The Quick Read: You get pre-approved on assets by choosing one of two paths, documenting your accounts with statements, and letting a lender review your credit, leverage and the property. Either your eligible assets cover the entire loan, or they are converted into monthly qualifying income that carries the payment. Neither path asks for traditional personal-income documentation, pay stubs or employment verification, and every file is still fully underwritten.
- Asset qualifier path: eligible assets must equal or exceed the whole loan, with up to 80% loan-to-value (LTV) on a purchase and 75% on a refinance, subject to underwriting.
- Asset depletion path: usable assets divided by 60 months become qualifying income that runs through the debt-to-income (DTI) test.
- Paperwork: you document assets with account statements, not income with traditional personal-income documentation.
- Credit: the qualifier path has a 600 minimum score; the depletion path follows the lender’s matrix.
- Who it fits: retirees, business sellers, inheritance or settlement recipients, and households living off a portfolio.
Think of this as the Montana buyer’s map. Program figures do not change at the state line, but your situation might: a ranch-adjacent second home, a retirement move from out of state, or the proceeds from a business you just sold. Lendmire is a mortgage broker. It arranges asset-based mortgages for consumer borrowers in 16 states, Montana among them, through select lenders in its wholesale network. The lender underwrites and decides.
Which Path Fits You?
Pick the path by asking one question: do your assets cover the loan outright, or do they need to act as income? Large, simple balances usually point to the qualifier path. A big portfolio against a modest loan often points to the depletion path. A borrower is qualified on one path at a time, never a blend of the two.
| Factor | Asset qualifier | Asset depletion |
|---|---|---|
| What is tested | Assets vs. the whole loan | Assets turned into income |
| Income documented | None | Derived from assets |
| Max loan | $4,000,000 | $125,000 to $3,500,000 |
| Purchase LTV | Up to 80% | Up to 80% (65% investment property) |
| Refinance LTV | Up to 75% | 80% rate-and-term; 60% cash-out |
| Credit | 600 minimum | Lender’s matrix |
All figures are ceilings and floors available through select programs, subject to underwriting. They are not offers. On the depletion path, the 80% and 60% figures apply to a principal residence or second home. An investment property is capped at 65% on a purchase or rate-and-term refinance and 60% on a cash-out.
Cash-out proceeds never count as qualifying assets on the depletion path. Whether the qualifier path allows cash-out at all is set by the lender, so treat that as a question for your file, not an assumption.
Key Terms Defined
Seasoning: the time money has sat in your account before a lender will count it. It keeps borrowed or freshly moved money from passing as savings.
Asset haircut: the share of an account’s balance that counts toward qualifying. A 70% haircut rate means a $100,000 balance counts as $70,000.
Asset depletion: a qualifying method that divides usable assets by a set number of months to create monthly income. It is a calculation only.
Asset qualifier: a method where eligible assets must cover the entire loan amount, so no income is documented.
Debt-to-income (DTI): your monthly debts, including the new housing payment, compared with your qualifying monthly income.
Pre-approval: a lender’s review of your credit and documents that results in a letter stating what you may be able to borrow, subject to a property and final underwriting.
How the Asset Qualifier Path Works
On this path, your usable assets must equal or exceed the full loan. Not the down payment. Not the payment. The loan. That is a high bar, which is why it suits cash-heavy borrowers.
Here is the process across the programs we place files with:
1. The lender lists every account you plan to use.
2. Each balance is multiplied by its credit percentage.
3. The credited balances are added together.
4. The total must equal or exceed the loan amount.
5. Credit, the property and leverage are reviewed on top of that.
Here is an illustrative example. Say a borrower seeks an $800,000 loan. She holds $330,000 in brokerage accounts, which count at 100%, or $330,000. She holds $300,000 in a 401(k) at age 54, which counts at 90%, or $270,000. She holds $200,000 in savings, which counts at 100%, or $200,000. That is $800,000 of usable assets, so she is reviewed on assets alone, subject to underwriting.
Reserves are simple on this path. None are required at or below 75% LTV. Above that, the lender sets them. No income is documented, so the lender’s review rests on the assets themselves. Leverage, reserves, and pricing vary by lender and program; the final terms follow the full file review.
How the Asset Depletion Path Works
Here, assets become income. The lender totals usable assets after haircuts, divides by 60 months, and treats the result as monthly income. That income must carry the full housing payment and your other debts through the DTI test.
Run the numbers on a second illustrative borrower. He holds $1,500,000 in securities, which count at 80%, or $1,200,000. He also holds $300,000 in cash, which counts at 100%. Usable assets total $1,500,000. Divided by 60 months, that is $25,000 of monthly qualifying income. That income then has to carry the housing payment and other debts under the program’s DTI limit. The lender’s own calculation governs the final result.
Nothing is sold. Nothing is pledged. The divisor is a qualifying convention, not a withdrawal plan.
Minimums matter on this path. 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 also need no less than $250,000 liquid. Asset-derived income can instead supplement documented income, up to a 45% DTI, and then the minimum-assets rule is waived.
