The Quick Read: Yes, in many cases: through select asset-based programs, a Virginia second-home buyer can qualify on eligible savings and investments instead of paychecks, either by showing assets that cover the entire loan or by converting assets into monthly qualifying income, all subject to full underwriting and lender guidelines. This is a personal-use mortgage, not a DSCR loan. Virginia does not change the program figures.
- Path one, the asset qualifier: eligible assets must equal or exceed the whole loan, and no employment or income is documented.
- Path two, asset depletion: usable assets divided by 60 months become qualifying income that must pass a debt-to-income test.
- You are on one path at a time. The two never blend.
- Rental income does not help. If the plan is to rent the place out, you are shopping for a different loan.
- The assets are documented with statements. You skip traditional personal-income documentation, pay stubs and employment verification. You do not skip underwriting.
Two Paths, One at a Time
An asset-based mortgage comes in two forms, and each tests something different. The asset qualifier path asks whether your usable assets cover the entire loan. The asset depletion path asks whether your assets, turned into monthly income, can carry the housing payment and your other debts. Lendmire’s asset-based mortgage program is built around both.
Here is the side-by-side for a second home, subject to underwriting and select lender programs:
| Factor | Asset qualifier path | Asset depletion path |
|---|---|---|
| What qualifies you | Usable assets cover the whole loan | Usable assets ÷ 60 months, run through DTI |
| Income documented | None | Derived income, may add documented income |
| Loan amounts | Up to $4,000,000 | $125,000 to $3,500,000 |
| Purchase leverage | Up to 80% | Up to 80% |
| Refinance leverage | Up to 75% | 80% rate-and-term, 60% cash-out |
| Credit | 600 minimum | The lender’s matrix |
Those leverage figures describe a purchase or refinance of a second home (the same figures apply to a principal residence). They are ceilings, not offers. Where cash-out proceeds are allowed on the qualifier path, and at what leverage, is set by the lender and is not published, so plan around the depletion-path figure if cash-out matters to you. Cash-out proceeds never count as qualifying assets.
DTI means debt-to-income: your monthly debts divided by your monthly income. On the qualifier path there is no income to divide, so the lender’s review rests on the assets themselves.
Which Path Fits You?
Start with one comparison: your usable assets against the loan. If eligible assets, after the credit percentages in the next section, equal or exceed the entire loan, the asset qualifier path is usually the cleaner fit. No income gets documented, and no debt-to-income test runs.
If your portfolio is large but smaller than the loan, the depletion path is the likelier route. Your balances become income, and that income must carry the whole payment plus every other debt. Across Lendmire’s wholesale network, the lenders that offer depletion want a deep pool behind it. Qualified assets must be at least the lesser of $1,000,000 or 1.25 times the loan balance, and never below $250,000 liquid when depletion is your only income source.
Depletion can also supplement documented income. Say you draw a pension or part-time consulting income. Asset-derived income can fill the gap up to a 45% debt-to-income ratio, and when it supplements income, the minimum-assets rule is waived.
Who tends to fit? Retirees, people who sold a business, recipients of an inheritance or settlement, early-retired professionals, and households living off a portfolio. Large balances, small documented income. A tax return that shows modest earnings is not a verdict on what you can carry.
What Counts as an Asset (and What Doesn’t)
Cash and near-cash count the most. Volatile or penalized assets get discounted. The share of each balance that counts depends on the path, so here are both columns, kept separate:
| Asset | Qualifier path | Depletion path |
|---|---|---|
| Brokerage accounts / securities | 100% | 80% |
| Certificates of deposit | 100% | 100% |
| Savings and money market | 100% | 100% (cash accounts) |
| 401(k) and IRA | 90% under 59½, 100% at 59½+ | 70% at any age |
| Private stock | Not listed | 75% |
| Real-estate equity | Not listed | 60% |
On the qualifier path, accounts combine. You do not need one account that covers the loan.
The depletion path also excludes several asset types outright: 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.
What about crypto, precious metals, collectibles, business accounts beyond your ownership share, and pledged or borrowed funds? None are published as eligible on either path. Plain answer: they do not count at a percentage. The documented route is converting them to a seasoned cash balance in a regulated account, with the lender reviewing the source of the money. Borrowed money is a dead end either way.
Retirement accounts deserve one more note. Qualifying with a 401(k) or IRA does not mean cashing it out. The balance counts toward the program, and the account stays where it is. Tax treatment varies; consult a qualified professional before drawing on any retirement account.
The Math, Worked Both Ways
Both examples below are illustrative. The lender’s own calculation governs, and every file is underwritten individually.
