The Quick Read: Yes, through select asset-based programs, if your eligible savings are large enough and well documented. The lender either counts your assets against the whole loan or turns them into a monthly qualifying income. Your paycheck is not the test. Your statements are.
- Path one, asset qualifier: your usable assets must equal or exceed the entire loan, and no employment or income is documented.
- Path two, asset depletion: usable assets are divided by 60 months to create qualifying income, which then runs through the debt-to-income test.
- Your assets stay yours. You do not sell them or pledge them as collateral. The property secures the loan.
- Your savings are documented. Statements, seasoning and a credit review are still part of the file.
- Figures here are ceilings and floors, available through select programs, subject to underwriting.
Picture a retiree in Asheville who sold a business, holds a large brokerage account and has almost no taxable income. A bank that reads traditional personal-income documentation sees a problem. A lender that reads statements sees a strong borrower. That gap is what this article is about. The program figures below do not change by state, so a North Carolina buyer works from the same numbers as anyone else.
Which Path Fits You?
Choose the asset qualifier path if your liquid assets can cover the whole loan. Choose asset depletion if your assets are large but not that large, and you want them converted into income. You are qualified on one path at a time, never a blend of both.
The qualifier path is the cleaner one. The lender adds up eligible assets after applying a credit percentage to each. If the total equals or exceeds the loan amount, you qualify on assets alone. No employment or income is documented.
The depletion path works differently. Eligible assets, after haircuts, are divided by 60 months. The result is a monthly income figure. That figure must carry the housing payment and your other debts through the debt-to-income test. Asset-derived income can also supplement documented income, up to a 45% debt-to-income ratio.
Here is a quick way to sort yourself:
- Assets can cover the loan outright: start with the qualifier path. It reaches loans up to $4,000,000.
- Assets are large but not loan-sized: the depletion path fits better. Loans run from $125,000 to $3,500,000.
- You are buying an investment property with no personal income documented: depletion is one route. A rent-based loan is the other, and that comes up below.
How the Two Paths Compare
The two paths differ in what they count, what they require and how much they lend. Everything below applies through select programs, subject to underwriting. The lender’s own calculation governs in every case.
| Factor | Asset qualifier | Asset depletion |
|---|---|---|
| How you qualify | Assets cover the full loan | Assets become monthly income |
| Income documented | None | Derived from assets |
| Loan amounts | Up to $4,000,000 | $125,000 to $3,500,000 |
| Credit | 600 minimum score | The lender’s matrix |
| Statements | Two months per account | 120 days old, plus one within 45 days |
| Seasoning | 60 days | Sale, inheritance, settlement funds excused |
On the depletion path, a first-time investor needs a 700 score. Housing history is typically 0x30x12, though one 30-day late in the last twelve months can be considered case by case. Multiple bankruptcies are not eligible. A housing event needs four years of seasoning on the depletion path.
Depletion also has minimum assets. Qualified assets must be at least the lesser of $1,000,000 or 1.25 times the loan balance. When depletion is your only income source, you also need at least $250,000 in liquid assets. If asset income only supplements documented income, the minimum-assets rule is waived.
Why Does “No Income” Still Work?
Lenders are not ignoring repayment ability. They are measuring it with a different yardstick. For a home you will live in, the federal ability-to-repay rule says a lender must make a reasonable, good-faith determination, based on verified and documented information, that you can repay. The CFPB’s rule text frames it that way. The rule does not say paychecks are the only acceptable proof. Assets count.
That is why an owner-occupied buyer with large savings can qualify. The lender documents the assets instead of the wages.
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. The OCC’s consumer-credit handbook lists the same carve-out for credit extended primarily for a business purpose. A rental loan is reviewed primarily on property-level rental income covering the payment, subject to lender guidelines. Lendmire’s complete DSCR loans guide covers that route in full.
The old truly undocumented loans are gone in their original form. What exists now is a different way of proving the same thing.
Which Assets Count, and for How Much?
Cash, brokerage accounts and retirement accounts all count, but at different percentages. Volatile assets get trimmed because their value can drop. The table shows the share of each balance that counts, by path.
| Asset | Qualifier path | Depletion path |
|---|---|---|
| Savings, money market | 100% | 100% (cash accounts) |
| Certificates of deposit | 100% | 100% |
| Brokerage or securities | 100% | 80% |
| 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% |
On the qualifier path, accounts combine. On the depletion path, several things do not qualify at all: 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 and pledged or borrowed funds are not published as eligible on either path. The documented route is converting them to a seasoned cash balance in a regulated account. The lender then reviews the source of those funds. Business accounts count only for your ownership share.
