The Quick Read: The asset qualifier path fits a retiree whose eligible assets cover the entire loan, because it documents no employment or income. The asset depletion path fits a retiree whose assets are large but fall short of the loan amount, because it turns usable assets into monthly qualifying income. A borrower is qualified on one path at a time, and Indiana does not change the program figures.
- Asset qualifier: eligible assets must equal or exceed the whole loan amount, subject to underwriting.
- Asset depletion: usable assets divided by 60 months become qualifying income that runs through the debt-to-income test.
- Leverage differs: the qualifier path goes up to 80% on a purchase and 75% on a refinance; the depletion path varies by occupancy.
- Asset credit differs: retirement accounts count at 90% or 100% on the qualifier path and 70% on the depletion path.
- Both paths document the assets. Skipping traditional personal-income documentation, pay stubs and employment verification never means skipping documentation.
Some lenders use these two labels as synonyms. Across Lendmire’s wholesale network, they are two different structures, and this article keeps them apart. Lendmire is a broker that arranges these mortgages through select lenders in its network, and consumer lending is licensed in 16 states, Indiana among them. Every figure below is a ceiling or floor on select programs, subject to underwriting, and not a commitment to lend.
Side-by-Side
| Factor | Asset Qualifier | Asset Depletion |
|---|---|---|
| Review basis | Eligible assets cover the whole loan | Assets ÷ 60 months = income, then DTI test |
| Income documented | None | Derived income only, or supplements real income |
| Loan amounts | Up to $4,000,000 | $125,000 to $3,500,000 |
| Purchase leverage | Up to 80% | Up to 80% home, 65% investment property |
| Refinance leverage | Up to 75% | 80% rate-and-term, 60% cash-out (home) |
| Retirement accounts | 90% under 59½, 100% after | 70% at any age |
| Seasoning | 60 days, two statements per account | Statements 120 days old plus one within 45 days |
| Reserves | None at or below 75% LTV | No published reserve months |
| Credit | 600 minimum | Lender’s matrix |
| Investment property | Not published | Yes, with lower leverage |
Both columns are Lendmire-network parameters. They are not interchangeable, and a file never borrows a percentage from the other path.
What Each Path Actually Does
The asset qualifier path asks one question: do the eligible assets, after credit percentages, equal or exceed the loan? If yes, the file is reviewed on assets alone. Brokerage accounts, certificates of deposit, money market and savings count at 100%. A 401(k) or IRA counts at 90% under age 59½ and 100% at 59½ or older. Accounts combine.
Run the numbers on an $800,000 loan. Say the borrower holds $330,000 in brokerage accounts (100%, so $330,000), $300,000 in a 401(k) under 59½ (90%, so $270,000) and $200,000 in savings (100%, so $200,000). That counts $800,000 of usable assets, and the file is reviewed on assets alone. The lender’s own calculation governs.
The asset depletion path works differently. Haircuts apply first, then the pool is divided by 60 months. Take $1,500,000 in securities at 80% ($1,200,000) plus $300,000 in cash at 100%. That is $1,500,000 usable, divided by 60 months, or $25,000 of monthly qualifying income. That income then carries the housing payment and other debts through the debt-to-income test. Nothing is withdrawn. The formula is a qualifying device, not a spend-down plan.
Why Both Exist (The Short Regulatory Note)
Consumer-purpose mortgages must show the borrower can repay. The CFPB’s ability-to-repay compliance guide says a creditor must consider debt-to-income or residual income, and the rule sets no fixed threshold. It also lets a lender rely on assets, so both structures have a legal footing. On a principal residence or second home, these are consumer loans, which is a different track from business-purpose rental financing.
When Asset Qualifier Is the Better Fit
The qualifier path is the cleaner file when the pile is big and the loan is modest against it. Picture a retiree in Carmel selling a longtime Indiana home and buying a smaller one in a warm-weather second location. After the sale, cash sits in a money market account. Brokerage balances and an IRA at 59½ or older add more. Everything counts at 100% or close to it. If the total clears the loan amount, there is no income to build, no divisor to argue about, and no debt-to-income calculation.
Three things make this path work:
1. Assets that cover the loan outright. Not a share of it. The whole amount.
2. Seasoned accounts. Sixty days of seasoning and two months of statements per qualifying account. Funds moved last week cause friction.
3. Credit at or above 600, with housing history reviewed case by case.
The tradeoff is that this path demands a lot of liquid or near-liquid assets. A retiree with $600,000 in assets looking at a $700,000 loan fails on this path no matter how steady the pension is. Another catch: whether cash-out proceeds are allowed on this path is set by the lender and not published, so a file planning a qualifier-path cash-out needs that answered early.
Retirement accounts are the easy spot to leave value on the table. Under 59½, an IRA counts at 90%. After that, it counts at 100%. For a retiree who is 62 or 70, that is a better treatment than the depletion path gives, which sets retirement accounts at 70% at any age.
When Asset Depletion Is the Better Fit
Depletion fits when the assets are large but the loan is larger than the usable pool, or when the borrower prefers to show income on paper. It is also the path where investment property is published, at lower leverage. A principal residence or second home on this path is a consumer-purpose loan. An investment property loan is business-purpose, so the occupancy and loan purpose are set at the start of the file.
Consider a retiree with $1,500,000 in usable assets who wants a loan above that pool. The qualifier path is closed, because eligible assets must equal or exceed the entire loan. On the depletion path, the same pool becomes $25,000 of monthly qualifying income, as in the example above. Whether that is enough depends on the debt-to-income test with the housing payment and other debts. The retiree keeps the money invested the entire time.
Rules specific to the depletion path:
- Minimums: qualified assets of at least the lesser of $1,000,000 or 1.25 times the loan, and never below $250,000 liquid when depletion is the only income source.
