The Quick Read: Yes, through select asset-based mortgage programs you can buy an Ohio second home on verified assets instead of documented income, as long as you will use the home yourself. Your statements replace traditional personal-income documentation, pay stubs and employment verification. The assets are still documented, and every file is fully underwritten.
- Two paths exist. On the asset qualifier path, your eligible assets cover the entire loan. On the asset depletion path, your assets are converted into monthly qualifying income.
- Occupancy decides the product. Personal use points to an asset-based second-home loan. A home bought to rent points to a different product.
- Not every dollar counts at face value. Cash counts in full, while securities and retirement accounts are discounted.
- You do not sell anything. The assets are a qualifying tool, and you keep them.
Lendmire is a mortgage broker. It arranges these loans through select lenders in its network, and the lender’s own review and calculation govern every file. Ohio is one of the 16 states where Lendmire arranges consumer mortgages.
Which Path Fits You: Assets That Cover the Loan, or Assets That Become Income?
Pick the first path if your balances are large enough to equal the whole loan. Pick the second if your assets are large but you need to show the monthly payment is affordable. A borrower is qualified on one path at a time, so the two sets of figures never blend.
| Factor | Asset Qualifier | Asset Depletion |
|---|---|---|
| Core test | Usable assets ≥ entire loan | Assets ÷ 60 months = income |
| Income documented | None | Derived income, run through DTI |
| Purchase leverage | Up to 80% LTV | Up to 80% (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 score | The lender’s matrix |
Both paths are subject to underwriting, and these figures are ceilings and floors, not offers. Across the wholesale network, the qualifier path suits borrowers whose liquid wealth clearly exceeds the loan, such as someone who just sold a business. The depletion path suits borrowers with a large portfolio and a lower balance relative to their assets who still want a second home on a normal loan structure.
On the depletion path, derived income can also supplement documented income, up to a 45% debt-to-income ratio. When it supplements, the minimum-assets rule is waived.
Key Terms Defined
Second home: A property you occupy for personal use for part of the year, in addition to your main residence.
Asset qualifier path: A structure where eligible assets must equal or exceed the entire loan amount, with no employment or income documented.
Asset depletion path: A structure where usable assets divided by 60 months become qualifying monthly income.
Debt-to-income (DTI): Your monthly debts, including the new housing payment, compared with your monthly qualifying income.
Seasoning: The length of time money must sit in an account before a lender counts it.
Haircut: The share of an asset’s balance a lender subtracts because the asset is less liquid or less stable than cash.
Is Your Ohio Purchase a Second Home or a Rental?
Occupancy decides everything. If you will live in the home yourself, an asset-based second-home loan can fit. If you are buying it mainly to rent out, you are in investment-property territory, and a different product applies.
| Your Plan | Loan Lane | What Drives Review |
|---|---|---|
| Personal-use second home | Asset-based mortgage | Assets, credit, DTI |
| Mostly rented to guests | Investment property | Rent coverage or assets |
| Home to live in full time | Principal residence | Assets, credit, DTI |
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. The test is whether the property’s rent covers the payment, not whether your assets do. A DSCR file also needs a different appraisal form, which is built around market rent. A second-home purchase generally does not rely on rent at all.
On the asset depletion path, an investment property is allowed, but at lower leverage: up to 65% on a purchase or rate-and-term refinance, and 60% on a cash-out refinance. A first-time investor on that path needs a 700 score. The asset qualifier path here is for a principal residence or second home.
A few edge cases come up often.
- Occasional rentals. Light rental use can leave the second-home label intact. NerdWallet notes that counting rent to qualify tends to push a property toward investment status.
- Mostly a rental. If the plan is to run the home as a rental business, treat it as an investment property from day one.
- Distance. Yahoo Finance reports that some lenders want a second home to sit roughly 50 miles from your primary residence.
- Property type. Second homes are generally one-unit properties. A duplex or fourplex usually pushes toward investment treatment.
