The Quick Read: Cash accounts, CDs, money market funds, savings and brokerage accounts count the most, and retirement accounts count at a reduced or age-dependent share, subject to underwriting. Business-titled funds, crypto, unvested equity, gifts and borrowed money generally do not count as they stand. Tennessee does not change the list, because the account rules come from the program and the lender’s guidelines.
- On the asset qualifier path, brokerage, CDs, money market and savings count at 100%.
- On that same path, a 401(k) or IRA counts at 90% under age 59½ and 100% at 59½ or older.
- On the asset depletion path, cash and CDs count at 100%, securities at 80%, private stock at 75%, retirement at 70% and real-estate equity at 60%.
- Both paths document the assets with statements. Only the income documentation goes away.
- A borrower is qualified on one path at a time. The two tables are never blended.
A Tennessee borrower with a large portfolio and little paycheck is the typical reader here. Think of a retiree, someone who sold a business, or a household living off investments. Lendmire places these loans as a broker through select lenders in its network, and consumer mortgage lending is available to Tennessee borrowers. Every figure below is a ceiling or floor, subject to underwriting, not an offer.
Which Path Fits You: Assets Cover the Loan, or Assets Become Income?
There are two paths, and the account list means different things on each. On the asset qualifier path, eligible assets must equal or exceed the entire loan amount, and no employment or income is documented. On the asset depletion path, usable assets are divided by 60 months to create qualifying income, which then runs through the debt-to-income test.
The names get muddy in the market. “Asset-based mortgage,” “asset utilization,” “asset depletion” and “asset qualifier” are used for the same family of loans. Pin down which mechanic a lender means before you compare anything, because the percentages and the minimums differ by path.
Here is how they sit side by side:
| Factor | Asset qualifier | Asset depletion |
|---|---|---|
| What assets do | Cover the whole loan | Convert to monthly income |
| Max leverage (primary/second home) | 80% purchase, 75% refinance | 80% purchase or rate-and-term, 60% cash-out |
| Investment property | Not offered on this path | 65% purchase or 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 |
A cash-out on the qualifier path is set by the lender and is not published, so no figure should be assumed there. On the depletion path, cash-out proceeds never count as qualifying assets.
Account-by-Account: What Counts and How Much
Cash-type accounts carry the most weight on both paths. The haircut grows as the asset gets riskier or harder to reach. Here is the lookup, with each column tied to its path.
| Account type | Qualifier path | Depletion path |
|---|---|---|
| Checking and savings | 100% (savings) | 100% (cash accounts) |
| Certificates of deposit | 100% | 100% |
| Money market | 100% | 100% (cash accounts) |
| Brokerage / securities | 100% | 80% |
| Private stock | Not published | 75% |
| 401(k) and IRA | 90% under 59½, 100% at 59½+ | 70% at any age |
| Real-estate equity | Not published | 60% |
Two things surprise people. First, brokerage accounts count in full on the qualifier path but at 80% on the depletion path. Second, retirement accounts get better treatment from the qualifier path for older borrowers, and a flat 70% on the depletion path no matter the age.
Accounts combine. A borrower can stack brokerage, savings and a retirement account to reach the loan amount, subject to underwriting.
The age-based split has a logic behind it. The IRS says an early distribution from an IRA, generally before age 59½, carries a 10% additional tax on top of regular income tax. That is why a retirement balance is worth less to a lender before 59½ than after. Treat that as an explanation of the discount, not as a rule you apply yourself.
What Does Not Count (and Why)
Several holdings fall outside both tables. The reason is almost always verification, liquidity or ownership.
On the depletion path, these are not eligible:
- Custodial accounts
- Deferred compensation
- Escrow accounts
- Foreign funds
- Cash on hand
- Stock options
- Non-vested restricted stock units
- Funds from non-regulated financial companies
Cash on hand fails because no statement can prove it. Unvested stock fails because the borrower does not own it yet. Escrow money is already spoken for.
Real estate equity is a separate case. It counts at 60% on the depletion path only, and not at all on the qualifier path. The federal ability-to-repay text for consumer mortgages looks at income or assets “other than the value of the dwelling” that secures the loan. So the equity in the home you are buying never counts as an asset for that purchase.
