The Quick Read: You document an asset qualifier mortgage with account statements instead of pay records, so the file proves your balances, who owns them, and where the money came from. Nothing about a job or income is documented on this path. The lender instead looks for eligible assets that equal or exceed the entire loan amount, subject to underwriting.
- Qualifier path: eligible assets, after the credit percentages, must cover the whole loan amount.
- Two months of statements for each qualifying account, and 60 days of seasoning, are typical.
- Leverage runs up to 80% on a purchase and 75% on a refinance, on a principal residence or second home, through select programs.
- Credit starts at a 600 minimum score, and loans go up to $4,000,000.
- “No employer” never means “no documentation.” The paperwork shifts from paychecks to asset records.
This guide is written for a New Mexico borrower. The program figures do not change by state. Consumer mortgage lending through Lendmire is licensed in 16 states, and New Mexico is one of them. Lendmire is a broker, so it arranges these loans through select lenders in its wholesale network, and the lender’s own review governs every file.
Which Path Fits You: Assets Cover the Loan or Assets Become Income?
Two paths exist, and a borrower is qualified on one at a time. Choosing the wrong one is the most common early mistake, so settle it before you gather a single statement.
The asset qualifier path drives lender review on assets alone. Your eligible assets, after the percentages below, must equal or exceed the entire loan amount. No employment or income is documented.
The asset depletion path turns assets into income. Usable assets are divided by 60 months to create a monthly qualifying income. That income must then carry the housing payment and your other debts through the debt-to-income test.
| Factor | Asset qualifier | Asset depletion |
|---|---|---|
| What qualifies you | Assets cover the whole loan | Assets divided by 60 months |
| Income documented | None | Derived income, DTI tested |
| Purchase leverage | Up to 80% | Up to 80% (65% investment) |
| Loan amounts | Up to $4,000,000 | $125,000 to $3,500,000 |
| Statements | Two months per account | 120 days old plus one within 45 days |
If your balances are large and you want nothing about income in the file, the qualifier path is usually the cleaner fit. If your assets are big but not big enough to cover the full loan, depletion may work, since it needs less than the full loan amount in assets, though it has its own minimums.
What Counts, and How Much of Each Balance
Every account counts at a percentage of its balance. These are the qualifier path credits, through select programs and subject to underwriting.
- Brokerage accounts, certificates of deposit, money market and savings count at 100%.
- 401(k) and IRA balances count at 90% if you are under 59½, and 100% at 59½ or older.
- Accounts combine, so you can stack several to reach the loan amount.
Here is an illustrative case. Picture 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, which matches the loan and is reviewed on assets alone. The lender’s own calculation governs.
The depletion path uses different haircuts, and you should never blend the two tables. 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%. Not eligible on depletion: 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.
Illustratively, $1,500,000 in securities (80%, so $1,200,000) plus $300,000 in cash (100%) gives $1,500,000 usable. Divided by 60 months, that is $25,000 of monthly qualifying income, which then runs through the debt-to-income test.
Cryptocurrency, precious metals, collectibles, pledged or borrowed funds, and business accounts beyond your ownership share 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.
Why No Employer Is Not a Problem on Paper
Federal ability-to-repay rules ask a lender to consider your current or reasonably expected income or assets. The CFPB’s ability-to-repay compliance guide lists that as the first of its eight factors, and employment status matters only when the lender relies on employment income. A job is not a legal requirement.
The flip side matters just as much. The lender must verify what it relies on using reasonably reliable third-party records, as set out in Regulation Z section 1026.43. Bank and brokerage statements are the standard kind of record. Your word alone never counts.
The Master Document Checklist
Across our wholesale network, files stall on the same handful of paper problems. Here is what to gather and why each item is asked for.
| Document | What it proves | Common problem |
|---|---|---|
| Bank and savings statements | Balance, ownership | Missing pages |
| Brokerage statements | Value, account holder | Unnamed owner |
| CD and money market statements | Balance, maturity | Stale statement date |
| 401(k) or IRA statements | Balance, your age bracket | Wrong haircut assumed |
| Large-deposit explanations | Source of funds | No paper trail |
| Government ID and credit authorization | Identity, score | Name mismatch |
Four habits keep statements clean.
