The Quick Read: Yes, through an asset-based consumer mortgage placed with select lenders: either your eligible assets cover the entire loan and no employment or income is documented, or your assets are divided over 60 months into qualifying income that runs through a debt-to-income test, subject to underwriting. A DSCR loan is the wrong tool for a home you will use yourself. Which path fits depends on how much you hold, what the assets are, and how you plan to use the house.
- Asset qualifier path: eligible assets must equal or exceed the whole loan, with up to 80% loan-to-value on a purchase of a second home.
- Asset depletion path: usable assets divided by 60 months become monthly income, with up to 80% on a second-home purchase.
- Assets are always documented. Skipping income paperwork never means skipping paperwork.
- DSCR is for rentals you do not occupy. It is reviewed on the property’s rent, not on your assets or your income.
What “Assets Instead of Income” Actually Means
Asset-based qualifying means the lender looks at what you own instead of what you earn. The loan is still a regular consumer mortgage on a home you will use. The lender still checks that you can repay it. The difference is the evidence.
Many people searching this are cash-rich and income-light. Think of a retiree living on a portfolio, someone who just sold a business, or a household that received an inheritance or a legal settlement. Another example is an early-retired professional whose paycheck stopped years before the savings did. Their balances are large, but a tax return shows little.
Georgia does not change the program math. The same figures apply whether the house sits in the north Georgia mountains, on a lake, or on the coast. Lendmire’s consumer mortgage lending is licensed in 16 states, Georgia among them, and Lendmire acts as the broker. It arranges these loans through select lenders in its network and does not lend directly.
One rule governs everything below: a borrower is qualified on one path at a time. The two paths use different asset percentages and different leverage. Never mix their numbers.
Path One: Assets Cover the Whole Loan
On the asset qualifier path, your eligible assets, after the credit percentages below, must equal or exceed the entire loan amount. No employment or income is documented. The lender’s ability-to-repay review rests on the assets themselves.
Here is how the balances count on this path, through select programs:
- Brokerage accounts, certificates of deposit, money market and savings count at 100%.
- A 401(k) or IRA counts at 90% if you are under age 59½ and at 100% at 59½ or older.
- Accounts combine, so you can add them together.
Take an illustrative file. The loan is $800,000. You hold $330,000 in brokerage accounts, which counts at 100%, or $330,000. You hold $300,000 in a 401(k) while under 59½, which counts at 90%, or $270,000. You hold $200,000 in savings, which counts at 100%, or $200,000. That adds up to $800,000 of usable assets, and the file is reviewed on assets alone. The lender’s own calculation governs the real file.
Leverage on this path runs up to 80% on a purchase and up to 75% on a refinance, for a principal residence or second home. Loans go up to $4,000,000. The credit floor is a 600 score, with a clean recent housing history (0x30x12). One 30-day late in the last twelve months is considered case by case. Reserves are not required at or below 75% loan-to-value. Above that, the lender sets them.
Seasoning is the waiting period assets must sit in your accounts. On this path, the requirement is 60 days of seasoning and two months of statements for each qualifying account.
Path Two: Assets Become Income
On the asset depletion path, the lender converts your usable assets into monthly income. It divides them by 60 months. That income must then carry the full housing payment and your other debts through the debt-to-income test. Debt-to-income is the share of your monthly income that goes to debt payments.
Here is the illustrative shape. You hold $1,500,000 in securities, counted at 80%, or $1,200,000. You also hold $300,000 in cash, counted at 100%. That is $1,500,000 usable, and divided by 60 months it becomes $25,000 of monthly qualifying income. That income then has to carry the new housing payment and every other debt. Again, the lender’s calculation governs.
This path has its own limits:
- Leverage: up to 80% on a purchase or rate-and-term refinance of a second home, and 60% on a cash-out refinance of a second home.
- Loan amounts: $125,000 to $3,500,000.
- Credit: the lender’s score-and-loan-amount matrix applies. A first-time investor needs a 700 score.
- Minimum assets: the lesser of $1,000,000 or 1.25 times the loan balance. When assets are your only income source, never less than $250,000 liquid.
