The Quick Read: Yes, through select asset-based programs, a Pennsylvania second home can be qualified on assets instead of paycheck income, subject to underwriting. The assets are documented with statements, and nothing is sold. No traditional personal-income documentation, pay stubs or employment verification are involved on the qualifier path.
- Asset qualifier path: eligible assets must cover the entire loan, and no employment or income is documented.
- Asset depletion path: usable assets divided by 60 months become qualifying income that runs through the debt-to-income test.
- Leverage: up to 80% on a second-home purchase on either path, subject to underwriting.
- Seasoning: balances must be documented and aged, with statements for every qualifying account.
- DSCR is the wrong tool: a true second home is a personal-use loan, and rent does not qualify it.
Plenty of Pennsylvania buyers have this profile: big balances, small documented income. Think of a retiree living on a portfolio, someone who just sold a business, or an early-retired professional. A lake cabin in the Poconos or a place in the Laurel Highlands should not hinge on a W-2 you no longer have. Lendmire’s asset-based mortgage programs are built for that borrower. Lendmire is a broker, so it arranges these loans through select lenders in its network. The lenders underwrite and approve.
Two Ways to Qualify on Assets
Across the wholesale network, asset-based qualifying comes in two forms. You are qualified on one path at a time, never a blend. Pick the path first, then read the percentages for that path only.
The asset qualifier path is the simpler one. Your eligible assets, after the credit percentages below, must equal or exceed the whole loan amount. No employment or income is documented. Loans go up to $4,000,000, with leverage up to 80% on a purchase of a principal residence or second home, subject to underwriting. Final terms depend on the lender’s guidelines, the property type, and the borrower’s complete credit picture.
The asset depletion path turns assets into income. The lender takes your usable assets and divides them by 60 months. That monthly figure must carry the full housing payment and your other debts through the debt-to-income test. Loan amounts run from $125,000 to $3,500,000 through select programs.
| Factor | Asset qualifier | Asset depletion |
|---|---|---|
| Core idea | Assets cover the whole loan | Assets become monthly income |
| Income documented | None | Derived from assets |
| Second-home purchase leverage | Up to 80% | Up to 80% |
| Loan range | Up to $4,000,000 | $125,000 to $3,500,000 |
| Best fit | Large balances, simple structure | Need income to carry the payment |
If your balances are big relative to the loan, the qualifier path is usually the cleaner fit. If the loan is large against your assets, the depletion path may work where the qualifier path cannot, though it asks for more.
Which Assets Count (and How Much)
Not every dollar counts at face value. Each path applies its own percentages, and the two tables do not mix.
Asset qualifier path, share of the balance that counts:
| Asset | Counts at |
|---|---|
| Brokerage accounts | 100% |
| Certificates of deposit | 100% |
| Money market | 100% |
| Savings | 100% |
| 401(k) and IRA | 90% under age 59½; 100% at 59½ or older |
Accounts combine. Take an $800,000 loan with $330,000 in brokerage accounts, $300,000 in a 401(k) under 59½ and $200,000 in savings. The 401(k) counts at 90%, or $270,000. Total usable assets come to $800,000, so the file is reviewed on assets alone. This is illustrative, and the lender’s own calculation governs.
Asset depletion path, share of the balance that counts:
| Asset | Counts at |
|---|---|
| Cash accounts | 100% |
| Certificates of deposit | 100% |
| Securities | 80% |
| Private stock | 75% |
| Retirement accounts | 70% at any age |
| Real-estate equity | 60% |
Here is the depletion math. Say you hold $1,500,000 in securities and $300,000 in cash. Securities count at 80%, or $1,200,000. Add the $300,000 in cash and you have $1,500,000 usable. 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.
Some things do not count 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.
Crypto, precious metals, collectibles, pledged or borrowed funds, and business accounts beyond your ownership share are not published as eligible on either path. The documented route is to convert them to a seasoned cash balance in a regulated account. The lender then reviews the source of that money.
Do You Have to Sell Anything?
No. Nothing is sold or pledged. The lender counts the balance, and you keep the portfolio invested. That is the whole appeal for someone who would owe a large tax bill by liquidating. Tax treatment varies; consult a qualified professional.
The paper trail is real, though. On the qualifier path, expect 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 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.
“No income documented” never means “no documentation.” The assets are verified. Every file is fully underwritten.
Why a Lender Is Allowed to Do This
Federal ability-to-repay rules require a lender to make a reasonable, good-faith determination that you can repay. The rule text, found in 12 CFR 1026.43 on Cornell’s Legal Information Institute, looks at your income or assets, other than the value of the home securing the loan. So the rule says income or assets. The lender has to verify what it relies on with reliable third-party records.
Legal commentary on non-QM lending in this CFS Review analysis makes the same point: a non-QM lender may weigh income, assets, or both. That is why asset-based files exist. It is also why the statements matter.
Second Home vs. Investment Property
This is where many buyers get tripped up. A true second home is for your personal use. A second-home loan tests you, meaning your assets, credit and debts. Rent generally does not help you qualify.
A DSCR loan works the other way. It qualifies primarily on property-level rental income covering the payment, subject to lender guidelines. It is built for investment properties, not second homes.
So if you plan to rent the place heavily, the property likely belongs on the investment side. Personal use of more than about two weeks usually makes a house a second home, which points away from DSCR. The label also affects leverage and pricing.
