The Quick Read: Cash, savings, money market, CDs, brokerage accounts and, through select programs, retirement accounts count, each at a percentage that depends on the path. Borrowed funds and most business or crypto holdings do not count as-is. Real estate equity counts only on the asset depletion path, at 60%.
- On the asset qualifier path, brokerage, CDs, money market and savings count at 100%. Retirement accounts count at 90% under age 59½ and 100% after.
- 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. Only the income is left out of the file.
- A borrower is qualified on one path at a time, so the two tables never blend.
- Every figure is subject to underwriting, and the lender’s own calculation governs.
Washington borrowers often hold more in accounts than they show in income. That includes retirees, people who sold a business, and households living off a portfolio. For them, the question is which balances the lender will credit, and at what share.
Which Path Fits You?
Lendmire arranges asset-based financing in two ways: your assets can cover the loan, or they can be converted into qualifying income.
The asset qualifier path asks one thing: do your eligible assets, after the percentages below, equal or exceed the entire loan amount? If yes, no employment or income is documented. Loans run up to $4,000,000 through select programs, with leverage up to 80% on a purchase and 75% on a refinance of a principal residence or second home. Exact terms depend on the lender’s guidelines, property type, leverage, and a full review of the borrower’s file.
The asset depletion path works differently. Usable assets are divided by 60 months to create a monthly qualifying income. That income has to carry the housing payment and other debts through the debt-to-income test. Loan amounts run from $125,000 to $3,500,000.
Which one fits? A retiree with a large portfolio and a modest loan usually fits the qualifier path, because the assets simply cover the loan. A borrower whose assets are large but not large enough to cover the loan outright may need depletion, where the assets turn into income.
Property type also sorts the paths. The qualifier path is a consumer mortgage on a principal residence or second home. The depletion path covers those same two occupancies and also investment property, where the loan is business-purpose.
A rental purchase reviewed mainly on the property’s rent is a separate business-purpose product, not the loan described here.
What Counts on the Asset Qualifier Path
Here is the share of each balance that counts on this path:
| Account type | Share that counts |
|---|---|
| Brokerage accounts | 100% |
| Certificates of deposit | 100% |
| Money market | 100% |
| Savings | 100% |
| 401(k) and IRA, under 59½ | 90% |
| 401(k) and IRA, 59½ or older | 100% |
Accounts combine. You can stack brokerage, savings and retirement balances to reach the loan amount.
Take an $800,000 loan. Say the borrower holds $330,000 in brokerage accounts, $300,000 in a 401(k) and $200,000 in savings, and is under 59½. Brokerage counts at 100%, which is $330,000. The 401(k) counts at 90%, which is $270,000. Savings count at 100%, which is $200,000. That totals $800,000 of usable assets, so the file is reviewed on assets alone. This is illustrative, and the lender’s own calculation governs.
The retirement haircut under 59½ reflects withdrawal cost. The IRS applies a 10% additional tax to most IRA distributions taken before age 59½. The balance is not withdrawn for qualifying, but the discount follows that cost.
Credit still matters. The published floor on this path is a 600 score, subject to underwriting. Reserves are not required at or below 75% loan-to-value, and above that the lender sets them. Cash-out on this path is set by the lender and is not published, so plan around purchase and rate-and-term.
What Counts on the Asset Depletion Path
The haircuts are steeper here, because the balance becomes income rather than covering the loan.
| Account type | Share that counts |
|---|---|
| Cash accounts | 100% |
| Certificates of deposit | 100% |
| Securities | 80% |
| Private stock | 75% |
| Retirement accounts (any age) | 70% |
| Real-estate equity | 60% |
Run the sanctioned example. A borrower holds $1,500,000 in securities and $300,000 in cash. Securities count at 80%, which is $1,200,000. Cash counts at 100%, which is $300,000. Usable assets are $1,500,000. Divided by 60 months, that is $25,000 of monthly qualifying income. That income then carries the housing payment and other debts through the debt-to-income test.
Two minimums apply. Qualified assets must be at least the lesser of $1,000,000 or 1.25 times the loan balance. When depletion is the only income source, liquid assets can never fall below $250,000. If asset income only supplements documented income, it can do so up to a 45% debt-to-income ratio, and the minimum-assets rule is waived.
Leverage differs by occupancy. On a principal residence or second home, it runs up to 80% on a purchase or rate-and-term refinance and 60% on a cash-out refinance. Cash-out proceeds never count as qualifying assets.
Credit follows the lender’s matrix on this path. A first-time investor needs a 700 score. Housing history is 0x30x12, and 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.
What Does Not Count
Several account types come up often, and most do not count as-is.
- Real estate equity on the qualifier path. It is not on the credit list there. On the depletion path it counts at 60%.
- Custodial accounts, deferred compensation and escrow accounts. These are not eligible on the depletion path.
- Foreign funds and cash on hand. Neither is eligible on the depletion path.
- Stock options and non-vested restricted stock units. Neither counts, because they are not yours to access yet.
