The Quick Read: It depends on the path: the asset qualifier path lets eligible assets cover the whole loan, up to $4,000,000 at 80% on a second-home purchase, while the asset depletion path turns assets into monthly income, with loans from $125,000 to $3,500,000, all subject to underwriting.
- Qualifier path: usable assets must equal or exceed the entire loan, and no employment or income is documented.
- Depletion path: usable assets divided by 60 months become qualifying income, which must carry the housing payment and other debts.
- Washington changes nothing in the program math. The limits are the same in every state where the program is placed.
- A borrower is qualified on one path at a time. The two sets of figures never blend.
- Your actual number comes from the lender’s calculation, not from any figure printed in an article.
What Sets the Limit on a Washington Second Home?
Three things cap the loan: the path you qualify on, the leverage allowed for the transaction, and how much of each account the lender counts. The state does not set the cap. A Washington lake cabin and a second home in another state run through the same grid.
This product is built for cash-heavy, income-light borrowers. Think of retirees, people who sold a business, recipients of an inheritance or settlement, early-retired professionals, and households living off a portfolio. Their balances are large and their documented income is small. Assets are documented on both paths. “No income documentation” never means “no documentation.”
Across Lendmire’s wholesale network, the first question on every file is which path fits. If your assets can cover the loan outright, the qualifier path is cleaner. If the assets are large but the loan is larger than they can cover, the depletion path turns them into income.
Which Path Fits: Assets Covering the Loan, or Assets Becoming Income?
The asset qualifier path asks one question: do your counted assets equal or exceed the loan? The asset depletion path asks a different one: does the income built from your assets carry the payment? Each path has its own leverage, loan sizes and credit rules, so treat them separately.
| Item | Asset qualifier path | Asset depletion path |
|---|---|---|
| Purchase leverage, second home | Up to 80% | Up to 80% |
| Refinance leverage, second home | Up to 75% | Up to 80% rate-and-term; 60% cash-out |
| Loan amounts | Up to $4,000,000 | $125,000 to $3,500,000 |
| Credit | 600 minimum score | The lender’s score and loan-amount matrix |
| Income documented | None | Derived from assets; runs through debt-to-income |
Cash-out proceeds on the qualifier path are set by the lender and are not published, so no figure is stated here. On the depletion path, cash-out proceeds never count as qualifying assets. These are ceilings, not offers, and they apply through select programs, subject to underwriting.
How Does the Worked Example Look on the Qualifier Path?
On the qualifier path, add up each account at its credit percentage and compare the total to the loan. Picture an $800,000 loan. The borrower holds $330,000 in brokerage accounts, $300,000 in a 401(k) and $200,000 in savings, and is under 59½.
- Brokerage counts at 100%, so $330,000.
- The 401(k) counts at 90% under 59½, so $270,000.
- Savings count at 100%, so $200,000.
That totals $800,000 of usable assets against an $800,000 loan, so the file is reviewed on assets alone. This is illustrative, and the lender’s own calculation governs.
Now change one input. If the borrower were 59½ or older, the 401(k) would count at 100%, which lifts the pool. If the borrower were under that age and the pool came up short, the loan has to shrink or the down payment has to grow. Shortfalls are fixed by changing the loan, not by hoping the reviewer rounds up.
What Does the Depletion Path Do With the Same Assets?
The depletion path discounts each asset class, adds the results, and divides by 60 months. The result is a monthly qualifying income that must carry the full housing payment and your other debts through the debt-to-income test.
Take $1,500,000 in securities and $300,000 in cash. Securities count at 80%, so $1,200,000. Cash counts at 100%, so $300,000. That is $1,500,000 of usable assets, and divided by 60 months it becomes $25,000 of monthly qualifying income. That figure then has to cover the housing payment and other debts. The example is illustrative, and the lender’s own calculation governs.
Two minimums apply on this path. Qualified assets must be at least the lesser of $1,000,000 or 1.25 times the loan balance. And when asset depletion is the only source of income, at least $250,000 must be liquid. Asset-derived income may also supplement documented income up to a 45% debt-to-income ratio, and when it does, the minimum-assets rule is waived.
Which Assets Count, and at What Percentage?
Each path credits accounts differently, so check the table for your path before adding anything up.
| Asset | Qualifier path | Depletion path |
|---|---|---|
| Brokerage / securities | 100% | 80% |
| Cash, savings, money market | 100% | 100% (cash accounts) |
| Certificates of deposit | 100% | 100% |
| Retirement accounts | 90% under 59½; 100% at 59½+ | 70% at any age |
| Private stock | Not listed | 75% |
| Real-estate equity | Not listed | 60% |
Accounts combine. Not eligible on the depletion path: 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.
Cryptocurrency, 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 plan around them counting at a percentage.
What Seasoning and Credit Rules Slow Files Down?
Seasoning and statement age cause more preventable gaps than anything else on asset files. They are a documentation problem, not a leverage problem.
- Qualifier path: 60 days of seasoning and two months of statements for each qualifying account. A transfer made last week to bulk up a balance will not season.
- Depletion path: statements at least 120 days old at application, plus the most recent statement within 45 days. Sale-of-business, inheritance and legal-settlement funds are excused from that seasoning.
- Credit: a 600 minimum on the qualifier path. The depletion path follows the lender’s matrix. A first-time investor on the depletion path needs a 700 score.
- Housing history: 0x30x12. One 30-day late in the last twelve months is considered case by case. Multiple bankruptcies are not eligible, and a housing event needs 4 years of seasoning on the depletion path.
The same file also gets a credit review, so approval is never assumed.
