The Quick Read: It depends on the path: on the asset qualifier path, eligible assets must cover the entire loan, up to $4,000,000 at 80% loan-to-value on a second-home purchase; on the asset depletion path, assets become monthly income, with loans from $125,000 to $3,500,000, subject to underwriting. Across the wholesale network Lendmire works through, these are ceilings, not offers.
- Qualifier path: your usable assets, after the credit percentages, must equal or exceed the whole loan. No employment or income is documented.
- Depletion path: usable assets divided by 60 months become qualifying income. That income must carry the housing payment and your other debts.
- Leverage on a second home: 80% on a purchase on either path. A refinance is 75% on the qualifier path. On the depletion path, a cash-out refinance is 60%.
- One path at a time: the lender reviews your file on one path, never a blend of the two.
- Rental plans change the answer: renting the home out as a business moves you toward investment-property rules.
What Is an Asset-Based Mortgage on a Michigan Second Home?
It is a consumer mortgage where the lender reviews your file on what you own, not on a paycheck. Think of a retiree, a business seller, or someone living on a portfolio. Your balances are large and your documented income is small.
It is not a home equity loan or a second mortgage. Those borrow against a house you already own. An asset-based mortgage is the main loan on the Michigan home you are buying or refinancing. Your investments stay where they are. You do not sell or pledge them, though the lender reviews them closely.
Lendmire is a broker. It arranges these loans through select lenders in its network and does not lend or approve them. Lendmire arranges consumer mortgages in 16 states, and Michigan is one of them. Program figures do not change by state, but local prices and carrying costs do.
Which Path Sets Your Borrowing Ceiling?
The path decides everything else. Look at how each one measures you before you look at any dollar figure.
| Feature | Asset qualifier path | Asset depletion path |
|---|---|---|
| What qualifies you | Assets cover the whole loan | Assets become monthly income |
| Income documented | None | Derived income runs through DTI |
| Second-home purchase LTV | Up to 80% | Up to 80% |
| Refinance LTV | Up to 75% | 80% rate-and-term, 60% cash-out |
| Loan amounts | Up to $4,000,000 | $125,000 to $3,500,000 |
If your liquid assets are large relative to the loan, the qualifier path is usually the cleaner fit. If your assets are big but you want a larger loan than they can cover outright, the depletion path may work. It stretches assets across 60 months of income instead of requiring the full balance.
Each file is underwritten individually, so these figures are ceilings and floors.
How Much Can You Borrow on the Asset Qualifier Path?
You can borrow up to the amount your eligible assets cover, capped by the leverage limit and the $4,000,000 program ceiling. The test is simple. After the credit percentages below, your usable assets must equal or exceed the entire loan.
Here is how each asset counts toward that test:
| Asset type (qualifier path) | Share that counts |
|---|---|
| Brokerage accounts | 100% |
| Certificates of deposit | 100% |
| Money market and savings | 100% |
| 401(k) or IRA, under age 59½ | 90% |
| 401(k) or IRA, age 59½ or older | 100% |
Accounts combine. Picture a borrower seeking an $800,000 loan. She holds $330,000 in brokerage accounts, which count at 100%, or $330,000. She holds $300,000 in a 401(k) and is under 59½, so it counts at 90%, or $270,000. She also holds $200,000 in savings at 100%, or $200,000. Usable assets total $800,000, which matches the loan. She is reviewed on assets alone, subject to underwriting. The lender’s own calculation governs.
Seasoning applies. The program wants 60 days of seasoning and two months of statements for each qualifying account. The minimum credit score is 600, and housing history is generally 0x30x12. One 30-day late in the last twelve months is considered case by case.
Reserves are the other lever. None are required at or below 75% loan-to-value. At 80% on a purchase, the lender sets them. Whether cash-out proceeds are allowed on this path is the lender’s decision and is not published, so do not plan around it.
“No income documentation” does not mean no documentation. Every qualifying account is documented, and the program reviews where the money came from.
How Does the Asset Depletion Path Turn a Portfolio Into a Loan Amount?
The lender divides your usable assets by 60 months. The result is a monthly qualifying income. That income must carry the full housing payment and your other debts through a debt-to-income test.
Here the haircuts are steeper:
| Asset type (depletion path) | Share that counts |
|---|---|
| Cash accounts and CDs | 100% |
| Securities | 80% |
| Private stock | 75% |
| Retirement accounts, any age | 70% |
| Real-estate equity | 60% |
Run the sanctioned example. A borrower holds $1,500,000 in securities, which count at 80%, or $1,200,000. She also holds $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 new housing payment plus every other monthly debt. This is where a big existing mortgage or high carrying costs can shrink what you can borrow.
Several minimums apply on this path. Qualified assets must reach 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. Asset-derived income can instead supplement documented income, up to a 45% debt-to-income ratio, and then the minimum-assets rule is waived.
Documentation differs too. Statements must be at least 120 days old at application, plus the most recent statement within 45 days. Funds from a business sale, inheritance, or legal settlement are excused from that seasoning. Credit follows the lender’s matrix rather than one fixed floor.
On a second home, leverage runs up to 80% on a purchase or rate-and-term refinance and 60% on a cash-out refinance. Cash-out proceeds never count as qualifying assets.
