The Quick Read: Yes, an asset-based mortgage can fund a Texas home purchase with no Texas job, no local pay history, and no traditional personal-income documentation, pay stubs or employment verification, because the file is reviewed on documented assets instead, subject to underwriting and the lender’s guidelines. Assets either cover the whole loan or get converted into monthly qualifying income. The path you pick sets your leverage, your seasoning clock and your credit test.
- Asset qualifier path: eligible assets must equal or exceed the entire loan. Leverage runs up to 80% on a purchase and 75% on a refinance of a principal residence or second home, with loans to $4,000,000 and a 600 minimum score.
- Asset depletion path: usable assets are divided by 60 months into qualifying income, which then runs through the debt-to-income test. On a principal residence or second home, leverage runs up to 80% on a purchase or rate-and-term refinance and 60% on a cash-out.
- Assets are documented. Qualifier-path funds need 60 days of seasoning and two months of statements per account.
- A rental is treated differently. A home you plan to live in fits both paths. A pure rental is a business-purpose loan: on the asset-based side it runs only on the depletion path, at lower leverage.
What Does Local Income Mean to an Underwriter?
Local income is three separate things: employment history, current income, and where you live. An asset-based file can lean on none of them. On the asset qualifier path, no employment or income is documented at all. Your balances carry the loan.
Most relocating buyers get stuck on the word income. They picture a Texas employer letter, two years of pay history, a local bank account. None of that is a requirement on either path. What the lender wants is statements from eligible accounts, a credit profile that fits the program, and a property that appraises.
Here’s the catch. The person moving from overseas has a narrower lane. On the asset depletion path, foreign funds are not eligible. If the money sits abroad, the documented route is moving it into a seasoned balance at a regulated account, with the source reviewed by the lender.
The programs here are consumer mortgages, offered in 16 states including Texas. Texas is where the home sits. The program figures do not change by state.
Which Path Fits? Assets Cover the Loan or Assets Become Income
Pick the qualifier path when your balances are large compared to the loan. Pick the depletion path when you want assets converted into a monthly figure, or when you are buying an investment property. A borrower is qualified on one path at a time. The two never blend.
| Factor | Asset qualifier | Asset depletion |
|---|---|---|
| How it qualifies | Assets cover the entire loan | Assets ÷ 60 months = income |
| Income documented | None | Derived from assets, runs through DTI |
| Purchase leverage | Up to 80% (residence, second home) | Up to 80% (residence, second home); 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 | The lender’s matrix |
Those are ceilings, not offers. Every file is underwritten individually. Cash-out on the qualifier path is set by the lender and is not published, so plan around the figures above and ask before you count on it. On the depletion path, cash-out proceeds never count as qualifying assets.
Credit matters on both. The depletion path follows the lender’s score and loan-amount matrix. A first-time investor on that path needs 700. Housing history is typically 0x30x12, and one 30-day late in the last twelve months is considered case by case. Multiple bankruptcies are not eligible. A housing event needs four years of seasoning on the depletion path.
Which one is the stronger play? Honestly, it depends on the size of your portfolio against the loan. A buyer with more than the loan in eligible accounts often finds the qualifier path simpler, since nothing gets converted to income. A buyer whose balances are large but who needs a monthly figure for a mixed file leans the other way.
How Much of Each Account Counts?
Not every dollar counts at face value, and the two paths use different tables. Read the one for your path.
On the asset qualifier path, brokerage accounts, certificates of deposit, money market and savings all count at 100%. A 401(k) or IRA counts at 90% under age 59½ and 100% at 59½ or older. Accounts combine.
Run the numbers on an $800,000 loan. Say you hold $330,000 in brokerage accounts (100% counts as $330,000), $300,000 in a 401(k) under 59½ (90% counts as $270,000) and $200,000 in savings (100% counts as $200,000). That is $800,000 of usable assets. The file can qualify on assets alone, subject to underwriting.
On the asset depletion path, cash and certificates of deposit count at 100%. Securities count at 80%, private stock at 75%, retirement accounts at 70% at any age, and real-estate equity at 60%. Not eligible: 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.
Now a depletion example. Say you hold $1,500,000 in securities (80% counts as $1,200,000) and $300,000 in cash (100% counts as $300,000). That is $1,500,000 usable. Divide by 60 months and you get $25,000 of monthly qualifying income. That income has to carry the housing payment and your other debts through the debt-to-income test. The lender’s own calculation governs.
Depletion has floors. Qualified assets must be at least the lesser of $1,000,000 or 1.25 times the loan balance. When asset depletion is your only income source, you also need at least $250,000 liquid. If asset income only supplements documented income, it can do so up to a 45% debt-to-income ratio, and the minimum-assets rule is waived.