Asset qualifier path. Picture a borrower under 59½ seeking an $800,000 loan. Their assets:
- $330,000 in brokerage accounts, which counts at 100%, so $330,000.
- $300,000 in a 401(k), which counts at 90% under age 59½, so $270,000.
- $200,000 in savings, which counts at 100%, so $200,000.
Total usable assets: $800,000. That equals the loan, so the borrower is reviewed on assets alone, subject to underwriting. If the same borrower were 59½ or older, the 401(k) would count at 100%.
Asset depletion path. Now take $1,500,000 in securities, which counts at 80%, so $1,200,000. Add $300,000 in cash at 100%. Usable assets come to $1,500,000. Divide by 60 months and you get $25,000 of monthly qualifying income. That income then carries the housing payment and other debts through the debt-to-income test.
Notice the short divisor. Sixty months means each dollar of income demands a lot of assets behind it. That is why the depletion minimums exist.
The One-Pool-of-Money Problem
Here is where borrowers get surprised. The same dollars cannot do three jobs at once. Cash you wire for the down payment and closing costs leaves the account. On most files, the lender looks at what remains after the purchase consumes its share. The worked examples above are simplified for clarity.
Plan the order. Decide what funds the purchase, then check whether the leftover pool still clears the path you are using. Running that backward is the most common way a “plenty of assets” file turns thin. On the qualifier path, reserves are not required at or below 75% loan-to-value. Above that, on an 80% purchase for instance, the lender sets them. The depletion path has no published reserve months.
What Makes It a “Second Home” in the First Place?
An asset-based mortgage for a second home is a personal-use loan, and the property has to behave like one. NerdWallet’s second-home explainer describes it as a property you don’t rent out year-round and don’t use rental income to qualify for. Lenders also expect it to be suitable for year-round occupancy and under your exclusive control.
Three practical consequences follow:
- Rental income does not help you qualify. Renting year-round or leaning on rent to qualify likely makes a lender treat the home as an investment property.
- Government loans are off the table. In most cases a second home can’t be bought with FHA or VA financing, which serve primary residences.
- Occupancy is judged by use, not by label. Misstating how you will use the home is a serious problem. The cost gap between categories can tempt people to blur it, and lenders know that.
Now the disambiguation. “Virginia” here is the state. It has nothing to do with a VA loan, the veterans’ benefit. That one is a separate product with its own occupancy rules, and a second home is not what it is built for.
When the Plan Is Really a Rental Business
Suppose a manager will handle bookings, or an LLC will hold title, or the whole point is rental income. Then the property is an investment property, and the right tool changes. A DSCR loan is a business-purpose investor loan that qualifies primarily on property-level rental income covering the payment, subject to lender guidelines. It cannot sit under a second-home label.
The asset depletion path can also finance an investment property, as a business-purpose loan. Leverage is lower: up to 65% on a purchase or rate-and-term refinance, and 60% on a cash-out refinance, subject to underwriting. A first-time investor on that path needs a 700 score. If the Virginia property will be a true rental, price both routes before you decide.
If you later convert a second home into a rental, the second-home label comes off and any refinance is an investment-property loan. That is the usual order of events, and it works fine. Just do not run it in reverse.
Does Virginia Change Anything?
Not the program. The figures above are the same in every state where the program is available, and consumer lending through it is licensed in 16 states, Virginia among them. Your eligibility turns on your assets, credit, the property and the lender’s guidelines, not on a Virginia-specific rule.
The legal footing is federal. Under the ability-to-repay rule, a lender must make a reasonable, good-faith determination that you can repay, considering income or assets other than the home securing the loan. The CFPB’s own wording lets a lender rely on income, on assets, or both. The rule’s verification section calls for third-party records that reliably show the assets, which in practice means account statements. The rule does not set the haircuts or divisors. Those are program choices, which is why they differ from lender to lender.
What Virginia does change is the property itself. A beach condo, a mountain cabin and a lake house each carry different association rules, use patterns and carrying costs, and lenders review each one as a property. Budget for those line items by county and community before you fall in love with a listing.
Why Does a Big Portfolio Still Get Declined?
It happens, and the reasons are usually mundane:
- The pool is thinner than it looks. After haircuts and after the purchase takes its share, the balance no longer clears the path.
- Assets that do not count. Business funds, crypto and borrowed money sit in the headline total but not the underwriting total.
- Credit and housing history. The qualifier path has a 600 minimum, and the depletion path follows the lender’s matrix. Housing history is reviewed at 0x30x12, with one 30-day late in the last twelve months considered case by case. Multiple bankruptcies are not eligible, and a housing event needs 4 years of seasoning on the depletion path.
