The Quick Read: You qualify on one of two paths. Either your eligible assets cover the entire loan and no employment or income is documented, or your assets are divided by 60 months into qualifying income that must carry the housing payment and other debts, subject to underwriting. You still document the assets, credit and property. What you skip is tax returns, pay stubs and employment verification.
- Asset qualifier path: usable assets must equal or exceed the whole loan, and no income is documented.
- Asset depletion path: usable assets divided by 60 months become monthly income that runs through the debt-to-income test.
- Cash-out leverage: the depletion path allows up to 60% on a cash-out refinance, on a principal residence, second home or investment property. The qualifier path’s cash-out terms are set by the lender and are not published.
- Cash-out proceeds never count as qualifying assets.
- Privately held company stock is not an eligible asset on either path.
What “No Income Verification” Really Means
It means the lender does not ask how you earn money. Every file is still fully underwritten.
Across the wholesale network where Lendmire places asset-based files, the lender reviews your credit, the appraisal, title and your asset statements. The assets must be seasoned, which means they have sat in your accounts long enough to show they are really yours.
So the accurate phrase is no traditional personal-income documentation, pay stubs or employment verification. It is not no documentation. Anyone who tells you otherwise is describing a product that does not exist.
This fits a specific reader. Think of a retiree living on a portfolio, someone who just sold a business, a person who received an inheritance or settlement, or an early-retired professional. Balances are large and documented income is small. Lendmire’s asset-based mortgage programs are built for that profile, through select lenders and subject to underwriting.
Which Path Fits You?
Pick the qualifier path if your assets are big enough to cover the whole loan. Pick the depletion path if they are not, but they can still produce enough monthly income on paper. You are qualified on one path at a time, never a blend of both.
| Factor | Asset qualifier | Asset depletion |
|---|---|---|
| How assets are used | Must cover the whole loan | Divided by 60 months into income |
| Income calculated | None documented | Yes, runs through DTI |
| Purchase leverage | Up to 80% | Up to 80% (65% investment) |
| Refinance leverage | Up to 75% | Up to 80% rate-and-term (65% investment) |
| Cash-out leverage | Set by lender, not published | Up to 60% |
| Loan amounts | Up to $4,000,000 | $125,000 to $3,500,000 |
Depletion leverage in the table applies to a principal residence or second home, with the investment-property ceiling in parentheses. All figures are ceilings through select programs, not offers.
The Asset Qualifier Path, Step by Step
Here the lender asks one question: do your eligible assets, after the credit percentages below, equal or exceed the entire loan amount? If yes, no employment or income is documented. The lender’s ability-to-repay review rests on the assets.
Here is an illustrative case. Say the loan is $800,000. You hold $330,000 in brokerage accounts (counted at 100%), $300,000 in a 401(k) while under age 59½ (counted at 90%, or $270,000) and $200,000 in savings (100%). Together that counts $800,000 of usable assets, so the file is reviewed on assets alone. Accounts combine, and the lender’s own calculation governs.
Other requirements on this path:
- Seasoning: 60 days, with two months of statements for each qualifying account.
- Credit: a 600 minimum score.
- Reserves: none required at or below 75% loan-to-value. Above that, the lender sets them.
- Refinance leverage: up to 75% on a principal residence or second home.
Cash-out on this path is lender-specific. If you want cash back, ask before you build the file around it. We do not publish a qualifier-path cash-out figure because the lender decides it.
The Asset Depletion Path, Step by Step
This path turns a portfolio into monthly income without selling anything. Each asset type is trimmed by a haircut, the usable total is divided by 60, and the result must carry your full housing payment and other debts.
Run it this way. Say you hold $1,500,000 in securities (counted at 80%, or $1,200,000) and $300,000 in cash (100%). That is $1,500,000 usable. Divided by 60 months, it is $25,000 of monthly qualifying income. That income then goes through the debt-to-income test, and the lender’s calculation governs.
The depletion path has its own minimums:
- Qualified assets of at least the lesser of $1,000,000 or 1.25 times the loan balance.
- A floor of $250,000 liquid when asset depletion is your only income source.
- Supplement option: if you also have documented income, asset-derived income can supplement it up to a 45% debt-to-income ratio. When it supplements, the minimum-assets rule is waived.
