The Quick Read: Usually when your eligible assets, after the credit percentages, cover the entire loan and you want no income or debt-to-income test deciding the file. The asset qualifier path documents assets only. The asset depletion path turns assets into monthly income and then tests that income against your debts.
- Qualifier path: eligible assets must equal or exceed the whole loan, with no employment or income documented, subject to underwriting.
- Depletion path: usable assets divided by 60 months become qualifying income that runs through the debt-to-income test.
- Qualifier leverage runs up to 80% on a purchase and 75% on a refinance; loans go to $4,000,000.
- Depletion leverage on a principal residence or second home runs up to 80% on a purchase and 60% on a cash-out; loans run $125,000 to $3,500,000.
- Assets are documented on both paths. “No income documentation” never means no documentation.
Lendmire is a broker. It places these consumer mortgages through select lenders in its network, and the lender’s own calculation and underwriting govern every file. Nothing here is a commitment to lend. The figures below are ceilings and floors, not offers.
Two Paths, One Borrower at a Time
A borrower is reviewed on one path per file. You do not blend the two tables. The qualifier path asks one question: do your eligible assets cover the whole loan? The depletion path asks a different one: can the income your assets generate carry the housing payment and your other debts?
That difference drives everything else. The qualifier path never builds an income number. The depletion path builds one and then tests it.
On vocabulary. The industry does not use these labels the same way. Some programs call the income-conversion method “depletion” and the assets-only method “qualifier.” Others split them by divisor. Ask any lender, in plain words, which test the program runs and what divisor it uses. Across the wholesale network, the labels matter less than the mechanics behind them.
Key Terms Defined
Asset qualifier path: A structure that drives lender review on assets alone, where eligible assets must equal or exceed the entire loan amount.
Asset depletion path: A structure that divides usable assets by 60 months to create monthly qualifying income, then runs that income through the debt-to-income test.
Haircut: The share of an account’s balance a lender will not count. A 70% credit means a 30% haircut.
Debt-to-income (DTI): Monthly debts, including the new housing payment, divided by monthly qualifying income.
Seasoning: How long funds have sat in an account before they count.
Usable assets: The balance left after the credit percentages are applied.
How Each Path Counts Your Assets
The two paths treat the same account differently. Here is the side-by-side, subject to underwriting.
| Asset | Qualifier path | Depletion path |
|---|---|---|
| Savings, money market | 100% | Cash accounts 100% |
| Certificates of deposit | 100% | 100% |
| Brokerage accounts | 100% | Securities 80% |
| 401(k) and IRA | 90% under 59½, 100% at 59½+ | 70% at any age |
| Private stock | Not published | 75% |
| Real-estate equity | Not published | 60% |
Retirement accounts show the biggest gap. A 58-year-old with a large 401(k) keeps 90% of it on the qualifier path and only 70% on the depletion path. Brokerage balances tell the same story: full value on one path, 80% on the other.
Some assets do not count on either path. Cryptocurrency, precious metals, collectibles, pledged or borrowed funds, and business accounts beyond your ownership share are not published as eligible. The documented route is to convert them to cash, season the balance in a regulated account, and let the lender review the source. Custodial accounts, deferred compensation, escrow accounts, foreign funds, cash on hand, stock options and non-vested restricted stock units are also out on the depletion path.
The federal ability-to-repay rule backs up the basic idea that assets can carry a loan. The CFPB’s text of 12 CFR 1026.43 lets a creditor rely on income, on assets other than the dwelling itself, or on both. It also excludes the value of the home securing the loan. Your equity in the subject property never counts as an asset for that purpose.
Same Borrower, Both Paths
Run an illustrative borrower through each path. The lender’s own calculation governs the real file.
Qualifier path. Take an $800,000 loan. The borrower holds $330,000 in brokerage accounts (100% counts, so $330,000), $300,000 in a 401(k) at under 59½ (90% counts, so $270,000) and $200,000 in savings (100% counts, so $200,000). Usable assets total $800,000, which equals the loan. The file is reviewed on assets alone, subject to underwriting. No income is documented.
Depletion path. Take $1,500,000 in securities (80% counts, so $1,200,000) plus $300,000 in cash (100% counts). Usable assets are $1,500,000. Divide by 60 months and you get $25,000 of monthly qualifying income. That income then has to carry the housing payment and other debts through the debt-to-income test.
