The Quick Read: Start by choosing which of two paths fits your balance sheet. On the asset qualifier path, eligible assets must cover the whole loan, and no employment or income is documented. On the asset depletion path, usable assets are divided by 60 months to create a qualifying monthly income. Both are fully underwritten, with your assets documented by statements.
- Qualifier path: eligible assets must equal or exceed the entire loan amount, subject to underwriting.
- Depletion path: usable assets divided by 60 months become qualifying income, then run through the debt-to-income test.
- Documents: no traditional personal-income documentation, pay stubs or employment verification, but account statements are required on both paths.
- Leverage: the qualifier path allows up to 80% on a purchase and 75% on a refinance, through select programs.
- Scope: these are consumer mortgages for a principal residence or second home. Investment property is available only on the depletion path.
Colorado is one of the 16 states where Lendmire’s consumer mortgage lending is licensed. The program figures below do not change by state. Colorado context mostly shows up in loan size and property type, because many Front Range and mountain-town purchases land in jumbo territory.
This is written for people whose balances are large and whose paychecks are small or gone. Think retirees, sellers of a business, heirs, settlement recipients, early-retired professionals, and households living off a portfolio. Lendmire is the broker. It places files with select lenders in its network, and the lender underwrites and decides.
What Does “Assets Instead of Income” Actually Mean?
It means the lender looks at what you hold instead of what you earn. Across the wholesale network, this shows up as two different products, and a borrower is reviewed on one at a time.
The first is the asset qualifier path. Your eligible assets, after the credit percentages below, must equal or exceed the entire loan amount. No employment or income is documented. The lender’s ability-to-repay review rests on the assets.
The second is the asset depletion path. Usable assets, after haircuts, are divided by 60 months. The result is a monthly qualifying income. That income must carry the full housing payment and your other debts through the debt-to-income test.
Neither is a no-doc loan. Credit, assets, the property and the source of funds are all reviewed. What you skip is the paper trail of income: traditional personal-income documentation, pay stubs and employment verification. Lendmire’s asset-based mortgage programs are built around this distinction.
Which Path Fits Your Situation?
Pick the qualifier path if your liquid assets are at least as large as the loan. Pick the depletion path if they are not, but still large enough to generate income on paper.
| Factor | Asset qualifier | Asset depletion |
|---|---|---|
| How assets are used | Must cover the whole loan | Divided by 60 months into income |
| Income documented | None | Derived income, DTI test applies |
| Purchase leverage | Up to 80% | Up to 80% (primary/second); 65% (investment) |
| Refinance leverage | Up to 75% | 80% rate-and-term; 60% cash-out (primary/second) |
| Loan amounts | Up to $4,000,000 | $125,000 to $3,500,000 |
| Credit | 600 minimum | The lender’s matrix |
| Property use | Principal residence, second home | Also investment property |
All figures are ceilings or floors through select programs, subject to underwriting. They are not offers. The depletion path’s investment-property leverage is 65% on a purchase or rate-and-term refinance and 60% on a cash-out. A first-time investor on that path needs a 700 score.
How Does Underwriting Treat Your Assets, Step by Step?
Underwriting converts each account into a usable balance, then tests that total against the loan or the debt-to-income ratio. The percentage that counts differs by path.
1. Sort every account by type. Brokerage, certificates of deposit, money market, savings, retirement, cash, private stock and real-estate equity are each treated differently.
2. Apply the path’s percentage. The tables below show what counts.
3. Confirm seasoning. Statements must be old enough and recent enough for the path.
4. Run the test. On the qualifier path, usable assets must meet or exceed the loan. On the depletion path, the monthly figure runs through debt-to-income.
5. Review credit and the property. Appraisal, title and insurance still apply.
Qualifier path: what counts
| Asset | Share that counts |
|---|---|
| Brokerage accounts | 100% |
| Certificates of deposit | 100% |
| Money market | 100% |
| Savings | 100% |
| 401(k) and IRA, under 59½ | 90% |
| 401(k) and IRA, 59½ or older | 100% |
Accounts combine. Here is an illustration, and the lender’s own calculation governs. Take an $800,000 loan with $330,000 in brokerage accounts (100%, so $330,000), $300,000 in a 401(k) while under 59½ (90%, so $270,000) and $200,000 in savings (100%, so $200,000). That counts $800,000 of usable assets, and the file is reviewed on assets alone.
