The Quick Read: It depends on the loan size and the path you use: on the asset qualifier path your usable assets, after the program’s credit percentages, must equal or exceed the entire loan, while on the asset depletion path you need at least the lesser of $1,000,000 or 1.25 times the loan, never below $250,000 liquid, subject to underwriting. Both paths run on documented statements, with no traditional personal-income documentation, pay stubs or employment verification. No single dollar threshold applies to every Indiana buyer, because the home price, the property’s use and the type of accounts you hold all move the number.
- Asset qualifier path: usable assets must cover the whole loan, and no income is documented.
- Asset depletion path: usable assets divided by 60 months become qualifying monthly income.
- Retirement accounts: they count at 90% under age 59½ and 100% at 59½ or older on the qualifier path, but at 70% on the depletion path.
- Investment property: it is eligible only on the depletion path, at lower loan-to-value limits.
- Seasoning: the assets must be documented and held, not moved in last week.
Which Path Fits an Indiana Retiree?
Pick the path first, because the amount of assets you need depends on it. A borrower is qualified on one path at a time, and the two use different math.
The asset qualifier path asks one question: do your eligible assets, after the credit percentages, equal or exceed the entire loan amount? If yes, the file is reviewed on assets alone. The lender documents no employment or income.
The asset depletion path works differently. The lender adds up usable assets after a haircut (a discount that counts only part of an account’s balance). It divides the total by 60 months to get a monthly qualifying income. That income then has to carry the full housing payment and your other debts through the debt-to-income test.
Indiana is one of the 16 states where Lendmire arranges consumer mortgages. The program figures below do not change by state. Indiana facts such as county property taxes and insurance costs matter to your budget, but they are not program parameters. This is also not about Medicaid asset limits, which is a different question with different rules.
Lendmire is a broker. It places these loans through select lenders in its wholesale network, and each file is underwritten individually. Every figure here is a ceiling or a floor, never an offer.
The Two Paths Side by Side
Most retirees ask the same thing: “Which one gets me the house with the fewest assets?” The honest answer is that it depends on your account mix and the loan size. This table shows the structural differences.
| Factor | Asset Qualifier | Asset Depletion |
|---|---|---|
| Test | Assets cover the entire loan | Assets ÷ 60 months = income |
| Income documented | None | Derived income, run through DTI |
| Purchase leverage | Up to 80% | Up to 80% (65% investment) |
| Refinance leverage | Up to 75% | 60% cash-out |
| Loan amounts | Up to $4,000,000 | $125,000 to $3,500,000 |
| Occupancy | Principal or second home | Also investment property |
| Credit | 600 minimum | The lender’s matrix |
On the depletion path, principal residence and second home loans go up to 80% on a purchase or rate-and-term refinance and 60% on a cash-out. Investment property goes 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. The qualifier path has a 75% refinance limit, and whether it allows cash-out is set by the lender and not published.
How Much Do You Need on the Asset Qualifier Path?
You need usable assets at least equal to the loan. Usable means the balance after the program’s credit percentages. For a retiree already past 59½, that is close to the full balance of most accounts.
| Asset type | Share that counts |
|---|---|
| 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. Here is how the arithmetic looks as an illustration. Picture an $800,000 loan backed by $330,000 in brokerage accounts (100% counts, so $330,000), $300,000 in a 401(k) held by someone under 59½ (90% counts, so $270,000), and $200,000 in savings (100% counts, so $200,000). That adds up to $800,000 of usable assets, which matches the loan, so the file is reviewed on assets alone. The lender’s own calculation governs.
Three practical notes follow from how most programs in the network work:
- Down payment and closing funds: the program tests whether assets cover the loan, but you still need cash for the down payment. Lenders review where that cash comes from, so plan the sourcing early.
- Reserves: none are required at or below 75% loan-to-value. Above that, the lender sets them.
- Credit: the published floor is a 600 score, subject to underwriting. A score at the floor does not promise an approval.
On a purchase, the program goes up to 80% loan-to-value. A retiree putting 20% down on a purchase therefore needs usable assets for the loan plus separate cash for the down payment. This is why the qualifier path suits people with large balances, such as a business sale, an inheritance or a long-held portfolio. Terms depend on the lender’s guidelines, the property type, the leverage, and a full review of the credit profile.