Notice what the first borrower never had to prove: income. And notice what the second borrower still has to clear: a ratio. The qualifier path swaps a ratio test for a bigger asset requirement.
When the Qualifier Path Is the Right Choice
Pick the qualifier path when these conditions line up.
1. Assets cover the whole loan. The path only works if usable assets equal or exceed the entire loan amount. If they fall short, the path is closed.
2. The loan is large. Qualifier loans run to $4,000,000, while the depletion path tops out at $3,500,000. A buyer above $3,500,000 has one option of the two.
3. Debt-to-income would be the problem. A borrower with a big portfolio and heavy existing obligations may fail a depletion ratio even with plenty of assets. The qualifier path has no ratio to fail.
4. Retirement balances are a big share of the pool. At 59½ or older, retirement accounts count at 100% on the qualifier path versus 70% on depletion.
5. You want no documented income at all. A recent business sale, an inheritance or a settlement can leave a buyer with large balances and no current paycheck. The qualifier path asks for statements, not income.
6. Credit sits near the floor. The qualifier path publishes a 600 minimum score, subject to underwriting. The depletion path follows the lender’s score and loan-amount matrix.
Leverage helps too. The qualifier path goes up to 80% on a purchase and 75% on a refinance. Reserves are not required at or below 75% loan-to-value, and above that the lender sets them. Whether the qualifier path allows cash-out, and at what leverage, is the lender’s call and is not published, so never plan around it.
When Asset Depletion Is the Better Choice
The depletion path wins in a different set of cases.
1. Assets do not cover the whole loan. A $1,500,000 usable pool cannot qualify a $2,000,000 loan on the qualifier path. On the depletion path, it can still generate income to carry a smaller loan against other income.
2. You have other documented income. Asset-derived income may supplement Social Security, pension or wages, up to a 45% debt-to-income ratio. When it supplements, the minimum-assets rule is waived.
3. You want cash-out. The depletion path states cash-out leverage: 60% on a principal residence, second home or investment property. The qualifier path does not publish it. Cash-out proceeds never count as qualifying assets.
4. The property is an investment property. The depletion path reaches investment property, at up to 65% on a purchase or rate-and-term refinance and 60% on a cash-out. The qualifier path does not cover it.
5. The loan is small. Depletion starts at $125,000.
The depletion path carries its own minimums. Qualified assets must reach at least the lesser of $1,000,000 or 1.25 times the loan balance. Liquid assets must never fall below $250,000 when depletion is the only income source. A first-time investor on this path needs a 700 score, and a housing event needs 4 years of seasoning.
Seasoning and Statements Differ
Documentation is where preventable gaps show up. 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. Funds from the sale of a business, an inheritance or a legal settlement are excused from that seasoning.
Two habits keep files clean. Move money before you apply, not during review. And keep every account you plan to count on the same statement cycle, so no account becomes the one that drags the file.
Florida-Specific Context
The program figures do not change by state. A Florida borrower sees the same percentages, divisors and ceilings as a borrower anywhere else the program is placed. Consumer mortgage lending through Lendmire’s network is licensed in 16 states, and Florida is one of them.
What changes is the property. Florida buyers often shop condos, second homes and higher-priced coastal property. Loan size pushes some buyers past the depletion ceiling. Seasonal and second-home purchases fit both paths on occupancy, but an investment property reaches only the depletion path. Condo project review and insurance are property-level questions that sit outside the asset test, and they can slow or stop a file regardless of how clean the assets are. Treat the building as its own underwriting item.
If the larger question is jumbo versus high-balance sizing for an expensive property, Lendmire’s piece Should a High-Cost County Buyer Choose High-Balance Over Jumbo? covers that decision.
When Neither Path Fits
A pure rental purchase usually belongs somewhere else. 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. Qualification runs primarily on property-level rental income covering the payment, subject to lender guidelines. Lendmire’s complete DSCR loans guide walks through that route. Sub-1.00 coverage is available through select lenders in the network, with leverage and terms adjusted.
An asset path is the second tool for a rental buyer. It helps when the rent will not cover the payment and the buyer holds large liquid balances but little documented income.
Borrowers who document income through bank deposits belong in a bank statement program instead. If a borrower’s documented income already carries the payment, a standard income-based loan is simpler. The brokerage can compare these side by side.
