The Quick Read: Yes, usually. A Montana condo is an ordinary condominium, so either asset-based path can finance it, subject to underwriting and a review of the building itself. Your balances either cover the whole loan outright, or they are converted into monthly qualifying income. Montana law does not block either path. The health of the building and the path you pick decide the outcome.
- Asset qualifier path: eligible assets must equal or exceed the entire loan. Leverage runs up to 80% on a purchase and 75% on a refinance, for a principal residence or second home, through select programs.
- Asset depletion path: usable assets divided by 60 months become monthly income. Leverage runs up to 80% on a purchase of a principal residence or second home, and up to 65% on a purchase of an investment property.
- The condo gets its own review: lenders look at the association’s finances, insurance, litigation, investor concentration and commercial space.
- Rental condos are a different product: if the unit will be rented and rent carries the payment, a DSCR loan is usually the better fit.
What Does “Asset-Based Mortgage” Mean Here?
An asset-based mortgage is reviewed against balance sheet instead of your paycheck. Here, that means one of two consumer loan paths placed through select lenders in Lendmire’s wholesale network. The label is loose, so it helps to separate it from two look-alikes.
The first look-alike is hard-money lending. That is short-term financing secured mostly by the property, and it is a different animal. The second is a DSCR loan, short for debt service coverage ratio. That is a business-purpose rental loan that qualifies primarily on property-level rental income covering the payment, subject to lender guidelines. Lendmire’s complete DSCR loans guide covers that product in full.
Here is the quick sorting rule. If you are buying a home to live in, or a second home, and your assets are large while your documented income is small, you are in asset-based territory. If you are buying a condo to rent out and the rent covers the full payment, you are in DSCR territory.
Which Path Fits You: Assets as the Loan, or Assets as Income?
The asset qualifier path fits when your eligible balances can cover the entire loan. The asset depletion path fits when they cannot, but they are still large enough to produce meaningful monthly income on paper. You qualify on one path at a time. The two never blend.
Asset qualifier path. Your eligible assets, after the credit percentages in the next section, must equal or exceed the whole loan amount. No employment or income is documented. Loans run up to $4,000,000 through select programs. The credit score floor is 600. Leverage runs up to 80% on a purchase and 75% on a refinance of a principal residence or second home. Reserves are not required at or below 75% loan-to-value. Above that, the lender sets them.
Here is an illustration, and the lender’s own calculation governs. Say you want an $800,000 loan. You hold $330,000 in brokerage accounts, which count at 100%. You hold $300,000 in a 401(k) and you are under 59½, so it counts at 90%, or $270,000. You hold $200,000 in savings, which counts at 100%. Together that is $800,000 of usable assets, which matches the loan. You would qualify on assets alone, subject to underwriting.
Asset depletion path. The lender discounts your assets, adds them up, and divides by 60 months. The result is a monthly qualifying income. That income must carry the full housing payment and your other debts through the debt-to-income test.
Take $1,500,000 in securities. At 80%, that counts as $1,200,000. Add $300,000 in cash at 100%. Usable assets total $1,500,000. Divided by 60 months, that is $25,000 of monthly qualifying income. Again, this is illustrative, and the lender’s calculation controls.
On this path, loans run from $125,000 to $3,500,000. Credit follows the lender’s matrix. A first-time investor needs a 700 score. Leverage on a principal residence or second home runs up to 80% on a purchase or rate-and-term refinance, and 60% on a cash-out refinance.
The depletion path also has asset minimums. You need qualified assets of at least the lesser of $1,000,000 or 1.25 times the loan balance. If depletion is your only income source, you also need at least $250,000 liquid. Asset-derived income can instead supplement documented income, up to a 45% debt-to-income ratio. When it supplements, the minimum-assets rule is waived.
Across the programs we place files with, the qualifier path is cleaner but demands more cash. The depletion path stretches further but adds debt-to-income math. Many borrowers run both versions before choosing.
Which Assets Count, and How Much?
Each path discounts your balances differently, so keep the two tables separate. The percentages below are the share of the balance that counts, through select programs and subject to underwriting.
