The Quick Read: The best program for a one-income household is the one where your account statements carry the file instead of your paycheck. Either your eligible assets cover the whole loan, or they convert into monthly qualifying income that carries the payment. Which path fits depends on your balances, property, credit and how much cash you want out, subject to underwriting.
- Assets cover the loan: the asset qualifier path documents no employment or income, and eligible assets must equal or exceed the entire loan.
- Assets become income: the asset depletion path divides usable assets by 60 months, then runs the result through a debt-to-income test.
- Cash-out leverage: on the depletion path it is 60% on a principal residence, second home or investment property, through select programs.
- Borrowed cash does not count: cash-out proceeds never count as qualifying assets.
- Still fully underwritten: you skip traditional personal-income documentation, pay stubs and employment verification. You do not skip documentation. Statements, credit and the property are all reviewed.
What Does “One Income” Actually Mean?
“One income” means three different things, and each changes the file differently. Most online pages never separate them, so sort yourself first.
A single-earner household. One spouse earns, the other does not. A conventional lender counts only that paycheck against your debts. Assets can fill the gap.
One income stream. You are self-employed or run one business. Tax returns often show write-offs that shrink your qualifying income. Your balance sheet may look far stronger than your return does.
One income that is not enough for the loan you want. The paycheck is real but too small for the payment on a cash-out. The depletion path can supplement it. More on that below.
Here is the broker’s view. A single income is not a weakness in this program. A thin paper trail of income is only a problem if your assets are also thin. If your balances are large, you have a route. If they are not, no program can invent one.
Key Terms Defined
Cash-out refinance: a new, larger mortgage that pays off the old one and hands you the difference in cash.
Asset qualifier path: qualifying on assets alone, with no employment or income documented.
Asset depletion path: converting usable assets into monthly income by dividing them over 60 months.
Haircut: the share of an account’s balance a lender refuses to count. A 70% credit means a 30% haircut.
Seasoning: how long funds have sat in your accounts before a lender trusts them.
Debt-to-income ratio (DTI): your monthly debts, including the new housing payment, as a share of monthly income.
The Two Asset-Based Paths, Side by Side
A borrower is reviewed on one path at a time, never a blend of both. Across the wholesale network, the asset-based mortgage programs that place these loans split cleanly this way. Figures below are ceilings and floors from select programs, subject to underwriting, not offers.
| Factor | Asset qualifier | Asset depletion |
|---|---|---|
| How assets are used | Cover the whole loan | Converted to monthly income |
| Income documented | None | Derived income through DTI |
| Purchase leverage | Up to 80% | Up to 80% primary or second; 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 |
| Seasoning | 60 days; two months of statements | Statements 120 days old plus one within 45 days |
| Credit | 600 minimum | The lender’s matrix |
Read the cash-out row carefully. On the qualifier path, the 75% figure is for a refinance on a principal residence or second home. Whether cash-out proceeds are allowed on that path, and at what leverage, is set by the lender and is not published. Expect that conversation to happen file by file.
On the depletion path, cash-out is published: 60% on a principal residence or second home, and 60% on an investment property. That makes depletion the clearer cash-out route for most one-income borrowers.
How Assets Become Qualifying Income
On the depletion path, underwriting follows a fixed sequence. Here is how the file is treated, step by step.
1. List your accounts. Cash and certificates of deposit count at 100%. Securities count at 80%. Retirement accounts count at 70% at any age. Real-estate equity counts at 60%.
2. Apply the haircuts. The result is your usable assets.
3. Divide by 60. Usable assets over 60 months become monthly qualifying income.
4. Run the DTI test. That derived income must carry the new housing payment plus your other debts.
5. Check the minimums. Qualified assets must be at least the lesser of $1,000,000 or 1.25 times the loan balance. They must never fall below $250,000 liquid when depletion is your only income source.
6. Check statements and credit. Statements must be at least 120 days old at application, plus the latest one within 45 days. Credit follows the lender’s matrix.
