The Quick Read: Yes, in most cases: an asset-based mortgage can finance a Michigan condo as a primary home or second home, and as an investment property on the asset depletion path, but the lender reviews the building as well as your balances, so a weak association can stop an otherwise strong file.
- On the asset qualifier path, your eligible assets must cover the entire loan, and no employment or income is documented.
- On the asset depletion path, usable assets are divided by 60 months to create a qualifying income.
- Investment condos are eligible only on the depletion path, at lower leverage than a primary home or second home.
- The condo association’s budget, insurance, litigation and rental rules get reviewed alongside your statements.
- All figures are through select programs, subject to underwriting, and the lender’s own calculation governs.
How an Asset-Based Mortgage Works on a Michigan Condo
Your balances answer one question and the building answers another. The assets show you can repay the loan. The condo project shows the collateral is sound. A strong portfolio does not rescue a troubled association.
Across the wholesale network Lendmire works with, the borrower side comes in two forms. You are qualified on one path at a time, never a blend.
| Factor | Asset qualifier path | Asset depletion path |
|---|---|---|
| How you qualify | Assets cover the whole loan | Assets become monthly income |
| Income documented | None | Derived from assets |
| Occupancy | Primary home, second home | Primary, second, investment |
| Loan amounts | Up to $4,000,000 | $125,000 to $3,500,000 |
| Statements | 60 days seasoning, two months each | Oldest 120 days, one within 45 days |
Lendmire is a mortgage broker, not a lender. It arranges these consumer mortgages through select lenders, and its consumer lending is licensed in 16 states, Michigan among them. The program figures do not change by state.
Which Path Fits Your Condo?
The path follows your balances and the way you will use the unit. A retiree buying a lake-country second home with large brokerage and savings accounts often fits the qualifier path. A household living on a portfolio that wants a condo as a rental usually needs the depletion path.
Asset qualifier path. Eligible assets, after the credit percentages, must equal or exceed the entire loan. Leverage reaches 80% on a purchase and 75% on a refinance, for a principal residence or second home. Cash-out terms on this path are set by the lender and are not published, so ask before you plan around them. Credit starts at a 600 minimum score.
Asset depletion path. Usable assets divided by 60 months become your monthly qualifying income. That income must carry the full housing payment and your other debts through the debt-to-income test. Leverage on a principal residence or second home reaches 80% on a purchase or rate-and-term refinance, and 60% on a cash-out refinance. An investment property reaches 65% on a purchase or rate-and-term refinance, and 60% on a cash-out. Credit follows the lender’s matrix, and a first-time investor needs a 700 score.
Condo projects can add limits of their own. Some lenders set tighter leverage for condos than the headline ceilings, so treat those ceilings as the top, not the offer.
How Your Assets Get Counted
Not every dollar counts at face value. The percentages differ by path, so keep the two lists apart.
On the qualifier path, brokerage accounts, certificates of deposit, money market and savings count at 100%. Retirement accounts count at 90% if you are under 59½ and 100% at 59½ or older.
On the depletion path, cash and certificates of deposit count at 100%, securities at 80%, private stock at 75%, retirement accounts at 70% at any age, and real-estate equity at 60%. Custodial accounts, deferred compensation, escrow accounts, foreign funds, cash on hand, stock options and non-vested restricted stock units are not eligible. Cash-out proceeds never count as qualifying assets.
Here is the depletion math, illustrative only. Take $1,500,000 in securities (80% counts, so $1,200,000) plus $300,000 in cash (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 condo’s housing payment and your other debts through the debt-to-income test.
Association dues belong in that housing payment, which matters more on the depletion path than the qualifier path. Dues are one reason a condo can stretch the income test further than a similar house.
Cryptocurrency, precious metals, collectibles and 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, with the source reviewed by the lender.
The assets are documented on both paths.
What Do Lenders Check About the Condo Building?
They want to know the association is financially healthy and the project is stable. The lender typically asks the association to complete a condo questionnaire and supply project documents. Common items include:
- the declaration, bylaws and amendments
- the budget, financials and reserves
- master insurance evidence
- delinquency and special-assessment details
- pending litigation
- how many units are owner-occupied versus rented
- the rental rules
Michigan law helps you gather the paperwork. Associations are required to keep the master deed and amendments available to co-owners, prospective purchasers and prospective mortgagees. Request the documents early, because the association completes the questionnaire on its own schedule.
Warrantable vs. Non-Warrantable: What It Means for You
A warrantable condo project meets the standards of the large agencies, Fannie Mae and Freddie Mac, so it can be financed with a conventional loan. A non-warrantable project does not meet those standards. Common triggers are heavy investor ownership, pending litigation and weak reserves.
