The Quick Read: The asset qualifier path covers your entire loan with eligible assets and documents no income. The asset depletion path turns usable assets into monthly qualifying income that must pass a debt-to-income test. For a retiree with large balances and little taxable income, the choice comes down to loan size, how much of the money sits in retirement accounts, and how much leverage you need. You are qualified on one path at a time, never a blend of both, and every figure below is subject to underwriting.
- Asset qualifier: your eligible assets, after credit percentages, must equal or exceed the whole loan. No employment or income is documented.
- Asset depletion: usable assets divided by 60 months become qualifying income that must carry the housing payment and your other debts.
- Retirement money counts more on the qualifier path: 100% at age 59½ or older, versus 70% at any age on the depletion path.
- Leverage runs the other way for some borrowers: the depletion path offers a 60% cash-out option on a principal residence or second home, and it is the only path with published investment-property leverage.
- Rental property buyers have a third route: a business-purpose DSCR loan is reviewed for the property on its rent instead. Terms vary by lender guidelines, property type, leverage, credit profile, and full file review.
If you live in Ohio, the same program figures apply to you as to any other borrower. Lendmire’s consumer mortgage business is licensed in 16 states, Ohio among them. Lendmire is a broker. It places files with select lenders in its wholesale network, and those lenders underwrite and approve.
The Honest Answer: Who Each Path Is For
The asset qualifier path is for a retiree whose liquid assets are big enough to cover the entire loan. If you are buying or refinancing a home and your brokerage, savings, CDs, and retirement balances add up to the loan amount or more after the credit percentages, this path skips income documentation entirely. Think of a home-sale seller downsizing, or a couple living on a portfolio.
The asset depletion path is for a retiree whose assets are large but do not need to match the loan. The lender converts those assets into a monthly income figure. That figure, alone or added to Social Security and pension income, has to carry the payment. It also reaches investment property and cash-out refinances, which the qualifier path does not publish.
Neither path is better in the abstract. One asks whether the money covers the loan. The other asks whether the money produces enough income to carry the payment.
Side-by-Side
| Factor | Asset Qualifier | Asset Depletion |
|---|---|---|
| Review basis | Eligible assets cover the whole loan | Assets ÷ 60 months = qualifying income |
| Income documented | None | Derived income, plus any documented income |
| Debt-to-income test | No income is documented | Yes, on the derived income |
| Property types | Principal residence, second home | Principal residence, second home, investment |
| Purchase leverage | Up to 80% | Up to 80% (home); 65% (investment) |
| Refinance leverage | Up to 75% | Up to 80% rate-and-term (home); 65% (investment) |
| Cash-out leverage | Set by lender, not published | Up to 60% (home or investment) |
| Loan amounts | Up to $4,000,000 | $125,000 to $3,500,000 |
| Retirement accounts | 90% under 59½; 100% at 59½+ | 70% at any age |
| Securities and brokerage | Brokerage 100% | Securities 80% |
| Credit | 600 minimum score | The lender’s matrix |
| Statement seasoning | 60 days; two months of statements per account | Statements 120+ days old plus one within 45 days |
| Reserves | None at or below 75% LTV | No published reserve months |
| Entity vesting | Consumer loan; confirm vesting early | Consumer loan; confirm vesting early |
| Timeline | Set by underwriting; no promise made | Set by underwriting; no promise made |
Three notes on reading the table. First, these are the figures Lendmire’s network publishes for each path, and they are ceilings and floors, not offers. Second, lenders define the two labels differently. Some draw the line at the divisor length, some at whether a debt-to-income ratio is computed at all, and some treat the terms as the same thing. Ask any lender which definition it uses before you compare quotes. Third, cash-out proceeds never count as qualifying assets on the depletion path.
When Asset Qualifier Is the Better Fit
Choose the qualifier path when your usable assets, after credit percentages, equal or exceed the loan. Its simplicity is the draw, along with the way it treats retirement money.
Retirement balances carry more weight. If you are 59½ or older, a 401(k) or IRA counts at 100% on the qualifier path. On the depletion path the same account counts at 70% at any age. Take a $400,000 IRA held by a 63-year-old. It counts as $400,000 toward the qualifier test and $280,000 before the 60-month division on the depletion path. That gap alone can decide the path.
Bigger loans fit. The qualifier path publishes loans up to $4,000,000. The depletion path tops out at $3,500,000.
No debt-to-income test. No income is documented, so there is no ratio for a low taxable income to fail. The lender’s ability-to-repay review rests on the assets.
