The Quick Read: It depends on the path: on the asset qualifier path your eligible assets must cover the entire loan, which can reach $4,000,000 at up to 80% loan-to-value on a purchase, while on the asset depletion path your assets are converted into monthly income, with loans from $125,000 to $3,500,000, all subject to underwriting. Loan-to-value (LTV) is the loan amount as a share of the home’s value. The figures below are ceilings, not offers, and the lender’s own calculation governs.
- Qualifier path: eligible assets, after credit percentages, must equal or exceed the whole loan. No employment or income is documented.
- Depletion path: usable assets divided by 60 months become qualifying income that must carry the full housing payment and your other debts.
- You use one path at a time. The two sets of rules never blend.
- Cash-heavy, income-light borrowers fit best: retirees, business sellers, inheritance or settlement recipients, and households living on a portfolio.
- Planning to rent the house? That changes the loan type. The rental section below explains how.
The Two Paths Side by Side
An asset-based mortgage does not ask for a paycheck. It asks what you own. Across the wholesale network Lendmire works with, two versions cover a North Carolina second home, and the table shows how they differ. Figures are typical program ceilings and floors, available through select programs, subject to underwriting.
| Factor | Asset qualifier path | Asset depletion path |
|---|---|---|
| How you qualify | Assets cover the whole loan | Assets ÷ 60 months = income |
| Second-home leverage | 80% purchase, 75% refinance | 80% purchase or rate-and-term; 60% cash-out |
| Loan amount | Up to $4,000,000 | $125,000 to $3,500,000 |
| Credit score | 600 minimum | The lender’s matrix |
| Statements | 60 days seasoned, 2 months each | 120 days old, plus one within 45 days |
Brokers see this mistake often: borrowers compare the two columns as if one program had two price tags. They are different tests. Pick the one that matches your balance sheet, then run the numbers inside that path only.
Which Path Fits You?
Start with one question: do your assets add up to the loan itself, or only to a large income stream?
The asset qualifier path suits borrowers whose eligible balances meet or exceed the full loan. If you plan to borrow $800,000, you need at least $800,000 of usable assets after the credit percentages. The loan is underwritten on those assets, and no employment or income is documented. Your credit, the property and the appraisal are still reviewed. The assets themselves are documented line by line. “No income documentation” never means “no documentation.”
The asset depletion path suits borrowers whose assets are large but do not fully cover the loan. The lender counts a share of each balance, adds it up, and divides by 60 months. That monthly figure then goes through the debt-to-income test. Debt-to-income (DTI) compares your monthly debts, including the new housing payment, to your monthly income. Here, the “income” is your assets stretched over five years.
One more use for the depletion path: it can supplement documented income. If you have some pension or business income, asset-derived income can be added up to a 45% DTI. When it supplements, the minimum-assets rule is waived.
How Much Can You Borrow on the Asset Qualifier Path?
On this path the loan ceiling is the lowest of three numbers: your leverage cap, your usable assets, and the $4,000,000 program maximum.
Start with how each asset counts. Brokerage accounts, certificates of deposit, money market and savings count at 100%. Retirement balances, such as a 401(k) or IRA, count at 90% if you are under 59½ and 100% once you reach 59½. Accounts combine.
Here is the shape of the math. Say you want an $800,000 loan. You hold $330,000 in brokerage accounts (100%, so $330,000 counts), $300,000 in a 401(k) while under 59½ (90%, so $270,000 counts) and $200,000 in savings (100%, so $200,000 counts). That adds up to $800,000 of usable assets, which covers the loan on assets alone. This is an illustration only. The lender’s own calculation governs.
Leverage is the second ceiling. On a second home, the qualifier path allows up to 80% LTV on a purchase and up to 75% on a refinance. Whether cash-out proceeds are allowed on this path, and at what leverage, is set by the lender and is not published, so no cash-out figure is promised here. Terms depend on the lender’s guidelines, the property type, the leverage, and a full review of the credit profile.
Reserves are the quiet detail. None are required at or below 75% LTV. Above that, the lender sets them. So a purchase at the full 80% leverage will likely bring a reserve requirement that a 75% purchase would not. That is a real tradeoff, and it is worth pricing both versions before you commit. The exact numbers vary by lender and program and follow a full review of property, leverage, and credit.
For credit, the published floor is 600. Housing history is reviewed as well, and a late payment in the last twelve months is considered case by case. Nothing here is an approval. Every file is underwritten individually.
How Much Can You Borrow on the Asset Depletion Path?
On the depletion path, the number is the lowest of the leverage cap, the debt-to-income limit, and the program’s asset minimums.
