The Quick Read: Usually, yes, when the condo building passes the lender’s project review and you qualify on one of two asset paths, either assets that cover the whole loan or assets converted into monthly income, for a principal residence or second home, or for an investment property on the depletion path only. Two separate approvals apply. One is for you, and one is for the building. Passing the first never waives the second.
- Qualifier path: eligible assets must equal or exceed the entire loan, and no employment or income is documented.
- Depletion path: usable assets divided by 60 months become monthly qualifying income, which then runs through the debt-to-income test.
- The building matters as much as you do. A strong borrower can still be turned down because of a weak association.
- Pennsylvania adds paperwork, not a ban. State law shapes the condo documents and the association’s lien rights. It does not change the program figures.
- A pure rental condo often fits DSCR better. That is a different loan, and a later section covers it.
Every figure here is a ceiling or a floor on select programs, subject to underwriting. None of it is an offer or a commitment to lend.
What Is an Asset-Based Mortgage, Exactly?
An asset-based mortgage lets you qualify on what you own instead of what you earn. It is a consumer home loan for people with big balances and thin documented income. Think retirees, someone who just sold a business, an heir, a settlement recipient, or an early retiree living off a portfolio.
Don’t confuse it with business asset-based lending. That is a loan to a company, secured by inventory or receivables. This is a mortgage on a home.
The assets are not pledged or handed over. They are documented, and the lender reviews them. The property is still the collateral. “No income documentation” never means “no documentation.” You will still send statements, and the lender will still review credit and the property. The difference is no traditional personal-income documentation, pay stubs or employment verification.
Lendmire is a mortgage broker. It places these loans through select lenders in its network, and consumer mortgage lending is licensed in 16 states, Pennsylvania among them.
Which Path Fits You: Assets That Cover the Loan, or Assets That Become Income?
Pick the path first, because the rules differ. You qualify on one path at a time, never a blend of both.
The asset qualifier path asks one question: do your eligible assets, after the credit percentages below, equal or exceed the whole loan? If yes, you qualify on assets alone. No employment or income is documented. Loans run up to $4,000,000, and the credit score floor is 600, subject to underwriting.
The asset depletion path turns assets into income. The lender takes your usable assets, divides by 60 months, and treats the result as monthly income. That income must carry the full housing payment and your other debts through the debt-to-income test. Loans run from $125,000 to $3,500,000. Credit follows the lender’s score and loan-amount matrix.
Here is the leverage on each path, through select programs.
| Path | Occupancy | Purchase | Refinance |
|---|---|---|---|
| Qualifier | Principal or second home | Up to 80% | Up to 75% |
| Depletion | Principal or second home | Up to 80% | 80% rate-and-term, 60% cash-out |
| Depletion | Investment property | Up to 65% | 65% rate-and-term, 60% cash-out |
The qualifier path does not publish a cash-out figure. The lender sets that. Investment property is only on the table on the depletion path.
How the Math Works on Each Path
The qualifier path counts a share of each balance. Brokerage accounts, certificates of deposit, money market and savings all count at 100%. A 401(k) or IRA counts at 90% if you are under age 59½ and 100% once you reach 59½. Accounts combine.
| Qualifier path: asset | Share that counts |
|---|---|
| Brokerage accounts | 100% |
| CDs, money market, savings | 100% |
| 401(k) or IRA, under 59½ | 90% |
| 401(k) or IRA, 59½ or older | 100% |
Take a worked example. It is illustrative only, and the lender’s own calculation governs.
- Loan amount: $800,000.
- Brokerage accounts: $330,000 at 100% counts $330,000.
- 401(k), borrower under 59½: $300,000 at 90% counts $270,000.
- Savings: $200,000 at 100% counts $200,000.
- Total usable assets: $800,000, which equals the loan, so this file is reviewed on assets alone, subject to underwriting.
The depletion path trims more. It also treats retirement money more strictly.
| Depletion path: asset | Share that counts |
|---|---|
| Cash accounts and CDs | 100% |
| Securities | 80% |
| Retirement accounts, any age | 70% |
| Real-estate equity | 60% |
Now the depletion example, again illustrative.
- Securities: $1,500,000 at 80% counts $1,200,000.
- Cash: $300,000 at 100% counts $300,000.
- Usable assets: $1,500,000.
- Divided by 60 months: $25,000 of monthly qualifying income.
That income then has to carry the housing payment and other debts through the debt-to-income test. On a condo, the housing payment includes association dues. A building with high dues eats more of that income than a similar house would.
Some assets don’t count on either path. Privately held stock is not eligible on either path, so a founder’s route is documented liquid assets such as seasoned sale proceeds. Custodial accounts, deferred compensation, escrow accounts, foreign funds, cash on hand, stock options and unvested restricted stock are out on the depletion path. Cryptocurrency, precious metals, collectibles and borrowed or pledged funds are not published as eligible on either path. The documented route is to convert them to cash in a regulated account and let the lender review the source. Cash-out proceeds never count as qualifying assets on the depletion path.
