The Quick Read: It depends on which of the two asset-based paths you use: the asset qualifier path asks for two months of statements on each account, while the asset depletion path wants an account history of about four months, plus a recent statement. Michigan does not change the count. The program sets it, and the lender confirms it during underwriting.
- Asset qualifier path: two months of statements for each qualifying account, plus 60 days of seasoning.
- Asset depletion path: statements at least 120 days old at application, plus the most recent statement within 45 days.
- Same figures in Michigan: the program numbers do not change by state, and the figures here are subject to underwriting through select programs.
- Not the same as bank-statement income loans, which use deposits as income and look back much further.
What “Asset-Based” Means Here
Asset-based means the loan is qualified on what you own, not on a paycheck. Two paths exist, and a borrower uses one at a time.
On the asset qualifier path, your eligible assets, after the credit percentages below, must equal or exceed the entire loan amount. No employment or income is documented. On the asset depletion path, eligible assets are divided by 60 months to create a monthly qualifying income. That income must carry the housing payment and your other debts through the debt-to-income test.
This is a consumer mortgage for a principal residence or second home. The depletion path also allows investment property. It suits retirees, people who sold a business, and anyone living on a portfolio, whose balances are large and whose documented income is small.
Lendmire is a mortgage broker, not a lender. It places these files through select lenders in its network and is licensed for consumer lending in 16 states, Michigan among them. Every file is underwritten individually, and nothing here is a commitment to lend.
How Many Months, Path by Path
Each path has its own statement window, so name the path before you gather paper. The two windows measure different things and should never be blended.
| Item | Asset qualifier path | Asset depletion path |
|---|---|---|
| Statements | 2 months per qualifying account | 120+ days old, plus one within 45 days |
| Seasoning | 60 days | Built into the 120-day rule |
| Minimum score | 600 | The lender’s matrix |
| Leverage | 80% purchase, 75% refinance | See the Leverage, Loan Size and Credit section below |
On the asset qualifier path, every account you count needs two months of statements and 60 days of seasoning. Seasoning means the money has sat in your account long enough that the lender trusts where it came from. Across our wholesale network, this is the lighter paper load of the two.
On the asset depletion path, the lender wants the oldest statement to be at least 120 days old at application, plus a current one within 45 days. In practice, your account history should reach back about four months. A few funds are excused from that seasoning: proceeds from a business sale, an inheritance, or a legal settlement.
Why the difference? The qualifier path counts your balances against the whole loan. The depletion path turns your balances into income for years of payments. The lender wants more proof that the money is stable.
Why Do Numbers You Find Online Disagree?
Three things drive the disagreement, and most confusion comes from mixing them up.
First, programs differ. Lenders set their own overlays, which are extra rules layered on the basic guidelines. Some ask for more months, and some tighten how old a statement can be.
Second, the purpose of the statements differs. Statements that verify assets only prove the money exists. Statements used as income, such as in a bank-statement loan, are analyzed deposit by deposit. That is why bank-statement income loans typically look back a year or more. Your deposits are the income, so the lender needs a long pattern.
Third, the product name gets blurred. People use “asset-based” for asset loans, DSCR loans and agency programs. A conventional agency loan often asks for a couple of months of asset statements, but that is that program’s rule, not this one’s.
Which Statements Does Each Account Need?
Every account you use to qualify needs its own complete statements. Accounts you leave out need nothing, so choose them deliberately.
Here are the shares of each balance that count. Know the path first, because the percentages differ.
| Account type | Qualifier path | Depletion path |
|---|---|---|
| Checking, savings, money market | 100% | 100% (cash accounts) |
| Certificates of deposit | 100% | 100% |
| Brokerage and securities | 100% | 80% |
| Retirement (401(k), IRA) | 90% under 59½, 100% at 59½+ | 70% at any age |
| Real-estate equity | Not listed | 60% |
Some assets don’t count on the depletion path: custodial accounts, deferred compensation, escrow accounts, foreign funds, cash on hand, stock options, and non-vested restricted stock units. Cryptocurrency, precious metals and collectibles are not published as eligible on either path. The documented route is to convert them to cash in a regulated account and let the lender review the source.
Retirement statements carry a small twist. They should show your vested balance, and the lender may ask how you could access the money. A brokerage statement should show the holdings and the balance, not just a summary page.
What a Clean Statement Package Looks Like
A clean package beats a long one. Underwriters rarely question a clean file, but they stop on gaps.
- Every page, including pages that are blank or say “this page intentionally left blank.”
- Your name (or the name of the account owner the lender accepts) on every statement.
- Matching dates across accounts, so balances line up with the same period.
- Joint accounts with a co-owner may need a letter confirming you can use the funds.
- Quarterly accounts (some brokerage and retirement plans) simply give you one statement per quarter. Submit the most recent one and ask your loan officer how the dates are counted.
If the file sits long enough that statements age out, the lender will ask for fresh ones. Pull current statements as soon as your processor asks.
Large Deposits and Recent Movement
A deposit that doesn’t fit your pattern will draw a question. Expect to explain it in writing and show the paper trail.
Moving money between your own accounts is normal. Show both sides of the transfer: the withdrawal on one statement and the deposit on the other. Review your accounts before you apply and note anything that looks unusual.
Borrowed or pledged funds do not count. Neither does cash-out loan money on the depletion path, because cash-out proceeds never count as qualifying assets. Funds you plan to use for closing also come out of what you can count, so you cannot count the same dollars twice.