Younger retirees get a haircut, not a wall. Under 59½ the retirement share counts at 90%. Consider an $800,000 loan, with $330,000 in brokerage accounts (100%), $300,000 in a 401(k) under 59½ (90%, so $270,000), and $200,000 in savings (100%). That counts $800,000 of usable assets and is reviewed on assets alone, subject to underwriting. The lender’s own calculation governs.
Reserves are light. On this path, no reserves are required at or below 75% loan-to-value. Above that, the lender sets them.
The tradeoffs matter too. The qualifier path publishes leverage only for a principal residence or second home, at up to 80% on a purchase and 75% on a refinance. It does not publish a cash-out figure, so do not plan around one. It also does not reach investment property. The assets must be seasoned: 60 days, with two months of statements for each qualifying account. The credit score floor is 600, and the lender reviews the rest of your credit file.
When Asset Depletion Is the Better Fit
Choose the depletion path when your assets are strong but do not equal the loan, when you want cash-out, or when you are buying investment property with a consumer-style asset test.
Your assets do not have to match the loan. The lender totals your usable assets after haircuts, divides by 60 months, and tests the result against the payment. Take $1,500,000 in securities (80%, so $1,200,000) plus $300,000 in cash (100%). That is $1,500,000 usable, divided by 60 months, for $25,000 of monthly qualifying income. That income then carries the housing payment and other debts through the debt-to-income test, subject to underwriting. Again, the lender’s own calculation governs.
It can supplement your documented income. A retiree with Social Security, a pension, or required withdrawals can add asset-derived income on top, up to a 45% debt-to-income ratio. When assets only supplement documented income, the minimum-assets rule is waived. Social Security and pension income count first, and assets fill the gap.
It reaches more property and loan types. On a principal residence or second home, leverage runs up to 80% on a purchase or rate-and-term refinance and 60% on a cash-out. On an investment property, it runs up to 65% on a purchase or rate-and-term refinance and 60% on a cash-out. Loans run from $125,000 to $3,500,000.
The haircuts are more detailed. Cash accounts and CDs count at 100%, securities at 80%, private stock at 75%, retirement accounts at 70%, and real-estate equity at 60%. 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 are not eligible.
The tradeoffs here run heavier. The depletion path carries minimums. Qualified assets must be at least the lesser of $1,000,000 or 1.25 times the loan balance. They must never fall below $250,000 liquid when asset depletion is your only income source. A first-time investor needs a 700 score, and a housing event needs 4 years of seasoning. Statements must be at least 120 days old at application, plus one recent statement within 45 days. Sale-of-business, inheritance, and legal-settlement funds are excused from that seasoning.
Why Retirement Accounts Change the Math
Retirement balances are where most retiree files tilt toward one path. The qualifier path rewards age: 90% under 59½, 100% after. The 59½ line comes from IRS Publication 590-B, which treats distributions after that age differently. The depletion path applies a flat 70%.
A required withdrawal also pulls the balance down over time. Required minimum distributions start at age 73 today, and the start age rises to 75 beginning in 2033. If you are close to that age, your balance on the statement today may be higher than it will be at your next refinance. That matters more on the depletion path, where balances become income. Both paths test balances at the time of the file.
Mixed Retirement Income: Assets as a Supplement
Many Ohio retirees do not live on assets alone. They collect Social Security, a pension, or both, and they hold a portfolio on top. Under the depletion path that documented income counts first. Asset-derived income then fills the gap up to the 45% debt-to-income ceiling.
Under the qualifier path, none of that matters. The test is whether your eligible assets cover the whole loan. Your pension and Social Security are not part of the file.
This is why the same retiree can look strong on one path and thin on the other. A couple with a modest loan and a large portfolio may fit the qualifier path cleanly. A couple with a larger loan, a smaller portfolio, and steady pension income may fit the depletion path better.
Documents and Seasoning for a Retiree
Both paths document the assets. “No income documentation” never means no documentation. Gather these before you apply:
- Two months of statements for each qualifying account on the qualifier path.
- Statements at least 120 days old plus one within 45 days on the depletion path.
- Identification and a credit authorization.
- A paper trail for any large recent deposit, such as the sale of a home, business, or an inheritance.
If your wealth sits in cryptocurrency, precious metals, collectibles, a business account beyond your ownership share, or borrowed funds, neither path publishes it as eligible. The documented route is converting it to a seasoned cash balance in a regulated account, with the source reviewed by the lender.
What Happens After Closing
The qualifying income on the depletion path is a calculation, not a withdrawal plan. Your assets are not sold or liquidated to close the loan. Still, keep liquidity beyond what the lender requires. A portfolio that supports the loan on paper should also survive a market drop without forcing you to sell. Balances can change between application and a later refinance, so treat the day-one test as a snapshot.
