts more of your money.
Pick the asset depletion path if your assets fall short of the loan, you have documented Social Security or pension income to add, you want a cash-out on a principal residence or second home, or you are buying an investment property with a first-time-investor profile that meets the 700 score. It is more flexible, but it asks more of your DTI.
Many Virginia retirees will fit one path cleanly and not the other. A few will fit both, and then the choice comes down to which counts more of their particular mix of accounts. For a pure rental purchase, DSCR is usually the better tool.
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 or spend my assets to qualify?
No. Both paths count balances you already hold, and neither requires liquidating them. Whether funds used for the down payment and closing costs still count toward your total depends on the lender’s own calculation. Cash-out proceeds from the loan never count as qualifying assets on the depletion path.
Can I use both paths on the same loan?
No. A borrower is qualified on one path at a time. The depletion path can combine asset-derived income with documented income such as Social Security or a pension, up to a 45% DTI. That is a supplement within one path, not a blend of the two.
Do my 401(k) and IRA balances count?
Yes, at different percentages. On the qualifier path they count at 90% under age 59½ and 100% at 59½ or older. On the depletion path they count at 70% at any age. Both are subject to underwriting and documentation.
Can either path finance a rental property?
Only the depletion path reaches investment property, at up to 65% on a purchase or rate-and-term refinance and 60% on a cash-out, subject to underwriting. The qualifier path covers principal residences and second homes. Most rental purchases move to DSCR financing, which looks at the property’s rent.
Will cryptocurrency or precious metals count?
Neither path publishes them as eligible. The documented route is converting them into a seasoned cash balance in a regulated account, with the source of funds reviewed by the lender. Pledged or borrowed funds do not count either.
About Lendmire
Lendmire is a mortgage brokerage (NMLS# 2371349) licensed for consumer mortgage lending in 16 states, arranging bank statement and other alternative-documentation mortgages — P&L-only, 1099-only and asset-based paths — through a wholesale lending network. Eligibility is determined by the lender on each file. Scotsman Guide named Lendmire a Top Mortgage Workplace in both 2025 and 2026.
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References
1. IRS – Topic 557, Tax on Early Distributions from IRAs
2. CFPB – 12 CFR 1026.43, Minimum Standards for Transactions Secured by a Dwelling
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 Virginia Rental Property on Asset Depletion Income? · Can You Buy Out an Ex-Spouse With an Asset Qualifier Refinance? · How to Buy Before You Sell in Indiana Using an Asset Qualifier Mortgage
Guides: Asset-Based Mortgage in Virginia
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
Required disclosures. Lendmire (NMLS# 2371349) operates as a licensed mortgage broker, not a direct lender or depository. The discussion in this article is general in nature and should not be relied upon as financial, legal, or tax advice — every investment scenario is unique and should be reviewed by a qualified professional. Any loan inquiry is subject to lender underwriting, and this article is not a commitment to lend or a guarantee of approval. Mortgage rates, loan terms, and program guidelines vary by borrower, property, and state, and may change without notice. Equal Housing Opportunity. Verify licensure at NMLS Consumer Access.