The Quick Read: A buyer with large balances and little documented income can qualify for a second home on assets, through select asset-based programs. Either the assets cover the whole loan, or they are converted into a monthly qualifying income. Both paths need account statements, but no traditional personal-income documentation, pay stubs or employment verification.
- Asset qualifier path: eligible assets must equal or exceed the entire loan, and no income is documented.
- Asset depletion path: usable assets divided by 60 months become qualifying income that runs through the debt-to-income test.
- Leverage on a second home: up to 80% on a purchase on either path, subject to underwriting.
- Rent does not help on a second home. If you want rent to count, the property has to be a true rental.
- Your investments stay invested. The lender documents them. It does not require you to sell them.
Picture a Colorado buyer who sold a business last year. The brokerage account is large and the paycheck is gone. A conventional lender looks at the tax return and sees almost nothing. An asset-based lender looks at the statements and sees plenty.
That gap is what this article covers. It explains how the two paths work, which assets count and how much, and where the rules change if you plan to rent the place out.
Key Terms Defined
Asset-based mortgage: a home loan qualified on the borrower’s documented assets rather than on employment income.
Asset qualifier path: the version where eligible assets, after the credit percentages, must equal or exceed the entire loan amount.
Asset depletion path: the version where usable assets are divided by 60 months to create a monthly qualifying income.
Debt-to-income ratio (DTI): monthly debts, including the new housing payment, compared with monthly qualifying income.
Seasoning: the length of time funds have sat in your accounts before the lender will count them.
Second home: a home you occupy part of the year yourself, as opposed to one you buy to rent out.
Which Lane Are You In First?
Your occupancy plan decides the loan, so settle it before anything else. A second home is one you will use. A rental is one you will not live in. Lenders treat them as different files.
The asset-based program described here is built for the first lane. It lets you buy a second home on your balance sheet. The place is yours to use. Rent from it is not part of the qualifying math.
If the property is a true rental, you are in business-purpose territory. Rent-based financing, the kind that tests whether the property’s rent covers its payment, is built for that.
Two Paths, One at a Time
The two paths solve different problems, and a borrower is reviewed on one at a time. Never mix their numbers. The qualifier path asks whether your assets can cover the loan. The depletion path asks whether your assets, turned into income, can carry the payment.
| Factor | Asset qualifier | Asset depletion |
|---|---|---|
| Core test | Eligible assets ≥ whole loan | Assets ÷ 60 = income |
| Income documented | None | Derived from assets |
| DTI test | Not applied; review rests on assets | Applied to derived income |
| Second-home purchase LTV | Up to 80% | Up to 80% |
| Loan amounts | Up to $4,000,000 | $125,000 to $3,500,000 |
Every figure here is a ceiling or floor on select programs, subject to underwriting. None is an offer.
The qualifier path suits the buyer whose balances are big relative to the loan. The depletion path suits the buyer who has plenty of assets but wants a smaller share locked up, or who needs a stated income number to clear a debt-to-income test.
What Counts on the Asset Qualifier Path
On the qualifier path, most liquid accounts count in full. Brokerage accounts, certificates of deposit, money market and savings all count at 100%. Retirement accounts (401(k) and IRA) count at 90% if you are under age 59½ and 100% at 59½ or older. Accounts combine.
| Asset (qualifier path) | Share that counts |
|---|---|
| Brokerage accounts | 100% |
| Certificates of deposit | 100% |
| Money market | 100% |
| Savings | 100% |
| 401(k) / IRA, under 59½ | 90% |
| 401(k) / IRA, 59½ or older | 100% |
Seasoning is 60 days, with two months of statements for each qualifying account. The credit score floor is 600. No reserves are required at or below 75% loan-to-value. Above that, the lender sets them.
For a refinance on this path, the ceiling is 75% on a principal residence or second home. Whether cash-out proceeds are allowed, and at what leverage, is the lender’s call and is not published.
