The Quick Read: The answer depends on what the $1 million is held in. On the asset depletion path, usable assets after the lender’s percentage credits are divided by 60 months. All cash counts in full and produces about 1.67% of the balance per month, while securities or retirement accounts count for less and produce a smaller share.
- Cash and certificates of deposit count at 100%, securities at 80%, private stock at 75%, retirement accounts at 70%, and real-estate equity at 60%, through select programs and subject to underwriting.
- The down payment and closing costs come out of the pool before the math, so the real number is often smaller than the headline.
- The qualifying income goes into a debt-to-income test. It is not a withdrawal plan, and you do not sell anything.
- If your assets can cover the whole loan, a separate path is reviewed on assets alone, with no income calculation.
- Colorado borrowers use the same program figures as everyone else. Only local prices, taxes, and insurance change.
What $1 Million Produces, Asset by Asset
The same $1 million produces five different incomes depending on what it is held in. The table shows the asset depletion path only: balance times the credit percentage, divided by 60 months. Each result is shown as a share of the $1,000,000 headline balance, per month. These are illustrative figures. The lender’s own calculation governs, and the program is placed through select lenders subject to underwriting.
| Where the $1,000,000 sits | Counts at | Usable assets | Monthly income, share of $1M |
|---|---|---|---|
| Cash accounts or CDs | 100% | $1,000,000 | about 1.67% |
| Securities | 80% | $800,000 | about 1.33% |
| Private stock | 75% | $750,000 | 1.25% |
| Retirement accounts | 70% | $700,000 | about 1.17% |
| Real-estate equity | 60% | $600,000 | 1.00% |
To turn a row into dollars, take that percentage of your balance. The top row is one-sixtieth of the full $1 million. The bottom row is a bit more than half of that.
Few people hold one type of asset. A mixed portfolio lands somewhere between the rows. Picture $400,000 in cash, $400,000 in securities, and $200,000 in a retirement account. That counts as $400,000 plus $320,000 plus $140,000, or $860,000 usable. Divided by 60, it produces about 1.43% of the headline balance per month. That sits between the cash-only and retirement-only rows.
The divisor is where programs differ most sharply. Agency-style methods spread assets over a much longer divisor, 360 months, which produces far less income from the same balance. Non-QM programs placed through Lendmire’s wholesale network use the shorter 60-month window on the depletion path. That is why asset-rich borrowers who miss out on agency loans often get a workable number here.
Two Paths: Assets Cover the Loan or Assets Become Income
Before you run any number, pick the path. A borrower is qualified on one path at a time, and the figures never blend. Across the programs in Lendmire’s network, the choice usually comes down to how large the loan is compared with your balances.
| Factor | Asset qualifier path | Asset depletion path |
|---|---|---|
| How it works | Assets must equal or exceed the whole loan | Assets become monthly income, tested against debts |
| Income documented | None | Derived from assets (60-month divisor) |
| Leverage on a purchase | Up to 80% | Up to 80% (home); 65% (investment property) |
| Leverage on a refinance | Up to 75% | 80% rate-and-term, 60% cash-out (home); 65% and 60% (investment) |
| Loan amounts | Up to $4,000,000 | $125,000 to $3,500,000 |
The asset qualifier path applies to principal residences and second homes. 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. Eligible assets after those credits must equal or exceed the entire loan amount. How the down payment fits into that pool is something your loan officer should run before you commit.
The depletion path is the one this article is about. It is the only one of the two that reaches investment property, so a Colorado investor buying a rental with personal-income qualification lands here.
How the Math Runs, Step by Step
The lender follows the same sequence on every depletion file. Each step can shrink the number you started with.
1. Inventory the accounts. Every account you plan to count needs statements.
2. Apply the percentage credits. Cash and CDs count at 100%, securities at 80%, private stock at 75%, retirement at 70% at any age, and real-estate equity at 60%.
3. Subtract what the transaction uses. Funds that go to the down payment and closing costs generally cannot also count as qualifying assets. The lender’s own calculation decides the exact treatment.
4. Divide by 60 months. The result is monthly qualifying income. It is calculated, not received.
5. Add other documented income if you have it. Social Security or a pension can sit beside the asset income.
6. Run the debt-to-income test. The asset income carries the full housing payment and your other debts. Taxes and insurance are part of that payment and vary by county.
Here is a worked version with modeled assumptions. Say you hold $700,000 in securities and $300,000 in cash, and you set aside $200,000 of the cash for the down payment and closing costs. The securities count at 80%, or $560,000. The remaining $100,000 of cash counts in full. That is $660,000 usable, divided by 60, or 1.1% of the headline balance per month.
The headline said $1 million. The pool the lender divided was about two-thirds of that. Most disappointment on this topic comes from step three.
