The Quick Read: Cash accounts, certificates of deposit, money market and savings balances count at full value on both asset-based paths, while brokerage and retirement accounts count at a discount that depends on the path. Loan programs run on one path at a time: the asset qualifier path or the asset depletion path.
- Asset qualifier path: eligible assets must equal or exceed the entire loan, and no employment or income is documented.
- Asset depletion path: usable assets divided by 60 months become qualifying income that runs through the debt-to-income test.
- Retirement accounts: 90% under age 59½ and 100% after on the qualifier path; 70% at any age on the depletion path.
- Typically left out: crypto, precious metals, collectibles, gift funds, borrowed funds and most business accounts, unless converted to seasoned cash.
For an Indiana borrower with a large portfolio and little documented income, the first decision is which path fits. The program figures below do not change by state, and every file is subject to underwriting through select programs.
Which Path Fits You?
Pick the qualifier path if your seasoned assets can cover the whole loan. Pick the depletion path if your assets are large but you want them turned into monthly income to carry the payment. A borrower is qualified on one path at a time, and the two tables never blend.
Across Lendmire’s wholesale network, the qualifier path suits the reader with plenty of liquid cash and a modest loan relative to net worth. It runs up to 80% loan-to-value on a purchase and 75% on a refinance of a principal residence or second home, with loans up to $4,000,000. Lendmire is a broker, so these programs are placed through select lenders, and each lender’s own review governs.
The depletion path suits the retiree, business seller or portfolio-funded household whose balances are large and whose tax-return income is thin. It covers principal residences and second homes at up to 80% on a purchase or rate-and-term refinance and 60% on a cash-out. Investment property is allowed on this path only, at up to 65% on a purchase or rate-and-term and 60% on a cash-out. Loan amounts run from $125,000 to $3,500,000.
One flip point matters. If your assets exceed the loan, the qualifier path is usually simpler, because no income is converted or tested. If your assets are large but less than the loan, the depletion path is the only one of the two that can work.
Key Terms Defined
Qualifier path: the program that qualifies a loan on assets alone, with no income documented.
Depletion path: the program that divides usable assets by 60 months to create monthly qualifying income.
Haircut: the percentage of an account’s balance that does not count, because of market or tax risk.
Seasoning: the length of time funds must sit in an account before a lender relies on them.
Debt-to-income test: the comparison of monthly debts, including the new housing payment, to monthly qualifying income.
What Counts on the Qualifier Path?
On the qualifier path, brokerage accounts, certificates of deposit, money market accounts and savings count at 100%. Retirement accounts, meaning 401(k) and IRA balances, count at 90% if you are under 59½ and 100% at 59½ or older. Accounts combine, so the total only has to meet or exceed the loan amount.
Here is an illustration only; the lender’s own calculation governs. Take an $800,000 loan. The borrower holds $330,000 in brokerage accounts (100% counts, so $330,000), $300,000 in a 401(k) under 59½ (90% counts, so $270,000) and $200,000 in savings (100% counts, so $200,000). Together that counts $800,000 of usable assets, which matches the loan and is reviewed on assets alone, subject to underwriting.
Credit still matters. The published floor is a 600 minimum score. Housing history is expected to run 0x30x12, though one 30-day late in the last twelve months is considered case by case. Reserves are not required at or below 75% loan-to-value; above that, the lender sets them.
What Counts on the Depletion Path?
On the depletion path, cash accounts and certificates of deposit count at 100%, securities at 80%, private stock at 75%, retirement accounts at 70% at any age, and real-estate equity at 60%. The usable total is divided by 60 months to get monthly income.
Here is the illustration. A borrower has $1,500,000 in securities (80% counts, so $1,200,000) and $300,000 in cash (100% counts, so $300,000). That is $1,500,000 usable. Divided by 60 months, it produces $25,000 of monthly qualifying income. That income then has to carry the housing payment and other debts through the debt-to-income test.
Several items are not eligible on this 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
Minimums apply too. Qualified assets must be at least the lesser of $1,000,000 or 1.25 times the loan balance, and never below $250,000 liquid when depletion is the only income source. If asset income only supplements documented income, it can do so up to a 45% debt-to-income ratio, and the minimum-assets rule is waived. A first-time investor on this path needs a 700 score; otherwise the lender’s score and loan-amount matrix applies. A housing event needs 4 years of seasoning, and multiple bankruptcies are not eligible. Cash-out proceeds never count as qualifying assets.
Side by Side: How the Same Account Is Treated
| Account | Qualifier path | Depletion path |
|---|---|---|
| Savings, checking-type cash | 100% (savings) | 100% |
| Money market | 100% | 100% (cash accounts) |
| Certificates of deposit | 100% | 100% |
| Brokerage | 100% | 80% (securities) |
| 401(k) or IRA | 90% under 59½, 100% after | 70% at any age |
| Real-estate equity | Not published | 60% |
The gap is real. A $500,000 brokerage account counts in full on the qualifier path and at 80% on the depletion path, though the depletion figure then gets divided over 60 months. A borrower under 59½ with a large 401(k) usually does better on the qualifier path, provided total assets reach the loan amount.