Asset qualifier path:
| Asset | Share that counts |
|---|---|
| Brokerage accounts | 100% |
| Certificates of deposit | 100% |
| Money market | 100% |
| Savings | 100% |
| 401(k) / IRA, under 59½ | 90% |
| 401(k) / IRA, 59½ or older | 100% |
Accounts combine, so several smaller balances can add up to the loan amount.
Asset depletion path:
| Asset | Share that counts |
|---|---|
| Cash accounts | 100% |
| Certificates of deposit | 100% |
| Securities | 80% |
| Private stock | 75% |
| Retirement accounts (any age) | 70% |
| Real-estate equity | 60% |
Several things do not count 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. Cash-out proceeds from the loan itself never count as qualifying assets.
Cryptocurrency, precious metals, collectibles, borrowed or pledged funds, and business accounts beyond your ownership share are not published as eligible on either path. The documented route is to convert them into a seasoned cash balance in a regulated account. The lender then reviews the source of that money.
Why Does the Condo Itself Get Reviewed?
A condo loan is secured by your unit, but the value of that unit depends on the building. If the association is underfunded, underinsured or tied up in a lawsuit, every unit suffers. So lenders review the project, not just you.
Across the programs in our network, the project review typically covers these items:
- The association’s budget and financial health
- Master insurance coverage
- Pending or threatened litigation
- How many units are investor-owned
- How much of the building is commercial space
- The declaration, bylaws and rules
You will usually be asked to get a condo questionnaire completed by the association or its management company. Ask for it early, because it sits in someone else’s inbox.
The appraisal reflects the same concerns. The standard condo appraisal form, Fannie Mae Form 1073, asks whether a single entity owns more than 10% of the units and whether the project was a conversion. That form is an appraisal tool. It does not set your loan terms.
“Warrantable” is a conventional-loan concept. It describes a condo project that meets the agencies’ project standards. Asset-based loans placed through our network are not governed by that checklist, but lenders still look at many of the same risks. A building that fails the agency tests is not an automatic decline. It does need a lender with a program for it, and leverage or terms may adjust. Eligibility is decided building by building, subject to underwriting.
Montana adds one useful rule. Under MCA 70-23-506, each owner must comply with the association’s bylaws, rules and covenants. The state statute does not tell you whether you can finance the unit. Your building’s recorded documents tell you what you can do with it, including whether you can rent it.
Montana Condo Quirks: Resort Buildings, Rentals and Townhome Labels
Montana’s condo market runs from small-city buildings to resort towns, and the loan treatment differs between them. Treat the state as the example here. The program figures above do not change by state.
Resort and condotel buildings. In places like Big Sky and Whitefish, some buildings run a hotel-style rental program. Income flows through an operator instead of a lease. Some lenders finance these buildings and some decline the whole category. If you are eyeing one, check eligibility before you fall for the view.
Short-term rentals. 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. In a condo, the declaration and bylaws often control more than the city does.
Townhome versus condo. Montana law treats these as different legal forms, and the state has a process for converting one to the other. A listing’s label may not match the recorded legal form. Ask your title company which one you are buying, because the project review depends on it.
Prices. Bozeman’s median condo price was $480,000 in February, down 4.9% from the prior February. In resort towns with few sales, medians swing widely, so look at the specific building.
How Does It Compare With DSCR, Bank Statement and Conventional Loans?
The right product depends on how you earn and how you will use the unit. Here is the split, with each program described by its own rules.
| Loan type | Fits this borrower | Reviewed on |
|---|---|---|
| Asset qualifier | Cash-heavy, income-light | Assets cover the loan |
| Asset depletion | Large portfolio, little income | Assets converted to income |
| DSCR | Investor renting the condo | Property rent vs. payment |
| Bank statement | Self-employed with deposits | Documented deposits |
| Conventional | Steady W-2 or tax-return income | Documented income |
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 cannot finance your primary home.
On a DSCR file, the rent is divided by the full monthly housing payment, and condo association dues sit in that payment. A condo with high dues faces a harder coverage test than a comparable single-family rental. In resort markets, the gap between price and rent can make coverage hard to reach at high leverage. That gap is a common reason an investor with a large portfolio looks at the depletion path with a bigger down payment instead, since investment property runs up to 65% on a purchase there.