Depletion path: what counts
| Asset | Share that counts |
|---|---|
| Cash accounts | 100% |
| Certificates of deposit | 100% |
| Securities | 80% |
| Private stock | 75% |
| Retirement accounts, any age | 70% |
| Real-estate equity | 60% |
Cash-out proceeds never count as qualifying assets. Not eligible: 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.
An illustration of the arithmetic: $1,500,000 in securities (80%, so $1,200,000) plus $300,000 in cash (100%, so $300,000) is $1,500,000 usable. Divided by 60 months, that is $25,000 of monthly qualifying income. That income then carries the housing payment and other debts through the debt-to-income test. Debts do not vanish because income is imputed.
What About Crypto, Metals and Business Accounts?
They are not published as eligible on either path. Cryptocurrency, precious metals, collectibles, business accounts beyond your ownership share, and pledged or borrowed funds do not count at a percentage.
The documented route is conversion. Sell the asset and move the proceeds into a seasoned cash balance at a regulated institution. The lender then reviews the source. Plan for the seasoning window before you apply, because a balance that landed last month will draw questions.
Seasoning and Statements: Where Files Stall
Seasoning is a common reason an asset file stalls. The rules differ by path.
On the qualifier path, funds need 60 days of seasoning, with two months of statements for each qualifying account. On the depletion path, statements must be at least 120 days old at application, plus the most recent statement within 45 days. Funds from the sale of a business, an inheritance or a legal settlement are excused from that seasoning, but the source is still documented.
The pattern across the network is consistent. Large, unexplained transfers between accounts create a letter-of-explanation request. Moving money from a brokerage account to checking right before applying is the classic self-inflicted problem. Leave accounts where they are and let the statements age.
Same Dollars, Two Tests
Assets used to qualify are not automatically free to spend. On the depletion path, assets are counted toward income, and the same funds also have to cover your down payment and closing costs. The qualifier path is stricter: usable assets must cover the entire loan amount, so money you spend on the down payment is money no longer in the count.
Run the numbers after subtracting what you will bring to the table. Borrowers who count a portfolio once for qualifying and again for the down payment get a surprise at underwriting.
You also do not generally have to liquidate everything. On both paths the assets are documented and counted, not necessarily sold. Selling can create tax consequences, though, and tax treatment varies; consult a qualified professional before relying on any particular approach.
Depletion Path Minimums
The depletion path has asset floors. 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.
Asset-derived income can supplement documented income, up to a 45% debt-to-income ratio. When it supplements, the minimum-assets rule is waived. A borrower with a small pension plus a large portfolio is a typical fit. The housing-history standard is 0x30x12, and one 30-day late in the last twelve months is considered case by case. A housing event needs 4 years of seasoning on this path, and multiple bankruptcies are not eligible.
What Does the Pre-Approval Letter Look Like in Colorado?
An asset-based pre-approval is a conditional letter. It states the loan amount and the program the lender has reviewed your file against. It is not a commitment to lend, and final approval depends on appraisal, title, insurance and a full underwriting review.
Sellers and agents care about two things: that the funds are real and that the buyer can close. Ask your broker to describe the path in plain terms to your agent, and expect the agent to explain it to the listing side if asked. A qualifier-path file, where assets cover the full loan, tends to read clearly to a seller. A depletion-path file may need a short explanation.
Colorado purchases in Front Range suburbs and mountain-resort towns often run large. That makes loan-size limits matter. The qualifier path reaches $4,000,000, and the depletion path reaches $3,500,000. HOA and condo questionnaires on resort properties add their own documents, so request them early.
Where the General Rule Breaks
A few edge cases are worth naming.
Investment property. Asset-based qualification is a consumer product for a principal residence or second home. Investment property is available only on the depletion path, where the loan is business-purpose. Leverage there is lower, at 65% on a purchase and 60% on a cash-out.
