The Quick Read: Usually, liquid and documented accounts in your own name count, meaning savings, money market, CDs, brokerage accounts and vested retirement accounts, while home equity, borrowed or pledged funds, unseasoned gifts and unvested stock do not, and the share of each balance that counts depends on the path you qualify on. Across the wholesale network Lendmire works with, the same account can count at different percentages on different paths, so name the path before you add up a balance.
- Asset qualifier path: your eligible assets must cover the entire loan, and no employment or income is documented.
- Asset depletion path: eligible assets, after haircuts, are divided by 60 months to create a monthly qualifying income.
- Retirement accounts: 90% under age 59½ and 100% at 59½ or older on the qualifier path, but 70% at any age on the depletion path.
- Never counted as written: crypto, precious metals, collectibles, borrowed funds and most business accounts, unless you first convert them to a seasoned cash balance.
- Pennsylvania: the program figures are the same here as in any other state where Lendmire’s consumer lending is licensed.
If you are a retiree, a business seller or someone living off a portfolio, this page tells you which statements to pull first.
Key Terms Defined
Asset-based mortgage: a home loan where the lender relies on your savings and investments instead of your paycheck. The market also calls it asset depletion, asset utilization or asset dissipation.
Haircut: the share of an account’s balance a lender refuses to count. A 70% credit means a 30% haircut.
Vested: money that is fully yours to keep, with no employer condition left to meet.
Seasoning: the time funds must sit in an account, with statements to prove it, before a lender trusts them.
Debt-to-income ratio (DTI): your monthly debts, including the new housing payment, divided by your monthly income.
DSCR loan: a business-purpose investor loan that qualifies primarily on property-level rental income covering the payment, subject to lender guidelines.
Which Path Fits Your Situation?
Two paths exist, and you qualify on only one at a time. The asset qualifier path asks whether your eligible assets cover the whole loan. The asset depletion path asks whether your assets, converted into monthly income, can carry the housing payment and your other debts.
The asset qualifier path. Your eligible balances, after the credit percentages below, must equal or exceed the entire loan amount. You document no employment and no income. Typical ceilings on select programs are 80% loan-to-value on a purchase and 75% on a refinance for a principal residence or second home, with loans up to $4,000,000. The credit-score floor is 600, subject to underwriting. Reserves are not required at or below 75% loan-to-value. Above that, the lender sets them.
The asset depletion path. Usable assets are divided by 60 months. The result is a qualifying income that runs through the DTI test. On a principal residence or second home, typical ceilings are 80% on a purchase or rate-and-term refinance and 60% on a cash-out refinance. On an investment property they are 65% and 60%. Loan amounts run from $125,000 to $3,500,000. Cash-out proceeds never count as qualifying assets.
Neither path means no documentation. You skip income documents, but every account is documented. These figures are ceilings and floors, never offers, and each file is underwritten individually.
Which Accounts Count on the Asset Qualifier Path?
Cash-type accounts and brokerage accounts count in full on this path. Retirement accounts count at 90% before age 59½ and 100% after. Balances combine across accounts, and the total must cover the loan.
| Account | Share that counts | Notes |
|---|---|---|
| Savings | 100% | Two months of statements |
| Money market | 100% | Two months of statements |
| Certificates of deposit | 100% | Two months of statements |
| Brokerage accounts | 100% | Must be in your name |
| 401(k) or IRA, under 59½ | 90% | Vested balance only |
| 401(k) or IRA, 59½ or older | 100% | Vested balance only |
Seasoning here is 60 days, with two months of statements for each qualifying account. These figures come through select programs and stay subject to underwriting.
Which Accounts Count on the Asset Depletion Path?
The depletion path discounts everything except cash. That is because the balance is being turned into income, not simply matched to a loan.
| Account | Share that counts | Notes |
|---|---|---|
| Cash accounts | 100% | Checking, savings, money market |
| Certificates of deposit | 100% | Statements required |
| Securities | 80% | Stocks, bonds, funds |
| Private stock | 75% | Documented valuation |
| Retirement accounts | 70% | Any age |
| Real-estate equity | 60% | Other than the loan’s own collateral |
Statements must be at least 120 days old at application, plus one statement dated within 45 days. Funds from the sale of a business, an inheritance or a legal settlement are excused from that seasoning.