Cryptocurrency, precious metals, collectibles, pledged or borrowed funds, and business accounts beyond your ownership share are not published as eligible on either path. Convert them to cash in a regulated account and let the lender review the source. Skip the plan that counts them at a percentage.
Where Relocation Files Get Stuck: Seasoning and Statements
The friction on a relocation file is almost never the math. It is the paper trail behind the balances. Movers shift money between old and new accounts, close the out-of-state bank, and park a home-sale check somewhere new. Each of those moves can reset a clock.
On the qualifier path, funds need 60 days of seasoning, with two months of statements for each qualifying account. On the depletion path, 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 depletion-path seasoning.
Here is how that plays out. An investor sells a house in another state, wires the proceeds into a new Texas account, and applies. The new account has one statement. The lender wants more. Leave the money where it has history, or document the transfer cleanly with the source and the statements on both ends. Don’t shuffle balances between accounts the month you apply.
Large unexplained deposits invite questions on a statement package. The assets are documented on both paths. That is a different thing from skipping documentation. Plan to explain every deposit that is not obviously a payroll, a transfer between your own accounts, or a sale you can paper.
Sequencing the Move
Start with the statements, not the house. The order below keeps the asset clock running while you look.
1. Inventory your accounts. List every account, its owner, its type and its balance. Mark which are eligible on the path you want.
2. Leave seasoned money where it sits. Hold off on closing accounts or moving balances until the file is underwritten.
3. Pull two months of statements per account. If you are on the depletion path, check that the statements are old enough and that the latest is recent.
4. Convert ineligible holdings early. Crypto, metals and similar assets need to become a seasoned cash balance in a regulated account first.
5. Pick the path. Ask whether your eligible balances cover the loan or whether you need them turned into income.
6. Price the house against your leverage ceiling. Eighty percent on a purchase is a ceiling. Then you shop.
7. Document any sale proceeds. If an old home sale funds the down payment, keep the settlement statement and the deposit record together.
8. Order the appraisal. The appraisal still has to support the price.
Can a Texas Job Offer Help?
Yes, as a supplement. A Texas offer letter is not required, but it can add to a file if you have one. Federal guidance for lenders says income does not have to come from full-time employment or a salary to be considered, and a creditor can also consider future income if it verifies that income with reasonably reliable third-party records. An offer letter or employment contract is the kind of record that guidance has in mind.
On the depletion path, asset-derived income may supplement documented income. When it does, it can run up to a 45% debt-to-income ratio, and the minimum-assets rule is waived. That fits a buyer who is mid-transition. Savings carry part of the load and the new paycheck carries the rest.
What If You Are Buying a Rental Instead?
Rentals run on a different track. Investor loans for non-owner-occupied properties are business-purpose loans, so 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. Credit and liquid assets still matter.
On the asset-based side, investment property is financed only on the depletion path. Leverage there is up to 65% on a purchase or rate-and-term refinance and 60% on a cash-out. Both are ceilings.
The relocation trap is occupancy. Federal commentary says that if an owner expects to occupy the property for more than 14 days during the coming year, it cannot be considered non-owner-occupied. So a buyer who plans to stay in the rental while house-hunting or settling in is no longer buying a rental. If you will live in it, borrow for it as a home. Say so on the application. It is the cleaner file.
A relocating investor can run two tracks. Buy the rental first on property performance, then buy the residence later once Texas income is on paper. How a rental payment is counted in your debt-to-income ratio varies by lender.
Texas Costs That Hit the Qualifying Math
Texas property taxes and insurance feed the housing payment, so they move your debt-to-income ratio on the depletion path. Budget from real quotes on the specific property. Don’t budget from the seller’s old tax bill, since the bill can change after the sale. Taxes and insurance vary by county and by home, and this article gives no Texas figure for either.
If you are buying with a spouse or putting the home in a trust, ask a Texas attorney about titling before you sign. Lenders review the vesting as part of the file.
Buy First, Rent First or Wait? The Routes Side by Side
An asset-based purchase is one of several ways to land in Texas. Here is how they compare for a buyer without local income.
| Route | Fits | Trade-off |
|---|---|---|
| Asset-based purchase | Large balances, no paycheck yet | Assets must be seasoned and eligible |
| Rent first | Unsure of the area | Delays equity and the purchase |
| Sell old home first | Equity tied up elsewhere | Proceeds must be documented |
| Add a co-borrower | Spouse or partner has income | Their credit and income join the file |
| Wait for a Texas job | Employment is close | Pay history takes time to build |
The best route depends on whether the money you will use is already seasoned. If it is, buying first on assets is realistic. If it is landing next month, rent while the statements age.