Worked Example: Both Paths With Real Numbers
These two examples are illustrative. They show the shape of the math, not an offer.
Qualifier path. Suppose you want an $800,000 loan. You hold $330,000 in brokerage accounts, which counts at 100%, or $330,000. You hold $300,000 in a 401(k) and you are under 59½, so it counts at 90%, or $270,000. You hold $200,000 in savings, which counts at 100%, or $200,000. Usable assets total $800,000. That matches the loan, so you qualify on assets alone, subject to underwriting.
Depletion path. Suppose 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%. Usable assets are $1,500,000. Divide by 60 months and you get $25,000 of monthly qualifying income. That income must then carry the housing payment and your other debts through the debt-to-income test.
Notice the difference. The qualifier path asks whether your assets cover the loan. The depletion path asks whether your assets, stretched over 60 months, can carry the payment. Other programs may divide over a different number of months, so a figure you see elsewhere may not match what is described here.
How Much Can You Borrow Against the Property?
Leverage depends on the path and on how you will use the home. These are ceilings through select programs, never offers.
| Path and property | Purchase | Refinance | Cash-out |
|---|---|---|---|
| Qualifier, residence or second home | Up to 80% | Up to 75% | Set by lender |
| Depletion, residence or second home | Up to 80% | 80% rate-and-term | Up to 60% |
| Depletion, investment property | Up to 65% | 65% rate-and-term | Up to 60% |
The qualifier path’s cash-out terms are set by the lender and are not published, so no figure belongs here. On the depletion path, cash-out proceeds never count as qualifying assets. Reserves on the qualifier path are not required at or below 75% loan-to-value. Above that, the lender sets them. The depletion path has no published reserve months.
The Double-Counting Trap
The same dollars cannot do two jobs. Money you use for the down payment and closing costs is not also available to qualify you. On the depletion path, usable assets are counted after the cash needed to close.
Say you hold a large portfolio and put a big share of it down. The balance that remains is what gets divided by 60. A bigger down payment means less qualifying income. A smaller down payment means more leverage and a higher loan balance to carry.
Plan the split before you apply. Run it both ways.
Most files that stall here do so because the borrower treated one pile of cash as both the down payment and the income engine. A better approach is to map every account to a single job before any application is submitted.
What Does Seasoning Mean for Your Statements?
Seasoning is how long money has sat in your account. Lenders want to see that funds are really yours, not a recent deposit from an unknown source. On the qualifier path, that means 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 your most recent statement within 45 days. Funds from the sale of a business, an inheritance or a legal settlement are excused from that seasoning.
“No income documentation” never becomes “no documentation.” Every qualifying asset is documented on both paths. A large, unexplained deposit lands you in a source-of-funds review. Moving money between your own accounts is fine, but keep a paper trail.
Is It Better to Pay Cash or Use One of These Loans?
It depends on what your money is doing. If your portfolio is invested and growing, borrowing against the property lets it stay invested. Selling securities to pay cash may create a taxable event. Tax treatment varies; consult a qualified professional.
The trade-offs are real. Asset-based loans typically come with a larger down payment than a standard loan, and fewer lenders offer them. The pricing usually reflects that. Your assets also stay tied up in the file until the loan is placed. Weigh those costs against what a forced sale of your holdings might cost you.
| Option | Best when | Trade-off |
|---|---|---|
| Pay cash | You want zero debt | Capital is locked in the home |
| Asset qualifier | Assets cover the loan | Needs very large balances |
| Asset depletion | Assets are large, income is thin | Haircuts shrink usable assets |
| Bank statement loan | You have income on deposits | Needs deposit history |
| DSCR loan | The home is a rental | Investment property only |
| Conventional loan | You have steady documented income | Built around paychecks |
The bank statement program is for borrowers who document income through deposits. Lendmire’s piece How to Get a Mortgage in North Carolina When You’re Self-Employed covers that audience. Conventional loans, by contrast, are built around documented income. Large banks and retail lenders generally apply that standard.