Why Your Number Lands Below the Simple Math
The simple math is $1,000,000 divided by 60, about 1.67% of the balance each month. Three things pull a real file below it: haircuts, deductions, and the minimum-assets requirement.
Haircuts are the percentage credits above. A securities-heavy household gives up 20% of the balance before dividing. A retirement-heavy household gives up 30%.
Deductions are the second drag. If you buy several properties, the pool shrinks each time. Model it before you sign a contract on the second one, not after.
The third is minimum assets. The depletion path requires qualified assets of at least the lesser of $1,000,000 or 1.25 times the loan balance. When asset depletion is your only income source, qualified assets never drop below $250,000 in liquid form. A $1 million balance held in securities counts at 80%, so it may not clear the $1,000,000 bar on its own. A balance of that size in cash will. Those thresholds are published guidelines for select programs, and each file is underwritten individually.
If you also have documented income, assets can supplement it up to a 45% debt-to-income ratio. When they supplement, the minimum-assets rule is waived. That makes the asset-income route more forgiving for a retiree with a pension and a portfolio than for one living entirely on the portfolio.
What Does Not Count
Several assets that feel like wealth do not count on the depletion path.
- Custodial accounts
- Deferred compensation
- Escrow accounts
- Foreign funds
- Cash on hand
- Stock options
- Non-vested restricted stock units
- Funds from non-regulated financial companies
Cryptocurrency, precious metals, collectibles, pledged or borrowed funds, and business accounts beyond your ownership share are not published as eligible on either path. Not published means just that: no percentage is available for them. The documented route is to convert them into a seasoned cash balance in a regulated account. The lender then reviews the source of the funds.
Cash-out proceeds from the new loan never count as qualifying assets. The loan cannot lift itself.
From Income to Buying Power in a Colorado Purchase
The qualifying income is not the maximum payment. It is the income side of a debt-to-income test, and your existing debts and the proposed housing payment sit on the other side. A larger income number and fewer debts give you more room.
Colorado does not change the program. A Colorado resident uses the same percentages, divisor, and leverage ceilings as a borrower in any of the other states where Lendmire arranges consumer mortgages. Lendmire is licensed for consumer lending in 16 states, Colorado among them. Colorado shapes the other half of the equation: purchase prices, and the taxes and insurance that sit inside the monthly obligation.
Front Range homes and mountain resort properties price very differently. A resort-town second home carries a larger housing obligation per dollar of income than a Front Range condo. On the depletion path, a second home can reach 80% on a purchase, while an investment property tops out at 65%. A buyer eyeing a ski-town rental should plan for a larger cash contribution than one buying a home to live in.
Lendmire does not publish an implied purchase price for $1 million in assets, because the payment depends on the loan terms, taxes, and insurance. Your loan officer builds that figure from your actual file.
Four Borrowers With $1 Million Each
The same balance can yield very different results. These profiles are hypothetical and use only the depletion path’s percentages and 60-month divisor.
| Borrower | $1,000,000 held as | Usable assets | Monthly income, share of $1M |
|---|---|---|---|
| Retiree on a pension | $500,000 cash, $500,000 IRA | $850,000 | about 1.42% |
| Business-sale seller | $1,000,000 cash in a regulated account | $1,000,000 | about 1.67% |
| Tech executive | $600,000 securities, $400,000 unvested RSUs | $480,000 | 0.80% |
| Retiree with a rental | $1,000,000 in home equity | $600,000 | 1.00% |
Walk through the math on the first row. Cash is $500,000 at 100%. The IRA is $500,000 at 70%, or $350,000. Together that is $850,000. Divided by 60, it is about 1.42% of the headline balance per month.
The executive’s unvested RSUs are not eligible at all, so only the $600,000 in securities counts, at 80%, or $480,000. That is why a large paper net worth can still produce a small qualifying income.
The business-sale seller has an advantage beyond the percentage. Sale-of-business, inheritance, and legal-settlement funds are excused from the 120-day statement rule on the depletion path. Recently arrived money does not need a long history.
Working Backward From the Income You Need
Most buyers start with a house, not a balance. You can reverse the math in three steps.
1. Ask your loan officer how much monthly qualifying income the housing payment and your debts require.
2. Multiply that income by 60 to get the usable assets you need.
3. Divide by the credit percentage for your asset type to get the balance you need to hold.
Take a modeled case where the file needs $1,200,000 in usable assets. If you hold securities counted at 80%, you need $1,500,000 in securities. If you hold cash, $1,200,000 is enough. Retirement accounts at 70% would need roughly $1,714,000 held. That makes the point that cash is the most efficient asset for this program.
