The Quick Read: The ceiling is the lesser of a leverage cap and, on one path, an asset-derived income test. Through select programs in Lendmire’s wholesale network, the asset qualifier path reaches up to $4,000,000 and the asset depletion path runs from $125,000 to $3,500,000, subject to underwriting.
- Asset qualifier path: up to 80% loan-to-value on a purchase and 75% on a refinance of a second home. Eligible assets, after credit percentages, must cover the entire loan.
- Asset depletion path: up to 80% on a purchase or rate-and-term refinance and 60% on a cash-out refinance of a second home. Usable assets divided by 60 months become qualifying income.
- Credit: a 600 minimum score on the qualifier path. The depletion path follows the lender’s matrix.
- Documents: assets are documented on both paths. Only employment and income documentation is skipped on the qualifier path.
A buyer in California usually fits one of these profiles: a retiree, a business seller, an heir, or a household living off a portfolio. Balances are large. Documented income is not. These programs were built for that gap. The figures above are ceilings, never offers, and every file is underwritten individually. Consumer mortgage lending through Lendmire is available in 16 states, and California is one of them.
Two Paths, One at a Time
An asset-based mortgage is a consumer home loan qualified on what you own instead of what you earn. Two separate paths exist, and a borrower is qualified on one at a time. Never blend their numbers.
The asset qualifier path asks one question. After the credit percentages are applied, do your eligible assets equal or exceed the whole loan? If yes, no employment or income is documented. The lender’s repayment-capacity review rests on the assets.
The asset depletion path turns assets into income. Usable assets, after haircuts, are divided by 60 months. That monthly figure must carry the housing payment and your other debts through the debt-to-income test.
Which path fits? If your eligible balances can cover the loan outright, the qualifier path is cleaner. If the loan is larger than your eligible assets, test depletion, because there the assets only need to produce enough income, not repay the loan.
What Sets Your Maximum?
Two limits apply, and the lower one binds. First is leverage: the loan-to-value cap on the property. Second, on the depletion path, is income math. On the qualifier path, the second limit is simply the total of your eligible assets.
Here is how the leverage side looks across the network. These are ceilings through select programs, subject to underwriting.
| Path | Purchase | Refinance | Cash-out |
|---|---|---|---|
| Qualifier, second home | Up to 80% | Up to 75% | Set by lender, not published |
| Depletion, second home | Up to 80% | Up to 80% (rate-and-term) | Up to 60% |
| Depletion, investment property | Up to 65% | Up to 65% (rate-and-term) | Up to 60% |
Loan size follows the path. The qualifier path goes to $4,000,000. The depletion path runs $125,000 to $3,500,000. Nothing above $4,000,000 is available on either one.
One more point. No statute sets a dollar ceiling on these loans. The conforming loan limits do not cap them. They define “jumbo” in the conventional market. For an asset-based file, program ceilings and your balances do the capping.
How Assets Count on the Qualifier Path
Each account type counts at a set share of its balance. The strongest accounts count in full.
- Brokerage accounts, certificates of deposit, money market and savings: 100%.
- 401(k) and IRA balances: 90% if you are under 59½, 100% at 59½ or older.
- Accounts combine.
Here is the sanctioned shape of the math. Say the loan is $800,000. You hold $330,000 in brokerage accounts (100% counts, so $330,000), $300,000 in a 401(k) while under 59½ (90% counts, so $270,000), and $200,000 in savings (100%, so $200,000). Usable assets total $800,000. That covers the loan and is reviewed on assets alone, subject to underwriting. The lender’s own calculation governs.
Seasoning matters. Funds need 60 days of seasoning, and each qualifying account needs two months of statements. Credit starts at a 600 minimum score. Housing history is expected at 0x30x12, though one 30-day late in the past twelve months is considered case by case. Multiple bankruptcies are not eligible.
Reserves are simple on this path. None are required at or below 75% loan-to-value. Above that, the lender sets them.
