The Quick Read: Personal, documented, liquid accounts count: savings, money market, certificates of deposit, brokerage accounts, and vested retirement accounts, some at a discount. Business accounts, borrowed money, crypto, and the equity in the home you are buying generally do not count, subject to underwriting and each program’s guidelines.
- Cash, CDs, and money market balances count at 100% on both paths.
- Brokerage accounts count at 100% on the asset qualifier path and 80% on the asset depletion path.
- Retirement accounts count at 90% under age 59½ and 100% after on the qualifier path, and at 70% at any age on the depletion path.
- Crypto, precious metals, business accounts, and borrowed funds are not published as eligible on either path.
- Every counted account needs statements, because “no income documentation” never means “no documentation.”
If you are a retiree, a business seller, or someone living off a portfolio, your balances may be large while your paycheck is small. Asset-based mortgages exist for you. Colorado is one of the 16 states where Lendmire’s consumer mortgage lending is licensed. The program figures below do not change by state, and they are ceilings and floors, not offers.
Two Paths, and You Use One at a Time
Across the wholesale network Lendmire works with, asset-based programs split into two paths. A borrower is reviewed on one path per loan. Never blend their numbers.
The asset qualifier path. Your eligible assets, after the credit percentages below, must equal or exceed the entire loan amount. No employment or income is documented. Loans run up to $4,000,000 through select programs.
The asset depletion path. Your usable assets are divided by 60 months to create a monthly qualifying income. That income must carry the full housing payment and your other debts through the debt-to-income (DTI) test. Loans run from $125,000 to $3,500,000, subject to underwriting.
Neither path sells, freezes, or pledges your accounts. The assets stay where they are. The lender runs a qualifying test and checks your statements.
One caution on terminology. Some search results for “asset-based lending” describe business loans secured by inventory, equipment, or receivables. This article covers personal home loans qualified on your own accounts. Nothing here involves pledging collateral.
Key Terms Defined
Eligible asset: An account a lender will count toward qualifying, after applying its percentage.
Haircut: The share of a balance a lender subtracts because of market risk, taxes, or access limits. An 80% credit means a 20% haircut.
Seasoning: How long funds have sat in your account. Seasoned funds are easier to document than money that just arrived.
Asset qualifier path: Eligible assets must cover the whole loan. No income is documented.
Asset depletion path: Usable assets divided by 60 months become qualifying monthly income.
Debt-to-income (DTI) ratio: Your monthly debts, including the new housing payment, compared with your monthly qualifying income.
What Counts on the Asset Qualifier Path
This path rewards simple, liquid balances. Through select programs, the share of each balance that counts typically looks like this:
| Account | Share that counts |
|---|---|
| Savings | 100% |
| Money market | 100% |
| Certificates of deposit | 100% |
| Brokerage accounts | 100% |
| 401(k) and IRA, under 59½ | 90% |
| 401(k) and IRA, 59½ or older | 100% |
Accounts combine. Here is an illustration only, since the lender’s own calculation governs. Say you want an $800,000 loan. You hold $330,000 in brokerage accounts (100% counts, so $330,000), $300,000 in a 401(k) while under 59½ (90% counts, so $270,000), and $200,000 in savings (100%, so $200,000). Together that is $800,000 of usable assets. That covers the loan on assets alone.
Leverage on this path is typically up to 80% loan-to-value (LTV) on a purchase and up to 75% on a refinance, for a principal residence or second home. Whether cash-out proceeds are allowed is set by the lender and is not published, so ask before planning around it.
Other terms on most files: a 600 minimum credit score, 60 days of seasoning, and two months of statements for each qualifying account. Reserves are typically not required at or below 75% LTV. Above that, the lender sets them.
What Counts on the Asset Depletion Path
This path applies a heavier discount, because it turns balances into income. The share of each balance that counts typically looks like this:
| Account | Share that counts |
|---|---|
| Cash accounts | 100% |
| Certificates of deposit | 100% |
| Securities | 80% |
| Private stock | 75% |
| Retirement accounts, any age | 70% |
| Real-estate equity | 60% |
Again, illustration only. Say you hold $1,500,000 in securities (80% counts, so $1,200,000) and $300,000 in cash (100%, so $300,000). That is $1,500,000 usable. Divided by 60 months, it yields $25,000 of monthly qualifying income. That income then has to carry the housing payment and your other debts through the DTI test.
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.
