The Quick Read: You buy before you sell by qualifying on liquid assets rather than on the old home’s sale, so the new loan never depends on a closing you do not control. On the asset qualifier path, eligible assets must cover the entire loan. No employment or income is documented, subject to underwriting.
- Assets cover the loan outright on the qualifier path: up to 80% loan-to-value on a purchase, with loans up to $4,000,000, through select programs.
- Assets become income on the depletion path: usable assets divided by 60 months, tested against your debts.
- Pennsylvania’s standard contingency forms protect the seller, not you. A clean offer is often the stronger one.
- The assets are documented. Two months of statements per account and 60 days of seasoning on the qualifier path.
- Your old home’s equity is not a cash asset until it sells. Plan the bridge period around that fact.
The Buy-Before-You-Sell Problem in Pennsylvania
The problem is simple. You find the next home before the current one has a buyer. A traditional lender wants to see both payments fit your income. A seller wants an offer that will not fall apart if your house sits.
An asset qualifier mortgage attacks the first worry. It underwrites you on what you own, not on a paycheck. If you hold large balances in brokerage, savings, CDs or retirement accounts, the old home’s sale stops being the thing holding the deal together.
This fits a particular reader. Think of retirees, people who sold a business, heirs, early-retired professionals, and households that live on a portfolio. Their balances are large and their documented income is small. Lendmire is a mortgage broker. It arranges these loans through select lenders in its wholesale network, and its consumer mortgage lending is licensed in 16 states, Pennsylvania among them.
Which Path Fits You: Assets Cover the Loan, or Assets Become Income
You are qualified on one path at a time. Never blend them.
On the asset qualifier path, your eligible assets, after the credit percentages below, must equal or exceed the whole loan amount. No employment or income is documented. On the asset depletion path, your eligible assets, after haircuts, turn into a monthly qualifying income. That income must carry the housing payment and your other debts through the debt-to-income test.
| Factor | Asset qualifier | Asset depletion |
|---|---|---|
| How it works | Assets cover the whole loan | Assets ÷ 60 months = income |
| Purchase leverage | Up to 80% (primary or second home) | Up to 80% primary/second; 65% investment |
| Refinance leverage | Up to 75% | 80% rate-and-term; 60% cash-out |
| Loan amounts | Up to $4,000,000 | $125,000 to $3,500,000 |
| Credit | 600 minimum | Lender’s matrix |
| Seasoning | 60 days; two months of statements | Statements 120 days old plus one within 45 days |
All of this is subject to underwriting and varies by lender within the network. Think of the figures as ceilings and floors. They are not offers.
What counts, and how much
On the qualifier path, these count at 100%: brokerage accounts, certificates of deposit, money market and savings. A 401(k) or IRA counts at 90% if you are under 59½ and 100% once you reach 59½. Accounts combine.
On the depletion path the haircuts are steeper:
- Cash and CDs: 100%
- Securities: 80%
- Private stock: 75%
- Retirement accounts: 70% at any age
- Real-estate equity: 60%
Custodial accounts, deferred compensation, escrow accounts, foreign funds, cash on hand, stock options and non-vested restricted stock units are not eligible on the depletion path. Cryptocurrency, precious metals, collectibles and borrowed or pledged 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.
How Underwriting Counts Your Assets, Step by Step
Across the network, the sequence looks the same. Only the numbers change.
1. Inventory. The lender lists your bank, brokerage and retirement accounts. Business accounts beyond your ownership share and borrowed funds do not count.
2. Apply the credit percentages. Cash counts in full. Securities and retirement balances are discounted.
3. Test the pool. On the qualifier path, the usable total must cover the loan. On the depletion path, it is divided by 60 months to produce income.
4. Check credit and housing history. A 600 score is the qualifier floor. Housing history of 0x30x12 is standard, and one 30-day late in the last twelve months is considered case by case.
5. Document. Statements prove the balances, and the lender reviews the source of large deposits.
6. Underwrite the file. The lender’s own calculation governs. Everything here is illustrative.
Two illustrations, using the same shapes lenders use. On the qualifier path, an $800,000 loan with $330,000 in brokerage accounts (100% counts, so $330,000), $300,000 in a 401(k) under 59½ (90%, so $270,000) and $200,000 in savings (100%, so $200,000) counts $800,000 of usable assets. That file is reviewed on assets alone.
On the depletion path, $1,500,000 in securities (80% counts, so $1,200,000) plus $300,000 in cash (100%) is $1,500,000 usable. Divide by 60 months and you get $25,000 of monthly qualifying income. That income then carries the housing payment and other debts through the debt-to-income test.
Ask early whether down payment and closing funds must sit on top of the qualifying balance. Lenders handle that differently, and it changes how much pool you need.
What Happens to Your Old Home’s Payment?
It depends on the path, and that is why path choice matters most here.
