The Quick Read: It depends on the path: assets can cover the whole loan outright, or be divided by 60 months into income that must carry the payment, and a $1 million balance buys a very different price on each. The purchase price is not a fixed multiple of your balance. It comes from the loan program, the leverage cap for your occupancy type, and how much of the money is left for cash to close. All figures below are typical of select programs and subject to underwriting.
- Asset qualifier path: eligible assets must equal or exceed the entire loan, up to $4,000,000, with no employment or income documented.
- Asset depletion path: usable assets divided by 60 months become qualifying income, and that income must carry the full housing payment and other debts.
- Leverage: up to 80% on a purchase on the qualifier path; on the depletion path 80% for a home you live in or a second home, and 65% for an investment property.
- Not “no documents”: every account is documented, with at least two months of statements per account.
- Rental purchases: a DSCR loan sizes the loan off the property’s rent instead, and the $1 million then mostly serves as down payment and reserves.
Which path fits a borrower with $1 million and no paycheck?
The asset qualifier path fits when your balances are large enough to cover the loan itself. The asset depletion path fits when your balances are better used as a stream of monthly income. A borrower runs on one path at a time, and the two never blend.
Across the wholesale network Lendmire works with, these are the two asset-based structures that show up most for retirees, business sellers, and households living off a portfolio. Lendmire is a broker. It places these files with select lenders, and the lender decides.
| Factor | Asset qualifier | Asset depletion |
|---|---|---|
| How assets are used | Must cover the whole loan | Divided by 60 months into income |
| Income documented | None | Derived from assets, run through DTI |
| Purchase leverage | Up to 80% | 80% home; 65% investment |
| Refinance leverage | 75% | 80% rate-and-term; 60% cash-out |
| Loan range | Up to $4,000,000 | $125,000 to $3,500,000 |
| Credit | 600 floor | Lender’s matrix |
The qualifier path is the cleaner fit for a home you will live in or a second home. Investment property is available only on the depletion path. Cash-out proceeds never count as qualifying assets on the depletion path. Cash-out terms on the qualifier path are left to the individual lender.
For a deeper look at how the program fits a Tennessee borrower, see Lendmire’s asset-based mortgage programs page.
What counts toward the $1 million?
Cash and cash-like accounts count in full, while securities and retirement accounts are discounted, and the discount depends on the path. Two accounts with the same balance can count for very different amounts, so the account mix matters as much as the total.
| Asset type | Qualifier path | Depletion path |
|---|---|---|
| Savings, money market | 100% | 100% (cash accounts) |
| Certificates of deposit | 100% | 100% |
| Brokerage / securities | 100% | 80% |
| Private stock | Not published | 75% |
| 401(k) / IRA | 90% under 59½; 100% after | 70% at any age |
| Real-estate equity | Not published | 60% |
Some asset classes are not published as eligible on either path. These include cryptocurrency, precious metals, collectibles, pledged or borrowed funds, and business accounts beyond your ownership share. The documented route is to convert them into a seasoned cash balance in a regulated account, with the source reviewed by the lender. On the depletion path, custodial accounts, deferred compensation, escrow accounts, foreign funds, cash on hand, stock options, and non-vested restricted stock units are also out.
Seasoning rules differ as well. On the qualifier path, funds need 60 days of seasoning and two months of statements per account. On the depletion path, statements must be at least 120 days old at application, plus one within 45 days. Sale-of-business, inheritance, and legal-settlement funds are excused from that seasoning on the depletion path.
What does the arithmetic look like on a $1 million balance?
Run the numbers as percentages first, then dollars. These are illustrations only, and the lender’s own calculation governs.
Qualifier path. Say your $1,000,000 sits in $400,000 of brokerage accounts (100% counts, so $400,000), $400,000 in a 401(k) while under 59½ (90% counts, so $360,000), and $200,000 in savings (100% counts, so $200,000). That is $960,000 of usable assets. A loan up to that amount can qualify on assets alone, subject to underwriting. Move the 401(k) past age 59½ and it counts in full.
Depletion path. Say the same $1,000,000 is $500,000 in securities (80% counts, so $400,000) and $500,000 in a retirement account (70% counts, so $350,000). That is $750,000 of usable assets. Divided by 60 months, it produces $12,500 of monthly qualifying income. That income then has to carry the housing payment and other debts through the program’s debt-to-income test. If the whole $1,000,000 were cash, the same math would produce noticeably higher monthly qualifying income.
Two limits sit on top of this. The depletion path requires qualified assets of at least the lesser of $1,000,000 or 1.25 times the loan. It also never goes below $250,000 liquid when asset depletion is the only income source. So a portfolio heavy in discounted assets can fall short on a larger loan.
The money also has to do two jobs. Funds used for the down payment and closing costs are generally not available to count again as qualifying assets. The lender’s calculation decides how the same dollars are split between qualifying and cash to close. Plan the split before you pick a price.
So what price can that support in Tennessee?
On the depletion path, the price ceiling is set by debt-to-income, not by the $1 million. The derived income has to carry the full payment. That payment includes taxes and insurance, which vary by county across Tennessee. Leverage then sets the down payment.
For a primary home or second home, leverage can reach 80% on a purchase. For an investment property it tops out at 65%. A buyer who wants more price at a given income has two levers: a larger down payment or a better mix of assets.
On the qualifier path, the loan can be as large as your usable assets, up to $4,000,000, but the price is the loan divided by the leverage cap. The down payment and closing costs must then come from funds you are not counting toward the loan, so the practical price is lower than the arithmetic ceiling. This program is for a buyer with substantial assets beyond the amount borrowed.