Trade-Offs of the Qualifier Path
Qualifier income is not free. Three costs deserve a hard look.
Liquidity commitment. The assets that qualify you are the same assets you need for the down payment, closing costs and cushion. Count them once. A pool that exactly equals the loan before closing leaves little afterward.
Market exposure. Securities move. A portfolio that covered the loan at application can fall short by the time the lender reviews the final statements. Build margin into the pool.
Overlay gaps. Reserve rules above 75% loan-to-value are lender-set, and cash-out handling on the qualifier path is unpublished. Ask before you assume.
Another trap: double-counting. The same dollars cannot qualify you and also fund the purchase. Subtract transaction needs first, then test the remainder.
Decision Checklist
Answer these in order. Each points to a path, subject to underwriting.
| Question | If yes | If no |
|---|---|---|
| Do usable assets cover the whole loan? | Qualifier is open | Depletion only |
| Is the loan above $3,500,000? | Qualifier only | Either |
| Is it an investment property? | Depletion only | Either |
| Do you want cash-out? | Depletion path | Either |
| Do you have other documented income? | Depletion can supplement | Qualifier fits |
| Would a debt-to-income test be a problem? | Qualifier | Either |
If two answers point in different directions, ask the lender to run both on your statements.
Common Mistakes
- Assuming the labels are universal. Ask what test and divisor the program uses.
- Treating “no income documented” as “no documents.” Statements are required on both paths.
- Counting home equity as an asset on the qualifier path. The dwelling securing the loan is excluded.
- Applying the wrong haircut. A retirement account counts at different shares on each path.
- Spending the pool twice. Down payment and closing costs come out first.
- Expecting the qualifier path to cover an investment property. It does not.
Frequently Asked Questions
Are the asset qualifier and asset depletion paths the same thing?
No. In this program the qualifier path tests whether assets cover the entire loan with no income documented, while the depletion path converts assets into monthly income over 60 months and runs a debt-to-income test. Lenders use the labels differently, so ask each one how its program works.
Do I have to sell my investments to qualify?
No. Nothing is sold or pledged on either path. The lender counts the balances and reviews statements, and the assets stay in your accounts. Whatever you spend on the down payment and closing costs does leave the pool.
Which path gives more usable assets?
The qualifier path, on most mixes. Brokerage accounts count at 100% versus 80% on depletion, and retirement accounts count at 90% or 100% versus 70%. But usable assets on the qualifier path must cover the whole loan, while depletion only needs them to produce enough income.
Can I use either path for a rental property?
Only the depletion path reaches investment property, at up to 65% on a purchase and 60% on a cash-out. Most pure rental purchases are better placed on a DSCR loan, which qualifies primarily on the property’s rental income, subject to lender guidelines.
Does Florida change the numbers?
No. The percentages, divisors and loan ceilings stay the same. Florida changes the property side: condo project review, insurance and higher price points. The federal ability-to-repay rule also requires the lender to verify whatever assets it relies on.
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. Tax treatment varies; consult a qualified professional.
For borrowers who document income through deposits instead, Lendmire’s piece Asset Depletion vs Bank Statement Loan on a Jumbo Over One Million compares the two.
About Lendmire
Lendmire (NMLS# 2371349) is a mortgage brokerage serving self-employed and high-net-worth borrowers in 16 states. Bank statement, P&L-only, 1099-only and asset-based mortgages are arranged through wholesale lending channels; Lendmire brokers the financing and the lender underwrites each application. Scotsman Guide named Lendmire a Top Mortgage Workplace in both 2025 and 2026.
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References
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 Seasoning Rules on an Asset Qualifier vs. an Asset Depletion Loan · Asset Depletion vs Bank Statement Loan for a High-Net-Worth Buyer · Asset Qualifier vs Asset Depletion for an Heir
Guides: Asset-Based Mortgage in Florida
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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Compliance and disclosures. Lendmire (NMLS# 2371349) is a licensed mortgage broker and is not a direct lender, depository institution, financial advisor, or tax professional. Content in this article is general market analysis and educational information — not financial, legal, or tax advice for any specific situation. Lendmire does not guarantee loan approval; every transaction is subject to underwriting by the funding lender. Mortgage pricing and loan program guidelines are subject to change at any time without notice and vary by borrower characteristics, property type, and state regulations. Lendmire complies with Equal Housing Opportunity. Licensure verification: NMLS Consumer Access.