The Quick Read: A household that lives on its portfolio can get a mortgage by qualifying on documented assets instead of wages, through one of two paths that a lender reviews one at a time, subject to underwriting. On the first path, eligible assets cover the whole loan and no employment or income is documented. On the second, assets are turned into a monthly qualifying income.
- Asset qualifier path: usable assets must equal or exceed the entire loan amount. No traditional personal-income documentation, pay stubs or employment verification are needed.
- Asset depletion path: usable assets divided by 60 months become qualifying income, which must carry the housing payment and other debts.
- Assets are documented on both paths. Statements are reviewed, and credit is pulled. Every file is fully underwritten.
- Retirement accounts count, at a discount. The discount depends on the path, and on age for the qualifier path.
- Colorado is within the licensed footprint. Figures are ceilings and floors, never offers, and they do not change by state.
Who Counts as a FIRE Household to a Lender
A lender does not care why you stopped working. It cares whether your assets are large, documented and usable. A FIRE household is a retired-early professional, a couple living on a portfolio, or a founder who sold a business and does not plan to take another job.
The profile looks odd on paper. Balances are large and the tax return shows little earned income. A standard debt-to-income test reads that as weak. Asset-based underwriting reads it the other way.
Across Lendmire’s wholesale network, these files start in the same place. The borrower has plenty of money and no paycheck to show. The only open question is which path fits the money. Lendmire’s asset-based mortgage programs are built for that profile, placed through select lenders on a principal residence or second home. Investment property is available only on the depletion path.
Why Lenders Ask About Work, and What They Accept Instead
Lenders ask about a job because they must make a reasonable, documented judgment that you can repay. The job is only one way to show it. The CFPB’s compliance guide lists eight underwriting factors. Current or expected income or assets is the first. Employment status matters when the lender relies on employment income.
The Federal Register text of the rule says a creditor may base its decision on income, on assets, or on both. So the law does not require a job. It requires an analysis.
That analysis never disappears. A practitioner commentary on non-QM lending notes that a lender may qualify a borrower on assets alone, while debt-to-income and residual income still enter the picture. The asset-based mortgage is a consumer mortgage, and it is fully underwritten.
Path One: Assets That Cover the Whole Loan
On the asset qualifier path, eligible assets, after the credit percentages below, must equal or exceed the entire loan. The lender documents no employment and no income. The review of your ability to repay rests on the assets.
Leverage runs up to 80% on a purchase and up to 75% on a refinance, on a principal residence or second home, through select programs. Loans go up to $4,000,000. The credit floor is 600, and a housing history of 0x30x12 is the norm. One 30-day late in the last twelve months is reviewed case by case. No reserves are required at or below 75% loan-to-value. Above that, the lender sets them.
Seasoning matters here. Funds need 60 days in the account, and the lender wants two months of statements for each qualifying account.
Here is how the arithmetic works, as an illustration only. Take an $800,000 loan. A household holds $330,000 in brokerage accounts, counted at 100%, so $330,000. It holds $300,000 in a 401(k) while under 59½, counted at 90%, so $270,000. It holds $200,000 in savings at 100%, so $200,000. That totals $800,000 of usable assets, which matches the loan and is reviewed on assets alone, subject to underwriting. The lender’s own calculation governs.
Accounts combine. A household with a brokerage account, savings and a retirement balance does not need any single account to cover the loan.
Path Two: Turning Assets Into Qualifying Income
On the asset depletion path, usable assets divided by 60 months become a monthly qualifying income. That income must carry the full housing payment and other debts through the debt-to-income test. Assets are discounted first, using the haircuts in the table further down.
Leverage here is up to 80% on a purchase or rate-and-term refinance of a principal residence or second home. Cash-out on those is up to 60%. On an investment property the ceilings are 65% on a purchase or rate-and-term refinance and 60% on a cash-out. The loan is business-purpose in that case. Loan amounts run from $125,000 to $3,500,000. Cash-out proceeds never count as qualifying assets.
The credit score follows the lender’s matrix. A first-time investor on this path needs 700. Housing history is 0x30x12. A housing event needs 4 years of seasoning, and multiple bankruptcies are not eligible.
Minimums are higher than most borrowers expect. Qualified assets must be at least the lesser of $1,000,000 or 1.25 times the loan balance. They can never be below $250,000 liquid when asset depletion is the only income source.