How Assets Count on the Depletion Path
Haircuts are steeper here, because the lender is converting holdings into income.
| Asset type | Share that counts |
|---|---|
| Cash accounts and CDs | 100% |
| Securities | 80% |
| Retirement accounts | 70% at any age |
| Real-estate equity | 60% |
Not eligible on this path: custodial accounts, deferred compensation, escrow accounts, foreign funds, cash on hand, privately held stock, stock options, non-vested restricted stock units, and funds from non-regulated financial companies. Privately held company stock is not eligible on either path. A founder or shareholder documents a sale or buyout as a seasoned cash balance instead. Cash-out proceeds never count as qualifying assets.
The worked shape: $1,500,000 in securities counts at 80%, or $1,200,000. Add $300,000 in cash at 100%. Usable assets are $1,500,000. Divide by 60 months and you get $25,000 of monthly qualifying income. That income then has to carry the housing payment and other debts through the debt-to-income test. A big portfolio can still fall short if the payment on a high-priced home is large.
Minimums apply. Qualified assets must be at least the lesser of $1,000,000 or 1.25 times the loan balance. When asset depletion is your only income source, you also need at least $250,000 liquid. If you have documented income as well, asset-derived income can supplement it up to a 45% debt-to-income ratio, and the minimum-assets rule is waived.
Statements must be at least 120 days old at application, plus a most recent statement within 45 days. Sale-of-business, inheritance and legal-settlement funds are excused from that seasoning. A first-time investor on this path needs a 700 score. A housing event needs 4 years of seasoning.
What About Crypto, Metals, and Collectibles?
They are not published as eligible on either path. Cryptocurrency, precious metals, collectibles, pledged or borrowed funds, and business accounts beyond your ownership share do not count at a percentage. The documented route is converting them to a seasoned cash balance in a regulated account, with the lender reviewing the source. Plan that conversion early, because the seasoning clock starts after the funds land.
Which Path Gives California Buyers the Bigger Number?
It depends on where the binding limit sits. Three profiles show it. All figures are illustrative, subject to underwriting.
A coastal purchase. Picture a buyer eyeing a $2,500,000 beach home. At 80% on a purchase, the leverage cap is not the problem on either path. The question is assets. On the qualifier path, eligible assets must equal the full loan. On the depletion path, assets must clear the minimum (the lesser of $1,000,000 or 1.25 times the loan) and produce enough monthly income to pass the debt-to-income test. Run the eligible-asset total first. If it covers the loan, the qualifier path is cleaner. If the loan is larger than the total, depletion is the path to test, and the income math decides the answer.
A mid-priced resort-area purchase. For a lower balance, the qualifier path often wins. Smaller loans are easier to cover with assets outright, and nothing about income gets documented.
A second home you already own. Refinancing changes the ceiling. The qualifier path drops to 75% on a refinance. The depletion path holds 80% on a rate-and-term but falls to 60% on a cash-out. Any existing mortgage counts toward the leverage test, so a home with a large balance leaves little room for cash out. Qualifier-path cash-out is set by the lender and is not published, so ask before assuming it exists.
On a refinance, the cash-out limit comes from the equity in the home, not from the size of your assets.
Does a Second Home Count as a Second Home?
Occupancy decides the product, and lenders treat the label seriously. A true second home is one you occupy part of the year. The Fannie Mae Selling Guide describes a second home as one-unit, suitable for year-round use, under your exclusive control, and not a rental or timeshare. It also says rental income cannot be used to qualify a second home. Those are agency rules, offered here for contrast only. They do not govern the network’s asset-based programs.
The practical point: if you plan to rent the home out to cover costs, say so. An investment property is a different occupancy, with lower leverage on the depletion path (65% on a purchase, 60% on a cash-out). The qualifier path in this program is for principal residences and second homes, so rental properties belong on the depletion path.
Tax classification is a separate test. A dwelling counts as used as a home when personal use exceeds the greater of 14 days or 10% of rental days, per IRS Publication 527. That is a tax rule, not an underwriting rule. Tax treatment varies; consult a qualified professional.
Misstating occupancy is the risk that matters most. Calling a rental a second home to get better leverage is misrepresentation, and lenders review for it.
How Does This Compare With the Alternatives?
