The Quick Read: Yes, in most cases: Washington has no rule that blocks asset-based financing on a condo, but two separate reviews must both pass, one on your statements and one on the building, and a large portfolio does not rescue a building the lender dislikes. The first review checks your assets. The second checks the association’s budget, reserves, insurance, lawsuits and rental mix.
- Path matters. Under the asset qualifier path, your eligible assets cover the whole loan and no income is documented. Under the asset depletion path, your assets are converted into monthly income.
- Occupancy matters. The qualifier path covers a principal residence or second home. The depletion path also reaches investment property, at lower leverage, subject to underwriting.
- The building decides a lot. Washington does not publish an approved-condo list. Each lender reviews each project.
- Assets are still documented. Skipping income documents never means skipping paperwork.
Lendmire is a mortgage broker. It places these consumer loans through select lenders in its wholesale network, and it is licensed for consumer mortgage lending in Washington. Every file is underwritten individually, and nothing here is a commitment to lend.
Key Terms Defined
You will see these terms in every condo conversation, so here they are once.
- Asset qualifier path: a way to qualify where eligible assets equal or exceed the entire loan amount, so no employment or income is documented.
- Asset depletion path: a way to qualify where usable assets are divided by 60 months to create a monthly qualifying income.
- Debt-to-income (DTI): your monthly debts, including the housing payment, measured against your qualifying income.
- Warrantable condo: a building that meets the project standards set by Fannie Mae and Freddie Mac, the agencies that buy many conventional loans.
- Non-warrantable condo: a building that misses one or more of those standards, usually because of investor concentration, low reserves, litigation or hotel-style use.
- Seasoning: the time your money has sat in an account, shown by statements, before the lender will count it.
- Resale certificate: the disclosure packet a Washington association gives a unit owner, covering the building’s finances and rules.
- HOA questionnaire: the lender’s own form, completed by the association, that gathers facts about the project.
Which Asset-Based Loan Do You Mean?
Most borrowers asking this question want one of two things. Either their assets should cover the loan outright, or their assets should become income. Lendmire works with both through its lender network, and a borrower is qualified on one path at a time.
Here is how they compare. Every figure is a ceiling or floor, not an offer, and all of it is subject to underwriting.
| Factor | Asset qualifier | Asset depletion |
|---|---|---|
| Occupancy | Principal residence, second home | Also investment property |
| Purchase leverage | Up to 80% | 80% home; 65% investment |
| Refinance leverage | Up to 75% | 80% rate-and-term home; 60% cash-out |
| Loan amount | Up to $4,000,000 | $125,000 to $3,500,000 |
| Credit | 600 minimum | The lender’s matrix |
| Income documented | None | Derived from assets |
On the depletion path, a cash-out refinance on a principal residence or second home tops out at 60%, and an investment property is 65% on a purchase or rate-and-term refinance and 60% on a cash-out. On the qualifier path, cash-out terms are set by the lender and not published.
One naming note. Some people say asset-based when they mean a DSCR loan, which qualifies a rental on its rent against its payment. That is a business-purpose investor product, covered in Lendmire’s complete DSCR loans guide. This article is about the consumer asset programs above, plus a short section later on where a DSCR loan fits a condo better.
How Do Assets Become Qualifying Power?
On the qualifier path, the lender adds up the credited share of your accounts and compares the total to the loan. Brokerage accounts, certificates of deposit, money market and savings count at 100%. A 401(k) or IRA counts at 90% if you are under 59½ and 100% once you are 59½ or older. Accounts combine.
Here is an illustration. Take an $800,000 loan. You hold $330,000 in brokerage accounts (100% counts, so $330,000), $300,000 in a 401(k) under age 59½ (90% counts, so $270,000) and $200,000 in savings (100% counts, so $200,000). That is $800,000 of usable assets, which is reviewed on assets alone, subject to underwriting.
On the depletion path, the percentages are lower because the lender trims each account:
- Cash accounts and CDs count at 100%.
- Securities count at 80%.
- Private stock counts at 75%.
- Retirement accounts count at 70% at any age.
- Real-estate equity counts at 60%.
Then the lender divides the usable total by 60 months. Run it this way: $1,500,000 in securities (80% counts, so $1,200,000) plus $300,000 in cash (100% counts, so $300,000) is $1,500,000 usable. Divided by 60 months, that is $25,000 of monthly qualifying income. That income must then carry the housing payment and your other debts through the DTI test. The lender’s own calculation governs.
