The Quick Read: Yes, you can buy a North Carolina second home on assets instead of paycheck income, because select asset-based programs either count your eligible balances against the whole loan or convert them into monthly qualifying income, and the lender documents your assets rather than your employment, subject to underwriting. This is a consumer loan on a personal-use home, so it is not a DSCR loan.
- Two paths exist. On the asset qualifier path, usable assets must cover the entire loan. On the asset depletion path, usable assets divided by 60 months become qualifying income.
- Leverage on a second home: up to 80% on a purchase on either path. The refinance ceilings differ by path (see the table below).
- Assets are documented. Statements, seasoning, and sourcing apply. Your income is not documented on the qualifier path, but your balances are.
- Wrong tool for a rental business. If you plan to use the home personally, it belongs on this track, not on a DSCR loan.
The figures below are program ceilings and floors placed through select lenders in Lendmire’s network. Every file is underwritten individually, and nothing here is a commitment to lend.
Which Path Fits: Assets That Cover the Loan, or Assets That Become Income?
Pick the qualifier path if your usable assets equal or exceed the entire loan amount. Pick the depletion path if you want assets turned into monthly income that carries the housing payment. A borrower is reviewed on one path at a time. Never blend the two tables.
Here is the side-by-side for a North Carolina second home. The program figures do not change by state.
| Factor | Asset qualifier path | Asset depletion path |
|---|---|---|
| How you qualify | Usable assets cover the whole loan | Usable assets ÷ 60 months = income |
| Income documented | None | Derived income, run through DTI |
| Purchase leverage | Up to 80% | Up to 80% |
| Refinance leverage | 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 | The lender’s matrix |
Two details trip people up. First, the depletion path’s cash-out proceeds never count as qualifying assets. Second, whether the qualifier path allows cash-out at all is set by the lender and is not published, so plan around purchases and refinances there.
The qualifier path is the cleaner story for someone sitting on a large, simple pile of cash and brokerage balances. The depletion path suits a household whose assets are real but whose loan is large relative to them. It also works when you want the income number to carry a payment.
How Do Eligible Assets Get Counted?
Each account counts at a percentage of its balance, and the percentages differ by path. Brokerage, savings, and money market balances count in full on the qualifier path. On the depletion path, securities are trimmed. These are program ceilings, subject to underwriting.
| Asset | Qualifier path | Depletion path |
|---|---|---|
| Brokerage / securities | 100% | 80% |
| Savings, money market, cash accounts | 100% | 100% |
| Certificates of deposit | 100% | 100% |
| 401(k) / IRA | 90% under 59½, 100% at 59½+ | 70% at any age |
| Private stock | Not listed | 75% |
| Real-estate equity (other property) | Not listed | 60% |
Accounts combine. You do not need one account that covers everything.
The qualifier path, run once
Say the loan is $800,000. You hold $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% counts, so $200,000). That is $800,000 of usable assets against an $800,000 loan, so the file is reviewed on assets alone, subject to underwriting.
The depletion path, run once
Say you hold $1,500,000 in securities (80% counts, so $1,200,000) plus $300,000 in cash (100%). Usable assets total $1,500,000. Divide by 60 months and you get $25,000 of monthly qualifying income. That income then carries the housing payment and your other debts through the debt-to-income test. The lender’s own calculation governs, and this is illustration only.
What does not count
The home you are buying cannot be one of your qualifying assets. 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 are not eligible.
Crypto, precious metals, collectibles, and borrowed or pledged funds are not published as eligible on either path. Don’t expect a percentage. The documented route is converting them to a seasoned cash balance in a regulated account, with the source reviewed by the lender.
What Do the Statements and Seasoning Look Like?
Both paths document the assets. “No income documentation” never means “no documentation.” Across the programs Lendmire places files with, the statements are where files stall, not the math.
- Qualifier path: 60 days of seasoning and two months of statements for each qualifying account.
- Depletion path: statements 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.
- Depletion minimums: usable assets of at least the lesser of $1,000,000 or 1.25 times the loan balance. When assets are your only income source, never below $250,000 liquid.
- Reserves: on the qualifier path, none required at or below 75% loan-to-value. Above that, the lender sets them. The depletion path has no published reserve months.
- Credit history: housing history of 0x30x12, with one 30-day late in the last twelve months considered case by case. Multiple bankruptcies are not eligible. After a housing event, the depletion path wants 4 years of seasoning.
Large recent deposits need a paper trail. A transfer between your own accounts is easy to explain. A mystery wire is not.
Does It Work for a Second Home Specifically?
Yes, both paths cover principal residences and second homes. The catch is what counts as a second home. Programs generally ask that you occupy it for part of the year, that it be suitable for year-round living, and that you control it rather than a rental pool or management company. Confirm the exact occupancy language in the program you are placed with.
Rental income is not used to qualify. Some programs tolerate occasional rental if you keep control and the income plays no part in the approval. Others restrict it. 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.
A lake cabin, a mountain retreat, a coastal cottage, a condo near a metro: the question for underwriting is how you will use it, not where it sits. Occupancy follows actual use, not the name on the title. Putting the house in an LLC does not turn a personal-use home into an investment property.
Asset-based financing is also available on investment property, but only on the depletion path. There the ceilings drop to 65% on a purchase or rate-and-term refinance and 60% on a cash-out, and a first-time investor needs a 700 score. That is a different loan for a different purpose.