- Mislabeling. Signing for a second home and then renting it out can breach the loan terms. Declare your use honestly.
What Counts as an Asset, and at What Value?
Cash and similar accounts count in full on both paths. Beyond that, the two paths treat accounts differently. Always name the path before you read a percentage.
| Asset | Qualifier Path | Depletion Path |
|---|---|---|
| Savings, money market | 100% | 100% (cash accounts) |
| Certificates of deposit | 100% | 100% |
| Brokerage accounts | 100% | 80% (securities) |
| Private stock | Not published | 75% |
| 401(k) and IRA | 90% under 59½; 100% at 59½+ | 70% at any age |
| Real-estate equity | Not published | 60% |
Accounts combine on the qualifier path. 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 are not eligible. Cash-out proceeds never count as qualifying assets.
Cryptocurrency, precious metals, collectibles, pledged or borrowed funds, and business accounts beyond your ownership share are not published as eligible on either path. The documented route is to convert them into a seasoned cash balance in a regulated account. The lender then reviews the source of those funds.
You do not have to liquidate a retirement account to use it. It counts as a balance on paper. Pulling money out can trigger consequences of its own. 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.
Two Worked Examples
These two examples show the arithmetic shapes. The lender’s own calculation governs, and every file is subject to underwriting.
Qualifier path. Say you want an $800,000 loan on an Ohio second home. You hold $330,000 in brokerage accounts, which count at 100%, or $330,000. You hold $300,000 in a 401(k) and are under 59½, so it counts at 90%, or $270,000. You also hold $200,000 in savings at 100%, or $200,000. That adds up to $800,000 of usable assets, which equals the loan, so the file can qualify on assets alone. Reserves are not required at or below 75% loan-to-value. Above that, the lender sets them.
Depletion path. Now say you hold $1,500,000 in securities, which count at 80%, or $1,200,000. You also hold $300,000 in cash at 100%. That is $1,500,000 of usable assets. Divide by 60 months and you get $25,000 of monthly qualifying income. That income must then carry the housing payment and your other debts through the debt-to-income test. This is why your existing primary mortgage matters on this path.
What If You Already Have a Mortgage, or You Already Spent the Cash?
Your primary mortgage matters most on the depletion path. Its payment sits in your debt-to-income test next to the new payment. ValuePenguin makes the same point about second homes generally: you need to show you can carry two housing payments.
On the qualifier path, no income is documented. The lender’s review rests on the assets themselves. That is why the combined usable balance must equal the entire loan.
Spent cash is the trap many buyers miss. If you pay cash for one home, the balance that left the account no longer counts. Lenders generally remove money used to close before they count what remains. The assets that carry the loan are the ones still sitting in your accounts after closing costs and the down payment.
Sale-of-business, inheritance and legal-settlement funds get special treatment on the depletion path. They are excused from the seasoning requirement, which matters for someone who just received a lump sum.
Seasoning and Statements: What Stops a File
Most stalled files stall on statements, not on the size of the balance. Each path has its own documentation rule.
1. Qualifier path. Expect 60 days of seasoning and two months of statements for each qualifying account.
2. Depletion path. Statements must be at least 120 days old at application. You also need the most recent statement dated within 45 days.
3. Unexplained deposits. Large recent transfers get questioned, so keep a paper trail of where money came from.
4. Credit history. The qualifier path wants a 600 minimum score. Housing history is 0x30x12, though a single 30-day late payment in the last twelve months is considered case by case.
5. Housing events. On the depletion path, a housing event needs four years of seasoning. Multiple bankruptcies are not eligible.
None of this is “no documentation.” You skip traditional personal-income documentation, pay stubs and employment verification. You do not skip statements.
Ohio Considerations
The program figures above do not change by state. Ohio changes the context. Think of the purchase as a lake cottage, a home near family, or a place you will retire to part of the year. Seasonal use is the point of a second home, so choose a property you will genuinely occupy.
Budget for taxes and insurance, which vary by county, since both enter the housing payment lenders test. Local lender appetite and appraisal comps also vary by area. A broker who sees many lenders’ guidelines can compare how each treats a particular property.
