The Quick Read: You document this loan by replacing the paystub and the employer call with account statements. The file proves ownership, balance, access, and source for every account used, and it asks for no job, no W-2, and no employment verification when the loan is reviewed on assets alone. The program figures are the same for an Indiana borrower as for anyone else, subject to underwriting.
- Assets cover the loan outright. On the asset qualifier path, eligible assets after the credit percentages must equal or exceed the entire loan amount. No employment or income is documented.
- Or assets become income. On the asset depletion path, usable assets are divided by 60 months to produce a monthly qualifying income, which then runs through the debt-to-income test.
- Statements are the proof. Two months of statements per account on the qualifier path, and statements at least 120 days old plus one within 45 days on the depletion path.
- Source and access matter as much as balance. Large deposits need a paper trail, and funds that are borrowed, pledged, or out of reach do not count.
- Pick one path. A borrower is reviewed on one path at a time, never a blend of the two.
Lendmire is a mortgage broker that places these consumer loans through select lenders in its wholesale network. Its consumer mortgage lending is licensed in 16 states, Indiana among them. Every file is underwritten individually, and nothing here is a commitment to lend.
Which Path Fits Your Situation?
Choose the qualifier path if your eligible assets add up to the whole loan amount. Choose the depletion path if your assets are large but fall short of the loan, so they must be turned into monthly income. Either way, the paper is account statements, not pay records.
The two paths work differently, so keep them separate in your head. Here is the side-by-side, with each figure tied to its path and subject to underwriting.
| Factor | Asset Qualifier Path | Asset Depletion Path |
|---|---|---|
| Core test | Assets cover the entire loan | Assets ÷ 60 months = income |
| Income documented | None | Derived income, run through DTI |
| Purchase leverage | Up to 80% LTV | Up to 80% (home) / 65% (investment) |
| Refinance leverage | Up to 75% LTV | 80% rate-and-term (home); 60% cash-out |
| Loan amounts | Up to $4,000,000 | $125,000 to $3,500,000 |
| Credit | 600 minimum | The lender’s matrix |
| Statements | Two months per account | 120-day-old plus one within 45 days |
On the qualifier path, those leverage figures apply to a principal residence or second home. On the depletion path, the 80% purchase and rate-and-term ceiling and the 60% cash-out ceiling apply to a principal residence or second home. Cash-out proceeds never count as qualifying assets. Whether the qualifier path allows cash-out at all is set by the lender, so treat it as unpublished. Each figure is subject to lender guidelines and a complete review of property type, leverage, and credit.
Across the wholesale network Lendmire works with, the qualifier path is the cleaner file when it fits. There is no income math and no debt-to-income test to pass. The depletion path exists for the borrower whose balances are big but not big enough to cover the loan outright.
Key Terms Defined
Asset qualifier: A path that drives lender review on eligible assets alone, with no employment or income documented.
Asset depletion: A path that divides usable assets by 60 months to create a monthly qualifying income.
Usable assets: The balance of each account after the program’s percentage is applied. A retirement account might count at 90% or 70% of its balance, depending on the path.
Seasoning: The time funds must sit in an account before they count. It is how a lender separates your money from a recent loan or a short-term transfer.
Debt-to-income (DTI): Your monthly debts, including the new housing payment, compared to your monthly income. It matters on the depletion path only.
Source of funds: The paper trail showing where a deposit came from.
What Counts, and at What Percentage
Only what is verifiably yours and reachable counts. Each path gives different credit to the same account, so the numbers below are labeled by path, subject to underwriting.
Asset qualifier path:
- Brokerage accounts, certificates of deposit, money market, and savings count at 100%.
- 401(k) and IRA balances count at 90% under age 59½ and 100% at 59½ or older.
- Accounts combine, so you can add them together toward the loan amount.
Asset depletion path:
- Cash accounts and certificates of deposit count at 100%.
- Securities count at 80%, and private stock at 75%.
- Retirement accounts count at 70% at any age.
- Real-estate equity counts at 60%.
- Not eligible: 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, business accounts beyond your ownership share, and pledged or borrowed funds are not published as eligible on either path. The documented route for those holdings is to convert them to a seasoned cash balance in a regulated account. The lender then reviews the source.
Two illustrations show how this works. They are illustrative only, and the lender’s own calculation governs.
Qualifier path: an $800,000 loan with $330,000 in brokerage accounts (100% = $330,000), $300,000 in a 401(k) under age 59½ (90% = $270,000), and $200,000 in savings (100% = $200,000). That counts $800,000 of usable assets and is reviewed on assets alone.
Depletion path: $1,500,000 in securities (80% = $1,200,000) plus $300,000 in cash (100% = $300,000) is $1,500,000 usable. Divided by 60 months, that is $25,000 of monthly qualifying income. That income then has to carry the housing payment and other debts through the debt-to-income test.