Some assets do not count at all 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. Cryptocurrency, precious metals and collectibles are not published as eligible on either path. The documented route is to convert them to a seasoned cash balance in a regulated account, with the source reviewed by the lender.
You do not have to sell your portfolio to use it. The assets are counted, not liquidated. Tax treatment varies; consult a qualified professional.
Why Two Approvals Matter More on a Condo
A house is one approval. A condo is two. You can pass the asset test cleanly and still hit a wall because of the building.
Think of the borrower file and the project file as separate folders. The borrower folder holds your statements and credit. The project folder holds the association’s budget, reserve funding, insurance, litigation status and owner mix. A thin project folder does not get repaired by a fat borrower folder.
Lenders in Lendmire’s network run their own project review rather than relying on a pre-approved list. That is a real advantage on a building that misses the agency checklist. The review still happens, though. Expect questions about:
- How many units are owner-occupied versus rented.
- Whether the budget funds reserves.
- Pending or recent lawsuits.
- The master insurance policy.
- Delinquent dues.
- Commercial space in the building.
On the depletion path, HOA dues land inside the housing payment that your derived income must carry. A condo with high dues needs more qualifying income than a house with the same price.
How to Vet a Washington Building Before You Offer
Ask for the resale certificate first. Washington gives you a strong tool here. Under RCW 64.90.640, the association must furnish the signed certificate upon a unit owner’s request, and the statute caps what it can charge to prepare and update it.
The certificate typically covers the building’s financial status, reserve funding, insurance, pending litigation and rental or use restrictions. That is most of what a project reviewer wants. Older buildings may fall under the earlier condominium act instead, including RCW 64.34.425, so confirm which statute governs your building. The two differ on details.
Do not assume the association can tell you how a lender will see the building. The lender’s questionnaire answers that. Send it early, and read it as information gathering, not an approval.
The Washington litigation question
Washington’s condo history is a legitimate underwriting topic. A Washington Commerce report to the Legislature says developers face specific warranties under the state’s condominium law, and that this produces a higher litigation rate than other housing types. It also says a 2019 law, Chapter 238, aimed to cut defect suits.
For you, the takeaway is practical. A newer or recently built building may carry a litigation or settlement history, so ask for it in writing before you commit.
Washington law does not make condos unfinanceable. The litigation history hits individual building files, not the whole category.
What If the Building Gets Flagged?
A flag changes terms more often than it ends the file. Across Lendmire’s wholesale network, a non-warrantable building is usually treated case by case. The lender may lower the maximum leverage, cap the loan size or ask for stronger credit. The typical triggers are:
- High investor concentration.
- Short-term rental allowance.
- Low reserves.
- Pending litigation.
- Heavy delinquencies.
- Commercial space beyond a modest share.
Condotels, which are hotel-style buildings with rental pools, are the tightest category. Income from a rental pool needs operator statements, and many lenders in the network will not touch them on the depletion path.
Ask what a flag does to your path. The qualifier path asks whether assets cover the loan, so a flag mostly trims leverage. The depletion path adds DTI, so a flag that raises dues or assessments also raises the income you need.
One more limit. No loan overrides a rental ban in the association’s rules or in local code. If you plan to rent the unit short term, 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.
Special assessments deserve a careful read. A big per-unit assessment disclosed mid-deal has made buyers walk away. Do not treat any single story as a benchmark, but do read the minutes of the last two years of board meetings.
What Does the Washington Condo Market Give You?
Buyers have room to negotiate in Seattle, though one city is not the state. The citywide condo median was $530,000 in the latest monthly recap, up 1.2% year over year. An earlier monthly update showed 1,189 listings, the most in more than a decade, with prices down 10.1% from a year before.
Softer prices help your leverage math, since the asset tests compare your accounts to the loan. Dues and a thin building budget are the real drag, because they raise the payment your assets or income must support.
Using the Depletion Path on a Condo You Will Rent
Investment property is the narrowest door in this program. Only the depletion path reaches it, with up to 65% on a purchase or rate-and-term refinance and up to 60% on a cash-out, and cash-out proceeds never count as qualifying assets. Qualified assets must be at least the lesser of $1,000,000 or 1.25 times the loan balance. They must never be below $250,000 in liquid assets when asset depletion is your only income source. A first-time investor on this path needs a 700 score.