You also need minimum assets. The usual test is the lesser of $1,000,000 or 1.25 times the loan balance. If assets are your only income source, you need at least $250,000 in liquid funds. Asset income can instead supplement documented income up to a 45% DTI. When it does, the minimum-assets rule is waived. A first-time investor on this path needs a 700 credit score. Otherwise the lender’s score and loan-amount matrix applies. Leverage, reserves, and pricing vary by lender and program; the final terms follow the full file review.
What Does Not Count, and Why?
Anything you cannot reach, cannot prove or do not own outright stays out. That logic predicts the answer for most accounts not on the tables above.
On the depletion path, the accounts listed below are not eligible at all:
- custodial accounts
- deferred compensation
- escrow accounts
- foreign funds
- cash on hand
- stock options
- non-vested restricted stock units
- funds from non-regulated financial companies
Cryptocurrency, precious metals, collectibles, borrowed or pledged funds and business accounts beyond your ownership share are not published as eligible on either path. Do not assume they count at some percentage. The documented route is to convert them to cash and let that cash season in a regulated account. The lender then reviews the source.
Gifts that have not been deposited and seasoned do not count either. Unvested equity compensation does not count, because the money is not yet yours.
Home equity on the house you are buying is a separate issue. Federal rules for consumer mortgages let a lender judge repayment on income, on assets other than the home securing the loan, or on both. The CFPB’s ability-to-repay rule excludes the value of that dwelling. The depletion path does give 60% credit to real-estate equity, but that is equity in other property, never in the loan’s own collateral.
Why Do Retirement Accounts Count So Differently?
Retirement accounts are where programs disagree most. The qualifier path gives 90% before age 59½ and 100% after. The depletion path gives 70% at any age. The same IRA can therefore look different on each path.
Age 59½ shows up because of a tax threshold, not a lending rule. The IRS applies a 10% additional tax to early distributions from qualified plans, generally those taken before 59½. That covers 401(k)s, 403(b)s and IRAs. Exceptions exist, and nontaxable rollovers are not hit by it. Lenders borrow the age as a benchmark for how costly it would be to reach the money.
Counting an account on paper does not trigger tax. Withdrawing from it can. Tax treatment can depend on how the funds are used and how the property is held; borrowers should keep clear records and speak with a qualified tax professional before relying on any deduction.
Only the vested balance counts, and the lender wants proof you can reach it. If a 401(k) secures an outstanding loan, expect that amount to come off the vested balance. For a deeper look at retirement balances, see Lendmire’s piece How to Count Retirement Accounts as Reserves on an Asset Depletion Mortgage.
What About Trusts, Business Accounts and Other Gray Areas?
For gray-area accounts, the answer is “it depends on the program,” and the safest move is to convert and season.
Trusts. Federal commentary lists funds available from a trust as a possible asset. Programs treat them unevenly. A revocable living trust is the easier case, because you control the money. Titling and access get reviewed closely, so raise any trust early.
Business accounts. Owning 100% of your company does not make its operating account yours for this purpose. Most files exclude it. If you want business money to count, move your share into a personal account and let it season.
Joint accounts. If a spouse who is not a borrower shares the account, expect the lender to ask about access and ownership. Naming that early keeps the file clean.
Mixed brokerage accounts. A brokerage account holding stocks and crypto may be reviewed holding by holding on the depletion path.
Foreign holdings. Foreign funds are not eligible on the depletion path.
Even on a non-QM loan, the lender must confirm what it relies on. As a compliance-law review of the rule explains, a lender may rely on assets, income or both, but it must verify them with third-party records. Non-QM does not mean no verification.
How Do Counted Accounts Become a Coverage Figure?
The order of operations is the same on every file: list, remove, discount, subtract, then convert or compare. Illustrative arithmetic follows. The lender’s own calculation governs.
Qualifier path example. Take an $800,000 loan. You hold $330,000 in brokerage accounts (100% counts, so $330,000). You hold $300,000 in a 401(k) and you are under 59½ (90% counts, so $270,000). You hold $200,000 in savings (100% counts, so $200,000). Usable assets total $800,000, which covers the loan, so the file is reviewed on assets alone, subject to underwriting.
Depletion path example. You hold $1,500,000 in securities (80% counts, so $1,200,000) and $300,000 in cash (100% counts, so $300,000). 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 your other debts through the DTI test.
Before the division, funds you need for the down payment and closing costs come out of the pool. You cannot count the same dollar twice. That is a common reason a borrower’s math falls short of the lender’s.