On the qualifier path, no income is documented. There is no debt-to-income test against a paycheck, so the old mortgage is not squeezed against income. The lender’s ability-to-repay review rests on the assets, and the file is underwritten individually. On the depletion path, the old home’s payment generally stays in your debts until the sale settles, subject to underwriting.
| Old home’s status | Qualifier path | Depletion path |
|---|---|---|
| Not listed | Assets carry the file | Payment counts as a debt |
| Listed | Same as above | Payment counts as a debt |
| Under contract | Lender reviews | Lender sets treatment |
| Sold and settled | Payment gone; proceeds season | Payment gone; proceeds season |
Treat the middle rows as questions for the lender, not assumptions. A sale contract is not a settled sale.
Does the Equity in Your Current Home Count?
Not as cash. Equity sits in the house until the house sells.
On the depletion path, real-estate equity counts at 60%, subject to underwriting. Cash-out proceeds never count as qualifying assets there. On the qualifier path, real-estate equity is not among the eligible asset types, so plan on cash and securities carrying the loan. Lendmire’s piece Do You Have to Liquidate Assets to Reserve an Asset Qualifier Mortgage? covers the point that assets are counted, not sold.
A home equity line, if you want one as a backstop, usually has to be opened before you list. Many lenders will not open one on a house that is already for sale. Open it first or skip it.
What Happens When the Old Home Sells?
Sale proceeds become cash. Cash is a strong asset. But it has to season.
On the qualifier path, expect the 60-day 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 depletion-path seasoning. A home sale is not on that list, so expect questions about fresh proceeds.
Do not count the same dollars twice. The down payment, closing costs and any reserves come out of the pool before it carries the loan. Selling a home can also have tax consequences. Tax treatment varies; consult a qualified professional.
Pennsylvania Contracts: Where the Seller Holds the Cards
The loan program is only half of buying before selling. The agreement of sale is the other half.
The Pennsylvania Association of Realtors publishes the standard forms. One makes the purchase contingent on your closing on your own property. Another, the sale and settlement contingency addendum, makes it contingent on selling and settling. A third lets the seller keep marketing the property while your contingency is pending.
Here is the catch. As the Pennsylvania Association of Realtors explains in its guide to these contingencies, none of these forms gives the buyer a right to terminate if the old property does not sell. Only the seller can terminate. The contingency also does not stretch the closing date. The association’s settlement-date commentary describes the date in the standard agreement as a drop-dead date. If your property is unsold by then, the agreement becomes void and the deposit is returned.
So a contingency costs you leverage and does not buy you much safety. An approval that does not hinge on the old home’s sale lets you write the offer without one, which many sellers prefer.
A Walk-Through Scenario
Run the numbers on an early-retired professional in Pennsylvania who is under 59½. Documented income is thin. Balances are not. She holds the brokerage, 401(k) and savings accounts from the qualifier example above, together counting $800,000 of usable assets against an $800,000 loan.
She chooses the qualifier path. The loan is a purchase at up to 80% loan-to-value on a primary residence, so it fits the program’s ceiling. Her credit clears the 600 floor, and the accounts have two months of statements and 60 days of seasoning.
She writes a contingency-free offer. The old home is listed afterward, or already on the market. If it sells, proceeds season into cash. If it does not, she carries two properties on assets she already counted, not on a sale that has not happened. She still needs enough liquid cash outside the pool to carry the old home comfortably.
That last point is where files go wrong. The loan qualification is only half the plan. The other half is cash flow while the old home sits.
Asset Qualifier vs. Bridge Loan, HELOC, Contingent Offer
Each option solves a different piece of the timing gap. These are those products’ general characteristics, not this program’s rules.
| Option | Best fit | Main risk |
|---|---|---|
| Asset qualifier mortgage | Large balances, thin documented income | Pool shrinks after down payment |
| Bridge loan | Strong equity, need cash at purchase | Extra payment, fixed term |
| HELOC | Equity plus time before listing | Often unavailable once listed |
| Contingent offer | Buyer in a soft market | Seller holds the leverage |
| Carry two payments | Deep reserves, no new product | Cash drain if sale drags on |
A bridge loan can remove the need for a contingency. But if the old home does not sell within the term, you can end up carrying three obligations at once. An asset-based approval does not add a third payment. It does ask you to hold the assets.
Many borrowers combine tools. An asset qualifier approval, plus a cash cushion, plus a firm listing plan, is a sturdier structure than any one piece.
Where the Rule Breaks
You are buying a rental. Asset-based loans are consumer mortgages. Investment property is allowed only on the depletion path, at up to 65% on a purchase or rate-and-term refinance and 60% on a cash-out. A first-time investor on the depletion path needs a 700 score. If the goal is a pure rental, a DSCR loan usually fits better because it qualifies primarily on property-level rental income covering the payment, subject to lender guidelines. The complete DSCR loans guide explains the difference.
