The Quick Read: Yes, usually, when the condo is your principal residence or second home and the building passes the lender’s project review. Your assets can cover the loan outright on the asset qualifier path, or they can become monthly income on the asset depletion path. Neither path waives the building review, and a condo you plan to rent is limited to the depletion path, subject to underwriting.
- Two paths, one at a time. The qualifier path counts assets against the whole loan. The depletion path turns assets into qualifying income.
- The borrower test and the building test are separate. Strong assets do not fix a weak association.
- Ohio adds one big wrinkle: the declaration. It can limit or ban leasing, which matters for any condo you plan to rent.
- HOA dues still count. They sit inside the housing payment the lender reviews.
Who This Fits
This loan suits people with large balances and little documented income. Think of a retiree downsizing into a condo, a business owner who just sold the company, someone who received an inheritance or a settlement, or an early-retired professional living off a portfolio.
Lendmire is a mortgage broker. It arranges these loans through select lenders in its network, and its consumer mortgage licensing covers 16 states, Ohio among them. The lender reviews your file, and approval is never certain until underwriting finishes.
How Do the Two Asset-Based Paths Work?
The qualifier path covers the entire loan with eligible assets and documents no employment or income. The depletion path adds up usable assets, divides by 60 months, and treats the result as monthly income. That income must carry the housing payment and your other debts through the debt-to-income test. You qualify on one path at a time, never a blend.
Here is the plain-language version of each.
Asset qualifier path. The lender counts a set percentage of each account. 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 reach 59½. Accounts combine.
Say you want an $800,000 loan. You hold $330,000 in brokerage accounts (100% counts, so $330,000), $300,000 in a 401(k) while under 59½ (90%, so $270,000) and $200,000 in savings (100%, so $200,000). That adds up to $800,000 of usable assets. Those assets equal the whole loan, so you qualify on assets alone. This is an illustration, and the lender’s own calculation governs.
Asset depletion path. Haircuts are steeper here. Cash and CDs count at 100%, securities at 80%, private stock at 75%, retirement accounts at 70% at any age, and real-estate equity at 60%.
Picture $1,500,000 in securities (80% counts, so $1,200,000) plus $300,000 in cash (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 has to carry the housing payment and other debts.
Some assets are not eligible on the depletion path. These include custodial accounts, deferred compensation, escrow accounts, foreign funds, cash on hand, stock options, and non-vested restricted stock units.
Crypto, precious metals, collectibles, and borrowed or pledged funds are not published as eligible on either path. The documented route is to convert them to a seasoned cash balance in a regulated account. The lender then reviews where the money came from.
You can read how asset-based qualifying sits next to other investor financing in Lendmire’s complete DSCR loans guide.
Leverage, Credit and Seasoning at a Glance
Leverage depends on the path and on how you will use the condo. The figures below are typical ceilings through select programs, subject to underwriting.
| Factor | Qualifier path | Depletion path |
|---|---|---|
| Purchase LTV, home or second home | Up to 80% | Up to 80% |
| Refinance LTV, home or second home | Up to 75% | 80% rate-and-term, 60% cash-out |
| Investment property | Not available | 65% purchase or rate-and-term, 60% cash-out |
| Loan amounts | Up to $4,000,000 | $125,000 to $3,500,000 |
| Credit | 600 minimum | The lender’s matrix |
| Seasoning | 60 days, two months of statements per account | Statements 120+ days old, plus one within 45 days |
A few more details matter for condo buyers.
- On the qualifier path, reserves are not required at or below 75% loan-to-value. Above that, the lender sets them.
- On the depletion path, you need qualified assets of at least the lesser of $1,000,000 or 1.25 times the loan balance. If asset depletion is your only income source, you also need at least $250,000 in liquid assets.
- A first-time investor on the depletion path needs a 700 score.
- Housing history is reviewed at 0x30x12. One 30-day late in the last twelve months is considered case by case.
- Cash-out proceeds never count as qualifying assets.
The assets are fully documented on both paths. “No income documentation” never means “no documentation.”