The depletion path suits a borrower with a very large portfolio and little documented income, such as a recently retired executive. It also covers a principal residence, a second home, or an investment property at the lower leverage caps above.
Which Assets Count, and at What Percentage?
Not every dollar counts the same. The two paths use different tables, so keep them apart.
Asset qualifier path (share of balance credited):
| Asset type | Credit |
|---|---|
| Brokerage accounts | 100% |
| Certificates of deposit | 100% |
| Money market | 100% |
| Savings | 100% |
| 401(k) or IRA, under 59½ | 90% |
| 401(k) or IRA, 59½ or older | 100% |
Accounts combine, so you can stack them toward the loan amount.
Asset depletion path (share of balance credited):
| Asset type | Credit |
|---|---|
| Cash accounts | 100% |
| Certificates of deposit | 100% |
| Securities | 80% |
| Private stock | 75% |
| Retirement accounts (any age) | 70% |
| Real-estate equity | 60% |
Several holdings are not eligible on the depletion path: 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 asset classes are not published as eligible on either path. That includes cryptocurrency, precious metals, collectibles, business accounts beyond your ownership share, and pledged or borrowed funds. The documented route is to convert them into a cash balance in a regulated account, let it season, and have the lender review the source. Do not plan around them counting at any percentage.
The home you are buying does not count either. The federal ability-to-repay rule, in its text on assets and income at 12 CFR 1026.43, excludes the value of the dwelling that secures the loan. Equity in a different property can count on the depletion path, but only at 60%.
Seasoning, Statements and Large Deposits
Assets are documented on both paths. “No income documentation” never means “no documentation.” The lender wants statements because it must verify whatever it relies on with third-party records, as the same federal text requires.
Asset qualifier path: 60 days of seasoning and two months of statements for each qualifying account.
Asset depletion path: statements at least 120 days old at application, plus a most recent statement dated within 45 days.
Sale-of-business, inheritance and legal-settlement funds are excused from the depletion path’s seasoning. That helps a Montana rancher or business owner who just closed a sale, because the proceeds do not have to sit for months. The lender still reviews the source. Expect to supply the closing statement, the estate distribution paperwork, or the settlement agreement.
Picture a large deposit. Say a borrower moves a big sum between her own accounts the month before applying. The lender will ask where it came from. If both accounts show a clean paper trail, that is usually a short explanation. If the money came from a family member or a loan, it can be excluded. Keep statements for every account involved, and do not move money around mid-application.
Tax treatment can depend on how the funds are used and how the property is held; borrowers should keep clear records and speak with a qualified tax professional before relying on any deduction.
Where Pre-Approval Fits
Pre-approval is the step where your asset file gets reviewed before you ever write an offer. On an asset-based file, it is built from statements and credit, not pay stubs. Here is the flow:
1. Choose the path. Compare your balances with the loan size you want, using the percentages above.
2. Gather statements. Collect every account you plan to count, covering the seasoning periods for your path.
3. Run credit. The lender reviews your score and housing history. The housing standard is 0x30x12, and one 30-day late in the last twelve months is considered case by case.
4. Receive the pre-approval letter. It states the program, the loan ceiling and the conditions, all subject to underwriting.
5. Make an offer. The letter goes with it, and the property is then appraised and reviewed.
Be honest with sellers’ agents. A pre-approval is a conditional review, not a commitment to lend. Sellers in Montana, as anywhere, tend to read it as stronger when the letter names the program and the assets behind it. A letter that simply says “approved” with no support reads weaker.
Housing events matter. Multiple bankruptcies are not eligible. A single housing event needs 4 years of seasoning on the depletion path. A first-time investor on the depletion path needs a 700 score.
Montana Considerations
Program parameters are the same in Montana as anywhere in the program’s 16 states. What changes is who tends to need them. Montana draws retirees moving in with out-of-state home sale proceeds. It has second homes and recreational properties where the buyer’s income is a portfolio. It also has landowners and business owners selling something and holding cash.
Rural and acreage properties can add appraisal and property-review questions. A lender decides each one individually. If you are eyeing a remote parcel, raise it at the first conversation, because the lender’s review of the property is separate from your asset review.
Seasonal income also fits here. Many Montana households earn unevenly across the year. A borrower with strong balances but lumpy income can find the qualifier path cleaner than a paycheck-based review. State-level facts like local taxes and insurance are context for your budget, not program parameters.
Where the Rules Break
The general rule is simple: assets are verified, then counted at a percentage. These edge cases bend it.
Investment property. The depletion path can be used for an investment property, where the loan is business-purpose. Leverage drops to 65% on a purchase and 60% on a cash-out. An attorney’s guide to the business-purpose exemption explains that credit to buy non-owner-occupied rental property is generally treated as business-purpose, though an owner expecting to occupy a one-to-two-unit home more than 14 days a year can trigger consumer treatment. That article is several years old, so use it only for the concept.