Buying a Rental? A Third Route
If you are buying a property to rent out, consider whether either asset path is the right tool. 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. The CFPB’s Regulation Z exempts credit extended primarily for business purposes, and the lender determines that purpose for each transaction.
A DSCR loan is reviewed primarily on property-level rental income covering the payment, subject to lender guidelines. Your credit, reserves, and experience attach to you as guarantor, and a personal guarantee generally still applies even when an LLC holds title, subject to program terms. Your portfolio does not size the loan, but it still serves as reserves and cash to close. DSCR coverage is also not the same as cash flow, since repairs, vacancy, and management sit outside the ratio.
A bank statement program is a different tool again. It is for borrowers who document income through deposits, not for retirees living on a portfolio.
Key Terms Defined
Asset qualifier: a path where eligible assets, after credit percentages, must cover the entire loan, with no income documented.
Asset depletion: a path where usable assets divided by 60 months become monthly qualifying income that goes through the debt-to-income test.
Haircut: the share of an account’s balance that does not count, such as 20% off securities on the depletion path.
Seasoning: how long funds or statements must have existed before the lender will count them.
Debt-to-income ratio: your monthly debts, including the new housing payment, divided by your monthly qualifying income.
Usable assets: the total left after applying each account’s credit percentage.
The Verdict
Pick the asset qualifier path if your eligible assets, after credit percentages, cover the entire loan and you want no income test. It tends to suit a retiree 59½ or older with big retirement balances, a larger loan, and a principal residence or second home.
Pick the asset depletion path if your assets fall short of the loan but produce enough income to carry it. It suits a retiree who wants cash-out, who buys investment property, or who wants to add asset income to Social Security and a pension.
If your goal is a rental that pays its own way, look at a DSCR loan instead. For the full set of program details, see Lendmire’s asset-based mortgage programs.
Tax treatment varies; consult a qualified professional before relying on any tax outcome.
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. Reach the team at 828-256-2183 or request a quote.
Frequently Asked Questions
Do I have to sell my investments to use either path?
No. The assets stay in your accounts. The depletion path uses them in a formula to produce qualifying income, and the qualifier path counts them against the loan. Neither requires liquidation, though the lender documents the accounts and seasons the balances.
Can I use my IRA or 401(k) on both paths?
Yes, with different treatment. On the qualifier path, retirement accounts count at 90% under 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 both paths for the same loan?
No. You are qualified on one path at a time, and the two tables are not blended. If your assets cover the loan outright, the qualifier path applies. If they must become income, the depletion path applies.
Does either path work for an investment property?
Only the depletion path publishes investment-property leverage: up to 65% on a purchase or rate-and-term refinance and up to 60% on a cash-out. A DSCR loan is reviewed for the property primarily on its rent, subject to lender guidelines. A retiree buying a rental may compare both.
Is this a no-doc loan?
No. You document the assets, your credit is reviewed, and the lender underwrites the file. What you skip on the qualifier path is documenting employment or income. Programs change, and each file is reviewed individually.
About Lendmire
Lendmire is a mortgage brokerage (NMLS# 2371349) licensed for consumer mortgage lending in 16 states, arranging bank statement and other alternative-documentation mortgages (P&L-only, 1099-only and asset-based paths) through a wholesale lending network. Eligibility is determined by the lender on each file. Scotsman Guide named Lendmire a Top Mortgage Workplace in both 2025 and 2026.
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References
2. NerdWallet, Required Minimum Distribution Calculator
3. CFPB, Regulation Z § 1026.3
This article is part of Lendmire’s asset-based mortgage program — full qualification details, guidelines, and scenarios live on the program page.
Related reading: Can You Buy Out an Ex-Spouse With an Asset Qualifier Refinance? · How to Buy Before You Sell in Washington Using an Asset Qualifier Mortgage · How to Finance an Ohio Vacation Home With an Asset Qualifier Mortgage
Guides: Asset-Based Mortgage in Ohio
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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Important disclosures. Lendmire (NMLS# 2371349) is a licensed mortgage brokerage. Lendmire is not a direct lender, depository institution, or financial advisor. All loan inquiries are subject to lender underwriting; this article does not constitute a commitment to lend. Rates, terms, and program guidelines are subject to change without notice and vary by borrower profile, property type, and state. Information in this article is general in nature and is not financial, legal, or tax advice. Equal Housing Opportunity. NMLS Consumer Access: nmlsconsumeraccess.org.