The Quick Read: An asset qualifier loan is reviewed for a borrower on the size of eligible, seasoned assets and documents no employment or income, while asset depletion turns those assets into a monthly qualifying income that runs through a debt-to-income test. A borrower is reviewed on one path at a time, subject to underwriting. The figures below are ceilings and floors from select programs in Lendmire’s wholesale network, not offers.
- Qualifier path: eligible assets, after credit percentages, must equal or exceed the entire loan amount. Loans run up to $4,000,000.
- Depletion path: usable assets divided by 60 months become qualifying income. Loans run $125,000 to $3,500,000.
- Leverage: the qualifier path allows up to 80% on a purchase and 75% on a refinance. The depletion path differs by occupancy, covered below.
- Documentation: assets are fully documented on both paths. Only income documentation is dropped on the qualifier path.
- Indiana: the figures do not change by state. Lendmire’s consumer mortgage lending is licensed in Indiana, among 16 states.
This page is written for the cash-heavy, income-light borrower: a retiree, someone who sold a business, an heir, a settlement recipient, or an early-retired professional living on a portfolio. Balances are large. Documented income is not.
Which Path Fits You?
Pick the qualifier path when your eligible assets cover the whole loan. Pick the depletion path when the assets are large but you need them to behave like income, or when you want to buy an investment property.
Across the wholesale network, the split is practical. The qualifier path is cleaner: no income, no employment, no debt-to-income test. The cost is a high bar, since the assets must equal the entire loan. The depletion path asks for less relative to the loan, but it adds a debt-to-income test and lower leverage on most collateral.
Other names float around. Asset utilization, asset-based qualification and asset depletion are often used loosely. Benzinga’s explainer notes that qualification criteria vary by lender, which is why the path name matters less than the guideline behind it. Here, “asset qualifier” and “asset depletion” mean the two paths described here, and nothing else.
Key Terms Defined
Asset qualifier path: qualification on eligible assets alone, with no employment or income documented.
Asset depletion path: a method that divides usable assets by a set number of months to create qualifying income.
Haircut: the share of an account’s balance that is not counted, because the asset can lose value or carries a penalty to access.
Divisor: the number of months used to spread usable assets into monthly income. On this program it is 60.
Seasoning: how long funds must sit in an account before they count.
Usable assets: the balance after credit percentages or haircuts are applied.
How the Asset Qualifier Path Works, Step by Step
The qualifier path counts each account at a set percentage, adds the results, and compares the total to the loan amount. If usable assets equal or exceed the loan, the file is reviewed on assets, subject to underwriting.
1. List the accounts. Brokerage, certificates of deposit, money market and savings all count at 100%. Accounts combine.
2. Apply the retirement rule. A 401(k) or IRA counts at 90% if the borrower is under 59½ and 100% at 59½ or older.
3. Check seasoning. Funds need 60 days of seasoning. Each qualifying account needs two months of statements.
4. Total and compare. The sum must cover the full loan amount.
5. Review credit. The published credit floor is 600. Housing history of 0x30x12 is the baseline, and one 30-day late in the last twelve months is considered case by case.
Here is the shape of a worked example, illustrative only. Take an $800,000 loan. The borrower holds $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%, so $200,000). Usable assets total $800,000. That equals the loan, so the file is reviewed on assets alone. The lender’s own calculation governs.
Notice what the example shows. The 401(k) is the account that shrinks. Turn 59½ and the same balance counts in full, which changes the math.
Reserves are simple on this path. None are required at or below 75% loan-to-value. Above that, the lender sets them. Because no income is documented, the lender’s ability-to-repay review rests on the assets.
How the Asset Depletion Path Works, Step by Step
The depletion path applies haircuts to each account, adds them up, divides by 60 months, and treats the result as monthly income. That income must carry the housing payment and other debts through the debt-to-income test.
1. Apply the haircuts. Cash accounts and certificates of deposit count at 100%. Securities count at 80%, private stock at 75%, retirement accounts at 70% at any age, and real-estate equity at 60%.
2. Total the usable assets.
3. Divide by 60. The quotient is monthly qualifying income.
4. Run the debt-to-income test. That income must carry the proposed housing payment plus other monthly debts.
5. Check the minimums. Qualified assets must be at least the lesser of $1,000,000 or 1.25 times the loan balance. When depletion is the only income source, liquid assets can never fall below $250,000.