Non-warrantable is a label, not a ban. Those projects generally need non-agency money, and a number of programs in the network will review them. Expect extra documentation and often tighter terms. A building with a mandatory rental pool or hotel-style operation is a harder case, and many programs decline it.
One more hurdle applies to new projects. Many programs will not lend until the developer hands control to the owners and the units are complete.
Michigan Condo Rules That Affect Your Plans
Michigan is the hook here, but the same checks apply anywhere. They matter most for second homes you may rent out and for investment condos.
Rental restrictions. The LARA Condominium Buyer’s Handbook explains that bylaws can restrict things like pets and renting. Read the documents for rental caps, minimum lease terms, an approval requirement and any short-term-rental ban. Short-term rental rules can vary by city, county, HOA, and property type, so confirm local rules before relying on projected rental income.
Leasing notice. Under Michigan’s leasing section, an owner must disclose a lease to the association in writing before leasing. A Michigan law-firm summary confirms the 10-day notice and the requirement to supply a copy of the lease. This applies after closing, not at qualification.
Unpaid dues and liens. An association’s lien generally ranks behind tax liens and a first mortgage recorded earlier. A Michigan law-firm guide notes that Michigan gives associations no super-lien that jumps ahead of first mortgages. Lenders still care about delinquencies, because unpaid dues can put a unit at risk even when the mortgage is current.
Changing rules. Rental limits can change. Limiting or banning rentals usually requires amending the master deed or bylaws, often with an owner vote, so today’s permission is not permanent.
What Are Your Odds, and When Should You Look Elsewhere?
Your odds are best when the building is established, financially healthy and open to your use. Your odds drop when the association has a thin budget, active litigation or restrictive rental rules. A larger balance sheet does not offset those.
Credit matters on both paths. The qualifier path has a 600 minimum score. Housing history is 0x30x12, though 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.
The depletion path also has asset minimums. You need qualified assets of at least the lesser of $1,000,000 or 1.25 times the loan balance. If asset depletion is your only income source, you need no less than $250,000 liquid. Asset-derived income can also supplement documented income up to a 45% debt-to-income ratio, and when it does, the minimum-assets rule is waived.
Look elsewhere in a few cases:
- You document income with deposits, such as a self-employed borrower. A bank statement program fits better.
- The condo is a pure rental and you want the property’s rent to carry the loan. Business-purpose rental financing is DSCR. 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 complete DSCR loans guide walks through that route.
- Your income is strong and well documented. A standard income-based loan may be simpler.
Reserves are light on the qualifier path. None are required at or below 75% loan-to-value, and above that the lender sets them. The depletion path publishes no reserve months. Tax treatment varies; consult a qualified professional.
Key Terms Defined
Asset qualifier: a path where eligible assets cover the entire loan and no income is documented.
Asset depletion: a path that divides usable assets by 60 months to create qualifying income.
Warrantable condo: a project meeting Fannie Mae and Freddie Mac standards.
Non-warrantable condo: a project that misses those standards and generally needs non-agency financing.
Condo questionnaire: a form the association completes about its finances, insurance, litigation and rental rules.
Seasoning: how long funds must sit in your accounts before they count.
Debt-to-income: the share of qualifying income that goes to housing and other debts.
Frequently Asked Questions
Can I use an asset-based mortgage on a Michigan condo I plan to rent out?
Yes, but only on the asset depletion path. An investment property reaches 65% loan-to-value on a purchase or rate-and-term refinance and 60% on a cash-out, subject to underwriting. Check the association’s rental rules first, because a cap or ban can end the plan before the loan matters.
Does a non-warrantable Michigan condo disqualify me?
Not automatically. Non-warrantable projects generally need non-agency financing, and a number of programs in the network review them. Expect more documentation and often tighter terms, and each lender decides.
Do condo dues affect an asset-based approval?
They do, mostly on the depletion path. Dues are part of the housing payment that your asset-derived income must carry through the debt-to-income test. A high-dues building can stretch that test even when your assets are large.
Are my accounts liquidated or pledged?
No. Your accounts stay in place and are documented. The qualifier path wants 60 days of seasoning and two months of statements for each account.
Can retirement accounts count toward the loan?
Yes. On the qualifier path, retirement balances count at 90% under age 59½ and 100% at 59½ or older. On the depletion path, they count at 70% at any age.
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. Call 828-256-2183 or request a quote through the site.
Lendmire’s asset-based mortgage in Michigan page presents the program for Michigan 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. Michigan LARA – Condominium Buyer’s Handbook
2. Maglaw – Leasing Restrictions in Condominiums
3. Rickel Law – Michigan HOA and Condo Assessment Collections
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.