- Unexplained deposits. Large recent transfers between accounts or from outside sources raise questions the file has to answer.
- A mismatch on use. The property looks like a rental, and the loan is labeled a second home.
Honestly, the first one is the surprise. Borrowers count the balance. Lenders count what is left.
Documents, Seasoning, and What to Avoid
The assets are fully documented. “No tax returns, pay stubs or employment verification” is accurate. “No documentation” is not.
Qualifier path: assets need 60 days of seasoning, with two months of statements for each qualifying account.
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.
Before you apply:
1. Pull your most recent statements for every account you plan to use.
2. Hold off on moving money between accounts. Each move creates paper the lender will ask about.
3. Do not borrow against the portfolio to fund the purchase. Pledged or borrowed funds do not count.
4. Convert any crypto or collectibles to cash well ahead of time, in a regulated account, if you want them in the file.
5. Decide how you will use the home. Write it down if it helps. Your answer drives the loan type.
Key Terms Defined
Asset qualifier path: the program route where eligible assets, after credit percentages, must equal or exceed the entire loan amount, with no income documented.
Asset depletion path: the program route that divides usable assets by 60 months to create monthly qualifying income, which then goes through a debt-to-income test.
Haircut: the discount applied to an asset because its value can fall or carry withdrawal costs. An 80% haircut treatment means 80% of the balance counts.
Seasoning: how long funds must have been in your account before the lender will count them.
Debt-to-income (DTI): your monthly debts divided by your monthly income, used on the depletion path.
DSCR loan: a business-purpose investor loan that qualifies primarily on the property’s rental income, used for rentals rather than second homes.
Frequently Asked Questions
Can a retiree buy a second home on assets alone?
Yes, and retirees are a core fit. The qualifier path ignores income entirely if usable assets cover the loan. On the depletion path, assets become qualifying income and can be combined with documented income such as a pension, up to a 45% debt-to-income ratio. Either way, the file is underwritten individually and the lender’s guidelines govern.
Do 401(k) and IRA balances count, and do I have to withdraw them?
They count, and you do not withdraw anything to qualify. 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. The account stays in place, subject to underwriting.
Does cryptocurrency count?
Not directly. Crypto is not published as eligible on either path. The documented route is converting it to cash held in a regulated account, with the lender reviewing the source of funds. Plan that conversion before applying so the statements are in order.
Can I rent the home out and still use this loan?
Occasional personal use differs from a rental business, but a second-home loan is for a property you occupy, not one you operate for income. Rental income generally cannot be used to qualify. If renting is central to your plan, the property is an investment property, and a DSCR loan or the depletion path’s investment-property terms may fit better. Subject to underwriting in either case.
Is a Virginia second home the same thing as a VA loan?
No. A VA loan is a veterans’ benefit and has nothing to do with the state. A second home generally cannot be bought with a government-backed loan, so the asset-based route is a different path entirely.
Your 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 arranges these loans through select lenders in its network, so the figures here are ceilings and floors, not offers, and none is a commitment to lend. A Virginia lake house or mountain cabin will not care how your income looks on paper, but the underwriter will care how your balance sheet looks after closing.
Lendmire’s asset-based mortgage in Virginia page presents the program for Virginia borrowers.
About Lendmire
Lendmire (NMLS# 2371349) is a mortgage broker licensed for consumer lending in 16 states. Bank statement, P&L-only, 1099-only and asset-based mortgages for self-employed and high-net-worth borrowers are arranged through wholesale lenders on primary residences, second homes and investment properties; every file is underwritten by the lender under its program guidelines. Scotsman Guide named Lendmire a Top Mortgage Workplace in both 2025 and 2026.
Investors who want the broader program framework can review how DSCR loans work.
Get Started
Ready to find the right loan for you?
In about 30 seconds you can review financing options available for your home or investment property. No commitment required.
Informational only. Not a Loan Estimate, approval, or commitment to lend. Program availability and eligibility are subject to lender guidelines, credit approval, property review, and underwriting.
References
1. NerdWallet, second-home mortgage explainer
2. CFPB Regulation Z §1026.43, ability-to-repay
This article is part of Lendmire’s asset-based mortgage program — full qualification details, guidelines, and scenarios live on the program page.
Related reading: Can You Relocate to Michigan and Buy a Home on Assets Before You Have Local Income? · How to Get Pre-Approved in Michigan on Assets Instead of Income · Can You Buy a Second Home in Georgia on Assets Instead of Income?
Guides: Asset-Based Mortgage in Virginia
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.