The Quick Read: Yes, if your balances are large enough, because select programs qualify the loan on your assets instead of a paycheck, subject to underwriting, credit review, and the property. One path covers the whole loan with eligible assets and documents no income. The other turns your assets into monthly income.
- Assets cover the loan: on the asset qualifier path, eligible assets after credit percentages must equal or exceed the entire loan amount.
- Assets become income: on the asset depletion path, usable assets divided by 60 months become qualifying income.
- Not no-doc: your assets are fully documented on both paths. Only the employment and income paperwork goes away.
- Same figures in Colorado: the program figures do not change by state.
- Rental purchase: a pure rental purchase usually belongs in a DSCR loan instead.
What Does “Asset-Based Mortgage” Actually Mean?
An asset-based mortgage is reviewed around what you own instead of what you earn. The phrase covers two different products, and the confusion costs borrowers time.
An asset qualifier loan treats your eligible assets as the repayment source for the whole balance. No employment or income is documented. An asset depletion loan converts those assets into a notional monthly income. That income then has to carry the housing payment and your other debts through a debt-to-income test.
Accredited Real Estate Schools draws the same line. It describes asset depletion as converting a borrower’s own liquid assets into income, and it treats that as a separate product from a property-cash-flow loan. Some people also say asset-based when they mean a DSCR loan, where the rental property carries the loan. That is a third thing, covered below.
A borrower is qualified on one path at a time. The two paths never blend.
How Do the Two Paths Compare?
Here is the whole program on one screen. These figures are typical ceilings and floors from select programs in Lendmire’s wholesale network, subject to underwriting. They are not offers.
| Factor | Asset Qualifier | Asset Depletion |
|---|---|---|
| Income documented | None | Derived from assets |
| Leverage, purchase | Up to 80% | Up to 80% primary/second; 65% investment |
| Leverage, refinance | Up to 75% | Rate-and-term same as purchase; cash-out 60% |
| Loan amounts | Up to $4,000,000 | $125,000 to $3,500,000 |
| Seasoning | 60 days, two months of statements per account | Statements 120+ days old, plus one within 45 days |
| Credit | 600 minimum score | The lender’s matrix |
Colorado borrowers get the same table as everyone else. State facts like local prices are context, not program terms.
Path One: Assets Cover the Loan Outright
This path suits you if your liquid balances are close to the size of the loan. Eligible assets, after the credit percentages below, must equal or exceed the entire loan. That is the whole test, and it is why the loan can run with no employment or income documented.
Typical credit percentages on this path:
- Brokerage accounts, CDs, money market, and savings count at 100%.
- 401(k) and IRA balances count at 90% if you are under 59½.
- Retirement balances count at 100% once you reach 59½.
- Accounts combine.
Run a modeled example. Say you want an $800,000 loan. You hold $330,000 in brokerage accounts (100%, so $330,000), $300,000 in a 401(k) while under 59½ (90%, so $270,000), and $200,000 in savings (100%, so $200,000). That counts $800,000 of usable assets. The loan is reviewed on assets alone, subject to the lender’s own calculation.
Leverage runs up to 80% on a purchase and 75% on a refinance of a principal residence or second home. Whether cash-out proceeds are allowed on this path is set by the lender and is not published, so ask before you plan around it. Reserves are not required at or below 75% loan-to-value. Above that, the lender sets them.
Credit still matters. The published floor is a 600 score, and the lender reviews your housing history. One 30-day late in the last twelve months is considered case by case. Multiple bankruptcies are not eligible.
Path Two: Assets Become Your Income
This path suits you if your balances are large but you want to borrow against a smaller share of them, or you want an investment property. The lender adds up usable assets after haircuts, divides by 60 months, and treats the result as monthly income.
Typical haircuts on the depletion path:
| Asset | Share counted |
|---|---|
| Cash accounts, CDs | 100% |
| Securities | 80% |
| Private stock | 75% |
| Retirement accounts | 70% at any age |
| Real-estate equity | 60% |
Run the model. You hold $1,500,000 in securities (80%, so $1,200,000) plus $300,000 in cash (100%, so $300,000). That is $1,500,000 usable. Divided by 60 months, it gives $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 minimums are real. Qualified assets must be at least the lesser of $1,000,000 or 1.25 times the loan balance. If depletion is your only income source, you also need at least $250,000 liquid. Asset-derived income can also supplement documented income up to a 45% debt-to-income ratio. When it supplements, the minimum-assets rule is waived.
Leverage runs lower here on non-primary use:
- Primary residence or second home: up to 80% on a purchase or rate-and-term refinance, and 60% on a cash-out refinance.
- Investment property: up to 65% on a purchase or rate-and-term refinance, and 60% on a cash-out.
Cash-out proceeds never count as qualifying assets. A first-time investor on this path needs a 700 score.
What Doesn’t Count, and What to Do About It
Several asset types are not published as eligible on either path. These include cryptocurrency, precious metals, collectibles, and pledged or borrowed funds. Business accounts count only for your ownership share, if at all.
On the depletion path, these are also excluded:
- custodial accounts
- deferred compensation
- escrow accounts
- foreign funds
- cash on hand
- stock options
- non-vested restricted stock units
- funds from non-regulated financial companies
The documented route is to convert such holdings into a seasoned cash balance in a regulated account. The lender then reviews the source of those funds. Plan for that conversion before you apply, not after.
