The Quick Read: You finance a Florida vacation home on assets by choosing one of two paths through select programs in Lendmire’s wholesale network. Either your eligible savings and investments cover the entire loan with no income documented, or your assets are converted into monthly qualifying income that must carry the payment, subject to underwriting. Either way, the assets themselves are fully documented. Rent from the home generally cannot help you qualify on a second-home loan.
- Path one, asset qualifier: usable assets must equal or exceed the whole loan. No employment or income is documented.
- Path two, asset depletion: usable assets divided by 60 months become qualifying income, which then runs through a debt-to-income test.
- Leverage: on a second home, up to 80% on a purchase on either path, through select programs.
- Florida adds its own filters: flood coverage, insurance, condo documents, and HOA rental rules can derail a file even when your assets are strong.
- Planning matters: down payment and closing funds come out of your pool, so count what is left after closing.
Which Path Fits a Florida Vacation Home?
Pick the asset qualifier path if your balances are large enough to cover the loan outright. Pick asset depletion if your balances are large but you want them treated as income. A borrower is reviewed on one path at a time, and the two never blend.
This product suits people whose balances are big and whose paychecks are not. Think retirees, people who sold a business, recipients of an inheritance or settlement, early-retired professionals, and households living off a portfolio.
Here is the practical split.
- Asset qualifier: the loan is covered by the assets alone. The lender is not looking at pay stubs, traditional personal-income documentation, or employment.
- Asset depletion: the assets become a monthly number. That number has to carry the housing payment and your other debts.
Both paths are consumer mortgages for a home you will use yourself. A true vacation home or second home fits well. If you plan to run the property as a rental business, the loan usually belongs somewhere else, and the decision table below covers that.
How the Asset Qualifier Path Works, Step by Step
On the asset qualifier path, the lender adds up your usable assets after credit percentages and checks that the total equals or exceeds the entire loan amount. Nothing is divided into income. Through select programs, loans run up to $4,000,000, subject to underwriting.
Step 1: List your accounts. Gather every account you might count. Balances combine across accounts.
Step 2: Apply the credit percentages. Not every dollar counts in full. These are the percentages on this path:
| Asset (qualifier path) | Share that counts |
|---|---|
| Brokerage accounts | 100% |
| Certificates of deposit | 100% |
| Money market | 100% |
| Savings | 100% |
| 401(k) or IRA, under age 59½ | 90% |
| 401(k) or IRA, age 59½ or older | 100% |
Step 3: Check seasoning. Seasoning means the money has sat in your accounts long enough to be treated as yours. On this path that is 60 days, with two months of statements for each qualifying account.
Step 4: Check leverage. On a second home, the ceiling is typically 80% on a purchase and 75% on a refinance. Whether cash-out is allowed on this path is set by each lender and is not published, so ask before you plan around it.
Step 5: Check credit. The published floor is a 600 score. Housing history is typically reviewed at 0x30x12, meaning no 30-day lates in the last twelve months. One late in that window may be considered case by case. Multiple bankruptcies are not eligible.
Step 6: Reserves. Reserves are the cash left over after closing. On this path none are required at or below 75% loan-to-value. Above that, up to the 80% purchase ceiling, the lender sets them.
These are ceilings and floors, not offers. Every file is underwritten individually.
How Underwriting Treats Your Assets
“No income documented” does not mean “nothing documented.” The assets get the scrutiny that income would otherwise get.
The OCC’s bulletin on asset depletion underwriting describes the method as using an applicant’s assets to compute a hypothetical annuity stream. It says the approach is often used for high-net-worth applicants with significant liquid assets but little qualifying cash flow. Notice the word hypothetical. Nothing is sold, and nothing is pledged. The math is a qualifying convention.
On the consumer side, the CFPB’s ability-to-repay compliance guide says a lender must consider and verify the income or assets it relies on. That is why you hand over statements even when you hand over no pay stubs. Also, the home you are buying cannot count as the asset that supports the loan.
How the Asset Depletion Path Works
On the asset depletion path, usable assets are divided by 60 months to produce a monthly qualifying income. That income must carry your full housing payment and other debts through the debt-to-income test. Through select programs, loans run from $125,000 to $3,500,000, subject to underwriting.