An illustration: $1,500,000 in securities counted at 80% is $1,200,000. Add $300,000 in cash at 100%, and usable assets are $1,500,000. Divided by 60 months, that is $25,000 of monthly qualifying income. That income then has to carry the housing payment and every other monthly debt through the debt-to-income test. A household with a heavy car loan or a second mortgage burns through that income faster than it expects.
Asset-derived income can also supplement documented income, up to a 45% debt-to-income ratio. In that case the minimum-assets rule is waived. A household with a small pension or part-time consulting income can use that route.
Route Comparison
| Factor | Asset Qualifier | Asset Depletion |
|---|---|---|
| How it works | Assets cover the whole loan | Assets become monthly income |
| Income documented | None | Derived from assets |
| Divisor | Not used | 60 months |
| Purchase leverage | Up to 80% | Up to 80% (65% investment) |
| Loan range | Up to $4,000,000 | $125,000–$3,500,000 |
| Property types | Primary or second home | Also investment property |
The qualifier path suits a household whose usable assets exceed the loan. The depletion path suits a household with a smaller pile that is still big enough to produce income. It also suits anyone buying a rental. A borrower is qualified on one path at a time. The figures do not blend.
What Assets Count, and How
Not everything in your net worth counts. The percentages differ by path, and mixing the tables is a common error on first-pass files.
| Asset | Qualifier Path | Depletion Path |
|---|---|---|
| Cash, savings, money market | 100% | 100% (cash accounts) |
| Certificates of deposit | 100% | 100% |
| Brokerage and securities | 100% | 80% |
| Private stock | Not published | 75% |
| 401(k) / IRA, under 59½ | 90% | 70% |
| 401(k) / IRA, 59½ or older | 100% | 70% |
| Real-estate equity | Not published | 60% |
Both paths have assets they do not accept. On the depletion path these include 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.
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 source reviewed by the lender. Do not assume they count at any percentage.
Retirement accounts before 59½
This is where the FIRE angle sits. An early retiree often holds most of a net worth in a 401(k) or IRA. On the qualifier path that money counts at 90% until 59½ and 100% after. On the depletion path it counts at 70% at any age. For a retirement-heavy household, the qualifier path is usually the better fit.
Do You Have to Sell Anything?
Usually not, beyond the cash for a down payment and closing costs. Assets stay invested and are counted at their discounted value. The balance has to be documented and seasoned.
Two things can change this. First, the down payment and closing costs come out of the same pool that qualifies you. Spending them lowers usable assets. A household that is a few percent above the line before closing may be below it after.
Second, statements are reviewed as of a date. On the qualifier path the lender wants two months of statements for each account. On the depletion path, statements must be at least 120 days old at application plus one within 45 days. Money moved into the account recently has not seasoned, with exceptions for sale-of-business, inheritance and legal-settlement funds on the depletion path. Market swings between statements matter too, since the lender reads the balance on the page.
Tax treatment varies; consult a qualified professional before selling or withdrawing anything.
Couples and Joint Households
Joint accounts combine. A couple where neither spouse works can qualify on pooled assets, as long as the accounts are documented and eligible. Each qualifying account needs its own statements.
Ownership is the common stumbling block. Funds sitting in an account that is not in a borrower’s name need explaining. A household that holds assets across individual accounts, a trust and a business entity should sort out who owns what before the file goes in. Business accounts count only to the extent of the borrower’s ownership share, and the lender decides what is eligible.
The Colorado Layer
The program figures do not change in Colorado. Leverage, credit and seasoning are the same as in any of the 16 states where the consumer program is licensed. Colorado is one of them.
What changes is the property. A Front Range house, a mountain-town second home and a resort condo each carry different insurance, association dues and special-district costs. Insurance on a home in a wildfire-exposed area should be quoted early. The depletion path measures every monthly obligation against derived income, so a higher housing payment is a real constraint. On the qualifier path there is no income test, but the lender still reviews the property and the file.
A second home in Colorado is eligible on both paths. If the plan is a rental property, the depletion path is the one that covers investment property, at lower leverage. Rental financing built around the property’s own income is DSCR, a separate program with different rules. Short-term rental rules can vary by city, county, HOA, and property type, so confirm local rules before relying on projected rental income.
Cash Purchase or Financing?
Paying cash is cleaner. Financing keeps the portfolio working. The choice is a household decision, not a lender one.