1. Send every page. Even blank-looking pages count. A statement missing a page gets sent back.
2. Match the name. The account holder on the statement should be you, or a co-borrower. Business accounts count only for your ownership share, and many lenders prefer personal funds.
3. Give two full months per qualifying account. The qualifier path also wants 60 days of seasoning, meaning the money has sat in your account that long.
4. Keep the dates fresh. On the depletion path, statements must be no more than 120 days old at application, plus the most recent one within 45 days. Funds from the sale of a business, an inheritance, or a legal settlement are excused from that seasoning.
Large Deposits: The Paper Trail Playbook
An underwriter who sees a big jump in a balance will ask where it came from. That is routine, not a red flag. Your job is to have the answer in writing.
| Where the money came from | What explains it |
|---|---|
| Sale of a business | Sale agreement and the settlement statement |
| Sale of a home | Settlement statement showing proceeds |
| Inheritance | Estate or distribution paperwork |
| Legal settlement | Settlement agreement and payout record |
| Transfer between your own accounts | Statements from both accounts |
| Retirement rollover | Statements from both institutions |
Avoid moving money around right before applying. Every transfer creates another item to explain. Borrowed or pledged funds do not count at all.
Filling Out the Application With No Employer
Be plain about it. If you are retired, between jobs, or sold your business, say so. On the qualifier path, no employment or income is documented, and the lender’s review rests on your assets. Do not invent an employer or estimate income to fill a box.
If you are on the depletion path, your derived income comes from the assets themselves. Where you also have documented income, such as a pension, asset income can supplement it up to a 45% debt-to-income ratio, and the minimum-assets rule is waived in that case.
Who This Tends to Fit
Retirees living on a portfolio often fit best, since balances are large and pay records do not exist. Sellers of a business hold proceeds in cash and need a way to buy without a paycheck. Recipients of an inheritance or settlement, and early-retired professionals, fall in the same bucket. Borrowers going through a divorce may hold liquid assets from a settlement. In each case, the seasoning rules above decide how soon those funds can be used.
Credit, Leverage and the Fine Print
Credit matters even when income does not. The qualifier path has a 600 minimum score. The depletion path follows the lender’s matrix, and a first-time investor on that path needs 700. Housing history of 0x30x12 is the norm, and one 30-day late in the last twelve months is considered case by case. Multiple bankruptcies are not eligible, and a housing event needs 4 years of seasoning on the depletion path.
Leverage differs by path. On the qualifier path, a principal residence or second home goes up to 80% on a purchase and 75% on a refinance. Whether cash-out proceeds are allowed on that path is set by the lender and not published. On the depletion path, a principal residence or second home goes up to 80% on a purchase or rate-and-term refinance and 60% on a cash-out refinance. Cash-out proceeds never count as qualifying assets.
Depletion has minimums too: qualified assets of at least the lesser of $1,000,000 or 1.25 times the loan balance, and never below $250,000 liquid when depletion is the only income source. On the qualifier path, reserves are not required at or below 75% loan-to-value. Above that, the lender sets them. Treat these as ceilings and floors, not offers. Every file is underwritten individually, and programs change.
For the full picture of how Lendmire approaches investor and asset-based financing, see the complete DSCR loans guide. Rental-property buyers whose cash flow can carry the loan usually belong in a DSCR loan instead, because that is a business-purpose product built on property income. A bank statement program fits borrowers who document income through deposits.
Edge Cases Where the General Rule Bends
- Joint applicants. The federal rule’s preamble says that if one borrower’s assets suffice on their own, the creditor need not count the other’s. Lenders still review both borrowers’ credit.
- Retirement under 59½. The qualifier path counts these at 90%. The depletion path counts them at 70% at any age. Pick the path that treats your mix best.