How Much Do You Need on the Asset Depletion Path?
The depletion path has a published minimum and a simple conversion rule. Qualified assets must be at least the lesser of $1,000,000 or 1.25 times the loan balance. On larger loans the $1,000,000 ceiling is the one that binds. When depletion is your only source of income, you also need no less than $250,000 liquid.
Each $60,000 of usable assets adds $1,000 of monthly qualifying income, because the divisor is 60 months. The haircut table shows what counts.
| Asset type | Share that counts |
|---|---|
| Cash accounts | 100% |
| Certificates of deposit | 100% |
| Securities | 80% |
| Private stock | 75% |
| Retirement accounts (any age) | 70% |
| Real-estate equity | 60% |
Here is the shape of a typical file. Say you hold $1,500,000 in securities, which count at 80%, so $1,200,000. You also hold $300,000 in cash, which counts at 100%. That is $1,500,000 of usable assets. Divide by 60 months and you get $25,000 of monthly qualifying income. That figure then has to carry the housing payment and your other debts through the debt-to-income test.
Depletion is a qualifying convention, not a withdrawal plan. You keep your portfolio and nothing is liquidated. The cost is that a large pool of assets still has to produce enough derived income to support the payment, so a bigger loan needs a bigger pool.
Asset-derived income can also supplement documented income, such as Social Security or a pension, up to a 45% debt-to-income ratio. When it supplements rather than replaces, the minimum-assets rule is waived. A retiree with a pension and a moderate portfolio should ask about that structure before assuming the headline minimums apply.
Credit follows the lender’s score and loan-amount matrix. A first-time investor on this path needs 700. Housing history is 0x30x12, and a single 30-day late in the last twelve months is considered case by case. Multiple bankruptcies are not eligible, and a housing event needs 4 years of seasoning.
Which Assets Do Not Count?
Several common holdings do not count, and retirees are often surprised by the list. On the depletion path, these are not eligible:
- Custodial accounts
- Deferred compensation
- Escrow accounts
- Foreign funds
- Cash on hand
- Stock options
- Non-vested restricted stock units
- Funds from non-regulated financial companies
Cryptocurrency, precious metals, collectibles and pledged or borrowed funds are not published as eligible on either path. The documented route is to convert them to a seasoned cash balance in a regulated account, with the lender reviewing the source. Business accounts count only for the borrower’s ownership share.
The equity in your current Indiana home is its own case. On the depletion path, real-estate equity counts at 60%. The home you are buying cannot serve as the asset that proves you can repay it. The federal ability-to-repay rule lets a lender rely on income, on assets other than the dwelling securing the loan, or on both. The qualifier path publishes no real-estate equity credit, so assume equity does not count there.
What Documents and Seasoning Do You Need?
Neither path skips documentation. The program drops traditional personal-income documentation, pay stubs and employment verification, but the assets themselves are documented with statements. That is why this is a fully underwritten loan and not a shortcut.
- Qualifier path: the assets need 60 days of seasoning, with two months of statements for each qualifying account.
- Depletion path: statements must be at least 120 days old at application, plus the most recent statement within 45 days.
- Excused funds: sale-of-business, inheritance and legal-settlement funds are excused from the depletion-path seasoning.
Seasoning is the waiting period that shows money has actually been yours. Large recent deposits draw questions, so gather the paper trail for any transfer before you apply. Retirees who just sold a house or a business should keep the closing statement alongside the account statements.
Three Retiree Profiles
These are illustrations, not offers. The lender’s own calculation and underwriting govern every file.
The diversified retiree, 62 years old. Brokerage, a rollover IRA and savings add up to a balance at or above the loan. At 59½ or older, the IRA counts at 100% on the qualifier path. This borrower usually does best on the qualifier path, because no income test applies.
The early retiree, 56 years old. Part of the portfolio sits in a 401(k) that counts at 90% on the qualifier path. The shortfall can be small but real, so the borrower either lowers the loan amount or adds cash balances. The $800,000 example above shows the same mix.
