The Quick Read: Yes, a borrower can buy a Montana home with no Montana paycheck, because eligible assets can carry the loan instead of local employment, subject to underwriting. The file still needs full documentation: statements for every account counted, a credit review, and an appraisal. Only the income source changes.
- Assets cover the loan outright (asset qualifier path): no employment or income is documented, up to 80% loan-to-value on a purchase.
- Assets become income (asset depletion path): usable assets divided by 60 months, run through the debt-to-income test.
- You are on one path at a time. The two tables never blend.
- No traditional personal-income documentation, pay stubs or employment verification. Statements, credit and the property are all still reviewed.
Brokers see this file every week. A retiree sells a house in California or Colorado, lands in Bozeman or Missoula with a large brokerage balance and no W-2. Lenders do not care where the job is. They care whether the file shows the borrower can repay. This piece covers how that works in practice, which assets count, and where these files break. Montana is a state where Lendmire’s consumer mortgage lending is licensed, so the program figures below apply to a Montana borrower. They are the same figures used everywhere else, and every file is underwritten individually.
Does a Mortgage Require Income From a Job in the Same State?
No. Nothing requires employment in the state where the home sits. A lender has to show it reasonably judged that you can repay, and it may do that with income, with assets, or with both. The CFPB’s ability-to-repay provision allows the lender to rely on assets other than the home securing the loan. The eCFR text of the same rule adds that the lender must verify whatever income or assets it relies on.
Two things follow in practice. Equity in the home you are buying cannot be counted as the asset. And the lender documents what it uses with third-party records, which means account statements.
So a recent move is not the obstacle people assume. The obstacle is paperwork on the assets.
Which Path Fits: Assets That Cover the Loan, or Assets That Become Income?
Choose the asset qualifier path when your eligible assets, after the percentages below, equal or exceed the whole loan amount. Choose the asset depletion path when your assets are large but smaller than the loan, or when you want them treated as a monthly income stream. The asset-based mortgage program places both through select lenders.
| Factor | Asset qualifier | Asset depletion |
|---|---|---|
| What is tested | Assets cover the entire loan | Assets become monthly income |
| Income documented | None | Derived, runs through DTI |
| Purchase leverage | Up to 80% LTV | Up to 80% (primary or second home) |
| Refinance leverage | Up to 75% LTV | 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 |
On the depletion path, an investment property tops out at 65% on a purchase or rate-and-term refinance and 60% on a cash-out. Leverage on the qualifier path’s cash-out is set by the lender and not published, so do not plan around it. These are ceilings, subject to underwriting, not offers.
Which Assets Count, and How Much Credit Each Gets
The percentages differ by path, and mixing them up is the most common planning error. Here is each table on its own.
Asset qualifier path (share of balance counted):
| Asset | Counts at |
|---|---|
| Brokerage, CDs, money market, savings | 100% |
| 401(k) and IRA, under age 59½ | 90% |
| 401(k) and IRA, 59½ or older | 100% |
Accounts combine. Seasoning is 60 days, with two months of statements for each qualifying account. Reserves are not required at or below 75% loan-to-value.
Asset depletion path (share of balance counted):
| Asset | Counts at |
|---|---|
| Cash accounts and CDs | 100% |
| Securities | 80% |
| Private stock | 75% |
| Retirement accounts (any age) | 70% |
| Real-estate equity | 60% |
Not eligible on this 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. Statements must be at least 120 days old at application, plus the most recent one within 45 days. Sale-of-business, inheritance and legal-settlement funds are excused from that seasoning.
Crypto, precious metals, collectibles and borrowed or pledged funds are not published as eligible on either path. The documented route is converting them to a seasoned cash balance in a regulated account, with the source reviewed by the lender.
What Does the Math Look Like?
Run these as illustrations only. The lender’s own calculation governs.
Qualifier example. Take an $800,000 loan. A borrower holds $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). Usable assets total $800,000, which covers the loan, and the file is reviewed on assets alone.
Depletion example. A borrower holds $1,500,000 in securities (80% counts, so $1,200,000) plus $300,000 in cash (100%). Usable assets are $1,500,000. Divided by 60 months, that is $25,000 of monthly qualifying income. That income then carries the housing payment and other debts through the debt-to-income test.
Depletion has minimums. Qualified assets must be at least the lesser of $1,000,000 or 1.25 times the loan balance, and never below $250,000 liquid when depletion is the only income. If the borrower has some documented income, asset-derived income can supplement it up to a 45% debt-to-income ratio, and the minimum-assets rule is waived.
Assets used to produce qualifying income generally cannot also fund the down payment or reserves.
Sequencing the Move: Before, During, After
Start the asset review before you list the old home or make an offer. Where the money sits when you apply determines which path works.
