The Quick Read: The right program depends on where your wealth sits: one path lets eligible assets cover the entire loan with no income documented, while the other converts assets into monthly income, and only the second path publishes cash-out leverage, at up to 60%. Both are underwritten, and both are subject to lender guidelines.
- The asset qualifier path needs no traditional personal-income documentation, pay stubs or employment verification. Your eligible assets must equal or exceed the whole loan.
- The asset depletion path divides usable assets by 60 months to create qualifying income. That income then runs through a debt-to-income test.
- Cash-out proceeds never count as qualifying assets on either path.
- Privately held company stock is not an eligible asset on either path.
- Every file is fully underwritten, and your assets are documented with statements.
Which Path Fits You?
The best program for your situation comes down to one question. Can your assets cover the loan outright, or do you need them to act like income? Lendmire is a mortgage broker, so it does not lend. It compares asset-based mortgage programs across a network of wholesale lenders and matches your statements to the program that fits.
These programs suit retirees, people who sold a business, recipients of an inheritance or settlement, early-retired professionals and households living off a portfolio. Their balances are large and their documented income is small. A borrower is qualified on one path at a time, never a blend of the two.
| Factor | Asset Qualifier | Asset Depletion |
|---|---|---|
| What it tests | Assets cover the whole loan | Assets become monthly income |
| Income documented | None | Derived from assets |
| Debt-to-income test | None documented | Yes |
| Loan range | Up to $4,000,000 | $125,000 to $3,500,000 |
| Cash-out | Set by lender, not published | 60% LTV, see below |
All figures are typical ranges through select programs, subject to underwriting.
How the Asset Qualifier Path Works
Under this path, your eligible assets, after the credit percentages below, must equal or exceed the entire loan amount. No employment or income is documented. The lender’s review rests on the assets.
Here is the sequence:
1. List every account you own and its current balance. 2. Apply the credit percentage for each account type. 3. Add the results. The total must reach the full loan amount. 4. Show that the funds are seasoned: 60 days, with two months of statements for each qualifying account. 5. Meet the credit minimum, which is 600 on this path.
Leverage on this path tops out at 80% on a purchase and 75% on a refinance of a principal residence or second home. Reserves are not required at or below 75% loan-to-value (LTV, the loan as a share of the property’s value). Above that, the lender sets them.
How the Asset Depletion Path Works
This path turns a portfolio into a paycheck on paper. The lender takes your usable assets, divides by 60 months, and treats the result as monthly income. That income must carry the full housing payment and your other debts through the debt-to-income test.
Your assets stay invested. Nothing is sold or drained. The lender only counts them as a stream of income for qualifying.
The path has firm minimums. Qualified assets must be at least the lesser of $1,000,000 or 1.25 times the loan balance. When depletion is your only income source, you also need at least $250,000 in liquid assets. If you supplement documented income with asset income, the program allows up to a 45% debt-to-income ratio, and the minimum-assets rule is waived.
Statements must be at least 120 days old at application, plus one statement within 45 days. Funds from the sale of a business, an inheritance or a legal settlement are excused from that seasoning.
This is the only path that also reaches investment property. On an investment property, the loan is business-purpose. The depletion path is the route when the property is not a rental that can carry itself on rent alone.
How Is Cash-Out Treated on Each Path?
Cash-out is where the two paths split most. Many borrowers assume both paths treat it the same. They do not.
Asset depletion path:
- Principal residence or second home: up to 80% LTV on a purchase or rate-and-term refinance, and up to 60% on a cash-out refinance.
- Investment property: up to 65% LTV on a purchase or rate-and-term refinance, and up to 60% on a cash-out refinance. Final terms depend on the lender’s guidelines, the property type, and the borrower’s complete credit picture.
Asset qualifier path: Whether cash-out is allowed, and at what leverage, is set by the individual lender and is not published. A broker can ask the right lenders before you apply.
