The Quick Read: A household living on a portfolio can qualify on its assets instead of a paycheck. There are two ways to do it. On the asset qualifier path, eligible assets cover the entire loan and no employment or income is documented. On the asset depletion path, usable assets are divided by 60 months into a qualifying income that runs through the debt-to-income test.
- You skip traditional personal-income documentation, pay stubs and employment verification. You do not skip underwriting. Every file is fully underwritten, and your assets are documented with statements.
- A borrower is qualified on one path at a time. The two paths use different asset percentages and different leverage.
- Retirement balances count on both paths, at a haircut in some cases. Cash-out proceeds never count as qualifying assets on the depletion path.
- Alabama is one of the 16 states where Lendmire’s consumer mortgage lending is licensed. The program figures below do not change by state, and all of them are subject to underwriting.
Key Terms Defined
Asset qualifier path: the route where eligible assets, after the credit percentages, must equal or exceed the whole loan amount.
Asset depletion path: the route where eligible assets, after haircuts, are divided by 60 months to produce a monthly qualifying income.
Debt-to-income (DTI): your monthly debts, including the new housing payment, compared with your monthly qualifying income.
Seasoning: the time money must sit in your account before the lender counts it.
Haircut: the share of a balance the lender subtracts because the asset can swing in value or carries a tax cost.
Which Path Fits a Household Living on a Portfolio?
Match the path to the size of your balances relative to the loan. If your eligible assets can cover the entire loan, the asset qualifier path is the cleaner fit. If they cannot, the asset depletion path turns a smaller pile into income.
Across Lendmire’s wholesale network, the programs that serve these borrowers are asset-based mortgage programs. They are consumer mortgages on a principal residence or second home. The depletion path also reaches investment property, and that loan is business-purpose.
| Factor | Asset qualifier | Asset depletion |
|---|---|---|
| How assets are used | Cover the whole loan | Become monthly income |
| Income documented | None | Derived from assets |
| Purchase leverage | Up to 80% | Up to 80% (home); 65% (investment) |
| Refinance leverage | Up to 75% | 80% rate-and-term; 60% cash-out |
| Loan amounts | Up to $4,000,000 | $125,000 to $3,500,000 |
| Credit | 600 minimum | Lender’s matrix |
The depletion row for a purchase and a rate-and-term refinance reads 80% on a principal residence or second home. On an investment property it reads 65%. Cash-out is 60% on every occupancy type on that path. On the qualifier path, whether cash-out proceeds are allowed is set by the lender, so no cash-out figure is stated here. All of these figures are ceilings, subject to underwriting.
How Does Underwriting Treat Your Assets, Step by Step?
The lender works through your balances in a fixed order. The order differs slightly by path.
1. Pick the accounts. You list the accounts you want considered. On the qualifier path, accounts typically combine, subject to lender guidelines.
2. Apply the percentages. Each account type counts at its own share of the balance. The table below shows both paths.
3. Check seasoning. The money generally must have been in place long enough, with statements to prove it.
4. Run the test. On the qualifier path, usable assets typically must equal or exceed the loan. On the depletion path, usable assets divided by 60 gives monthly income, which then carries the housing payment and your other debts.
5. Review credit and housing history. Housing history of 0x30x12 is the typical target. One 30-day late in the last twelve months may be considered case by case.
How Each Asset Type Counts
| Asset | Qualifier path | Depletion path |
|---|---|---|
| Brokerage / securities | 100% | 80% |
| Cash, savings, money market | 100% | 100% (cash accounts) |
| Certificates of deposit | 100% | 100% |
| 401(k) / IRA | 90% under 59½; 100% at 59½+ | 70% at any age |
| Private stock | Not published | 75% |
| Real-estate equity | Not published | 60% |
Cryptocurrency, precious metals, collectibles and pledged or borrowed funds are not published as eligible on either path. The documented route is to convert them into a seasoned cash balance in a regulated account, with the lender reviewing the source. The depletion path also excludes 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.
What Does the Math Look Like at FIRE Scale?
Both examples below are illustrative. The lender’s own calculation governs.
Qualifier path. Say you want an $800,000 loan. You hold $330,000 in brokerage accounts, which counts at 100%, or $330,000. You hold $300,000 in a 401(k) and you are under 59½, so it counts at 90%, or $270,000. You hold $200,000 in savings, which counts at 100%, or $200,000. Your usable assets total $800,000. That matches the loan, so the file is reviewed on assets alone, subject to underwriting.
This is the case where early retirement helps and hurts. The under-59½ haircut costs you only a tenth of the 401(k) balance. At 59½ the haircut disappears.
Depletion path. Say you hold $1,500,000 in securities, which counts at 80%, or $1,200,000. You also hold $300,000 in cash at 100%. Usable assets come to $1,500,000. Divide by 60 months and you get $25,000 of monthly qualifying income. That income then has to carry the housing payment and your other debts through the debt-to-income test.
The qualifying income is a calculation, not a withdrawal schedule. You are not required to sell holdings or draw on them to make the math work. The depletion path also requires qualified assets of at least the lesser of $1,000,000 or 1.25 times the loan balance. When depletion is your only income source, you need at least $250,000 in liquid assets.
What You Still Have to Document
You document the assets, not a job. That distinction matters because the phrase no income paperwork gets stretched into no paperwork.
- Qualifier path: 60 days of seasoning and two months of statements for each qualifying account. This path is reviewed on verified assets rather than income documentation, subject to lender guidelines.
- Depletion path: statements at least 120 days old at application, plus the most recent statement within 45 days. Funds from the sale of a business, an inheritance or a legal settlement are excused from that seasoning.
- Large deposits: expect questions about any big recent deposit. Source documents save time you cannot afford to lose.