The credit percentages differ from the qualifier path. Do not mix the two tables.
| Asset (depletion path) | Share that counts |
|---|---|
| Cash accounts | 100% |
| Certificates of deposit | 100% |
| Securities | 80% |
| Private stock | 75% |
| Retirement accounts (any age) | 70% |
| Real-estate equity | 60% |
Not eligible on this 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. Cash-out proceeds never count as qualifying assets.
The rules that matter next:
- Minimum assets: the lesser of $1,000,000 or 1.25 times the loan balance. It is never below $250,000 liquid when depletion is your only income source.
- Supplementing income: asset-derived income may add to documented income, up to a 45% debt-to-income ratio. When it supplements, the minimum-assets rule is waived.
- 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.
- Leverage on a second home: up to 80% on a purchase or rate-and-term refinance and 60% on a cash-out refinance.
- Credit: the lender’s score and loan-amount matrix applies. A housing event needs 4 years of seasoning on this path.
- Reserves: no published reserve months.
If you hold the Florida home as an investment property on this path, leverage drops to 65% on a purchase or rate-and-term refinance and 60% on a cash-out. A first-time investor needs a 700 score. That is a different property class from a vacation home, so confirm the occupancy before you pick a program.
A Worked Example
These numbers show the mechanics. The lender’s own calculation governs.
Qualifier path. Say your Florida vacation home needs an $800,000 loan. You hold $330,000 in brokerage accounts, $300,000 in a 401(k) while under 59½, and $200,000 in savings. The brokerage and savings count in full. The 401(k) counts at 90%, which is $270,000. Usable assets total $800,000, which equals the loan, so you would qualify on assets alone.
Depletion path. Say you hold $1,500,000 in securities and $300,000 in cash. Securities count at 80%, which is $1,200,000. Cash counts at 100%, which is $300,000. That is $1,500,000 usable. Divided by 60 months, it produces $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.
One planning point: money you spend on the down payment and closing leaves your pool. If those funds come from the same accounts you are counting, run the math on what remains after closing. Lenders review this in their own way, so ask early.
Where Florida Changes the Picture
Florida ownership costs and property rules decide many files before your assets ever matter. Budget for them from day one, because they push the payment up and can narrow what your assets support.
- Flood coverage: a lender backed by the federal government must require flood insurance when the building sits in a mapped high-risk flood zone. Private lenders set their own flood rules in their program guidelines, and many require coverage even outside mapped zones. Standard homeowners policies generally do not cover flood damage.
- Insurance: wind and hazard coverage on a Florida property can be a large line item. Get a real quote before you write an offer.
- Condos: Florida condo buildings face tighter inspection and reserve-funding expectations. Condo documents, reserves, special assessments, and rental restrictions can sink a file regardless of your balances.
- HOA rules: many associations set minimum lease terms or limit rentals. Read the governing documents before you go under contract.
If you plan occasional rentals, the story changes. 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. And on a second-home loan, you are certifying how you will use the property. Treating a second home as a full-time rental can create real problems.
Tax treatment varies by how the home is used and held; consult a qualified professional.
Which Loan Fits Your Florida Property?
Match the loan to how you will use the home. Here is how the options sort out.
| Your situation | Typical fit |
|---|---|
| Large balances, personal getaway | Asset qualifier or asset depletion |
| Portfolio income you want counted | Asset depletion |
| Income is documented through deposits | Bank statement program |
| Rental business, rent covers payment | DSCR loan |
| Enough cash to buy outright | Cash purchase |
A DSCR loan is a business-purpose investor loan that tests the property’s rent against its full payment. The bank statement program is for borrowers who document income with deposits. Both belong to different qualification bases than assets. Qualification runs on assets for your personal use, and on property rent for a rental business. The complete DSCR loans guide explains how property-rent-based lender review works.
Across the wholesale network, the strongest second-home files share a few traits. The asset pool is clean, seasoned, and held in regulated accounts. The property is easy to insure. The condo or HOA documents have no surprises. The borrower knows which path the file is on before the application starts.
