The Quick Read: You can buy your next Michigan home before the old one sells by qualifying on assets instead of on a sale contingency: eligible balances in accounts you already hold must cover the entire loan, no employment or income is documented, and the old home is never a condition of the purchase. This is a permanent mortgage, not a short-term bridge. Programs vary, and every file is underwritten individually.
- Fit: it suits cash-heavy, income-light buyers such as retirees, business sellers, and people living on a portfolio.
- Leverage: on the asset qualifier path, up to 80% on a purchase and 75% on a refinance, for a principal residence or second home, through select programs.
- Credit and seasoning: a 600 minimum score on that path, plus 60 days of seasoning and two months of statements per account.
- The catch: your old mortgage does not vanish. Both homes still exist on paper until the sale closes.
- Rentals are different: if the new property is a rental, a DSCR loan is usually the better tool.
What an Asset Qualifier Mortgage Actually Is
An asset qualifier mortgage is a way of qualifying, not a type of property. The lender looks at your balance sheet instead of your paycheck. Nothing is sold or pledged. The assets stay in your accounts, and the only collateral is the home you buy.
Across the wholesale network Lendmire works with, two paths sit under this umbrella. They are easy to confuse, so keep them apart.
On the asset qualifier path, your eligible assets, after the credit percentages, must equal or exceed the whole loan amount. No employment or income is documented. The lender’s review rests on the assets.
On the asset depletion path, your usable assets are divided by 60 months. The result is a monthly qualifying income. That income must carry the full housing payment and your other debts through the debt-to-income test.
A borrower is reviewed on one path at a time. The paths never blend. Lendmire is a mortgage broker. It arranges these loans through select lenders in its network, and those lenders review and approve each file.
The assets are documented on both paths. “No income documentation” never means “no documentation.”
Key Terms Defined
Asset qualifier path: a way to qualify where eligible assets must cover the entire loan and no income is documented.
Asset depletion path: a way to qualify where usable assets divided by 60 months become monthly income, tested against your debts.
Debt-to-income ratio (DTI): your monthly debts, including the housing payment, divided by your monthly income.
Seasoning: the time funds must sit in an account before a lender counts them.
Haircut: the share of an asset’s balance that a lender does not count, because the asset can lose value or be hard to reach.
Sale contingency: a clause that makes your purchase depend on selling your current home. The National Association of Realtors defines home-sale and home-close contingencies in its consumer guide.
Bridge loan: short-term financing that carries you between buying one home and selling another.
Why This Is a Buy-Before-You-Sell Tool
The usual ways to bridge the gap are a sale contingency, a bridge loan, or a home equity line. Redfin’s buy-first versus sell-first guide walks through those options and the two-mortgage risk that comes with buying first.
An asset qualifier works from a different angle. It solves the qualification problem, not the cash problem. You qualify on assets you already hold, so the purchase does not need sale proceeds. Your offer can drop the sale contingency, which is the clause sellers like least.
It does not solve timing by itself. You still own two homes for a stretch.
How Underwriting Treats the Deal, Step by Step
Here is how a file like this typically moves through lenders in the network. The details differ by program, and the lender’s own calculation governs.
1. Pick the path. Assets cover the loan outright, or assets become income. Your documented income, if any, and your goals decide which fits.
2. Inventory your accounts. Underwriters want statements for brokerage, bank, and retirement accounts. Business accounts beyond your ownership share and borrowed funds are not published as eligible.
3. Apply the credit percentages. Each asset type counts for a share of its balance. The shares differ by path.
4. Set aside what the purchase consumes. Down payment and closing funds leave your accounts. Plan around the balances that remain.
5. Run the test for your path. The qualifier path asks whether usable assets cover the loan. The depletion path divides by 60 months and runs DTI.
6. Check seasoning and statements. Old statements prove the money was yours, not borrowed last week.
7. Review credit, the property, and the appraisal. These work as they would on any mortgage.
8. Verify with third-party records. The lender relies on statements, credit reports, and title documents, not on your word.
That last step is a legal requirement, not just a habit. The ability-to-repay rule, 12 CFR 1026.43 as published by Cornell Law School, lets a creditor consider income or assets other than the home itself. It also requires verifying them with reliable third-party records. The CFPB’s assessment report lists eight factors a lender weighs, including the payment on any simultaneous loan the lender knows about. That matters for you, because your old mortgage is a loan the lender knows about.
The Two Paths Side by Side
| Factor | Asset qualifier path | Asset depletion path |
|---|---|---|
| How you qualify | Assets cover the whole loan | Assets ÷ 60 months = income |
| Income documented | None | Derived from assets |
| Purchase leverage | Up to 80% | Up to 80% (home), 65% (investment) |
| Refinance leverage | Up to 75% | 60% cash-out |
| Loan range | Up to $4,000,000 | $125,000 to $3,500,000 |
| Credit | 600 minimum | Lender’s matrix |
All figures are typical ceilings and floors through select programs, subject to underwriting. They are not offers.
