The Quick Read: Yes, usually, when your savings are large and well documented: through select asset-based programs in Lendmire’s network, a borrower can be reviewed against assets instead of a paycheck, either by counting them against the whole loan or by converting them into monthly qualifying income, subject to underwriting. Michigan is one of the 16 states where Lendmire’s consumer mortgage lending is licensed, and the program figures below do not change by state. You skip traditional personal-income documentation, pay stubs and employment verification, but you do not skip documentation, because your statements prove the money exists.
- Two paths exist. On the asset qualifier path, your eligible assets must cover the entire loan. On the asset depletion path, your assets become monthly income that runs through a debt-to-income test.
- You are on one path at a time. The two paths have different rules, so never blend their numbers.
- Savings must be seasoned. Lenders want to see the money sitting in your accounts for a stretch of time.
- Every file is fully underwritten. Credit, the property and your assets all get reviewed.
Which Path Fits You?
The asset qualifier path fits you when your usable assets are at least as large as the loan. The asset depletion path fits you when your assets are large but smaller than the loan, so they need to be turned into income. Both are offered through select programs, subject to lender guidelines.
This table puts the two side by side. Every figure is a ceiling or floor, never an offer.
| Factor | Asset qualifier path | Asset depletion path |
|---|---|---|
| How assets are used | Must equal or exceed the whole loan | Usable assets ÷ 60 months = income |
| Income documented | None | Derived income, tested against debts |
| Purchase leverage | Up to 80% (home or second home) | Up to 80% (home or second home); up to 65% (investment) |
| Refinance leverage | Up to 75% | Up to 80% rate-and-term; 60% cash-out |
| Loan amounts | Up to $4,000,000 | $125,000 to $3,500,000 |
| Credit | 600 minimum score | The lender’s score and loan-amount matrix |
| Property types | Principal residence or second home | Also investment property (business-purpose) |
The purchase and refinance figures in the depletion column for a principal residence or second home are 80% on a purchase or rate-and-term refinance and 60% on a cash-out refinance. A rate-and-term refinance changes your balance or terms without pulling cash out. On an investment property, the depletion path allows up to 65% on a purchase or rate-and-term refinance and 60% on a cash-out.
How Does the Asset Qualifier Path Work?
On the asset qualifier path, the lender adds up your eligible assets after applying a credit percentage to each. If the total equals or exceeds the entire loan amount, you qualify on assets alone. No employment or income is documented.
Brokerage accounts, certificates of deposit, money market accounts and savings all count at 100%. A 401(k) or IRA counts at 90% if you are under 59½ and 100% once you reach 59½. Accounts combine, so you can mix several.
Leverage runs up to 80% on a purchase and up to 75% on a refinance, on a principal residence or second home. Whether cash-out proceeds are allowed on this path is set by the lender and is not published, so ask before you plan around it.
The credit floor is a 600 score, and the program looks at housing history too. A clean twelve months is the target, and one 30-day late payment in that window gets reviewed case by case. Multiple bankruptcies are not eligible.
Reserves are simple. None are required at or below 75% loan-to-value. Above that, the lender sets them.
How Does the Asset Depletion Path Work?
On the asset depletion path, the lender shrinks each asset by a haircut, adds the results, and divides by 60 months. The answer is your monthly qualifying income. That income must then carry the full housing payment and your other debts through the debt-to-income test, which compares monthly debts to monthly income.
The haircuts are steeper here than on the qualifier path. Cash accounts and certificates of deposit count at 100%. Securities count at 80%, private stock at 75%, retirement accounts at 70% at any age, and real-estate equity at 60%.
Several things do not count at all on this path, and they are listed below.
- custodial accounts
- deferred compensation
- escrow accounts
- foreign funds
- cash on hand
- stock options
- non-vested restricted stock units
- funds from non-regulated financial companies
Cash-out proceeds from the new loan never count as qualifying assets either.
There are minimums too. Your qualified assets must be at least the lesser of $1,000,000 or 1.25 times the loan balance. When assets are your only income source, you also need at least $250,000 in liquid funds. If you have documented income as well, asset-derived income can supplement it up to a 45% debt-to-income ratio, and the minimum-assets rule is waived.