The Gray Zone: Crypto, Metals, Business Accounts and Borrowed Funds
Crypto, precious metals, collectibles, business accounts beyond your ownership share, and pledged or borrowed funds are not published as eligible on either path. Say so plainly. Nobody should plan a file around a percentage for them.
The documented route is conversion. Sell the asset, move the proceeds into a seasoned cash balance in a regulated account, and let the lender review the source of the funds. That takes planning, because the seasoning clock starts when the money lands in the account.
Business accounts need extra care. Funds that sit in an operating account titled to a company raise ownership and access questions, and most reviewers want proof of the borrower’s share. Moving your share into a personal account early, with a paper trail, is the usual fix.
Gift money is the same story. It is not an eligible asset on its own, so it should never be the thing holding up a qualifier-path file.
Does Tennessee Change Anything?
No. The program figures do not change by state. The percentages, the 60-month divisor, the seasoning periods and the loan limits are the same for a borrower in Nashville, Knoxville or Memphis as for a borrower anywhere else the program is offered.
What Tennessee changes is context. Property prices, insurance and local costs differ, and those affect how much loan you need, not which accounts count. A relocating buyer often arrives with a large portfolio and no local job. That fits the profile this program was built for. Still, treat state facts as background and never as a program rule.
Consumer mortgage lending through Lendmire is licensed in 16 states, and Tennessee is one of them.
Ownership, Titling and Joint Accounts
The account has to belong to the borrower, be accessible and be backed by statements. Lenders read the title on the statement before they read the balance.
A few patterns come up on files:
- Individual accounts are the cleanest, because ownership is plain.
- Joint accounts generally work when the borrower is a named owner, though each lender reviews the other holder’s access.
- Trust accounts can count with documented access to the funds. The question is whether the borrower can withdraw without anyone else’s consent.
- Entity accounts raise the most questions, and the borrower’s ownership share is what gets counted.
The federal ability-to-repay rule calls for third-party records that provide reasonably reliable evidence of income or assets. In practice that means real statements, not screenshots and not a letter from a bank.
Worked Example: Turning a Portfolio Into a Countable Pool
These numbers are illustrative only, and the lender’s own calculation governs.
Qualifier path. Say a borrower wants an $800,000 loan. They hold $330,000 in brokerage accounts (counted at 100%, so $330,000), $300,000 in a 401(k) while under 59½ (counted at 90%, so $270,000) and $200,000 in savings (counted at 100%, so $200,000). That adds up to $800,000 of usable assets, which equals the loan. The file is reviewed on assets alone, subject to underwriting. Credit still applies, with a 600 minimum score on this path.
Depletion path. Say a borrower holds $1,500,000 in securities and $300,000 in cash. The securities count at 80%, which is $1,200,000. The cash counts at 100%, which is $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 other debts through the debt-to-income test.
The depletion path has minimums too. Qualified assets must be at least the lesser of $1,000,000 or 1.25 times the loan balance. When depletion is the only source of income, liquid assets can never fall below $250,000. If assets only supplement documented income, the minimum-assets rule is waived, and total debt-to-income can run up to 45%.
Holding the same wealth in different accounts changes the outcome. A borrower with all of it in a 401(k) under 59½ gets 90% credit on the qualifier path but only 70% on the depletion path. Cash gets 100% on both.
Prepare Your Accounts Before You Apply
Most preventable problems on these files are about seasoning and statements. The assets are documented on both paths. “No income documentation” does not mean no documentation.
1. Pull full statements. Every page, every account, with your name and the account number visible.
2. Check the seasoning clock. The qualifier path wants 60 days of seasoning and two months of statements for each qualifying account. The depletion path wants statements at least 120 days old at application plus the most recent one within 45 days. Funds from the sale of a business, an inheritance or a legal settlement are excused from that seasoning on the depletion path.
3. Explain large deposits. An unexplained transfer is the most common reason a reviewer stops and asks questions. Keep the paper trail for any move between accounts.
4. Convert gray-zone holdings early. If crypto or metals are part of the picture, sell and season the cash before you apply.
5. Don’t double-count. Money used for the down payment and closing costs cannot also be a qualifying asset. A pledged asset has to stay in place.
6. Check credit. Housing history of 0x30x12 is the target, and one 30-day late 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. A first-time investor on the depletion path needs a 700 score.
