The Quick Read: These are two separate paths, and you qualify on one at a time. The qualifier path lets your eligible assets cover the entire loan, with no income documented. The depletion path converts your assets into monthly income and tests it against your debts, subject to underwriting.
- Qualifier path: eligible assets must equal or exceed the full loan amount.
- Depletion path: usable assets divided by 60 months become qualifying income.
- Leverage differs: the qualifier path reaches 80% on a purchase, while depletion tops out at 80% on a primary residence and 65% on an investment property.
- Documentation: both paths document the assets. Only the income paperwork goes away on the qualifier path.
Here is the honest answer on who each one is for. The qualifier path suits a retiree whose liquid balances are large compared to the loan. If your statements can show the whole loan amount, you skip the income math entirely. The depletion path suits a retiree whose assets are big but not big enough to cover the loan. It also fits a retiree who wants to buy an investment property on personal assets, or who has Social Security or a pension to stack on top. Neither path is better in the abstract. The right one is whichever your statements support.
Lendmire is a broker. It places these loans through select lenders in its wholesale network, and every figure below is subject to underwriting. Montana is one of the 16 states where Lendmire’s consumer mortgage lending is licensed. The program figures don’t change by state, so a Montana borrower sees the same ceilings and floors as anyone else.
Side-by-Side
| Factor | Asset qualifier path | Asset depletion path |
|---|---|---|
| Review basis | Assets must cover the full loan | Assets become monthly income, then a debt-to-income test |
| Income documented | None | Derived income, plus other documented income if used |
| Property types | Primary residence, second home | Primary residence, second home, investment property |
| Max leverage | 80% purchase, 75% refinance | 80% purchase or rate-and-term on a home; 65% on investment property |
| Loan size | Up to $4,000,000 | $125,000 to $3,500,000 |
| Retirement accounts | 90% under 59½, 100% at 59½ or older | 70% at any age |
| Seasoning | 60 days, two months of statements | Statements 120 days old plus one within 45 days |
| Reserves | None at or below 75% LTV | No published reserve months |
| Vesting | Typically an individual borrower | Typically an individual borrower |
A few terms in that table need plain definitions. LTV is loan-to-value, the loan as a share of the property’s value. Seasoning is how long money has sat in your accounts. Debt-to-income, or DTI, compares your monthly debts to your monthly income. Vesting is how the title is held. Both paths are consumer-purpose loans, so vesting is usually in your own name, and trust vesting depends on the lender.
Key Terms Defined
Asset qualifier path: a program that qualifies you when eligible assets, after the credit percentages, equal or exceed the whole loan amount.
Asset depletion path: a program that divides usable assets by 60 months to create a monthly qualifying income.
Haircut: the share of an account’s balance a lender does not count. A 70% haircut means only 30 cents of every dollar counts.
Reserves: money left over after closing that the lender may want you to hold.
How the Qualifier Path Works
The qualifier path asks one question. Do your eligible assets equal or exceed the entire loan? If yes, you qualify on assets alone. No employment is documented and no income is calculated.
Across the wholesale network, the qualifier path counts most balances at full value. Brokerage accounts, certificates of deposit, money market and savings all count at 100%. Retirement accounts count at 90% if you are under 59½ and 100% once you reach 59½. Accounts combine, so you can mix them.
Run the shape of it. Say the loan is $800,000. You hold $330,000 in brokerage accounts, which counts at 100%, or $330,000. You hold $300,000 in a 401(k) while under 59½, which counts at 90%, or $270,000. You hold $200,000 in savings, which counts at 100%, or $200,000. Together that is $800,000 of usable assets, so the loan is reviewed on assets alone. The lender’s own calculation governs, and this is illustration only.
A Montana retiree over 59½ gets a better result from the same 401(k). It counts in full on this path. The 59½ line echoes the IRS 10% additional tax on early distributions per IRS Topic 557, and tax treatment varies, so consult a qualified tax professional.
Other terms to know:
- Leverage: up to 80% on a purchase and 75% on a refinance, for a primary residence or second home.