On the qualifier path, brokerage accounts, certificates of deposit, money market, and savings count at 100%. A 401(k) or IRA counts at 90% if you are under age 59½ and 100% at 59½ or older. Accounts combine. You need 60 days of seasoning and two months of statements for each qualifying account. Reserves are not required at or below 75% loan-to-value. Above that, the lender sets them. Because the purchase ceiling is 80%, a maximum-leverage purchase can carry a reserve requirement. These specifics are subject to lender guidelines and a full review of property, leverage, and credit.
On the depletion path, cash and certificates of deposit count at 100%. Securities count at 80%, private stock at 75%, retirement accounts at 70% at any age, and real-estate equity at 60%. Custodial accounts, deferred compensation, escrow accounts, foreign funds, cash on hand, stock options, and non-vested restricted stock units are not eligible. Statements must be at least 120 days old at application, plus one within 45 days. You need qualified assets of at least the lesser of $1,000,000 or 1.25 times the loan, and never less than $250,000 liquid when assets are your only income. A first-time investor on this path needs a 700 score.
Where the Old Home Fits
This is the question most buyers ask first, and it deserves a straight answer.
The old mortgage still exists. On the depletion path, the old home’s payment, taxes, and insurance stay in your debts. The new payment is added. Your derived income has to carry both. On the qualifier path, no income test runs. Still, the lender knows about the old loan, and the ability-to-repay review rests on your assets. How a given lender weighs the old loan can differ, so disclose it up front.
Borrowed money is not an asset. Draw on a home equity line against the old home, and that cash is borrowed funds. Pledged or borrowed funds are not published as eligible on either path. A line of credit can still help you cover closing costs. It just will not count toward the qualifying pool. Cash-out proceeds never count as qualifying assets on the depletion path.
Equity can count, but only on one path. Real-estate equity counts at 60% on the depletion path, subject to underwriting. The qualifier path does not list it.
Pending sale proceeds are not assets yet. Money from a sale you have not closed cannot be verified. After the sale, the cash lands in your account and becomes a balance like any other. Sale-of-business, inheritance, and legal-settlement funds are excused from the depletion path’s 120-day statement rule. Proceeds from a home sale are not on that list, so treat them as new money that still needs seasoning.
Occupancy decides the program. The asset-based programs here cover a principal residence or a second home. Investment property is available only on the depletion path, at lower leverage. If you are buying a rental, a DSCR loan usually fits better. DSCR loans qualify primarily on property-level rental income covering the payment, subject to lender guidelines. Lendmire’s complete DSCR loans guide explains how that works.
Keeping the old home as a rental. Whether its rent can offset its payment depends on the program’s documentation rules. Do not assume it will. Ask the lender before you write the offer.
A Worked Michigan Scenario
Say you live in the Grand Rapids area and you have found a home in Ann Arbor. You are under 59½, you left a corporate job, and your documented income is small. Your old home is listed but has not sold. You want an offer with no contingency.
You apply on the asset qualifier path for an $800,000 loan. This is an illustration. The lender’s calculation governs.
- Brokerage accounts: $330,000, counted at 100% = $330,000.
- 401(k) under 59½: $300,000, counted at 90% = $270,000.
- Savings: $200,000, counted at 100% = $200,000.
Usable assets total $800,000. That equals the loan, so the file is reviewed on assets alone, subject to underwriting. Notice how tight that is. The pool matches the loan exactly, and your down payment and closing funds also have to come from somewhere. In practice, you would want balances beyond the loan amount.
Now run the depletion path with different assets. Take $1,500,000 in securities, counted at 80% = $1,200,000. Add $300,000 in cash at 100% = $300,000. Usable assets are $1,500,000. Divided by 60 months, that is $25,000 of monthly qualifying income. That income then has to carry the new housing payment, the old home’s payment, and your other debts through the DTI test. This path can fall short for someone buying before selling, because two payments hit the ratio at once.
Both are modeled examples, not offers. Your numbers will differ.
Lendmire’s piece Do You Have to Liquidate Assets to Reserve an Asset Qualifier Mortgage? covers how reserve money is treated on files like these.
How It Compares With Other Bridges
| Option | How it works | Main risk |
|---|---|---|
| Asset qualifier path | Qualify on assets, no contingency | Large pool needed |
| Asset depletion path | Assets become income for DTI | Two payments strain DTI |
| Sale contingency | Offer depends on your sale | Weaker offer to sellers |
| Bridge loan | Short-term loan on old home equity | Repayment if no sale |
| Home equity line | Borrow against old home | Usually set up before listing |
A bridge loan and a home equity line supply cash. An asset qualifier solves the income and qualification problem. They are not interchangeable, and some buyers use one with the other.
