The Quick Read: Yes, you can, because an asset-based mortgage is reviewed against savings and investments instead of a paycheck, either by counting eligible assets against the whole loan or by converting them into monthly qualifying income, and a rental property can also be financed on its own rent through a DSCR loan, all subject to underwriting. Your assets are still documented, and your credit is still reviewed. What changes is that your employment is not the thing being tested. The program figures below come through select lenders in Lendmire’s wholesale network and are ceilings and floors, not offers.
- Asset qualifier path: eligible assets must cover the entire loan, and no employment or income is documented.
- Asset depletion path: eligible assets are divided by 60 months into qualifying income, which then runs through a debt-to-income test.
- Rental property: a DSCR loan is reviewed primarily on property-level rental income covering the payment, subject to lender guidelines.
- Credit and seasoning still apply: statements, source-of-funds review and a credit pull are part of every file.
What Does “Asset-Based Mortgage” Actually Mean?
An asset-based mortgage is a consumer mortgage that is reviewed around what you own rather than what you earn. The search term covers two different loans, and the answer changes depending on which one you mean. Lenders also call this asset depletion or asset utilization.
The first path is the asset qualifier. The lender adds up your eligible assets after applying a credit percentage to each account type. If the total equals or exceeds the entire loan amount, you qualify on assets alone. No employment or income is documented.
The second path is asset depletion. The lender applies a haircut to each asset type and divides the usable total by 60 months. The result is a monthly qualifying income. That income has to carry the full housing payment and your other debts through the debt-to-income test.
A borrower is qualified on one path at a time. The two paths do not blend, and the numbers in one path never carry over to the other.
Then there is a third loan that often gets lumped in: the rental-property DSCR loan. It is a business-purpose investor loan, and it qualifies the property instead of you. More on that below.
Why a Lender Will Lend to Someone Without a Paycheck
Lenders do not need a job. They need a credible way to see that the loan gets repaid. On the qualifier path, the answer is simple. The assets cover the whole loan, so the repayment case rests on the balance sheet. On the depletion path, the assets are converted into income and tested like any other income.
That is why “no job” and “no income” are not the same thing to an underwriter. A retired executive with a large brokerage account has a repayment source. A person between jobs with a small savings balance does not. The lender looks at the size, type and age of the assets, not at whether a W-2 exists.
Think of it as a different set of documents, not fewer. You swap pay stubs and traditional personal-income documentation for account statements and a source-of-funds review.
Which Path Fits Which Borrower?
The qualifier path fits cash-heavy borrowers who can cover the loan with assets alone. The depletion path fits borrowers whose assets are large but who want to use leverage and need income to be derived. Most files in this lane are retirees, sellers of a business, inheritance or settlement recipients, early-retired professionals and households living on a portfolio.
| Factor | Asset qualifier path | Asset depletion path |
|---|---|---|
| How it qualifies | Assets cover the entire loan | Assets ÷ 60 months = income |
| Income documented | None | Derived, runs through debt-to-income |
| Loan amounts | Up to $4,000,000 | $125,000 to $3,500,000 |
| Purchase leverage | Up to 80% | Up to 80% (primary or second home); up to 65% (investment property) |
| Refinance leverage | Up to 75% | Up to 80% rate-and-term; 60% cash-out (primary or second home); investment property 65% rate-and-term, 60% cash-out |
| Credit floor | 600 | The lender’s matrix |
| Reserves | None at or below 75% LTV | No published reserve months |
All figures are typical ranges through select programs, subject to underwriting and lender guidelines. On the qualifier path, whether cash-out is allowed, and at what leverage, is set by the lender and is not published. Do not plan around it. On the depletion path, cash-out proceeds never count as qualifying assets.
Notice one more split. The qualifier path covers principal residences and second homes. Investment property appears only on the depletion path.
How Much of Each Asset Counts?
Each account type counts at a percentage of its balance, and the percentages differ by path. Cash-like assets count at full value. Market-exposed and retirement assets count for less on the depletion path.
On the qualifier path, the credit percentages are:
- Brokerage accounts: 100%
- Certificates of deposit: 100%
- Money market: 100%
- Savings: 100%
- 401(k) and IRA balances: 90% under age 59½, and 100% at 59½ or older
Accounts combine. You do not need one account to cover the loan.
On the depletion path, the haircuts are:
- Cash accounts: 100%
- Certificates of deposit: 100%
- Securities: 80%
- Private stock: 75%
- Retirement accounts: 70% at any age
- Real-estate equity: 60%
Market explainers note that retirement balances are often discounted, and that depletion methods and divisors vary across the market, as in this asset depletion explainer from Morty. Across the wholesale network, the divisor on this program is 60 months. Do not compare a divisor from one lender’s brochure to another and assume they match.
Several asset types are 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. 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 to convert them to a seasoned cash balance in a regulated account, with the source reviewed by the lender.
