The Quick Read: Yes, through select programs, you can finance a Virginia condo on your assets rather than your paycheck, provided your assets pass the lender’s review and the condo building passes a separate project review. Two reviews happen on one loan. The lender underwrites you, then it underwrites the association.
- Asset qualifier path: eligible assets must cover the entire loan, and no employment or income is documented.
- Asset depletion path: usable assets divided by 60 months become qualifying income, and that income must carry the housing payment, HOA dues included.
- The building can stop the deal. Strong assets do not fix a condo project with weak finances, litigation or heavy investor ownership.
- Virginia adds a paper trail. The seller must get you a resale certificate from the association, and it gives you a short window to cancel.
- Investment condos qualify only on the depletion path, at lower leverage.
Which Path Fits a Condo Buyer?
An asset-based mortgage turns a large balance of savings and investments into either direct loan coverage or monthly qualifying income. Across the wholesale network Lendmire works with, two paths exist. A borrower is reviewed on one path at a time, never a blend of both.
The asset qualifier path asks one question: do your eligible assets equal or exceed the whole loan? If so, you qualify on assets alone. The asset depletion path asks a different question. It converts your usable assets into a monthly income figure, then tests whether that income can carry the housing payment and your other debts.
This is built for people with big balances and thin documented income. Think of retirees, someone who just sold a business, an heir, or an early-retired professional living off a portfolio. Lendmire brokers consumer mortgage lending in Virginia, one of 16 states where it is licensed. The program figures below do not change by state, and every one is a ceiling or floor subject to underwriting, never an offer.
| Factor | Asset qualifier path | Asset depletion path |
|---|---|---|
| Core test | Assets cover the entire loan | Assets become income (÷ 60 months) |
| Income documented | None | Derived from assets |
| Purchase leverage | Up to 80% | Up to 80% (home); 65% (investment) |
| Refinance leverage | Up to 75% | Up to 80% rate-and-term; 60% cash-out |
| Loan amounts | Up to $4,000,000 | $125,000 to $3,500,000 |
| Investment condo | Not available | Available |
Leverage on the qualifier path applies to a principal residence or second home. The depletion path’s 80% purchase and rate-and-term ceiling also applies to a principal residence or second home. Its investment-property ceilings are 65% on a purchase or rate-and-term refinance and 60% on a cash-out. The lender decides whether cash-out is allowed on the qualifier path, and that figure is not published.
How Do Your Assets Count Toward a Condo Loan?
Not every dollar counts at face value. Each path applies its own credit percentages, so name the path before you add up a balance.
On the asset qualifier path, the share of each balance that counts looks like this:
- Brokerage accounts, certificates of deposit, money market and savings: 100%.
- 401(k) and IRA balances: 90% if you are under 59½, and 100% at 59½ or older.
- Accounts combine, so several accounts can add up to the loan.
On the asset depletion path, haircuts run heavier:
- Cash accounts and certificates of deposit: 100%.
- Securities: 80%.
- Private stock: 75%.
- Retirement accounts: 70% at any age.
- Real-estate equity: 60%.
Some assets do not count at all on the depletion path. These include 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. Cryptocurrency, precious metals, collectibles and pledged or borrowed funds are not published as eligible on either path. The documented route is to convert them into a seasoned cash balance in a regulated account, with the source reviewed by the lender.
Here is the arithmetic, illustrative only, since the lender’s own calculation governs. On the qualifier path, an $800,000 loan could be matched by $330,000 in brokerage accounts (100% counts, so $330,000), $300,000 in a 401(k) for a borrower under 59½ (90% counts, so $270,000) and $200,000 in savings (100%, so $200,000). That totals $800,000 of usable assets, which is reviewed on assets alone.
On the depletion path, take $1,500,000 in securities (80% counts, so $1,200,000) plus $300,000 in cash (100%, so $300,000). That is $1,500,000 usable, divided by 60 months, for $25,000 of monthly qualifying income. That income then has to carry the housing payment and other debts through the debt-to-income test.
On a condo, the housing payment includes the monthly HOA dues. Dues take a bigger bite out of derived income than most buyers expect, so get the association’s actual budget before you commit.
Seasoning and Statements: What the Lender Wants to See
Assets are documented on both paths. “No income documentation” never means “no documentation.”
