The Quick Read: No, an asset-based mortgage is not the same as a stated-asset loan: an asset-based mortgage verifies your accounts with statements and either counts them against the loan or turns them into qualifying income, while a stated-asset loan was an old product where the borrower simply claimed assets and the lender never checked. The names sound alike. The underwriting is opposite.
- Asset-based mortgage: your assets are documented, and they carry the loan or become income.
- Stated-asset loan: a legacy label for unverified claims. It is not something to shop for.
- Two paths exist: assets cover the whole loan, or assets are divided into monthly income.
- For rentals: investors usually use a DSCR loan, which looks at the property instead of your portfolio.
What Does Each Name Actually Mean?
An asset-based mortgage is a home loan qualified on what you own instead of what you earn. Brokers also call it an asset depletion, asset dissipation, or asset utilization loan. You document the accounts. The lender counts them. Nothing is sold or pledged.
A stated-asset loan is the opposite. Before the financial crisis, lenders offered products where the borrower asserted income and assets and nobody checked. That family had a reputation to match. The label survives mostly as vocabulary, and as a source of confusion.
Here is the practical split. In an asset-based mortgage, the word “asset” describes proof. In a stated-asset loan, it described a claim.
Side by Side
| Factor | Asset-based mortgage | Stated-asset loan |
|---|---|---|
| Are assets verified? | Yes, with statements | No, borrower’s word |
| How repayment is shown | Assets cover loan or become income | Claim accepted as given |
| Current status | Available through select programs | Legacy label |
| Typical borrower | Retiree, business seller, portfolio household | Historical, varied |
| Are assets sold or pledged? | No | Not applicable |
Why Do the Two Names Get Mixed Up?
Three reasons. First, both skip pay stubs and traditional personal-income documentation in some form, so both get lumped under “alternative documentation.” Second, the old product family used verified and stated versions of the same words. A loan with verified assets and no income documentation is the ancestor of today’s asset-based mortgage. Third, “asset-based” means different things in different corners of finance.
- Asset-based mortgage: a residential qualification method that looks at your wealth.
- Commercial asset-based lending: a business borrows against collateral like inventory or receivables.
- Pledged-asset or securities-backed loans: your portfolio is posted as collateral.
Only the first one fits this article. If a lender asks you to pledge your brokerage account, that is a different animal. A true asset-based mortgage leaves your accounts untouched.
How the Two Asset-Based Paths Work
Through select programs in Lendmire’s wholesale network, the asset qualifier path covers the entire loan with eligible assets, while the asset depletion path converts assets into monthly income. Figures below are typical ceilings and floors, subject to underwriting.
The asset qualifier path. Your eligible assets, after the credit percentages below, must equal or exceed the whole loan amount. No employment or income is documented. Leverage runs up to 80% on a purchase and up to 75% on a refinance, for a principal residence or second home. Loans go up to $4,000,000. Credit starts at a 600 score. Reserves are not required at or below 75% loan-to-value (LTV, the loan as a share of the home’s value). Above that, the lender sets them.
Illustrative math: an $800,000 loan with $330,000 in brokerage accounts (100% counts, so $330,000), $300,000 in a 401(k) for a borrower under 59½ (90%, so $270,000) and $200,000 in savings (100%, so $200,000) counts $800,000 of usable assets. That is reviewed on assets alone. The lender’s own calculation governs.
The asset depletion path. Usable assets are divided by 60 months to create monthly qualifying income. That income then carries the full housing payment and your other debts through the debt-to-income test (your monthly debts as a share of income).
Illustrative math: $1,500,000 in securities (80% counts, so $1,200,000) plus $300,000 in cash (100%, so $300,000) is $1,500,000 usable. Divide by 60 months and you get $25,000 of monthly qualifying income. That figure then has to clear the debt-to-income test.
Leverage on the depletion path depends on the property:
- Principal residence or second home: up to 80% on a purchase or rate-and-term refinance, and 60% on a cash-out refinance.
- Investment property: up to 65% on a purchase or rate-and-term refinance, and 60% on a cash-out refinance.
- Loan amounts: $125,000 to $3,500,000.
Cash-out proceeds never count as qualifying assets. Don’t blend the two tables. Each figure belongs to its own path.
What Counts, and What Doesn’t
Different assets get different credit. On the qualifier path, brokerage accounts, certificates of deposit, money market and savings all count at 100%. Retirement accounts count at 90% under age 59½ and 100% at 59½ or older. Accounts combine.
The depletion path is stricter:
| Asset (depletion path) | Share that counts |
|---|---|
| Cash accounts | 100% |
| Certificates of deposit | 100% |
| Securities | 80% |
| Private stock | Not eligible |
| Retirement accounts | 70% at any age |
| Real-estate equity | 60% |
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, and funds from non-regulated financial companies.
Cryptocurrency, precious metals, collectibles, borrowed funds and business accounts beyond your ownership share are not published as eligible on either path. The documented route is converting them to a seasoned cash balance in a regulated account, with the source reviewed by the lender. Down payment and closing funds also come out of the pool first. They can’t be counted twice.
The depletion path adds minimums. Qualified assets must be at least the lesser of $1,000,000 or 1.25 times the loan balance. They can never fall below $250,000 liquid when depletion is the only income source. If asset income only supplements documented income, up to a 45% debt-to-income ratio, that minimum is waived. Credit follows the lender’s matrix, and a first-time investor on this path needs a 700 score.