Two Worked Examples
These examples are illustrative. The lender’s own calculation governs.
Qualifier path. Say you want an $800,000 loan. You hold $330,000 in brokerage accounts (100% counts, so $330,000), $300,000 in a 401(k) while under 59½ (90% counts, so $270,000), and $200,000 in savings (100% counts, so $200,000). That is $800,000 of usable assets. It equals the loan, so the file is reviewed on assets alone, subject to underwriting. You document no employment.
Depletion path. Say 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%. That is $1,500,000 of usable assets. Divide by 60 months and you get $25,000 of monthly qualifying income. That income then has to carry the housing payment and your other debts through the debt-to-income test.
Same borrower, two different results. The qualifier path asks whether the assets cover the loan. The depletion path asks whether the derived income carries the payment.
The Seasoning and Statement Rules
Assets have to be documented and aged. “No income documentation” never turns into “no documentation.”
On the qualifier path, expect 60 days of seasoning and 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. Funds from the sale of a business, an inheritance or a legal settlement are excused from that seasoning on the depletion path.
Large recent deposits are where files stall. An unexplained transfer from an account you do not list, or a gift that looks like borrowed money, triggers a source-of-funds review. Pull your statements and explain every large movement before the file goes in.
Depletion files also carry minimum asset tests. Qualified assets must equal at least the lesser of $1,000,000 or 1.25 times the loan balance. When depletion is the only income source, liquid assets never fall below $250,000. If asset-derived income only supplements documented income, it can be used up to a 45% debt-to-income ratio, and the minimum-assets rule is waived.
What About Credit?
Credit still matters. 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 reviewed at 0x30x12. One 30-day late in the last twelve months is considered case by case. Multiple bankruptcies are not eligible, and a housing event needs four years of seasoning on the depletion path. All of this is subject to underwriting. Expect a credit pull.
Key Terms Defined
Asset qualifier: A path where eligible assets, after credit percentages, must equal or exceed the whole loan, and no income is documented.
Asset depletion: A path where usable assets divided by 60 months create a monthly qualifying income.
Usable assets: The part of each balance that counts after the lender applies its percentage to the account type.
Seasoning: The period an account or fund must sit in your name, shown by statements, before it counts.
DSCR: Debt service coverage ratio, meaning the property’s rent divided by its full monthly obligation.
When the Property Is a Rental
If you are buying a rental, the better question is often whether assets or rent should do the qualifying. Both can work. They are different tools.
A DSCR loan is built for non-owner-occupied investment property. Because these are business-purpose investor loans, they are reviewed differently from a standard owner-occupied mortgage. The loan is reviewed primarily on property-level rental income covering the payment, subject to lender guidelines. Your employment is not part of the review. Credit, down payment, reserves and the property still are. The complete DSCR loans guide covers how the coverage ratio is built.
Here is the catch: the business-purpose label has to be real. The CFPB’s rule on exempt transactions treats credit for a non-owner-occupied rental as business purpose, but if you expect to occupy the property for more than 14 days in the coming year, that treatment does not apply. A vacation home you plan to use is not a DSCR candidate. Lending to an entity such as an LLC is also addressed in 12 CFR 1026.3, subject to program terms.
Compare the two for a rental. On the depletion path, an investment property goes up to 65% on a purchase or rate-and-term refinance and 60% on a cash-out. It also pushes your derived income through a debt-to-income test. A DSCR loan puts the rent to work and leaves your liquid wealth out of a payment-to-income test. Reserves and down payment funds are still verified either way.
Some programs in the network review coverage ratios below 1.00, but leverage and terms adjust when they do. That is a question for a file review, not a promise.
For borrowers whose real goal is to unlock liquid wealth for a large purchase, Lendmire’s piece on how super jumbo underwriting works for asset-rich borrowers with no current job covers that angle.
Which Loan Fits? A Decision Table
| Your situation | Likely fit | Main tradeoff |
|---|---|---|
| Large liquid balances, buying a home | Asset qualifier path | Assets must cover the whole loan |
| Large assets, want more leverage | Asset depletion path | Derived income must clear the debt-to-income test |
| Buying or refinancing a rental | DSCR loan | Rent must cover the payment |
| Income shows in deposits, not traditional personal-income documentation | Bank statement program | Deposits document the income |
| Small assets, no income | Wait, or add a co-borrower | Assets or income must grow first |
The bank statement program is for borrowers who document income with deposits. It does not fit someone with no income stream.
How the Process Works
1. Choose the path. Decide whether assets cover the loan, or assets become income. A borrower is on one path at a time.
2. Pull statements. Gather every account you plan to count. Meet the statement age and seasoning rules for your path.
3. Explain large deposits. Write down the source of any large transfer, sale or gift.
4. Pick the property and leverage. Match the loan amount and occupancy to the path’s leverage ceiling.
5. Submit credit and entity details. Expect a credit pull. If the property is a rental held in an LLC, add entity documents, subject to lender program eligibility.