For the retirement side specifically, Lendmire also explains how to count retirement accounts as reserves.
Three Borrower Scenarios
The retiree with mostly IRAs. Picture a 62-year-old with most of their wealth in retirement accounts. On the qualifier path they get 100% credit, since they are past 59½. That makes the qualifier path the natural first look, with the asset total set against the full loan amount. On the depletion path the same balance counts at 70%, so the math is tighter.
The recent business seller. Say you sold a company and the proceeds sit in a brokerage account and a CD. Both count at 100% on the qualifier path. On the depletion path, sale-of-business funds are excused from the seasoning rule, which helps if the money has not sat long. The proceeds need to be in your name, in a regulated account, with the source documented.
The relocating professional. Consider someone moving to Tennessee after leaving a job, holding a taxable portfolio and some savings. They are under 59½, so any 401(k) counts at 90% on the qualifier path. If the portfolio is mostly securities, the depletion path haircut of 80% matters more. The choice between paths comes down to which one the account mix supports.
Where This Sits Next to Rental Financing
Assets work differently on an investor rental. A DSCR loan is reviewed primarily on property-level rental income covering the payment, subject to lender guidelines, and assets are tested only as reserves. That is a different product from the asset-based mortgage here. Business-purpose rental financing runs through DSCR, and the asset depletion path is the only one here that can be used on an investment property. Lendmire’s complete DSCR loans guide walks through that side. Tax treatment varies by borrower; consult a qualified professional.
Key Terms Defined
Asset qualifier: A path where eligible assets, after credit percentages, must equal or exceed the whole loan, with no income documented.
Asset depletion: A path that divides usable assets by 60 months to produce monthly qualifying income.
Haircut: The share of a balance a lender does not count, taken because of risk, liquidity or access.
Seasoning: The time funds have sat in an account, shown by statements, before the lender will count them.
Usable assets: The total left after each account’s percentage is applied.
Frequently Asked Questions
Do retirement accounts count if I am not retired?
Yes, typically. The account has to be vested and accessible, and no minimum age or active withdrawals are required. The share that counts depends on the path. The qualifier path counts a 401(k) or IRA at 90% under 59½ and 100% at 59½ or older. The depletion path counts retirement at 70% at any age, subject to underwriting.
Can I use crypto or precious metals?
Not as they stand. Neither is published as eligible on either path. The documented route is selling the asset and holding the proceeds as a seasoned cash balance in a regulated account, with the source of funds reviewed by the lender.
Does the same account count the same on both paths?
No. Brokerage counts at 100% on the qualifier path and securities at 80% on the depletion path. Retirement is 90% or 100% by age on the qualifier path and 70% on the depletion path. Always name the path before comparing a figure.
Can I use my home equity or a business account?
Equity in the home you are buying never counts toward that purchase. Real-estate equity counts at 60% on the depletion path only. Business accounts count only to the extent of your ownership share, and reviewers want proof of access, so many borrowers move their share into a personal account first.
Is there a Tennessee-specific list of eligible accounts?
No. The list comes from the program and lender guidelines, and it is the same for a Tennessee borrower as anywhere else the program is offered. State-level facts such as prices and insurance affect the loan you need, not which accounts count.
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.
About Lendmire
Lendmire (NMLS# 2371349) is a mortgage broker licensed for consumer lending in 16 states. Scotsman Guide named Lendmire a Top Mortgage Workplace in both 2025 and 2026.
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References
2. Cornell LII, 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: How Long Should Money Sit in an Account Before an Asset-Based Mortgage Application? · Does a Securities-Backed Line of Credit Hurt Your Asset-Based Mortgage Application? · Joint vs Individual Accounts on an Asset Depletion Mortgage
Guides: Asset-Based Mortgage in Tennessee
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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Compliance and disclosures. Lendmire (NMLS# 2371349) is a licensed mortgage broker and is not a direct lender, depository institution, financial advisor, or tax professional. Content in this article is general market analysis and educational information — not financial, legal, or tax advice for any specific situation. Lendmire does not guarantee loan approval; every transaction is subject to underwriting by the funding lender. Mortgage pricing and loan program guidelines are subject to change at any time without notice and vary by borrower characteristics, property type, and state regulations. Lendmire complies with Equal Housing Opportunity. Licensure verification: NMLS Consumer Access.