On either path, cash-out proceeds never count as qualifying assets. The money comes from the property you are borrowing against, so it cannot also prove you can repay. The federal ability-to-repay rule points the same way. It lets a lender weigh income or assets other than the value of the dwelling securing the loan.
Which Assets Count, and for How Much?
Each path uses its own table. Never mix the percentages.
| Asset | Qualifier Path | Depletion Path |
|---|---|---|
| Brokerage accounts | 100% | Securities 80% |
| Certificates of deposit | 100% | 100% |
| Money market, savings | 100% | 100% (cash accounts) |
| 401(k) and IRA | 90% under 59½, 100% at 59½ or older | 70% at any age |
| Real-estate equity | Not listed | 60% |
Accounts combine on both paths.
Some assets are not eligible. 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 do not count.
If you own a business, the route is documented liquid assets. That means seasoned proceeds from a sale or buyout, cash, public securities and retirement accounts at their percentages above.
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. The lender then reviews the source of those funds.
A Worked Example for Each Path
These examples are illustrative. The lender’s own calculation governs, and results are subject to underwriting.
Qualifier path. Say the loan is $800,000. You hold the following:
- Brokerage accounts: $330,000, counted at 100%, which is $330,000.
- A 401(k), with you under 59½: $300,000, counted at 90%, which is $270,000.
- Savings: $200,000, counted at 100%, which is $200,000.
Usable assets total $800,000, which equals the loan. The file can qualify on assets alone, with no income documented.
Depletion path. Say you hold $1,500,000 in securities and $300,000 in cash:
- Securities at 80% count as $1,200,000.
- Cash at 100% counts as $300,000.
- Usable assets total $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 size of the assets alone does not decide the outcome. The debts do too.
What Else the Lender Checks
Assets are only part of the file. Credit still matters. The qualifier path publishes a 600 minimum score. The depletion path follows the lender’s matrix of score and loan amount. A first-time investor on the depletion path needs a 700.
Housing history is typically 0x30x12, meaning no 30-day lates in the last twelve months. One late in that window is considered case by case. Multiple bankruptcies are not eligible. On the depletion path, a housing event such as a foreclosure needs 4 years of seasoning.
This is also a consumer mortgage when it covers a principal residence or second home. Under the federal ability-to-repay rule, the lender must make a reasonable, good-faith determination that you can repay, and it must verify the assets it relies on with third-party records. That is why bank and brokerage statements are required. No income documented does not mean no review.
Alternatives to Compare Before You Choose
An asset-based mortgage is not always the right tool. Here is how the neighbors compare, each described by its own rules.
| Option | How it qualifies | Fit |
|---|---|---|
| HELOC | Lender sets its own income and equity tests | You already own the home and have some income |
| Securities-backed loan | Borrows against the portfolio itself | You want to avoid selling holdings |
| DSCR loan | Rent covering the payment, subject to lender guidelines | A rental that cash flows, business-purpose |
| Bank statement loan | Income documented through deposits | Self-employed with steady deposits |
| Selling assets | No loan at all | You want no new debt |
A pure rental with solid rent usually fits a DSCR loan better. Qualifying on assets matters most for a principal residence, a second home or an investment property that cannot carry itself on rent. Borrowing instead of selling can also preserve your holdings. 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.
Where the Rules Break Down
A few edge cases trip people up.
- Unseasoned deposits. A large deposit inside the seasoning window needs a documented source. Money that just landed from an unexplained source can be set aside. Sale-of-business, inheritance and settlement funds get the depletion path’s seasoning excuse.
- Counting the cash-out as an asset. It never counts.
- Stock in your own company. It is not eligible, so plan to convert it to cash first.
- Pledged assets. Funds already borrowed against or pledged do not count as yours.
- Mixing paths. If a file clears one path, it clears on that path’s rules alone. The percentages do not blend.
- Loan size. Asset qualifier loans stop at $4,000,000. Depletion loans stop at $3,500,000.
The best program also depends on the property. The qualifier path is for a principal residence or second home. The depletion path is the only one that reaches an investment property.