- Documented income: if you have some, asset income can supplement it up to a 45% debt-to-income ratio. When it supplements, the minimum-assets rule is waived.
Statements must be at least 120 days old at application, plus the most recent statement within 45 days. Funds from the sale of a business, an inheritance, or a legal settlement are excused from that seasoning. A housing event, such as a foreclosure, needs 4 years of seasoning on this path. Multiple bankruptcies are not eligible.
Depletion is also the only path of the two that covers investment property. Leverage there is lower: up to 65% on a purchase or rate-and-term refinance and 60% on a cash-out.
Which Assets Count, and How Much?
Different assets count at different percentages, and the two paths use different tables. Use this side-by-side to see where your balances land.
| Asset | Qualifier path | Depletion path |
|---|---|---|
| Cash, 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 assets are not eligible on the depletion path. These include 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.
Cryptocurrency, precious metals, collectibles, and pledged or borrowed funds are not published as eligible on either path. Business accounts count only for your ownership share. The documented route for these holdings is to convert them into a seasoned cash balance in a regulated account, with the source reviewed by the lender. Do not count on a percentage for them.
Retirement accounts deserve one more note. On the depletion path, a 401(k) counts at 70% at any age. On the qualifier path, the same balance counts at 90% or 100% depending on your age. A borrower over 59½ with large retirement balances often fits the qualifier path better.
Second Home or Investment Property? Your Use Decides
Your occupancy plan decides the loan before anything else does. A second home is a house you will live in for part of the year. An investment property is one you rent out and do not occupy.
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. They qualify primarily on property-level rental income covering the payment, subject to lender guidelines. Your personal income and your asset balances are not the test. That is the reason DSCR does not fit a home you plan to use.
The government draws a clear line. Under the CFPB’s Regulation Z commentary, a rental you do not occupy is treated as business-purpose credit. If you expect to occupy the property for more than 14 days in the coming year, it cannot be treated as non-owner-occupied. The commentary’s own example is a beach house the owner will use for a month in the summer.
Georgia has plenty of beach-house and lake-house buyers, so this matters. Use the house more than 14 days and the DSCR route generally closes to you, since the property can no longer be treated as non-owner-occupied.
The conventional world has its own definition. Fannie Mae’s Selling Guide describes a second home as a one-unit dwelling the borrower occupies for some part of the year, suitable for year-round use, under the borrower’s exclusive control. That is agency contrast only. It does not govern the asset-based programs here.
Renting also changes how a lender sees the home. NerdWallet notes that a lender is likely to treat a property as an investment if you rent it year-round or use the rent to qualify. Naming the house an investment, or putting it in an LLC, does not change how it is used.
| Your plan | Loan path |
|---|---|
| You use the home part of the year, no regular rental | Asset-based second-home loan (either path) |
| Rented to others, you never stay | DSCR loan, or asset depletion on an investment property |
| Mixed use: vacation home that also rents | Pick one purpose; personal use points to a second-home loan |
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.
Where Asset-Based Qualifying Fits Among Your Other Options
The best loan depends on what you own and what you want to keep. Here is the honest comparison:
| Option | How it works | Best fit |
|---|---|---|
| Paying cash | No loan, but a large share of liquidity leaves | You want zero debt and still hold plenty of cash |
| HELOC or cash-out on your main home | Borrows against your primary residence | You have equity and documented income |
| Bank statement loan | Income documented through deposits | Self-employed buyers with steady deposits |
| DSCR loan | Property rent drives lender review | Pure rentals you will not occupy |
| Asset-based mortgage | Assets qualify the loan or become income | Large balances, light documented income |
Each comparison describes that product’s own rules, not this program’s. A bank statement loan is for borrowers who document income through deposits. A HELOC puts a lien on the home you already own.
Asset-based qualifying does not require you to liquidate your portfolio. Your balances stay invested. You do still need cash for the down payment and closing costs, so ask the lender early how funds to close are treated. Do not count the same dollars twice. Selling investments to fund a purchase can have tax consequences, so tax treatment varies and a qualified professional can help.