- Business funds. Only your ownership share counts, and the lender reviews the source.
- Spouse not on the loan. New Mexico is a community-property state, which can affect title and ownership questions. Confirm how that applies to your accounts with your loan officer and a qualified attorney before you rely on it.
- Crypto and collectibles. Convert to cash in a regulated account and let it season first.
If your question is how many months of cushion the lender will want, read Lendmire’s piece How Many Months of Reserves Does an Asset Qualifier Mortgage Require?. If you want a shorter checklist, Lendmire’s asset qualifier document checklist covers it.
Step by Step: From Inventory to Underwriting
1. Inventory every account. List balance, owner, account type, and your age for any retirement accounts.
2. Pick the path. Do eligible assets cover the whole loan, or do you need them to become income?
3. Apply the percentages. Add your usable total and compare it with the target loan amount.
4. Pull the statements. Collect complete statements, all pages, for each qualifying account.
5. Document big deposits. Write a short explanation and attach the proof.
6. Submit and respond to conditions. Underwriting still reviews credit, property, appraisal, and title. Assets replace the employment file, not the rest of the underwriting. This is a consumer mortgage, so standard consumer disclosures apply.
Key Terms Defined
- Asset qualifier: A path where eligible assets must cover the entire loan, with no income documented.
- Asset depletion: A path that divides usable assets by 60 months to create qualifying income.
- Seasoning: The time money must sit in your account before it counts.
- Haircut: The share of an account’s balance that is discounted before it counts.
- Debt-to-income (DTI): Monthly debts divided by monthly income, used on the depletion path.
- Non-QM: A mortgage that falls outside standard qualified-mortgage boxes and is reviewed under its own guidelines.
Frequently Asked Questions
Do I need to show traditional personal-income documentation or pay stubs?
On the qualifier path, no employment or income is documented, so neither is the basis for approval. You still document your assets and credit in full, subject to underwriting.
Will my retirement account count in full?
It depends on the path and your age. The qualifier path counts 401(k) and IRA balances at 90% under 59½ and 100% at 59½ or older.
Can I use money from selling my business?
Yes, in many cases. On the depletion path, sale-of-business funds are excused from the statement seasoning. You will still need the sale paperwork showing where the money came from.
Do I have to sell my investments to close?
Not as a rule, because the assets are documented, not liquidated. Down payment and closing funds still come from your money, so those dollars cannot also count toward qualifying.
Is the rental property I want to buy eligible?
Investment property is eligible only on the depletion path, at lower leverage. If rent can carry the loan, a DSCR loan may fit better.
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.
Tax treatment varies; consult a qualified professional.
New Mexico’s community-property rules make it one of the few states where who owns an account can matter as much as how much is in it.
Lendmire’s asset-based mortgage page for New Mexico presents the program for New Mexico borrowers.
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. CFPB ATR/QM Compliance Guide
2. CFPB Regulation Z § 1026.43
This article is part of Lendmire’s asset-based mortgage program — full qualification details, guidelines, and scenarios live on the program page.
Related reading: Can You Get an Asset Depletion Mortgage After a Foreclosure or Short Sale? · Does Real Estate Equity Count on an Asset Qualifier Mortgage? · How an Asset Depletion Mortgage Works
Guides: Asset-Based Mortgage in New Mexico
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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- Lendmire LLC · Firm NMLS# 2371349 · Verify firm licensure
Compliance and disclosures. Lendmire (NMLS# 2371349) is a licensed mortgage broker and is not a direct lender, depository institution, financial advisor, or tax professional. Content in this article is general market analysis and educational information — not financial, legal, or tax advice for any specific situation. Lendmire does not guarantee loan approval; every transaction is subject to underwriting by the funding lender. Mortgage pricing and loan program guidelines are subject to change at any time without notice and vary by borrower characteristics, property type, and state regulations. Lendmire complies with Equal Housing Opportunity. Licensure verification: NMLS Consumer Access.