Why Assets Can Stand in for Paycheck Income
You may wonder why a lender can accept savings instead of a pay stub at all. The federal ability-to-repay rule asks creditors to consider and verify a borrower’s current or reasonably expected income or assets, along with debts and debt-to-income or residual income. The CFPB’s small entity compliance guide lays this out and notes the general standard sets no specific debt-to-income threshold. Another CFPB guide to the ability-to-repay rule adds that a creditor need only verify the income or assets it actually relies on.
The rule gives programs room to use assets. How the assets convert into income is each program’s own policy, which is why divisors and credit percentages differ across lenders.
When a Different Loan Fits Better
Asset depletion is not a DSCR loan. A DSCR loan is reviewed primarily on property-level rental income covering the payment, subject to lender guidelines. DSCR loans are designed for non-owner-occupied investment properties, and because they are business-purpose investor loans, they are reviewed differently from a standard owner-occupied mortgage.
Select lenders in the network review DSCR files below 1.00 coverage, with leverage and terms adjusting. A borrower whose rent falls short of a DSCR threshold might still prefer the asset route, because it leans on personal assets instead of the property. Borrowers who document income with deposits belong in a bank statement program instead. Pick the route that matches how you actually earn and hold money.
What the Lender Will Ask to See
The assets are documented on both paths. The program does not require income documentation on the qualifier path, but that never means no documentation.
- Qualifier path: 60 days of seasoning and two months of statements for each qualifying account.
- Depletion path: statements at least 120 days old at application, plus the most recent statement within 45 days.
- Credit: a 600 minimum score on the qualifier path, and the lender’s matrix on the depletion path. A first-time investor on the depletion path needs 700.
- Housing history: 0x30x12. One 30-day late in the last twelve months is considered case by case.
- Credit events: multiple bankruptcies are not eligible, and a housing event needs 4 years of seasoning on the depletion path.
Large or unsourced deposits need a paper trail. Tax treatment varies; consult a qualified professional before moving or selling assets for a purchase.
Key Terms Defined
Asset depletion: a method that turns savings and investments into a monthly qualifying income by dividing usable assets over a set number of months.
Usable assets: the balance that counts after the lender applies its percentage credits and removes funds used for the purchase.
Haircut: the discount a lender applies to an asset because its value can change or it carries taxes and penalties.
Qualifying income: the calculated monthly figure that goes into the debt-to-income test. You do not receive it.
Debt-to-income ratio: your monthly debts, including the new housing payment, compared with your qualifying income.
Seasoning: the length of time funds must sit in an account before the lender counts them.
Frequently Asked Questions
Does a $1 million balance count as full qualifying income?
Only if all of it is cash or CDs and none is used for the purchase. Securities count at 80%, retirement accounts at 70%, and real-estate equity at 60%, and funds used for the down payment and closing costs come out first. Most borrowers land well below that top figure.
Do I have to sell my investments?
No. The assets stay where they are. The lender uses them to calculate a qualifying income, and that income is a qualification convention, not a withdrawal schedule. You will need to show statements, and the balances have to remain in the accounts through the file.
Is $1 million enough to buy in Colorado?
It depends on the property, the leverage, and your other debts. A primary residence or second home can reach 80% leverage on a purchase on the depletion path, while an investment property tops out at 65%. The same $1 million supports a larger purchase in a lower-priced front Range area than in a resort town, subject to underwriting. Terms vary by lender guidelines, property type, leverage, credit profile, and full file review.
Do retirement accounts count in full?
Not on the depletion path, where they count at 70% at any age. On the asset qualifier path, they count at 90% under age 59½ and 100% at 59½ or older. These are published parameters for select programs, and your lender confirms them against your statements.
How is this different from a conventional mortgage?
A conventional loan typically leans on pay stubs and traditional personal-income documentation. This program leans on your documented balances instead. Agency rules for asset-based income are narrower and, on those programs, spread assets over a much longer period, so the asset route in the network often produces more usable income.
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 programs based on your statements, the property, credit profile, leverage, and your goals. Lendmire is a broker that arranges these loans through select lenders. It is not a commitment to lend, and every file is underwritten individually.
Lendmire’s asset-based mortgage in Colorado page presents the program for Colorado borrowers.
About Lendmire
Lendmire (NMLS# 2371349) is a mortgage broker licensed for consumer lending in 16 states. Scotsman Guide named Lendmire a Top Mortgage Workplace in both 2025 and 2026.
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References
1. CFPB Ability-to-Repay and Qualified Mortgage Rule Small Entity Compliance Guide
2. CFPB Ability-to-Repay and Qualified Mortgage Rule Compliance Guide
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 Much of Mutual Funds Counts Toward Asset Depletion Income? · Can You Buy a Michigan Rental Property on Asset Depletion Income? · How to Document a Colorado Asset Qualifier Mortgage Without an Employer
Guides: Asset-Based Mortgage in Colorado
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.