Is This Really “No Documentation”?
No. Brokers hear this one constantly. The path drops income paperwork and adds asset paperwork.
Expect statements for every qualifying account. On the qualifier path, that means two months per account and 60 days of seasoning. On the depletion path, statements must be at least 120 days old at application, plus the most recent one within 45 days. Funds from the sale of a business, an inheritance, or a legal settlement are excused from that seasoning, though the lender still reviews the source.
This is a consumer mortgage, so standard consumer disclosures apply. That is a real difference from the business-purpose loans discussed next.
Who Fits, and Who Doesn’t
The fit is a cash-heavy, income-light profile:
- a retiree living off a portfolio
- someone who just sold a business
- an heir or settlement recipient
- an early-retired professional
- a household with big balances and thin documented income
Across the network, a few lenders in the qualifier space want strong balances relative to the loan. The strictest overlays want deep liquidity even when the math technically clears.
You are probably not a fit in these cases:
- Your wealth sits in crypto, collectibles, or a private business you cannot convert.
- Your balances are modest. A depletion floor of $250,000 liquid rules out many people before leverage even enters.
- You need high leverage on an investment property. Depletion caps it at 65% on a purchase.
Lendmire’s piece on how super jumbo DSCR underwriting works for asset-rich borrowers with no current job covers the larger-balance version of this situation.
Buying a Rental? Use a DSCR Loan Instead
If the house is a rental, an asset-based consumer mortgage is usually the wrong tool. A rental purchase fits a DSCR loan. It qualifies primarily on property-level rental income covering the payment, subject to lender guidelines. The complete DSCR loans guide walks through the mechanics.
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. The CFPB’s rule text treats credit for non-owner-occupied rental property as business-purpose. Business purpose is not a free pass, though, and a Hunton analysis notes that exempt status does not make other rules disappear.
The practical result is simple. Your job does not enter a DSCR file, but the property, credit, assets, and entity do. If the rent covers the full monthly obligation, the property can stand on its own. If it does not, your employment would not help. You would need a lower balance, more cash down, or a different program. Select lenders in the network do offer programs below 1.00 coverage, but leverage and terms adjust.
You cannot use a DSCR loan for a home you will live in. For that, the asset paths above apply.
Retirement Accounts and the Tax Question
Retirement balances count on both paths, but at different percentages. The qualifier path counts them at 90% under 59½ and 100% after. The depletion path counts them at 70% at any age. If most of your wealth sits in a 401(k), the path you choose changes your usable total.
Tax treatment varies; consult a qualified professional before restructuring any account.
Common Mistakes
- Mixing the tables. Using the qualifier path’s 100% credit with the depletion path’s 60-month divisor does not work. Name the path first.
- Counting unseasoned money. Cash moved in last month may not satisfy seasoning.
- Assuming borrowed or pledged funds count. They are not published as eligible.
- Planning around qualifier-path cash-out. It is lender-set and unpublished.
Frequently Asked Questions
Can I qualify with literally zero income?
Yes, on the asset qualifier path, where no income is documented. Your eligible assets must cover the entire loan after the credit percentages, and the lender still reviews credit and the property. On the depletion path, your assets are the income.
Does the program change for a Colorado mountain second home?
No. A second home uses the same figures as a primary residence: up to 80% on a purchase on either path. Local prices and property specifics shape the file, but not the program terms.
Can I use an asset-based mortgage on a rental?
Only on the depletion path, at up to 65% on a purchase or rate-and-term refinance and 60% on a cash-out. Most rental buyers do better with a DSCR loan, which is reviewed on the property’s rent.
Does my 401(k) count without being withdrawn?
Retirement balances count at stated percentages: 90% or 100% on the qualifier path depending on age, and 70% on the depletion path. Confirm the lender’s treatment for your account type at the start.
Do I need a big credit score?
The qualifier path publishes a 600 minimum. The depletion path follows the lender’s matrix, and a first-time investor there needs a 700. Approval is never promised, and every file is underwritten individually.
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. Lendmire is a broker that arranges financing through select lenders in its network, and nothing here is a commitment to lend. Reach the team at 828-256-2183 or request a quote.
Key Terms Defined
Asset qualifier: a path where eligible assets alone must cover the whole loan, with no income documented.
Asset depletion: a path that divides usable assets by 60 months to create monthly qualifying income.
Seasoning: how long funds have sat in an account before the lender counts them.
Loan-to-value (LTV): the loan balance as a percentage of the property’s value.
Debt-to-income (DTI): monthly debts as a share of monthly income, tested on the depletion path.
DSCR: debt service coverage ratio, meaning rent divided by the property’s monthly obligation.
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. Accredited Real Estate Schools
2. CFPB Regulation Z §1026.3, Exempt Transactions
3. Hunton, “Beware of Business Purpose”
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 You Get an Asset Depletion Mortgage After a Foreclosure or Short Sale? · Is an Asset-Based Mortgage Reported to Credit Bureaus Like Any Other Mortgage? · Does a Securities-Backed Line of Credit Hurt Your Asset-Based Mortgage Application?
Guides: Asset-Based Mortgage in Colorado
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.