The Quick Read: It depends on which of two paths you use, and on how many eligible assets you hold. Through select programs in Lendmire’s wholesale network, the asset qualifier path can support loans up to $4,000,000 when your eligible assets cover the entire loan. The asset depletion path turns assets into monthly income and supports $125,000 to $3,500,000, subject to underwriting.
- Asset qualifier path: up to 80% loan-to-value on a purchase and 75% on a refinance. Eligible assets must equal or exceed the whole loan.
- Asset depletion path: up to 80% on a second-home purchase and 60% on a cash-out refinance. Usable assets divided by 60 months become your qualifying income.
- Credit: the qualifier path has a 600 minimum score. The depletion path follows the lender’s matrix.
- Documents: no employment or income is documented, but your accounts are. Statements are required on both paths.
Your balances set the ceiling. Your down payment, credit and the property’s appraised value decide where you land under it.
Which Path Fits a Montana Second Home Buyer?
Pick the asset qualifier path if your eligible accounts could pay off the whole loan. Pick the asset depletion path if your assets are large but you need them to generate income on paper. A borrower is qualified on one path at a time. The two tables never blend.
Picture a retiree who sold a business, holds seven figures in brokerage and savings accounts, and wants a lake cabin near Whitefish. Her paycheck is gone, but her statements are strong. This is the borrower both paths were built for.
On the qualifier path, the lender adds up eligible assets after the credit percentages. If the total equals or exceeds the loan, you qualify on assets alone. No employment or income is documented. The lender’s ability-to-repay review rests on the assets.
On the depletion path, the lender totals usable assets and divides by 60 months. That monthly figure is your qualifying income. It must carry the full housing payment and your other debts through the debt-to-income test. Asset income can also supplement documented income up to a 45% debt-to-income ratio, and then the minimum-assets rule is waived.
Qualifying here is not the same as getting funded. Both paths are subject to underwriting, and this is a consumer mortgage placed through select lenders.
How Do Eligible Assets Set Your Maximum Loan?
Your maximum loan starts with usable assets, not total assets. Each account type counts at a set percentage, and the percentages differ by path. Across the wholesale network, most programs trim retirement money and securities, and give full credit to cash.
Asset qualifier path (share of balance that counts):
| Asset | Counts at |
|---|---|
| Brokerage, CDs, money market, savings | 100% |
| 401(k) or IRA, under age 59½ | 90% |
| 401(k) or IRA, age 59½ or older | 100% |
Accounts combine. Here is an example: an $800,000 loan with $330,000 in brokerage accounts (100% counts, $330,000), $300,000 in a 401(k) under 59½ (90%, $270,000) and $200,000 in savings (100%, $200,000). That is $800,000 of usable assets, so the borrower is reviewed on assets alone. The lender’s own calculation governs, and this is illustrative.
Asset depletion path (share of balance that counts):
| Asset | Counts at |
|---|---|
| Cash accounts and CDs | 100% |
| Securities | 80% |
| Private stock | 75% |
| Retirement accounts, any age | 70% |
| Real-estate equity | 60% |
Run the depletion example the same way. $1,500,000 in securities counts at 80%, or $1,200,000. Add $300,000 in cash at 100%. That is $1,500,000 of usable assets. Divide by 60 months and you get $25,000 of monthly qualifying income. That income then carries the housing payment and other debts through the debt-to-income test.
Some assets do not count on the depletion path at all: 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. Crypto, precious metals, collectibles and borrowed funds are not published as eligible on either path. The documented route is converting them into a seasoned cash balance in a regulated account, with the source reviewed by the lender.
What Leverage Applies to a Montana Second Home?
On a second home, the qualifier path allows up to 80% loan-to-value on a purchase and 75% on a refinance. The depletion path allows up to 80% on a purchase or rate-and-term refinance and 60% on a cash-out refinance. Cash-out proceeds never count as qualifying assets on the depletion path.
Loan-to-value applies to the lower of price or appraised value. So a cabin priced above its appraisal shrinks your loan, and you cover the gap with cash.
Down payment matters twice. The money you put down leaves your accounts, so it reduces the balance left to qualify on. The same goes for closing costs. Many buyers size their asset test before the down payment comes out and then find the numbers short. Run it after.
Whether the qualifier path allows cash-out proceeds, and at what leverage, is set by the lender and is not published. Do not plan around it.
What Else Caps Your Number?
Four things pull the ceiling down: credit, seasoning, minimum assets, and property type. Hitting the asset math is necessary, not sufficient.
- Credit: The qualifier path has a 600 minimum score. The depletion path follows the lender’s score and loan-amount matrix. A first-time investor on the depletion path needs 700. Housing history of 0x30x12 is standard, and one 30-day late in the last twelve months is considered case by case. Multiple bankruptcies are not eligible. A housing event needs 4 years of seasoning on the depletion path.
- Seasoning: On the qualifier path, funds need 60 days in the account, with two months of statements per account. On the depletion path, statements must be at least 120 days old at application, plus the most recent statement within 45 days. Sale-of-business, inheritance and legal-settlement funds are excused from that seasoning.
- Minimum assets (depletion path): 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, never below $250,000 liquid.
- Reserves: None required on the qualifier path at or below 75% loan-to-value. Above that, the lender sets them. The depletion path has no published reserve months.