1. Before you move. Gather statements for every account you may use. Check seasoning: 60 days and two months of statements on the qualifier path, 120-day-old statements plus a recent one on depletion.
2. Before the sale proceeds land. Proceeds from a home sale are fine, but they need to be in a regulated account with a paper trail. Moving funds between accounts right before applying creates source questions.
3. During the offer. The loan sizes off the lower of price or appraised value. If the appraisal comes in under contract, the borrower funds the gap.
4. After you arrive. Montana residency steps, such as a driver’s license and vehicle registration, are separate from loan eligibility. They do not need to be done first.
Occupancy matters here. A home you will live in, or a second home, is a consumer loan, so TRID disclosures apply. If you are still partly in another state and the Montana house is a second home, say so honestly at application.
Montana Considerations for an Out-of-State Buyer
Montana is a mix of resort towns and rural markets, and they behave differently. In-migration has softened toward earlier levels, and prices are cooling but still high relative to local incomes, per the Daily Montanan. Relocation interest is real, but locals still dominate: Big Sky Country MLS data relayed by Bozeman Real Estate Group shows 75.13% of Southwest Montana purchases were by Montanans.
Practical points for the file: line up the appraisal early on remote or rural property, budget for taxes and insurance, which vary by county, and plan inspections around winter access. None of these change the program figures.
When This Path Is the Wrong One
Assets that are too small fail the tests. A borrower with $300,000 liquid is not going to clear a depletion minimum on a large loan. Paying cash fits when the balance already covers the purchase and the borrower has no reason to carry debt. Waiting for income can be cheaper if a job start is near and documented income would open other programs. Cosigners and renting first are real alternatives. State housing-agency programs usually assume documented wages, so they rarely fit this borrower.
A related warning: a rental is a different loan. A DSCR loan is for non-owner-occupied investment property and qualifies primarily on property-level rental income covering the payment, subject to lender guidelines. It cannot buy the home you will live in. Under the Federal Register ability-to-repay rule, investment-purpose loans are treated as business purpose and sit outside the ability-to-repay provisions.
Key Terms Defined
Asset qualifier: a path where eligible assets, after credit percentages, cover the whole loan and no income is documented.
Asset depletion: a path where usable assets divided by 60 months become monthly qualifying income.
Seasoning: the length of time funds must have sat in an account, shown by statements.
Debt-to-income (DTI): monthly debts divided by monthly qualifying income.
Non-QM: a mortgage that falls outside standard agency guidelines and is underwritten individually.
Common Mistakes
- Reading “no tax returns or pay stubs” as “no documentation.” Statements, credit and an appraisal are all required.
- Counting the same dollars twice, for income and for the down payment.
- Counting retirement balances at 100% on the depletion path. The table says 70%.
- Moving funds into a new account days before applying.
- Assuming a DSCR loan can buy the home you will occupy.
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.
Frequently Asked Questions
Do I need a Montana job or Montana bank account to qualify?
No. Neither is a program requirement. The file needs eligible assets in regulated accounts with the required statements, plus credit that meets the lender’s matrix, subject to underwriting.
Is this the same as selling my investments?
No. Nothing is sold or pledged. The assets are counted on paper, and the home secures the loan, not the accounts.
What credit score is needed?
On the qualifier path, 600 is the published minimum. The depletion path follows the lender’s matrix, and a first-time investor on that path needs 700. Approval is never promised.
Can I use equity in my old home?
Only on the depletion path, at 60%. It is not an eligible asset on the qualifier path, and equity in the home being purchased cannot count under the ability-to-repay rule.
Does it matter if the Montana home is a second home?
Leverage on the depletion path is the same for a principal residence or second home, up to 80% on a purchase. An investment property on that path is capped lower, at 65% on a purchase.
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.
Lendmire’s asset-based mortgage in Montana page presents the program for Montana 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
3. Daily Montanan housing story
4. Bozeman Real Estate Group, Big Sky Country MLS buyer data
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 Colorado Snowbird Buy a Winter Home on Savings Alone? · Can You Buy a Second Home in California on Assets Instead of Income? · Can You Buy a Home on Savings While Your Business Is Still Ramping Up?
Guides: Asset-Based Mortgage in Montana
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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- Lendmire LLC · Firm NMLS# 2371349 · Verify firm licensure
Disclosure information. Lendmire is a state-licensed mortgage brokerage under NMLS# 2371349. Lendmire is not a depository institution, direct lender, or financial advisor — all loans referenced are placed through wholesale lender partners and are subject to each lender's underwriting standards. This article is provided for general informational purposes and is not a commitment to lend, nor does it constitute financial, legal, or tax advice. Loan programs, terms, rates, and qualification standards change without notice and depend on borrower profile, property type, and the state in which the subject property is located. Equal Housing Opportunity provider. NMLS Consumer Access: nmlsconsumeraccess.org.