Credit follows the lender’s matrix. A first-time investor on this path needs a 700 score. A housing event such as a foreclosure needs four years of seasoning, and multiple bankruptcies are not eligible.
What Counts, and What Doesn’t?
Cash and cash-like accounts count most, and market-linked or restricted holdings count less. This matters because a wealthy borrower can still fall short once the balance sheet is sorted into usable and unusable money.
| Asset type | Qualifier path | Depletion path |
|---|---|---|
| Brokerage accounts | 100% | Securities at 80% |
| Savings and money market | 100% | Cash accounts at 100% |
| Certificates of deposit | 100% | 100% |
| 401(k) or IRA | 90% under 59½; 100% at 59½+ | 70% at any age |
| Private stock | Not listed | 75% |
| Real-estate equity | Not listed | 60% |
Cryptocurrency, precious metals, collectibles, business accounts beyond your ownership share, and pledged or borrowed funds are not published as eligible on either path. The documented route is to convert them into a seasoned cash balance in a regulated account. The lender then reviews where that money came from.
Retirement accounts deserve a second look if most of your wealth sits in them. Withdrawals can trigger consequences outside the loan. Tax treatment varies; consult a qualified professional before drawing on retirement accounts.
Worked Examples
These examples are illustrative, and the lender’s own calculation governs.
Assets cover the whole loan. Say you want an $800,000 loan on a home you will live in. You hold $330,000 in brokerage accounts, which count at 100% for $330,000. You hold $300,000 in a 401(k) and are under 59½, so it counts at 90% for $270,000. You hold $200,000 in savings, which counts at 100% for $200,000. Together that is $800,000 of usable assets, which matches the loan, so the file is reviewed on assets alone on the qualifier path. Leverage still has to fit the 80% purchase ceiling, subject to underwriting.
Assets become income. Say you hold $1,500,000 in securities and $300,000 in cash. The securities count at 80%, or $1,200,000, and the cash at 100%, or $300,000. That is $1,500,000 usable, and dividing by 60 months gives $25,000 of monthly qualifying income. That income then carries the housing payment and your other debts through the debt-to-income test, so a large existing car loan or other debt would reduce what you can borrow.
Three borrower profiles show how this plays out in practice:
- The retiree. Decades of savings sit in a mix of retirement accounts and brokerage holdings, with Social Security as the only paycheck. If the balances are large, the qualifier path may fit a modest loan, and the depletion path helps when the loan is bigger.
- The business seller. Sale proceeds land in a bank account and the paycheck is gone. The depletion path excuses sale-of-business funds from the 120-day statement-age rule, which is the usual obstacle for money that just arrived. Inheritance and legal-settlement funds get the same excuse.
- The person between jobs. Savings are large, but a new job may be months away. If you expect to qualify conventionally soon, waiting can cost less than using an asset-based program. If the gap is long, assets can bridge it.
What Do You Still Have to Document?
You document the money, the property and your credit. You do not document pay stubs, traditional personal-income documentation or employment.
On the asset qualifier path, funds need 60 days of seasoning, and you provide two months of statements for each qualifying account. On the asset depletion path, statements must be at least 120 days old at application, and you also need the most recent statement dated within 45 days.
Here is a practical checklist:
1. Pull every statement for every account you plan to use.
2. Flag any large deposit in the last few months and gather proof of its source.
3. Move money you plan to count into regulated accounts, and let it season.
4. Check your credit report for errors before you apply.
5. Gather the purchase contract or current mortgage details for the property.
Skipping income paperwork is not skipping documentation. Assets are verified, credit is reviewed, and the property is appraised. Programs change, so confirm current guidelines before relying on any figure here.
Does Michigan Change Anything?
Not for the program figures. The leverage ceilings, haircuts, seasoning and credit floors are the same in Michigan as in the other states where the program is offered. Michigan is among the 16 states where Lendmire’s consumer mortgage lending is licensed, so a Michigan borrower can use both paths for a home to live in or a second home.
Local facts, such as home prices, insurance and county-level costs, affect how much house you can buy and keep. They do not change how the lender counts your assets.
Is This the Right Tool for You?