Is It Really a Second Home?
The label matters because it decides the program lane. A true second home is one you keep for your own use. Freddie Mac defines a second home as a one-unit property the borrower occupies part of the year, and it limits short-term renting to properties outside a rental pool or similar arrangement. See Freddie Mac Seller/Servicer Guide section 4201.12. That is an agency contrast, not this program’s rule.
The same contrast shows up on income. A mortgage insurer’s training deck summarizing Fannie Mae’s second-home rules says rental income cannot be used to qualify on a second-home loan. It is an older deck, so confirm against the live guide. Asset-based files work the same way in spirit: the assets carry the file, and any rent you may collect is not what qualifies it.
If you plan to rent the Washington property, the file belongs in a different lane. The depletion path does cover investment property, at up to 65% on a purchase or rate-and-term refinance and 60% on a cash-out. Business-purpose rental financing is usually a DSCR loan. 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. Lendmire’s complete DSCR loans guide explains when that route fits better.
Washington defines a short-term rental as a stay of fewer than 30 consecutive nights, and it excludes some owner-occupied arrangements, per Chapter 64.37 RCW. 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. Misstating how you will use the home is a misrepresentation, not a workaround.
What Does Washington Add to the Picture?
Very little to the program math, and some to the planning. Property taxes, insurance and local prices differ by county and shape the payment you are carrying. On the depletion path they hit the debt-to-income test directly, because the derived income has to carry them.
A few practical Washington points:
- Out-of-state buyers: Lendmire’s consumer mortgage lending is licensed in 16 states, and Washington is one of them. Someone living elsewhere can still buy in Washington through this program, subject to underwriting.
- Property types: waterfront, rural and condo properties draw closer review. Confirm eligibility at the property level before you commit to a purchase contract.
- Reserves: none are required on the qualifier path at or below 75% loan-to-value. Above that the lender sets them. The depletion path has no published reserve months.
Why Do Two Lenders Give Two Answers?
Method differences. Lenders in the network apply their own credit percentages, matrix and property overlays within the published ranges. Across files, the same borrower can see a different usable-asset total depending on which program reviews it. That is why the stated figures are ceilings and floors, never promises.
Most programs weigh retirement balances more conservatively than cash. The strictest overlays want longer statement histories on large deposits. A few lenders in the network lean toward the qualifier path when the assets truly cover the loan, because it removes the debt-to-income step.
Where Does the Portfolio Risk Sit?
The assets stay yours, and you do not have to sell them. But your counted pool can move. A falling market shrinks a securities balance before closing and after it. The depletion path is more exposed because securities count at 80% and the 60-month divisor leaves little room for a drop.
Cost and flexibility are the trade-offs. Asset-based files are reviewed one at a time and usually carry tighter documentation than a salary-based loan. Tax treatment varies; consult a qualified professional.
Key Terms Defined
Asset qualifier path: the route where eligible assets, after credit percentages, must equal or exceed the whole loan.
Asset depletion path: the route where usable assets divided by 60 months become qualifying monthly income.
Usable assets: the balance that counts after the lender applies its percentage to each account.
Seasoning: how long funds have sat in your accounts, shown by statements.
Debt-to-income: your monthly debts, including the new housing payment, compared with your qualifying income.
How Do You Check Your Number Before Applying?
1. List every account with its current balance and the date of its last statement.
2. Apply the percentages for the path you are testing, and keep the two paths separate.
3. Compare the total against the loan you want, or, on the depletion path, divide by 60 and test the income against the payment and other debts.
4. Confirm that each account has the right statement history for seasoning.
5. Decide honestly how you will use the property, because that sets the program lane.
Frequently Asked Questions
Do I have to sell my investments to qualify?
No. The assets stay in your accounts and are documented through statements. On the qualifier path they only need to equal or exceed the loan after the credit percentages. On the depletion path they are converted into income on paper, not liquidated.
Does the 401(k) count the same on both paths?
No. On the qualifier path, retirement accounts count at 90% under age 59½ and 100% at 59½ or older. On the depletion path, they count at 70% at any age. That difference can change which path fits.
Can I use this loan if I plan to rent the Washington home?
It depends on the use. A personal-use second home fits the second-home lane. If you plan to rent it, the depletion path covers investment property at lower leverage, and a DSCR loan is often the cleaner fit for a pure rental. Either way, the file must reflect your real intent.
Do cryptocurrency or gold count toward my total?
Neither is 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 of funds.
Is the Washington limit different from other states?
No. The program figures do not change by state. Washington affects the payment through local taxes and insurance and the property through its type and location.
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. Lendmire is a broker that places these files with select lenders in its wholesale network, and this article is not a commitment to lend.
Lendmire’s asset-based mortgage in Washington page presents the program for Washington borrowers.
About Lendmire
Lendmire, NMLS# 2371349, is a mortgage brokerage with consumer lending licenses in 16 states. Bank statement, P&L-only, 1099-only and asset-based mortgages are arranged through wholesale lending partners for borrowers whose tax returns understate their income, and each application is reviewed individually by the lender. Scotsman Guide named Lendmire a Top Mortgage Workplace in both 2025 and 2026.
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References
1. Freddie Mac Seller/Servicer Guide, section 4201.12
2. Enact training deck on Fannie Mae second-home purchases
3. Washington State Legislature, Chapter 64.37 RCW
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 an Asset Depletion Mortgage Works · Asset Depletion Mortgage vs HELOC on a Paid-Off Home · Dividend Income vs Asset Depletion for a Second Home Jumbo Loan
Guides: Asset-Based Mortgage in Washington
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.