The Quick Read: Usually, accounts in your own name that a lender can verify and you can reach count, meaning cash, CDs, brokerage holdings and vested retirement balances, each credited at a percentage that depends on which of the two asset-based paths you use. Business accounts, crypto, gifts and borrowed money generally do not count as they sit.
- Savings, money market, CDs and brokerage accounts count at 100% on the asset qualifier path, subject to underwriting.
- Retirement accounts count at 90% under age 59½ and 100% at 59½ or older on the qualifier path, but at 70% at any age on the asset depletion path.
- Equity in a home you are not financing counts at 60% on the depletion path only.
- Crypto, precious metals, business accounts and borrowed funds are not published as eligible on either path.
- Assets are always documented. No income documentation does not mean no documentation.
Most Florida borrowers who ask this question hold a lot of cash and investments and show little income on paper. They may be retirees, people who sold a business, or households living off a portfolio. Which accounts count, and at what percentage, decides whether this kind of loan works for them at all.
What Does “Asset-Based Mortgage” Mean Here?
An asset-based mortgage lets you qualify on what you own rather than what you earn on a pay stub. Lendmire arranges two versions through select lenders in its network, and you qualify on one path at a time. Across the wholesale network, the two paths carry different credit percentages, so mixing their figures gives you wrong answers.
On the asset qualifier path, your eligible assets, after the credit percentages, must equal or exceed the entire loan amount. No employment or income is documented. This path covers principal residences and second homes, which fits many Florida purchases.
On the asset depletion path, eligible assets are credited at their own percentages and the total is divided by 60 months. The result is a monthly qualifying income. That income must carry the full housing payment and your other debts through the debt-to-income test. This path also covers investment property.
If you are financing a rental you will hold as a business, the normal tool is a DSCR loan, which qualifies primarily on property-level rental income covering the payment, subject to lender guidelines. Lendmire’s complete DSCR loans guide covers that route. The rest of this article stays on the asset-based programs.
(The phrase also has a second meaning in commercial lending, where a business borrows against inventory or equipment. That is a different product.)
Which Accounts Count, Account by Account
Cash and cash-like accounts count most fully. Market-based accounts get a discount on the depletion path, and retirement accounts get a bigger one. The table shows both paths side by side, and every figure is a ceiling subject to underwriting, not an offer.
| Account type | Qualifier path | Depletion path |
|---|---|---|
| Savings, money market | 100% | 100% (cash accounts) |
| Certificates of deposit | 100% | 100% |
| Brokerage accounts | 100% | 80% (securities) |
| Private company stock | Not published | 75% |
| 401(k) and IRA | 90% under 59½; 100% at 59½+ | 70% at any age |
| Equity in another property | Not published | 60% |
Accounts combine on the qualifier path, so you can mix savings, brokerage and a 401(k) to reach the loan amount. The percentage is the share of the balance a lender will credit. It is not a withdrawal limit, and you do not have to sell anything or pull money out of a retirement plan to use it.
Why the percentages differ
Cash is stable and instantly verifiable, so it gets full credit. Stocks and funds swing in value, so the depletion path credits securities at 80%. Private stock is harder to value and to sell, so it gets 75%.
Retirement accounts carry the biggest cut on the depletion path at 70%. Cash taken from a traditional IRA before age 59½ generally triggers an extra 10% tax, according to IRS Publication 590-B. That is why the qualifier path credits these accounts at 90% under 59½ and 100% afterward. The age line on the program tracks that tax line.
Tax treatment varies; consult a qualified professional.
Which Accounts Do Not Count?
Several things people think of as assets do not qualify.
Not eligible 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.
Not published as eligible on either path: cryptocurrency, precious metals, collectibles, business accounts beyond your ownership share, and pledged or borrowed funds. Do not expect these to count at any percentage.
Equity in the home you are financing. The federal ability-to-repay rule lets a lender weigh a borrower’s income or assets other than the dwelling that secures the loan, per CFPB Regulation Z §1026.43. Equity in a different property can be credited at 60% on the depletion path. The house you are buying or refinancing cannot support itself.
