The Quick Read: Usually no, because an asset-based mortgage qualifies the borrower on verified balances in bank, brokerage and retirement accounts rather than on a tax-return income figure, and the lender asks for account statements, credit and a property review in their place. The one caveat is that a lender may still request returns on a particular file, especially when documented income is layered on top of assets. The “asset-based” label also covers two different paths, and the paperwork differs on each.
- Asset qualifier path: eligible assets must cover the entire loan, and no employment or income is documented.
- Asset depletion path: usable assets are divided by 60 months to produce a qualifying income, which then runs through the debt-to-income test.
- What you still provide: statements for every qualifying account, a credit review, and an appraisal. Fewer income documents does not mean fewer documents overall.
- Rental property: a pure investment purchase usually belongs in a DSCR loan, which qualifies primarily on the property’s rental income covering the payment, subject to lender guidelines.
What does “asset-based” actually mean?
An asset-based mortgage is a home loan where your balances, not your paycheck, carry the application. Across the wholesale network Lendmire places files with, the label covers two separate paths. A borrower is qualified on one path at a time, and the two should never be blended.
The asset qualifier path is the simpler of the two. Eligible assets, after the credit percentages below, must equal or exceed the whole loan amount. The lender documents the assets, not employment or income. Its ability-to-repay review rests on those balances.
The asset depletion path turns assets into income. Usable assets are divided by 60 months, and the result is a monthly qualifying income. That income must carry the housing payment and your other debts through the program’s debt-to-income test.
Both are consumer mortgages through select programs, subject to underwriting. Lendmire is a broker that arranges them through lenders in its network. Its consumer mortgage lending is licensed in 16 states, Florida among them.
Do you need tax returns for either path?
On most files, no. The qualifier path documents no income at all, so there is no income figure for a return to support. The depletion path derives income from assets, so statements do the work that returns would do for a salaried borrower.
Here is what that looks like in practice.
| Document | Typically required? | Why |
|---|---|---|
| Federal tax returns | Usually not | Income comes from assets or is not documented |
| W-2s and pay stubs | Usually not | No employment income is relied on |
| Account statements | Yes | They are the core evidence |
| Credit review | Yes | Score and housing history count |
| Appraisal | Yes | The property secures the loan |
| Source of any large deposit | Often | The lender reviews where funds came from |
The phrase “no income documentation” never turns into “no documentation.” Assets are documented on both paths, and the file is underwritten individually.
Why can a lender skip returns?
A lender has to reach a reasonable, reliable conclusion that you can repay. Income is one way to get there. Verified assets are another. The federal rule on verification calls for reasonably reliable third-party records, and the regulation text on ability-to-repay verification covers both income and assets. Traditional personal-income documentation and IRS transcripts appear only as examples of acceptable records in the published CFR section, not as a requirement.
A retiree with a seven-figure portfolio and a modest taxable income is the classic case. Her returns understate her wealth. Her statements show it directly. The same logic fits a business seller whose proceeds sit in a brokerage account, or a household living on investments.
How do assets become qualifying income?
The qualifier path asks one question: do your usable assets cover the loan? Each account counts at a percentage of its balance. The depletion path asks a different one: after haircuts, how much monthly income do your assets produce?
Here is a qualifier-path illustration. A borrower seeks an $800,000 loan and holds $330,000 in brokerage accounts, which count at 100%, so $330,000 counts. She also holds $300,000 in a 401(k) while under age 59½, which counts at 90%, so $270,000 counts. Finally she holds $200,000 in savings, which counts at 100%. That totals $800,000 of usable assets, so the file can qualify on assets alone, subject to underwriting. The lender’s own calculation governs.
Here is a depletion-path illustration. A borrower holds $1,500,000 in securities, which count at 80%, so $1,200,000 counts. He also holds $300,000 in cash, which counts at 100%. That is $1,500,000 of usable assets. Dividing by 60 months gives $25,000 of monthly qualifying income. That income then has to carry the housing payment and other debts through the debt-to-income test.
These shapes are illustrative, not offers. The figures that matter are the lender’s own, applied file by file.
Which assets count, and at what percentage?
The percentage depends on the path, so keep the two tables separate.
| Asset | Qualifier path | Depletion path |
|---|---|---|
| Brokerage / securities | 100% | 80% |
| Cash, savings, money market | 100% | 100% (cash accounts) |
| Certificates of deposit | 100% | 100% |
| Retirement accounts | 90% under 59½, 100% at 59½ or older | 70% at any age |
| Private stock | Not published | 75% |
| Real-estate equity | Not published | 60% |
On the depletion path, several categories are 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. Cash-out proceeds from the new loan never count as qualifying assets.