Worked example, depletion path (illustrative only). Say you hold $1,500,000 in securities and $300,000 in cash. The securities count at 80%, or $1,200,000. The cash counts at 100%, or $300,000. Usable assets are $1,500,000. Divided by 60 months, that is $25,000 of monthly qualifying income. That figure then has to carry the housing payment and other debts through the DTI test. The lender’s own calculation governs.
Worked example, qualifier path (illustrative only). Take an $800,000 loan. You hold $330,000 in brokerage accounts at 100%, so $330,000 counts. You hold $300,000 in a 401(k) at age 55, under 59½, at 90%, so $270,000 counts. You hold $200,000 in savings at 100%, so $200,000 counts. Total usable assets are $800,000, which equals the loan. That is reviewed on assets alone, with no employment or income documented. At 59½ or older, the 401(k) would count at 100%.
Notice the difference. The qualifier path asks whether your assets equal the loan. The depletion path asks whether your assets produce enough income. A single-earner household with a large portfolio and a modest loan often fits qualifier. A household that wants a larger cash-out often fits depletion.
Can You Combine Asset Income With the One Income You Have?
Yes, on the depletion path. Asset-derived income can supplement documented income up to a 45% debt-to-income ratio. When it supplements, the minimum-assets rule is waived.
This matters for a single earner. Say your paycheck covers most of the new payment but not all of it. Assets can fill the shortfall instead of carrying the whole load. You then document that income under the applicable program, subject to lender guidelines.
There is a tradeoff. Documenting income adds paperwork and brings the paycheck’s stability under review. Qualifying on assets alone is cleaner when your balances are strong enough. This one is a genuine toss-up for borrowers near the threshold. The cleaner file wins when the numbers allow it. The supplement wins when they don’t.
Cash-Out Rules That Trip People Up
Borrowed cash never counts. Cash-out proceeds cannot be used as qualifying assets, and pledged or borrowed funds are not published as eligible. Many borrowers expect the new cash to help them qualify for the loan that produces it. It does not.
Privately held company stock is not an eligible asset on either path. That is the rule. A founder or shareholder with a large closely held stake qualifies through documented liquid assets: seasoned proceeds from a sale or buyout, cash, public securities and retirement accounts at their haircuts.
Some asset types are not eligible 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.
Other asset classes are not published as eligible on either path. Cryptocurrency, precious metals, collectibles, business accounts beyond your ownership share, and pledged or borrowed funds all fall here. The documented route is converting them to a seasoned cash balance in a regulated account, with the source reviewed by the lender. Sale-of-business, inheritance and legal-settlement funds are excused from the depletion path’s seasoning.
Credit still matters. The qualifier path publishes a 600 minimum. The depletion path follows the lender’s matrix. A first-time investor on the depletion path needs 700. Housing history is 0x30x12, and one late payment in the last twelve months is considered case by case. Multiple bankruptcies are not eligible. A housing event needs 4 years of seasoning on the depletion path.
Principal Residence, Second Home or Investment Property?
Principal residences and second homes work on both paths. Investment property works only on the depletion path, at lower leverage: 65% on a purchase or rate-and-term refinance, and 60% on a cash-out.
Business-purpose rules explain why investment property is treated differently. Under the Federal Register’s ability-to-repay rule, investment-purpose loans are considered business-purpose loans. The Federal Reserve’s Regulation Z manual adds that credit to acquire or improve non-owner-occupied rental property is business-purpose credit. A business-purpose loan is reviewed differently from a standard owner-occupied mortgage. That is all you need to know here.
If you want to qualify a rental on its rent rather than your assets, that is a DSCR loan, a separate product built for business-purpose rental financing. This program is for borrowers qualifying on balances.
Choosing the Best Program for Your Situation
No single program is the best. The best program for your situation comes from matching your balance sheet to the right path. A broker that shops several wholesale lenders can do that matching. A single lender can only offer its own matrix.
| Your profile | Path to explore first |
|---|---|
| Large cash, brokerage and CD balances; modest loan | Asset qualifier |
| Retiree with a big retirement account, over 59½ | Asset qualifier (100% credit) |
| Large portfolio; wants meaningful cash-out | Asset depletion |
| Paycheck covers most of the payment | Depletion as a supplement, up to 45% DTI |
| Wealth mostly in a closely held company | Convert to seasoned cash first |
| Wants to buy or refinance a rental | Depletion, at 65% and 60% leverage |
The decision usually comes down to three questions. Do your eligible assets equal the loan? If not, do they produce enough income? And how much of your wealth sits in accounts the program refuses to count?
