The Quick Read: Usually, personally titled cash, CDs, money market, savings, brokerage holdings and vested retirement accounts count, each at a share of its balance set by the path you use, while business funds, crypto, gifts, borrowed money and the equity in the property you are financing generally do not count. The share that counts is not the same on both paths, so the path decides the answer.
- On the asset qualifier path, eligible balances must cover the whole loan. No employment or income is documented.
- On the asset depletion path, usable assets divided by 60 months become qualifying monthly income. That income runs through the debt-to-income test.
- The program figures are the same for a Texas borrower as for any other. Every figure is subject to underwriting, and the lender’s own calculation governs.
- Crypto, precious metals, collectibles and pledged funds are not published as eligible on either path. The documented route is converting them to a seasoned cash balance in a regulated account.
- Statements are required on both paths. “No income documentation” never means “no documentation.”
This guide is for the cash-heavy, income-light borrower. Think of a retiree, someone who sold a business, an heir, a settlement recipient, an early-retired professional, or a household living off a portfolio. Balances are large. Documented income is small. The question is which of those balances a lender will actually use.
Which Path Fits You: Assets Cover the Loan, or Assets Become Income?
Pick the path before you count anything. A borrower is qualified on one path at a time, and the two use different percentages. Blending them is a common mistake on a first call.
The asset qualifier path asks one question. After the credit percentages below, do your eligible assets equal or exceed the entire loan amount? If yes, the file is reviewed on assets alone, subject to underwriting. It runs up to 80% loan-to-value on a purchase and 75% on a refinance, on a principal residence or second home. Loans go up to $4,000,000. The credit floor is 600. Whether cash-out is available on this path is set by the lender, so don’t plan around it.
The asset depletion path turns assets into income. Usable assets are divided by 60 months, and the result must carry the full housing payment plus your other debts through the debt-to-income test. Leverage is up to 80% on a purchase or rate-and-term refinance and 60% on a cash-out refinance for a principal residence or second home. For an investment property, the figures are up to 65% on a purchase or rate-and-term refinance and 60% on a cash-out. Loan amounts run from $125,000 to $3,500,000. This is the only path that reaches investment property.
Across the wholesale network, the qualifier path suits borrowers whose assets are larger than the loan. The depletion path suits borrowers who want to keep a large share of their assets in reserve, or who are buying a rental.
How Each Account Type Counts
The table below is the core of the answer. Percentages are the share of the balance that counts, through select programs and subject to underwriting.
| Account | Qualifier path | Depletion path |
|---|---|---|
| Checking, savings | Savings 100% | Cash accounts 100% |
| Money market | 100% | Cash accounts 100% |
| Certificates of deposit | 100% | 100% |
| Brokerage (stocks, bonds, funds) | 100% | Securities 80% |
| Privately held stock | Not eligible | Not eligible |
| 401(k) and IRA | 90% under 59½, 100% at 59½+ | 70% at any age |
| Real-estate equity | Not published | 60% |
| Crypto, metals, collectibles | Not published as eligible | Not published as eligible |
Qualifier-path accounts combine, so a brokerage account, a retirement account and savings can all add to the same total. Real-estate equity on the depletion path is not equity in the home being financed. A lender is reviewing the rest of your balance sheet, not the collateral.
Privately held stock is not eligible on either path. A founder’s route is a sale or buyout converted to a seasoned cash balance.
What Never Counts, and Why
Several reasons explain almost every exclusion: price volatility, access, ownership and source.
Not eligible on the depletion path:
- Custodial accounts
- Deferred compensation
- Escrow accounts
- Foreign funds
- Cash on hand
- Privately held stock
- Stock options
- Non-vested restricted stock units
- Funds from non-regulated financial companies
Not published as eligible on either path:
- Cryptocurrency
- Precious metals and collectibles
- Business accounts beyond your ownership share
- Pledged or borrowed funds
- Cash-out proceeds from the loan itself
Cash-out proceeds never count as qualifying assets on the depletion path. A lender won’t count money the loan itself creates.
Gifts and unseasoned deposits sit in the same bucket. They can enter the file only after they meet the seasoning rules below. The depletion path excuses sale-of-business, inheritance and legal-settlement funds from the seasoning clock, but those funds are still documented and sourced.
The documented route for anything off the list is simple. Sell it or convert it. Move the proceeds to a cash balance in a regulated account. Let it season. The lender then reviews the source. That is a path, not a promise. Lendmire’s piece Which Accounts Do Not Count on an Asset-Based Mortgage? goes deeper on the exclusions.