What about cryptocurrency, precious metals, collectibles, pledged or borrowed funds, and business accounts beyond your ownership share? Neither path publishes them as eligible. The documented route is converting them to a seasoned cash balance in a regulated account, with the lender reviewing the source. Never assume they count at any percentage.
Also remember that the home you are buying cannot support its own loan. Value in the dwelling that secures the loan is excluded, which is why real-estate equity on the depletion path means other property you own.
What are the leverage, loan size and credit rules?
Leverage differs by path and occupancy, so every figure below names its transaction.
On the qualifier path, loans go up to $4,000,000 for a principal residence or second home. Leverage reaches 80% loan-to-value on a purchase and 75% on a refinance. No reserves are required at or below 75% loan-to-value, and above that the lender sets them. The published credit floor is a 600 score. Whether cash-out proceeds are allowed on this path is set by the lender, and no figure is published here.
On the depletion path, loans run from $125,000 to $3,500,000. A principal residence or second home can reach 80% on a purchase or rate-and-term refinance, and 60% on a cash-out refinance. Credit follows the lender’s score and loan-amount matrix, and a first-time investor needs a 700 score. No reserve months are published on this path.
The depletion path also has asset minimums. Qualified assets must be at least the lesser of $1,000,000 or 1.25 times the loan balance. When assets are the only income source, liquid assets must never fall below $250,000. These are ceilings and floors, not offers, and all are subject to underwriting.
On both paths, housing history is 0x30x12. One 30-day late in the last twelve months is considered case by case. Multiple bankruptcies are not eligible, and a housing event on the depletion path needs 4 years of seasoning.
How old do the statements need to be?
Seasoning is where well-meaning borrowers get tripped up. On the qualifier path, funds need 60 days of seasoning, with 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 seasoning.
A large deposit that appeared last month will draw questions. Move money before you apply, not during, and keep a paper trail for anything unusual.
When can tax returns still come up?
Not required by law is not the same as never requested. Three situations deserve a plain look.
You layer documented income on top of assets. On the depletion path, asset-derived income may supplement documented income, up to a 45% debt-to-income ratio. When it does, the minimum-assets rule is waived. But the income you document still has to be verified in the way that income type requires, and for self-employment that can bring returns back into the file. For how far back self-employed borrowers typically need to show them, see Lendmire’s piece How Many Years of Tax Returns Does a Self-Employed Mortgage Need?.
A lender applies its own overlay. Programs in a wholesale network are not identical. Some lenders add conditions on certain property types or borrower profiles. Others ask for a signed transcript form as routine identity or fraud screening. The strictest overlays tend to appear at higher loan amounts.
The property is not a pure investment. A rental is treated as business purpose when you will not live in it. The federal exemption for non-owner-occupied rental property ties that treatment to occupancy, and an owner who expects to use the home more than 14 days in the coming year falls outside it. In that case the loan is consumer purpose and the asset-based products described above are where it belongs. The lender, not the borrower, decides how a loan is classified.
Because asset-based loans are consumer mortgages, TRID disclosures apply to them. DSCR loans are business-purpose and exempt from TRID.
Florida, specifically
The program figures above do not change by state, and Florida is among the 16 states where Lendmire’s consumer lending is licensed. What changes is the kind of borrower who shows up. Florida draws retirees, second-home buyers and people who have just sold a business, and these are cash-heavy, income-light profiles that fit an asset-based file.
A few practical questions are worth settling before you apply:
- Condo or townhome? Lenders review the association’s finances and rules, and that review applies whatever your income documents look like.
- Primary, second home or rental? The answer sets your path, your leverage, and whether the investment-property figures apply.
- Are the assets in your name? Accounts held in a trust, or shared with a spouse, are reviewed for ownership and your share.
- Are some funds offshore or in digital assets? Foreign funds are not eligible on the depletion path, and digital assets must first become seasoned cash in a regulated account.
Asset-based, bank statement or DSCR?