For a closer look at how lenders weigh liquid balances as cushion, see Lendmire’s piece How Liquid Asset Types Are Weighted as Reserves on a Second-Home Mortgage.
Seasoning and Statements: Proof Is the Whole Point
Seasoning is how long money has sat in an account before the lender relies on it. It is the clearest difference from a stated-asset loan. Here nobody takes your word.
- Qualifier path: 60 days of seasoning and two months of statements for each qualifying account.
- Depletion path: statements at least 120 days old at application, plus the most recent statement within 45 days.
- Excused on the depletion path: sale-of-business, inheritance and legal-settlement funds are excused from that seasoning.
So “no income documentation” never turns into “no documentation.” The income is skipped or derived. The assets are documented. Expect credit review and a housing history of 0x30x12, where one 30-day late in the last twelve months is considered case by case. Multiple bankruptcies are not eligible.
Can You Still Get a Stated-Asset Loan?
For a typical home loan, no. Federal ability-to-repay rules require a lender to make a reasonable, good-faith determination that you can repay. Under 12 CFR 1026.43, a lender may rely on income, assets, or both. The rule text covers current or reasonably expected income or assets other than the value of the dwelling. The lender must verify what it relies on with reasonably reliable third-party records, per the eCFR text of Subpart E.
Read that closely. Assets are a lawful basis. Unverified assets are not verification. That is why the modern descendant of the old verified-asset product is the asset-based mortgage. It survived because it checks the assets.
Two cautions. Non-QM (a loan outside standard agency rules) does not mean anything goes. And a lender marketing a product that takes your word on assets deserves hard questions.
Where Investors Fit
Most investors buying a rental never need either path. DSCR loans are designed for non-owner-occupied investment properties. Because they are business-purpose investor loans, they are reviewed differently from a standard owner-occupied mortgage. A DSCR loan is reviewed primarily on property-level rental income covering the payment, subject to lender guidelines. The lender still reviews credit, reserves, the property and the rent schedule. Personal assets don’t become the qualifying income. Our complete DSCR loans guide walks through how that works.
When does asset depletion matter to an investor? A few cases:
- You want a primary home or second home and your documented income is thin.
- You want to buy an investment property on the depletion path (up to 65% on a purchase, 60% cash-out), usually because a personal-ability test suits the file better than the property’s rent.
- You are planning a vacation-style purchase. Lendmire’s piece How to Finance a Condotel as a Second Home on Asset-Based Income covers that route.
Across the wholesale network, the pattern is consistent. Investors with big balances and light paychecks often assume one loan type fits everything. It rarely does. Match the test to the deal: property rent for a rental, deposits for a self-employed borrower, assets for a portfolio household. Programs change, and every file is underwritten individually.
Tax treatment varies, so consult a qualified professional.
Which Path Fits You?
- Your assets are large and you want a smaller loan relative to them: the qualifier path. Assets cover the loan outright.
- Your assets are large and you want to buy with a mortgage that fits your income test: the depletion path.
- You hold mostly cryptocurrency or collectibles: plan to convert to seasoned cash first.
- You are buying a pure rental: compare a DSCR loan before anything else.
- You document income with deposits: that is a bank statement loan, a separate program.
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 consumer mortgage lending through select lenders, licensed in 16 states: Alabama, California, Colorado, Florida, Georgia, Indiana, Michigan, Montana, New Mexico, North Carolina, Ohio, Pennsylvania, Tennessee, Texas, Virginia and Washington. Call 828-256-2183 to talk it through. Nothing here is a commitment to lend.
Key Terms Defined
Asset depletion: a method that divides usable assets by a set number of months to create qualifying income.
Asset qualifier: a method where eligible assets must equal or exceed the entire loan, with no income documented.
Stated asset: an old label for assets the borrower claimed and the lender did not verify.
Seasoning: the time funds must sit in an account before a lender relies on them.
Haircut: the discount applied to an asset’s balance, such as counting securities at 80%.
Debt-to-income ratio: monthly debts divided by monthly income.
Frequently Asked Questions
Is an asset-based mortgage a no-doc loan?
No. Your personal income may not be documented, but your assets are, with statements and seasoning. Credit is reviewed and the property is evaluated. “No income documentation” and “no documentation” are different things.
Do I have to sell or pledge my investments?
No. On both paths the accounts stay yours. They are verified and counted to show ability to repay. That separates this loan from a pledged-asset loan, where your portfolio is collateral.
Is an asset depletion loan the same as an asset-based mortgage?
Yes, they are the same family. Asset-based mortgage is the broader name. The asset qualifier path and the asset depletion path are the two ways it is underwritten, and a borrower is reviewed on one at a time.
Can retirement accounts count?
Yes, at a discount in some cases. On the qualifier path they count at 90% under age 59½ and 100% at 59½ or older. On the depletion path they count at 70% at any age. All figures are subject to underwriting.
Can I use an asset-based mortgage for a rental?
Only on the asset depletion path, at up to 65% on a purchase or rate-and-term refinance and 60% on a cash-out refinance. The qualifier path covers principal residences and second homes. Most pure rental buyers compare a DSCR loan first.
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.
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References
1. CFPB, Regulation Z §1026.43
2. eCFR, 12 CFR Part 1026 Subpart E
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 to Qualify for an Asset Qualifier Jumbo Loan · How an Asset Depletion Mortgage Works · Does an Asset Depletion Loan Require Any Income?
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.