The Quick Read: It depends on which path you use. On the asset qualifier path, your eligible assets must cover the entire loan, and loans reach $4,000,000. On the asset depletion path, your assets are converted into monthly income, and loans run from $125,000 to $3,500,000. Both are subject to underwriting.
- Qualifier path: eligible assets, after the 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 income must carry the housing payment and your other debts.
- Leverage on a second home: up to 80% on a purchase on either path. Refinances run 75% on the qualifier path, and cash-out on the depletion path tops out at 60%.
- One path at a time: a borrower is qualified on one path, never a blend of both.
- Use matters: a second home is one you use yourself. A house you plan to rent out is financed differently.
Which Path Sets Your Number?
Your number comes from the path, not from your income. The qualifier path asks whether your eligible assets equal the loan. The depletion path asks whether your assets, turned into income, can carry the payment. Which one fits depends on how much you hold and how large a loan you want.
Think of the qualifier path as “my accounts cover the loan.” The lender counts your accounts at set percentages. If the total equals or exceeds the loan amount, you qualify on assets alone. You do not document a job or income. You do document the assets, and you should expect to hand over statements.
The depletion path works like a paycheck built from your portfolio. The lender takes usable assets, divides by 60 months, and treats the result as monthly income. That income then runs through a debt-to-income test with your housing payment and other debts. The test includes the taxes and insurance on the Ohio house.
Across the wholesale network Lendmire works with, the qualifier path suits borrowers whose liquid balances are very large compared with the loan. The depletion path suits borrowers who want more leverage on a smaller asset base and can live with the income test. These figures are ceilings and floors, not offers. Every file is reviewed individually.
This article is written for Ohio borrowers, but the program figures do not change by state. Ohio brings the property, its taxes and its insurance. The loan limits and asset percentages stay the same.
What Binds First: The Five Limits on Your Loan
The smallest of several limits sets your loan amount. Most borrowers hit the asset count on the qualifier path and the debt-to-income test on the depletion path. Leverage and loan-size ceilings rarely bind first unless the purchase price is very high.
| Limit | Qualifier path | Depletion path |
|---|---|---|
| Loan-size range | Up to $4,000,000 | $125,000 to $3,500,000 |
| Leverage, purchase | Up to 80% | Up to 80% |
| Leverage, refinance | Up to 75% | 80% rate-and-term, 60% cash-out |
| Main test | Assets at least the full loan | Derived income carries all debts |
| Credit | 600 minimum score | The lender’s matrix |
Read the table by column. A figure from one path never applies on the other. The depletion path also has a floor on assets. Qualified assets must be at least the lesser of $1,000,000 or 1.25 times the loan balance. They must also never fall below $250,000 in liquid assets when depletion is your only source of income.
Leverage matters on both paths, but it works differently. On a purchase, 80% loan-to-value means you put down at least 20% of the price. Loan-to-value (LTV) is the loan divided by the property’s value. A cabin priced near the top of your range will hit the leverage cap before it hits the asset test.
How Each Path Counts Your Accounts
Lenders do not count every dollar at full value. They apply a percentage to each account type, often called a haircut when it is below 100%. The percentages differ by path, so keep the two tables apart.
Asset qualifier path (share of the balance that counts):
| Asset | Counts at |
|---|---|
| Brokerage accounts | 100% |
| Certificates of deposit | 100% |
| Money market and savings | 100% |
| 401(k) and IRA, under age 59½ | 90% |
| 401(k) and IRA, age 59½ or older | 100% |
Accounts combine, so your brokerage, savings and retirement balances can be added together toward the loan.
Asset depletion path (share of the balance that counts):
| Asset | Counts at |
|---|---|
| Cash accounts and CDs | 100% |
| Securities | 80% |
| Private stock | 75% |
| Retirement accounts, any age | 70% |
| Real-estate equity | 60% |
Some assets do not count on the depletion path at all. They include 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.
Other asset types are not published as eligible on either path. Cryptocurrency, precious metals, collectibles, pledged or borrowed funds, and business accounts beyond your ownership share fall here. The documented route is to convert them to a seasoned cash balance in a regulated account. The lender then reviews where the money came from.
Cash-out proceeds from a refinance never count as qualifying assets on the depletion path. You cannot borrow against the house and then use that money to qualify for the house.
Worked Example: When Your Assets Cover the Loan
Say you want an $800,000 loan on the qualifier path. You hold $330,000 in brokerage accounts, $300,000 in a 401(k) and $200,000 in savings. You are under 59½.
Here is how the lender would count it:
- Brokerage: $330,000 at 100% counts as $330,000.
- 401(k): $300,000 at 90% counts as $270,000.
- Savings: $200,000 at 100% counts as $200,000.
That totals $800,000 of usable assets. It equals the loan, so this borrower is reviewed on assets alone, subject to underwriting. If the 401(k) holder were 59½ or older, that account would count at 100% and the cushion would grow.