Other products fit different borrowers. Each description below is that program’s own rule, not this one’s.
| Option | Who it fits | Key difference |
|---|---|---|
| Asset qualifier | Cash-heavy, no income documented | Assets cover whole loan |
| Asset depletion | Large portfolio, loan exceeds assets | Assets become income |
| Bank statement | Self-employed with strong deposits | Income shown by deposits |
| DSCR | Business-purpose rental purchase | Rent covers the payment |
| HELOC or bridge | Short-term equity access | Different structure and terms |
A bank statement loan suits someone who documents income through deposits. DSCR is business-purpose rental financing for investment properties. It qualifies primarily on property-level rental income covering the payment, subject to lender guidelines.
Where Files Get Cut Short
A few predictable mistakes shrink the number.
- Counting ineligible assets. Crypto, cash on hand, privately held stock and stock options do not count. Tally only what is on the eligible list.
- Ignoring seasoning. Fresh deposits without two months of statements on the qualifier path stall the file. On the depletion path, statements must meet the 120-day and 45-day requirements above.
- Blending the paths. Using qualifier credit percentages with depletion leverage produces a number no lender will honor.
- Forgetting existing debt. On depletion, other debts reduce what the derived income can carry.
- Misjudging the retirement haircut. A 401(k) counts 90% or 100% on the qualifier path but only 70% on depletion.
Planning the paperwork matters as much as the balances.
Key Terms Defined
- Asset qualifier: a path that drives lender review when eligible assets equal or exceed the whole loan amount.
- Asset depletion: a path that divides usable assets by 60 months to create qualifying monthly income.
- Haircut: the share of an asset’s balance that does not count toward qualifying.
- Seasoning: the time funds must sit in an account, backed by statements, before they count.
- Debt-to-income (DTI): monthly debts, including the new housing payment, compared with monthly income.
- Loan-to-value (LTV): the loan amount as a percentage of the property’s value.
Frequently Asked Questions
Can I use an asset-based mortgage on a California vacation home I will also rent out?
It depends on how much you rent it. A true second home is for your own part-time use. If rental is a real part of the plan, the property may be treated as an investment property, which is available only on the asset depletion path at lower leverage. Say how you intend to use it. Occupancy misstatement is a serious problem on a file.
Is there a dollar cap set by law?
No. Asset-based loans are capped by program ceilings, leverage, and your usable assets. Through select programs, that means up to $4,000,000 on the qualifier path and $125,000 to $3,500,000 on the depletion path, subject to underwriting.
Do I need a minimum credit score?
The qualifier path publishes a 600 minimum. The depletion path follows the lender’s matrix, and a first-time investor there needs 700. Housing history is expected at 0x30x12, with one recent 30-day late considered case by case.
Does asset-based mean no documentation?
No. Your assets are documented on both paths, with statements and seasoning. What the qualifier path skips is employment and income documentation, meaning no traditional personal-income documentation, pay stubs or employment verification. The depletion path uses derived income and runs a debt-to-income test.
Can I take cash out of a second home this way?
On the depletion path, yes, up to 60% loan-to-value on a cash-out refinance. On the qualifier path, cash-out terms are set by the lender and are not published, so confirm before planning around it.
Next Steps
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 arranges these loans through select lenders in its network. Programs change, every file is underwritten individually, and nothing here is a commitment to lend.
California’s high-priced coastal and resort markets reward the borrower who decides early whether assets cover the loan or assets become income.
Lendmire’s asset-based mortgage in California page presents the program for California 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. Fannie Mae Selling Guide: Occupancy Types
2. IRS Publication 527: Residential Rental Property
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 a North Carolina Buyer Get an Asset-Based Mortgage With a Low Credit Score? · Can an Inheritance Qualify You for a California Mortgage Before It Is Seasoned? · Can You Get a Pennsylvania Asset-Based Mortgage With No Job?
Guides: Asset-Based Mortgage in California
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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Compliance and disclosures. Lendmire (NMLS# 2371349) is a licensed mortgage broker and is not a direct lender, depository institution, financial advisor, or tax professional. Content in this article is general market analysis and educational information — not financial, legal, or tax advice for any specific situation. Lendmire does not guarantee loan approval; every transaction is subject to underwriting by the funding lender. Mortgage pricing and loan program guidelines are subject to change at any time without notice and vary by borrower characteristics, property type, and state regulations. Lendmire complies with Equal Housing Opportunity. Licensure verification: NMLS Consumer Access.