The Quick Read: It depends on the path, because the asset qualifier path lets you borrow up to 80% on a second-home purchase when your eligible assets cover the entire loan, while the asset depletion path turns your assets into monthly income and also caps a second-home purchase at 80%, subject to underwriting.
- Asset qualifier path: loans run up to $4,000,000, and eligible assets must equal or exceed the whole loan. No employment or income is documented.
- Asset depletion path: loans run from $125,000 to $3,500,000. Usable assets divided by 60 months become your qualifying income.
- Second-home leverage on the depletion path: up to 80% on a purchase or rate-and-term refinance, and 60% on a cash-out refinance.
- Your real ceiling: it is the lowest of three limits: leverage, the loan-size range, and what your assets can support.
- One caution: a house you plan to use yourself is a second home, not a DSCR rental loan, and the two products are not interchangeable.
Every figure here is a ceiling or a floor, not an offer. Programs change, and each file is underwritten individually.
Which Path Fits Your Situation?
Pick the asset qualifier path if your balances can cover the whole loan on their own. Pick the asset depletion path if you want your assets to count as income that carries the payment. A borrower is reviewed on one path at a time, so the two sets of rules never blend on a single file.
The asset qualifier path is the simpler of the two. The lender adds up your eligible assets after the credit percentages below. If the total equals or exceeds the entire loan amount, you qualify on assets alone. No employment or income is documented. Reserves are not required at or below 75% loan-to-value (LTV, the loan as a percentage of the home’s value). Above that, the lender sets them.
The asset depletion path works differently. The lender applies a haircut to each asset, which is a percentage discount on the balance. It adds up what remains, divides by 60 months, and treats the result as monthly income. That income must carry the full housing payment and your other debts through the debt-to-income test, or DTI, which compares your monthly debts to your income.
Who tends to fit? Retirees living on a portfolio, people who sold a business, and households that received an inheritance or a settlement. Early-retired professionals fit too. Their balances are large, but their documented income is small or absent. That mismatch is exactly what these programs were built for.
What Counts as an Asset, and at What Percentage?
Each path credits your accounts differently, so keep the two tables separate. On the qualifier path, most liquid accounts count in full. Retirement accounts depend on your age. On the depletion path, only cash and certificates of deposit count in full, and everything else is discounted.
Asset qualifier path: share of the balance that counts.
| Asset | Counts at |
|---|---|
| Brokerage accounts | 100% |
| Certificates of deposit | 100% |
| Money market | 100% |
| Savings | 100% |
| 401(k) and IRA, under age 59½ | 90% |
| 401(k) and IRA, 59½ or older | 100% |
Accounts combine, so you can stack a brokerage account, savings, and a retirement account to reach the loan amount.
Asset depletion path: share of the balance that counts.
| Asset | Counts at |
|---|---|
| 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 at all: custodial accounts, deferred compensation, escrow accounts, foreign funds, cash on hand, stock options, and non-vested restricted stock units. Funds from non-regulated financial companies are out as well.
What about crypto, precious metals, collectibles, or borrowed money? Neither path publishes those as eligible. The documented route is to convert them into a seasoned cash balance in a regulated account. The lender then reviews where the money came from. Pledged or borrowed funds do not count as assets.
What Are the Three Limits That Cap Your Loan?
Your maximum loan is whichever of three limits binds first. Those limits are the leverage cap, the program’s loan-size range, and what your assets can support. A big portfolio does not lift the first two, and a high leverage cap does not rescue a thin portfolio.
Limit one: leverage. On the qualifier path, a second home can reach 80% LTV on a purchase and 75% on a refinance. Whether cash-out proceeds are allowed on that path, and at what leverage, is set by the lender and is not published. On the depletion path, a second home can reach 80% on a purchase or rate-and-term refinance (a refinance that changes your loan terms without pulling cash out). A cash-out refinance on a second home is capped at 60%. Cash-out proceeds never count as qualifying assets. These specifics are subject to lender guidelines and a full review of property, leverage, and credit.
Limit two: loan size. The qualifier path runs up to $4,000,000. The depletion path runs from $125,000 to $3,500,000. A Pennsylvania lake cabin that needs a small balance can fall under the depletion floor. Across the wholesale network Lendmire works with, you should expect the highest balances to pair with the lender’s tighter credit and asset tests.