The portfolio-heavy retiree with a big loan. Securities and cash add up to well over $1,000,000 usable. The qualifier path would require the whole loan in assets, so depletion often fits better, since the derived income has to carry the payment instead. Here the $25,000 monthly income example applies.
A retiree with under $250,000 liquid and no other income is outside both published minimums. For that borrower, downsizing, paying cash or a loan that uses documented Social Security or pension income may be the better route. Plain honesty beats forcing a file.
What About a Rental Purchase?
For investment property, this program uses only the depletion path, at 65% on a purchase or rate-and-term refinance and 60% on a cash-out. If the home will be a rental and the rent carries the payment, a business-purpose DSCR loan is a different lane. It tests the property’s rent and not your personal income. Depletion tests the person. A retiree with a luxury rental that rents thin but holds a large portfolio is the depletion candidate.
What Do Other Programs Require?
Conventional agency programs are stricter about which assets count. Fannie Mae’s Selling Guide says income that depends on depleting an asset must be documented as continuing for at least three years. That rule belongs to the agency program and not to the asset-based program described here. If you are comparing offers, ask each lender which method it uses, because the haircuts and divisors differ from program to program.
Trade-Offs Worth Weighing
Borrowing against your assets instead of selling them keeps the portfolio invested. It also keeps you exposed to market swings, and the file is judged on the statements you provide at the time you apply. A sharp drop before application shrinks the usable total on either path.
Selling investments to pay cash avoids a loan altogether, but it can create a tax bill and permanently reduces your portfolio. 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.
A mortgage in retirement also adds a monthly obligation that lasts for years. Budget for Indiana property taxes and homeowners insurance, which vary by county, alongside the loan itself. This is the question to settle before comparing programs: will you be comfortable with the payment if your portfolio dips?
Key Terms Defined
Asset qualifier path: the route where usable assets must equal or exceed the entire loan, with no income documented.
Asset depletion path: the route where usable assets divided by 60 months become qualifying monthly income.
Haircut: the discount a lender applies so that only part of an account’s balance counts.
Seasoning: the length of time money has been in your accounts, shown through statements.
Debt-to-income (DTI): your monthly debts, including the new housing payment, compared to your monthly income.
Usable assets: the balance that remains after the program’s credit percentages are applied.
Frequently Asked Questions
Do I have to sell my investments to buy a home?
No. Both paths count your assets in place, and nothing is liquidated. You still need cash for the down payment, though, so some retirees move part of a portfolio into a seasoned cash balance beforehand.
Does my age matter?
Age matters only for retirement accounts on the qualifier path. A 401(k) or IRA counts at 90% under 59½ and at 100% at 59½ or older. On the depletion path, retirement accounts count at 70% at any age. Programs do not turn borrowers away for being retired, and every file is underwritten individually.
Can I combine Social Security or a pension with my assets?
Yes, on the depletion path. Asset-derived income can supplement documented income up to a 45% debt-to-income ratio, and when it does the minimum-assets rule is waived. The qualifier path documents no income at all, so there is nothing to combine. Terms are subject to underwriting.
Does the equity in my current home count?
It depends on the path. On the depletion path real-estate equity counts at 60%. The qualifier path does not publish a credit for it. The home you are buying cannot be the asset that proves repayment on either path.
Is this a no-documentation loan?
No. The lender documents your assets with statements, reviews your credit and underwrites the file. What drops away is traditional personal-income documentation, pay stubs and employment verification.
Next Steps
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. The same program figures apply across the states where the program is available.
Programs change, qualification is subject to lender guidelines and underwriting. This is not a commitment to lend.
Lendmire’s asset-based mortgage in Indiana page presents the program for Indiana 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.
Investors who want the broader program framework can review how DSCR loans work.
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References
1. CFPB — 12 CFR § 1026.43 (Regulation Z ability-to-repay)
2. Fannie Mae Selling Guide B3-3.1-01, General Income Information
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 Startup Founder Need in Assets to Qualify for a Mortgage? · How Much Does a California Retiree Need in Assets to Buy a Home Without Income? · Can You Relocate to Michigan and Buy a Home on Assets Before You Have Local Income?
Guides: Asset-Based Mortgage in Indiana
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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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.