“No income documentation” never means “no documentation.” Your assets are documented on both paths. Statements, source review, the appraisal and credit all get reviewed.
Montana Property Quirks That Shrink the Loan
Montana second homes are often cabins, lake lots, ski-area condos and acreage, and each can tighten what a lender will fund. Rural land is the biggest swing. Lenders vary on how many acres they will count toward value, and excess land can be excluded from the appraisal, which lowers the loan.
Most programs we place files with get cautious about non-warrantable condos and condotels, which are common near ski resorts. Expect tighter leverage or a different lender. Very large loans also draw more scrutiny, sometimes a second appraisal. Wells, septic systems and winter road access can complicate appraisals on remote parcels.
Consumer mortgage lending through Lendmire is available in Montana, one of 16 states where it is licensed. The program figures above do not change by state.
Will You Rent It Out? That Changes the Product
An asset-based mortgage is a consumer loan for a home you will actually use. If you plan to run the cabin mainly as a rental, a different product usually fits better. 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. They qualify primarily on property-level rental income covering the payment, subject to lender guidelines. Lendmire’s complete DSCR loans guide covers that route.
The rental question matters in Montana. Researchers at the University of Montana found that short-term rental listings grew 55% between 2019 and 2023, from 8,245 to 12,808, according to the Flathead Beacon’s coverage of the report. The Daily Montanan reports that nearly half of those listings sit in Gallatin and Flathead counties. Short-term rental rules can vary by city, county, HOA, and property type, so investors should confirm local rules before relying on projected rental income.
If the cabin is truly yours and rentals are occasional, the asset route fits. If rent is the plan, run the DSCR numbers instead.
How Does This Compare With Other Ways to Borrow?
Each product is reviewed around something different. The right one follows from where your wealth sits.
| Product | Reviewed around | Fits best when |
|---|---|---|
| Asset qualifier | Assets cover the loan | Large balances, no income |
| Asset depletion | Assets turned into income | Large balances, DTI needed |
| Bank statement | Income shown by deposits | Self-employed with deposits |
| DSCR | Property rent vs payment | Cabin run as a rental |
| Conventional | Personal income and DTI | Steady W-2 or tax-return income |
The bank statement program is for borrowers who document income with deposits. A HELOC borrows against equity in a home you already own, and its rules are set by that product. An all-cash purchase avoids qualifying but ties up the capital.
How Should You Size Your Own Number?
Work backward from your accounts, not from a listing price. This is how the files that close cleanly usually start.
1. List every account with its balance and type. 2. Apply the percentages for the path you are considering. 3. Subtract the down payment, closing costs and any cash you want to keep outside the loan test. 4. Check the minimums: 60 days of seasoning on the qualifier path, or 120-day-old statements on the depletion path. 5. Divide by the loan-to-value cap to see the price range. On the depletion path, divide usable assets by 60 and test the income against the housing payment and debts. 6. Pull your credit and check it against the 600 floor or the lender’s matrix.
The biggest ceiling is not always the right loan. A larger balance borrowed against your portfolio can strain your liquidity just when you want it for repairs, taxes or a market dip. Some buyers do better borrowing less. Tax treatment varies; consult a qualified professional.
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. It is a broker, so it arranges financing through select lenders in its wholesale network, and nothing here is a commitment to lend. Reach the team at 828-256-2183.
Key Terms Defined
Asset qualifier path: a program path where eligible assets must equal or exceed the entire loan, with no employment or income documented.
Asset depletion path: a program path that divides usable assets by 60 months to create monthly qualifying income.
Loan-to-value (LTV): the loan amount as a percentage of the lower of price or appraised value.
Seasoning: how long funds must sit in an account before a lender counts them.
Debt-to-income (DTI): your monthly debts, including the new housing payment, compared with your qualifying income.
Non-warrantable condo: a condo project that falls outside standard lender project rules, which often means tighter terms.
Frequently Asked Questions
Can I use a retirement account to qualify?
Yes, with a haircut. On the asset qualifier path, 401(k) and IRA balances count at 90% under age 59½ and 100% at 59½ or older. On the depletion path they count at 70% at any age. You do not have to liquidate them to qualify, subject to underwriting.
Do I still need to document anything?
Yes. No income is documented on the qualifier path, but your accounts are. Expect statements, source review, a credit check, and an appraisal. The depletion path adds a debt-to-income test on the income derived from your assets.
What is the largest loan available?
Up to $4,000,000 on the asset qualifier path and up to $3,500,000 on the asset depletion path, through select programs. Those are ceilings, not offers. Your assets, credit, down payment and the appraised value decide the actual amount.
Does it matter that the cabin is in rural Montana?
Yes, it can. Acreage, well and septic, road access and non-warrantable condo status can each tighten leverage or limit lender options. Excess land may also be left out of value, which lowers your loan.
Can I qualify on both paths at once?
No. A borrower is qualified on one path at a time, and the figures never blend. One exception: asset-derived income can supplement documented income on the depletion path, up to a 45% debt-to-income ratio.
Lendmire’s asset-based mortgage in Montana page presents the program for Montana 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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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. flatheadbeacon.com: Report Flathead County Has Highest Number of Short Term Rentals in Montana
2. Daily Montanan: Gallatin and Flathead short-term rental concentration
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 Long Should Money Sit in an Account Before an Asset-Based Mortgage Application? · 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.