The Quick Read: Usually when your wealth sits in accounts rather than paychecks and you are buying a home you will live in, such as a primary residence or second home, because a conventional lender reads documented income while asset-based programs read your balances. For a rental, a DSCR loan usually fits better. If your income documents cleanly, conventional often wins.
- Two paths exist. On the asset qualifier path, your eligible assets cover the whole loan. On the asset depletion path, your assets become monthly qualifying income.
- Retirement accounts count differently. The qualifier path counts them at 90% under age 59½ and 100% after. The depletion path counts them at 70% at any age.
- Depletion has a floor. Qualified assets must be at least the lesser of $1,000,000 or 1.25 times the loan, and never below $250,000 liquid when assets are your only income source.
- Georgia changes nothing. These figures are the same in every state, and they are ceilings and floors, never offers. All are subject to underwriting through select programs.
You do not sell anything on either path. The lender reads your balances; it does not drain them.
Which Path Fits a Retiree With Big Balances and Thin Income?
The qualifier path fits when your usable assets equal or exceed the entire loan. The depletion path fits when your assets are large but not that large. Lendmire arranges both through select lenders in its network, and a borrower is qualified on one path at a time.
Here is the side-by-side. Every figure is a program ceiling or floor, subject to underwriting.
| Item | Asset qualifier path | Asset depletion path |
|---|---|---|
| Core test | Assets cover the whole loan | Assets become monthly income |
| Primary or second home, max LTV | 80% purchase, 75% refinance | 80% purchase or rate-and-term; 60% cash-out |
| Investment property, max LTV | Not offered | 65% purchase or rate-and-term; 60% cash-out |
| Loan size | Up to $4,000,000 | $125,000 to $3,500,000 |
| Credit | 600 minimum | The lender’s matrix |
| Brokerage, securities | 100% counts | 80% counts |
| Retirement accounts | 90% under 59½, 100% after | 70% at any age |
| Statements | 60 days seasoning, two months each | 120 days old, plus one within 45 days |
LTV is loan-to-value, the loan as a percentage of the property’s value. Seasoning is how long money has sat in an account before you use it.
Notice the retirement row. A 62-year-old with most of the portfolio in an IRA gets full credit on the qualifier path and 70% on the depletion path. That one difference can decide which path you use.
How Does the Math Work?
On the qualifier path, you add up what counts and compare it to the loan. On the depletion path, you add up what counts and divide by 60 months. The result is monthly income that must carry your housing payment and other debts. Both examples below are illustrative, and the lender’s own calculation governs.
Qualifier path example. Take an $800,000 loan. You hold $330,000 in brokerage accounts (100% counts, so $330,000), $300,000 in a 401(k) while under 59½ (90% counts, so $270,000) and $200,000 in savings (100% counts, so $200,000). That is $800,000 of usable assets against an $800,000 loan, so you qualify on assets alone. No employment or income is documented.
Depletion path example. You hold $1,500,000 in securities (80% counts, so $1,200,000) plus $300,000 in cash (100% counts, so $300,000). That is $1,500,000 usable. Divide by 60 months and you get $25,000 of monthly qualifying income. That income then carries the housing payment and your other debts through the debt-to-income test.
Debt-to-income, or DTI, compares your monthly debts to your monthly income.
Two details matter in practice. First, cash-out proceeds never count as qualifying assets on the depletion path. Second, if you have a pension or Social Security, asset-derived income may supplement it up to a 45% DTI, and the minimum-assets rule is waived when it does. A retiree who almost qualifies conventionally should ask about that blend before assuming the full asset route.
Where Asset Depletion Wins
Asset depletion wins when your documented income understates your real capacity. Picture these cases:
- The portfolio retiree. Your balances are large, but your taxable distributions are small. A conventional lender sees thin income on paper. The depletion path converts those balances into a substantial qualifying monthly income, as in the example above.
- The retiree who wants to keep investing. Selling holdings to buy a house can be a costly move. Qualifying on balances lets the portfolio stay invested, subject to underwriting.
- The business seller or heir. You have just received a large lump sum. On the depletion path, sale-of-business, inheritance and legal-settlement funds are excused from the statement-age rule.
- The retiree with an uneven income history. Years of lumpy distributions can look messy to a conventional lender. Balances look the same every month.
- The buyer with a large loan. Assets alone can cover loans up to $4,000,000 on the qualifier path, subject to underwriting.
Honestly, the qualifier path is the underrated one. If your assets cover the loan, there is no DTI math at all.
Where Conventional Wins (Skip the Asset Loan If…)
Conventional wins when your income documents cleanly and you do not need to lean on your balances. A pension, Social Security and required distributions can add up to a clean file. In that case, conventional programs are generally the cheaper and simpler route, and asset-based programs typically cost more for the flexibility.
Conventional can also win on cash. The asset paths set ceilings: 80% LTV on a purchase of a primary residence, and only 60% on a cash-out refinance of one on the depletion path. If you want to pull equity out at higher leverage, a conventional cash-out may allow more on some files. Compare both before choosing. Every figure here varies by lender and program — guidelines, property type, leverage, and credit profile all apply.
Here is a quick decision table.
| Your situation | Likely better route |
|---|---|
| Pension and Social Security cover the payment | Conventional |
| Large balances, thin documented income | Asset depletion |
| Assets cover the whole loan | Asset qualifier |
| Income nearly qualifies | Blend income with assets |
| Buying a rental | DSCR |
This is a genuine toss-up for borrowers in the middle. If the file qualifies both ways, the decision comes down to total cost, down payment and how much liquidity you want left after closing.
What Changes If You Are Buying a Rental?
For a rental, a DSCR loan usually fits better than asset depletion. 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. Your credit and reserves still matter. Lendmire’s complete DSCR loans guide walks through how that review works.