One difference matters for scaling. The depletion path runs through debt-to-income and personal borrowing, while DSCR files focus on the property. Reporting and treatment of your personal debt-to-income vary by lender, so ask before you plan a string of purchases.
What Documents and Seasoning Will You Need?
You will be documenting your assets thoroughly. “No income documentation” never means “no documentation.” The lender reviews your statements and the source of your funds.
On the qualifier path, expect 60 days of seasoning and two months of statements for each qualifying account. On the depletion path, statements must be at least 120 days old at application, plus the most recent statement within 45 days. Funds from the sale of a business, an inheritance or a legal settlement are excused from that seasoning on the depletion path.
A practical checklist:
1. Statements for every account you plan to count
2. Explanations for large deposits or transfers
3. Retirement account statements and your age, since age drives the percentage on the qualifier path
4. Credit history showing a clean housing record (0x30x12, with one 30-day late in twelve months reviewed case by case)
5. The condo contract, the declaration, bylaws, budget, master insurance and the association questionnaire
A housing event such as a foreclosure needs 4 years of seasoning on the depletion path, and multiple bankruptcies are not eligible. Because this is a consumer mortgage, standard consumer disclosures apply. DSCR rental loans are business-purpose and sit outside that framework.
Who Should Skip It?
This loan is not for everyone with money in the bank. It makes sense when your income is hard to document or low compared with your balances. It also makes sense when you would rather not drain cash for a single purchase.
It is a poor fit if you have a steady, documentable income and a warrantable condo. Conventional financing is often simpler in that case. It is also a poor fit if your wealth sits in assets that do not count, such as crypto or collectibles, unless you convert them first.
Retirement accounts deserve care. They count at a lower share than cash, and on the depletion path at 70% at any age. Tax treatment varies; consult a qualified professional.
Key Terms Defined
Asset qualifier path: a loan path where eligible assets must equal or exceed the whole loan, and no income is documented.
Asset depletion path: a loan path that converts usable assets into monthly income by dividing them by 60 months.
Seasoning: the length of time money has sat in your account, which shows the funds are really yours.
Warrantable condo: a condo project that meets the agencies’ standards for conventional condo loans.
Non-warrantable condo: a project that falls outside those standards, often because of investor concentration, litigation or commercial space.
DSCR: the rent a property earns divided by its full monthly payment, including association dues.
Frequently Asked Questions
Do I have to sell my assets to qualify?
No. Your assets generally stay in your accounts. The lender counts them toward qualifying, but it does not require you to sell or pledge them. You do need to keep the counted balances in place through the review, subject to underwriting.
Can I use retirement funds on a Montana condo loan?
Yes, they count on both paths, though the share differs by path and age. 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, retirement accounts count at 70% at any age.
Does this work for a second home or an investment condo?
Both are possible, but the paths differ. The qualifier path covers principal residences and second homes. Investment property is available only on the depletion path, with lower leverage. If you plan to rent the unit and the rent covers the payment, a DSCR loan may fit better.
Can a non-warrantable condo qualify?
Sometimes. It needs a lender with a program for that kind of building, and leverage or terms may adjust. Common triggers include heavy investor ownership, pending litigation, too much commercial space and thin reserves. The review happens building by building.
Do I still need credit and a down payment?
Yes. The qualifier path has a 600 minimum score, and the depletion path follows the lender’s matrix. Leverage caps mean you still put money down. This is not a no-credit-check loan, and approval is never promised.
Your 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 it arranges these loans through select lenders in its network. Montana is one of the 16 states where Lendmire is licensed for consumer mortgage lending. Call 828-256-2183 to start the conversation. Every file is underwritten individually, and nothing here is a commitment to lend.
Lendmire’s asset-based mortgage in Montana page presents the program for Montana borrowers.
About Lendmire
Lendmire (NMLS# 2371349) is a mortgage broker licensed for consumer lending in 16 states. Scotsman Guide named Lendmire a Top Mortgage Workplace in both 2025 and 2026.
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References
2. Montana Code Annotated 70-23-506
3. Montana Free Press, Bozeman housing market
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 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? · Is an Asset-Based Mortgage Reported to Credit Bureaus Like Any Other Mortgage?
Guides: Asset-Based Mortgage in Montana
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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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.