If you borrow against a portfolio, remember that the lender’s rules, not your plans, set what the assets are worth. A sale of securities may have tax consequences. Tax treatment varies; consult a qualified professional.
Risks and When It Is Not the Right Fit
Asset-based files carry real risk, and the borrower should price it in.
- Market drops. Securities count at 80% on the depletion path. If the market falls between application and closing, your usable balance falls with it.
- Payments come out of the portfolio. If the paycheck never arrives, your balances are the payment. Size the loan so a bad year doesn’t force a sale.
- Credit below the floor. A score under 600 is out on the qualifier path, and the depletion path follows the lender’s matrix.
- Not enough eligible assets. On depletion, the minimum is the lesser of $1,000,000 or 1.25 times the loan balance, and never below $250,000 liquid as the only income source.
- Unsettled paper trail. An account without statements history, or deposits you can’t source, drags the file.
On the qualifier path, no reserves are required at or below 75% loan-to-value. Above that, the lender sets them. The depletion path publishes no reserve months. Reserves and down payment are still separate. The lender’s calculation decides how down payment and closing costs come out of your usable pool, so don’t count one dollar twice.
(If your balances are mostly illiquid, this is the wrong product. A different program may fit better.)
Key Terms Defined
Asset qualifier: A path where eligible assets, after credit percentages, must equal or exceed the whole loan, and no income is documented.
Asset depletion: A path that divides usable assets by 60 months to create monthly qualifying income.
Seasoning: The period funds must sit in an account before they count.
Usable assets: The share of each balance a program counts after its haircut.
Debt-to-income test: The comparison of your housing payment and other debts to qualifying income.
Business-purpose loan: Credit taken for a rental or other investment property rather than a home you live in.
Documents to Have Ready
- Government ID
- Credit authorization
- Statements for every qualifying account, two months each on the qualifier path and aged per the depletion rules
- The purchase contract
- Source records for any large deposit, such as a home-sale settlement statement
- A Texas job offer letter or contract, if you want it considered as supplemental income
- The appraisal, ordered through the lender
Where to Start
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 programs based on your statements, the property, credit profile, leverage, and your goals. Reach the team at 828-256-2183.
Frequently Asked Questions
Do I need a Texas job or a Texas bank account to qualify?
No. Neither path asks for a Texas employer or a Texas account. The asset qualifier path documents no employment or income, and the depletion path derives income from your assets. What the lender needs is statements from eligible accounts, credit that fits the program, and an appraised property. Everything is subject to underwriting.
Do I have to sell my investments to buy?
No. Assets are counted at the percentages the program sets, but you do not have to liquidate them to qualify. The depletion path converts them to income on paper. The qualifier path counts their balance toward the loan amount. What you use for the down payment is a separate question and depends on which accounts hold the cash.
Can retirement accounts count?
Yes. On the qualifier path, 401(k) and IRA balances count at 90% under age 59½ and 100% at 59½ or older. On the depletion path, retirement accounts count at 70% at any age. The two tables never blend.
Can I buy a second home or an investment property this way?
A second home is reviewed on both paths. Investment property qualifies only on the depletion path, with leverage up to 65% on a purchase or rate-and-term refinance and 60% on a cash-out. A property you will live in for more than 14 days a year is not treated as a rental. Leverage, reserves, and pricing vary by lender and program; the final terms follow the full file review.
What if my money is overseas or in crypto?
Foreign funds are not eligible on the depletion path. Crypto is not published as eligible on either path. The documented route is converting it to a seasoned cash balance in a regulated account, with the source reviewed by the lender.
Lendmire’s asset-based mortgage in Texas page presents the program for Texas 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.
Get Started
Ready to find the right loan for you?
In about 30 seconds you can review financing options available for your home or investment property. No commitment required.
Informational only. Not a Loan Estimate, approval, or commitment to lend. Program availability and eligibility are subject to lender guidelines, credit approval, property review, and underwriting.
References
1. CFPB ATR/QM small entity compliance guide
2. CFPB Regulation Z 1026.3 and commentary
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 a Michigan Snowbird Buy a Winter Home on Savings Alone? · Can a Texas Snowbird Buy a Winter Home on Savings Alone? · Can a Pennsylvania Snowbird Buy a Winter Home on Savings Alone?
Guides: Asset-Based Mortgage in Texas
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
- Mortgage Loan Originator · NMLS# 1129696 · Verify on NMLS Consumer Access
- North Carolina Real Estate Broker · License# 343312 · Verify on NCREC
- North Carolina Insurance Producer · License# 19053198 · Property, Casualty, Life, Health · Verify on NAIC SBS
- 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.