The haircuts are steeper here, because the lender counts less of each balance. Cash accounts and certificates of deposit count at 100%. Securities count at 80%. Private stock counts at 75%. Retirement accounts count at 70% at any age. Real-estate equity counts at 60%.
The example: $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. Divide by 60 months and you get $25,000 of monthly qualifying income. That income must then carry the housing payment and your other debts through the DTI test.
That last sentence matters in North Carolina. Taxes, insurance and any HOA dues are part of the housing payment. On this path, a higher insurance bill shrinks the loan you can support. On the qualifier path, no income is documented, so those costs matter less to the calculation, though they still matter to your budget.
Leverage on a second home runs up to 80% on a purchase or rate-and-term refinance and 60% on a cash-out refinance. Cash-out proceeds never count as qualifying assets. Loans run from $125,000 to $3,500,000.
Two asset minimums apply. You need qualified assets of at least the lesser of $1,000,000 or 1.25 times the loan balance. And if asset depletion is your only income source, you need no less than $250,000 liquid. A housing event, such as a foreclosure, needs 4 years of seasoning. Credit follows the lender’s score and loan-amount matrix.
Why does the divisor matter so much? Because every usable dollar adds the same small slice to monthly income, so a modest change in how your assets are counted moves the loan size noticeably. Shifting money from securities (80%) to cash (100%) lifts what counts, and a move into retirement accounts (70%) lowers it.
What Counts, and What Does Not
Seasoning decides whether an account counts at all. On the qualifier path, funds need 60 days of seasoning and two months of statements for each qualifying account. On the depletion path, statements must be at least 120 days old at application, plus a recent statement within 45 days. Sale-of-business, inheritance and legal-settlement funds are excused from that seasoning on the depletion path.
Assets that do not count on the depletion path:
- Custodial accounts and deferred compensation
- Escrow accounts and foreign funds
- Cash on hand
- Stock options and non-vested restricted stock units
- Funds from non-regulated financial companies
Other asset classes are not published as eligible on either path. That covers cryptocurrency, precious metals, collectibles, business accounts beyond your ownership share, and pledged or borrowed funds. The documented route is to convert them to cash in a regulated account and let the lender review the source. Plan for that time before you apply, not after.
One tax note, since retirement accounts come up: tax treatment varies; consult a qualified professional.
What Actually Limits Your Number
Most people assume the LTV cap is the limit. Often it isn’t.
Take a purchase on the qualifier path. The cap says you can borrow up to 80% of the price. But if your usable assets stop short of the loan, assets are the limit. On the depletion path, DTI is often the binding constraint, because the housing payment must fit inside that derived monthly income.
The down payment adds a practical wrinkle. Money you spend on the down payment, closing costs and any required reserves is no longer sitting in the account. Size your plan on what remains after you pay for the house, not on what the statement shows today. The lender’s calculation governs.
Loan size matters too. The qualifier path tops out at $4,000,000 and the depletion path at $3,500,000. If your target is above those, this program is not the right fit, and a jumbo or other structure may be.
So the borrowing power on a second home is:
1. Your usable assets after the percentages.
2. The leverage cap for your transaction and occupancy.
3. The program loan-size range.
4. On the depletion path, the DTI test.
Whichever is lowest wins.
North Carolina Realities
The program figures do not change by state. What changes is the property and its carrying costs.
On the coast, the first surprise is usually insurance. Wind and hail coverage is often excluded from standard homeowners policies in coastal counties and bought separately, and flood coverage may be required on top. Those policies feed straight into the housing payment. On the depletion path, they lower the loan you can support. Get real insurance quotes before you fix a purchase price, not after.
In the mountains, the common issue is HOA and community rules. Many cabin and resort communities restrict rentals or set minimum stays. That matters if you intend to rent, and it affects which loan type you use (see the next section).
In the Triangle and Charlotte, a second home is usually a condo or townhome near work or family. Condos and rural collateral often carry tighter overlays than a detached suburban home, so confirm the property type early. Eligibility depends on the lender, the appraisal and the file.
Lendmire brokers consumer mortgages for North Carolina borrowers, one of 16 states where its consumer lending is licensed. Programs come through select lenders in its network. Lendmire arranges the loan. It does not make it.
What If You Plan to Rent It?
If you intend to rent the house, you are no longer shopping for a pure second-home loan. Rental use changes the loan’s purpose, and purpose drives the product.
A federal rulemaking on mortgage lending, published in the Federal Register, treats investment-purpose loans as business-purpose loans. It treats vacation-home loans as consumer credit. That is why a house you will use yourself generally cannot be financed on a rental-income program, while a true rental can.
There are two routes for a rental:
- A DSCR loan. The debt service coverage ratio compares the property’s monthly rent to its full monthly payment (principal, interest, taxes, insurance and any HOA dues). The loan is reviewed primarily on property-level rental income covering the payment, subject to lender guidelines. Programs below a 1.00 ratio are available through select lenders in the network, but leverage and terms adjust.