For rental buyers, the business-purpose framework is the reason no personal income test is required. The CFPB’s Regulation Z text exempts credit extended primarily for a business purpose, and its official interpretation, hosted by Cornell LII, 12 CFR Part 1026 Supp. I, treats credit to acquire non-owner-occupied rental property as business-purpose. Occupancy matters: under the CFPB text, expected owner use of more than 14 days in the coming year takes the property outside that rule. A pure rental purchase is often better served by DSCR financing, which qualifies primarily on property-level rental income covering the payment, subject to lender guidelines.
Self-employed with strong deposits. If your wealth sits in a business and shows up as deposits, bank statement lending, which documents income through deposits, may fit better than either asset path.
Credit. The qualifier path has a published 600 floor. Weak credit is not offset by a large balance.
Reserves. None are required on the qualifier path at or below 75% loan-to-value. Above that, the lender sets them. The depletion path has no published reserve months.
Mistakes That Cost Borrowers Time
- Moving funds between accounts just before applying.
- Counting crypto or metals as if they carried a percentage.
- Using the same dollars for qualifying and for the down payment.
- Assuming imputed income erases other debts.
- Assuming a retirement account counts at 100% on the depletion path. It counts at 70%.
- Mixing the two paths in one calculation.
Who This Isn’t For
It is not for someone whose documented income is strong. Full-documentation loans may be a cleaner choice there. It is also not for a borrower with thin assets and a large loan. Both paths need real balances, and the program figures are ceilings, not offers.
Key Terms Defined
Asset qualifier: a path where eligible assets must cover the entire loan and no income is documented.
Asset depletion: a path where usable assets divided by 60 months become qualifying monthly income.
Haircut: the share of an account’s balance a lender does not count.
Seasoning: the length of time funds have sat in an account before you apply.
Debt-to-income (DTI): monthly debts divided by monthly qualifying income.
Loan-to-value (LTV): the loan amount divided by the property’s value.
Frequently Asked Questions
Do I have to sell my investments to qualify?
No. Eligible assets are documented with statements and counted at the path’s percentages; they are not necessarily liquidated. You still need funds for the down payment and closing costs, which is why the same dollars are counted twice at your peril.
Can I use a 401(k) or IRA?
Yes, with different treatment by path. 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, subject to underwriting.
Does cryptocurrency count?
Not directly. It is not published as eligible on either path. The documented route is converting it to a seasoned cash balance in a regulated account, with the lender reviewing the source.
Can I combine asset income with other income?
On the depletion path, yes. Asset-derived income can supplement documented income up to a 45% debt-to-income ratio, and the minimum-assets rule is waived in that case. The qualifier path does not document income.
Can I buy a rental this way?
Only on the depletion path, at 65% on a purchase or rate-and-term refinance and 60% on a cash-out, through select programs. Many rental buyers are better matched with DSCR financing, which qualifies primarily on property-level rental 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. Many Colorado buyers with large portfolios discover the right path is decided by how their accounts are titled and seasoned, not by the price of the home.
About Lendmire
As a mortgage broker (NMLS# 2371349), Lendmire helps self-employed and high-net-worth borrowers in 16 states qualify on bank statements, a profit-and-loss statement, 1099s or liquid assets instead of tax returns, through wholesale lenders. Lendmire is never the lender; program terms are set by the lender and its guidelines. Scotsman Guide named Lendmire a Top Mortgage Workplace in both 2025 and 2026.
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References
1. CFPB Reg Z §1026.3 Exempt Transactions
2. Cornell LII, 12 CFR Part 1026 Supp. I
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 Refinance a Georgia Home on Assets When Your Income Stops? · Can You Relocate to Michigan and Buy a Home on Assets Before You Have Local Income? · How to Get Pre-Approved in Michigan on Assets Instead of Income
Guides: Asset-Based Mortgage in Colorado
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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Compliance and disclosures. Lendmire (NMLS# 2371349) is a licensed mortgage broker and is not a direct lender, depository institution, financial advisor, or tax professional. Content in this article is general market analysis and educational information — not financial, legal, or tax advice for any specific situation. Lendmire does not guarantee loan approval; every transaction is subject to underwriting by the funding lender. Mortgage pricing and loan program guidelines are subject to change at any time without notice and vary by borrower characteristics, property type, and state regulations. Lendmire complies with Equal Housing Opportunity. Licensure verification: NMLS Consumer Access.