- Cash-out: the lender sets whether cash-out proceeds are allowed on this path, and at what leverage. That figure is not published.
- Credit: a 600 minimum score.
- Reserves: none required at or below 75% LTV. Above that, the lender sets them. Final terms depend on lender guidelines, property type, leverage, and the borrower’s complete credit picture.
Documentation still exists. You hand over two months of statements for every qualifying account, and the funds need 60 days of seasoning. “No income documentation” never means “no documentation.”
How the Depletion Path Works
The depletion path turns a portfolio into a paycheck on paper. The lender applies haircuts, adds up the usable total, and divides by 60 months. That number is your monthly qualifying income. It then has to carry the housing payment and your other debts through the debt-to-income test.
The haircuts are steeper than on the qualifier path. Cash and certificates of deposit count at 100%. Securities count at 80%, private stock at 75%, and real-estate equity at 60%. Retirement accounts count at 70% at any age. Equity in the home you are financing cannot be the asset pool. That is a lender or program rule, not something set by Regulation Z’s ability-to-repay rule.
Here is the shape of the math. Say you hold $1,500,000 in securities, which counts at 80%, or $1,200,000. You also hold $300,000 in cash, which counts at 100%. That is $1,500,000 usable. Divided by 60 months, you get $25,000 of monthly qualifying income. That income then carries the housing payment and other debts through the DTI test. Again, illustration only.
Several other limits apply on this path:
- Minimum assets: the lesser of $1,000,000 or 1.25 times the loan balance. It is never below $250,000 liquid when depletion is your only income source.
- Supplementing income: asset-derived income can add to documented income, such as a pension, up to a 45% DTI. When it supplements, the minimum-assets rule is waived.
- Leverage: 80% on a purchase or rate-and-term refinance for a primary residence or second home. On a cash-out refinance, 60%. For an investment property, 65% on a purchase or rate-and-term and 60% on a cash-out. Cash-out proceeds never count as qualifying assets.
- Credit: the lender’s score and loan-amount matrix. A first-time investor on this path needs a 700 score.
- Housing history: 0x30x12. A housing event needs four years of seasoning.
Not everything counts here. Custodial accounts, deferred compensation, escrow accounts, foreign funds, cash on hand, stock options and non-vested restricted stock units are not eligible. Cryptocurrency, precious metals, collectibles and pledged or borrowed funds are not published as eligible on either path. The documented route is converting them to 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
Choose the qualifier path when your liquid balances comfortably exceed the loan. A retiree who sold a business, or received an inheritance or settlement, often fits. So does one who has simply saved for decades and wants a modest loan against a large portfolio.
It also wins when you want simplicity. No income calculation means no DTI test. Your Social Security amount, pension and monthly debts stop mattering to the qualification math. The lender’s ability-to-repay review rests on the assets.
The credit percentages favor you if you hold retirement money. At 59½ or older, a 401(k) or IRA counts at 100% here and 70% on the depletion path. On a $300,000 retirement balance, that gap is large.
Leverage is better too. The qualifier path reaches 80% on a purchase and 75% on a refinance, and it supports larger loan amounts than the depletion path.
The tradeoffs are real:
- Pool size: your usable assets must cover the entire loan, not just a down payment. A $1,000,000 loan needs $1,000,000 of eligible assets. That is a high bar.
- Occupancy: the path covers principal residences and second homes. An investment property is not in scope on this path.
- Reserves above 75% LTV: the lender sets them, so a high-leverage file may need more liquid cushion.
- Seasoning: money moved in recently may not count until it has aged 60 days. These specifics are subject to lender guidelines and a full review of property, leverage, and credit.
That last item bites people. A large deposit last month can leave the pool short on the day you apply. Move funds early, and keep the paper trail clean.
When the Asset Depletion Path Is the Better Fit
Pick depletion when your assets are large but fall short of the loan amount. The loan only has to be carried by the derived income, not covered by the pool. A retiree with $1,500,000 usable can qualify on a loan that the qualifier path would never reach.