Two Gates: You and the Building
A condo loan has two separate reviews. People mix them up, and that is how deals stall.
| Gate | What gets reviewed | What passes it |
|---|---|---|
| Borrower | Assets, credit, seasoning | The path’s rules above |
| Project | The association and building | The lender’s condo review |
The borrower gate is what the rest of this article describes. The project gate is where a condo can fail even when you are strong.
The project review looks at the association’s finances, reserves, insurance, pending litigation, delinquent dues, the share of owner-occupied versus investor-owned units, and any commercial space. Scotsman Guide describes a condo report covering outstanding litigation, reserve adequacy and the owner-occupied share.
| Project factor | Why the lender cares |
|---|---|
| Owner-occupied share | Investor-heavy buildings carry more risk |
| One owner holding many units | One default can hurt the association |
| Reserves | Thin reserves invite special assessments |
| Litigation | Legal claims can threaten the budget and insurance |
| Delinquent dues | Unpaid dues starve the building |
| Commercial space | Retail floors change the building’s risk profile |
What Warrantable Means, and Why It Isn’t a Dead End
Warrantable means the building passes the agency condo tests. Non-warrantable means it fails at least one. That is a loan classification. It does not mean the unit can’t be financed.
For contrast, those agency tests are agency rules, not this program’s. Scotsman Guide lists agency limits such as no timeshare communities, at least half the units owner-occupied, and caps on single-owner and commercial share. Many Pennsylvania buildings miss one of them. Investor-heavy conversions and mixed-use towers are common examples.
Here is the honest part for asset-based borrowers. Passing the asset test does not make a failing building eligible. Whether a particular non-warrantable project fits depends on the lender and the program. Ask before you sign a purchase contract.
Harder blocks exist too. Condo-hotel features, mandatory rental pools and timeshare structures are tougher to place than an ordinary non-warrantable issue, in the experience of this brokerage.
What Changes in Pennsylvania?
Pennsylvania has no special rule for asset-based loans. The program figures are the same as anywhere. State law shapes the documents you get and the association’s lien rights.
The resale certificate. When you buy a unit from an owner, Pennsylvania law has the association supply a resale certificate. Per a FindLaw copy of the statute, the association must furnish it within ten days after the owner requests it. That package is what a lender’s condo questionnaire draws on. It typically covers budget, financials, reserves, planned capital projects, litigation and insurance. Read the whole package. It is your best look inside the building.
Dues and liens. Delinquent dues are a real lender worry. In Pennsylvania the association’s lien is generally behind a first mortgage recorded earlier. The exception is a limited priority for six months of assessments, as Nolo explains. The state’s condominium act also limits how long a lien can sit without enforcement, so check the statute text for the current window. A lender sees limited but real exposure, so a building with piles of unpaid dues gets a harder look.
Rental rules. The declaration and bylaws, which come with the certificate, may cap rentals or ban short-term rentals. 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.
What Pennsylvania stock looks like. Expect urban conversions, high-rise towers, townhouse-style condo communities, and age-restricted or second-home communities. Be careful with labels. A townhouse you own outright is not a condo, and a planned community is not a condo either. The lender reviews each type differently. Co-ops are rare in Pennsylvania and are a separate animal.
Does Occupancy Change the Answer?
Yes. Occupancy changes both the path and the leverage.
On a principal residence or second home, either path is available. A condo that will be your second home gets the same project review as any other. The building’s rental policy and reserves matter more if it sits in a vacation or resort community.
On an investment condo, only the depletion path applies, at up to 65% on a purchase and 60% on a cash-out. A first-time investor on that path needs a 700 credit score, subject to underwriting. The exact numbers vary by lender and program and follow a full review of property, leverage, and credit.
A pure rental condo often belongs in a different loan. 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 loan is reviewed primarily on property-level rental income covering the payment, subject to lender guidelines.
Dues change the DSCR number, and this matters. Association dues sit in the payment. Two rentals with identical rent will not score the same if one is a condo with heavy dues. Expect the condo’s coverage to run lower. Programs below 1.00 coverage are available through select lenders in the network, though leverage and terms adjust.
Scotsman Guide notes that investors adding rental condos often must turn to DSCR loans for non-warrantable units. It also notes that the agency cap of ten financed properties does not apply to DSCR loans. Individual lenders still set their own property-count and reserve rules.
One more investor point. Owning several units in one building raises that building’s investor concentration, which can affect the next lender’s review of the same project.
Before You Make an Offer: The Right Order
Sequence protects you. Most condo disappointments come from doing these out of order.
1. Pick your path. Do your assets cover the loan outright, or do they need to become income? Run the usable-asset math with the percentages above.