On the depletion path, investment property carries tighter limits: up to 65% on a purchase or rate-and-term refinance, and 60% on a cash-out. Second homes get up to 80% on a purchase or rate-and-term refinance, and 60% on a cash-out. 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.
Credit, Minimums and Leverage
Credit still counts. The qualifier path’s published floor is a 600 score. The depletion path follows the lender’s matrix, so ask for the one that applies to your loan size. A first-time investor on the depletion path needs 700. Housing history is 0x30x12, and one 30-day late in the last twelve months is considered case by case. Multiple bankruptcies are not eligible. A housing event needs 4 years of seasoning on the depletion path.
The depletion path also sets minimum assets: the lesser of $1,000,000 or 1.25 times the loan balance, and never below $250,000 liquid when assets are your only income source. If you have documented income too, asset-derived income may supplement it up to a 45% debt-to-income ratio, and the minimum-assets rule is waived.
Cash-out proceeds never count as qualifying assets. Reserves on the qualifier path are not required at or below 75% loan-to-value. Above that, the lender sets them. The depletion path has no published reserve months. All of this is subject to underwriting, and these are ceilings and floors, not offers.
Buying in Pennsylvania
The program structure does not change by state. Pennsylvania borrowers get the same percentages, seasoning and leverage described here, and consumer lending is licensed in Pennsylvania.
What changes is the property. Poconos cabins, lake communities, ski-area condos and Laurel Highlands retreats often sit in HOAs, and that is where file surprises tend to live. Budget for taxes, insurance and association dues, which vary by county and community. A lender will count them against you on the depletion path, because the housing payment must be carried by your derived income.
Another practical point from across our wholesale network: a log home, manufactured home or barndominium can be hard to place with some lenders. Confirm the property type early, before you fall in love with the listing.
Who This Fits
- Retirees: big balances, little earned income, and a desire to keep the portfolio invested.
- Early-retired professionals: a household living on investments rather than a paycheck.
- Business sellers: sale proceeds are excused from seasoning on the depletion path, but the source is reviewed.
- Inheritance or settlement recipients: same excuse from seasoning, with a documented source.
It fits less well if your assets are mostly crypto, a closely held business account, or borrowed funds. It also fits poorly if you are self-employed with strong monthly deposits and modest savings. In that case, the bank statement program, which documents income through deposits, may be the better tool.
Alternatives Worth Weighing
A conventional loan works if you have steady, documentable income. A HELOC or cash-out on your first home taps equity but adds a payment and a lien on the primary. Paying cash avoids a lender but locks up capital. Asset-based qualifying fits when you want to keep the portfolio working and have the balances to prove it. Honestly, for a buyer with income and a big portfolio, the tradeoff is usually cost and structure. Compare the file, not the label.
Key Terms Defined
Asset qualifier: a path where eligible assets cover the entire loan and no income is documented.
Asset depletion: a path that divides usable assets by 60 months to create qualifying income.
Seasoning: the time funds must sit in an account before they count.
Debt-to-income (DTI): your monthly debts compared with your monthly income.
Haircut: the discount applied to an asset, such as 80% for securities on the depletion path.
Non-QM: a mortgage outside standard agency guidelines that is still fully underwritten.
Frequently Asked Questions
Can I buy a second home with no income?
Yes, if you have enough eligible assets and clean credit, subject to underwriting. The qualifier path documents no employment or income. It still requires statements, credit review and a property review.
Do I have to sell my investments?
No. Nothing is sold or pledged. The lender counts the balances at the percentages for the path you use, and you keep the account.
Do retirement accounts count?
Yes. On the qualifier path, a 401(k) or IRA counts at 90% under age 59½ and 100% at 59½ or older. On the depletion path, retirement accounts count at 70% at any age.
Can I rent the second home out?
Light use may be fine, but heavy renting changes the picture. Rent generally does not help a second-home file qualify, and heavy rental use points toward an investment loan instead.
What if I already have a mortgage?
Existing housing payments stay in the picture. On the depletion path, your derived income must carry the new payment and your current debts. On the qualifier path, the lender’s review rests on the assets.
About Lendmire
Lendmire — NMLS# 2371349 — is a mortgage broker that arranges bank statement, P&L-only, 1099-only and asset-based home financing in 16 states through wholesale lenders, on primary residences, second homes and investment properties. Every option is subject to the lender’s guidelines and full underwriting. Scotsman Guide named Lendmire a Top Mortgage Workplace in both 2025 and 2026.
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References
1. Cornell LII, 12 CFR 1026.43
2. CFS Review: CFPB addresses non-QMs under the ability-to-repay rule
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 Much Does a Michigan Retiree Need in Assets to Buy a Home Without Income? · How Much Does a California Retiree Need in Assets to Buy a Home Without Income? · Can You Refinance a Georgia Home on Assets When Your Income Stops?
Guides: Asset-Based Mortgage in Pennsylvania
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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Disclosures. The information presented in this article is general market commentary, not financial, legal, or tax advice. Lendmire is a mortgage brokerage (NMLS# 2371349) — not a direct lender or depository institution — and loan placement is subject to lender underwriting. Nothing in this content represents a commitment to lend. Loan terms, pricing, and program availability vary based on borrower qualifications, property characteristics, and state of subject property, and are subject to change at any time. Lendmire complies with Equal Housing Opportunity requirements. Consumer access: nmlsconsumeraccess.org.