- Funds from non-regulated financial companies. These are not eligible on the depletion path.
- Cryptocurrency, precious metals and collectibles. Neither path publishes these as eligible.
- Business accounts. Only the borrower’s ownership share could be considered, and beyond that they are not published as eligible.
- Pledged or borrowed funds. Money borrowed against an account is not an asset.
The documented route for the unlisted classes is to convert them to a seasoned cash balance in a regulated account. The lender reviews the source of those funds. Do this ahead of time, not during the application.
Washington is a community-property state. When an account is held jointly or by a spouse who is not on the loan, titling and ownership questions can affect what the lender credits. Confirm that with a licensed lender and a qualified advisor before you move money.
Seasoning and Statements: The Paperwork That Trips Files
Both paths document the assets. “No income documentation” never means no documentation. The program asks for no traditional personal-income documentation, pay stubs or employment verification, but it does ask for statements.
On the qualifier path, funds need 60 days of seasoning, with two months of statements for each qualifying account. On the depletion path, statements must be at least 120 days old at application, plus the most recent statement within 45 days. Funds from the sale of a business, an inheritance or a legal settlement are excused from that seasoning.
Three habits cause most delays:
1. Moving money between accounts right before applying, which restarts the seasoning clock and forces a source explanation.
2. Missing pages. A statement with blank or omitted pages gets pended.
3. Large deposits with no paper trail. Keep the closing statement from a business sale or the settlement letter handy.
Decision Checklist Before You Apply
Walk through these in order:
1. List every account, its owner, and whether it is cash, securities or retirement.
2. Remove anything borrowed, pledged, foreign or restricted.
3. Apply the percentages for the path you are considering.
4. Subtract what you need for the down payment and closing costs, since those funds cannot also count toward qualifying.
5. Test both paths. The qualifier path may work if the total clears the loan amount, and depletion may work if it does not.
6. Pull statements and check ages against the seasoning rules above.
Why Assets Can Qualify a Loan at All
Federal ability-to-repay rules let a lender rely on assets other than the home securing the loan. The CFPB’s compliance guide says the creditor may base its determination on income or assets, so a W-2 is not required. The underlying regulation text also excludes the dwelling itself from the pool. That is why equity in the home you are buying does not count toward the loan on the asset qualifier path.
Consumer disclosure rules apply to these mortgages. Tax treatment varies; consult a qualified professional.
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 is a broker that places these loans through select lenders. Consumer mortgage lending is available to Washington borrowers, and the program figures do not change by state.
Frequently Asked Questions
Do retirement accounts count on an asset-based mortgage?
Yes, through select programs. On the asset qualifier path, 401(k) and IRA balances count at 90% under age 59½ and 100% at 59½ or older. On the asset depletion path, they count at 70% at any age. The funds are not withdrawn.
Does cryptocurrency or a business account count?
Not as published. Neither path lists crypto, precious metals, collectibles or business accounts beyond the borrower’s ownership share as eligible. The documented route is converting them to a seasoned cash balance in a regulated account, with the source reviewed by the lender.
Do I have to sell my investments or pledge my accounts?
No. The assets stay in your accounts. Qualification is a calculation, not a withdrawal or a lien. Eligibility is subject to underwriting, and the lender may still review the source of large balances.
Does home equity count toward qualifying?
Not on the asset qualifier path. On the asset depletion path, real-estate equity counts at 60%. Cash-out proceeds from the loan itself never count as qualifying assets.
Is a credit check still required?
Yes. The qualifier path publishes a 600 minimum score, and the depletion path follows the lender’s matrix. Strong assets do not replace credit review, and nothing here is a commitment to lend.
About Lendmire
Lendmire — NMLS# 2371349 — is a mortgage broker that arranges bank statement, P&L-only, 1099-only and asset-based home financing in 16 states through wholesale lenders, on primary residences, second homes and investment properties. Every option is subject to the lender’s guidelines and full underwriting. Scotsman Guide named Lendmire a Top Mortgage Workplace in both 2025 and 2026.
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References
2. CFPB ATR/QM Small Entity Compliance Guide
This article is part of Lendmire’s asset-based mortgage program — full qualification details, guidelines, and scenarios live on the program page.
Related reading: When Does Asset Depletion Beat a Conventional Mortgage for a Washington Retiree? · How Lenders Value Private Stock on an Asset-Based Mortgage · Can You Get an Asset-Based Mortgage While Carrying Another Mortgage?
Guides: Asset-Based Mortgage in Washington
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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Disclosures. The information presented in this article is general market commentary, not financial, legal, or tax advice. Lendmire is a mortgage brokerage (NMLS# 2371349) — not a direct lender or depository institution — and loan placement is subject to lender underwriting. Nothing in this content represents a commitment to lend. Loan terms, pricing, and program availability vary based on borrower qualifications, property characteristics, and state of subject property, and are subject to change at any time. Lendmire complies with Equal Housing Opportunity requirements. Consumer access: nmlsconsumeraccess.org.