Illustrative math: $1,500,000 in securities counts at 80%, or $1,200,000. Add $300,000 in cash at 100%. Usable assets are $1,500,000. Divided by 60 months, that is $25,000 of monthly qualifying income. That income then has to carry the payment and debts. The lender’s calculation governs.
Nothing is sold and nothing is pledged. Depletion is a formula for underwriting, not a withdrawal schedule. Asset-derived income can also supplement documented income, up to a 45% debt-to-income ratio. When it supplements, the minimum-assets rule is waived.
Leverage and Loan Size by Path
Leverage depends on the path, the transaction and the occupancy. Read each figure with its label, because blending the two tables is a common mistake on these files.
| Path and collateral | Purchase | Rate-and-term | Cash-out |
|---|---|---|---|
| Qualifier, principal residence or second home | Up to 80% | Up to 75% (refinance) | Set by lender, not published |
| Depletion, principal residence or second home | Up to 80% | Up to 80% | Up to 60% |
| Depletion, investment property | Up to 65% | Up to 65% | Up to 60% |
All of these are subject to underwriting and sit at the top of what select programs allow. Cash-out proceeds never count as qualifying assets on the depletion path. On the qualifier path, whether cash-out is allowed at all, and at what leverage, varies by lender, so no number is stated here.
Loan size also differs. The qualifier path runs up to $4,000,000. The depletion path runs $125,000 to $3,500,000.
Which Assets Count, and Which Don’t
Cash-like accounts count fully on both paths. Market-exposed and retirement accounts count at reduced percentages, and several asset types do not count at all.
| Asset | Qualifier path | Depletion path |
|---|---|---|
| Brokerage accounts | 100% | Securities at 80% |
| Savings, money market | 100% | Cash accounts at 100% |
| Certificates of deposit | 100% | 100% |
| 401(k), IRA | 90% under 59½, 100% at 59½+ | 70% at any age |
| Private stock | Not published | 75% |
| Real-estate equity | Not published | 60% |
The depletion path excludes 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.
Crypto, precious metals, collectibles, business accounts beyond your ownership share, and pledged or borrowed funds are not published as eligible on either path. The documented route is to convert them to a seasoned cash balance in a regulated account, with the lender reviewing the source. Do not assume they count at any percentage.
The haircut logic is plain. A securities account can drop in value, and a retirement account may carry taxes or penalties to reach. The percentage is the lender’s cushion.
Seasoning, Statements and Sourcing
Both paths document the assets in full. “No income documentation” never means “no documentation.”
On the qualifier path, funds need 60 days of seasoning, with two months of statements for each qualifying account. On the depletion path, statements must be at least 120 days old at application, plus the most recent statement within 45 days. Funds from the sale of a business, an inheritance or a legal settlement are excused from that seasoning, though the lender still reviews the source.
Here is where files stall. A borrower sells a large position or moves money between institutions a few weeks before applying. The old statements no longer match the new balance, and the underwriter asks for a paper trail on every transfer. Keep funds in place before applying, or be ready to document each move.
Retirement accounts add a second wrinkle. The percentage that counts depends on age on the qualifier path, and on the lender’s treatment on the depletion path. Provide the full statement, not a summary page.
Where the Rules Break
A few edge cases come up often enough to name.
Investment property. The depletion path is the route for investment property, at the lower 65% and 60% leverage shown above. The qualifier path is written for principal residences and second homes in this program. When the goal is a pure rental and the property’s rent covers its payment, a different product often fits better. DSCR financing qualifies primarily on property-level rental income covering the payment, subject to lender guidelines, and ignores personal income. Lendmire’s complete DSCR loans guide lays out when that route makes sense. Asset-based qualification suits the investor whose rent falls short or whose liquid wealth is large and property income is thin. Select lenders in the network will review sub-1.00 DSCR files, with leverage and terms adjusted.
Business purpose versus consumer purpose. Business-purpose investor loans sit outside many consumer rules. The CFPB’s TILA compilation states that credit to acquire non-owner-occupied rental property is considered business purpose credit. This asset-based program is different. It is a consumer mortgage, so TRID disclosures apply. The label on the loan does not decide the treatment. The stated purpose and the occupancy do.
First-time investors. On the depletion path, a first-time investor needs a 700 credit score. Otherwise the depletion path follows the lender’s score and loan-amount matrix. Final terms depend on lender guidelines, property type, leverage, and the borrower’s complete credit picture.
Credit events. Multiple bankruptcies are not eligible. A housing event needs 4 years of seasoning on the depletion path.