Asset depletion on an investment property is tighter: 65% LTV on a purchase or rate-and-term refinance, 60% on a cash-out, and a first-time investor needs a 700 score. It also tends to require that you hold title personally, so LLC ownership usually does not fit, depending on program guidelines. Debts pile up against a fixed imputed income, too. A retiree with several financed rentals can hit the DTI ceiling even with a big portfolio.
The practical split is simple. Use asset depletion for the home you live in. Use DSCR for the rentals. In that setup, your portfolio shows up as reserves and liquidity rather than as qualifying income.
What Is the Real Cost Trade-Off?
The cost of an asset loan is not only the price of the loan. It is also what your portfolio gives up. Run these four checks:
1. Down payment. A larger down payment pulls cash out of your balances, which shrinks the usable assets that qualify you.
2. Liquidity after closing. The same dollars may count toward qualification and toward cushion. Leave yourself real breathing room.
3. Market moves. A drop in your securities between statement dates lowers what counts. Securities count at 80% on the depletion path, so a decline hits twice.
4. Pricing. Asset-based programs are non-QM, meaning they sit outside standard agency guidelines. Pricing differs by lender and file, so compare full terms before deciding.
Across the lenders Lendmire works with, the files that stall are rarely about the size of the portfolio. They stall on the paper trail: a recent large deposit with no source, statements that are a few weeks too fresh, or a brokerage account that moved mid-process. Reviewing statements before you choose a property saves the most trouble.
What Do the Federal Rules Say About Using Assets?
The federal ability-to-repay rule lets lenders review your file on assets as well as income. Under the CFPB’s Regulation Z § 1026.43, a lender must make a reasonable, good-faith determination that you can repay. The regulation text requires the lender to verify the income or assets it relies on using third-party records. Nolo’s explainer notes the lender weighs factors such as DTI or residual income.
So asset-based does not mean undocumented. Your assets are documented on both paths. What changes is which records carry the weight.
Common Mistakes
- Counting assets that do not count. On the depletion path, custodial accounts, deferred compensation, escrow accounts, foreign funds, cash on hand, stock options and non-vested restricted stock units are not eligible.
- Assuming crypto or collectibles qualify. Cryptocurrency, precious metals, collectibles and pledged or borrowed funds 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.
- Blending the two tables. Do not apply the qualifier path’s 100% credit to the depletion path’s math.
- Ignoring credit. The qualifier path has a 600 minimum, housing history of 0x30x12 is the standard, and multiple bankruptcies are not eligible. A housing event needs 4 years of seasoning on the depletion path.
- Chasing a rental with a residence program. It is the wrong lane.
Tax treatment varies; consult a qualified professional.
Key Terms Defined
- Asset qualifier path: the route where eligible assets, after credit percentages, equal or exceed the entire loan, with no employment or income documented.
- Asset depletion path: the route where usable assets divided by 60 months become monthly qualifying income.
- Haircut: the share of an asset’s balance that is not counted, such as 20% off securities.
- Debt-to-income (DTI): your monthly debts divided by your monthly income.
- Seasoning: the time funds must sit in your account before they count.
- Non-QM: a mortgage outside standard agency guidelines, underwritten to its own rules.
Frequently Asked Questions
Do I have to sell my investments to use asset depletion?
No. The lender converts your balances into a qualifying figure on paper. You keep the investments and keep them invested. The lender still verifies the accounts with statements, so the paperwork is real even though nothing is sold.
Do retirement accounts count, and does my age matter?
Yes, and age matters on the qualifier path. Retirement accounts 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 asset depletion on a second home?
Yes, subject to underwriting through select programs. Second homes follow the primary-residence figures: up to 80% LTV on a purchase on either path, with refinances at 75% on the qualifier path and rate-and-term up to 80% on the depletion path. Cash-out on the depletion path tops out at 60%. Final terms depend on lender guidelines, property type, leverage, and the borrower’s complete credit picture.
Is asset depletion a last resort?
Not a last resort, but not always a more affordable choice either. If your income documents cleanly, conventional is often the better fit. Asset depletion earns its place when your balances are strong and your documented income is not.
Does it work if I plan to rent the property out?
Generally no. A DSCR loan is the usual structure for a rental, because it qualifies primarily on the property’s rent covering the payment. Asset depletion on an investment property is limited to 65% LTV on a purchase or rate-and-term refinance and 60% on a cash-out, and it usually requires personal vesting.
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. Its consumer mortgage lending is licensed in 16 states, Georgia among them. Any quote is not a commitment to lend, and every file is underwritten individually.
Georgia’s mix of metro, coastal and mountain homes gives retirees plenty of choices, and the loan that fits is the one that matches the property you actually plan to live in.
Lendmire’s asset-based mortgage in Georgia page presents the program for Georgia borrowers.
About Lendmire
As a mortgage broker (NMLS# 2371349), Lendmire helps self-employed and high-net-worth borrowers in 16 states qualify on bank statements, a profit-and-loss statement, 1099s or liquid assets instead of tax returns, through wholesale lenders. Lendmire is never the lender; program terms are set by the lender and its guidelines. Scotsman Guide named Lendmire a Top Mortgage Workplace in both 2025 and 2026.
Investors who want the broader program framework can review how DSCR loans work.
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References
1. CFPB Regulation Z § 1026.43
3. Nolo: New Mortgage Rules and Ability to Pay
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 a Margin Balance Is Treated on an Asset Depletion Mortgage · Asset Depletion vs Bank Statement HELOC for a Retiree · Does a Retiree Using Asset Depletion Need a Super Jumbo Loan?
Guides: Asset-Based Mortgage in Georgia
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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- Lendmire LLC · Firm NMLS# 2371349 · Verify firm licensure
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.