What Counts on the Asset Depletion Path
The depletion path is stricter on what counts, because the assets become income. Cash accounts and certificates of deposit count at 100%. Securities count at 80%, retirement accounts at 70% at any age, and real-estate equity at 60%.
| Asset (depletion path) | Share that counts |
|---|---|
| Cash accounts | 100% |
| Certificates of deposit | 100% |
| Securities | 80% |
| Private stock | Not eligible |
| Retirement accounts (any age) | 70% |
| Real-estate equity | 60% |
Not eligible here: custodial accounts, deferred compensation, escrow accounts, foreign funds, cash on hand, privately held stock, stock options, non-vested restricted stock units, and funds from non-regulated financial companies.
Qualified assets must be at least the lesser of $1,000,000 or 1.25 times the loan balance. When assets are your only income source, you also need at least $250,000 liquid. Asset income can instead supplement documented income, up to a 45% debt-to-income ratio. In that case the minimum-assets rule is waived.
Statements must be at least 120 days old at application, plus a most recent statement within 45 days. Funds from the sale of a business, an inheritance or a legal settlement are excused from that seasoning. Credit follows the lender’s matrix, subject to underwriting.
Crypto, precious metals, collectibles, pledged or borrowed funds and most business accounts are not published as eligible on either path. The usual route is to convert them into a seasoned cash balance in a regulated account. The lender then reviews where the money came from.
Worked Examples
These examples show the arithmetic. The lender’s own calculation governs.
Qualifier path. Say the loan is $800,000. You hold $330,000 in brokerage accounts (100% counts, so $330,000). You hold $300,000 in a 401(k) and you are under 59½ (90% counts, so $270,000). You hold $200,000 in savings (100% counts, so $200,000). That is $800,000 of usable assets, which matches the loan. The file is reviewed on assets alone, subject to underwriting.
Depletion path. You hold $1,500,000 in securities (80% counts, so $1,200,000). You also hold $300,000 in cash (100% counts, so $300,000). Usable assets total $1,500,000. 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.
Notice what did not happen. Nobody sold a stock. The portfolio stays put and keeps working.
For a Colorado mountain condo, HOA dues are part of the housing payment, so they count in that depletion-path debt-to-income test. Dues vary by building, so get the number early.
Do You Have to Sell Your Investments?
No. The lender counts the balances as documented. It does not require liquidation, and nothing leaves your accounts to qualify. If you later pull money out to fund the down payment, those funds still need to come from eligible, seasoned accounts. Asset balances after the move are what get counted.
One caution on the depletion path. Cash-out proceeds from a refinance never count as qualifying assets. You cannot borrow against the house to prove you can afford the house.
When Renting Enters the Picture
If you will rent the place out, the lane changes. A second home underwritten on assets does not count rent as qualifying income. Agency second-home rules say the same thing. A third-party summary of Freddie Mac’s second-home guidelines notes that rental income cannot be used to qualify and that the payment counts in your debt-to-income ratio. That is a contrast, not this program’s rule.
There is also a hard occupancy line. CFPB Regulation Z § 1026.3 treats credit to buy a non-owner-occupied rental as business-purpose. The same text says that if you expect to occupy the property more than 14 days in the coming year, you cannot treat it as non-owner-occupied. A beach house you use for a month and rent the rest of the year is owner-occupied for this purpose. A mountain cabin you plan to use through ski season is the same story.
Two things follow:
- Heavy personal use means you are in the second-home lane. Putting the cabin in an LLC does not change the occupancy facts.
- A property you truly will not use is a rental. In that case, the deal is treated as an investment property.
On a rental, this asset-based program still works on the depletion path, at lower leverage. The asset-based mortgage program allows up to 65% on an investment-property purchase or rate-and-term refinance, and 60% on a cash-out, subject to underwriting. A first-time investor on this path needs a 700 credit score. A housing event needs 4 years of seasoning. Every figure here varies by lender and program, and guidelines, property type, leverage, and credit profile all apply.