Retirement Accounts: Age, Access and the 70% Question
On the qualifier path, a 401(k) or IRA counts at 90% under age 59½ and 100% at 59½ or older. On the depletion path, retirement accounts count at 70% at any age. Age doesn’t change the depletion figure.
The 59½ line matches how the tax code treats withdrawals. The IRS describes distributions before age 59½ as early distributions, and an additional 10% tax applies unless an exception fits. The qualifier-path step-up at 59½ follows that line. Whatever the reason behind a haircut, the effect is the same: a retirement balance on a statement overstates what a lender will use.
Two practical points keep these files clean.
- Vesting and access. The balance must be vested and reachable. A statement showing an unvested employer match or a locked plan balance will be reduced or set aside.
- No pledge. Your retirement funds are reviewed, not liquidated, and they stay invested. The property is the collateral, not the account. If a program asks for a pledge or lien on the account, treat that as a different product and ask why.
Seasoning and Statements: Where Files Actually Stall
Eligible account types don’t sink most files. Seasoning and unexplained deposits do.
On the qualifier path, each qualifying account needs 60 days of seasoning and two months of statements. On the depletion path, statements must be at least 120 days old at application, plus the most recent statement within 45 days. Both paths document assets in full. Both reviews trace large deposits.
A typical stalled file looks like this. A borrower moves money from a brokerage account to checking to “tidy up” before applying. The statements now show a large deposit with a matching withdrawal elsewhere, and the new balance has no history. The underwriter asks for sourcing, and the borrower has to explain a move that didn’t need to happen.
Leave the accounts where they are. Gather full statements, every page, for each account you want counted. Mark which funds are earmarked for the down payment and closing costs, because those leave the usable pool.
How the Math Works
These are illustrations, not offers. The lender’s own calculation governs.
Qualifier path. Say you are seeking an $800,000 loan. You hold $330,000 in brokerage accounts (counted at 100%, so $330,000), $300,000 in a 401(k) while under 59½ (90%, so $270,000) and $200,000 in savings (100%, so $200,000). Usable assets total $800,000. That equals the loan, so the file is reviewed on assets alone, subject to underwriting. No income is documented.
Depletion path. Say you hold $1,500,000 in securities (80%, so $1,200,000) and $300,000 in cash (100%, so $300,000). Usable assets are $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. 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 asset depletion is your only income source. Derived income can also supplement documented income, up to a 45% debt-to-income ratio. When it supplements, the minimum-assets rule is waived.
A usable pool that exactly meets the loan has no cushion for a market drop between application and closing. Brokerage balances move. Run both paths with a margin.
Texas: What Changes and What Doesn’t
The program figures do not change for a Texas borrower. Percentages, divisors, seasoning and leverage ceilings are the same in every state where the consumer program is placed. Lendmire is licensed for consumer mortgage lending in 16 states, and Texas is one of them. Lendmire is the broker. It arranges placement with select lenders in its network, and those lenders review and decide.
Where Texas matters is on the periphery. It matters for local prices, the insurance and tax load on the property, and any state rules on cash-out against a homestead. None of that sets which accounts count. If you plan a cash-out refinance, confirm state-specific cash-out requirements with the lender up front, separate from the asset review.
Ownership is the other practical Texas question. Accounts count when the borrower on the loan is the titled owner. A spouse’s separate account is a different case. Lenders differ on whether and how it can be used, and what ownership documents they want. Raise it at the start. A file that assumes a spouse’s account counts, then learns it doesn’t, has to be rebuilt.
If your assets sit in a trust or in a business entity, expect a closer look. Trust accounts can work when you are the sole beneficiary or an authorized signer, and lenders differ on the details. Business-titled funds are the harder case, since only your ownership share is even in the conversation.
Qualifier Path or Depletion Path? A Decision Table
| Factor | Qualifier path | Depletion path |
|---|---|---|
| Property use | Principal residence, second home | Also investment property |
| Income documented | None | Derived from assets |
| Purchase leverage | Up to 80% | Up to 80% (65% on investment property) |
| Retirement account | 90% or 100% by age | 70% at any age |
| Loan amount | Up to $4,000,000 | $125,000 to $3,500,000 |
Pick the qualifier path when your eligible assets exceed the loan and the property is your home. Pick depletion when you want to keep assets in reserve, or when the property is a rental. Rental buyers should also compare a DSCR loan, where the lender reads the lease and not your balance sheet.
