The Quick Read: You finance a Pennsylvania vacation home this way by letting your eligible assets, not your paycheck, carry the loan. On the asset qualifier path, your usable balances must equal or exceed the entire loan amount, and no employment or income is documented. On the asset depletion path, usable assets are divided by 60 months to create a qualifying income. Every figure below is a ceiling or floor through select programs, subject to underwriting.
- Asset qualifier path: up to 80% loan-to-value on a purchase and 75% on a refinance, for a second home, with loans up to $4,000,000.
- Asset depletion path: up to 80% on a purchase of a second home, with loans from $125,000 to $3,500,000.
- Credit: a 600 minimum score on the qualifier path. The depletion path follows the lender’s matrix.
- Your assets stay put. Nothing is sold, and the property, not the account, is the collateral.
- Income-light does not mean paper-light. Your statements are verified, and you document the assets instead of the income.
Is This Loan Built for You?
This loan fits a cash-heavy, income-light buyer. Think of a retiree living on a portfolio, someone who just sold a business, or a household that received an inheritance or settlement. Balances are large. Documented income is small. A traditional lender looks at the tax return and sees almost nothing.
Picture a recently retired couple with brokerage accounts, a rollover IRA and a savings cushion. They want a cabin in the Poconos, within a drive of New York City and Philadelphia, a market The Short Term Shop describes as drive-to. Their wages stopped last year. Their wealth did not.
Across our wholesale network, this is the borrower these programs were built for. Lendmire is a mortgage broker. It arranges these consumer loans through select lenders, and the lender reviews and approves the file. Lendmire’s consumer lending is licensed in 16 states, Pennsylvania among them. The program figures do not change by state.
What Is an Asset Qualifier Mortgage?
An asset qualifier mortgage is a qualification method, not a separate kind of property loan. The lender looks at your verified liquid assets instead of W-2s and traditional personal-income documentation. Lendmire’s page on what an asset depletion loan is makes the same point.
You will hear four names for roughly the same idea: asset qualifier, asset depletion, asset utilization and asset-based mortgage. They are not identical in every file. We use two distinct terms here.
- Asset qualifier path: your eligible assets, after the credit percentages, must cover the entire loan. No income is documented.
- Asset depletion path: your eligible assets, after haircuts, become a monthly income that runs through a debt-to-income test.
A borrower is reviewed on one path at a time. Never blend the two tables.
Key Terms Defined
Haircut: the share of an account’s balance a lender refuses to count, because the asset can lose value or carries penalties.
Divisor: the number of months you divide usable assets by. On the depletion path it is 60.
Imputed income: the monthly income a lender assigns to your assets for qualifying purposes.
Seasoning: how long funds have sat in your account before the lender counts them.
Reserves: funds left over after closing, which a lender may require as a cushion.
Occupancy: how you will use the home. It is classified as primary residence, second home or investment property.
Debt-to-income (DTI): your monthly debts divided by your monthly income.
How Underwriting Treats It, Step by Step
Underwriting follows an order. Here is how a typical file moves.
1. Classify the use. Decide whether this is a true second home or a rental business. That choice sets the program, the leverage and the occupancy rules.
2. Inventory your assets. List every account that might count. Cash, certificates of deposit, brokerage and retirement accounts are the main candidates.
3. Apply the credit percentages. Each asset type counts at a share of its balance. The tables below show them.
4. Subtract what the deal consumes. Your down payment, closing costs and any required reserves come out of the pool first. The same dollar cannot do two jobs.
5. Test the result. On the qualifier path, usable assets must equal or exceed the whole loan. On the depletion path, divide by 60 and run the income through the DTI test.
6. Document it. Statements are verified because the lender’s ability-to-repay review depends on the assets it uses to qualify you. The CFPB’s ability-to-repay compliance guide says lenders must consider and verify the income or assets they use, without setting a fixed DTI threshold.