Why Not Just Use a DSCR Loan?
Because a DSCR loan is built for rentals, not for a house you plan to enjoy. 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 line is drawn by use. The CFPB’s Regulation Z commentary says that if you expect to occupy a property more than 14 days in the coming year, it cannot be treated as non-owner-occupied. Its example is a beach house the owner uses for a month each summer and rents out the rest of the year. The business-purpose exemption itself sits at 1026.3(a) of 12 CFR 1026.3.
In practice, a second home is a consumer mortgage, and the standard consumer-loan disclosures, the Loan Estimate and Closing Disclosure, apply. A DSCR loan is a business-purpose loan and is exempt from those disclosures.
So calling a personal-use vacation home an investment to get DSCR financing is a bad bet. The occupancy certification would be false, and a lender can treat that as a serious problem. The paperwork asks about use for a reason.
Sequence matters. Buy the personal-use home on assets first. Then finance actual rentals through DSCR, which qualifies primarily on property-level rental income covering the payment, subject to lender guidelines. The complete DSCR loans guide explains how that side works.
Who Should Use This Path (and Who Should Skip It)
This path fits cash-heavy, income-light households. Think retirees living on a portfolio, someone who just sold a business, an inheritance or settlement recipient, or an early-retired professional. Large balances, small documented income.
Skip it if you plan to run the property as a rental business. Skip it if your liquid assets are earmarked for your next rental purchase. (Count the money first. The same dollars cannot be both the down payment and the qualifying pool, and the lender decides how those funds are treated.)
There is a real tradeoff here. Qualifying on assets means keeping those assets in place and seasoned. A market drop trims securities balances at the haircut percentages. The more your pool leans on stocks, the more cushion you want. Honestly, the pool that is mostly cash and CDs is the easiest to underwrite, though it may also be the one earning the least.
If you are pairing this with other income, the depletion path allows asset-derived income to supplement documented income up to a 45% debt-to-income ratio. When it supplements, the minimum-assets rule is waived.
If your assets just arrived from a sale or windfall, see Lendmire’s article How to Buy a Second Vacation Home on Post-Liquidity Event Assets.
How does it compare with the alternatives?
Each option below is described under its own program’s rules.
| Option | Best when | Catch |
|---|---|---|
| Pay cash | You want no loan at all | Ties up the portfolio |
| HELOC on another property | You hold usable equity elsewhere | Underwritten under that program’s rules |
| Conventional on documented income | W-2 or tax-return income is strong | Income-driven, so asset-rich borrowers can stall |
| Bank statement program | You document income with deposits | Built for self-employed income |
| DSCR | The property is a genuine rental | Not for personal-use homes |
Taxes, insurance, and HOA dues vary by county, and on the depletion path they sit inside the housing payment that your derived income must carry.
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, and its consumer mortgage lending is licensed in 16 states, North Carolina among them. Reach the team at 828-256-2183.
Key Terms Defined
Asset qualifier path: A program track where eligible assets, after the credit percentages, must equal or exceed the entire loan, and income is not documented.
Asset depletion path: A program track that divides usable assets by 60 months to create monthly qualifying income, which runs through the debt-to-income test.
Debt-to-income (DTI): The share of your monthly income that goes to the housing payment and other debts.
Seasoning: The time money has sat in your accounts, shown through statements, so the lender knows it is really yours.
Second home: A personal-use home you occupy part of the year, can live in year-round, and control yourself.
Business-purpose loan: A loan for an investment property, such as a rental. A DSCR loan is one.
Frequently Asked Questions
Do I have to sell my investments to qualify?
No. The assets stay in your accounts and are counted, not sold or pledged. The lender reviews statements and applies the percentages for the path you use. You will still need cash for the purchase itself, and the lender decides how those funds are treated.
Do retirement accounts count?
Yes, at a discount on both paths. On the qualifier path, 401(k) and IRA 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 rent the home out sometimes?
Some programs tolerate occasional rental if you keep control and the rental income does not help you qualify. Others restrict it. Heavy or managed rental use points toward a different loan type. Confirm the occupancy language before you commit to a plan.
Can crypto or precious metals count as assets?
Not directly. Neither path publishes them as eligible.
Can I combine asset income with a pension or other income?
On the depletion path, yes. Asset-derived income may supplement documented income up to a 45% debt-to-income ratio, and the minimum-assets rule is waived when it supplements. Treatment varies by program, so lay out all your income before choosing a path.
Lendmire’s asset-based mortgage in North Carolina page presents the program for North Carolina borrowers.
About Lendmire
As a mortgage broker (NMLS# 2371349), Lendmire helps self-employed and high-net-worth borrowers in 16 states qualify on bank statements, a profit-and-loss statement, 1099s or liquid assets instead of tax returns, through wholesale lenders. Lendmire is never the lender; program terms are set by the lender and its guidelines. Scotsman Guide named Lendmire a Top Mortgage Workplace in both 2025 and 2026.
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References
1. CFPB, Regulation Z § 1026.3 and commentary
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 Asset Depletion Income Is Calculated From Your Portfolio · Can You Get a HELOC With No Income by Qualifying on Assets? · Asset Depletion Income Formula and Haircuts
Guides: Asset-Based Mortgage in North Carolina
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.