Credit and Housing History
Assets don’t replace credit. The qualifier path publishes a 600 minimum score. The depletion path follows the lender’s score and loan-amount matrix. A first-time investor on the depletion path needs a 700. Housing history is 0x30x12, though one 30-day late in the last twelve months is considered case by case. Multiple bankruptcies are not eligible, and a housing event needs four years of seasoning on the depletion path.
Because this is a consumer mortgage, standard consumer disclosures apply to the file.
What the Rule Actually Says
The federal framework is lighter on specifics than most borrowers expect. The CFPB’s Regulation Z commentary on ability to repay says a creditor may base repayment ability on income, on assets other than the dwelling securing the loan, or on both. It lists examples of assets, including savings or checking funds, vested retirement amounts, stocks, bonds, certificates of deposit and trust funds. It also says a creditor need consider only the income or assets necessary to support the repayment decision.
The rule does not set a divisor, a haircut percentage or a debt-to-income ceiling. Each program publishes its own table, which is why the percentages above differ by path. The “other than the dwelling” language is also why the home you are financing never counts as your repayment source.
Tax treatment varies; consult a qualified professional.
Key Terms Defined
Asset qualifier: A path where eligible assets, after credit percentages, must cover the entire loan amount and no income is documented.
Asset depletion: A path where usable assets divided by 60 months become qualifying monthly income for the debt-to-income test.
Haircut: The share of an account’s balance a lender does not count, such as the 30% reduction on retirement funds on the depletion path.
Seasoning: The length of time funds have been in an account, shown by statements, before the lender will count them.
Usable assets: The balance left after credit percentages and after removing funds needed for the down payment and closing costs.
Debt-to-income: Monthly debts, including the new housing payment, compared with monthly qualifying income.
Common Mistakes
1. Counting face value. Statement totals overstate usable assets. Apply the percentages first.
2. Moving money before applying. Transfers create deposits to explain and accounts with no history.
3. Counting the down payment twice. Funds for closing leave the pool.
4. Mixing paths. Qualifier-path percentages don’t apply on depletion, and the reverse.
5. Assuming crypto counts. Convert it to a seasoned cash balance in a regulated account first.
6. Assuming no documents. Assets are documented in full on both paths.
Frequently Asked Questions
Do I have to sell my investments to use them?
No. Brokerage and retirement balances are reviewed, not liquidated, and they stay invested. The lender counts them at the path’s percentage. You still need to document them with statements, and the money for your down payment and closing costs comes out of the usable pool.
Does a 401(k) count if I’m under 59½?
Yes, on both paths, at a reduced share. On the qualifier path it counts at 90% under 59½ and 100% at 59½ or older. On the depletion path it counts at 70% at any age. The balance must be vested and reachable, and the percentages are subject to underwriting.
Does home equity count?
Equity in the home being financed does not. Real-estate equity from other property can count at 60% on the depletion path. The qualifier path doesn’t publish real-estate equity as eligible.
Can I use crypto, a business account or private company stock?
None of them is eligible as held. Privately held stock is not eligible on either path, and crypto and business funds beyond your ownership share are not published as eligible. The documented route is converting them to a seasoned cash balance in a regulated account, with the lender reviewing the source.
Is this the same as a DSCR loan?
No. An asset-based mortgage reads your balance sheet. A DSCR loan reads the property’s rent against its payment. On a rental purchase, the two can be compared, and the depletion path is the only asset-based route that reaches investment property.
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. Lendmire arranges these loans through select lenders in its network, and all figures remain subject to underwriting and lender guidelines. Reach the team at 828-256-2183 or request a quote at Lendmire’s quote page.
For current guidelines and terms, see Lendmire’s asset-based mortgage programs page.
Lendmire’s asset-based mortgage in Texas page presents the program for Texas borrowers.
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
1. IRS: Retirement topics, exceptions to tax on early distributions
2. CFPB Regulation Z §1026.43, ability-to-repay official 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 Much of a Brokerage Account Counts Toward a Texas Asset Qualifier Mortgage? · Can a Texas Landlord in Retirement Get a Mortgage on Rents and Savings? · Does a Pennsylvania Asset-Based Mortgage Require Tax Returns?
Guides: Asset-Based Mortgage in Texas
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.