Leverage here is typically up to 80% on a purchase or rate-and-term refinance and 60% on a cash-out refinance for a principal residence or second home. For an investment property, the figures drop to 65% on a purchase or rate-and-term refinance and 60% on a cash-out. Cash-out proceeds never count as qualifying assets.
How Much Do You Need in Assets?
Depletion-path files typically require 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, liquid assets generally cannot fall below $250,000. If asset-derived income only supplements documented income, it can be used up to a 45% DTI ratio, and the minimum-assets rule is waived.
Credit matters too. The qualifier path’s published floor is a 600 score. The depletion path follows the lender’s score and loan-amount matrix, and a first-time investor on that path typically needs a 700. Housing history is generally 0x30x12, though one 30-day late in the last twelve months is considered case by case. Multiple bankruptcies are not eligible, and a housing event needs four years of seasoning on the depletion path.
Why Some Accounts Count and Others Don’t
Think of four tests. An account counts when it is verifiable, liquid, accessible to you, and free of someone else’s claim.
Cash and CDs pass cleanly. They are easy to verify and hold their value. That is why they count at 100%.
Brokerage accounts pass with a market-risk tradeoff. Prices move. The depletion path therefore counts securities at 80%, while the qualifier path counts brokerage balances at 100% because the assets must cover the entire loan.
Retirement accounts pass with an access tradeoff. Early withdrawals before 59½ generally trigger an extra 10% tax, and the IRS confirms that tax does not apply once you reach 59½. That logic explains why the qualifier path counts retirement money at 90% before that age and 100% after. The depletion path applies 70% at any age.
Home equity fails a basic test. Under the federal ability-to-repay rule, a lender looks at your income or assets other than the value of the dwelling securing the loan, as the rule text at Cornell Law spells out. Equity in the home you are buying cannot be the asset. Equity in other real estate counts only on the depletion path, at 60%.
Borrowed money fails. A margin balance or a 401(k) loan is someone else’s money. It reduces or voids the eligible balance.
Crypto, Business Accounts, and Other Gray Areas
Cryptocurrency, precious metals, collectibles, business accounts beyond your ownership share, and pledged or borrowed funds are not published as eligible on either path. Plan on that. Do not expect a percentage.
The documented route is to convert them to cash in a regulated account. The lender reviews the source of those funds. Convert early, because seasoning rules apply.
Business accounts deserve a special warning. If you own an LLC, its operating account belongs to the entity, and the earnings inside it never left the entity. Moving that money into your personal account right before applying invites sourcing questions. Your personal accounts are fine. Sale-of-business, inheritance, and legal-settlement proceeds are excused from the depletion path’s seasoning rule, though the lender still reviews them.
Equity compensation follows the same logic. Non-vested restricted stock units and stock options are not eligible on the depletion path. Once units vest and sit in a brokerage account, they are securities like any other.
Titling, Trusts, and Joint Accounts
Account ownership matters as much as account type. A joint account with your spouse is generally straightforward when both of you are on the loan. A custodial account, one held for a minor, is not eligible on the depletion path. Revocable-trust assets can count with documentation showing you hold the beneficial interest, subject to the lender’s review.
An account in only a non-borrowing spouse’s name usually needs extra work. Retitling or adding that person to the file can help, depending on the program.
Documentation: The Part People Underestimate
Asset-based means documented. The federal ability-to-repay rule requires a lender to verify the assets it relies on using reasonably reliable third-party records, per the CFPB’s Regulation Z text. In practice, that means statements.
- Asset qualifier path: 60 days of seasoning and two months of statements for each qualifying account.
- Asset depletion path: statements at least 120 days old at application, plus the most recent statement within 45 days.
Large, recent deposits get questioned. Moving money between your own accounts is fine, but expect to show the trail. This is why staging matters. Fund your accounts early, keep them in your name, and avoid shuffling balances in the weeks before you apply.
Which Accounts Should You Count?
More is not always better. Committed funds, including your down payment and closing costs, come out of the pool first. Pulling in more accounts lifts the pool, but it can also reduce the cash you keep after closing.
A practical way to decide:
1. List every account, who owns it, and whether it is vested.
2. Drop anything that fails the four tests: business-owned, borrowed, unvested, or crypto.
3. Note your age against 59½ for each retirement account.
4. Choose the path. If your assets cover the loan outright, the qualifier path is cleaner. If you need your assets to produce income, use depletion.
