The Quick Read: Cash, CDs, money market and savings accounts, brokerage accounts, and vested retirement accounts generally count, but how much of each balance counts depends on which of two qualifying paths you use. On the asset qualifier path, most of those accounts count at 100%. On the asset depletion path, securities and retirement money are discounted.
- Asset qualifier path: your eligible assets must cover the entire loan amount, and no employment or income is documented.
- Asset depletion path: usable assets are divided by 60 months to create qualifying income, which then runs through the debt-to-income test.
- Cash and CDs count at 100% on both paths. Retirement accounts count at 90% under age 59½ and 100% after on the qualifier path, but at 70% at any age on the depletion path.
- Crypto, gifted or borrowed funds, and pledged money are not published as eligible on either path.
- Montana borrowers see the same program figures as everyone else. Figures are ceilings and floors through select programs, subject to underwriting.
What “Counts” Means on an Asset-Based Mortgage
An account counts when the lender can verify it, you own it, and you can reach the money. Nothing is sold or pledged. The lender looks at the balance, applies a percentage by account type, and uses the result to qualify you.
People use “asset-based mortgage” for two different products. Across Lendmire’s wholesale network, we place files on one of two paths, and a borrower is qualified on one path at a time.
The asset qualifier path covers the whole loan with assets. If your eligible assets, after the percentages below, equal or exceed the entire loan amount, you qualify on assets alone. No employment or income is documented.
The asset depletion path turns assets into income. The lender adds up usable assets, divides by 60 months, and treats the answer as monthly income. That income has to carry the housing payment and your other debts through the debt-to-income test.
Never blend the two tables. A retirement account counted at 90% on one path is counted at 70% on the other. Picking the right path comes first.
Which Path Fits You?
The qualifier path fits you if your liquid assets are at least as large as the loan. That is common for retirees, people who sold a business, and households holding an inheritance or settlement. You skip the income math entirely.
The depletion path fits you if your assets are large but smaller than the loan, or if you want to use assets as income alongside a pension or other earnings. 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.
The two paths also differ on leverage and loan size, which affects the choice:
| Factor | Asset qualifier | Asset depletion |
|---|---|---|
| Purchase leverage | Up to 80% | Residence or second home up to 80%; investment property up to 65% |
| Refinance leverage | 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 |
| Credit floor | 600 minimum | The lender’s matrix |
Cash-out proceeds never count as qualifying assets on the depletion path. Whether cash-out is allowed at all on the qualifier path is the lender’s call and is not published, so ask before you plan around it. All of this is subject to underwriting and through select programs only.
Account-by-Account: What Counts and How Much
Here is the lookup version. Percentages are the share of the balance that counts, through select programs and subject to underwriting.
| Account | Qualifier path | Depletion path |
|---|---|---|
| Checking/savings | Savings 100% | Cash accounts 100% |
| Money market | 100% | Cash accounts 100% |
| Certificates of deposit | 100% | 100% |
| Brokerage accounts | 100% | Securities 80% |
| Private stock | Not published | 75% |
| 401(k) and IRA | 90% under 59½; 100% at 59½+ | 70% at any age |
| Real-estate equity | Not published | 60% |
Qualifier-path accounts combine, so a brokerage account, a savings account, and a retirement account can add together to reach the loan amount.
A word on checking accounts: the qualifier path lists savings, money market, CDs, and brokerage. A pure checking balance is usually proven as cash, but the lender’s guideline on your file governs.
Why Some Accounts Count Less
Lenders discount an account for three reasons: price swings, access, and verification.
Price swings. A stock portfolio can drop between application and closing. That is why securities count at 80% on the depletion path while cash counts in full.
Access. Retirement money comes with strings. The IRS says withdrawals before age 59½ are generally early distributions subject to an extra 10% tax unless an exception applies, and that applies to both 401(k)s and IRAs. That friction is the logic behind the 90% treatment under 59½ on the qualifier path. Once you reach 59½, the same account counts at 100% there. On the depletion path, retirement balances count at 70% regardless of age.
Verification. A lender can confirm a brokerage statement in minutes. It cannot easily confirm a coin wallet or a loan from a friend.
Tax treatment varies; consult a qualified professional before moving retirement money for any reason.
Accounts That Do Not Count
Several account types are shut out, and a few are simply not published as eligible.
Not eligible on the depletion 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
Not published as eligible on either path: cryptocurrency, precious metals, collectibles, business accounts beyond your ownership share, and pledged or borrowed funds. We do not list these at a percentage because the programs do not. Gifted funds fall in the same bucket, so do not assume a gift works for qualifying the way it might for a down payment on another program.
The documented route for any of these is conversion. Sell the asset, deposit the cash in a regulated account, season it, and let the lender review the source. Once it sits as a seasoned cash balance, it is treated like cash.
One more limit. The value of the home you are buying cannot be counted. The federal ability-to-repay rule lets a creditor consider income or assets other than the value of the dwelling securing the loan. Equity in a different property can count at 60% on the depletion path.
Whose Name Is on the Account?
The clean case is an account in your own name. Joint accounts, a spouse who is not on the loan, trusts, and business-owned accounts all invite extra review. The percentages above are not published for those structures, so the lender decides case by case.
Business accounts deserve the most caution. Only your ownership share is a candidate, and the lender will want to see that pulling the money would not hurt the business. If the money matters to your file, move it into your personal name well before you apply and let it season. Do not move it the week of application.
Seasoning and Statements: What the File Needs
Both paths document the assets. “No income documentation” never means “no documentation.”