- Supplementing real income: asset-derived income can add to documented income, such as Social Security or a pension, up to a 45% debt-to-income ratio. When it supplements, the minimum-assets rule is waived.
- Haircuts: cash and CDs 100%, securities 80%, retirement 70%, real-estate equity 60%.
- Ineligible: 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.
- Credit: the lender’s matrix. A first-time investor on this path needs 700.
Leverage tightens here. A principal residence or second home goes up to 80% on a purchase or rate-and-term refinance and 60% on a cash-out refinance. An investment property goes up to 65% on a purchase or rate-and-term and 60% on a cash-out. Cash-out proceeds never count as qualifying assets.
Assets That Don’t Count on Either Path
Privately held stock is not eligible on either path. Cryptocurrency, precious metals, collectibles, business accounts beyond the borrower’s ownership share, and pledged or borrowed funds are not published as eligible either. The documented route is converting them to a seasoned cash balance in a regulated account, with the source reviewed by the lender. Do not plan on a percentage for any of them.
Funds from a business sale, an inheritance or a legal settlement are excused from the 120-day statement age on the depletion path. They still need to be documented.
Choosing: A Plain Decision List
Start with the loan amount, then the assets.
1. Add up eligible assets at qualifier-path percentages. If the total equals or exceeds the loan, the qualifier path is the simpler file.
2. If it falls short, run the depletion path. Apply the haircuts, divide by 60, and test the derived income against the housing payment and debts.
3. Check the account types. Heavy retirement balances at 59½ or older favor the qualifier path. Heavy securities balances with a bigger loan favor depletion.
4. Check occupancy. An investment property purchase points to depletion, at 65% leverage on a purchase. Leverage, reserves, and pricing vary by lender and program; the final terms follow the full file review.
5. Check real income. A pension or Social Security can combine with derived income up to 45% debt-to-income on the depletion path.
When neither fits, the answer may be documented income under another program, or a smaller loan. A retiree who owns rentals and wants to finance another rental often belongs in a different product. Business-purpose rental financing is DSCR, which qualifies primarily on property-level rental income covering the payment, subject to lender guidelines. The eCFR text of 12 CFR 1026.3 shows why that is a separate track: business-purpose credit sits outside the consumer ability-to-repay frame. Keep the loans separate. Mixing a personal-residence purpose and a rental purpose in one file creates a classification problem.
Practitioner Notes From the File Side
Statement age is where retiree files stall. On the depletion path, the oldest statement must be at least 120 days old at application, and the newest must be within 45 days. A retiree who opened a new brokerage account after selling a home often fails the first test. On the qualifier path, the same move fails the 60-day seasoning test. Moving money between accounts mid-file resets the clock on the receiving account.
The second friction point is double counting. Assets used to qualify cannot also fund the down payment and closing costs without the lender recounting the pool. Build the usable-asset number after the cash to close, not before.
Third: Indiana state facts like property taxes or local prices are context for the housing payment, not program parameters. The percentages and divisors above do not change by state.
Key Terms Defined
Usable assets: the account balances left after the credit percentage or haircut for each account type.
Qualifying income (depletion): usable assets divided by 60 months, used in the debt-to-income test.
Seasoning: how long funds have sat in an account before the application.
Debt-to-income (DTI): monthly debts, including the new housing payment, compared with monthly qualifying income.
Cash-out refinance: a refinance that returns proceeds to the borrower; those proceeds never count as qualifying assets.
The Verdict
Neither path is better in general. The qualifier path is simpler and treats retirement money more generously, but it needs assets that cover the whole loan. The depletion path stretches a smaller pool into a bigger loan and reaches investment property, but it applies heavier haircuts and tests the result through debt-to-income. Match the path to the loan size first, then to the account mix.
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 programs based on your statements, the property, credit profile, leverage, and your goals. Reach the team at 828-256-2183 or through the quote request page.
Frequently Asked Questions
Do I have to sell my investments to qualify?
No. Both paths count the balances in place. The depletion formula divides usable assets by 60 months to build qualifying income, but nothing is withdrawn. Accounts must stay documented and seasoned through the file, subject to underwriting.
Are asset qualifier and asset depletion the same thing?
Not in Lendmire’s network. Some lenders use the labels interchangeably, so ask any lender which definition it means. Here, the qualifier path covers the whole loan with assets and documents no income, while the depletion path converts assets into income for a debt-to-income test.
Does my age change what counts?
It does on the qualifier path. An IRA or 401(k) counts at 90% under age 59½ and 100% at 59½ or older. On the depletion path, retirement accounts count at 70% at any age.
Can I use this for a second home or an investment property?
A second home is reviewed on both paths. Investment property is published only on the depletion path, at up to 65% on a purchase or rate-and-term refinance and 60% on a cash-out. The qualifier path is described for principal residences and second homes.
Can I count my Social Security or pension?
On the depletion path, derived income can supplement documented income up to a 45% debt-to-income ratio, and the minimum-assets rule is waived when it does. The qualifier path documents no income, so a pension adds nothing to that file.
Lendmire’s asset-based mortgage in Indiana page presents the program for Indiana 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 traditional personal-income documentation, 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.
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References
1. CFPB — Ability-to-Repay and Qualified Mortgage Small Entity Compliance Guide
2. eCFR — 12 CFR 1026.3, Exempt Transactions
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 of a Brokerage Account Counts Toward a North Carolina Asset Qualifier Mortgage? · Can an Indiana Divorce Settlement Count as Assets for a Mortgage? · How a 401(k) Counts Toward a Tennessee Asset Qualifier Mortgage Under Age 59½
Guides: Asset-Based Mortgage in Indiana
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.