Why Does a Condo Add a Second Test?
Because the lender is also lending against the building. A condo loan rests on you and on the association. Your assets answer the first question. The association’s finances answer the second.
| Item | Borrower test | Building test |
|---|---|---|
| What it checks | Assets, credit, history | Association health |
| Where it comes from | Statements, credit report | HOA budget, reserves, minutes |
| Can strong assets fix it? | n/a | No |
Across a wholesale network, the building test varies more than the borrower test does. Lenders generally look at the association’s budget and reserves. They also look at pending litigation, how many units are investor-owned, master-insurance coverage and special assessments. Each lender draws its own lines. A building one lender declines may suit another, which is where a broker earns its keep.
Programs placed through a wholesale network are generally not bound by a single conventional checklist. They still examine similar risks, with different pass-or-fail lines. So a non-warrantable label is not automatic denial, but a specific building can still fail on litigation, weak reserves or heavy investor concentration.
What Is Different About an Ohio Condo?
Ohio’s Condominium Property Act, Chapter 5311 of the Ohio Revised Code, defines a condo as exclusive ownership of a unit plus an undivided share of the common elements. Ohio condos can be fee simple. They can also be a 99-year renewable leasehold. Lender treatment of leaseholds varies by program, so ask before you fall for one.
Two Ohio details deserve a look before you write an offer.
The declaration controls leasing. Owning the unit does not mean you can rent it. A law firm’s guidance on leasing restrictions explains that associations can limit or prohibit leasing by amending the declaration. It says this usually takes approval from a supermajority of owners, and that some lenders will not finance a community that bans leasing outright.
Common forms include owner-occupancy waiting periods, rental caps, tenant approval and short-term-rental bans, as a rental investor’s guide to HOA rules lays out. Short-term rental rules can vary by city, county, HOA and property type, so confirm local rules before relying on projected rental income.
Unpaid dues are a buyer’s problem, not a lender’s. An association can record a lien for unpaid common expenses and enforce it through foreclosure, as the Franklin County Law Library’s condo lien guide describes. A legal-information site, HOA Weekly, reports that Ohio has no super-priority ahead of a first mortgage already of record. That is reassuring for lenders, but a building drowning in delinquencies still draws scrutiny and often special assessments.
Where Do HOA Dues Show Up?
Dues are part of your monthly housing cost. On the depletion path, that cost runs through the debt-to-income test against your asset-derived income. On the qualifier path, no income is documented, and the lender’s ability-to-repay review rests on your assets.
Either way, a condo and a house with the same price are not the same obligation. Run both before you pick a building.
Can You Use This Loan on a Condo You Plan to Rent?
Only on the depletion path, and only if the declaration allows leasing. Investment-property leverage there is lower: 65% on a purchase or rate-and-term refinance and 60% on a cash-out. A first-time investor needs a 700 score.
If the condo is a pure rental, the more natural fit is often a DSCR loan. 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. That loan is reviewed primarily on property-level rental income covering the payment, subject to lender guidelines.
Key Terms Defined
Asset qualifier path: the route where eligible assets, after credit percentages, equal or exceed the entire loan. No income is documented.
Asset depletion path: the route that divides usable assets by 60 months to create monthly qualifying income.
Haircut: the share of an account’s balance a lender does not count because the asset is less liquid or more volatile.
Seasoning: the time funds must sit in your accounts, shown on statements, before the lender counts them.
Declaration: the legal document that creates the condo community and carries its rules, including leasing limits.
Non-warrantable condo: a building that fails the checklist used for conventional agency loans. Other programs may still review it.
Which Borrower Are You?
The downsizing retiree. You are selling a house and buying an Ohio condo as your principal residence. Your balances are strong and your pension is modest. The qualifier path often fits when assets can match the whole loan. If they fall short, the depletion path turns them into income, at a lower leverage on a refinance.