Do You Have to Sell Your Investments?
No. Qualifying on assets does not require liquidating them. The lender counts them. You still need cash for the down payment and closing, and that part you do spend. Lendmire’s article Do You Have to Liquidate Assets to Reserve an Asset Qualifier Mortgage? covers that question.
Some asset types are a different story. Cryptocurrency, precious metals, collectibles, business accounts beyond your ownership share, and pledged or borrowed funds are not published as eligible on either path. The documented route is converting them to a seasoned cash balance in a regulated account, with the source reviewed by the lender.
Common Mistakes
- Counting the same dollars twice. Money used for closing cannot also be a qualifying asset.
- Moving money right before applying. Large transfers invite source-of-funds questions. Seasoning clocks start over for new deposits on the qualifier path.
- Mixing the two paths. The credit percentages are different. A figure from one table does not apply to the other.
- Ignoring condo documents. Check reserves, assessments, and rental limits before you pay for an appraisal.
- Assuming rent will help. On a second-home loan, rent generally cannot help you qualify.
- Skipping the Florida insurance quote. Carrying costs can change how much the assets must support.
Who This Does Not Fit
This loan is not for everyone. If your assets are modest, the minimum-assets rules on the depletion path will stop you. If your balances sit in crypto or collectibles, you will need to convert them first. If you plan to run the home as a rental business, the loan likely belongs on a rent-based structure. And if your credit is below the published floor, assets alone will not fix it. Programs change and every file is underwritten individually, so use this as a screening guide.
Key Terms Defined
- Asset qualifier: a path where eligible assets alone must equal or exceed the entire loan, with no income documented.
- Asset depletion: a path that divides usable assets by 60 months to create a monthly qualifying income.
- Seasoning: the time your funds have been in an account before a lender counts them.
- Debt-to-income (DTI): your monthly debts divided by your monthly income.
- Credit percentage (haircut): the share of an account’s balance that counts toward qualifying.
- Reserves: cash left in your accounts after closing.
Frequently Asked Questions
Do I need traditional personal-income documentation?
On the asset qualifier path, no employment or income is documented. On the asset depletion path, assets become the qualifying income, though documented income can supplement it up to a 45% debt-to-income ratio. Either way, your accounts are fully documented with statements, subject to underwriting.
Do my retirement accounts count?
Yes, at a reduced share on both paths. On the qualifier path, 401(k) and IRA balances count at 90% under age 59½ and 100% at 59½ or older. On the depletion path, retirement accounts count at 70% at any age. Accounts combine, subject to underwriting.
Can I use expected rent to qualify?
Generally no. On a second-home loan, rent from the property does not help you qualify. If the home is a rental business, a DSCR loan, which tests rent against the payment, is the better structure.
How much can I borrow?
Through select programs, the qualifier path runs up to $4,000,000. The depletion path runs from $125,000 to $3,500,000. On a second home, leverage tops out at 80% on a purchase on either path. Your assets and the property decide the real number.
What credit score do I need?
The qualifier path has a published 600 minimum. The depletion path follows the lender’s score and loan-amount matrix. Housing history is typically 0x30x12, and approval is never promised.
Next Steps
Start by listing your accounts and sorting them into the qualifier table or the depletion table, not both. Then decide whether the Florida home is a personal getaway or a rental business.
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 broker that arranges these loans through select lenders, and its consumer mortgage lending is licensed in 16 states, Florida among them. Florida’s mix of flood, insurance, and condo rules means the property review deserves as much attention as your balances.
Lendmire’s asset-based mortgage in Florida page presents the program for Florida 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. OCC Bulletin 2019-36: Asset Dissipation Underwriting
2. CFPB Ability-to-Repay and Qualified Mortgage Rule Compliance Guide
This article is part of Lendmire’s asset-based mortgage program — full qualification details, guidelines, and scenarios live on the program page.
Related reading: Asset Qualifier vs Asset Depletion for an Heir · Asset Qualifier vs Asset Depletion for a FIRE Household · Is an Asset Qualifier Mortgage Harder to Get Than an Asset Depletion Loan?
Guides: Asset-Based Mortgage in Florida
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.