The Quick Read: Personal, verifiable accounts in the borrower’s own name count, and cash-type accounts count at full value while retirement accounts and securities are discounted. The share that counts depends on which of two paths the file runs, so the same balance can be worth different amounts on each, subject to underwriting.
- Qualifier path: brokerage, CDs, money market and savings count at 100%. A 401(k) or IRA counts at 90% under age 59½ and 100% at 59½ or older.
- Depletion path: cash and CDs count at 100%, securities at 80%, private stock at 75%, retirement accounts at 70% at any age, and real-estate equity at 60%.
- Business accounts, crypto, precious metals, collectibles and borrowed or pledged funds are not published as eligible on either path.
- The down payment, closing costs and any required reserves come out of the pool before anything qualifies.
- These are program ceilings and floors through select lenders in Lendmire’s network, not offers.
California buyers who hold large balances and show little paycheck income are the people this loan is built for. Retirees, business sellers, inheritance recipients and early-retired professionals fit the profile. The program figures do not change by state. A California borrower faces the same percentages as anyone else, with higher loan sizes because of local prices.
One scope note. This is a consumer mortgage for principal residences and second homes. Investment property is available only on the depletion path. Rental financing that is reviewed on the property’s rent is a different product, the DSCR loan, covered in Lendmire’s complete DSCR loans guide.
Which Path Fits Your Balance Sheet?
Pick the path first, because every percentage below hangs on it. A borrower runs one path at a time, and the two columns never blend.
On the asset qualifier path, eligible assets, after the credit percentages, must equal or exceed the entire loan amount. No employment or income is documented. Leverage runs up to 80% on a purchase and 75% on a refinance, on a principal residence or second home. Loans go up to $4,000,000, with a 600 minimum credit score.
On the asset depletion path, usable assets are divided by 60 months. The result is monthly qualifying income, and that income has to carry the full housing payment and other debts through the debt-to-income test. Loan amounts run $125,000 to $3,500,000. Leverage on a principal residence or second home reaches 80% on a purchase or rate-and-term refinance and 60% on a cash-out. Credit follows the lender’s matrix, and a first-time investor needs 700.
Rule of thumb: if your assets cover the loan outright, look at the qualifier path. If your assets are big but smaller than the loan, the depletion path turns them into income.
Which Accounts Count, Account by Account
Cash and cash equivalents carry the highest credit. Here is the full lookup, by path.
| Account type | Qualifier path | Depletion path |
|---|---|---|
| Savings, money market | 100% | 100% (cash accounts) |
| Certificates of deposit | 100% | 100% |
| Brokerage accounts | 100% | 80% (securities) |
| 401(k), IRA | 90% under 59½, 100% at 59½+ | 70% at any age |
| Private stock | Not published | 75% |
| Real-estate equity | Not published | 60% |
Qualifier-path accounts can combine. A borrower can stack brokerage, savings and retirement balances toward the loan amount.
Cash and cash equivalents
Checking, savings, money market and CDs are the cleanest. They count in full on both paths. Across the wholesale network, these accounts clear review with the fewest questions, because ownership and value are visible on one statement.
Brokerage and securities
Stocks, bonds and mutual funds count in full on the qualifier path. On the depletion path they count at 80%, because market value moves. Private stock gets 75% on the depletion path only.
Retirement accounts
This is where the paths split most. On the qualifier path, a 401(k) or IRA counts at 90% under 59½ and 100% once the borrower reaches 59½. The age line follows the IRS rule that a traditional IRA distribution before 59½ is generally subject to an additional 10% tax, per IRS Publication 590-B. On the depletion path the credit is flat at 70% at any age.
Nothing is sold. The accounts stay invested, and the figure is a qualifying convention, not a withdrawal plan. Pledging an IRA as loan security would be treated as a distribution under the same IRS publication, and an asset-based mortgage does not pledge the account.
Real-estate equity
Equity counts only on the depletion path, at 60%. It never counts on the qualifier path. Federal ability-to-repay rules also bar relying on the value of the dwelling being financed, as 12 CFR 1026.43 requires the lender to consider income or assets other than the dwelling.
What Does Not Count
A clean list saves a failed submission.
- Custodial accounts, deferred compensation, escrow accounts, foreign funds, cash on hand: not eligible on the depletion path.
- Stock options and non-vested restricted stock units: not eligible on the depletion path.
- Funds from non-regulated financial companies: not eligible on the depletion path.
- Crypto, precious metals, collectibles: not published as eligible on either path.
- Business accounts beyond your ownership share: not published as eligible.
- Pledged or borrowed funds: not published as eligible.
- Cash-out proceeds: never count as qualifying assets on the depletion path.
There is a documented route for the unpublished classes. Convert them to cash, season that cash in a regulated account, and the lender reviews the source. It does not make them count at a percentage. It makes them cash.