Can I Use These Accounts for a Rental?
Yes, but the path matters. An asset-based mortgage on an investment property runs only on the depletion path, at the lower 65% and 60% ceilings.
If the property is a rental, ask whether a DSCR loan fits better. It is a business-purpose investor loan that qualifies primarily on property-level rental income covering the payment, subject to lender guidelines. In that structure your portfolio does not become income. It becomes reserves, the cash cushion a lender wants behind the file. Select lenders in the network also review scenarios below 1.00 coverage, though leverage and terms adjust. The full picture is in Lendmire’s complete DSCR loans guide.
A simple rule of thumb: use assets as income when you are buying a home to live in and your paycheck is thin. Use rent as the qualifier when you are buying to rent it out.
Does Pennsylvania Change Anything?
Not for the account rules. The program figures here are the same for a borrower in Pennsylvania as for one in any of the other states where Lendmire’s consumer lending is licensed. That footprint is 16 states, and Pennsylvania is one of them. Lendmire is a broker, so it arranges financing through select lenders, and those lenders do the underwriting.
State facts such as local prices, taxes and insurance shape your budget. They do not change which accounts count.
What Should You Do Before You Apply?
Keep your accounts boring. Large moves right before an application invite questions, and each question costs time and paperwork.
1. Pull complete statements. Keep them consecutive, with every page, for every account you want counted.
2. Check the dates. The qualifier path wants 60 days of seasoning and two months of statements per account. The depletion path wants statements 120 days old plus one within 45 days.
3. Do not move large sums. Be ready to explain any large transfer with a short letter and paper trail.
4. Convert odd assets early. Crypto, metals and business funds need to become seasoned cash in a regulated account first.
5. Do not double-count. Down payment and closing funds come out of the pool before you convert it to income.
6. Use vested balances. Online calculators that count a full 401(k) at 100% overstate what most programs accept.
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.
Frequently Asked Questions
Do I have to sell or pledge my investments?
No. The lender counts eligible balances on paper and does not take custody of your accounts. You still need statements that prove ownership and, for retirement accounts, access. Funds you commit to the down payment and closing costs are used up and do not count again.
Can I use my 401(k) or IRA?
Yes, vested balances count. On the asset qualifier path they count at 90% before 59½ and 100% after. On the asset depletion path they count at 70% at any age. All figures are subject to underwriting and program terms.
Does cryptocurrency count?
Not as written. It is not published as eligible on either path. The documented route is to sell it, deposit the cash in a regulated account and let it season. The lender then reviews the source of the funds.
Can my business account count if I own 100% of the company?
Usually not. Ownership alone does not make operating funds yours for this purpose. Moving your share to a personal account and seasoning it is the common fix, and the lender reviews the source.
Does a recent gift or inheritance count?
An undeposited or unseasoned gift does not count. Inheritance funds are treated differently on the depletion path, where inheritance, sale-of-business and legal-settlement money is excused from the 120-day statement age. You still document where the money came from.
Lendmire’s asset-based mortgage in Pennsylvania page presents the program for Pennsylvania 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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References
1. CFPB Regulation Z §1026.43 (ability-to-repay rule)
2. IRS Topic 558: Additional Tax on Early Distributions from Retirement Plans
3. Consumer Financial Services Review: CFPB Addresses Non-QMs Under the Ability-to-Repay Rule
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 a Margin Balance Is Treated on an Asset Depletion Mortgage · Is an Asset-Based Mortgage Reported to Credit Bureaus Like Any Other Mortgage? · What Counts as an Asset Statement for a Mortgage?
Guides: Asset-Based Mortgage in Pennsylvania
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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- Lendmire LLC · Firm NMLS# 2371349 · Verify firm licensure
Legal disclosures. Lendmire (NMLS# 2371349) is a state-licensed mortgage brokerage that arranges financing through wholesale lender relationships. Lendmire is not a direct lender, depository institution, or registered financial advisor. The discussion above is general informational content about real estate financing — it is not financial, legal, or tax advice, and readers should consult licensed professionals for guidance on their individual circumstances. Loan inquiries are subject to lender underwriting; this article does not represent a commitment to lend. Loan terms, rates, and qualification standards vary by borrower, property, and state, and are subject to change at any time. Equal Housing Opportunity. NMLS Consumer Access: nmlsconsumeraccess.org.