When Another Product Fits Better
Asset-based is not always the right tool. Be honest about the alternatives.
- Bank statement loans are for borrowers who document income with deposits, such as self-employed owners with steady business cash flow. If your income is real but hard to show on tax returns, that fits better than leaning on assets.
- A HELOC may fit if you only need a smaller amount and want to keep an existing first mortgage in place. That is a different product with its own rules.
- Agency conventional and full-doc jumbo loans depend on documented income under those programs’ rules. A strong one-income earner with clean tax returns may do fine there.
- DSCR loans fit rentals qualified on the property’s rent.
What you want decides this. If you have wealth but little documented income, asset-based fits. If you have income that is hard to document, bank statement fits. If you are buying a rental that pays for itself, DSCR fits.
Your Document Checklist
Underwriting is a full review. You skip traditional personal-income documentation, pay stubs and employment verification. You do not skip these:
- Statements for every qualifying account, with two months of statements per account on the qualifier path
- Statements at least 120 days old plus the latest within 45 days, on the depletion path
- Proof of source for large recent deposits, such as a sale, inheritance or settlement
- Credit reports and housing payment history
- The current mortgage statement and property information
- Insurance and, for supplemented files, documented income
Start gathering these before you apply. Statement age is the common surprise on the depletion path.
The Single-Income Risk Nobody Mentions
A single income raises one question. What if the paycheck stops?
The asset-based structure helps here. The qualifier path rests on balances, not employment. The depletion path divides assets over 60 months, but the loan itself is not a 60-month loan. Your payment continues on the loan’s own schedule, and your assets keep earning or sitting in your accounts.
Still, the risk is real. A larger cash-out raises the payment and lowers your equity cushion. Pulling less cash is often wiser than pulling the maximum. Leave room for a bad year.
Frequently Asked Questions
Can I qualify if only one spouse has income?
Yes, through either path. The qualifier path documents no employment or income, so household earnings do not matter. The depletion path converts assets into qualifying income, which can carry the payment alone or supplement the one paycheck up to a 45% debt-to-income ratio. Both are subject to underwriting and lender guidelines.
Do I need tax returns, pay stubs or employment verification?
No traditional personal-income documentation, pay stubs or employment verification are used on the qualifier path. The assets are documented with statements, and the file is fully underwritten. If you supplement documented income on the depletion path, that income is documented under the applicable program.
Is cash-out available on both paths?
On the depletion path, cash-out is published at 60% on a principal residence, second home or investment property. On the qualifier path, cash-out availability and leverage are set by the lender and not published. The published refinance ceiling on that path is 75%. Those figures apply through select programs, subject to underwriting.
Does my company stock count?
No. Publicly traded securities count at 80% on the depletion path. If you sell or convert company shares, the proceeds count once they are seasoned cash in a regulated account.
How much in assets do I need?
On the qualifier path, eligible assets after the credit percentages must equal or exceed the whole loan. On the depletion path, qualified assets must be at least the lesser of $1,000,000 or 1.25 times the loan balance, and never below $250,000 liquid when depletion is your only income source.
Next Steps
This program is available through select lenders for consumer mortgage lending in the 16 states where Lendmire is licensed: Alabama, California, Colorado, Florida, Georgia, Indiana, Michigan, Montana, New Mexico, North Carolina, Ohio, Pennsylvania, Tennessee, Texas, Virginia and Washington. Lendmire is a mortgage broker, not a lender, and approval is never guaranteed.
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.
Investors weighing their equity options can start with 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. Federal Register: Ability-to-Repay and Qualified Mortgage Standards
2. Federal Reserve: Regulation Z supervisory manual
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 for Retirees Living on Fixed Income · Best Asset-Based Cash-Out Refinance Program for a Founder Before a Liquidity Event · Best Asset-Based Cash-Out Refinance Program in Retirement Without a Regular Paycheck
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
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.