Seasoning and Statements
The assets are documented on both paths. No income documentation never means no documentation.
On the qualifier path, each qualifying account needs 60 days of seasoning and two months of statements. On the depletion path, 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. The lender still reviews where they came from.
Checklist to gather, per account:
1. Statements in your own name for the required months.
2. Proof of ownership on joint or trust-titled accounts.
3. A written source explanation for any large recent deposit.
4. Retirement account statements showing vested balances.
Minimums on the Depletion Path
Depletion has size thresholds the qualifier path lacks. Qualified assets must be at least the lesser of $1,000,000 or 1.25 times the loan balance. When assets are the only income source, liquid assets can never fall below $250,000.
Asset income can also supplement documented income, up to a 45% debt-to-income ratio. When it supplements, the minimum-assets rule is waived. That helps a borrower with a modest pension or part-time income who wants the portfolio to fill a gap.
On reserves, the qualifier path requires none at or below 75% loan-to-value, and above that the lender sets them. The depletion path publishes no reserve months.
The Same Dollars Cannot Do Two Jobs
Here is the trade-off that trips people. The pool that qualifies you is reduced by what the transaction itself consumes. Cash spent on the down payment is no longer available as a qualifying asset. Plan the sequence before you move money.
Two worked examples, both illustrative. The lender’s own calculation governs, subject to underwriting.
Qualifier path. Take an $800,000 loan. Say the borrower holds $330,000 in brokerage accounts (100% = $330,000), $300,000 in a 401(k) under 59½ (90% = $270,000) and $200,000 in savings (100% = $200,000). That counts $800,000 of usable assets and meets the loan amount on assets alone.
Depletion path. Say a borrower holds $1,500,000 in securities (80% = $1,200,000) and $300,000 in cash (100% = $300,000). That is $1,500,000 of usable assets, divided by 60 months, for $25,000 of monthly qualifying income. That income then carries the housing payment and other debts through the debt-to-income test.
Titling, Trusts and Joint Accounts
The account has to be yours, and the lender reviews ownership. Lenders that rely on assets typically also check the current value, location and length of existence of each asset.
Joint accounts with a spouse generally need both names documented. Trust treatment varies by program, so expect questions on anything other than a straightforward arrangement. Business accounts are the common miss, because owning a company does not make its operating cash yours.
Where This Sits Next to DSCR
An asset-based loan qualifies the borrower. A DSCR loan is reviewed for the property, on rent covering the payment. An investor with strong liquid assets and a weak-cash-flow property may price the asset-based route. An investor with a property that clears coverage on its own rent usually has no reason to use it. Rental financing is a different product, and Lendmire arranges it separately.
For borrowers leaning on 401(k)s and IRAs, the guide to counting retirement accounts as reserves covers that side.
Frequently Asked Questions
Do I have to sell my investments or pledge my accounts?
No. The accounts stay invested and in your name. The balances are a qualifying measure, not collateral and not a withdrawal plan. A retirement account is never pledged, which matters because the IRS treats using an IRA as loan security as a distribution.
Does my 401(k) count if I am under 59½?
Yes, subject to underwriting. On the qualifier path it counts at 90% under 59½ and 100% after. On the depletion path it counts at 70% at any age.
Can I use crypto or a business account?
Not directly. Neither is published as eligible on either path. The documented route is converting the funds to a seasoned cash balance in a regulated account, with the lender reviewing the source.
Can asset income be added to my pension or Social Security?
Yes, on the depletion path. Asset-derived income may supplement documented income up to a 45% debt-to-income ratio, and the minimum-assets rule is waived when it does.
Does this work for a rental property?
Only on the depletion path, at up to 65% on a purchase or rate-and-term refinance and 60% on a cash-out for an investment property. The qualifier path covers principal residences and second homes. The asset-based product is not a DSCR loan.
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 is a broker that places these loans through select lenders in its network. Program terms change, nothing here is a commitment to lend, and every file is underwritten individually.
About Lendmire
Lendmire — NMLS# 2371349 — is a mortgage broker that arranges bank statement, P&L-only, 1099-only and asset-based home financing in 16 states through wholesale lenders, on primary residences, second homes and investment properties. Every option is subject to the lender’s guidelines and full underwriting. Scotsman Guide named Lendmire a Top Mortgage Workplace in both 2025 and 2026.
Get Started
Ready to find the right loan for you?
In about 30 seconds you can review financing options available for your home or investment property. No commitment required.
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
This article is part of Lendmire’s asset-based mortgage program — full qualification details, guidelines, and scenarios live on the program page.
Related reading: Savings Account vs Brokerage Account: Which Counts More on an Asset-Based Mortgage? · Can Private Company Stock Count Toward an Asset Depletion Mortgage? · Asset Qualifier Mortgage vs Bank Statement Mortgage
Guides: Asset-Based Mortgage in California
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.