- Qualifier path: 60 days of seasoning and two months of statements for each qualifying account. Credit starts at a 600 minimum score.
- Depletion path: statements at least 120 days old at application, plus the most recent statement dated within 45 days. Funds from the sale of a business, an inheritance or a legal settlement are excused from that seasoning. Credit follows the lender’s matrix, and a first-time investor needs a 700 score.
The depletion path also sets minimum assets. You need qualified assets of at least the lesser of $1,000,000 or 1.25 times the loan balance. When asset-derived income is your only income, you also need at least $250,000 in liquid assets. If you have documented income as well, asset income can supplement it up to a 45% debt-to-income ratio, and the minimum-assets rule is waived.
Housing history matters on both paths. Expect 0x30x12, with one 30-day late in the past twelve months considered case by case. Multiple bankruptcies are not eligible. Everything here is subject to underwriting.
Two Reviews, One Loan: What the Condo Adds
A house is one asset. A condo is your unit plus a share of a corporation, the association, that you do not control. So the lender reviews you, then the building.
Lenders look at the association’s budget and financials, its reserve study, the master insurance policy, board minutes, litigation disclosures and any special-assessment notices. They also look at how many units are owned by investors rather than occupants. A building that fails on several of these at once can get declined, no matter how large your balances are.
You will hear the word warrantable. A warrantable condo is a project that meets the conventional agency standards. Freddie Mac’s Seller/Servicer Guide lists the conventional triggers, including certain litigation and excessive single-investor concentration. A non-warrantable condo trips one of those tests. Conventional lenders won’t touch it, but that is those lenders’ rule, not this program’s.
Some programs in the network do review non-warrantable buildings. Each runs its own project review, and the thresholds differ. Non-warrantable does not mean automatically eligible. Expect a narrower lender pool and possibly tighter terms, and ask the lender about the building before you pay for anything.
What Virginia Adds: The Resale Certificate
Virginia gives condo buyers a paper trail that helps with the lender’s review. Under the Virginia Resale Disclosure Act, found in Chapter 23.1 of Title 55.1 of the Code of Virginia, the seller must obtain a resale certificate from the association. The buyer has a right to cancel based on when it arrives.
- If the certificate arrives before the contract is ratified, you can cancel within the period the contract states. If the contract states none, you have three days from ratification.
- If the certificate or a notice that it is unavailable arrives after ratification, you can cancel within the contract’s period.
- A certificate issued more than 30 days but less than 12 months before settlement can be updated on request.
The Northern Virginia Association of Realtors notes that an incomplete or outdated certificate still starts the cancellation clock. Its remedy for a certificate missing key information is to void the contract within the window.
For an asset-based buyer, the practical lesson is this. The certificate typically covers insurance, violation notices, board minutes and use restrictions, which overlap with what a lender wants. Order it early. Use the cancellation window as a due-diligence tool, not a formality. Read the dues figure and any assessment notices, and rerun your qualifying numbers on those facts before the window closes.
Can You Rent the Condo? Virginia’s Rules and the Loan
This matters most on the depletion path, where an investment condo is allowed, and for second-home buyers who plan to rent part of the year. Virginia limits what an association can do. Under § 55.1-1973, an association may not condition or prohibit a unit owner’s rental unless the Act or the condominium instruments authorize it. It also may not charge a rental or processing fee above $50 during a lease.
The exception swallows a lot. A rental ban written into the recorded declaration can still stop you. Read the recorded documents before you offer, not after. Short-term rental rules can vary by city, county, HOA, and property type, so confirm local rules before relying on projected rental income.
Sequencing: What to Do and in What Order
Most buyers do this backwards. They line up the loan, then fall in love with a building the lender won’t touch. A better order:
1. Pick your path. If your eligible assets cover the whole loan, you are looking at the qualifier path. If you need your assets to become income, it is the depletion path.
2. Check seasoning early. Moved money recently? On the qualifier path the clock is 60 days. On the depletion path your statements must be 120 days old, plus one recent one.
3. Screen the building before you write an offer. Ask the listing agent or association for the budget, reserve study, insurance summary, litigation disclosure and rental rules.
4. Make the offer contingent on the resale certificate and use the cancellation window to confirm the dues and any assessments.
5. Place the file with a lender that accepts the building type. Since the programs differ, a broker who sees many guidelines can steer a file away from a lender that would decline it.