Two cautions apply. This is an illustration, and the lender’s own calculation governs. Also, money you spend on the down payment and closing costs leaves the account, so ask how your lender treats the balance that remains after closing. Many borrowers size the loan to the assets left over, not the assets they have today.
Worked Example: When Your Assets Become Income
Now consider an investor on the depletion path who holds $1,500,000 in securities and $300,000 in cash. The securities count at 80%, which is $1,200,000. The cash counts at 100%, which is $300,000.
Usable assets total $1,500,000. Divide by 60 months and you get $25,000 of monthly qualifying income. That income then has to carry the housing payment and your other debts through the debt-to-income test. Debt-to-income compares your monthly debts to your monthly income. A borrower with a large existing mortgage and car loans has less room for the new payment.
Asset-derived income can also supplement documented income, up to a 45% debt-to-income ratio. When it supplements income you already document, the minimum-assets rule is waived.
Here is the practical difference between the two examples. The qualifier path asks how much you hold. The depletion path asks how much room the income leaves after your existing obligations. A borrower with a modest mortgage on a primary home usually has more room than one carrying several loans.
Second Home Means You Use It
A second home is a property you use yourself, and that definition drives which loan fits. If you spend weekends at the Ohio house, an asset-based mortgage can work. If you plan to rent it out for steady income, you are in investor territory, and a different product applies.
The pivot matters because rent is not part of the asset-based math. These loans look at your assets, your credit and the property. They do not give you credit for rent. If a lake cottage will earn rent, the clean route is financing it as an investment property. That is where a debt service coverage ratio (DSCR) loan comes in. DSCR divides the property’s rent by its full monthly payment, including taxes, insurance and association dues.
Here is the business-purpose point in plain terms. 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 Truth in Lending summary treats credit to acquire rental property that is not owner-occupied as business-purpose credit. A law-firm analysis from Hunton Andrews Kurth notes that the Regulation Z commentary uses 14 days of planned owner occupancy in the coming year as the line. Personal use beyond that moves a file away from a clean rental. How a given program treats personal stays is set by that program, so ask before you write the contract.
The label also does not settle the question on its own. Compliance Alliance stresses that the purpose of the loan controls, not just the name on the property. Call a property a rental when you do not actually plan to rent it out, and you create problems you do not want.
If you do want to rent it out, the asset-based mortgage can still apply. On the depletion path, an investment property carries lower leverage: up to 65% on a purchase or rate-and-term refinance, and 60% on a cash-out refinance. Business-purpose rental financing is a different decision. Lendmire’s complete DSCR loans guide explains how the rent-based route works. Some programs go below 1.00 coverage through select lenders in the network, though leverage and terms adjust when they do.
Same Pool, Three Jobs
The same portfolio often has to do three jobs: fund the down payment, pay closing costs, and then qualify the loan. That is where borrowers overestimate what they can borrow. A balance counted for qualifying cannot also be spent twice.
On a purchase at 80% LTV, the down payment is the other 20%. That money comes out of your accounts first. Closing costs follow. What remains is what the lender can count, and on the qualifier path that remainder has to reach the loan amount. Final terms depend on the lender’s guidelines, the property type, and the borrower’s complete credit picture.
Work in this order:
1. Pick the purchase price and the LTV you want.
2. Set aside the down payment and closing costs from the accounts that will hold the least value for qualifying.
3. Run the remaining balances through the percentage tables for your path.
4. Compare the total with the loan amount, or divide it by 60 for the depletion path.
Which accounts to spend first is a real decision. A brokerage account that counts at 100% on the qualifier path is more valuable to qualify with than one that counts at 80% on the depletion path. Spending the less useful balance first can leave you with a stronger file.
On the qualifier path, reserves are not required at or below 75% LTV. Above that, the lender sets them. On the depletion path, no reserve months are published. Both are subject to underwriting. Each figure is subject to lender guidelines and a complete review of property type, leverage, and credit.
Pitfalls That Shrink Your Number
Most surprises come from seasoning and paperwork, not from the formula. Know the rules before you move money.
Seasoning. Seasoning is how long money has sat in an account before you use it to qualify. On the qualifier path, the lender wants 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 most recent statement within 45 days. Funds from the sale of a business, an inheritance or a legal settlement are excused from that depletion seasoning.
Large deposits. Moving money between accounts the week before you apply can reset the clock. A freshly deposited gift or transfer needs a documented source. Assets are documented on both paths. Skipping income documents never means skipping all documents.
Market swings. Securities count at 80% on the depletion path, and the value that matters is the one on your statement. A big drop between statements can shrink your usable assets. Holding more cash gives you steadier numbers.
Credit. The qualifier path has a 600 minimum score. The depletion path follows the lender’s matrix, and a first-time investor on the depletion path needs 700. Housing history of 0x30x12 is expected, and one 30-day late in the last twelve months is considered case by case. Multiple bankruptcies are not eligible. A housing event needs four years of seasoning on the depletion path.