Business-purpose does not mean no rules. A law-firm article on business-purpose lending stresses that the label does not make a loan exempt from compliance. Misclassifying a loan has consequences for lenders, which is one reason your occupancy answers must be accurate.
Rental purchases. If you are buying a pure rental, the property’s income is often the better test. Business-purpose rental financing runs through DSCR programs, which qualify primarily on property-level rental income covering the payment, subject to lender guidelines. Your liquid assets then matter mostly as cash to close. Sub-1.00 coverage programs are available through select lenders in the network, though LTV and terms adjust.
Retirement accounts. The two paths treat them differently. A borrower under 59½ gets 90% on the qualifier path but 70% on the depletion path. After 59½, it is 100% versus 70%. Check both before choosing.
Higher DTI. The official commentary to the federal rule says lenders set their own DTI thresholds. It adds that a lender may reasonably find ability to repay despite a higher DTI in light of assets outside the dwelling. That is the legal logic behind using assets at all.
What If Your Assets Fall Short?
You usually have options. Each one is a tradeoff.
- Lower the loan amount or raise the down payment. On the qualifier path, a smaller loan is the cleanest fix.
- Switch paths. A balance that cannot cover the whole loan may still produce enough income on the depletion path. Check the minimum-assets rule first.
- Supplement with documented income. On the depletion path, asset income can add to documented income up to a 45% DTI, and the minimum-assets rule is waived.
- Season more cash. Moving crypto, collectibles or business funds into a regulated cash account can add usable assets, once seasoned and reviewed.
- Choose a different route. A bank statement program is for borrowers who document income with deposits, and DSCR financing is for rental properties.
Sometimes the honest answer is that a conventional or full-documentation loan is simpler. If you have steady traditional employment income and modest savings, assets are not your best tool.
Is This the Right Route for You?
| Your situation | Likely fit |
|---|---|
| Large balances, little documented income | Asset-based mortgage |
| Self-employed, strong monthly deposits | Bank statement program |
| Buying a pure rental | DSCR loan |
| Steady traditional employment income | Conventional or full-documentation |
Self-employed borrowers sometimes show low taxable income after deductions despite strong balances. That is a good reason to look at assets. If your deposits tell a better story, the bank statement program may fit instead.
Myths That Cost Borrowers Time
“No income documents means no paperwork.” That is false. You still provide statements, credit and property information. Assets are documented on both paths.
“Asset depletion means selling my investments.” False. It is a qualifying calculation only.
“My home equity counts.” Not for the home you are buying. Equity in another property counts only at 60%, and only on the depletion path.
“The government sets the divisor.” False. The federal rule sets no divisor and no haircut. Those come from each program’s guidelines. The divisor in this program is 60 months, and the lender’s own calculation governs.
“Everyone gets the same percentages.” False. Retirement accounts, for example, are credited differently on each path.
Pre-Approval Readiness Checklist
- Statements for every account you plan to count, matching your path’s seasoning periods.
- A written source for any large deposit, sale or settlement.
- Your credit score and a clean housing payment history.
- A target loan amount and the LTV you are comfortable with.
- A clear occupancy answer: primary home, second home, or investment property.
- A rough self-check: add credited balances and compare them to the loan (qualifier), or divide usable assets by 60 (depletion).
Frequently Asked Questions
Will I still need bank statements?
Yes. Assets are documented on both paths. The qualifier path wants two months of statements per account. The depletion path wants statements at least 120 days old plus one within 45 days.
Can retirement accounts count?
Yes, at different percentages. On the qualifier path they count at 90% under 59½ and 100% at 59½ or older. On the depletion path they count at 70% at any age. Your lender confirms treatment in underwriting.
Can I use this for a second home?
Yes. Both paths cover a principal residence or second home. The depletion path also covers investment property, at lower leverage caps of 65% on a purchase and 60% on a cash-out.
Can I keep some of my assets out of the file?
Generally yes. You choose which accounts to count, as long as the credited total meets the requirement. Accounts you leave out stay out, though the lender still reviews your credit and the property.
Can self-employed borrowers use this?
Yes, if their balances are strong. Heavy deductions can shrink taxable income, and assets sidestep that. If your deposits are steady, a bank statement program may be an alternative worth comparing.
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 programs based on your statements, the property, credit profile, leverage, and your goals. Programs change, and every file is underwritten individually.
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 tax returns, 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
2. Doss Law, Business Purpose Exemption Simplified
3. Hunton, Beware of “Business Purpose”
4. CFPB, Regulation Z commentary on 1026.43
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 Much Does a Michigan Retiree Need in Assets to Buy a Home Without Income? · How Much Does a California Retiree Need in Assets to Buy a Home Without Income? · How to Get Pre-Approved in Michigan on Assets Instead of Income
Guides: Asset-Based Mortgage in Montana
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
- Mortgage Loan Originator · NMLS# 1129696 · Verify on NMLS Consumer Access
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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.