The Quick Read: You qualify on assets by choosing one of two paths. Either your eligible savings and investments cover the whole loan, or they are converted into monthly qualifying income that carries the payment. Both paths run through select programs and are subject to underwriting. Neither skips documents. You document your assets with statements instead of documenting a paycheck.
- Assets-cover-the-loan path: eligible balances, after the credit percentages, must equal or exceed the entire loan. You document no employment or income. You provide no traditional personal-income documentation, pay stubs or employment verification.
- Assets-become-income path: usable assets divided by 60 months become monthly qualifying income. That income then runs through the debt-to-income test.
- Leverage: up to 80% on a purchase on the first path. On the second path, up to 80% on a primary residence or second-home purchase, and 65% on an investment-property purchase.
- Borrower fit: retirees, business sellers, inheritance or settlement recipients, early-retired professionals, and anyone living on a portfolio.
- Indiana: the program figures do not change by state, and Indiana is one of the 16 states where Lendmire’s consumer mortgage lending is licensed.
Which Path Fits You?
Pick the path by looking at what you hold. If your assets could pay off the loan outright, use the first path. If your assets are large but you want them to behave like a paycheck, use the second. You are qualified on one path at a time, never a blend of both.
| Your situation | Likely path |
|---|---|
| Balances exceed the whole loan amount | Assets cover the loan |
| Large portfolio, loan is a fraction of it | Assets become income |
| Some documented income, a bit short on ratio | Assets supplement income |
| Strong deposits but irregular business income | Bank statement loan, a different program |
| Buying a rental that rents well | DSCR loan, a different program |
Lendmire is a mortgage broker. It arranges these asset-based loans through select lenders in its network, and the lender underwrites and decides. The details of the asset-based mortgage programs are on the program page. Everything below explains how a file on assets actually gets built.
Key Terms Defined
Asset qualifier path: the route where eligible assets, after credit percentages, must equal or exceed the entire loan amount.
Asset depletion path: the route where eligible assets are divided by 60 months to create monthly qualifying income.
Haircut: the discount applied to an asset type, so only part of the balance counts.
Seasoning: the time funds must sit in your account before the lender trusts them as yours.
Debt-to-income (DTI): your monthly debts, including the new housing payment, compared with your monthly qualifying income.
Non-QM: a loan written to an investor’s own guidelines instead of the standard agency box.
How Underwriting Treats Assets, Step by Step
An underwriter asks three questions about your money. Is it there, is it yours, and did it just appear? Everything on the file exists to answer those.
1. You choose a path. The lender reviews one path per file.
2. You supply statements. Each qualifying account needs statements showing balances and ownership.
3. The lender applies the credit percentages. A balance counts in full or in part depending on the asset type and the path.
4. The lender checks seasoning. Funds must have sat long enough, or the source must be documented.
5. The lender reviews credit and housing history. Assets do not replace credit.
6. The lender compares usable assets to the loan. On the qualifier path, they must cover it. On the depletion path, the derived income must carry the debts.
7. The lender issues a pre-approval, subject to underwriting. It is conditioned on the property, the appraisal and the assets staying in place.
Large unsourced deposits, cash deposits and balance jumps close to application draw questions. They do not automatically kill a file. They do mean you should keep funds where they are before you apply.
Path One: Assets Cover the Whole Loan
On the asset qualifier path, your eligible assets must equal or exceed the entire loan. No employment or income is documented. Through select programs, loans run up to $4,000,000, subject to underwriting.
The credit percentages show how much of each balance counts:
| Asset | Share that counts |
|---|---|
| Brokerage accounts | 100% |
| Certificates of deposit | 100% |
| Money market | 100% |
| Savings | 100% |
| 401(k) or IRA, under age 59½ | 90% |
| 401(k) or IRA, age 59½ or older | 100% |
Accounts combine. Here is an illustration, and the lender’s own calculation governs. Picture an $800,000 loan. You hold $330,000 in brokerage accounts (100% counts, so $330,000), $300,000 in a 401(k) under 59½ (90% counts, so $270,000), and $200,000 in savings (100%, so $200,000). Together that is $800,000 of usable assets, which covers the loan on assets alone.