7. Appraise the property. The appraisal values the house. The lender’s own calculation governs the final numbers.
Your assets stay in your accounts. Nothing is sold for qualification. Down payment and closing funds must still be available.
What Counts, and at What Percentage
The percentages differ by path. This is where most borrowers get tripped up, so here are both tables, kept separate.
Asset qualifier path (share of balance that counts):
| Asset | Counts at |
|---|---|
| Brokerage accounts | 100% |
| Certificates of deposit | 100% |
| Money market | 100% |
| Savings | 100% |
| 401(k) and IRA, under 59½ | 90% |
| 401(k) and IRA, 59½ or older | 100% |
Accounts combine. The seasoning requirement is 60 days, with two months of statements for each qualifying account.
Asset depletion path (share of balance that counts):
| Asset | Counts at |
|---|---|
| Cash accounts | 100% |
| Certificates of deposit | 100% |
| Securities | 80% |
| Private stock | 75% |
| Retirement accounts, any age | 70% |
| Real-estate equity | 60% |
Not eligible 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. Statements must be at least 120 days old at application, plus one recent statement within 45 days. Sale-of-business, inheritance and legal-settlement funds are excused from that seasoning.
Cryptocurrency, 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 converting them to a seasoned cash balance in a regulated account, with the source reviewed by the lender.
Two Worked Examples
These are illustrative only, subject to underwriting. The lender’s own calculation governs.
Qualifier path. Take an $800,000 loan. You hold $330,000 in brokerage accounts, which counts at 100%, or $330,000. You hold $300,000 in a 401(k) under age 59½, which counts at 90%, or $270,000. You hold $200,000 in savings, which counts at 100%, or $200,000. Together that is $800,000 of usable assets. The loan is reviewed on assets alone.
Depletion path. You hold $1,500,000 in securities, which counts at 80%, or $1,200,000. You also hold $300,000 in cash, which counts at 100%. Usable assets are $1,500,000. Divide by 60 months and you get $25,000 of monthly qualifying income. That income then carries the housing payment and your other debts through the DTI test.
Notice what the qualifier example does not need: a payroll stub or a tax return. Notice what it does need: statements, seasoning and a clean credit file.
Structures and Leverage You Can Actually Use
Leverage depends on path, transaction and occupancy.
- Qualifier path: up to 80% loan-to-value on a purchase and 75% on a refinance, for a principal residence or second home. Cash-out terms on this path are set by the lender and not published.
- Depletion path, second home: up to 80% on a purchase or rate-and-term refinance and 60% on a cash-out refinance.
- Depletion path, investment property: up to 65% on a purchase or rate-and-term refinance and 60% on a cash-out.
Cash-out proceeds never count as qualifying assets. Loan sizes run to $4,000,000 on the qualifier path and $125,000 to $3,500,000 on the depletion path.
Reserves differ, too. The qualifier path requires none at or below 75% loan-to-value. Above that, the lender sets them. The depletion path has no published reserve months.
The depletion path has minimums. Qualified assets must be at least the lesser of $1,000,000 or 1.25 times the loan balance. If asset depletion is your only income source, you need at least $250,000 liquid. Asset-derived income can also supplement documented income, up to a 45% DTI, and then the minimum-assets rule is waived.
Credit: Still Part of the File
Credit matters here. The qualifier path publishes a 600 minimum score. The depletion path follows the lender’s score and loan-amount matrix. A first-time investor on the depletion 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. On the depletion path, a housing event needs four years of seasoning. Expect underwriting to review the whole file.
Where the General Rule Breaks
These are the edge cases that change outcomes.
Second home or rental? Lenders classify occupancy as primary, second home or investment, and your intended use drives the label. A second-home loan is for a house you actually use. Occasional rental is generally fine. A property you will rent year-round is an investment. Mislabeling occupancy is a fraud risk, and you sign an occupancy certification at closing. If this is truly a rental business, the depletion path allows investment property at lower leverage, or a rent-based loan may fit better.