Special Situations
Retirees. A retiree under 59½ sees retirement balances count at 90% on the qualifier path and 70% on the depletion path. At 59½ or older, the qualifier path counts them at 100%. The depletion path stays at 70% at any age.
Business sellers and inheritance recipients. Funds from a sale of business, inheritance or legal settlement are excused from depletion-path seasoning. You still need the statements and the source paperwork.
Early-retired professionals. Many have large portfolios and no paycheck. Either path may fit. Depletion tends to suit those whose assets are large but not loan-sized.
Investment property buyers. Depletion is available on investment property, at 65% on a purchase and 60% on a cash-out. If the property rents well, a DSCR loan may leave your savings untouched. Sub-1.00 coverage programs exist through select lenders in the network, though leverage and terms adjust. A DSCR loan is only for investment property, never a home you will live in.
Down payment assistance. State and local first-time-buyer programs generally carry income limits. They are rarely the path for someone with big savings and thin income.
Which Documents and Steps Prepare You?
Start with your statements, not the application. Gather two months for each qualifying account. For depletion, make sure the statements are old enough: 120 days at application plus a recent one within 45 days. Then work through this checklist:
1. List every account and its type.
2. Apply the credit percentages from the tables above.
3. Subtract the cash you will use to close.
4. Decide which path fits, since you cannot blend them.
5. Pull your credit and check it against the path’s floor or matrix.
6. Confirm the property type and leverage you want.
7. Document the source of any recent large deposit.
Lenders may also review the appraisal and the property. The assets are not collateral and are not sold. The home secures the loan.
Frequently Asked Questions
Do I have to sell my investments to qualify?
No. Assets stay in your accounts, and the property is the collateral. The lender counts them toward the loan or converts them to qualifying income. You do not liquidate or pledge them, subject to underwriting.
Can I use this for a second home or investment property?
Yes, on both. Residences and second homes are eligible on either path. Investment property is eligible on the depletion path, at up to 65% on a purchase and up to 60% on a cash-out refinance. Qualifier-path files are for principal residences and second homes.
What credit score do I need?
The qualifier path publishes a 600 floor. The depletion path follows the lender’s score and loan-amount matrix. A first-time investor on the depletion path needs a 700 score. Credit is still reviewed on every file, and approval is never assured.
Does retirement money count the same as cash?
No. On the qualifier path, a 401(k) or IRA counts at 90% under 59½ and 100% at 59½ or older. On the depletion path, retirement accounts count at 70% at any age. Cash and CDs count at 100% on both.
Can the same savings be my down payment and my income?
Generally no. Dollars used for the down payment or closing costs are subtracted before the lender counts usable assets. Plan which funds do which job before you apply.
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 broker, and its consumer mortgage lending is licensed in 16 states, North Carolina among them. Programs are placed through select lenders, subject to underwriting. Reach the team at 828-256-2183.
Lendmire’s asset-based mortgage in North Carolina page presents the program for North Carolina 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
2. OCC Comptroller’s Handbook, Truth in Lending Act
This article is part of Lendmire’s asset-based mortgage program — full qualification details, guidelines, and scenarios live on the program page.
Related reading: Savings Account vs Brokerage Account: Which Counts More on an Asset-Based Mortgage? · How an Asset Depletion Mortgage Works · How Asset Depletion Income Is Calculated From Your Portfolio
Guides: Asset-Based Mortgage in North Carolina
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
- Mortgage Loan Originator · NMLS# 1129696 · Verify on NMLS Consumer Access
- North Carolina Real Estate Broker · License# 343312 · Verify on NCREC
- North Carolina Insurance Producer · License# 19053198 · Property, Casualty, Life, Health · Verify on NAIC SBS
- Lendmire LLC · Firm NMLS# 2371349 · Verify firm licensure
Important disclosures. Lendmire (NMLS# 2371349) is a licensed mortgage brokerage. Lendmire is not a direct lender, depository institution, or financial advisor. All loan inquiries are subject to lender underwriting; this article does not constitute a commitment to lend. Rates, terms, and program guidelines are subject to change without notice and vary by borrower profile, property type, and state. Information in this article is general in nature and is not financial, legal, or tax advice. Equal Housing Opportunity. NMLS Consumer Access: nmlsconsumeraccess.org.