Local prices differ widely between Nashville-area, Memphis, Knoxville, and Chattanooga neighborhoods and the rural counties. The program figures do not change by state, and Tennessee facts are context, never program parameters. Lendmire’s consumer lending is licensed in Tennessee among 16 states.
Credit still matters. The qualifier path has a 600 floor. The depletion path follows the lender’s score and loan-amount matrix, and a first-time investor on that path needs 700. Housing history is 0x30x12, and one 30-day late in the last twelve months is considered case by case. A housing event needs 4 years of seasoning on the depletion path, and multiple bankruptcies are not eligible. Approval is never assured.
What if the house is a rental?
For a rental, a DSCR loan is usually the better route, because the property’s rent sets the loan size instead of your balances. 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.
A DSCR file qualifies primarily on property-level rental income covering the payment, subject to lender guidelines. The coverage ratio is monthly rent divided by the full monthly obligation, including taxes and insurance. Many programs are built around a 1.00 benchmark. Programs below 1.00 are available through select lenders in the network, but leverage and terms adjust. Your $1 million then serves as the down payment, closing costs, and reserves, not as the loan basis.
The file still carries documents. Expect credit review, reserve statements, an appraisal with a rent schedule, and entity documents if you close in an LLC, per lender program requirements. “No income” never means “no documents.”
Here is how to choose between the routes.
| Goal | Best fit | Why |
|---|---|---|
| Home you live in | Qualifier or depletion | Higher leverage on owner-occupied |
| Second home | Qualifier or depletion | Same leverage as a primary |
| Rental, strong rent | DSCR | Rent sets the loan |
| Rental, assets strong, rent weak | Depletion | Income from assets, 65% leverage |
What trips files up?
Most problems come from the account mix, the seasoning, or assuming the balance sets the price. These are the ones that recur in files like this.
- Assuming the total is the budget. Haircuts, down payment, and closing costs come out before anything is divided by 60.
- Unseasoned funds. A recent transfer without statement history fails the 60-day or 120-day tests unless it is a sale, inheritance, or settlement.
- Ineligible assets. Crypto, borrowed funds, and foreign accounts must first be converted into a seasoned cash balance.
- Blending paths. An asset qualifier file and a depletion file use different tables, and a borrower is on one at a time.
- Draining reserves. Using the same portfolio for the down payment, the qualifying base, and living costs leaves little cushion after closing.
Tax treatment varies; consult a qualified professional.
Where does the regulatory frame come in?
An asset-based home loan is a consumer mortgage, so the lender must reasonably determine you can repay. The CFPB’s rule text says a lender need consider only the income or assets it relies on. The eCFR version lists the mandatory factors, including the payment on the loan and on any simultaneous loan. Law-firm commentary on non-QM lending states the working principle: the lender verifies the assets it relies on through reliable third-party records. That is why every statement matters on these files.
Key Terms Defined
Asset qualifier: a path that drives lender review on eligible assets alone, with no income documented.
Asset depletion: a path that divides usable assets by 60 months into monthly qualifying income.
Usable assets: the share of each balance that counts after the program’s percentages.
Seasoning: the period funds have sat in an account, shown by statements.
DSCR: the property’s monthly rent divided by its full monthly obligation, used for rental loans.
Debt-to-income (DTI): monthly debts divided by qualifying income.
Frequently Asked Questions
Can I buy a house in Tennessee with $1 million in assets and no income?
Yes, through an asset-based mortgage, subject to underwriting. The qualifier path covers the loan with assets, and the depletion path turns assets into income. Credit, statements, and the property are all reviewed.
Does $1 million mean I can buy a $1 million house?
Not automatically. The balance is reduced by account percentages, and the down payment and closing costs generally come out of it too. Leverage caps then set the price against the loan.
Do retirement accounts count?
Yes, at a discount. On the qualifier path a 401(k) or IRA counts at 90% under age 59½ and 100% after. On the depletion path it counts at 70% at any age.
Can I use this to buy a rental?
Investment property is available only on the depletion path, at up to 65% on a purchase. Many investors use a DSCR loan instead, where rent sets the loan size.
Is this a no-doc loan?
No. You skip documenting employment income, but every qualifying account is documented with statements, and credit and the property are reviewed.
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. Tennessee buyers with a large balance and no paycheck usually find the answer is not a single price but a range driven by the account mix.
Lendmire’s asset-based mortgage in Tennessee page presents the program for Tennessee borrowers.
About Lendmire
Lendmire, NMLS# 2371349, is a mortgage brokerage with consumer lending licenses in 16 states. Bank statement, P&L-only, 1099-only and asset-based mortgages are arranged through wholesale lending partners for borrowers whose traditional personal-income documentation understates their income, and each application is reviewed individually by the lender. Scotsman Guide named Lendmire a Top Mortgage Workplace in both 2025 and 2026.
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References
1. CFPB Regulation Z, §1026.43
3. Lexology: CFPB and non-QM lending
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 to Get Pre-Approved in Florida on Assets Instead of Income · How Much Does a Startup Founder Need in Assets to Qualify for a Mortgage? · Can You Buy a Virginia Rental Property on Asset Depletion Income?
Guides: Asset-Based Mortgage in Tennessee
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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Important disclosures. Lendmire (NMLS# 2371349) is a licensed mortgage brokerage. Lendmire is not a direct lender, depository institution, or financial advisor. All loan inquiries are subject to lender underwriting; this article does not constitute a commitment to lend. Rates, terms, and program guidelines are subject to change without notice and vary by borrower profile, property type, and state. Information in this article is general in nature and is not financial, legal, or tax advice. Equal Housing Opportunity. NMLS Consumer Access: nmlsconsumeraccess.org.