It depends on your situation. The decision table below sorts the common cases.
| Your situation | Likely best fit |
|---|---|
| Large savings, no income, home to live in | Asset qualifier or depletion path |
| Large savings, small income | Depletion path as a supplement to documented income |
| Temporary gap, job starting soon | Waiting for a conventional loan may cost less |
| Self-employed with strong deposits | A bank statement program, which documents income with deposits |
| Buying a rental you will not live in | Business-purpose rental financing |
For a pure rental purchase, the usual route is a DSCR loan, a business-purpose investor loan that qualifies primarily on property-level rental income covering the payment, subject to lender guidelines. 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, and the CFPB’s assessment of its ability-to-repay rule notes that this rule does not apply to credit extended primarily for a business or commercial purpose.
The asset depletion path is the one place an investment property can be financed on your assets, with the lower 65% and 60% leverage ceilings noted earlier. Lenders also add scrutiny for first-time investors, who need a 700 score. If you are weighing it, read about asset-based mortgage programs first.
For contrast, conventional mortgages lean on income. The CFPB’s General QM final rule describes the earlier cap on debt-to-income for that type of loan as 43 percent. That is why a borrower with large savings and a small paycheck often finds the conventional route closed.
What Are the Costs and Risks?
The biggest trade-off is that asset-based programs ask for more of your own money to be visible and set aside, and they carry tighter leverage than the headline number suggests. The asset depletion path caps a cash-out refinance at 60%, and haircuts shrink what each account counts for. Pricing differs from conventional loans and is set by the lender, so compare full terms.
A second risk is drawing down savings. Once your assets are your income, your payment depends on markets and on your own spending. A portfolio that falls in value can leave you with less cushion at the exact moment you rely on it.
Investors face another layer. Business Insider, via Yahoo Finance, cautions investors to stress-test rents, vacancy and maintenance before relying on rental income. 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.
Key Terms Defined
Asset qualifier path: A way to qualify where eligible assets, after credit percentages, must equal or exceed the entire loan amount.
Asset depletion path: A way to qualify where usable assets, after haircuts, are divided by 60 months to create monthly qualifying income.
Haircut: The share of an asset’s balance that a lender does not count, such as 20% off securities.
Seasoning: The length of time money must sit in your account before it counts.
Debt-to-income ratio: Your monthly debts divided by your monthly income, used to test whether you can carry the payment.
DSCR loan: A business-purpose investor loan that qualifies primarily on property-level rental income covering the payment.
Frequently Asked Questions
Can I use retirement funds?
Yes, subject to underwriting. On the asset qualifier path, a 401(k) or IRA counts at 90% under age 59½ and 100% at 59½ or older. On the asset depletion path, retirement accounts count at 70% at any age.
Do I need a job?
No employment is documented on the asset qualifier path. On the asset depletion path, your assets are converted into income, and you can also add documented income up to a 45% debt-to-income ratio. Credit and property review still apply.
Is this the same as a stated-income loan from before the housing crash?
No. Every file is fully underwritten today, and assets are verified with statements. The difference is that your savings, not your pay, prove you can repay.
How much savings is enough?
On the qualifier path, your eligible assets, after credit percentages, must equal or exceed the whole loan. On the depletion path, you need qualified assets of at least the lesser of $1,000,000 or 1.25 times the loan, and never below $250,000 liquid when assets are your only income source.
Can I buy a rental with this?
Only on the asset depletion path, where investment property is allowed at up to 65% leverage on a purchase or rate-and-term refinance and 60% on a cash-out. Most pure rental purchases use a DSCR loan instead. Every figure here varies by lender and program — guidelines, property type, leverage, and credit profile all apply.
Next Steps
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 broker that places these loans through select lenders in its network, and the lender makes the final decision.
Lendmire’s asset-based mortgage in Michigan page presents the program for Michigan 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.
Investors who want the broader program framework can review how DSCR loans work.
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References
1. CFPB’s assessment of its ability-to-repay rule
3. Business Insider via Yahoo Finance
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 to Refinance a Mortgage After Retiring With No W-2 Income · How to Refinance a Colorado Mortgage After Retiring With No W-2 Income · How to Refinance a Tennessee Mortgage After Retiring With No W-2 Income
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.