- Statements: at least 120 days old at application, plus the most recent statement within 45 days. Sale-of-business, inheritance and legal-settlement funds are excused from that seasoning.
No reserve months are published for this path. Credit follows the lender’s score and loan-amount matrix.
Which Assets Count, and How Much
Each account counts at a percentage of its balance. The two paths use different tables, so never mix them.
| Asset | Qualifier path | Depletion path |
|---|---|---|
| Brokerage / securities | 100% | 80% |
| Certificates of deposit | 100% | 100% |
| Money market and savings | 100% | 100% (cash accounts) |
| Retirement accounts | 90% under 59½, 100% after | 70% at any age |
| Real-estate equity | Not published | 60% |
On the depletion path, these are not eligible at all: 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. That includes cryptocurrency, precious metals, collectibles, business accounts beyond your ownership share, and pledged or borrowed funds. The documented route is converting them to a seasoned cash balance in a regulated account, with the source reviewed by the lender.
Cash-Out Rules: Leverage and Proceeds
Cash-out is the tightest part of the file. On the depletion path, ceilings drop to 60% on a cash-out refinance, whether the collateral is a principal residence, second home or investment property. By contrast, a rate-and-term refinance reaches 80% on a principal residence or second home and 65% on an investment property.
Lenders hold cash-out lower because you are taking equity out against a borrower with no income on file. The cushion has to come from somewhere.
The other hard rule: cash-out proceeds never count as qualifying assets. You cannot pull cash out and then use that cash to qualify for the same loan. Qualifying assets must already be in your accounts and seasoned.
Plan the post-closing picture, too. A bigger balance means a bigger payment. On the depletion path, the new payment must fit the derived income. On the qualifier path, the assets must cover the new, larger loan amount.
Credit, Seasoning and Housing History
Credit still matters on both paths. The qualifier path has a 600 minimum score, and the depletion path follows the lender’s matrix. Other points:
- Housing history: 0x30x12 is the standard. One 30-day late in the last twelve months is considered case by case.
- First-time investors on the depletion path need a 700 score.
- Bankruptcy: multiple bankruptcies are not eligible. After a housing event, the depletion path needs 4 years of seasoning.
Nothing here is a promise of approval. These are the floors and ceilings that select lenders in the network publish, and every file is judged on its own merits.
Where the General Rule Breaks
Privately held company stock. None of it counts: privately held company stock is not an eligible asset on either path. A founder or shareholder’s route is documented liquid assets. That means seasoned proceeds from a sale or buyout, cash, public securities and retirement accounts at their haircuts.
Retirement accounts under 59½. On the qualifier path, they count at 90% rather than 100%. On the depletion path, they count at 70% at any age. Check which path you are on before you count them.
Investment property. The depletion path is the only one that covers an investment property, and that loan is business-purpose. The qualifier path is for a principal residence or second home. If you are financing a rental on its own rent, that is DSCR territory, a different product.
Occupancy. Rules for treating a rental loan as business-purpose depend on you not living there. The CFPB’s Regulation Z text says credit for non-owner-occupied rental property is deemed business-purpose, but that treatment fails if you expect to occupy the property for more than 14 days in the coming year. The eCFR version of the rule sets out the business-purpose exemption itself.
Personal use of proceeds. Calling a loan business-purpose does not make it unregulated. A law-firm analysis on Lexology cautions that business purpose does not mean compliance-exempt. If you take cash out for personal use, the lender may treat the loan differently.
Income on top of assets. If you also have documented income, the depletion path can supplement it, up to a 45% debt-to-income ratio. That is the one case where the minimum-assets rule is waived.
Tax treatment varies; consult a qualified professional.
How This Compares With Other Options
These comparisons describe each program’s own rules, not this program’s.
| Option | Who it fits | It is reviewed on |
|---|---|---|
| Asset-based mortgage | Cash-heavy, income-light borrowers | Documented assets |
| DSCR loan | Rental investors | Property rent versus its payment |
| Bank statement loan | Self-employed borrowers | Income shown by deposits |
| HELOC | Owners with existing equity | The lender’s own income review |
Asset-based is the right tool when your wealth is liquid and your paycheck is small. Choose DSCR when the property pays for itself. Choose a bank statement loan when you have steady deposits from a business.