Liquidity after closing. The assets that qualify you stay in the file. Drawing them down after closing does not change the loan, but the minimums on the depletion path are measured at underwriting, so plan balances with that in mind.
How Does This Compare to Other Options?
Other programs document different things. The table shows what each one reads, as those programs’ own rules.
| Program | What it documents |
|---|---|
| Asset qualifier | Eligible assets cover the loan |
| Asset depletion | Assets converted to income, plus DTI |
| DSCR | Property rent against its payment |
| Bank statement | Personal income via deposits |
| Full-doc jumbo | Traditional personal-income documentation, W-2s, pay history |
For the borrower living on a portfolio, the bank statement program is the wrong tool. It reads deposits, and a retiree’s balances don’t generate deposits.
Agency depletion rules exist too, but they use much longer divisors. The StatementsReady explainer lays out a 360-month agency divisor. That is a different program from the 60-month divisor here. A longer divisor produces much less income from the same assets, which is why borrowers with large balances often look at non-agency programs.
Indiana Borrowers: What Changes and What Doesn’t
Nothing in the program figures changes by state. The percentages, seasoning, leverage and loan limits are the same for an Indiana purchase as anywhere else the program is available. Lendmire’s consumer mortgage lending is licensed in Indiana, along with fifteen other states. State facts such as local prices, taxes and insurance are context for the deal, not program parameters.
Federal rules also apply the same way in every state. No Indiana-specific rule for asset qualifier or depletion loans shapes these files. What matters for an Indiana file is property type, occupancy, the borrower’s age for retirement accounts, and how clean the statements are.
Common Mistakes on These Files
- Blending the tables. Quoting the qualifier path’s 100% brokerage credit next to the depletion path’s 80% securities haircut produces a number that fits neither program.
- Counting ineligible assets. Crypto, foreign funds and stock options do not count as published, whatever their market value.
- Moving money late. Transfers inside the seasoning window force a paper trail and can reset the clock.
- Assuming one path. A file that fails the qualifier path by a small margin may work on depletion, and the reverse can also be true. Run both.
- Confusing “no income documentation” with “no documentation.” Statements are required on both paths.
Not an approval route. Not a shortcut. A different way to read a strong balance sheet.
Frequently Asked Questions
Is an asset qualifier loan the same as an asset depletion loan?
No. The qualifier path requires eligible assets to cover the entire loan and documents no income. The depletion path divides usable assets by 60 months into income that runs through a debt-to-income test.
Do I have to sell my investments?
No. Nothing is sold and nothing is pledged. The assets are used in a qualifying formula, and the statements prove they exist and have been seasoned.
Can I use a 401(k) or IRA?
Yes, at reduced credit in most cases. On the qualifier path, retirement balances count at 90% under age 59½ and 100% at 59½ or older. On the depletion path they count at 70% at any age.
Can I buy a rental with an asset-based loan?
Through the depletion path, yes, at up to 65% on a purchase or rate-and-term refinance and 60% on a cash-out, subject to underwriting. The qualifier path is written for principal residences and second homes. If the rent covers the payment, DSCR financing may be the cleaner fit.
How much do I need in assets?
On the qualifier path, eligible assets after credit percentages must equal or exceed the loan. On the depletion path, qualified assets must be at least the lesser of $1,000,000 or 1.25 times the loan balance, and never below $250,000 liquid when depletion is the only income source.
Next Steps
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 mortgage broker arranging financing through select lenders in its wholesale network. Programs change, every file is underwritten individually, and nothing here is a commitment to lend.
Lendmire’s asset-based mortgage in Indiana page presents the program for Indiana borrowers.
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
1. Benzinga, asset depletion mortgage explainer
3. StatementsReady, asset depletion loan explainer
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 Depletion Jumbo Loan · How to Meet Jumbo Loan Asset Depletion Requirements for an Asset-Rich Retiree · How to Qualify for an Asset Qualifier Mortgage
Guides: Asset-Based Mortgage in Indiana
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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Disclosure information. Lendmire is a state-licensed mortgage brokerage under NMLS# 2371349. Lendmire is not a depository institution, direct lender, or financial advisor — all loans referenced are placed through wholesale lender partners and are subject to each lender's underwriting standards. This article is provided for general informational purposes and is not a commitment to lend, nor does it constitute financial, legal, or tax advice. Loan programs, terms, rates, and qualification standards change without notice and depend on borrower profile, property type, and the state in which the subject property is located. Equal Housing Opportunity provider. NMLS Consumer Access: nmlsconsumeraccess.org.