What Can Go Wrong, and What to Do About It
- The building fails project review. Ask whether another program in the network reviews that building type. If none does, you either walk away or buy with a different structure.
- An asset category doesn’t count. Cryptocurrency or a business account, for example, may need to be converted to a seasoned cash balance before it helps.
- Dues or an assessment surface late. On the depletion path, higher dues shrink the room under the debt-to-income test. A special assessment can also change the building’s finances, and your qualifying numbers do not capture it.
- Your path changes. If the depletion path falls short, the qualifier path may fit instead, or the reverse. You can only be qualified on one at a time, so ask early.
This one is a genuine judgment call: some buyers push for the largest loan their assets allow. A condo with high dues and a thin reserve fund argues for borrowing less than the ceiling, even if the program permits more.
What If the Condo Is a Rental?
Investment condos are allowed only on the depletion path, at 65% on a purchase or rate-and-term refinance and 60% on a cash-out, subject to underwriting. That is lower leverage than a principal residence or second home gets.
If the condo is purely a rental and you have a rental income story to tell, a different loan may fit 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. The loan is reviewed primarily on property-level rental income covering the payment, subject to lender guidelines.
The payment side includes principal, interest, taxes, insurance and HOA dues. Dues are not subtracted from rent. They sit in the payment, so a condo’s coverage ratio runs lower than a comparable house’s. Select lenders in the network will review files below 1.00 coverage, though leverage and terms adjust. Lendmire’s complete DSCR loans guide walks through the mechanics.
A DSCR loan also ignores vacancy, repairs and management costs. Clearing the ratio is not the same as positive cash flow.
Key Terms Defined
- Asset qualifier path: the route where eligible assets, after the credit percentages, must equal or exceed the entire loan.
- Asset depletion path: the route where usable assets divided by 60 months become monthly qualifying income.
- Seasoning: how long money has been in your account before the lender will count it.
- Warrantable condo: a project that meets conventional agency standards for litigation, reserves and owner concentration.
- Non-warrantable condo: a project that fails at least one of those standards and needs a lender with its own project review.
- Resale certificate: the document Virginia law requires the seller to get from the association, covering finances, rules and dues.
- DSCR: debt service coverage ratio, meaning rent divided by the full monthly payment, HOA dues included.
Frequently Asked Questions
Do I need a minimum credit score?
Yes. On the qualifier path the published floor is 600. On the depletion path, the lender’s own score and loan-amount matrix applies, and a first-time investor needs 700. A housing event on the depletion path needs four years of seasoning. All of this is subject to underwriting.
Can I use a retirement account for a Virginia condo?
Yes, with haircuts. On the qualifier path, a 401(k) or IRA counts at 90% if you are under 59½ and 100% at 59½ or older. On the depletion path it counts at 70% at any age. You do not have to cash it out for the figures to count.
Does a non-warrantable condo disqualify me?
Not automatically. Conventional lenders won’t finance one, but select programs run their own project review. The building can still be declined over litigation, thin reserves or heavy investor ownership, so ask before you spend on appraisal or paperwork.
Can I buy a condo to rent out using this loan?
Only on the asset depletion path, at up to 65% on a purchase or rate-and-term refinance and 60% on a cash-out, subject to underwriting. For a pure rental, a DSCR loan may fit better because it qualifies primarily on the property’s rental income.
What happens if the Virginia resale certificate is late or incomplete?
You generally keep a right to cancel within the window set by the statute or your contract. Under the Resale Disclosure Act, the default is three days from ratification when the contract specifies none. Have a Virginia attorney confirm your specific deadline.
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. Reach the team at 828-256-2183 or request a quote. Lendmire is a mortgage broker, and eligibility is not a commitment to lend.
Lendmire’s asset-based mortgage in Virginia page presents the program for Virginia 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. Freddie Mac Seller/Servicer Guide § 5701.3
2. Code of Virginia, Chapter 23.1 — Virginia Resale Disclosure Act
3. Northern Virginia Association of Realtors — Virginia Resale Disclosure Act
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? · Does a Securities-Backed Line of Credit Hurt Your Asset-Based Mortgage Application? · Can You Get an Asset Depletion Mortgage After a Foreclosure or Short Sale?
Guides: Asset-Based Mortgage in Virginia
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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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.