Who Should Skip This
Skip it if your assets are thin but your paycheck is strong. A conventional refinance will fit that profile better.
Skip it if your wealth sits in privately held stock, cryptocurrency or collectibles and you have not converted any of it. Those assets do not count, and the file will have nothing to qualify on.
Skip it if you need leverage above the ceilings here. Cash-out on the depletion path tops out at 60%.
Also skip it if a housing event is recent. The depletion path needs 4 years of seasoning.
The Process, Start to Finish
1. Pick your path. Add up eligible balances using the percentages above.
2. Gather statements. Two months per account on the qualifier path. On the depletion path, one at least 120 days old and one within 45 days.
3. Check credit. Confirm the score and housing history before you apply.
4. Choose leverage. Match the loan to the path’s cash-out ceiling.
5. Appraisal and title. The property still needs to be valued and cleared.
6. Underwriting. The lender reviews the whole file individually.
Programs change, and every file is underwritten on its own. Consumer mortgage lending through this program is licensed in 16 states: Alabama, California, Colorado, Florida, Georgia, Indiana, Michigan, Montana, New Mexico, North Carolina, Ohio, Pennsylvania, Tennessee, Texas, Virginia and Washington.
Key Terms Defined
Asset qualifier path: the route where eligible assets must equal or exceed the whole loan and no income is documented.
Asset depletion path: the route where usable assets are divided by 60 months into monthly qualifying income.
Haircut: the share of an account’s balance a lender does not count, for example 80% for securities on the depletion path.
Seasoning: how long funds have sat in your account, shown through statements.
Debt-to-income (DTI): monthly debts divided by monthly income, used to test whether a payment fits.
Cash-out refinance: a new, larger loan that pays off the old one and gives you the difference.
Frequently Asked Questions
Do cash-out proceeds count as assets for qualifying?
No. Cash-out proceeds never count as qualifying assets on the depletion path. Only seasoned funds already in your accounts count. Plan the file so your existing balances carry it, not the cash you are about to receive.
Does privately held company stock count?
No. Privately held company stock is not an eligible asset on either path. If you are selling or converting a business, the route is documented liquid assets. That means seasoned sale proceeds, cash, public securities and retirement accounts at their haircuts.
Can I use this to cash out on an investment property?
Yes, but only on the asset depletion path, at up to 60% on a cash-out refinance. That loan is business-purpose, and the proceeds should go to business use.
Do I have to sell my investments to qualify?
No. Assets are counted, not liquidated. On the depletion path, your balances are divided by 60 months to create qualifying income on paper. On the qualifier path, the balances only need to equal or exceed the loan. You keep them, subject to underwriting.
Can I add pension or Social Security income?
On the depletion path, documented income can be combined with asset-derived income up to a 45% debt-to-income ratio. The lender confirms how it counts your file.
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 is a broker, and every program is placed through select lenders, subject to lender guidelines and not a commitment to lend.
For how equity extraction works on an investment property, see Lendmire’s guide to cash-out refinance on an investment property.
About Lendmire
Lendmire (NMLS# 2371349) is a mortgage broker licensed for consumer lending in 16 states. Bank statement, P&L-only, 1099-only and asset-based mortgages for self-employed and high-net-worth borrowers are arranged through wholesale lenders on primary residences, second homes and investment properties; every file is underwritten by the lender under its program guidelines. Scotsman Guide named Lendmire a Top Mortgage Workplace in both 2025 and 2026.
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References
3. Hunton / Lexology: Beware of “Business Purpose”
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 Cash Can a New Mexico Homeowner Take Out on an Asset Depletion Refinance? · Can You Get an Asset-Based Mortgage on a Tennessee Condo? · Which Accounts Count on a Texas Asset-Based Mortgage?
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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Required disclosures. Lendmire (NMLS# 2371349) operates as a licensed mortgage broker, not a direct lender or depository. The discussion in this article is general in nature and should not be relied upon as financial, legal, or tax advice — every investment scenario is unique and should be reviewed by a qualified professional. Any loan inquiry is subject to lender underwriting, and this article is not a commitment to lend or a guarantee of approval. Mortgage rates, loan terms, and program guidelines vary by borrower, property, and state, and may change without notice. Equal Housing Opportunity. Verify licensure at NMLS Consumer Access.