Why Your Down Payment Competes With Your Qualifying Assets
The same dollars cannot do two jobs. Money you wire for the down payment and closing costs leaves the account. Lenders generally count what is left after it leaves.
Say you plan an 80% purchase on the qualifier path. The loan amount is fixed by the price. The assets you need to cover it must remain after you pay the cash portion. Many borrowers who look strong on paper come up short here because their cash to close was sitting in the same account.
Plan it this way. Add up your balances by type. Apply the percentages for your path. Subtract what you will spend on the purchase. Compare what remains with the loan you want. Ask your broker to run it before you make an offer.
A few asset types do not count the way people expect. Cryptocurrency, precious metals, collectibles, business accounts beyond your ownership share, and pledged or borrowed funds are not published as eligible on either path. The documented route is to convert them to a seasoned cash balance in a regulated account. The lender then reviews the source of the funds.
On the depletion path, custodial accounts, deferred compensation, escrow accounts, foreign funds, cash on hand, stock options, non-vested restricted stock units, and funds from non-regulated financial companies are not eligible.
What Changes When the Home Is in Michigan?
The program figures do not move. The property can. Michigan second homes often sit on lakes, in northern resort towns, or down seasonal roads. Lenders look hard at appraisals in thin vacation markets. Wells, septic systems, and access roads can all draw extra scrutiny. Expect the property type to matter as much as your balances.
Michigan rental income varies widely by market. AirDNA’s Michigan statewide data lists 134,659 active listings across 501 markets. It shows South Haven and Covert at about $67.8K in average annual revenue and Detroit at about $29.4K. Revenue swings that large are one reason not to lean on rental income to justify a loan.
Rental plans matter most. The conventional definition of a second home, per the Freddie Mac Seller/Servicer Guide, is a one-unit property the borrower occupies for part of the year. Short-term rental is allowed only under conditions. That is a conventional-market rule, not this program’s.
Under this program, the leverage tables above apply to a second home you use personally. If you plan to rent the property as a business, the depletion path treats it as investment property. Leverage drops to 65% on a purchase or rate-and-term refinance and 60% on a cash-out. A first-time investor on that path needs a 700 credit score. Final terms depend on lender guidelines, property type, leverage, and the borrower’s complete credit picture.
Business-purpose rental financing is a different product. 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. A DSCR loan is reviewed primarily on property-level rental income covering the payment, subject to lender guidelines. Lendmire’s complete DSCR loans guide covers how that works. Short-term rental rules can vary by city, county, HOA, and property type, so investors should confirm local rules before relying on projected rental income.
When Is an Asset-Based Mortgage the Wrong Tool?
Skip it if you have steady, documentable income and modest assets. A conventional loan will likely be simpler. Skip it if your wealth sits in crypto, collectibles, or illiquid business interests with no plan to convert. Also skip it if you intend to run the place as a full-time rental, where a DSCR loan is the better fit.
It works best for people with big seasoned balances and little documented income. That includes retirees, business sellers, inheritance and settlement recipients, and early-retired professionals.
Tax treatment varies; consult a qualified professional.
Key Terms Defined
Asset qualifier path: the route where eligible assets, after credit percentages, must cover the whole loan, with no income documented.
Asset depletion path: the route where usable assets divided by 60 months become qualifying monthly income.
Loan-to-value (LTV): the loan amount as a percentage of the home’s value or price.
Seasoning: how long money has sat in an account before the lender will count it.
Debt-to-income (DTI): your monthly debts, including the new housing payment, compared with your qualifying income.
Haircut: the share of an asset’s balance the lender discounts, so only the rest counts.
Frequently Asked Questions
Can I use my 401(k) or IRA?
Yes, on both paths. On the qualifier path, balances count at 90% under age 59½ and 100% at 59½ or older. On the depletion path, retirement accounts count at 70% at any age. You do not have to withdraw the funds.
Do I have to sell my investments?
Not to qualify. Lenders count the balances where they sit. Cash you use for the down payment and closing costs does leave the account, though, and that reduces what counts.
Can I count rental income from the Michigan home to qualify?
Not on this consumer program. It is reviewed on your assets, not on rental income. If you intend to rent the property as a business, a DSCR loan is the product built around rent.
What credit score do I need?
The qualifier path’s published floor is 600. The depletion path follows the lender’s matrix. A first-time investor on that path needs 700. A housing event needs four years of seasoning there. Approval is never promised, and every file is underwritten individually.
Can I refinance an existing Michigan second home this way?
Yes. The qualifier path allows up to 75% on a refinance, and cash-out terms there are set by the lender. The depletion path allows 80% on a rate-and-term refinance and 60% on a cash-out refinance on a second home.
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. Programs change, and all figures here are subject to underwriting through select programs. This is not a commitment to lend.
Lendmire’s asset-based mortgage in Michigan page presents the program for Michigan 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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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
1. AirDNA – Michigan statewide vacation rental data
2. Freddie Mac Seller/Servicer Guide §4201.12
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 Equity in a Rental Property Help You Qualify for an Asset-Based Mortgage? · Does a Securities-Backed Line of Credit Hurt Your Asset-Based Mortgage Application?
Guides: Asset-Based Mortgage in Michigan
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.