A Worked Example
Picture a retiree buying a home with an $800,000 loan on the asset qualifier path. She holds $330,000 in brokerage accounts, $300,000 in a 401(k) and $200,000 in savings. She is under 59½.
The credit percentages work out like this:
- Brokerage at 100%: $330,000.
- The 401(k) at 90%: $270,000.
- Savings at 100%: $200,000.
That counts $800,000 of usable assets, which matches the loan. She would provide two months of statements for each of the three accounts, and the funds must be seasoned 60 days. She would not need employment or income documents.
Now take a borrower on the depletion path. He has $1,500,000 in securities and $300,000 in cash. Securities count at 80% ($1,200,000) and cash at 100% ($300,000), for $1,500,000 of usable assets. Divided by 60 months, that is $25,000 of monthly qualifying income. That income then carries the housing payment and other debts through the debt-to-income test. His statements need to be at least 120 days old, plus one within 45 days.
These are illustrations. The lender’s own calculation governs.
Leverage, Loan Size and Credit
Leverage is separate from statements, but you need to know it before you gather paper. These are ceilings, not offers, and all are subject to underwriting.
On the asset qualifier path, loans go up to $4,000,000, with up to 80% loan-to-value on a purchase and 75% on a refinance. The minimum credit score is 600. Reserves are not required at or below 75% loan-to-value.
On the asset depletion path, loans run from $125,000 to $3,500,000. On a principal residence or second home, leverage reaches 80% on a purchase or rate-and-term refinance and 60% on a cash-out refinance. On an investment property, it is 65% on a purchase or rate-and-term refinance and 60% on a cash-out. Qualified assets must be at least the lesser of $1,000,000 or 1.25 times the loan balance. When depletion is your only income source, you also need at least $250,000 liquid. The lender’s matrix sets the credit score, and a first-time investor needs 700.
For more on how cushion months differ from statement months, see Lendmire’s piece How Many Months of Reserves Does an Asset Qualifier Mortgage Require?.
Is Anything Michigan-Specific?
The statement count is not. It comes from the program and the lender, not from Michigan law, and the same figures apply to a Michigan borrower as to anyone else.
What is Michigan-specific is your own account mix. Credit union accounts are common here, and the statements work the same way, as long as they show your name, balance and dates. A trust or estate account may need extra documents to show you can access the funds. A brokerage account held out of state is fine if it is in a regulated institution. State facts such as taxes and local prices are context, not program parameters.
DSCR and Bank-Statement Loans: Don’t Mix Them Up
A DSCR loan, short for debt service coverage ratio, is a different product. It is for rentals, and it qualifies primarily on property-level rental income covering the payment, subject to lender guidelines. Statements on a DSCR file prove that you have the cash to close and a cushion afterward. They are not used to rebuild your income, so the window is shorter than the bank-statement income product. Lendmire’s complete DSCR loans guide covers that path in full.
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. Under the federal rule on exempt transactions, credit to acquire or improve non-owner-occupied rental property is deemed business purpose. Not every investment property qualifies, though: Compliance Alliance notes that exemption depends on occupancy, purpose and unit count. An asset-based loan on a home you will live in is a consumer mortgage, and the usual consumer disclosures apply.
Common Mistakes
- Counting accounts you don’t need. Each added account means more statements and more questions.
- Skipping blank pages. A missing page is a common reason for a request for more paper.
- Mixing up the paths. Two months of statements is the qualifier path. Depletion has its own clock.
- Parking cash at the last minute. Fresh deposits without a paper trail can break seasoning.
- Assuming “no income documentation” means no documentation. The assets are documented on both paths.
- Confusing statement months with reserve months. They are separate numbers.
Tax treatment varies; consult a qualified professional before relying on any deduction.
Frequently Asked Questions
Can I use a statement that is only one month old?
Not alone. On the asset qualifier path you need two months per account, and on the depletion path you need an older statement plus a current one. A single recent statement is part of the package, not the whole thing.
Do retirement account statements follow the same rules?
Yes, the same windows apply to the path you use. The credit differs: 90% under 59½ and 100% after on the qualifier path, 70% at any age on the depletion path. Expect the lender to ask how you could reach the money.
What if my account only sends quarterly statements?
Submit the most recent quarterly statement and explain the schedule. Your loan officer can tell you how the lender counts the dates. Do not skip the account if you need it to qualify.
Does the statement count change for a refinance?
The program sets the count, not the transaction. Leverage does change: the qualifier path allows 75% on a refinance against 80% on a purchase. Your lender may add other items for a refinance, such as payoff information.
What happens if I don’t have the full number of months?
Then that account usually can’t count yet. The funds must season first, with a few exceptions on the depletion path for business-sale, inheritance and settlement funds. Waiting, or using a different account, is usually the fix.
Next Step
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. You can reach the team at 828-256-2183.
For most Michigan borrowers, the real work is sorting accounts and cleaning up deposits before the application, not counting months.
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
1. CFPB – 12 CFR 1026.3 Exempt transactions
2. 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 a Margin Balance Is Treated on an Asset Depletion Mortgage · Is an Asset-Based Mortgage Reported to Credit Bureaus Like Any Other Mortgage? · What Counts as an Asset Statement for a Mortgage?
Guides: Asset-Based Mortgage in Michigan
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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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.