Depletion is also the path when investment property is in play. It allows investment property at up to 65% on a purchase and 60% on a cash-out. If you are buying a true rental for cash flow, a different lane may fit better. 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. Lendmire’s complete DSCR loans guide explains that lane in full. Depletion is the tool when you would rather qualify on personal assets, or when the rent is thin.
It also stacks with other income. If you draw Social Security or a pension, the derived income adds to it, up to a 45% DTI. That helps a retiree who is income-light but not income-free.
Depletion has its own costs:
- Steeper haircuts: retirement accounts count at 70%, and securities at 80%. The same portfolio produces a smaller usable total than on the qualifier path.
- A DTI test: your other debts matter. A car loan or a second mortgage eats into the derived income.
- A bigger asset minimum: the floor is the lesser of $1,000,000 or 1.25 times the loan, and never below $250,000 liquid.
- Lower leverage on investment property: 65% on a purchase leaves you more cash to bring.
- Older statements: they must be 120 days old at application, plus one within 45 days.
The 60-month divisor is fixed here. It means a portfolio’s usable total drives everything, so each haircut point matters.
Which Path for a Montana Retiree?
Start with two numbers. What is the loan, and what is your eligible total under each table? Weigh both before choosing.
Picture a retiree with a large brokerage account and a seasoned IRA, buying a second home. If the IRA counts at 100% and the total clears the loan, the qualifier path is cleaner and carries higher leverage. If the total falls short, the depletion path may still work, provided the derived income carries the housing payment and debts. Picture the same retiree adding a pension. Depletion can supplement that pension.
Think about reserves, too. On either path, the portfolio is also your safety net after closing. A tight pool on paper can leave you thin in cash. Weigh the loan size against what you want left over.
And if the balance is large, the explainer on how a retiree on asset depletion handles a jumbo balance covers that case.
The Balanced Verdict
The qualifier path rewards a big pool. It is simple, it has higher leverage and it counts retirement money better after 59½. But the pool must cover the whole loan.
The depletion path rewards flexibility. It stretches a smaller pool into a loan through income math, supplements a pension and allows investment property. But it applies steeper haircuts, runs a DTI test and caps leverage lower.
For many retirees the deciding factor is simply the ratio of assets to loan. Lots of cash against a modest loan points to the qualifier path. Fewer assets against a larger loan point to depletion. Either way, programs change and every file is underwritten individually.
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. Both paths count balances as they sit in your accounts. The lender uses the value for its calculation and reviews statements. Confirm with your loan officer that the program does not require pledging an account, since pledging can have separate consequences.
Can I use both paths on the same loan?
No. You qualify on one path at a time. The qualifier path covers the loan with assets alone. The depletion path runs derived income through a DTI test. Blending the two tables is not allowed.
Does home equity count as an asset?
Not in the property you are financing. Equity in the subject home cannot be the asset pool. On the depletion path, equity in other real estate counts at 60%. On the qualifier path, home equity is not among the published eligible assets.
Does a Social Security check or pension help?
On the depletion path, yes. Asset-derived income can supplement documented income up to a 45% DTI. On the qualifier path, no income is documented, so those checks do not enter the qualification.
Does “no income documentation” mean no paperwork?
No. Both paths document your assets with statements and seasoning. The qualifier path skips only the income paperwork, and the lender reviews the source of large deposits.
Lendmire’s asset-based mortgage in Montana page presents the program for Montana borrowers.
About Lendmire
Lendmire (NMLS# 2371349) is a mortgage brokerage serving self-employed and high-net-worth borrowers in 16 states. Bank statement, P&L-only, 1099-only and asset-based mortgages are arranged through wholesale lending channels; Lendmire brokers the financing and the lender underwrites each application. 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
2. CFPB Regulation Z, Section 1026.43
This article is part of Lendmire’s asset-based mortgage program — full qualification details, guidelines, and scenarios live on the program page.
Related reading: Brokerage Dividends vs Asset Depletion for a Retiree on a Jumbo Loan · Asset Qualifier vs Asset Depletion for an Heir · Asset Seasoning Rules on an Asset Qualifier vs. an Asset Depletion Loan
Guides: Asset-Based Mortgage in Montana
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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- 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.