5. Subtract your down payment and closing costs from the pool.
6. Gather statements and explanations for any large deposit.
A sample Colorado picture: a retiree selling a mountain-town business and downsizing to a Front Range home. Sale proceeds sit in cash. The rest is in a brokerage account and an IRA. Cash and brokerage count at 100% on the qualifier path, the IRA at 100% past 59½. If the total covers the loan, no income gets documented. If it does not, the depletion path may convert the same balances to income at lower percentages, subject to underwriting.
What About Investment Property?
This is where many investors get tripped up. Asset depletion can apply to an investment property, but only on the depletion path, at lower leverage: 65% on a purchase or rate-and-term refinance and 60% on a cash-out. The qualifier path covers principal residences and second homes.
For a pure rental purchase, a different tool is usually the better fit. Business-purpose rental financing is typically a DSCR loan, which qualifies primarily on property-level rental income covering the payment, subject to lender guidelines. Your accounts matter there mainly for the down payment and reserves. Lendmire’s complete DSCR loans guide walks through that route. Because these are business-purpose loans, they are reviewed differently from a standard owner-occupied mortgage.
If your question is about reserves specifically, Lendmire’s piece How to Count Retirement Accounts as Reserves on an Asset Depletion Mortgage goes deeper.
Myths That Cost Borrowers Time
“The lender takes my assets.” No. Nothing is pledged or sold.
“Retirement money counts at face value.” Not on the depletion path, and only partly before 59½ on the qualifier path.
“My business account counts because I own the business.” Usually not. It belongs to the entity.
“Every lender uses the same percentages.” They do not. The figures here reflect select programs, and each file is underwritten individually.
“Asset-based means no paperwork.” The opposite. Expect statements for every counted account.
Frequently Asked Questions
Do I have to sell or withdraw anything?
No. Your accounts stay where they are. The lender uses your balances to run a qualifying test and verifies them with statements. Funds you use for the down payment and closing costs still leave your accounts, of course, and come out of the pool first.
Does my home equity count?
Not the equity in the home you are buying, because the ability-to-repay rule excludes the dwelling securing the loan. On the depletion path, equity in other real estate counts at 60%. The qualifier path does not list real-estate equity as an eligible asset.
Does my 401(k) count if I am still working?
Generally yes, if the funds are vested and held in your name. On the qualifier path it counts at 90% under 59½ and 100% at 59½ or older. On the depletion path it counts at 70% at any age, subject to underwriting.
Do RSUs and stock options count?
Not before they vest. Vested shares held in a brokerage account count as securities.
Can I combine asset income with a paycheck?
Yes, on the depletion path. Asset-derived income can supplement documented income up to a 45% DTI ratio, and the minimum-assets rule is waived when it supplements. A borrower is still qualified on one path at a time.
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 mortgage broker, not a lender, and programs are placed through select lenders in its network. Reach the team at 828-256-2183 or request a quote.
Figures here are illustrative and subject to underwriting. Programs change, and every file is reviewed individually. This is not a commitment to lend.
For current guidelines and terms, see Lendmire’s asset-based mortgage programs page.
Lendmire’s asset-based mortgage in Colorado page presents the program for Colorado borrowers.
About Lendmire
Lendmire — NMLS# 2371349 — is a mortgage broker that arranges bank statement, P&L-only, 1099-only and asset-based home financing in 16 states through wholesale lenders, on primary residences, second homes and investment properties. Every option is subject to the lender’s guidelines and full underwriting. Scotsman Guide named Lendmire a Top Mortgage Workplace in both 2025 and 2026.
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References
1. IRS, Significant ages for retirement plan participants
2. Cornell Law School LII, 12 CFR 1026.43
3. CFPB, Regulation Z § 1026.43
This article is part of Lendmire’s asset-based mortgage program — full qualification details, guidelines, and scenarios live on the program page.
Related reading: Does Real Estate Equity Count on an Asset Qualifier Mortgage? · Can Equity in a Rental Property Help You Qualify for an Asset-Based Mortgage? · How an Asset Depletion Mortgage Works
Guides: Asset-Based Mortgage in Colorado
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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- Lendmire LLC · Firm NMLS# 2371349 · Verify firm licensure
Disclosures. The information presented in this article is general market commentary, not financial, legal, or tax advice. Lendmire is a mortgage brokerage (NMLS# 2371349) — not a direct lender or depository institution — and loan placement is subject to lender underwriting. Nothing in this content represents a commitment to lend. Loan terms, pricing, and program availability vary based on borrower qualifications, property characteristics, and state of subject property, and are subject to change at any time. Lendmire complies with Equal Housing Opportunity requirements. Consumer access: nmlsconsumeraccess.org.