Can an excluded asset be converted?
Yes, in many cases. The documented route is to convert the asset into a seasoned cash balance in a regulated account. The lender then reviews where the money came from. A crypto holder, for example, sells, moves the proceeds to a bank in their own name, and lets them season before applying. Plan that move well ahead of your application, because every transfer leaves a paper trail the lender will read.
Whose Name Is on the Account?
Titling matters as much as the account type. Programs generally want the funds in the name of a borrower on the loan.
- Joint accounts: these usually work when the co-owner is also on the loan. If the other owner is not borrowing, expect questions, and ask before you apply.
- Business accounts: these usually do not count beyond your ownership share, and even then they are not published as eligible. Moving money to a personal account early lets it season.
- Custodial accounts: not eligible on the depletion path.
- Trust-held accounts: these depend on the trust’s structure and the lender’s review, so they are a case-by-case item.
Seasoning and Statements
Seasoning means how long money has sat in an account. The two paths test it differently.
On the qualifier path, funds need 60 days of seasoning, and you provide two months of statements for each qualifying account. On the depletion path, statements must be at least 120 days old at application, plus the most recent statement within 45 days. Funds from a sale of a business, an inheritance or a legal settlement are excused from that depletion-path seasoning.
A large deposit that shows up in the last month will draw questions. Keep the paper trail clean: the source of the deposit, the transfer record and the statements on both ends.
Worked Examples
These use the program’s own percentages. The lender’s calculation governs, and everything is subject to underwriting.
Qualifier path. Say you want an $800,000 loan on a Florida second home. You hold $330,000 in brokerage accounts, which count at 100% and equal $330,000. You hold $300,000 in a 401(k) at age 55, which counts at 90% and equals $270,000. You hold $200,000 in savings at 100%, which equals $200,000. Your usable assets total $800,000, which matches the loan, so you qualify on assets alone, assuming the credit and property review also pass.
Depletion path. Say you hold $1,500,000 in securities and $300,000 in cash. The securities count at 80%, which is $1,200,000. The cash counts at 100%, which is $300,000. Together that is $1,500,000 of usable assets. Divide by 60 months and you get $25,000 of monthly qualifying income. That income then has to carry the housing payment and your other debts through the debt-to-income test.
The same-dollar problem
You cannot count the same dollar twice. Money you plan to use for a down payment or closing costs should be set aside before you tally what is left to qualify on. Lenders review the full picture, so build your own tally the same way before you apply.
Leverage, Loan Size and Credit
Each path sets its own ceilings. These are typical ranges across select programs, subject to underwriting.
| Item | Qualifier path | Depletion path |
|---|---|---|
| Purchase | Up to 80% LTV | Up to 80% (primary or second home); up to 65% (investment property) |
| Refinance | Up to 75% LTV | Up to 80% rate-and-term (primary or second home); up to 65% (investment property) |
| Cash-out | Set by the lender, not published | Up to 60% on all occupancies |
| Loan amount | Up to $4,000,000 | $125,000 to $3,500,000 |
| Credit | 600 minimum score | The lender’s matrix |
Cash-out proceeds never count as qualifying assets on the depletion path. A first-time investor on the depletion path needs a 700 score. Housing history is expected to be 0x30x12, and a single 30-day late in the last twelve months is considered case by case. Multiple bankruptcies are not eligible, and a housing event needs 4 years of seasoning on the depletion path.
The depletion path also has minimum assets. You need 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, you also need at least $250,000 in liquid assets. If you have documented income, depletion income can supplement it up to a 45% debt-to-income ratio, and the minimum-assets rule is waived.
Reserves work differently on each path. 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.
Retirement Accounts in Depth
Retirement balances are where most borrowers lose the most credit, so check yours first.
- Under 59½ on the qualifier path: your 401(k) or IRA counts at 90%.
- At 59½ or older on the qualifier path: it counts at 100%.
- On the depletion path: it counts at 70% at any age.