Is This the Old No-Income Loan Coming Back?
No. The old loans skipped verification. These do not. A federal ability-to-repay standard still applies to consumer mortgages. The CFPB’s compliance guide lists income or assets among the factors a lender must consider and verify. That makes assets a legitimate basis for approval, and the lender must verify them.
Lendmire arranges these files through its asset-based mortgage program, which places them with select lenders. The lender reviews your statements, your credit and the property before any approval. Nothing here is a commitment to lend.
When Another Route Fits Better
Asset-based financing is a good tool for a narrow profile. It is the wrong tool in several cases.
- You have steady, documentable income. A standard income-based loan may be simpler if your traditional personal-income documentation tells a good story. Agency and conventional loans follow their own rules, not this program’s.
- You can pay cash. If your assets comfortably exceed the price and you want no payment, borrowing may not be worth it.
- You plan to rent it out. A home bought to rent belongs in investment-property financing, where the rent drives the review.
- Your assets are mostly illiquid. Crypto, collectibles and business accounts need conversion into a seasoned cash balance first.
Borrowing against home equity is a further option. That is a different product with its own rules, so compare it separately.
Frequently Asked Questions
Do I need traditional income documentation for an asset-based second-home loan?
No. You do not need conventional personal-income paperwork, pay stubs or employment verification. You do need statements for every account you rely on, plus the usual credit and property review. The lender underwrites the whole file.
Can I use my 401(k) or IRA?
Yes, though it is discounted. On the qualifier path, retirement balances count at 90% under age 59½ and 100% at 59½ or older. On the depletion path, they count at 70% at any age. You keep the account, and nothing is withdrawn to qualify.
Can I rent out the home to help me qualify?
Generally no. Using rent to qualify tends to push a property toward investment treatment, as NerdWallet explains. If you are buying primarily to rent, ask about investment-property programs instead.
How long must the money sit in my accounts?
On the qualifier path, 60 days with two months of statements per account. On the depletion path, statements must be at least 120 days old at application, plus one within 45 days. Sale-of-business, inheritance and settlement funds are excused from seasoning on the depletion path.
What is the largest loan I can get?
Up to $4,000,000 on the qualifier path and $125,000 to $3,500,000 on the depletion path. These are ceilings, subject to underwriting. Your assets, credit and the property decide where a real file lands.
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. Bring your account statements and a clear plan for how you will use the Ohio home, and the comparison starts from there.
Lendmire’s asset-based mortgage in Ohio page presents the program for Ohio borrowers.
About Lendmire
Lendmire is a mortgage brokerage (NMLS# 2371349) licensed for consumer mortgage lending in 16 states, arranging bank statement and other alternative-documentation mortgages — P&L-only, 1099-only and asset-based paths — through a wholesale lending network. Eligibility is determined by the lender on each file. Scotsman Guide named Lendmire a Top Mortgage Workplace in both 2025 and 2026.
Investors who want the broader program framework can review how DSCR loans work.
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References
1. NerdWallet, second-home page
2. Yahoo Finance, second home vs. investment property
3. ValuePenguin, second homes vs. investment properties
4. CFPB ATR/QM 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 Georgia on Assets Instead of Income? · Can You Relocate to Michigan and Buy a Home on Assets Before You Have Local Income? · How to Get Pre-Approved in Michigan on Assets Instead of Income
Guides: Asset-Based Mortgage in Ohio
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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Important disclosures. Lendmire (NMLS# 2371349) is a licensed mortgage brokerage. Lendmire is not a direct lender, depository institution, or financial advisor. All loan inquiries are subject to lender underwriting; this article does not constitute a commitment to lend. Rates, terms, and program guidelines are subject to change without notice and vary by borrower profile, property type, and state. Information in this article is general in nature and is not financial, legal, or tax advice. Equal Housing Opportunity. NMLS Consumer Access: nmlsconsumeraccess.org.