The IRS test is not the lender’s test. The IRS treats a dwelling as a home if personal use exceeds the greater of 14 days or 10% of the days rented, per IRS Publication 527. That is a tax test. Your lender applies its own occupancy rules.
Double counting. A dollar that drives lender review cannot also satisfy reserves or fund the down payment. Large down payments shrink your usable pool, and on the depletion path that cuts your qualifying income.
Appraisal gaps. Local brokers in the Pocono market report that bank appraisals lean on closed comparable sales, while short-term-rental buyers price on income potential, per Pocono Vacation Home Sales. A shortfall means more cash at closing and fewer assets left to qualify with.
Rental rules and taxes. 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. That affects cash flow, not qualification.
Asset Qualifier or Something Else?
The right program depends on how you will use the house.
| Situation | Better fit |
|---|---|
| Personal use, big balances, little income | Asset qualifier or depletion |
| Proven short-term rental income | Business-purpose rental loan (DSCR) |
| Income shown through bank deposits | Bank statement program |
| Strong documented income | Conventional second-home loan |
A DSCR loan is reviewed primarily on property-level rental income covering the payment, subject to lender guidelines. It suits a proven rental. An asset program suits a house that will mostly be yours. Lendmire’s complete DSCR loans guide explains the rental side.
The stronger play for many cash-rich buyers is the qualifier path, which needs no income at all. Honestly, though, a buyer with a large portfolio and a modest loan should compare both paths, because the depletion path’s 80% purchase leverage matches the qualifier path’s, while its rules differ.
What Should You Do Next?
Start with a clean inventory.
- Gather statements for every account you plan to use.
- Note account types, balances and ownership.
- Decide honestly how you will use the property.
- Keep funds for the down payment and closing separate from the pool you plan to qualify with.
- If funds sit in crypto or metals, ask early how to convert them into a seasoned cash balance.
If you wonder whether you must sell holdings to meet reserves, read Lendmire’s piece Do You Have to Liquidate Assets to Reserve an Asset Qualifier Mortgage?.
This is a consumer mortgage, so standard consumer disclosures apply. Tax treatment varies; consult a qualified professional.
Frequently Asked Questions
Do I have to sell my investments to qualify?
No. Eligible investments stay in your accounts. You still need cash available for the down payment and closing costs, and funds used to qualify generally cannot also serve as reserves.
Can retirement accounts count?
Yes, at a discount. 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.
Does debt-to-income apply?
It depends on the path. The qualifier path documents no income, so there is no income-based DTI test. On the depletion path, your derived income runs through the program’s DTI test.
Can rental income help me qualify?
Not on a true second home. These programs review your file on assets. If you plan to rent the house as a business, a rent-based DSCR loan is the better-matched tool.
Is credit still part of the review?
Yes. The qualifier path publishes a 600 minimum score, and the depletion path follows the lender’s matrix. Housing history and bankruptcy history are reviewed, and approval is never assured.
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’s asset-based mortgage in Pennsylvania page presents the program for Pennsylvania 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
2. CFPB ATR/QM 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: Asset Qualifier vs Asset Depletion for a FIRE Household · Is an Asset Qualifier Mortgage Harder to Get Than an Asset Depletion Loan? · Asset Qualifier vs Asset Depletion for an Heir
Guides: Asset-Based Mortgage in Pennsylvania
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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Disclosure information. Lendmire is a state-licensed mortgage brokerage under NMLS# 2371349. Lendmire is not a depository institution, direct lender, or financial advisor — all loans referenced are placed through wholesale lender partners and are subject to each lender's underwriting standards. This article is provided for general informational purposes and is not a commitment to lend, nor does it constitute financial, legal, or tax advice. Loan programs, terms, rates, and qualification standards change without notice and depend on borrower profile, property type, and the state in which the subject property is located. Equal Housing Opportunity provider. NMLS Consumer Access: nmlsconsumeraccess.org.