On the qualifier path, expect 60 days of seasoning and two months of statements for each account you use. On the depletion path, statements must be at least 120 days old at application, plus the most recent statement within 45 days. Money from the sale of a business, an inheritance, or a legal settlement is excused from that seasoning, though the lender still reviews the source.
Large, unexplained deposits are the usual snag. If a lump sum lands in a savings account, have the paper trail ready: the closing statement, the estate letter, the settlement agreement.
Worked Example: Qualifier Path
Say you are buying a home with an $800,000 loan on the asset qualifier path. You hold $330,000 in brokerage accounts, $300,000 in a 401(k) and you are under 59½, and $200,000 in savings.
- Brokerage at 100% counts $330,000.
- The 401(k) at 90% counts $270,000.
- Savings at 100% counts $200,000.
Total usable assets: $800,000. That equals the loan amount, so you qualify on assets alone, subject to the lender’s review. If you were 59½ or older, the 401(k) would count at 100% and you would have a cushion.
This is illustrative. The lender’s own calculation governs.
Worked Example: Depletion Path
Now take a borrower with $1,500,000 in securities and $300,000 in cash, using the depletion path.
- Securities at 80% count $1,200,000.
- Cash at 100% counts $300,000.
- Usable assets total $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 debt-to-income test. If you are using depletion as your only income source, your 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. Again, illustrative only.
Montana Borrowers: What Stays the Same
The program figures do not change by state. A Montana borrower sees the same percentages, seasoning rules, and leverage ceilings as anyone else.
What does change is who can place the loan. Lendmire’s consumer mortgage lending is licensed in 16 states, and Montana is one of them. As a broker, Lendmire arranges these loans through select lenders in its network. The lenders review, underwrite, and approve.
This is a consumer mortgage for a home you will live in, a second home, and, on the depletion path only, an investment property. If you are buying a rental purely for rent income, a different product usually fits better. Lendmire’s complete DSCR loans guide covers business-purpose rental financing, where the property’s rent carries the loan.
Common Mistakes
Moving money right before applying. A transfer creates a new deposit that needs sourcing, and it can reset the seasoning clock.
Cashing out a retirement account to “make it liquid.” That can trigger tax and a deposit the lender must trace. Counting the account in place at its percentage is often the better route.
Counting the same dollar twice. Money you use for the down payment cannot also sit in the account that qualifies you. Run the math with what remains.
Assuming 100% everywhere. The qualifier path and the depletion path give different percentages for the same account.
Ignoring credit. The qualifier path has a 600 minimum score. The depletion path follows the lender’s matrix, and a first-time investor on the depletion path needs 700. Housing history is typically 0x30x12, and multiple bankruptcies are not eligible. A housing event needs four years of seasoning on the depletion path.
What to Gather Before You Apply
- Two recent monthly statements for every account you plan to use
- Older statements at least 120 days back if you are on the depletion path
- A paper trail for any large deposit: a sale closing statement, estate letter, or settlement agreement
- Proof that retirement accounts are vested and that you can access them
- A list of anything held in a spouse’s, trust’s, or business’s name
- A plan for converting crypto or other unlisted assets to seasoned cash, if relevant
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. You can reach the team at 828-256-2183.
Key Terms Defined
Haircut: the discount a lender applies to an account’s balance, so only part of it counts.
Seasoning: the time money must sit in an account, shown on statements, before a lender will count it.
Vested: money in a retirement plan that is fully yours to take, with no employer conditions left.
Asset qualifier path: qualifying by showing eligible assets that cover the whole loan, with no income documented.
Asset depletion path: qualifying by dividing usable assets by 60 months to create monthly income.
Debt-to-income test: the check that your monthly debts, including the new housing payment, fit within your qualifying income.
Frequently Asked Questions
Does my 401(k) count if I’m still working?
Usually yes, if you are vested and can reach the money. On the qualifier path it counts at 90% under age 59½ and 100% at 59½ or older. On the depletion path it counts at 70% at any age. Some employer plans restrict access while you are employed, so the lender may ask for plan documents showing you can withdraw.
Do I have to sell my investments?
No. On both paths the lender counts the balance at its percentage and you keep the account. You only sell if you want to convert an asset the program does not list, such as crypto, into a seasoned cash balance.
Can I use my spouse’s account?
It depends on the lender and how the account is titled. Joint accounts or accounts held by a spouse who is not on the loan need the lender’s review, and the percentages are not published for those structures.
Does a recent inheritance or home-sale payout count?
Yes, once it is documented. On the depletion path, sale-of-business, inheritance, and legal-settlement funds are excused from the 120-day statement seasoning, though the lender still reviews the source. On the qualifier path, expect the 60-day seasoning and two months of statements per account.
Can I buy an investment property this way?
Only on the asset depletion path, with leverage up to 65% on a purchase or rate-and-term refinance and 60% on a cash-out. The qualifier path covers principal residences and second homes. Every file is underwritten individually, and approval is never promised. Terms depend on the lender’s guidelines, the property type, the leverage, and a full review of the credit profile.
Lendmire’s asset-based mortgage in Montana page presents the program for Montana borrowers.
About Lendmire
As a mortgage broker (NMLS# 2371349), Lendmire helps self-employed and high-net-worth borrowers in 16 states qualify on bank statements, a profit-and-loss statement, 1099s or liquid assets instead of tax returns, through wholesale lenders. Lendmire is never the lender; program terms are set by the lender and its guidelines. Scotsman Guide named Lendmire a Top Mortgage Workplace in both 2025 and 2026.
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References
1. IRS, Exceptions to tax on early distributions
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 Montana
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.