2. Check seasoning. The qualifier path wants 60 days of seasoning and two months of statements for each qualifying account. The depletion path wants statements at least 120 days old at application plus one within 45 days. Sale-of-business, inheritance and legal-settlement funds are excused from that seasoning on the depletion path.
3. Ask about the building early. Before you fall in love with a unit, ask the listing agent for the association’s budget, reserve information, insurance summary and litigation disclosures. Request the resale certificate once you have a contract.
4. Ask your broker to review the project. Lendmire’s team can compare how lenders in the network treat that building.
5. Write the contract with room to exit. Keep your financing and document-review contingencies. A condo that fails the project review should not cost you your deposit.
If the Building Doesn’t Pass
You still have choices. Roughly in order:
- Ask what failed. A single curable issue, such as a paperwork gap, differs from a structural problem like heavy litigation.
- Try another lender. Project standards differ across programs. A building one lender rejects may sit differently with another.
- Change the structure. A lower loan amount or different occupancy can change what is possible.
- Switch the program. For a pure rental, DSCR may fit the building better than an asset-based loan.
- Walk away. A great unit in a troubled building is still a troubled building.
Documents to Gather
Keep two piles.
Your documents:
- Statements for every qualifying account, meeting the seasoning rules above.
- A source explanation for any large deposit.
- Identification and credit authorization.
- Proof of how you will hold any assets that need converting, such as crypto sold into a regulated account.
The condo documents:
- The resale certificate and association budget.
- The declaration, bylaws and rental rules.
- The master insurance summary.
- Litigation disclosures and the lender’s condo questionnaire.
- An appraisal for the unit. Even with lighter income paperwork, an appraisal is still needed to set value.
Credit is reviewed on both paths. Housing history is held to 0x30x12 on the depletion path, and a single 30-day late in the last twelve months is considered case by case. Multiple bankruptcies are not eligible. A housing event needs four years of seasoning on the depletion path.
Business accounts beyond your ownership share are not published as eligible.
Key Terms Defined
Asset qualifier path: the route where eligible assets, after the credit percentages, must equal or exceed the entire loan.
Asset depletion path: the route where usable assets divided by 60 months become monthly qualifying income.
Warrantable condo: a building that passes the agency condo tests.
Project review: the lender’s check of the association, covering finances, reserves, insurance, litigation and ownership mix.
Seasoning: how long funds must sit in your account before a lender counts them.
Haircut: the share of a balance a lender does not count, such as the 20% trimmed from securities on the depletion path.
Resale certificate: the Pennsylvania document package an association supplies when a unit is resold.
Frequently Asked Questions
Can I use retirement funds to qualify?
Yes, on both paths, though they count differently. On the qualifier path, a 401(k) or IRA counts at 90% under age 59½ and 100% at 59½ or older. On the depletion path, retirement accounts count at 70% at any age. You document the balance with statements. You do not have to liquidate the account, subject to underwriting.
Does a non-warrantable condo disqualify me?
Not automatically, but it narrows your options. Non-warrantable is an agency classification, not a ban. Whether a particular building fits depends on the lender and the program, so have the project reviewed before you commit to a contract.
Can I refinance a condo with an asset-based mortgage?
Yes, through select programs. On the qualifier path, leverage tops out at 75% on a refinance of a principal residence or second home. On the depletion path, a rate-and-term refinance reaches 80% on a principal residence or second home and 65% on an investment property. A cash-out refinance reaches 60% on either. The building still goes through project review.
Does this work for a condo I plan to rent out?
Only on the depletion path, at up to 65% on a purchase and 60% on a cash-out for an investment property. A rental condo can also be a DSCR file, which looks at the rent against the full payment, association dues included. Many investors compare both.
Can I add other income to my assets?
On the depletion path, yes. Asset-derived income can supplement documented income up to a 45% debt-to-income ratio. When it supplements, the minimum-assets rule is waived. The qualifier path documents no income at all.
If You’re Qualifying on Assets, Not Income
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. Bring the building details too, since the project review often decides the outcome.
Tax treatment varies; consult a qualified professional before relying on any deduction.
Lendmire’s asset-based mortgage in Pennsylvania page presents the program for Pennsylvania 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. Scotsman Guide – Get in the Game
2. Scotsman Guide – To the Rescue
4. Nolo – Pennsylvania HOA and Condo Foreclosures
5. Scotsman Guide – Invest in Your Future
This article is part of Lendmire’s asset-based mortgage program — full qualification details, guidelines, and scenarios live on the program page.
Related reading: Can You Get a Pennsylvania Asset-Based Mortgage With No Job? · How Long Do Sale Proceeds Need to Season Before a Pennsylvania Asset-Based Purchase? · Can a Pennsylvania Divorce Settlement Count as Assets for a Mortgage?
Guides: Asset-Based Mortgage in Pennsylvania
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
- Mortgage Loan Originator · NMLS# 1129696 · Verify on NMLS Consumer Access
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- 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.