Small multi-unit buildings sit in between. Compliance Alliance explains that credit to buy an owner-occupied rental is business-purpose only with more than 2 units. So the classic live-in duplex is still a consumer-style file.
Short-term rental rules can vary by city, county, HOA, and property type, so investors should confirm local rules before relying on projected rental income. Tax treatment varies; consult a qualified professional.
For a true rental where rent should carry the qualification, DSCR financing is the usual alternative. It tests the property’s rent against its payment instead of your assets. That is a different product with different mechanics, and this article stays with assets.
What You Still Document
This is not a loan without paperwork. Every file is fully underwritten. What you skip is employment income documentation: no traditional personal-income documentation, no pay stubs, no employment verification.
What you provide instead:
- Statements for every qualifying account, in the seasoning windows above.
- Credit history. Housing history is 0x30x12. One 30-day late in the last twelve months is considered case by case.
- A property appraisal and insurance.
- Source documents for any large recent deposit.
- For depletion-path borrowers, proof the minimum-assets rule is met.
Multiple bankruptcies are not eligible. And approval is never promised, because the file is underwritten individually.
Where Files Get Snagged
Most problems are seasoning problems. A few patterns repeat across lenders in the wholesale network:
- Recent transfers. Moving money between accounts the week before applying makes the paper trail messy. Leave funds where they are.
- Counting an asset twice. The same dollars cannot be both down payment and qualifying asset on the qualifier path, since assets must cover the entire loan.
- Wrong asset type. Crypto and collectibles do not count at a percentage. Convert and season them first.
- Mixing paths. You qualify on one path at a time. A mixed spreadsheet gets sent back.
- Reading the ceiling as an offer. Up to 80% is a ceiling. Many files land lower.
Fix these before you apply and the file reads clean.
Which Path Fits You?
Start with one question: could your eligible assets, after the credit percentages, cover the entire loan? If yes, the qualifier path is the simpler fit. No income is documented, and loans go up to $4,000,000.
If no, or if you would rather keep a larger share of your portfolio untouched, test the depletion path. Your usable assets divided by 60 must produce enough income to carry the payment and your other debts. Run both before you pick. The numbers often make the choice obvious.
Consumer lending through this program is licensed in 16 states, Colorado among them. The program figures do not change by state. Lendmire is the broker. It arranges the file through select lenders in its network, and the lenders underwrite and decide.
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 the team at 828-256-2183.
Frequently Asked Questions
Can I qualify for a second home with no income at all?
Yes, on the asset qualifier path, if eligible assets equal or exceed the whole loan. No employment or income is documented there. The assets themselves are fully documented with statements, and the file is underwritten, subject to lender guidelines.
Do retirement accounts count?
Yes, with limits. On the 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. Withdrawals are not required.
Does expected rent count toward qualifying?
Not on a second home. Rent only enters the picture when the property is a true rental, which moves the file to investment-property treatment. There, the depletion path runs at 65% on a purchase, subject to underwriting.
Is this the same as a bank statement loan?
No. A bank statement loan is for borrowers who document income through deposits. This program reviews the file on balances in your accounts, and it is a different underwriting question.
How old do my statements need to be?
On the qualifier path, funds need 60 days of seasoning and two months of statements per account. On the depletion path, statements must be at least 120 days old at application, plus a recent one within 45 days. Business-sale, inheritance and settlement funds are excused from that seasoning.
Lendmire’s asset-based mortgage in Colorado page presents the program for Colorado 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. Homebuyer.com, Freddie Mac second-home summary
3. Compliance Alliance, Regulation Z and Investment Properties
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 Relocate to Texas and Buy a Home on Assets Before You Have Local Income? · Can You Buy a Second Home in Tennessee on Assets Instead of Income? · Can a Colorado Snowbird Buy a Winter Home on Savings Alone?
Guides: Asset-Based Mortgage in Colorado
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.