The Quick Read: You document an asset-based mortgage without an employer by proving the money instead of the paycheck. That means complete statements for every account that counts, clear ownership, a paper trail for any large deposit, and a lender review of what is left after your down payment and closing costs. Figures below apply to select programs in Lendmire’s wholesale network and are subject to underwriting.
- Lendmire arranges two asset paths, and you qualify on only one at a time: assets that cover the whole loan, or assets converted into monthly income.
- Both paths document your assets in full. Only the employment and paycheck paperwork goes away.
- The qualifier path typically wants two months of statements per account and 60 days of seasoning.
- The depletion path typically wants statements at least 120 days old plus one dated within 45 days.
- Retirement accounts count, but at a discount that depends on the path and, on one path, your age.
Which Path Fits a Borrower With No Employer?
The qualifier path fits you if your liquid assets can cover the entire loan amount. The depletion path fits you if your assets are large but you want them converted into qualifying income. Pick based on the size of your balances relative to the loan.
On the asset qualifier path, eligible assets, after the credit percentages in the next section, must equal or exceed the whole loan. No employment or income is documented. Leverage runs up to 80% on a purchase and 75% on a refinance of a principal residence or second home. Loan amounts go up to $4,000,000, and the credit floor is 600, subject to underwriting.
On the asset depletion path, usable assets are divided by 60 months to produce a monthly qualifying income. That income must carry the housing payment and your other debts through a debt-to-income test. The depletion path is where leverage and loan size are more conservative. Loan amounts run from $125,000 to $3,500,000. A principal residence or second home goes up to 80% on a purchase or rate-and-term refinance and 60% on a cash-out refinance. Cash-out proceeds never count as qualifying assets.
The reader who does best here is cash-heavy and income-light. Think of a retiree, someone who sold a business, an heir, or a household living off a portfolio. Balances are large, and documented income is thin or absent.
What Counts, and How Much of It?
Each path discounts assets differently, so never mix the two tables. The percentage is the share of the balance the lender counts, and it is typical of select programs, not an offer.
Asset qualifier path
| Asset | Share counted |
|---|---|
| Brokerage accounts | 100% |
| Certificates of deposit | 100% |
| Money market and savings | 100% |
| 401(k) or IRA, under 59½ | 90% |
| 401(k) or IRA, 59½ or older | 100% |
Accounts combine, so several balances can add up to the loan amount.
Asset depletion path
| Asset | Share counted |
|---|---|
| Cash accounts and CDs | 100% |
| Securities | 80% |
| Private stock | 75% |
| Retirement accounts (any age) | 70% |
| Real-estate equity | 60% |
Several 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.
Cryptocurrency, precious metals, collectibles, pledged or borrowed funds, and business-account balances beyond your ownership share are not published as eligible on either path. The documented route is to convert them into a seasoned cash balance in a regulated account, then let the lender review where that money came from. They never count at a percentage on their own.
The IRS treats most withdrawals before age 59½ as early distributions, which is one reason the age line shows up in lender percentages. Tax treatment varies; consult a qualified professional before drawing on retirement balances.
The Document Packet, Piece by Piece
Every document in the packet proves one of four things: you own the money, it is worth what you say, you can reach it, and it did not come from a loan. Lendmire’s asset qualifier document checklist covers the full list. The table below shows what each piece does and where files usually stumble.
| Document | What it proves | Common pitfall |
|---|---|---|
| Government ID | Who owns the accounts | Name differs from statements |
| Full account statements | Balance and ownership | Missing pages |
| Retirement statements | Balance and access status | No distribution details |
| Gift or deposit letters | Source of large deposits | Vague or unsigned |
| Purchase contract | Loan size and funds needed | Not matching the loan request |
| Sale or settlement records | Source of lump-sum funds | Not showing the deposit |
Send every page of every statement, including pages that look blank. Account names should match your ID. Statements should be legible and current for the path you chose. A file with a missing page usually loses time, even when the balance is obvious.
Seasoning works differently by path. On the qualifier path, funds need 60 days of seasoning, and you provide 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. Sale-of-business, inheritance, and legal-settlement funds are excused from that depletion seasoning, though the lender still reviews the source.
What Goes in the Employment Section?
Answer truthfully. If you are retired, say retired. If you are self-employed with no draw, or between positions, state that. Do not invent an employer, and do not leave the section blank without telling your loan officer.
The federal ability-to-repay rule lets a lender base its decision on income from employment, on assets, or on both. The Cornell Legal Information Institute’s copy of 12 CFR 1026.43 also requires the lender to verify whatever it relies on using third-party records. That is why your statements matter more than your job history. On the qualifier path, the lender’s review rests on the assets. On the depletion path, the assets become your income.
A broker who handles asset files regularly can tell you how a given lender wants the section completed. Ask before you submit, because small inconsistencies between the application and the statements are what draw questions.
How to Document Large Deposits by Borrower Type
Large deposits often draw documentation questions in asset files. Lenders want to see where the money came from, and the proof depends on the situation.
| Source of funds | Typical proof |
|---|---|
| Sale of a business | Sale agreement and the deposit record |
| Sale of a home | Settlement statement and the deposit record |
| Inheritance | Estate or trust paperwork and the deposit |
| Legal settlement | Settlement agreement and the deposit |
| Retirement rollover | Both account statements showing the transfer |
A short letter of explanation should say what the money is, where it came from, and which account received it. Keep it factual and attach the supporting record.
A few practical points for different borrower types:
- Retirees should send full retirement statements that show balances and distribution status. The lender needs to see that the money is reachable.