For many investors with a rental in mind, a DSCR loan is the better fit. 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 lender divides rent by the full payment, and HOA dues sit in that payment, so the same rent produces a lower ratio on a condo than on a house. Some programs in the network will review coverage below 1.00, but leverage and terms adjust. Eligibility review depends on lender guidelines, credit, the property and the building.
The practical split is simple. If you want to buy a rental and the rent carries it, look at DSCR. If you are income-light and want to buy a home to live in or use, look at the asset paths.
Documents You Gather on Each Side
Borrower side, qualifier path:
- Two months of statements for each qualifying account.
- 60 days of seasoning on those balances.
- Credit that meets the 600 floor, subject to underwriting.
- Reserves are not required at or below 75% loan-to-value. Above that, the lender sets them.
Borrower side, depletion path:
- Statements 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.
- Credit measured against the lender’s matrix.
- A housing history that is clean for the last twelve months (0x30x12). A single 30-day late is considered case by case.
- A housing event needs four years of seasoning, and multiple bankruptcies are not eligible.
Building side, either path:
- The resale certificate.
- The current budget and reserve information.
- The master insurance certificate.
- The lender’s questionnaire, completed by the association.
- Any litigation disclosure.
Joint accounts need clear ownership. If a spouse or partner holds some of the money, the lender will want to see how the accounts are titled before it counts them.
Common Mistakes
Assuming a big portfolio overrides the building. It does not. Both reviews stand alone.
Mixing the paths. Qualifier percentages and depletion haircuts are different tables. A 401(k) counts at 90% or 100% on one path and 70% on the other.
Counting borrowed or pledged funds. Those are not published as eligible on either path.
Waiting on the HOA to say whether the building will work. It usually cannot say. Send the lender’s questionnaire at the start.
Misreading how DSCR lender review works. The loan is reviewed primarily on property-level rental income covering the payment, subject to lender guidelines. The assets are still documented, and so is the building.
Frequently Asked Questions
Can I use an asset-based mortgage on a condo that is not warrantable?
Often yes, but expect different terms. Lenders in the network review non-warrantable buildings case by case, and leverage or loan size may tighten. Whether it works depends on the specific building, the path you are on and the lender’s review.
Can I buy a Washington condo as an investment with an asset-based loan?
Only on the asset depletion path. That path allows up to 65% on a purchase or rate-and-term refinance and up to 60% on a cash-out refinance for investment property. The qualifier path covers principal residences and second homes, not investment property.
Do I need to sell my stocks or drain my retirement account?
No. The lender counts the balances at the percentages above rather than requiring a sale. A retirement account counts at 90% or 100% on the qualifier path, depending on your age, and at 70% on the depletion path.
Does Washington require a special condo disclosure?
Yes, in the form of the resale certificate that the association must furnish to a unit owner on request. Older buildings may fall under a different statute, so confirm which one governs yours.
Will the HOA’s rental rules affect my loan?
Yes, they can. A ban on renting overrides any financing plan, and rental limits can affect the lender’s project review. Check the association’s rules before you rely on rental income.
Next Steps
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.
Lendmire’s asset-based mortgage in Washington page presents the program for Washington 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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References
1. WA Legislature, RCW 64.90.640
3. Seattle Condos and Lofts, monthly condo market recap
4. Seattle Condos and Lofts, monthly condo market update
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? · How an Asset Depletion Mortgage Works · Joint vs Individual Accounts on an Asset Depletion Mortgage
Guides: Asset-Based Mortgage in Washington
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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- Lendmire LLC · Firm NMLS# 2371349 · Verify firm licensure
Required disclosures. Lendmire (NMLS# 2371349) operates as a licensed mortgage broker, not a direct lender or depository. The discussion in this article is general in nature and should not be relied upon as financial, legal, or tax advice — every investment scenario is unique and should be reviewed by a qualified professional. Any loan inquiry is subject to lender underwriting, and this article is not a commitment to lend or a guarantee of approval. Mortgage rates, loan terms, and program guidelines vary by borrower, property, and state, and may change without notice. Equal Housing Opportunity. Verify licensure at NMLS Consumer Access.