The business seller. Sale proceeds, inheritance and legal-settlement funds are excused from the 120-day statement rule on the depletion path. Your documented income may be thin, so the assets do the work. Asset income can also supplement documented income up to a 45% debt-to-income ratio, and when it supplements, the minimum-assets rule is waived.
The second-home buyer. A condo near a lake or a city core is reviewed on the same two paths as a primary home. Building review matters more here, because second-home buildings often carry many absentee owners.
The investor. You plan to rent the unit. Read the declaration first, then decide between the depletion path and a DSCR loan.
A Condo Due-Diligence Checklist
Ask for these before you commit.
1. The declaration and bylaws, to check leasing limits.
2. The HOA budget, financials and reserve study.
3. Board minutes, to spot special assessments or disputes.
4. The master insurance policy and its deductible.
5. A litigation disclosure.
6. The share of units that are owner-occupied versus rented.
7. The current delinquency picture.
Gather these early. The same package supports the lender’s project review, and a weak answer on any line is your cue to look at a different building.
When It Will Not Work
Some situations are hard stops.
- Your wealth sits in crypto, collectibles or business accounts beyond your ownership share, and you cannot convert it to seasoned cash.
- You are a first-time investor under 700 on the depletion path.
- Your assets fall below the depletion minimums.
- The building’s litigation, reserves or investor mix fail the lender’s review.
- The declaration bans the leasing you planned.
- You have multiple bankruptcies, or a housing event inside the 4-year seasoning window on the depletion path.
If any of these fits, you have options. You could choose another building, convert assets to cash and wait out seasoning, or switch to a different loan type.
Tax treatment varies; consult a qualified professional.
Frequently Asked Questions
Can a non-warrantable Ohio condo still qualify?
Sometimes. Asset-based programs placed through a wholesale network are generally not bound by the conventional agency checklist. Lenders still review the building, though, and each draws its own lines. A broker can match a building to a lender whose overlays fit, subject to underwriting.
Does the condo’s HOA affect whether my assets are enough?
Not directly, since the building review is separate from the asset count. Dues still raise your housing payment, which matters on the depletion path’s debt-to-income test. A strong asset total will not rescue a building that fails project review.
Can I use a retirement account?
Yes. On the qualifier path, a 401(k) or IRA counts at 90% under 59½ and 100% at 59½ or older. On the depletion path it counts at 70% at any age. You do not have to withdraw the funds, but the account has to meet the program’s statement and seasoning rules.
Can I take cash out on an Ohio condo?
On the depletion path, yes: up to 60% on a cash-out refinance, whether the condo is a primary residence, second home or investment property. The qualifier path’s cash-out terms are set by the lender and not published. Cash-out proceeds never count as qualifying assets.
Does the rental restriction in the declaration matter if I am buying to live there?
Less, but not zero. Restrictions can still limit what you do later, such as renting the unit after you move. If you may rent it someday, read the leasing section now, because an amendment can change the rules.
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. Programs change, every file is underwritten individually, and nothing here is a commitment to lend.
For some Ohio buyers the decisive document is not a bank statement but the condo declaration, so read it first.
For current guidelines and terms, see Lendmire’s asset-based mortgage programs page.
About Lendmire
Lendmire (NMLS# 2371349) is a mortgage brokerage serving self-employed and high-net-worth borrowers in 16 states. Bank statement, P&L-only, 1099-only and asset-based mortgages are arranged through wholesale lending channels; Lendmire brokers the financing and the lender underwrites each application. Scotsman Guide named Lendmire a Top Mortgage Workplace in both 2025 and 2026.
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References
1. Ohio Revised Code Chapter 5311, Condominium Property Act
2. RentalRealEstate, HOA Rules Every Rental Investor Should Read
3. Franklin County Law Library, Condominium Liens
4. HOA Weekly, Ohio HOA Foreclosure
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 Qualifier Mortgage Harder to Get Than an Asset Depletion Loan? · Can Equity in a Rental Property Help You Qualify for an Asset-Based Mortgage? · Asset Qualifier Mortgage vs Bank Statement Mortgage
Guides: Asset-Based Mortgage in Ohio
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.