Why the Treatment Differs
Liquidity, price swings and withdrawal costs drive the percentages. Cash is certain, so it counts in full. Securities can fall in value before a sale, so they take a discount on the depletion path. Retirement money carries the most friction. The IRS notes that an IRA withdrawal before 59½ can trigger an additional 10% tax unless an exception applies. That cost is the economic reason many programs trim retirement balances, though the specific percentages are program policy, not a government rule.
Here is a practical point. You do not need to withdraw from a retirement account for it to count. The balance is documented, and the lender relies on it at the program percentage. Pulling money out early to pay for the property usually costs more than accepting the discount. This is a planning observation, not tax advice; tax treatment varies, so consult a qualified professional.
Ownership, Seasoning and Documentation
The assets are documented on both paths. “No income documentation” 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. Funds from the sale of a business, an inheritance or a legal settlement are excused from that seasoning.
Lenders verify assets from reliable third-party records. The same idea runs through consumer mortgage rules; the CFPB’s ability-to-repay provision requires a creditor to verify any assets it relies on, which is why statements, not stated balances, drive the file. Accounts held in another name, or business accounts beyond your ownership share, are not published as eligible on either path.
What Does Not Count (and the Workaround)
Cryptocurrency, precious metals, collectibles, business accounts beyond your ownership share, and pledged or borrowed funds are not published as eligible on either path. Don’t count on them at any percentage.
The documented route is converting them to a seasoned cash balance in a regulated account, with the source reviewed by the lender. Plan ahead on that. Selling a position and parking the proceeds can run into the seasoning window, so the order of moves matters.
Gift funds and unsecured borrowing fall in the same bucket. A borrowed down payment is not an asset you own.
Common Mistakes
- Assuming one account list fits both paths. The percentages differ, so name the path before running any math.
- Counting cash-out proceeds. On the depletion path they never count as qualifying assets.
- Forgetting the closing cash. The money you spend on the down payment and closing costs leaves the pool, so decide which accounts fund closing and which stay in the qualifying pool.
- Moving money late. A large recent transfer without seasoning or a paper trail slows the review.
- Treating the figures as offers. The percentages are ceilings and floors, never commitments.
A related caution on retirement accounts: Lendmire’s guide on counting retirement accounts as reserves covers the reserve side, which is a different question from qualifying on assets.
Consumer Loan, Not a DSCR Loan
One distinction prevents confusion. An asset-based mortgage on a principal residence or second home is a consumer mortgage, so consumer disclosure rules apply. A DSCR loan is a different product: it is a business-purpose investor loan that qualifies primarily on property-level rental income covering the payment, subject to lender guidelines. If you are buying a pure rental and want the property’s rent to carry the loan, the complete DSCR loans guide walks through that path. If you want to use assets for an investment property on an asset-based loan, only the depletion path allows it, at the 65% and 60% ceilings above.
Frequently Asked Questions
Do retirement accounts count, and do I have to withdraw the money?
Yes, they count, and no, you do not have to withdraw. On the qualifier path, 401(k) and IRA balances count at 90% under 59½ and 100% at 59½ or older. On the depletion path, they count at 70% at any age. The lender relies on the documented balance, subject to underwriting.
Does cryptocurrency count?
Not directly. Crypto is not published as eligible on either path. The documented route is converting it to a seasoned cash balance in a regulated account, with the source of funds reviewed by the lender.
Can I use real-estate equity?
Only on the depletion path, where real-estate equity counts at 60%. It is not published as eligible on the qualifier path. Cash-out proceeds from the new loan never count as qualifying assets.
Do I still need good credit?
Yes. The qualifier path publishes a 600 minimum score, and the depletion path follows the lender’s score and loan-amount matrix. A first-time investor on the depletion path needs 700. No program here promises approval, and every file is underwritten individually.
Is the Indiana rule different from other states?
The program figures do not change by state. Indiana is one of the 16 states where Lendmire’s consumer mortgage lending is licensed, but state facts such as taxes, insurance and local prices are context, not program parameters.
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. Program terms are subject to underwriting and change. This is not a commitment to lend.
Lendmire’s asset-based mortgage in Indiana page presents the program for Indiana borrowers.
About Lendmire
Lendmire is a mortgage brokerage (NMLS# 2371349) licensed for consumer mortgage lending in 16 states, arranging bank statement and other alternative-documentation mortgages — P&L-only, 1099-only and asset-based paths — through a wholesale lending network. Eligibility is determined by the lender on each file. Scotsman Guide named Lendmire a Top Mortgage Workplace in both 2025 and 2026.
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References
1. IRS – IRA distribution FAQs
2. CFPB – 12 CFR 1026.43 (Reg Z ability-to-repay)
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 an Asset Depletion Mortgage Works · Does Real Estate Equity Count on an Asset Qualifier Mortgage? · Can Equity in a Rental Property Help You Qualify for an Asset-Based Mortgage?
Guides: Asset-Based Mortgage in Indiana
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
- Mortgage Loan Originator · NMLS# 1129696 · Verify on NMLS Consumer Access
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- Lendmire LLC · Firm NMLS# 2371349 · Verify firm licensure
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.