The Quick Read: Yes, in most cases, an Indiana condo can be financed with an asset-based mortgage, provided your eligible assets pass the program’s test and the condo building passes the lender’s project review, and the path you use depends on whether the unit is your home, a second home, or a rental. Two separate gates decide the outcome: you and the building. Pass one and fail the other, and the file stops.
- Assets cover the loan: on the asset qualifier path, eligible assets must equal or exceed the entire loan, and no employment or income is documented.
- Assets become income: on the asset depletion path, usable assets divided by 60 months become qualifying income, and that income carries the full housing payment, HOA dues included.
- The building gets its own review: a condo with litigation, thin reserves or heavy investor ownership can fail even when your assets are strong.
- Rentals follow a tighter path: an Indiana condo bought as a rental runs only on the depletion path, at lower leverage. Many investors use a rent-based DSCR loan instead.
All figures here are typical ranges through select programs in Lendmire’s wholesale network, subject to underwriting. They are ceilings and floors, never offers.
Key Terms Defined
Asset qualifier path: the program route where your eligible assets, after the credit percentages, must cover the whole loan amount.
Asset depletion path: the route where eligible assets, after haircuts, are divided by 60 months to create a monthly qualifying income.
Haircut: the share of an account’s balance a lender refuses to count. A 70% credit means a 30% haircut.
Seasoning: the length of time money has sat in your accounts, proven by statements.
Warrantable condo: a building that meets Fannie Mae and Freddie Mac project standards. A non-warrantable condo fails one or more of them.
Project review: the lender’s check of the association’s finances, insurance, litigation and ownership mix.
HOA dues: the monthly association charge, which counts as part of your housing cost.
DSCR: debt service coverage ratio, meaning a rental’s income divided by its full payment. It qualifies a rental loan on the property rather than on you.
Which Path Fits Your Condo?
Pick the path by what you own and how you will use the unit. The qualifier path suits borrowers whose balances are large enough to cover the entire loan. The depletion path suits borrowers who would rather turn a portfolio into income. A borrower is qualified on one path at a time, never a blend.
Here is how the leverage ceilings line up across the Indiana condo uses most people ask about:
| Condo use | Path | Purchase | Refinance |
|---|---|---|---|
| Primary or second home | Qualifier | Up to 80% | Up to 75% |
| Primary or second home | Depletion | Up to 80% | 80% rate-and-term, 60% cash-out |
| Investment property | Depletion | Up to 65% | 65% rate-and-term, 60% cash-out |
| Investment property | Qualifier | Not published | Not published |
Loans run up to $4,000,000 on the qualifier path and from $125,000 to $3,500,000 on the depletion path. On the depletion path, cash-out proceeds never count as qualifying assets. Whether cash-out is allowed on the qualifier path is a lender decision that is not published, so plan around the figures above.
This is a consumer program, so it fits a cash-heavy, income-light borrower. Think of a retiree living off a portfolio, someone who sold a business, or a household that received an inheritance or settlement. Your balances are large and your documented income is not.
How Your Assets Count
Not every dollar counts at face value. On the qualifier path, brokerage accounts, certificates of deposit, money market and savings count at 100%. A 401(k) or IRA counts at 90% if you are under 59½ and 100% at 59½ or older. Accounts combine.
Picture an $800,000 loan on an Indiana condo. You hold $330,000 in brokerage accounts (100% counts, so $330,000), $300,000 in a 401(k) under 59½ (90% counts, so $270,000) and $200,000 in savings (100% counts, so $200,000). That adds up to $800,000 of usable assets. The loan is reviewed on assets alone, subject to underwriting, and the lender’s own calculation governs.
The depletion path uses different percentages. Cash and CDs 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 unvested restricted stock are not eligible.
Now run the depletion example. Say you hold $1,500,000 in securities (80% counts, so $1,200,000) plus $300,000 in cash (100% counts, so $300,000). That is $1,500,000 of usable assets. 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.
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, with the source reviewed by the lender.
Credit, Seasoning and Minimums
The qualifier path has a published credit floor of 600. The depletion path follows the lender’s score and loan-amount matrix. A first-time investor on the depletion path needs 700. Housing history is 0x30x12, though one 30-day late in the last twelve months is considered case by case. A housing event needs 4 years of seasoning on the depletion path, and multiple bankruptcies are not eligible.