The depletion path also has a floor. Qualified assets must be at least the lesser of $1,000,000 or 1.25 times the loan balance. They must never be below $250,000 liquid when asset depletion is your only income source.
The Document Set When There Is No Employer
The file is built from account statements and identity papers, plus the property documents for the purchase or refinance. The paystub, W-2, and employer verification drop out because the loan does not rely on employment income. It is not an undocumented loan. The assets are documented on both paths.
Use this checklist by asset type. It describes what a lender typically expects, and the exact list depends on the program and lender.
| Asset or Situation | What to Provide | Common Pitfall |
|---|---|---|
| Checking or savings | Full statements, every page | Missing pages |
| Brokerage account | Statements showing holdings and value | Margin or pledged balances |
| 401(k) or IRA | Statements showing vested balance | Unvested or restricted funds |
| Business sale proceeds | Sale paperwork and deposit record | Funds still in a business account |
| Inheritance | Estate or distribution paperwork | Funds never landed in your account |
| Home sale proceeds | Settlement statement, deposit record | Unexplained gap before deposit |
Plan on these items in every file:
1. A government ID and a credit review. The qualifier path floor is a 600 score, and the depletion path follows the lender’s matrix. Housing history is 0x30x12, and one 30-day late in the last twelve months is considered case by case. 2. Statements for every account you want counted, in your name or your ownership share. 3. A written explanation, with proof, for any large deposit. 4. The property paperwork, such as the purchase contract or the current mortgage statement.
Statement timing differs by path. The qualifier path wants 60 days of seasoning and two months of statements for each qualifying account. The depletion path wants statements at least 120 days old at application plus the most recent statement within 45 days. On the depletion path, sale-of-business, inheritance, and legal-settlement funds are excused from that seasoning.
For a longer walk through the paper itself, Lendmire’s guide to documenting an asset qualifier mortgage goes account by account.
Five Borrower Situations and the Paper Each One Needs
The retiree
Your income may be a pension or Social Security plus a portfolio. If assets cover the loan, the qualifier path needs only statements. If you want pension income counted too, the depletion path can let asset-derived income supplement documented income up to a 45% debt-to-income ratio. When it supplements, the minimum-assets rule is waived. The pension or Social Security still has to be documented under the lender’s rules.
Retirement balances need special attention. Statements should show the vested balance.
The business owner who sold or paused the company
Your documented income may be thin, but the sale proceeds are large. Bring the sale paperwork and the statement showing the deposit into your personal regulated account. On the depletion path, sale-of-business funds are excused from the seasoning rule. On the qualifier path, the 60-day seasoning rule still applies, so let the funds settle before you apply.
Business accounts are a common stumbling block. Funds still sitting in the company’s account are usually not counted beyond your ownership share. Move them into a personal account early and document the transfer.
The borrower between jobs
You have no current employer and no steady paycheck. The qualifier path does not ask about employment at all. The depletion path counts the derived income, not a job. Either way, the file stands on the statements.
The recent divorcee or widow
Assets often arrive through a settlement or a transfer. Bring the legal paperwork that moved the funds, along with the statement showing them in your name. A legal settlement is excused from seasoning on the depletion path.
The inheritance recipient
An estate payout is a source-of-funds question first. Bring the distribution paperwork and the statement showing the deposit. Inheritance funds are excused from seasoning on the depletion path, and need to be seasoned on the qualifier path.
How to Handle Large Deposits
A large deposit that is not explained is the fastest way to stall a file. Lenders look for where the money came from, because a deposit without a trail might be a loan or a gift that must be repaid.
Follow this order:
1. Identify every deposit that looks unusual against the account’s normal pattern.
2. Pull the paper that created it: a sale record, a distribution letter, a transfer confirmation.
3. Write a short explanation that matches the paper. Keep it factual and plain.
4. Attach the paper to the explanation, and keep the full statement pages around it.
Do not move money between accounts after you have gathered statements unless you must. Every transfer creates a new line the lender has to trace. If a move is necessary, document it as you go.
Borrowed or pledged funds do not count. If you took a loan against a portfolio to raise cash, that cash is not eligible as qualifying assets.
What to Put in the Employment Field
Be truthful. If you are retired, say retired. If you are self-employed or between jobs, say that. Do not invent an employer to fill a box.
On the qualifier path, employment is simply not the test. The lender’s review rests on the assets. On the depletion path, the derived monthly income stands in for a paycheck. If you also have documented income, such as a pension, it can supplement the calculation.
A short line to your loan officer is enough: you are qualifying on assets rather than employment, and you will provide statements for each account. That sets the right expectation and keeps the file on the correct path from the start.
A Prep Sequence Before You Apply
1. List every account you own and its balance, and mark which ones you hope to count.
2. Remove anything ineligible from the plan: crypto, business accounts, borrowed funds, and the excluded categories above.
3. Download complete statements, every page, for the accounts that remain.
4. Convert anything held as crypto, metals, or collectibles into cash in a regulated account, and leave it there so it seasons.