6. Underwriting review. The lender reviews assets, credit and the property. This is a consumer mortgage, so consumer mortgage disclosures apply to the asset-based loan. DSCR loans, being business-purpose, are exempt from those disclosures.
Common Reasons These Files Stall
- Assets sit in an ineligible bucket, such as crypto, stock options or non-vested restricted stock units.
- The statements are too new, or missing a month.
- A large deposit has no documented source.
- Retirement balances were counted at full value on the depletion path, where they count at 70%.
- The borrower assumed the qualifier path covers investment property. It does not.
- The loan size outran the assets by even a small margin. On the qualifier path, the total must equal or exceed the loan.
The Honest Risks
The loan is approved on assets, but the payments come out of real life. Three risks deserve real attention.
Market drops. If securities fall before closing, the usable total falls with them. A cushion above the minimum helps. This is especially true on the depletion path, where securities count at 80%.
Spending the base. You still have to live on something. A borrower with no paycheck who draws down the same accounts that qualified the loan weakens their own position over time. Plan the cash flow on paper before you sign.
Retirement withdrawals. Pulling from a retirement account to cover payments can bring its own costs. Tax treatment varies; consult a qualified professional.
Lendmire’s article Pledged-Asset Mortgage vs PAL vs Margin Loan With No Current Employment compares alternatives that keep your portfolio invested.
California Considerations
California consumer mortgage lending through Lendmire’s network is available in California, one of 16 states where the platform is licensed for consumer lending. The program figures do not change by state. What changes is context: California prices run high, so the qualifier path’s loan ceiling of $4,000,000 and the depletion path’s $3,500,000 ceiling matter more here than in many markets.
Two practical points. First, if your assets are titled in a trust or held by one spouse, bring that paperwork up front, and speak with an attorney about how ownership interacts with the loan. Second, because California brokers and lenders operate under state licensing rules, a rental-loan arrangement may involve state requirements. The California DFPI publishes licensing guidance for finance lenders.
Frequently Asked Questions
Do I need employment income for an asset-based mortgage?
No, not on the asset qualifier path, where the assets must equal or exceed the entire loan and no employment or income is documented. On the depletion path, no job is required, but assets are converted into income that must pass the debt-to-income test. Credit and asset documentation still apply on both paths, subject to underwriting.
Do retirement accounts count?
Yes, at a reduced percentage on both paths. 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, retirement accounts count at 70% at any age. The lender’s own calculation governs.
Can I use this to buy an investment property?
Only on the depletion path, where an investment property goes up to 65% on a purchase or rate-and-term refinance and 60% on a cash-out. For a pure rental, many investors use a DSCR loan, which qualifies primarily on property-level rental income covering the payment, subject to lender guidelines.
How old do my statements need to be?
On the qualifier path, you need 60 days of seasoning and two months of statements for each qualifying account. On the depletion path, statements must be at least 120 days old at application, plus a recent statement within 45 days. Sale-of-business, inheritance and legal-settlement funds are excused from that seasoning on the depletion path.
Does losing my job last month change anything?
Not the program mechanics. The lender looks at assets, credit and the property, not your last paycheck. Be ready to show that the assets are yours and that large recent deposits have a clear source.
Your 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. Lendmire is a mortgage broker that arranges financing through select lenders in its wholesale network. Loans are subject to underwriting and are not a commitment to lend.
Cash balances, not job titles, carry these files, and in a high-priced state like California that means the borrowers who prepare clean statements early are the ones whose numbers hold up in review.
Lendmire’s asset-based mortgage in California page presents the program for California borrowers.
About Lendmire
Lendmire is a mortgage brokerage (NMLS# 2371349) licensed for consumer mortgage lending in 16 states, arranging bank statement and other alternative-documentation mortgages — P&L-only, 1099-only and asset-based paths — through a wholesale lending network. Eligibility is determined by the lender on each file. Scotsman Guide named Lendmire a Top Mortgage Workplace in both 2025 and 2026.
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References
1. Morty – Asset Depletion Mortgages 101
2. CFPB – Regulation Z § 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: Is an Asset Qualifier Mortgage Harder to Get Than an Asset Depletion Loan? · How Lenders Count Assets Toward an Asset Depletion Mortgage · How an Asset Depletion Mortgage Works
Guides: Asset-Based Mortgage in California
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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- Lendmire LLC · Firm NMLS# 2371349 · Verify firm licensure
Disclosures. The information presented in this article is general market commentary, not financial, legal, or tax advice. Lendmire is a mortgage brokerage (NMLS# 2371349) — not a direct lender or depository institution — and loan placement is subject to lender underwriting. Nothing in this content represents a commitment to lend. Loan terms, pricing, and program availability vary based on borrower qualifications, property characteristics, and state of subject property, and are subject to change at any time. Lendmire complies with Equal Housing Opportunity requirements. Consumer access: nmlsconsumeraccess.org.