The Quick Read:
- Two paths exist. On the asset qualifier path, eligible assets must equal or exceed the entire loan, and no employment or income is documented. On the asset depletion path, usable assets divided by 60 months become qualifying income.
- One path at a time. A borrower is reviewed on one path, never a blend of both.
- Assets are documented. Statements, seasoning and credit all matter. Skipping income documentation is not the same as skipping documentation.
- Investment property is narrower. Only the depletion path covers it, at lower leverage. Rental investors often look at DSCR financing instead.
- Figures are ceilings and floors. They are not offers, and the lender’s own calculation governs.
What Does an Asset-Based Mortgage Actually Do for Someone Without a Paycheck?
An asset-based mortgage lets large balances stand in for a paycheck. The lender looks at what you own, not what you earn. Retirees, people between jobs, business sellers, and households living off a portfolio fit this profile.
Lendmire is a mortgage broker, not a lender. It places these files through select lenders in its wholesale network, and consumer mortgage lending is licensed in 16 states, including Michigan. The program figures below do not change by state. Michigan is the setting here, not a different rulebook.
Two paths dominate what Lendmire sees across that network. They solve the same problem in different ways, so pick the one that matches your balance sheet.
| Factor | Asset qualifier path | Asset depletion path |
|---|---|---|
| Job or income documented | No | Derived from assets |
| How assets are used | Must cover the entire loan | Usable assets ÷ 60 months = income |
| Debt-to-income test | None documented | Yes, on derived income |
| Purchase leverage | Up to 80% LTV | 80% primary/second home; 65% investment |
| Refinance leverage | Up to 75% LTV | 80% rate-and-term; 60% cash-out (65%/60% investment) |
| Loan amounts | Up to $4,000,000 | $125,000 to $3,500,000 |
All figures are typical ceilings through select programs, subject to underwriting. The qualifier path covers principal residences and second homes. The depletion path adds investment property.
Which Path Fits Your Balance Sheet?
If your eligible assets add up to the whole loan, the qualifier path is cleaner. You do not document employment or income, and the lender’s ability-to-repay review rests on the assets. Reserves are typically not required at or below 75% loan-to-value. Above that, the lender sets them.
If your assets are large but fall short of the loan amount, the depletion path may fit. Your portfolio is converted into monthly income, and that income must carry the housing payment and other debts. The tradeoff is a debt-to-income test and heavier minimums.
Think of it this way. The qualifier path asks, “Can your assets pay off this loan?” The depletion path asks, “Can your assets generate enough income to carry this loan?” A borrower with $2 million in liquid assets and a $500,000 loan will often land on the first path. A borrower with the same assets and a $2.5 million loan may need the second.
How Do the Numbers Work? Two Worked Examples
Both examples are illustrative. The lender’s own calculation governs.
Qualifier path. Picture an $800,000 loan with three account types behind it:
- Brokerage accounts of $330,000 count at 100%, or $330,000.
- A 401(k) of $300,000 for a borrower under age 59½ counts at 90%, or $270,000.
- Savings of $200,000 count at 100%, or $200,000.
Usable assets total $800,000. That equals the loan, so the file is reviewed on assets alone, subject to underwriting.
Depletion path. Say you hold $1,500,000 in securities and $300,000 in cash.
- Securities count at 80%, or $1,200,000.
- Cash counts at 100%, or $300,000.
- Usable assets are $1,500,000. 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. This is why the second path rewards borrowers with lower debt and a modest loan relative to their portfolio.
Which Assets Count, and at What Percentage?
Cash and certificates of deposit count in full on both paths. After that, the paths split. Keep them separate.
| Asset type | Qualifier path | Depletion path |
|---|---|---|
| Savings, money market, cash accounts | 100% | 100% |
| Certificates of deposit | 100% | 100% |
| Brokerage accounts / securities | 100% | 80% |
| 401(k) / IRA | 90% under 59½; 100% at 59½+ | 70% at any age |
| Private stock | Not published | 75% |
| Real-estate equity | Not published | 60% |
Accounts combine on the qualifier path. The depletion path does not accept custodial accounts, deferred compensation, escrow accounts, foreign funds, cash on hand, stock options, non-vested restricted stock units, or funds from non-regulated financial companies. Cash-out proceeds never count as qualifying assets.