Run three questions. How much of the portfolio would a cash purchase pull out of the market? What would the household do if the portfolio fell sharply after the purchase? And does the mortgage cost less than the return the household expects to keep earning? The last question depends on pricing, which varies, so it belongs in a conversation with a loan officer, not in an article.
A mortgage also leaves more liquid money after closing. For a household with no paycheck, that cushion is often the real reason to finance.
Key Terms Defined
Asset qualifier: a path where eligible assets must equal or exceed the entire loan, with no income documented.
Asset depletion: a path that divides usable assets by 60 months to create monthly qualifying income.
Haircut: the share of an account’s balance that does not count toward qualifying.
Seasoning: the time funds must sit in an account before they count.
Debt-to-income (DTI): monthly debts, including the new housing payment, measured against monthly qualifying income.
Usable assets: the total of eligible balances after the percentages for each asset type.
Your Document Checklist
Gather these before the file goes to a lender:
1. Statements for every qualifying account. Two months on the qualifier path. On the depletion path, one statement at least 120 days old and the latest within 45 days.
2. Proof of source for recent deposits. Any large movement of money into an account gets explained.
3. A credit review. Housing history and score are checked on both paths.
4. Property documents. A contract on a purchase, or the current mortgage statement on a refinance.
5. Insurance quotes for the property. A homeowner policy, plus flood or wildfire coverage where it applies.
6. A down-payment plan. Show which account funds it and what the remaining balance will be.
The package is underwritten file by file. Programs change, and nothing here is a commitment to lend.
What This Will Not Do
It will not skip underwriting. Credit is pulled, assets are verified, and the property is reviewed. It will not accept every asset you own. It will not turn a small portfolio into a large loan, because the minimums above are real. And it will not work if the usable assets sit just under the line, since seasoning and haircuts take their share first.
The language matters too. The program asks for no traditional personal-income documentation, pay stubs or employment verification, but it does require documented assets.
Frequently Asked Questions
Can both spouses be non-working?
Yes. Pooled, eligible, documented assets can qualify the household on either path. The lender reviews who owns each account.
Can I use a 401(k) I cannot touch yet?
Yes, with a discount. On the qualifier path a retirement balance counts at 90% under 59½ and 100% at 59½ or older.
What if the market drops before closing?
Usable assets are measured from statements, so a drop lowers the balance the lender sees. A household close to the minimum has little room, and a gap may require adding cash or reducing the loan amount.
Can I get a second home this way?
Yes. Both paths cover a second home. The qualifier path allows up to 80% on a purchase and 75% on a refinance, and the depletion path allows up to 80% on a purchase or rate-and-term refinance and 60% on a cash-out.
What if I have some part-time or passive income?
On the depletion path, asset-derived income can supplement documented income up to a 45% debt-to-income ratio. When it does, the minimum-assets rule is waived.
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. Call 828-256-2183 or request a quote at Lendmire’s quote page.
Lendmire’s asset-based mortgage in Colorado page presents the program for Colorado borrowers.
About Lendmire
As a mortgage broker (NMLS# 2371349), Lendmire helps self-employed and high-net-worth borrowers in 16 states qualify on bank statements, a profit-and-loss statement, 1099s or liquid assets instead of tax returns, through wholesale lenders. Lendmire is never the lender; program terms are set by the lender and its guidelines. Scotsman Guide named Lendmire a Top Mortgage Workplace in both 2025 and 2026.
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References
1. CFPB ATR/QM Compliance Guide
2. Federal Register, ATR/QM final rule
3. CFS Review, CFPB non-QM commentary
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 to Refinance a Georgia Mortgage After Retiring With No W-2 Income · Pledged Asset Line vs Asset Qualifier Mortgage for a Colorado Home Purchase · How Snowbirds Get a Mortgage on a Winter Home Without Income
Guides: Asset-Based Mortgage in Colorado
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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Legal disclosures. Lendmire (NMLS# 2371349) is a state-licensed mortgage brokerage that arranges financing through wholesale lender relationships. Lendmire is not a direct lender, depository institution, or registered financial advisor. The discussion above is general informational content about real estate financing — it is not financial, legal, or tax advice, and readers should consult licensed professionals for guidance on their individual circumstances. Loan inquiries are subject to lender underwriting; this article does not represent a commitment to lend. Loan terms, rates, and qualification standards vary by borrower, property, and state, and are subject to change at any time. Equal Housing Opportunity. NMLS Consumer Access: nmlsconsumeraccess.org.