5. Gather paper for each large deposit.
6. Stop moving money. Let the balances sit while the file is assembled.
7. Decide your path based on whether assets cover the loan or must become income.
Before you commit assets to a down payment, check how much of the pool you will have left. If you want to understand whether you must sell anything, read Lendmire’s piece Do You Have to Liquidate Assets to Reserve an Asset Qualifier Mortgage?. In short, the assets stay in the accounts, and the calculation is a qualifying convention. On the qualifier path, no reserves are required at or below 75% loan-to-value. Above that, the lender sets them. The depletion path has no published reserve months.
Why a Paycheck Is Not Required
This approach is not a loophole. The federal ability-to-repay rule, Regulation Z § 1026.43, lets a lender base its repayment decision on income, on assets other than the home securing the loan, or on both. The CFPB’s small-entity compliance guide adds that a lender verifies only the income or assets it relies on. Employment status matters only when employment income is part of the decision.
The Federal Register final rule names savings accounts and vested retirement accounts among the assets a lender may consider. That is why statements replace paystubs.
Where the Rule Breaks
Self-employed borrowers with steady deposits. If your income shows up in business deposits, the bank statement program may fit better. It is built for borrowers who document income with deposits. Asset-based qualification is for those whose balances are large and whose documented income is not.
Rental properties. The qualifier path covers principal residences and second homes only. An investment property is available only on the depletion path, at lower leverage, and a first-time investor there needs a 700 score. For a pure rental purchase, the usual tool is a DSCR loan, which is business-purpose financing. It qualifies primarily on property-level rental income covering the payment, subject to lender guidelines. Lendmire’s complete DSCR loans guide explains how that works.
Housing events. Multiple bankruptcies are not eligible. A housing event needs four years of seasoning on the depletion path.
Large loans. The qualifier path tops out at $4,000,000, and the depletion path at $3,500,000. Never assume more is available.
Mistakes That Stall Files
- Submitting statements with missing pages.
- Counting accounts that are ineligible, such as foreign funds or non-vested stock units.
- Leaving large deposits unexplained.
- Mixing personal and business money in one account.
- Counting borrowed or pledged funds as your own.
- Blending the two paths, using the qualifier percentages with the depletion divisor.
- Moving money mid-file without keeping the paper.
Frequently Asked Questions
Do I need a job to qualify?
No, not on the asset qualifier path, where no employment or income is documented. On the asset depletion path, assets are converted into qualifying income, so a job is not required either. Credit, property, and asset review still apply, and every file is underwritten individually.
Can I use my 401(k) or IRA?
Yes, with a discount. On the qualifier path, they count at 90% under age 59½ and 100% at 59½ or older. On the depletion path, they count at 70% at any age. The file needs statements that show the vested balance.
Can I add Social Security or a pension?
On the depletion path, asset-derived income can supplement documented income, up to a 45% debt-to-income ratio. The minimum-assets rule is waived when assets supplement income. The additional income still has to be documented under the lender’s rules.
Do I have to sell my investments to qualify?
No. The assets stay where they are, and the calculation is a qualifying convention. Cash you put toward the down payment or closing costs does leave the pool, so plan for it.
Can I buy a rental with this program?
Only on the depletion path, at up to 65% on a purchase or rate-and-term refinance and 60% on a cash-out, with a 700 score for a first-time investor. Many investors buying rentals find DSCR financing fits better, since it looks at the property’s rent instead of your assets.
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. Indiana borrowers use the same program structure as everyone else, with every figure subject to underwriting.
Lendmire’s asset-based mortgage in Indiana page presents the program for Indiana 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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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. CFPB Regulation Z § 1026.43
2. CFPB Ability-to-Repay and Qualified Mortgage Small Entity Compliance Guide
This article is part of Lendmire’s asset-based mortgage program — full qualification details, guidelines, and scenarios live on the program page.
Related reading: Joint vs Individual Accounts on an Asset Depletion Mortgage · What Counts as an Asset Statement for a Mortgage? · Asset Qualifier vs Asset Depletion for a Tech Employee
Guides: Asset-Based Mortgage in Indiana
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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- Lendmire LLC · Firm NMLS# 2371349 · Verify firm licensure
Legal disclosures. Lendmire (NMLS# 2371349) is a state-licensed mortgage brokerage that arranges financing through wholesale lender relationships. Lendmire is not a direct lender, depository institution, or registered financial advisor. The discussion above is general informational content about real estate financing — it is not financial, legal, or tax advice, and readers should consult licensed professionals for guidance on their individual circumstances. Loan inquiries are subject to lender underwriting; this article does not represent a commitment to lend. Loan terms, rates, and qualification standards vary by borrower, property, and state, and are subject to change at any time. Equal Housing Opportunity. NMLS Consumer Access: nmlsconsumeraccess.org.