Where the General Rule Breaks
Honest edge cases matter more than the sales pitch.
- The old home sits unsold. You carry both homes longer than planned. The asset-based loan has no balloon, so no payoff date forces a sale. The carrying cost still comes out of your pocket.
- Balances drop before closing. Markets move. If a brokerage account falls, your usable assets fall with it. On a tight pool, that can sink the file.
- You expected to use sale proceeds. Unclosed proceeds are not verified assets. Plan the purchase without them.
- You planned to count crypto, metals, or collectibles. They are not published as eligible on either path. The documented route is converting them to a seasoned cash balance in a regulated account, with the source reviewed by the lender.
- You hold retirement money under 59½. The qualifier path counts it at 90%. Tax treatment can depend on how the funds are used; keep clear records and speak with a qualified tax professional. Counting a balance is not the same as withdrawing it.
- You have recent credit trouble. The program wants a 0x30x12 housing history, and one 30-day late in the last twelve months is considered case by case. A housing event needs 4 years of seasoning on the depletion path. Multiple bankruptcies are not eligible.
Is This Right for You?
It tends to fit if you have large balances and little documented income. That includes retirees, people who sold a business, heirs, early-retired professionals, and households living on a portfolio. It also fits self-employed buyers whose traditional personal-income documentation shows low income because of write-offs, as long as the assets are real and seasoned.
It tends to fit poorly if your cash is thin and your home equity is your main asset. It also fits poorly if you are buying a rental and would be better served by a DSCR loan. And if you can easily sell first, a clean sale and a rent-back may cost you less trouble.
How Michigan Sellers See the Offer
A Michigan seller reading offers wants certainty. A contingent offer asks them to wait on your buyer, and Redfin’s guide notes that contingencies can make an offer harder to win. An offer backed by an asset-based pre-approval reads closer to a financed offer without that dependency. That is a qualitative point. Program rules do not change by state, and the figures here are the same in Michigan as anywhere the loan is available. Lendmire’s consumer lending is licensed in 16 states, Michigan among them.
What to Gather Before You Apply
- Two months of statements for every account you plan to count.
- Older statements if you are on the depletion path (120 days old, plus one within 45 days).
- Your current mortgage statement, plus the listing agreement for the old home.
- A source explanation for any large recent deposit.
- A list of other debts.
- Anything that supports credit history, such as proof of on-time housing payments.
Frequently Asked Questions
Do I have to sell my investments to use an asset qualifier mortgage?
No. The assets stay in your accounts. The lender counts them toward the loan or the depletion calculation, and nothing is pledged. Money you spend on the down payment and closing costs does leave the pool, so plan around the balances that remain after the purchase.
Does the asset qualifier path ignore my old mortgage?
Not by default. No income test runs on that path, but the lender reviews the whole file and knows about your existing loan. On the depletion path, the old payment stays in your debt-to-income calculation. Disclose it early and let the lender explain how it will be weighed.
Can I use this to buy a rental property in Michigan?
Usually the better fit is a DSCR loan, which qualifies primarily on the property’s rental income covering the payment, subject to lender guidelines. The depletion path does allow investment property, at up to 65% on a purchase, subject to underwriting. The qualifier path covers principal residences and second homes.
What credit score do I need?
The qualifier path’s published floor is 600. The depletion path follows the lender’s score and loan-amount matrix, and a first-time investor there needs 700. A score alone does not decide approval, and lenders review each file individually.
Is an asset qualifier mortgage the same as a bridge loan?
No. A bridge loan is short-term financing that depends on selling the old home. An asset qualifier is a permanent purchase mortgage that is reviewed on your assets, so there is no short repayment clock. Bridge loans and home equity lines supply cash, while this loan solves the qualification problem.
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. Programs are placed through select lenders, subject to underwriting. This is not a commitment to lend. You can reach the team at 828-256-2183.
Buying first works best when the pool is bigger than the loan, so the strongest Michigan files often start with the statements, not the house.
Lendmire’s asset-based mortgage in Michigan page presents the program for Michigan borrowers.
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. National Association of Realtors: contingencies consumer guide
2. Redfin: buy first versus sell first guide
3. Cornell Law School: 12 CFR 1026.43
4. CFPB: CFPB Ability to Repay Qualified Mortgage Assessment Report
This article is part of Lendmire’s asset-based mortgage program — full qualification details, guidelines, and scenarios live on the program page.
Related reading: Asset Qualifier vs Asset Depletion for a Tech Employee · Joint vs Individual Accounts on an Asset Depletion Mortgage · What Counts as an Asset Statement for a Mortgage?
Guides: Asset-Based Mortgage in Michigan
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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- North Carolina Insurance Producer · License# 19053198 · Property, Casualty, Life, Health · Verify on NAIC SBS
- Lendmire LLC · Firm NMLS# 2371349 · Verify firm licensure
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.