The Quick Read: Your $1 million sets your loan size through your assets, not through a paycheck formula, and the path you choose decides how. On the asset qualifier path, the loan can be as large as your usable assets, up to program limits, and your price rises with the cash you add for the down payment. On the asset depletion path, your assets are converted into monthly income instead, and that income has to carry the payment. Both paths are subject to underwriting.
- Path one, assets cover the loan. Your eligible assets, after the credit percentages, must equal or exceed the entire loan. No employment or income is documented.
- Path two, assets become income. Usable assets are divided by 60 months, and the result runs through a debt-to-income test.
- The assets are still documented. Statements, seasoning and a credit review all apply.
- A rental purchase is a different loan. A DSCR loan for a non-owner-occupied rental qualifies primarily on property-level rental income covering the payment, subject to lender guidelines.
- This is the U.S. state. It is not the country of Mexico, and the program figures below do not change by state.
Key Terms Defined
Six terms come up repeatedly below, so here they are in plain words.
- Asset qualifier: a loan approved because your eligible assets are at least as large as the whole loan amount.
- Asset depletion: a method that turns a pool of assets into an imagined monthly paycheck for qualifying purposes.
- Qualifying income: the monthly income a lender is allowed to count when it tests whether you can carry the payment.
- LTV (loan-to-value): the loan amount as a percentage of the home’s price or appraised value.
- Seasoning: how long money must sit in your account before a lender counts it.
- DSCR: the monthly rent a rental property earns, divided by its full monthly obligation of principal, interest, taxes, insurance and association dues.
Which Path Fits a Cash-Rich, Income-Light Buyer?
If your balances are large and your documented income is small, you have two main options. Lendmire arranges asset-based mortgage programs for New Mexico borrowers through select lenders in its wholesale network, and its consumer mortgage lending is licensed in 16 states, New Mexico among them.
Lendmire is a broker, not the lender. The lender reviews each file on its own merits. Here is how the two paths compare on the figures that matter most.
| Factor | Asset qualifier | Asset depletion |
|---|---|---|
| Core test | Usable assets cover the whole loan | Assets ÷ 60 months, then DTI test |
| Home purchase LTV | Up to 80% | Up to 80% |
| Investment property | Not offered | Up to 65% on purchase |
| Refinance LTV | Up to 75% | 80% rate-and-term, 60% cash-out (homes) |
| Loan amount | Up to $4,000,000 | $125,000 to $3,500,000 |
| Credit | 600 minimum | The lender’s matrix |
A borrower is qualified on one path at a time. You cannot blend the two tables. Every figure above is a ceiling or floor under select programs, never an offer, and it is subject to underwriting.
The qualifier path suits retirees, business sellers and anyone sitting on a settlement or inheritance who wants the loan sized to their balances. The depletion path suits people who want to count their portfolio as income, often because they also hold some documented income to add.
How Far Does $1 Million Actually Go?
A million in assets does not become a million-dollar house by formula. Two limits apply at once, and the lower one wins. One is the loan your assets can support. The other is the cash you need for the down payment, closing costs and whatever cushion you want left over.
On the asset qualifier path
The test is simple. After the credit percentages, your eligible assets must equal or exceed the entire loan amount. A purchase can go up to 80% LTV, and a refinance up to 75% LTV, both on a principal residence or second home. Exact terms depend on the lender’s guidelines, property type, leverage, and a full review of the borrower’s file.
Here is the shape of the math. Take an $800,000 loan. You hold $330,000 in brokerage accounts, which count at 100%. You hold $300,000 in a 401(k) while under age 59½, which counts at 90% for $270,000. You hold $200,000 in savings, which counts at 100%. That adds up to $800,000 of usable assets, so the file is reviewed on assets alone.
The lender’s own calculation governs. The example only shows the mechanics.
Cash you spend on the down payment and closing costs leaves your account. Money that has left generally cannot be counted again as qualifying assets. This is the tradeoff most buyers miss. The more you put down, the fewer assets remain to cover the loan.