Limit three: your assets. On the qualifier path, usable assets must cover the entire loan. On the depletion path, the lender checks two things. The first is whether the derived income carries the payment through DTI. The second is a minimum-assets test: qualified assets of at least the lesser of $1,000,000 or 1.25 times the loan balance. When asset depletion is your only income source, you also need at least $250,000 in liquid assets. If the asset income only supplements documented income, up to a 45% DTI, the minimum-assets rule is waived.
One Pool of Money
The same dollars cannot do four jobs at once. Your down payment, closing costs, any reserves, and your qualifying assets all come from the same balance sheet. A $1,000,000 portfolio that funds a large down payment is no longer a $1,000,000 portfolio when the lender counts what remains.
Plan the order before you shop. Decide which accounts will fund the purchase. Then ask the lender which balances are left to count after closing. This is the gap that catches most first-time asset borrowers, and it is easy to fix on paper before you make an offer.
How Does the Math Work in Practice?
Here are two illustrative examples, one per path. The lender’s own calculation governs, and every figure is subject to underwriting.
Asset qualifier path. Say you want an $800,000 loan on a Pennsylvania second home. You hold $330,000 in brokerage accounts, which count at 100%, or $330,000. You also 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%, or $200,000. Together that is $800,000 of usable assets. That equals the loan, so you qualify on assets alone, with no income documented.
Notice that the 401(k) counts for less than its balance. A borrower who turns 59½ gets the full 100% credit, which can change the answer on a file that was borderline.
Asset depletion path. Say you hold $1,500,000 in securities, which count at 80%, or $1,200,000. You also hold $300,000 in cash, which counts at 100%, or $300,000. That is $1,500,000 of usable assets. Divide by 60 months and you get $25,000 of monthly qualifying income. That income then carries the housing payment and your other debts through the DTI test.
That second example shows why a large balance is not the same as a large loan. The same assets also have to clear the minimum-assets test above. Income is a ceiling on what the payment can be, and leverage is a separate ceiling on what the house can be financed for.
What About Credit, Seasoning, and Statements?
Your assets must be documented and settled. “No income documentation” never means “no documentation.” The lender reads your statements closely.
- Qualifier path seasoning: 60 days, with two months of statements for each qualifying account. Money that moved in last month will draw questions.
- Depletion path statements: 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: the qualifier path has a 600 minimum score. The depletion path follows the lender’s score and loan-amount matrix. Housing history is 0x30x12, though one 30-day late in the last twelve months is considered case by case. Multiple bankruptcies are not eligible. A housing event needs four years of seasoning on the depletion path.
Seasoning, in plain terms, means the waiting period that shows money is truly yours. A fresh deposit from an unknown source is a common reason a clean-looking file stalls.
Why Not Use a DSCR Loan on a Vacation Home?
A DSCR loan is built for a property you rent out, not a house you plan to use. 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. Qualification runs primarily on property-level rental income covering the payment, subject to lender guidelines. Lendmire’s complete DSCR loans guide explains how that works.
A second home you will enjoy is a different category. Federal rules treat credit for non-owner-occupied rentals as business purpose. That treatment stops applying if you expect to occupy the property more than 14 days in the coming year, per the CFPB’s Regulation Z, section 1026.3. A mostly-personal cabin with a few rental weeks is a second home, and a mostly-rented house is an investment property. Some programs add occupancy tests of their own, and those can be stricter.
The practical result affects your paperwork. An asset-based loan on a second home is a consumer mortgage, so consumer disclosures like TRID apply. A true DSCR loan is business-purpose and exempt from TRID. Signing a rental certification for a house you intend to use is a misrepresentation, not a workaround. Holding title in an LLC does not change this either, because occupancy turns on actual use.
One edge case helps explain the line. If you plan to live in one unit of a multi-unit building, owner-occupied acquisition credit counts as business purpose only above two units, according to Bankers Online’s reprint of 12 CFR 1026.3. A Doss Law explainer on the business-purpose exemption makes the same point. Individual DSCR programs generally still bar borrower occupancy of any unit, so this is a narrow door.
What Does Pennsylvania Add to the Picture?
Pennsylvania changes the property, not the program. The leverage caps, loan ranges, and asset percentages above are the same in every state, and Pennsylvania is one of the 16 states where Lendmire’s consumer mortgage brokerage is licensed.