What to Gather Before You Apply
A broker can only match you to a program once the statements are in hand. Here is the checklist:
- Statements for every account you want counted, two months on the qualifier path, plus the 120-day and 45-day dates on the depletion path.
- Proof of ownership for each account.
- Terms for any retirement or restricted account.
- Your credit report and housing history.
- Documentation of your current mortgage, if refinancing.
- For sale-of-business, inheritance or settlement funds, the closing statement or court order.
Because it is a consumer mortgage on a principal residence or second home, standard consumer loan disclosures apply. The investment-property version is business-purpose.
Key Terms Defined
Asset qualifier: A path where eligible assets, after credit percentages, must cover the entire loan with no income documented.
Asset depletion: A path that divides usable assets by 60 months to create monthly income for the debt-to-income test.
Loan-to-value (LTV): The loan amount as a percentage of the property’s value.
Debt-to-income (DTI): Your monthly debts as a share of qualifying monthly income.
Seasoning: The length of time funds must sit in an account before a lender counts them.
Haircut: The share of an asset’s balance a lender subtracts when counting it.
Cash-out refinance: A new loan that pays off your old one and gives you the difference in cash.
Frequently Asked Questions
Can I use an asset-based program if I have no income at all?
Yes, on the asset qualifier path, if your eligible assets cover the whole loan. No employment or income is documented. On the depletion path, derived income must clear the debt-to-income test, and depletion as your only income needs at least $250,000 liquid. Both are subject to underwriting.
Does money in a 401(k) or IRA count?
It counts at a reduced share. On the qualifier path, retirement accounts count at 90% if you are under 59½ and 100% at 59½ or older. On the depletion path they count at 70% at any age. The assets stay invested either way.
Can I count my cash-out proceeds as qualifying assets?
No. Cash-out proceeds never count on either path. The money comes from the property itself, so it cannot prove you can repay.
What if most of my wealth is in my own company?
Privately held company stock is not an eligible asset on either path. The route is documented liquid assets, such as seasoned proceeds from a sale or buyout, cash, public securities and retirement accounts.
How do I find the best program for my situation?
It depends on where your wealth sits, the property type, your credit and how much cash you need. A broker shops multiple wholesale lenders and matches your statements to the program that fits. The programs described here are available only in the 16 states where Lendmire is licensed for consumer mortgage lending: Alabama, California, Colorado, Florida, Georgia, Indiana, Michigan, Montana, New Mexico, North Carolina, Ohio, Pennsylvania, Tennessee, Texas, Virginia and Washington.
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. Programs change, and every figure here is a typical range, not an offer or a commitment to lend.
A deeper walk-through of investment-property equity extraction lives in Lendmire’s guide to cash-out refinance on an investment property.
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.
Get Started
Ready to find the right loan for you?
See your offer in seconds. No credit pull, no obligation.
Informational only. Not a Loan Estimate, approval, or commitment to lend. Program availability and eligibility are subject to lender guidelines, credit approval, property review, and underwriting.
References
1. CFPB, Regulation Z § 1026.43 (Ability-to-Repay)
2. Cornell Legal Information Institute, 12 CFR 1026.43
This article is part of Lendmire’s asset-based mortgage program — full qualification details, guidelines, and scenarios live on the program page.
Related reading: Best Asset-Based Cash-Out Refinance Program When Your Income Is Lower Than Before · Can You Take Cash Out of a Primary Residence on an Asset-Based Mortgage? · Can You Get a Texas Asset-Based Mortgage With No Job?
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
- Mortgage Loan Originator · NMLS# 1129696 · Verify on NMLS Consumer Access
- North Carolina Real Estate Broker · License# 343312 · Verify on NCREC
- North Carolina Insurance Producer · License# 19053198 · Property, Casualty, Life, Health · Verify on NAIC SBS
- Lendmire LLC · Firm NMLS# 2371349 · Verify firm licensure
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.