Reserves are light on this path. None are required at or below 75% LTV, and above that the lender sets them. Credit still matters, with a 600 minimum score. Housing history of 0x30x12 is expected, and one 30-day late in the last twelve months is considered case by case. Every figure here varies by lender and program: guidelines, property type, leverage, and credit profile all apply.
On the asset depletion path
This path works like a paycheck simulator. Usable assets divided by 60 months become your monthly qualifying income. That income then has to carry the full housing payment and your other debts through the debt-to-income test.
Take $1,500,000 in securities. At 80%, that counts for $1,200,000. Add $300,000 in cash at 100%. Your usable assets are $1,500,000. Divide by 60 months and you get $25,000 of monthly qualifying income.
The depletion path has minimums that a portfolio can trip over. Qualified assets must be at least the lesser of $1,000,000 or 1.25 times the loan balance. They must also be at least $250,000 in liquid form when depletion is your only income source. A million in securities counts at 80%, which can fall short of the $1,000,000 floor unless 1.25 times the loan is lower. A million held in cash and CDs counts in full.
On this path, a home can reach up to 80% LTV on a purchase or rate-and-term refinance and 60% LTV on a cash-out refinance. An investment property tops out at 65% LTV on a purchase or rate-and-term refinance and 60% on a cash-out. Cash-out proceeds never count as qualifying assets. A first-time investor needs a 700 score on this path. Final terms depend on lender guidelines, property type, leverage, and the borrower’s complete credit picture.
Asset-derived income can also supplement documented income, up to a 45% debt-to-income ratio. When it supplements, the minimum-assets rule is waived.
Which Assets Count, and How Much?
Your account types matter as much as your balance. The same million can count for very different amounts depending on where it sits.
| Asset | Qualifier path | Depletion path |
|---|---|---|
| Brokerage accounts | 100% | Securities at 80% |
| Cash, savings, money market | 100% | Cash accounts at 100% |
| Certificates of deposit | 100% | 100% |
| 401(k) and IRA | 90% under 59½, 100% after | 70% at any age |
| Privately held company stock | Not eligible | Not eligible |
| Real-estate equity | Not listed | 60% |
Privately held company stock is not an eligible asset on either path. A founder’s route is documented liquid assets, such as seasoned proceeds from a sale, cash, public securities and retirement accounts at their percentages.
On the depletion path, some assets are not eligible at all. They 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. The documented route is converting them into a seasoned cash balance in a regulated account, with the lender reviewing the source. Do not count on them at any percentage.
Seasoning is where cash-heavy buyers get caught. The qualifier path wants 60 days of seasoning and two months of statements for each qualifying account. The depletion path wants statements 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 on the depletion path.
Lack of income documentation does not mean lack of documentation. Your assets are verified on both paths.
What Does That Buy in New Mexico?
Price levels differ widely across the state, so the same cash buys very different homes. The New Mexico Association of Realtors reports a statewide median sold price of $352,450, with Bernalillo County at $365,000, Sandoval County at $424,430 and Santa Fe County at $622,200, per the association’s monthly statistics. Redfin places the state median a bit higher at $361,495, reflecting a different method.
| Area | Median sold price |
|---|---|
| Statewide | $352,450 |
| Bernalillo County | $365,000 |
| Sandoval County | $424,430 |
| Santa Fe County | $622,200 |
These are medians, not ceilings. With these price levels, a $1 million portfolio paired with the right down payment can reach well past the median in most counties. The binding limit is usually the cash you are willing to commit, not the loan the assets support. Budget for taxes and insurance too, which vary by county.
What If You’re Buying a Rental, Not a Home?
An investor with no paycheck has a third route. 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.
That distinction comes from federal rules. The CFPB’s commentary on exempt transactions treats credit to acquire non-owner-occupied rental property as business-purpose. The same commentary says the property stops qualifying if you expect to occupy it more than 14 days in the coming year. A beach house you use for a month is the example it gives.
A DSCR loan is reviewed for the deal rather than your paycheck. The lender divides the property’s monthly rent by its full monthly obligation. Rent that clears roughly 1.2x leaves a comfortable cushion. A property at or below 1.0x is tighter. Some select lenders in the network will review sub-1.00 coverage, but leverage and terms adjust when they do.