Retirement access. Retirement balances count at a reduced percentage, because withdrawals can trigger taxes and penalties. Tax treatment varies; consult a qualified professional before moving retirement funds.
Asset-Based or Something Else?
An asset-based mortgage is the right tool when your balances are large and your documented income is not. It is the wrong tool when you have strong documented income, or when you plan to rent the property.
| Option | Who it fits | What it looks at |
|---|---|---|
| Asset-based mortgage | Cash-rich, income-light buyers | Your assets and credit |
| Bank statement loan | Borrowers who document income with deposits | Business or personal deposits |
| DSCR loan | Investors renting the property | The property’s rent against its payment |
| HELOC or home equity loan | Owners with equity in a home they already own | The value of that home |
A home equity loan is not a purchase loan. It borrows against what you already own and uses a different formula. It is a fair alternative if you have equity in a primary home and want cash for a down payment. But it adds a second payment, and it is a separate decision from financing the Ohio house itself.
The bank statement program is for self-employed borrowers whose income shows up in deposits. If that describes you, you may not need to touch your portfolio to qualify. Many investors compare both options before picking.
Key Terms Defined
Asset qualifier path: the route where eligible assets, after the credit percentages, must equal or exceed the whole loan, with no income documented.
Asset depletion path: the route where usable assets divided by 60 months become qualifying monthly income that runs through the debt-to-income test.
Usable assets: your account balances after the lender applies the percentage each account type counts at.
Seasoning: the time money has sat in an account, or the time since a housing event, before the lender counts it.
Loan-to-value (LTV): the loan amount divided by the property’s value, expressed as a percentage.
Debt-to-income (DTI): your monthly debts divided by your monthly income.
DSCR: a property’s monthly rent divided by its full monthly payment, used for rental financing.
Frequently Asked Questions
Can I qualify on an Ohio second home without showing income?
On the asset qualifier path, yes. No employment or income is documented, and the assets must cover the entire loan, subject to underwriting. You still provide account statements, credit information and property documents. The depletion path is different: it converts assets into income and tests it against your debts.
Do retirement accounts count toward the loan?
Yes, at a reduced percentage in most cases. On the qualifier path, a 401(k) or IRA counts at 90% if you are under 59½ and 100% at 59½ or older. On the depletion path, retirement accounts count at 70% at any age. The two percentages never mix on one file.
Can I rent out the Ohio house if I use an asset-based mortgage?
An asset-based mortgage is built for a home you use. Rent is not part of the qualifying math, and personal use is what makes it a second home. If you plan real rental use, the property is usually treated as an investment property, and the leverage on the depletion path is lower. A rent-based DSCR loan is often the better fit for a pure rental.
Can I take cash out of the Ohio house?
On the depletion path, cash-out refinances on a second home go up to 60% LTV, and cash-out proceeds never count as qualifying assets. Qualifier-path cash-out terms are set by the lender and are not published. Ask for the specific program’s terms before you assume cash-out is available. Leverage, reserves, and pricing vary by lender and program; the final terms follow the full file review.
Does being in Ohio change how much I can borrow?
The program figures do not change by state. The loan-size ranges, leverage caps and asset percentages stay the same. What changes is the property: its price, its taxes and its insurance all feed the depletion path’s debt-to-income test. Lendmire’s consumer mortgage lending is licensed in 16 states, Ohio among them.
Next Steps
Start by adding up your statements and sorting them into the categories above. Decide whether the Ohio house will stay personal or become a rental, since that choice changes the loan. Then compare which path leaves you more room after the down payment and closing costs.
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 that arranges these loans through select lenders in its network, and nothing here is a commitment to lend.
Ohio’s lakeside and wooded second-home markets reward the buyer who sorted out the use of the property before sorting out the loan.
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. CFPB Truth in Lending Act summary
2. Hunton Andrews Kurth, “Beware of Business Purpose”
3. Compliance Alliance, Regulation Z and Investment Properties
This article is part of Lendmire’s asset-based mortgage program — full qualification details, guidelines, and scenarios live on the program page.
Related reading: Does a Securities-Backed Line of Credit Hurt Your Asset-Based Mortgage Application? · Savings Account vs Brokerage Account: Which Counts More on an Asset-Based Mortgage? · Can Equity in a Rental Property Help You Qualify for an Asset-Based Mortgage?
Guides: Asset-Based Mortgage in Ohio
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
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- Lendmire LLC · Firm NMLS# 2371349 · Verify firm licensure
Required disclosures. Lendmire (NMLS# 2371349) operates as a licensed mortgage broker, not a direct lender or depository. The discussion in this article is general in nature and should not be relied upon as financial, legal, or tax advice — every investment scenario is unique and should be reviewed by a qualified professional. Any loan inquiry is subject to lender underwriting, and this article is not a commitment to lend or a guarantee of approval. Mortgage rates, loan terms, and program guidelines vary by borrower, property, and state, and may change without notice. Equal Housing Opportunity. Verify licensure at NMLS Consumer Access.