Leverage on this path is up to 80% on a purchase and 75% on a refinance, for a principal residence or second home. Cash-out terms on this path are set by the lender and are not published, so do not plan around them.
Seasoning is 60 days, with two months of statements for each qualifying account. The credit score minimum is 600. Reserves are not required at or below 75% loan-to-value on this path. Above that, the lender sets them.
Path Two: Assets Become Income
The asset depletion path turns a portfolio into a monthly income figure. Usable assets divided by 60 months become qualifying income. That income must carry the full housing payment and your other debts through the debt-to-income test.
The haircuts on this path differ from the first path, so never mix the two tables:
| Asset | Share that counts |
|---|---|
| Cash accounts | 100% |
| Certificates of deposit | 100% |
| Securities | 80% |
| Private stock | 75% |
| Retirement accounts, any age | 70% |
| Real-estate equity | 60% |
Take $1,500,000 in securities (80% counts, so $1,200,000) plus $300,000 in cash (100%). That is $1,500,000 usable. Divided by 60 months, it produces $25,000 of monthly qualifying income. That figure then has to carry the housing payment and other debts under the DTI test. Again, this is illustrative, and the lender’s calculation governs.
Divisors differ across programs, and agency-style asset depletion is a different product from a non-QM version. Do not compare a 60-month result from this program with a figure you saw elsewhere without checking the divisor first.
Leverage on this path depends on the property and the transaction:
- Primary residence or second home: up to 80% on a purchase or rate-and-term refinance, and 60% on a cash-out refinance.
- Investment property: up to 65% on a purchase or rate-and-term refinance, and 60% on a cash-out.
Cash-out proceeds never count as qualifying assets. Loan amounts run from $125,000 to $3,500,000 through select programs, subject to underwriting.
Minimums are stricter here. Qualified assets must be at least the lesser of $1,000,000 or 1.25 times the loan balance. When depletion is your only income source, you need no less than $250,000 liquid. Asset income can also supplement documented income 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. Sale-of-business, inheritance and legal-settlement funds are excused from that seasoning. Credit follows the lender’s score and loan-amount matrix. A first-time investor on this path needs a 700 score.
What Does Not Count
Several asset types do not count 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.
Other holdings are not published as eligible on either path. That covers cryptocurrency, precious metals, collectibles, business accounts beyond your ownership share, and pledged or borrowed funds. The documented route is to convert them into a seasoned cash balance in a regulated account. The lender then reviews the source. Plan for the conversion before you apply, not after.
Where the Rules Break
Weak credit history. The assets do not rescue a thin file. On the depletion path, one 30-day late in the last twelve months of housing history is considered case by case. Multiple bankruptcies are not eligible. A housing event needs 4 years of seasoning on that path.
Gift funds and fresh deposits. These usually do not count until they have sat in your account long enough. Keep them separate from your core balances and document the source.
Business accounts. Beyond your ownership share, these are not published as eligible. Even within your share, expect extra documentation proving access.
An investment property that rents well. If your goal is a rental, the better fit may be a DSCR loan. 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. On a DSCR file, rent measured against the payment sets qualification, and your assets only prove funds and reserves. When rents are weak but your balances are large, the depletion path on an investment property is the alternative, at its lower leverage.
Income that is real but irregular. A bank statement loan documents income through deposits and keeps personal DTI in the file. It is a separate program for people who earn but cannot show it on traditional personal-income documentation. Assets-based qualification is for people whose balances are large and whose documented income is not.
Consumer loans still check repayment. On a principal residence or second home, the loan is a consumer mortgage. The CFPB’s ability-to-repay compliance guide explains that the rule covers consumer credit secured by a one-to-four-unit dwelling and is not limited to first liens or primary residences. The agency’s assessment report adds that loans missing the General QM standard are non-QM and still fall under those provisions. That is why the lender’s review rests on your assets even when no income is documented.
Pre-Approval in Indiana, Step by Step
A pre-approval is the lender’s written review of your file, conditioned on underwriting, the property and the assets staying in place. It carries more weight than a pre-qualification, which relies on information you state without a full document review.
Gather these before you apply:
- Statements for every account you want counted, with two months per account on the first path.
- On the second path, statements at least 120 days old plus one dated within 45 days.
- Identification and your credit authorization.
- A written explanation and paper trail for any large deposit.