If you are over 59½ and your loan fits within the qualifier path, that path usually credits retirement money best. If you are younger, or you need the investment property route, the depletion path’s 70% is the number to plan around. A borrower with a mostly retirement-heavy balance sheet should run both paths on paper before choosing. For a deeper look, see Lendmire’s walkthrough on counting retirement accounts as reserves.
Common Mistakes and Myths
“I have to cash out my investments.” No. The percentage is an underwriting calculation. You do not liquidate anything to qualify.
“Retirement accounts count at full value.” Not on the depletion path, where they count at 70%. On the qualifier path they count at 90% or 100%, depending on age.
“Home equity counts.” Equity in the home you are financing does not. Equity in another property counts at 60% on the depletion path only.
“It’s a no-doc loan.” It is not. The programs skip employment and income documentation on the qualifier path, but your assets are documented, with statements on every account you use.
“Every lender uses the same percentages.” Across the wholesale network, many lenders set their own haircuts and divisors. The figures here are this network’s published ceilings, and the lender’s own calculation governs.
Moving money around right before applying. A large last-minute transfer creates seasoning problems. Sort out your account titles and sources first.
Is This the Right Fit?
Asset-based qualification fits borrowers whose balances are large and whose documented income is small. That includes retirees, people who sold a business, recipients of an inheritance or settlement, early-retired professionals and households living on a portfolio.
It is a poor fit if most of your wealth is in crypto, a business you still run, or equity in the property you are financing. It also fits poorly if your assets are thin relative to the loan. Borrowers who document income with deposits are usually better served by a bank statement program. Borrowers buying a rental as a business should look at DSCR financing instead.
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 mortgage broker, and its consumer mortgage lending is licensed in 16 states, Florida among them. The programs are placed through select lenders, and every file is underwritten individually.
Key Terms Defined
Asset qualifier path: a program where eligible assets, after credit percentages, must equal or exceed the whole loan, with no income documented.
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 that a lender does not count.
Seasoning: how long funds have been in an account before you apply.
Debt-to-income (DTI): your monthly debts, including the new housing payment, compared with your monthly income.
LTV (loan-to-value): the loan amount as a percentage of the property’s value.
Frequently Asked Questions
Do I have to sell my investments to qualify?
No. The percentages are an underwriting calculation, not a requirement to sell or withdraw. Your accounts stay in place, though you document them with statements and they must remain available through the loan review.
Does cryptocurrency count?
Not as held. Crypto is not published as eligible on either path. The documented route is to convert it to cash, deposit it in a regulated account in your name and let the funds season, with the source reviewed by the lender.
Can the same money be used for my down payment and my qualifying assets?
No. A dollar can do only one job. Money for the down payment and closing costs should be set aside before you count what remains to qualify on.
Do joint accounts count?
They often do when the co-owner is also a borrower on the loan. If the co-owner is not on the loan, expect extra questions, and confirm treatment with your loan officer before you apply.
Can I use this for a Florida rental property?
Yes, but only on the depletion path, which allows investment property at up to 65% on a purchase or rate-and-term refinance and 60% on a cash-out, subject to underwriting. A business-purpose rental purchase may fit a DSCR loan better.
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
This article is part of Lendmire’s asset-based mortgage program — full qualification details, guidelines, and scenarios live on the program page.
Related reading: Is an Asset-Based Mortgage Reported to Credit Bureaus Like Any Other Mortgage? · What Counts as an Asset Statement for a Mortgage? · How a Margin Balance Is Treated on an Asset Depletion Mortgage
Guides: Asset-Based Mortgage in Florida
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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Disclosure information. Lendmire is a state-licensed mortgage brokerage under NMLS# 2371349. Lendmire is not a depository institution, direct lender, or financial advisor — all loans referenced are placed through wholesale lender partners and are subject to each lender's underwriting standards. This article is provided for general informational purposes and is not a commitment to lend, nor does it constitute financial, legal, or tax advice. Loan programs, terms, rates, and qualification standards change without notice and depend on borrower profile, property type, and the state in which the subject property is located. Equal Housing Opportunity provider. NMLS Consumer Access: nmlsconsumeraccess.org.