This approach is not a fit for everyone, and a few situations call for caution.
- Your cushion is thin. If the qualifying balance barely clears the minimum, one market dip could change the picture.
- Most of your wealth is in securities. Haircuts exist because values move. Brokerage balances count less on the depletion path for that reason.
- Your assets are hard to document. Crypto, collectibles, or pledged funds need conversion first.
- Your credit is weak. Asset-based loans still have credit floors, and a recent housing event can extend the wait.
- You expect to rent the house regularly. A year-round rental changes the loan type.
Lendmire sees one pattern across files like these. Borrowers often arrive thinking their assets alone settle the question. In practice, the deciding items are usually seasoning, account titling, and whether the balance after closing still meets the program minimum. Fixing those before applying matters more than finding a different lender.
What to Gather Before You Apply
Asset-based loans are documented loans. The paperwork covers assets instead of pay stubs. A typical set includes:
1. Two months of statements for each qualifying account on the qualifier path. 2. On the depletion path, statements at least 120 days old plus the most recent one within 45 days. 3. Written sourcing for any large recent deposit. 4. Sale, inheritance, or settlement paperwork if those funds are part of the balance. 5. A credit authorization and the purchase contract.
If a sale or windfall is the source of your balance, Lendmire’s piece How to Buy a Second Vacation Home on Post-Liquidity Event Assets covers that situation.
If the property will be a pure rental, Lendmire’s complete DSCR loans guide explains how rent-based qualifying works.
Common Mistakes
Assuming no income documentation means no documentation. Assets are verified on both paths.
Treating DSCR as a second-home shortcut. A DSCR loan needs a non-owner-occupied rental.
Letting a lender-friendly label stand in for use. Occupancy is judged on how you actually use the house, not what the file calls it.
Counting the same money for two jobs. The balance that qualifies you and the cash that closes the deal need to be planned together.
Mixing the paths. Percentages and leverage differ, so keep each calculation on its own path.
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. All programs run through select lenders, are subject to underwriting, and are not a commitment to lend. You can reach Lendmire at 828-256-2183.
Key Terms Defined
Asset qualifier path: a program where eligible assets must equal or exceed the whole loan, and no income is documented.
Asset depletion path: a program where usable assets divided by 60 months become qualifying monthly income.
Haircut: the share of an asset’s balance the lender will not count, because its value can move or access has limits.
Seasoning: how long funds must sit in your accounts before they count.
Debt-to-income (DTI): the share of your monthly income that goes to debt payments.
DSCR loan: a business-purpose loan on a rental property that qualifies primarily on the property’s rent covering its payment.
Frequently Asked Questions
Can I use my 401(k) or IRA to qualify?
Yes. On the qualifier path, retirement balances count at 90% under age 59½ and 100% at 59½ or older. On the depletion path they count at 70% at any age. You do not need to withdraw the money. The lender’s calculation governs the file.
Can I rent the house out now and then?
Occasional rental alone does not make it a DSCR property, but your own use does the heavy lifting in the classification. If you will stay more than 14 days a year, it generally cannot be treated as non-owner-occupied. Year-round renting can push the home toward investment-property treatment.
Do I need traditional personal-income documentation or pay stubs?
Not on the qualifier path, where no employment or income is documented. On the depletion path your assets become the income, and the lender tests it against your debts. Assets are documented either way.
Does my current mortgage get ignored?
No. On the depletion path, existing debts run through the debt-to-income test. On the qualifier path, no income is documented, and the lender’s ability-to-repay review rests on your assets.
Will my balance count if it is mostly crypto or collectibles?
Not directly. These 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 reviews the source.
Lendmire’s asset-based mortgage in Georgia page presents the program for Georgia 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. CFPB Regulation Z §1026.3 and commentary
2. Fannie Mae Selling Guide, B2-1.1-01 Occupancy Types
3. NerdWallet second home explainer
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 an Assets-Only Mortgage Works · How to Open a HELOC on Assets Alone With No Paycheck · Dividend Income vs Asset Depletion for a Second Home Jumbo Loan
Guides: Asset-Based Mortgage in Georgia
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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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.