- Records showing the source of funds from a business sale, inheritance or settlement, if applicable.
- Retirement account statements with your age on file, since the percentage depends on it.
- Ownership proof for any account that is not solely yours.
Then follow the sequence. Choose your path. Ask your broker to size the loan against your usable assets. Submit the documents. Hold the pre-approval letter, and keep balances steady while you shop.
Sellers and agents in Indiana read a letter like this the way they read any other. How much weight it carries depends on the lender behind it and how fully the file was reviewed. The letter’s expiry is set by the lender, so ask.
Risks and When This Is a Bad Idea
Asset-based qualification has real tradeoffs.
- Market swings. If you count on securities and the market drops before closing, your usable balance falls with it.
- Drawdown. On the depletion path, the loan is carried by income your portfolio produces on paper. If you also spend that portfolio, the structure weakens.
- Leverage ceilings. The depletion path allows lower leverage on cash-out and on investment property than on a purchase of a primary residence.
- Cost. Non-QM structures generally cost more than conventional financing. The program page and your broker cover the pricing details, not this article.
- Poor fit. If your documented income already qualifies you conventionally, there is little reason to use your assets this way.
Tax treatment varies; consult a qualified professional.
Indiana: What Changes and What Doesn’t
Nothing in the program figures changes because the property is in Indiana. The credit percentages, seasoning, leverage and minimums are the same as in any state where the program is available. What is local is the property itself, such as its value and appraisal. Indiana is among the 16 states where Lendmire’s consumer mortgage lending is licensed. The program’s footprint is those 16 states only.
Frequently Asked Questions
Do I have to sell my investments to qualify?
No. On both paths, the assets are counted, not liquidated or pledged. You keep control of them. The one exception is an asset type that is not published as eligible, such as cryptocurrency. For those, the documented route is converting to a seasoned cash balance first.
Is this a no-documentation loan?
No. The file is fully underwritten. You skip traditional personal-income documentation, pay stubs and employment verification on the first path. You still provide statements, identification, credit and the property documents. Every asset is documented.
Can I add income to my assets?
Yes, on the depletion path. Asset-derived income may supplement documented income up to a 45% debt-to-income ratio. Underwriting still reviews the whole file.
What is the difference between pre-qualification and pre-approval?
A pre-qualification is a preliminary estimate based on what you tell the lender. A pre-approval follows a document review. It is stronger in an offer, though it is still conditioned on the property and underwriting.
Does a retirement account count?
Yes, at a share of its balance. On the asset 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. Both are subject to underwriting.
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 out at 828-256-2183. A review of your balances before you go under contract tells you which path fits and how much of your portfolio counts.
Lendmire’s asset-based mortgage in Indiana page presents the program for Indiana borrowers.
About Lendmire
As a mortgage broker (NMLS# 2371349), Lendmire helps self-employed and high-net-worth borrowers in 16 states qualify on bank statements, a profit-and-loss statement, 1099s or liquid assets instead of traditional income documentation, through wholesale lenders. Lendmire is never the lender; program terms are set by the lender and its guidelines. Scotsman Guide named Lendmire a Top Mortgage Workplace in both 2025 and 2026.
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References
1. CFPB Ability-to-Repay and Qualified Mortgage Small Entity Compliance Guide
2. CFPB: CFPB Ability to Repay Qualified Mortgage Assessment Report
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 California on Assets Instead of Income? · Can You Relocate to Montana and Buy a Home on Assets Before You Have Local Income? · Can You Get a Mortgage in Texas With No Income but a Lot of Savings?
Guides: Asset-Based Mortgage in Indiana
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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- Lendmire LLC · Firm NMLS# 2371349 · Verify firm licensure
Required disclosures. Lendmire (NMLS# 2371349) operates as a licensed mortgage broker, not a direct lender or depository. The discussion in this article is general in nature and should not be relied upon as financial, legal, or tax advice — every investment scenario is unique and should be reviewed by a qualified professional. Any loan inquiry is subject to lender underwriting, and this article is not a commitment to lend or a guarantee of approval. Mortgage rates, loan terms, and program guidelines vary by borrower, property, and state, and may change without notice. Equal Housing Opportunity. Verify licensure at NMLS Consumer Access.