Your wealth is in the wrong place. Crypto, collectibles, business accounts and borrowed funds do not count at a percentage. Convert to seasoned cash if you want them in the pool.
Your assets do not meet the depletion minimums. On that path, qualified assets must be at least the lesser of $1,000,000 or 1.25 times the loan, and never below $250,000 liquid when assets are the only income source. Asset-derived income can supplement documented income up to a 45% debt-to-income ratio, and then the minimum-assets rule is waived.
Your credit history has a recent event. Multiple bankruptcies are not eligible. A housing event needs four years of seasoning on the depletion path.
You want cash out. Cash-out proceeds never count as qualifying assets on the depletion path, and the qualifier path’s cash-out terms are set by the lender and not published.
You are in another state. Program figures do not change by state. This article is written for Pennsylvania borrowers.
Risks and Exit Plan
The biggest risk is not the loan. It is the old house sitting.
Build an exit plan before you write the offer. Decide how many months of the old home’s payments you can carry from liquid cash outside the qualifying pool. Decide what price cut you will take if showings dry up. Decide whether you would rent it out.
Also remember that the pool shrinks. A bigger down payment means fewer assets carrying the loan. Run the numbers on two or three purchase prices, not one. And asset-based pricing generally runs higher than agency loans, so compare the full terms on the disclosures you receive.
Sequence and Document Checklist
Order matters. Work in this sequence:
1. Gather statements for every account you might count.
2. Check each balance against the credit percentages for your path.
3. Confirm which assets must stay seasoned and which have to move.
4. Open any HELOC before listing, if you want one.
5. Get the lender’s review before you write the offer.
6. Write the agreement of sale without a sale contingency, or with a Pennsylvania addendum if you need one.
7. List the old home, keeping statements current.
Documents to have ready:
- Statements for each qualifying account (two months on the qualifier path)
- Proof of the source of large deposits
- Credit authorization and housing history
- Details on the old home’s mortgage and listing status
- A contract for the new home
Why Lenders Can Rely on Assets
Federal ability-to-repay rules explicitly let lenders look at assets. Regulation Z’s ability-to-repay provision lists current or reasonably expected income or assets as a factor. It also requires the lender to verify what it relies on with third-party records. The CFPB’s small-entity compliance guide describes eight underwriting factors, and assets are one of them. So no income documented does not mean no review. It means the review rests on the assets.
Key Terms Defined
Asset qualifier: A path where eligible assets, after credit percentages, equal or exceed the whole loan, and no income is documented.
Asset depletion: A path that divides usable assets by 60 months to create qualifying income for the debt-to-income test.
Seasoning: The time funds must sit in an account before the lender counts them.
Sale contingency: A clause making your purchase depend on selling your current home. In Pennsylvania, it favors the seller.
Debt-to-income ratio: Your monthly debts divided by your monthly income, including derived income on the depletion path.
Frequently Asked Questions
Can I use an asset qualifier mortgage to buy before my Pennsylvania home sells?
Often, yes, if your eligible assets cover the whole loan, subject to underwriting. The qualifier path documents no employment or income, so the old home’s sale is not part of the approval. You still need the assets, the seasoning, and enough cash to carry the old home.
Does my old home’s equity count as an asset?
Not on the qualifier path, where real-estate equity is not an eligible asset type. On the depletion path it counts at 60%, subject to underwriting. Cash-out proceeds never count as qualifying assets on that path.
Will I be asked for no documents at all?
No. Income and employment are not documented on the qualifier path, but your assets are. Expect statements for each qualifying account, source review for large deposits, and a credit review.
Do I have to sell my investments to qualify?
No. The lender counts your assets; it does not sell them. They stay invested. The depletion path’s 60-month division is a qualifying convention, not a withdrawal plan.
What if the old home does not sell?
You keep both properties, and the new loan was approved without relying on the sale. That is the point of the structure. But you carry two obligations from your own cash, so a reserve plan matters.
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.
Pennsylvania sellers tend to hold the contract leverage, and a buyer whose approval does not hinge on a sale walks into negotiations with that leverage largely neutralized.
For current guidelines and terms, see Lendmire’s asset-based mortgage programs page.
Lendmire’s asset-based mortgage in Pennsylvania page presents the program for Pennsylvania 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 tax returns understate 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. Pennsylvania Association of Realtors, Form SSP
3. parealtors.org: Sale and Settlement Contingencies Explained
4. Pennsylvania Association of Realtors, Settlement Date: What Settlement Date?
5. Cornell LII, 12 CFR 1026.43
6. CFPB ATR/QM Small Entity 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 a Snowbird · How a Margin Balance Is Treated on an Asset Depletion Mortgage · Is an Asset Qualifier Mortgage Harder to Get Than an Asset Depletion Loan?
Guides: Asset-Based Mortgage in Pennsylvania
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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- Lendmire LLC · Firm NMLS# 2371349 · Verify firm licensure
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.