The Quick Read: Qualifying means converting verified liquid assets into notional monthly income, then running that income through a debt-to-income test like any other jumbo file. Nothing is sold or withdrawn. The assets stay in the accounts.
- Income is liquid assets, less funds earmarked for the deal, divided by 36, 60 or 84 months, through select wholesale programs.
- An assets-only path skips DTI when U.S. liquid assets equal the loan plus closing costs and sixty months of any net loss on other residential property.
- Retirement accounts count at 70%, or 80% at age 59.5 and older.
- Credit floors run 660 to 700 depending on the program and loan size.
- Above $4,000,000, every file is reviewed case by case before submission.
Asset depletion is a qualifying method, not a separate loan type. It fits borrowers whose traditional personal-income documentation understates what they hold: founders after a sale, retirees, physicians, investors with heavy write-offs. Lendmire is a broker. It shops these files across wholesale programs, and every figure below is subject to full underwriting and is not a commitment to lend.
What Asset Depletion Actually Is
A lender looks at your balance sheet instead of your pay stubs. It takes eligible liquid assets and treats a slice of them as monthly income. The divisor drives the outcome: the same portfolio produces more than twice the monthly income over a 36-month divisor as over an 84-month divisor. You don’t draw the money. You prove it exists and stays put.
Think of it as a qualifying convention. It is not a withdrawal plan. The same convention is what makes the loan work for someone with a large portfolio and a thin Schedule C.
How Underwriting Treats It, Step by Step
Here is the file path as it runs across the wholesale network.
1. Inventory eligible assets. Checking, savings, money market, brokerage and retirement accounts. Business funds, gifts, unvested stock, cryptocurrency and most trusts never count. A revocable living trust is the exception.
2. Apply the asset-type treatment. Cash counts in full. Securities and retirement funds are discounted. On most programs retirement accounts count at 70%, or 80% for borrowers 59.5 or older. A haircut is the general finance term for that discount.
3. Subtract money earmarked for the deal. Down payment, closing costs and required reserves come out first. Funds used to buy the house can’t also be the income.
4. Divide by the program’s period. Asset allowance uses 36 months when it supplements other income and the file’s DTI before the asset income is at or below 60%. It uses 60 months when that pre-asset DTI is above 60%. It uses 84 months when assets stand alone or the loan is above $3,500,000. That 60% test only picks the divisor. Asset allowance is for primary and second homes, at 80% maximum.
5. Add documented recurring income. Pensions, Social Security or other income that is documented can sit beside the depletion income.
6. Run DTI. The derived income goes against the proposed housing payment and other debts. The qualifying ratio, with the asset income counted, must still fit the 50% ceiling that programs typically allow.
7. Verify with records. Recent consecutive account statements, plus proof of access on retirement accounts, plus a source for the earmarked funds.
8. Layer the jumbo overlays. Credit, reserves, appraisal and leverage apply as on any large file.
Non-QM files carry no presumption of compliance, so lenders document how they considered the assets they relied on. That is why the statements and sourcing requests feel heavy. The CFPB’s ability-to-repay rule allows a lender to rely on assets instead of income, and the CFPB’s small entity compliance guide lists eight factors, the first being current or reasonably expected income or assets. Reliance still requires third-party verification. Even then, debt is tested.
Key Terms Defined
Divisor: The number of months the program spreads eligible assets over. Longer means less monthly income.
Haircut: The discount applied to an asset for volatility or tax exposure.
Earmarked funds: Money set aside for the down payment, closing costs and reserves. It is removed before income is computed.
Assets-only: A path that needs no DTI. U.S. liquid assets must cover the loan, closing costs, and sixty months of any net loss on other residential property.
Reserves: Liquid funds left after closing, measured in months of housing payments.
The Two Asset Paths Compared
| Factor | Asset Allowance | Assets-Only |
|---|---|---|
| Income math | Assets ÷ 36, 60 or 84 months | None |
| DTI tested | Yes | No |
| Asset test | Feeds qualifying income | Assets cover loan plus costs |
| Occupancy | Primary and second home | Program-dependent |
| Leverage cap | 80% maximum | Per leverage ladder |
Assets-only suits the borrower with a very large portfolio and a modest loan. Asset allowance suits the borrower who wants to keep more liquidity untouched. Which one wins depends on loan size against portfolio size. Run both before choosing.
Size, Leverage and Credit
Loans range from $300,000 to $30,000,000 through two wholesale programs. A portfolio non-QM program carries files to $6,000,000. A bank portfolio program carries twelve-month-statement files to $30,000,000 on its own ladder: 65% to $5,000,000, 60% to $10,000,000 and 55% to $30,000,000. That ladder begins above $4,000,000 and overlaps the portfolio program to $6,000,000.
On a primary residence purchase, typical ceilings step down with size, through select wholesale programs and subject to underwriting:
- 90% to $1,000,000
- 85% to $2,000,000
- 80% to $3,000,000
- 75% to $4,000,000 at the top credit tier
Above $4,000,000, leverage is reviewed case by case. Second homes and investment property take their own ladders, with purchase ceilings running 0 to 15 points under the primary figure depending on the band. Asset allowance is limited to primary and second homes.
Pricing and available terms vary by lender, borrower profile, property type, and full underwriting review. Credit score minimums rise to 700 above the super-jumbo line, which sits at $3,500,000 on a primary residence and $3,000,000 on a second home or investment property. Reserves are typically 3 months to $500,000, 6 months to $1,500,000, and 9 months above that.