Asset documentation is real on both paths. Skipping income documents never means skipping documents. On the qualifier path, expect 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 a recent one within 45 days. Funds from a business sale, inheritance or legal settlement are excused from that seasoning.
The depletion path has asset minimums too: the lesser of $1,000,000 or 1.25 times the loan balance. It also never goes below $250,000 liquid when asset depletion is your only income source. If asset income only supplements documented income, it can run up to a 45% debt-to-income ratio, and the minimum-assets rule is waived. Reserves are not required on the qualifier path at or below 75% loan-to-value. Above that, the lender sets them.
Why the Condo Building Gets a Second Review
Your assets can be perfect and the file can still stall, because the lender also underwrites the building. The project review looks at the association’s finances, reserve funding, insurance, pending litigation and the split between owner-occupied and rented units. Scotsman Guide describes the same review items in its coverage of investor loans on condos.
This is where the word warrantable comes in. Warrantable is a Fannie Mae and Freddie Mac standard. Asset-based loans are placed with select lenders, each with its own condo rules, so a non-warrantable building is not automatically dead. It is reviewed lender by lender, and it can mean lower leverage, different pricing or an outright decline.
Common triggers for non-warrantable status include these:
- A high share of investor-owned units.
- Pending litigation against the association.
- Thin reserves or deferred maintenance.
- Commercial space inside the building.
- Hotel-style rental operations (condotels).
Across a wholesale network, the pattern is consistent. Strong borrowers lose condo files over building problems more often than over their own assets. The pre-offer question that matters most is whether the project can be approved, not whether you can.
Appraisals add one more layer. A condo unit is valued on an individual-unit report, and Fannie Mae publishes the standard version as Form 1073, the Individual Condominium Unit Appraisal Report.
What Do HOA Dues Do to Your Numbers?
Dues raise your housing cost, and a higher housing cost raises the bar. On the depletion path, the derived monthly income must carry the full housing payment, and HOA dues are part of it. A condo with high dues needs more usable assets to reach the same debt-to-income result as a house with no association.
On the qualifier path, no income is documented and no debt-to-income test runs. The review rests on your assets covering the loan. Dues still matter to the lender’s overall ability-to-repay view, so do not treat them as invisible.
Ask the association for the dues schedule and any planned special assessments before you make an offer. A building with low dues today and a major roof project coming is a different deal than the listing suggests.
Indiana Condo Checks Before You Go Under Contract
Nothing in Indiana changes the program figures above. Indiana rules shape the documents you review and the exposure you take on. Four checks are worth making:
1. Request a statement of unpaid assessments. Indiana’s condominium act, as compiled by CAI Indiana, entitles a buyer to a statement of the seller’s unpaid assessments from the association. Buyers are not liable beyond what the statement shows.
2. Understand lien priority. The same act treats unpaid condo assessments as a lien on the unit. Statute text can change, so check the current version. A lender still cares about delinquent dues in the building, because widespread unpaid dues starve the association’s budget.
3. Read the leasing rules in the declaration and bylaws. Nolo’s condo property management guide for landlords lists common limits: rental caps, minimum lease terms and board screening of tenants. It also notes that a cap can leave an owner on a waitlist for years.
4. Know what Indiana’s recent rental law does and does not change. Recording Law reports that HEA 1210 bars cities and counties from capping rental density and limits HOA rental-restriction votes to owners who live in their homes. HOAs can still restrict rentals. Condo leasing rules come from the declaration, and the law does not erase them. Confirm the details with an Indiana attorney.
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.
Buying the Condo as a Rental?
An Indiana condo you plan to rent is a different animal. Within this consumer program, investment property runs only on the depletion path, at 65% on a purchase or rate-and-term refinance and 60% on a cash-out. Those ceilings are lower than the primary-residence figures for a reason: lenders price rental risk differently.
For many investors, the better fit is a DSCR 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. A DSCR loan is reviewed primarily on property-level rental income covering the payment, subject to lender guidelines. HOA dues sit in that payment, so they cut the ratio directly.
Scotsman Guide notes that DSCR products are geared to warrantable and non-warrantable condos alike, and that investors often turn to them for non-warrantable units. Select lenders in the network will review coverage below 1.00, but leverage and terms adjust when they do. For the full picture, see Lendmire’s complete DSCR loans guide.