Several programs skip traditional personal-income documentation, but they answer different questions. Choose by what you actually have.
| Program | Reviewed on | Fits the borrower with |
|---|---|---|
| Asset qualifier | Assets covering the whole loan | Large balances, little documented income |
| Asset depletion | Assets converted to income | Assets that should become monthly income |
| Bank statement | Income documented through deposits | Steady cash flow and low-looking returns |
| DSCR | Property rental income vs. payment | A rental purchase held for income |
If your business still produces monthly cash flow, the bank statement program is often the more natural fit, because it measures current income. If you have wealth but no current income, the asset paths fit. If you are buying a rental, DSCR fits.
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. They qualify primarily on property-level rental income covering the payment, subject to lender guidelines. The lender still reviews credit, reserves, the appraisal and any entity documents.
An asset-heavy investor has a real choice here. Depletion-path leverage on an investment property tops out at 65% on a purchase, and it uses up the asset base to produce income. A DSCR loan sizes against the rent instead, so the same investor can keep her portfolio invested. The trade-off runs the other way for someone whose rent will not cover the payment. Asset-based financing can carry that file where DSCR cannot. The complete DSCR loans guide walks through how that coverage test works.
Who should skip it?
An asset-based mortgage rewards a particular profile and punishes others. Run this checklist honestly.
- You hold usable assets that are large relative to the loan, after the haircuts for your path.
- Your documented income does not reflect your real wealth.
- You can season funds and leave them in place.
- You are comfortable with the program’s tradeoffs, including different pricing and underwriting than a conventional loan.
Skip it, or look at other programs, if your wealth sits mostly in assets that do not count, such as crypto, a private business, or stock options. Skip it too if a falling market could shrink the balances mid-process, or if you actually have strong documented income. A borrower in that last position may find another program cheaper to carry. A founder with a large stock position after an exit has a related set of questions, covered in Lendmire’s article Can Tech Founders Get a Mortgage After an Exit Without Tax Returns?.
Key Terms Defined
Asset qualifier path: the route where eligible assets, after credit percentages, equal or exceed the entire loan and no income is documented.
Asset depletion path: the route where usable assets divided by 60 months become a qualifying income for the debt-to-income test.
Haircut: the share of an asset’s balance a lender will not count, such as the 20% cut on securities on the depletion path.
Seasoning: the length of time funds must sit in an account before they count toward qualification.
Debt-to-income ratio: your monthly debts, including the new housing payment, compared with your monthly qualifying income.
Business-purpose loan: a loan made to buy or hold rental property rather than a home you live in.
Frequently Asked Questions
Do I need W-2s or pay stubs for an asset-based mortgage?
Usually not. The qualifier path documents no employment or income, and the depletion path derives income from your balances. A lender can still ask for income documents if you layer earned income onto the file, since that income has to be verified.
Do retirement accounts count?
Yes, on both paths, at different percentages. On the qualifier path, 401(k) and IRA balances count at 90% under age 59½ and 100% at 59½ or older. On the depletion path they count at 70% at any age. Statements are required either way, and the lender’s own review governs.
Does the money have to be liquidated?
No. The accounts stay invested, and the lender counts the eligible percentage of the balance. What matters is that the funds are seasoned, owned by you, and documented with the required statements. On the depletion path, cash-out proceeds from the new loan never count as qualifying assets.
Is this the same as a no-doc loan?
No. Income documentation is reduced, but assets are documented in full, credit is reviewed, and the property is appraised. Every file is underwritten individually, and nothing is guaranteed.
Can I use it for a Florida rental property?
Only on the depletion path, at up to 65% on a purchase or rate-and-term refinance and 60% on a cash-out, subject to underwriting. The qualifier path covers principal residences and second homes. For a rental you plan to hold for income, a DSCR loan is often the more practical structure.
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. This is not a commitment to lend. Programs change, and each file is underwritten individually by the lender.
Lendmire’s asset-based mortgage in Florida page presents the program for Florida borrowers.
About Lendmire
Lendmire, NMLS# 2371349, is a mortgage brokerage with consumer lending licenses in 16 states. Bank statement, P&L-only, 1099-only and asset-based mortgages are arranged through wholesale lending partners for borrowers whose tax returns understate their income, and each application is reviewed individually by the lender. Scotsman Guide named Lendmire a Top Mortgage Workplace in both 2025 and 2026.
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References
1. Cornell LII – 12 CFR 1026.43
3. CFPB – 12 CFR 1026.3 Exempt transactions
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 Mortgage vs Bank Statement Mortgage · Savings Account vs Brokerage Account: Which Counts More on an Asset-Based Mortgage? · What Counts as an Asset Statement for a Mortgage?
Guides: Asset-Based Mortgage in Florida
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.