What differs is the house. A lake cabin, a mountain townhome, and a condo in a planned community each get a different look at the appraisal and the association’s rules. Rural or unusual properties can narrow your lender options. Check the property type with your broker before you fall in love with a listing.
Rental income is not part of how either path qualifies you, so a plan to rent the house some weeks does not raise your loan amount. 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.
Common Mistakes (and a Quick Reality Check)
These are the errors that cost borrowers the most time.
- Treating a balance as income. On the depletion path, a portfolio becomes income only after the haircut and the 60-month division.
- Mixing the two paths. You qualify on one path at a time, and you cannot borrow the qualifier path’s leverage with the depletion path’s asset math.
- Double-counting assets. Funds used for the down payment cannot also count as qualifying assets.
- Assuming this is a home equity loan. An asset-based mortgage is a purchase or refinance loan on the second home. It is not a home equity loan or a second mortgage on a property you already own.
- Counting crypto or collectibles. These are not published as eligible. Convert them to a seasoned cash balance first.
Here is the honest decision call. If your assets can cover the loan outright, the qualifier path is cleaner. If you want a larger loan than your assets can cover, the depletion path stretches further, but the leverage drops sharply on a cash-out. The right answer is genuinely file-specific.
How Do the Alternatives Compare?
| Option | Who it fits | How it qualifies |
|---|---|---|
| Asset-based mortgage | Cash-rich, income-light | Assets, or assets as income |
| DSCR loan | Investors renting the property | Property rental income |
| Bank statement program | Self-employed with deposits | Documented bank deposits |
| Conventional loan | Steady W-2 earners | Personal income and DTI |
The bank statement program is for borrowers who document income through deposits. Business-purpose rental financing is DSCR. Agency, conventional, and full-doc jumbo rules judge you on income, and those programs set their own limits. Compare them as separate programs, not as variations of this one.
Key Terms Defined
Asset qualifier path: the route where eligible assets, after credit percentages, must equal or exceed the whole loan.
Asset depletion path: the route where usable assets divided by 60 months become qualifying monthly income.
Haircut: the percentage discount a lender applies to an asset’s balance before counting it.
LTV (loan-to-value): the loan amount as a percentage of the home’s value.
DTI (debt-to-income): your monthly debts compared with your monthly income.
Seasoning: the period that shows funds have been in your account long enough to count as yours.
Rate-and-term refinance: a refinance that changes your loan terms without pulling out cash.
Frequently Asked Questions
Do I have to sell my investments to qualify?
No. The lender counts your balances toward qualification, and you do not liquidate or pledge them. You must still document them with statements and meet the seasoning rules. If the funds also pay for your down payment, they leave your balance and stop counting.
Can I use retirement accounts?
Yes, with limits. 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. Eligibility is subject to underwriting.
Does the income-light route mean no documentation?
No. Personal income and employment are not documented on the qualifier path, but your assets are. You provide statements for every qualifying account. Credit is reviewed too, with a 600 minimum on the qualifier path and the lender’s matrix on the depletion path.
Can I use a DSCR loan instead if I might rent the house?
Only if the house is truly an investment property. Expecting more than 14 days of personal use moves you out of business-purpose treatment under federal rules. A house you want to enjoy is usually a second home, so an asset-based mortgage is the better match.
How much do I need in assets?
It depends on the path. On the qualifier path, your usable assets must equal or exceed the entire loan. 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 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.
Whichever path fits, a Pennsylvania second home is financed on what your balance sheet can prove, and the strongest files are the ones organized before the first offer goes in.
Lendmire’s asset-based mortgage in Pennsylvania page presents the program for Pennsylvania borrowers.
About Lendmire
As a mortgage broker (NMLS# 2371349), Lendmire helps self-employed and high-net-worth borrowers in 16 states qualify on bank statements, a profit-and-loss statement, 1099s or liquid assets instead of tax returns, through wholesale lenders. Lendmire is never the lender; program terms are set by the lender and its guidelines. Scotsman Guide named Lendmire a Top Mortgage Workplace in both 2025 and 2026.
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References
2. Bankers Online, 12 CFR 1026.3
3. Doss Law, Business Purpose Exemption Simplified
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? · How Jumbo Loan Asset Depletion Rules Work for a Second Home · Asset Qualifier Mortgage vs Bank Statement Mortgage
Guides: Asset-Based Mortgage in Pennsylvania
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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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.