Which route wins? It is close to a toss-up for a borrower with both a big portfolio and a rental that cash flows well. The asset route avoids rent math entirely but caps leverage at 65% on a purchase. The DSCR route leans on the rent and may allow different leverage, but a high-dues condo can squeeze the ratio. Running both side by side on the same unit is the honest way to decide. Each figure is subject to lender guidelines and a complete review of property type, leverage, and credit.
Your Pre-Offer Checklist
Gather these before you write an offer, in this order:
- Statements for every qualifying account, in full and unaltered, with seasoning confirmed against the path you plan to use.
- A paper trail for large deposits. Money that moved recently needs a documented source.
- The association’s budget, reserve study and insurance certificate.
- The declaration, bylaws and rental policy.
- Litigation disclosures and the percentage of units that are rented.
- The dues schedule and any pending special assessments.
- The statement of unpaid assessments from the seller’s side.
Hand the building documents to a broker early. A project problem found before you are under contract costs nothing. The same problem found late can cost the deal.
When to Look Elsewhere
This program is not for everyone. If your documented income is strong and your credit is solid, a conventional loan may fit better, and it will be judged on its own rules. If you document income with deposits, such as a business owner whose traditional personal-income documentation understates cash flow, bank statement lending is built for that. If the condo is a pure rental, DSCR is the natural home.
Be honest about the risks too. Drawing down a portfolio to qualify, or tying a big share of it to one loan, leaves less cushion if markets fall. Securities balances move, and a drop between application and approval can change how much counts. Leave yourself a buffer beyond the minimums.
Frequently Asked Questions
Can I use retirement accounts to qualify?
Yes, with different credit on each path. On the qualifier path, a 401(k) or IRA counts at 90% if you are under 59½ and 100% at 59½ or older. On the depletion path, retirement accounts count at 70% at any age. You do not have to cash them out to use them, but statements must show the balances, subject to underwriting.
What happens if the condo is non-warrantable?
It depends on the lender. Some programs in the network will review a non-warrantable building, sometimes with lower leverage or different terms. Others decline it outright. Finding out before you make an offer is the best protection.
Can I buy a second-home condo in Indiana this way?
Yes, subject to underwriting. A second home gets the same ceilings as a primary residence: up to 80% on a purchase on the qualifier path, and up to 80% on a purchase or rate-and-term refinance on the depletion path. Cash-out on the depletion path is capped at 60%. Lake-area and resort-style buildings tend to draw close project review, so expect that scrutiny.
Do I need to document my income?
No employment or income is documented on the qualifier path. The assets carry the loan. On the depletion path, assets become your qualifying income. Both paths document the assets themselves, so statements are always required.
Is this available to Indiana borrowers?
Yes. Indiana is among the 16 states where Lendmire arranges consumer mortgages as a broker. The program figures do not change by state. Indiana facts, such as association documents and lien rules, are context for your file, not program terms.
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’s asset-based mortgage in Indiana page presents the program for Indiana borrowers.
About Lendmire
Lendmire (NMLS# 2371349) is a mortgage brokerage serving self-employed and high-net-worth borrowers in 16 states. Bank statement, P&L-only, 1099-only and asset-based mortgages are arranged through wholesale lending channels; Lendmire brokers the financing and the lender underwrites each application. 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. Fannie Mae – Selling Guide Forms
3. CAI Indiana
4. Nolo – Condo Property Management Issues for Landlords
5. Recording Law – Indiana HEA 1210
6. 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: Asset-Based Mortgage vs Home Equity Investment for Retirees Who Need Cash · How to Buy Before You Sell in Indiana Using an Asset Qualifier Mortgage · Can a Business Owner Use Company Cash to Qualify for an Asset-Based Mortgage?
Guides: Asset-Based Mortgage in Indiana
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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Disclosure information. Lendmire is a state-licensed mortgage brokerage under NMLS# 2371349. Lendmire is not a depository institution, direct lender, or financial advisor — all loans referenced are placed through wholesale lender partners and are subject to each lender's underwriting standards. This article is provided for general informational purposes and is not a commitment to lend, nor does it constitute financial, legal, or tax advice. Loan programs, terms, rates, and qualification standards change without notice and depend on borrower profile, property type, and the state in which the subject property is located. Equal Housing Opportunity provider. NMLS Consumer Access: nmlsconsumeraccess.org.