- Credit: the lender reviews your credit as part of underwriting.
- Reserves: none are required on the qualifier path at or below 75% loan-to-value. Above that, the lender sets them. The depletion path publishes no reserve months.
Where the General Rule Breaks
The asset-based rule works for most portfolio households. These cases bend it.
You want to buy a rental. An investment property is available only on the depletion path, at 65% on a purchase or rate-and-term refinance and 60% on a cash-out. Because the loan is business-purpose, it is reviewed differently from a standard owner-occupied mortgage. Federal rules exempt credit extended primarily for a business or commercial purpose. The CFPB’s commentary says the lender decides in each case whether the purpose qualifies, so a checked box alone is not the whole answer. If the rent is what carries the property, business-purpose rental financing is usually a DSCR loan instead, which qualifies primarily on property-level rental income covering the payment, subject to lender guidelines.
You are a first-time investor. On the depletion path, a first-time investor needs a 700 credit score.
You had a housing event. On the depletion path, a housing event needs 4 years of seasoning. Multiple bankruptcies are not eligible.
You are still partly working. Asset-derived income can supplement documented income, up to a 45% debt-to-income ratio. When it supplements, the minimum-assets rule is waived.
Your wealth is not in eligible accounts. Crypto, metals and collectibles are not listed above, so plan to convert and season them first.
You want to pull cash out. The cash-out ceiling there is 60%.
Consumer-finance press notes that a borrower with no job can qualify through alternate income or asset depletion. Alternate income includes Social Security, a pension, dividends or long-term rental income. If your household has that, it can sit alongside either path.
The Alabama Angle
The program figures are the same in Alabama as anywhere else. What changes is the property. A home you live in is a principal residence, and a lake or Gulf Coast place you use part of the year is typically a second home. The distinction matters because leverage on the depletion path is higher for those two occupancy types than for an investment property.
Budget for property taxes and homeowners insurance, which vary by county and by property. Those costs sit inside the housing payment, and on the depletion path they have to fit inside your derived income.
Lendmire is a broker. It arranges these loans through select lenders in its network, and lenders approve them.
What the Decision Looks Like in Practice
Start with the numbers you control.
1. Add up your eligible balances on each path’s percentages.
2. Compare them with the loan you want. If usable assets meet or exceed it, test the qualifier path first.
3. If they fall short, test the depletion path and run the divide-by-60 income against your total monthly debts.
4. Check seasoning. Accounts you funded recently, such as a rollover or a transfer, may need time before they count.
5. Decide where the cash for the down payment comes from before you apply. Pulling from a retirement account can carry tax effects. 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.
One practical point from the brokerage side: files stall on statements, not on math. A household that gathers two clean statements per account and a source for every large deposit gives the underwriter little to question.
Common Misconceptions
You must be retired or unemployed. No. The depletion path lets asset income supplement documented income.
You have to sell investments. No. Qualifying income is a calculation, not a liquidation.
A 401(k) is unusable under 59½. It counts on both paths. It counts at 90% under 59½ on the qualifier path and at 70% at any age on the depletion path.
No income documentation means no documentation. The assets are documented with statements on both paths.
Anything of value counts. Only the assets listed above count, at their own percentages.
Frequently Asked Questions
Do I have to be retired to use an asset-based mortgage?
No. Retirees, early-retired professionals, business sellers and people living on a portfolio all fit. Asset-derived income on the depletion path can also supplement documented income, up to a 45% debt-to-income ratio.
Do I have to sell investments or withdraw from retirement accounts?
No. The qualifying income on the depletion path is a calculation, and the qualifier path simply counts your balances. Your holdings stay where they are. Keep in mind that the down payment itself has to come from somewhere.
What credit score do I need?
The qualifier path publishes a 600 minimum. The depletion path follows the lender’s score and loan-amount matrix, and a first-time investor there needs 700. Every file is reviewed individually, so a score alone does not decide the outcome.
Can I use crypto or precious metals?
They are not published as eligible on either path. The documented route is to convert them to cash in a regulated account and season the funds, with the lender reviewing the source.
Can I buy a rental property this way?
Yes, but only on the depletion path, at up to 65% on a purchase and 60% on a cash-out. If the rent is meant to carry the property, a DSCR loan is usually the better structure. It qualifies primarily on property-level rental income covering the payment, subject to lender guidelines.
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. Every program here is available through select lenders and is subject to underwriting.
Lendmire’s asset-based mortgage in Alabama page presents the program for Alabama borrowers.
About Lendmire
Lendmire (NMLS# 2371349) is a mortgage broker licensed for consumer lending in 16 states. Bank statement, P&L-only, 1099-only and asset-based mortgages for self-employed and high-net-worth borrowers are arranged through wholesale lenders on primary residences, second homes and investment properties; every file is underwritten by the lender under its program guidelines. 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
3. Yahoo Finance: Can You Get a Mortgage Without a Job?
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 Snowbirds Get a Mortgage on a Winter Home Without Income · How to Refinance a Colorado Mortgage After Retiring With No W-2 Income · How to Document an Alabama Asset Qualifier Mortgage Without an Employer
Guides: Asset-Based Mortgage in Alabama
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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Disclosures. The information presented in this article is general market commentary, not financial, legal, or tax advice. Lendmire is a mortgage brokerage (NMLS# 2371349) — not a direct lender or depository institution — and loan placement is subject to lender underwriting. Nothing in this content represents a commitment to lend. Loan terms, pricing, and program availability vary based on borrower qualifications, property characteristics, and state of subject property, and are subject to change at any time. Lendmire complies with Equal Housing Opportunity requirements. Consumer access: nmlsconsumeraccess.org.