Your million still works for you here, though not as qualifying income. It funds the down payment, shows reserves and lets you stack more than one property. Each added loan draws from the same pool, so reserves are measured per loan. Credit is still reviewed, and the appraisal sets both value and market rent.
On a vacant purchase, appraised market rent is the only rent figure used. With a tenant in place, underwriters typically take the lower of the lease rent and market rent. Rent coverage and your cash are the two ceilings on the price.
DSCR and depletion are different products. DSCR qualifies the property; depletion turns assets into qualifying income.
One more caution. The federal rule looks at what the loan is for, not what the property is called. A flip or raw land is not automatically exempt. If you will live in a 1–4 unit property, consumer ability-to-repay rules apply, per the CFPB’s compliance guide.
Should You Spend the Million or Keep It Working?
Honestly, this is a genuine toss-up for many borrowers. Paying cash gives you the simplest ownership and no monthly obligation. Borrowing against your assets keeps your money invested and liquid, but adds a monthly obligation you must carry without a paycheck.
Here is how practitioners usually weigh it. A retiree living on a portfolio often prefers borrowing, because selling investments can trigger costs and shrinks future income. A business seller with a one-time windfall may prefer a bigger down payment to keep the loan small. An investor stacking rentals usually borrows, because each deal must pencil on rent and cash is the scarce resource.
Across a wholesale network, the pattern is consistent. Files with plenty of assets but thin seasoning stall more often than files with modest assets and clean statements. Moving cash into a regulated account early, then leaving it alone, prevents most of the delays.
Common Mistakes
- Counting the down payment twice. The same dollar cannot fund the purchase and qualify the loan.
- Assuming every asset counts at 100%. Retirement balances, securities and equity are discounted.
- Ignoring seasoning. Recent deposits can be questioned, and the depletion path wants older statements.
- Mixing up the paths. Qualifier and depletion rules differ, and you are on one at a time.
- Treating a rental like a home. A property you occupy does not qualify as a DSCR investment loan.
- Skipping the tax conversation. Tax treatment varies; consult a qualified professional.
Frequently Asked Questions
Can I buy a house in New Mexico with no job?
Yes, through select programs. The asset qualifier path documents no employment or income, and approval rests on your assets and credit. The lender still reviews your statements, credit and the property, so approval is never guaranteed.
Do I have to sell my investments to buy?
Not necessarily. Brokerage balances count at 100% on the qualifier path and at 80% for securities on the depletion path. You qualify with the assets in place. You only liquidate what you choose to put toward the down payment and closing costs.
Do retirement accounts count?
Yes, at a discount. On the qualifier path they count at 90% under age 59½ and 100% at 59½ or older. On the depletion path they count at 70% at any age. Terms are subject to underwriting.
What credit score do I need?
The qualifier path has a 600 minimum. The depletion path follows the lender’s matrix, and a first-time investor needs 700 there. A housing history of 0x30x12 is expected, and multiple bankruptcies are not eligible.
What changes if I put more down?
Your loan shrinks, but your leftover assets shrink too. On the qualifier path, the remaining assets must still cover the loan. That means a larger down payment can help the price but erode the cushion you are qualifying on.
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. Programs change and every file is underwritten individually, so this is not a commitment to lend. Whatever the paths show, New Mexico’s price spread from Bernalillo to Santa Fe means your region will shape your result as much as your balance does.
Lendmire’s asset-based mortgage in New Mexico page 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. New Mexico Association of Realtors monthly housing statistics, via Los Alamos Daily Post
2. Redfin New Mexico housing market
3. CFPB Regulation Z commentary on exempt transactions
4. CFPB ability-to-repay and qualified mortgage 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: Can You Buy a Second Home in Alabama on Assets Instead of Income? · Can an Inheritance Qualify You for a New Mexico Mortgage Before It Is Seasoned? · Can a New Mexico Buyer Get a Mortgage After Paying Cash for a House With No Income?
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.