- The asset depletion path, as an investment property. Here the leverage is lower: up to 65% on a purchase or rate-and-term refinance and 60% on a cash-out. A first-time investor on this path needs a 700 score.
If you rent it only occasionally, the answer depends on the program’s occupancy and personal-use rules. The test looks at what the loan is for, not what the property is called.
North Carolina’s Vacation Rental Act applies to residential property rented as a vacation rental and calls for written rental agreements. It is background for operators, not a lending rule, and it does not change your loan amount. Short-term rental rules can vary by city, county, HOA, and property type, so investors should confirm local rules before relying on projected rental income.
Mistakes That Shrink the Number
- Counting assets that do not count. Business accounts, borrowed funds and crypto in a wallet do not meet the published eligible list.
- Moving money at the last minute. Funds that have not been seasoned may not count.
- Ignoring the down payment. The money you spend leaves the account.
- Mixing the paths. You use one at a time.
- Forgetting insurance. On the depletion path, a coastal insurance bill lowers the supportable loan.
- Assuming leverage and loan size are the same thing. The lowest of your ceilings decides the loan.
- Planning to rent without telling the lender. Occupancy and purpose must match the product.
Key Terms Defined
Asset qualifier path: the approach where eligible assets, after credit percentages, equal or exceed the whole loan.
Asset depletion path: the approach where usable assets divided by 60 months become monthly qualifying income.
Loan-to-value (LTV): the loan amount divided by the appraised value or purchase price.
Seasoning: how long funds have sat in an account before the lender counts them.
Debt-to-income (DTI): your monthly debts, including the new payment, compared with your monthly income.
DSCR: debt service coverage ratio, the property’s rent divided by its monthly payment, used on rental loans.
Frequently Asked Questions
Do I have to sell my investments to qualify?
No. Your assets stay where they are. The lender documents them and counts a share of each balance. They need to be in regulated accounts with the required statements and seasoning. Selling is only needed if you want to convert an ineligible asset, such as crypto, into a seasoned cash balance.
Is there a maximum loan amount?
Yes. Final terms depend on the lender’s guidelines, the property type, and the borrower’s complete credit picture.
Yes. The asset qualifier path goes up to $4,000,000. The asset depletion path runs from $125,000 to $3,500,000. Both are subject to underwriting, leverage caps, your usable assets, the property type and your full credit picture.
Does an existing mortgage on my home matter?
It can. On the depletion path, your other debts, including an existing mortgage, run through the DTI test against your derived income. On the qualifier path, no income is documented, and the lender’s review rests on the assets. Either way, your housing history is reviewed, and the lender’s guidelines govern.
Can I use my 401(k) or IRA?
Yes, at a discount. 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.
What if I want to rent the home some of the year?
Then the loan’s purpose matters. A house you rent is generally an investment property, which points to a rental-income loan or the depletion path’s investment-property leverage. Occasional rental use depends on the program’s occupancy and personal-use rules, so tell your broker up front.
Next Step
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. A coastal North Carolina house with a heavy insurance bill and a mountain cabin with HOA rental limits can produce very different numbers on identical balances, so the property deserves as much attention as the portfolio.
About Lendmire
Lendmire (NMLS# 2371349) is a mortgage brokerage serving self-employed and high-net-worth borrowers in 16 states. Bank statement, P&L-only, 1099-only and asset-based mortgages are arranged through wholesale lending channels; Lendmire brokers the financing and the lender underwrites each application. Scotsman Guide named Lendmire a Top Mortgage Workplace in both 2025 and 2026.
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References
1. Federal Register: Ability-to-Repay and Qualified Mortgage Standards Under the Truth in Lending Act
2. North Carolina General Assembly: Vacation Rental Act, Chapter 42A, Article 1
This article is part of Lendmire’s asset-based mortgage program — full qualification details, guidelines, and scenarios live on the program page.
Related reading: Pledged Asset Line vs Asset Qualifier Mortgage for a Montana Home Purchase · Can an Asset-Based Mortgage Fund a Jumbo Purchase? · How to Finance an Indiana Vacation Home With an Asset Qualifier Mortgage
Guides: Asset-Based Mortgage in North Carolina
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
- Mortgage Loan Originator · NMLS# 1129696 · Verify on NMLS Consumer Access
- North Carolina Real Estate Broker · License# 343312 · Verify on NCREC
- North Carolina Insurance Producer · License# 19053198 · Property, Casualty, Life, Health · Verify on NAIC SBS
- Lendmire LLC · Firm NMLS# 2371349 · Verify firm licensure
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.