Where the General Rule Breaks
Funds in a business account. Business funds never count as qualifying assets. Move them to a personal account early, and expect the lender to ask where the money came from.
Down payment from the same account. The same dollars can’t count twice. A borrower who needs $2M down and holds $3M has $1M to depletion-test, not $3M.
Cash-out. Cash-out is available on some programs, but leverage drops. On the portfolio program, proceeds are unlimited at or below 60% LTV and capped at $1,500,000 cash-in-hand above that. Cash-out proceeds can’t satisfy reserves on super-jumbo files. Interest-only never raises a cash-out ceiling. The exact numbers vary by lender and program and follow a full review of property, leverage, and credit.
Investment property. Asset allowance is limited to primary and second homes, so it does not qualify a rental purchase. Investment property takes its own leverage ladder, and the qualifying path there runs through the assets-only route where a program offers it, or through property-level financing such as a DSCR loan.
Trusts. Only a revocable living trust holds assets that count. Other trusts need a different route, which is covered in Lendmire’s piece How to Use Trust Assets to Qualify on an Asset Depletion Mortgage.
Super-jumbo overlays. Past the line above, expect a 700 credit floor, 0x30x24 housing history, 48-month seasoning on credit events, U.S. citizens or permanent residents only, no rural property, and ten acres maximum.
Market moves. Securities fluctuate between approval and file review. A portfolio that is reviewed on a high day can fall short on a low one. Cash buffers matter.
Practitioner Note on Failing Files
Across the wholesale network, the same few problems sink asset files. Statements arrive with gaps. A large deposit shows up with no paper trail. The borrower counts an account type that doesn’t qualify. Earmarked funds get double-counted. Most are fixable before submission if someone reads the statements line by line first. A larger down payment or a switch from asset allowance to assets-only often rescues a borderline file.
Which Path Fits Your Situation?
Asset depletion is reviewed against the balance sheet. A DSCR loan is reviewed on the property’s rent and is business-purpose only. A bank statement loan is reviewed on deposits, after an expense ratio, over 12 or 24 months. Lendmire’s piece How to Qualify a Jumbo Bank Statement Loan on Asset Depletion covers that path in detail.
Founders with steady deposits often do better on bank statements. Retirees and post-sale owners with big portfolios and little current income lean toward assets. Investors adding rentals sometimes pair an asset-based primary residence with property-level financing on the rentals, since DSCR loans typically sit outside personal DTI. The complete DSCR loans guide explains how that side works. Tax treatment can depend on how the funds are used and how the property is held; investors should keep clear records and speak with a qualified tax professional before relying on any deduction.
Tying assets to the qualification has a real cost. Many programs expect the qualifying balances to remain in place through closing, so plan for that liquidity before you commit to the deal.
Documentation Checklist
- Two or more consecutive months of statements on every qualifying account, with all pages
- Retirement account statements and proof of access
- A paper trail for any recent large deposit or transfer
- Source of funds for the down payment and closing costs
- Credit report details and a full list of debts
- For assets-only, proof the assets are held in the U.S.
Frequently Asked Questions
Do I have to sell investments to qualify?
No. The lender converts eligible balances into notional income. Nothing is liquidated or withdrawn. Many programs expect the qualifying assets to stay in place through closing.
Does my home equity or business count as an asset?
Generally not. Real estate equity, business-owned funds, gifts, unvested stock and cryptocurrency don’t count. Liquid personal accounts do, with retirement funds discounted.
Is a DTI test still required?
On asset allowance, yes. Derived income is tested against the housing payment and other debts. The assets-only path skips DTI, but requires U.S. liquid assets equal to the loan plus closing costs and sixty months of any net loss on other residential property.
Can I use this for a cash-out refinance?
On some programs, at lower leverage than a purchase. The portfolio program caps cash-in-hand at $1,500,000 above 60% LTV. Above $4,000,000, every file is reviewed case by case. Final terms depend on the lender’s guidelines, the property type, and the borrower’s complete credit picture.
Is this available in every state?
Lendmire’s consumer mortgage lending is licensed in 16 states: AL, CA, CO, FL, GA, IN, MI, MT, NM, NC, OH, PA, TN, TX, VA and WA. Programs change, and every file is underwritten individually.
If you are financing a high-balance property on your assets rather than income documents and want to see how the numbers work, Lendmire can help you compare super jumbo asset-qualification options based on your liquid assets, the property, credit profile, leverage, and your goals.
For current guidelines and terms, see Lendmire’s super jumbo bank statement loan programs page.
Lendmire’s self-employed mortgages page presents both super jumbo programs, bank statement and DSCR, side by side.
About Lendmire
A DSCR-focused mortgage broker, Lendmire (NMLS# 2371349) places investor financing across 41 markets — 40 states plus Washington, D.C. — with DSCR eligibility generally reviewed by the lender on property cash flow instead of traditional personal-income documentation, subject to lender guidelines. Scotsman Guide named Lendmire a Top Mortgage Workplace in 2025 and 2026.
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References
2. CFPB ATR/QM Small Entity Compliance Guide
This article is part of Lendmire’s super jumbo bank statement loan program — full qualification details, guidelines, and scenarios live on the program page.
Related reading: Can a Super Jumbo Bank Statement Loan Pay Off a Pledged Asset Line? · How to Qualify for a Super Jumbo Loan as a Trust Beneficiary · How to Qualify for a Super Jumbo Bank Statement Loan in Pennsylvania
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.