What about cryptocurrency, precious metals, collectibles, or borrowed and pledged funds? These 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 lender reviewing the source. Do not assume they count at any percentage.
You generally are not forced to sell your portfolio to qualify, though tax treatment varies; consult a qualified professional.
What About Credit, Seasoning, and Minimums?
No job does not mean no credit review. Credit is checked, and approval is never promised.
- Qualifier path: a 600 minimum score. Assets need 60 days of seasoning, with two months of statements for each qualifying account.
- Depletion path: the lender’s score and loan-amount matrix applies. A first-time investor needs 700. 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.
- Depletion minimums: qualified assets of at least the lesser of $1,000,000 or 1.25 times the loan balance, and never below $250,000 liquid when asset depletion is the only income source.
- Housing history: typically 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 4 years of seasoning on the depletion path.
Asset-derived income may also supplement documented income, such as a pension or Social Security, up to a 45% debt-to-income ratio. When it supplements, the minimum-assets rule is waived.
Large recent deposits are the most common surprise. Money that moved between accounts, gifts, or deposits without a clear paper trail can slow a file or knock funds out of the count. Moving money early and keeping a record of why helps.
Does Michigan Change Anything?
Michigan does not change the program. The percentages, divisors and loan limits are the same as elsewhere, and consumer lending is licensed in Michigan. Local facts like taxes, insurance and prices affect the budget, not the guidelines.
Where Michigan matters is in who tends to use the product. Retirees buying a second home in northern Michigan or on a lake often hold large retirement and brokerage balances with modest income. Auto-industry retirees or people who took a buyout may hold a lump sum without a current paycheck. Business sellers may be sitting on proceeds. For second homes, the qualifier path can work if assets cover the loan outright.
Is This You? Five Common Situations
The retiree. Documented income is a pension or Social Security, with large retirement balances. Either path may fit, and asset income can supplement the pension up to a 45% debt-to-income ratio.
Between jobs. You have a severance, savings and brokerage accounts but no current employer. The qualifier path is attractive if assets cover the loan, since no employment is documented.
Sold a business. Sale proceeds are excused from the 120-day statement seasoning on the depletion path. The qualifier path still wants its own two months of statements and 60 days of seasoning.
The one-earner household. One spouse earns, the other does not. Assets can supplement documented income on the depletion path rather than replacing it.
The self-employed borrower with heavy write-offs. If traditional personal-income documentation shows little income but the balance sheet is strong, assets may qualify you where returns do not. If you document income through deposits instead, a bank statement program is built for that. It is a different product.
Can You Use This for a Rental Property?
On the depletion path, yes. Investment property is covered at up to 65% on a purchase or rate-and-term refinance and 60% on a cash-out refinance. The qualifier path does not cover investment property.
That leverage is lower than what primary residences get, which is why many rental investors with no job look at a different tool. DSCR loans are designed for non-owner-occupied investment properties. They are reviewed on the property’s rent against its payment rather than on a paycheck. A business-purpose loan is generally treated differently from a standard consumer mortgage. The Federal Register notes that business-purpose loans fall outside the ability-to-repay rule. Doss Law adds that if you expect to occupy the property more than 14 days in the coming year, it is treated as consumer credit unless the property has more than two units.
Rent coverage usually decides a DSCR file, and the borrower still needs credit and reserves. Programs below a 1.00 coverage ratio are available through select lenders in the network, but LTV and terms adjust. For the full picture, see the complete DSCR loans guide.
The tradeoff is simple. A DSCR loan trades personal income documentation for property-level underwriting, and it usually costs more than a loan you could qualify for another way. The asset depletion route on an investment property keeps you in consumer lending at lower leverage. If the rent covers the payment with room to spare, DSCR may be the cleaner route. If the property is thin on rent but your portfolio is large, depletion may be better. Run both against the same property before choosing.
What Documents Replace Pay Stubs?
Expect to provide the following instead of W-2s and pay stubs:
1. Two months of statements for each qualifying account (qualifier path), or statements at least 120 days old plus the latest within 45 days (depletion path). 2. Government ID and credit authorization. 3. The purchase contract or current mortgage information for the property. 4. Source documentation for any large recent deposit. 5. Any documented income you want to supplement the file, such as a pension or Social Security award letter.