- Business sellers should keep the sale agreement and the wire record together. Those funds are excused from depletion seasoning, but not from review.
- Heirs and settlement recipients should document the legal source before they move money between accounts. Moving funds around adds paperwork.
- Early-retired professionals should expect the lender to look at the whole portfolio, not just the largest account.
Seasoning, Reserves, and Leverage at a Glance
Seasoning is the waiting period during which funds must sit in your account before they count. Reserves are cash the lender wants left over after closing. The two paths treat reserves differently.
On the qualifier path, no reserves are required at or below 75% loan-to-value. Above that, the lender sets them. On the depletion path, no reserve months are published.
The depletion path adds minimum asset tests. Qualified assets must be at least the lesser of $1,000,000 or 1.25 times the loan balance. When asset depletion is your only income source, you also need at least $250,000 in liquid assets. Asset-derived income may supplement documented income up to a 45% debt-to-income ratio, and in that case the minimum-assets rule is waived.
Credit still matters. The qualifier path has a 600 minimum score. The depletion path follows the lender’s matrix, and a first-time investor on that path needs 700. Housing history is typically 0x30x12, though 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.
A Worked Example
Run the numbers on an $800,000 loan on the qualifier path. Suppose you hold $330,000 in brokerage accounts, which count at 100%, or $330,000. You also hold $300,000 in a 401(k) and are under 59½, so it counts at 90%, or $270,000. Add $200,000 in savings at 100%. The total is $800,000 of usable assets, which matches the loan, so you qualify on assets alone, subject to underwriting.
Now run the depletion path. Say you hold $1,500,000 in securities, which count at 80%, or $1,200,000. Add $300,000 in cash at 100%. Usable assets come to $1,500,000. Divided by 60 months, that produces $25,000 of monthly qualifying income. That income then carries the housing payment and your other debts through the debt-to-income test.
These examples are illustrative. The lender’s own calculation governs.
Where the Rule Breaks
Rental purchases. Asset depletion is a consumer-purpose product. On the depletion path, an investment property carries a 65% purchase cap and a 60% cash-out cap, and a primary residence gets more room. If you are buying a rental, you may be better served by a DSCR loan. 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. A DSCR file qualifies primarily on property-level rental income covering the payment, subject to lender guidelines. Lendmire’s complete DSCR loans guide explains how that works.
Assets that do not fit. Retirement accounts you cannot access, or crypto you cannot convert, may not help. The fix is converting to seasoned cash, not hoping the lender counts it.
Entity ownership. Asset-based consumer loans are typically written to individuals. If you plan to hold the property in an LLC, a DSCR loan is the more natural fit, subject to program terms.
Weak credit. Assets do not erase a credit problem. A 600 floor on the qualifier path and the lender’s matrix on the depletion path both apply.
What Changes for a North Carolina Borrower?
The program figures do not change by state. What changes is who can arrange the loan. Lendmire’s consumer mortgage lending is licensed in North Carolina, one of 16 states where it operates on that side. Taxes, insurance, and local prices are context for your budget, not program parameters. This is a consumer mortgage, so standard consumer disclosures apply, which differs from a DSCR business-purpose loan.
Key Terms Defined
Asset qualifier path: the route where eligible assets, after credit percentages, must cover the whole loan amount, with no employment or income documented.
Asset depletion path: the route where usable assets are divided by 60 months into a monthly qualifying income.
Seasoning: the length of time funds must sit in an account before they count.
Source of funds: the documented origin of a large deposit, such as a sale, inheritance, or settlement.
Reserves: cash or liquid assets left over after closing, which some programs require above certain leverage levels.
Frequently Asked Questions
Do I have to sell my investments to qualify?
No. Your portfolio stays invested. On the depletion path, the depletion is only arithmetic that turns balances into a qualifying income number. On the qualifier path, the lender simply confirms the assets exist and are seasoned.
Is this a no-documentation loan?
No. You skip employment and paycheck paperwork, but your assets are documented in full on both paths. Expect complete statements, ownership proof, and a source for any large deposit.
Can I use a 401(k) or IRA?
Yes, at a discount. 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. Distribution status and balance should appear on the statements.
Can I use this for a rental property?
Only on the depletion path, at lower leverage than a primary residence. Most investors buying rentals are better served by a DSCR loan, where the property’s rent drives lender review.
What if my money is in crypto or a business account?
Neither is published as eligible on either path. The documented route is to move the funds into a seasoned cash balance in a regulated account and let the program review the source.
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. Reach the team at 828-256-2183 or request a quote through Lendmire’s quote page.
For current guidelines and terms, see Lendmire’s asset-based mortgage programs page.
Lendmire’s asset-based mortgage in North Carolina page presents the program for North Carolina borrowers.
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. IRS Topic 557 — Additional tax on early distributions
2. Cornell Legal Information Institute — 12 CFR 1026.43
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 to Document an Indiana Asset Qualifier Mortgage Without an Employer · How to Document a Pennsylvania Asset Qualifier Mortgage Without an Employer · How to Document a New Mexico Asset Qualifier Mortgage Without an Employer
Guides: Asset-Based Mortgage in North Carolina
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
Important disclosures. Lendmire (NMLS# 2371349) is a licensed mortgage brokerage. Lendmire is not a direct lender, depository institution, or financial advisor. All loan inquiries are subject to lender underwriting; this article does not constitute a commitment to lend. Rates, terms, and program guidelines are subject to change without notice and vary by borrower profile, property type, and state. Information in this article is general in nature and is not financial, legal, or tax advice. Equal Housing Opportunity. NMLS Consumer Access: nmlsconsumeraccess.org.