The assets are documented on both paths. “No income documentation” never turns into “no documentation.”
Why Do These Files Get Turned Down?
Most issues come from a few predictable places:
- Assets that do not count. Crypto, collectibles, or borrowed funds counted at full value in a borrower’s own math.
- Unseasoned money. Funds moved recently without a paper trail.
- A thin cushion. On the depletion path, usable assets that barely clear the minimums leave no room if a statement balance drops.
- Credit and housing history. Recent late payments or a housing event inside the seasoning window.
- Wrong path. A borrower whose assets cover the loan outright spends effort on the depletion path, or the reverse.
Who Should Skip This?
This is not the right tool for everyone. If you can qualify on income and have a short-term gap, a conventional loan after the gap may cost less. If a large share of your wealth is in assets the program does not count, you may fall short. If paying cash makes sense and you do not need to keep liquidity, a mortgage adds cost for no reason. And if the loan would consume most of your qualifying assets, the file may be thin on cushion even if it technically clears.
Lendmire’s piece on how super jumbo underwriting treats asset-rich borrowers with no current job covers the larger-loan end. For borrowers weighing a securities-backed approach instead, see Lendmire’s piece Pledged-Asset Mortgage vs PAL vs Margin Loan With No Current Employment.
Key Terms Defined
Asset qualifier path: a program route where eligible assets must equal or exceed the whole loan, and no employment or income is documented.
Asset depletion path: a route that divides usable assets by 60 months to create qualifying income, which then goes through a debt-to-income test.
Usable assets: the share of each account balance that counts after the program’s percentages are applied.
Seasoning: the time funds have sat in your account, shown by statements, before they can count.
Debt-to-income ratio: your monthly debts, including the new housing payment, compared with your qualifying income.
DSCR: a ratio of a rental property’s income to its housing payment, used for investment loans.
Frequently Asked Questions
Can I qualify if my only money is in a 401(k) or IRA?
Yes, on either path, though the two count retirement balances differently. On the qualifier path, balances count at 90% under age 59½ and 100% at 59½ or older. On the depletion path, they count at 70% at any age. Retirement balances alone must still clear the path’s overall minimums, subject to underwriting.
Is this the same as a no-doc loan?
No. Neither path skips documentation. You document accounts, statements, credit and the property. On the qualifier path no income is documented, but the file rests on the assets. The depletion path converts assets into income and tests it against your debts.
Can I use it to buy a rental?
Only on the depletion path, at up to 65% on a purchase or 60% on a cash-out for investment property, subject to underwriting. Business-purpose investors may prefer DSCR financing. State rules differ on licensing for loans secured by residential property, as Hunton Andrews Kurth cautions, so lender structure matters.
Do I have to sell my investments?
No. The program counts your balances; it does not require liquidation. The assets stay in place, though they must remain eligible and documented through the file.
How much do I need on the depletion path?
Qualified assets of at least the lesser of $1,000,000 or 1.25 times the loan balance, and never below $250,000 liquid when asset depletion is the only income source. These are program floors, not offers.
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 Michigan page presents the program for Michigan 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
1. Federal Register – Ability-to-Repay and Qualified Mortgage Standards
2. Doss Law – Business Purpose Exemption Simplified
3. Hunton Andrews Kurth – Beware of Business Purpose
This article is part of Lendmire’s asset-based mortgage program — full qualification details, guidelines, and scenarios live on the program page.
Related reading: How Long Should Money Sit in an Account Before an Asset-Based Mortgage Application? · How an Asset Depletion Mortgage Works · Joint vs Individual Accounts on an Asset Depletion Mortgage
Guides: Asset-Based Mortgage in Michigan
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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- Lendmire LLC · Firm NMLS# 2371349 · Verify firm licensure
Required disclosures. Lendmire (NMLS# 2371349) operates as a licensed mortgage broker, not a direct lender or depository. The discussion in this article is general in nature and should not be relied upon as financial, legal, or tax advice — every investment scenario is unique and should be reviewed by a qualified professional. Any loan inquiry is subject to lender underwriting, and this article is not a commitment to lend or a guarantee of approval. Mortgage rates, loan terms, and program guidelines vary by borrower, property, and state, and may change without notice. Equal Housing Opportunity. Verify licensure at NMLS Consumer Access.