The Quick Read: To get pre-approved on assets, you pick one of two asset-based paths, send seasoned statements for the accounts you plan to use, and let a lender size the approval from your balances instead of your paycheck. On the first path, eligible assets must cover the entire loan. On the second, your assets are divided by 60 months to create a qualifying income.
- Path one, the asset qualifier: eligible assets must equal or exceed the whole loan, and no employment or income is documented.
- Path two, asset depletion: usable assets divided by 60 months become monthly income that runs through the debt-to-income test.
- You stay on one path at a time. The figures for each path do not blend.
- Assets are documented either way. “No income documentation” never means “no documentation.”
- Everything is subject to underwriting. Programs are placed through select lenders in Lendmire’s network, and every file is reviewed individually.
Picture a Florida buyer who just sold a business, or a retiree living off a portfolio. The balances are large. The tax return shows little. A conventional lender looks at that return and sees a problem. An asset-based mortgage program looks at the statements and sees a borrower.
This guide walks through how it works, step by step. Across Lendmire’s wholesale network, the consistent pattern is that the right path depends on how liquid the money is and how much of it you have relative to the loan.
What Does “Assets Instead of Income” Actually Mean?
It means the lender reviews your file on what you own rather than what you earn. Two different structures sit behind the phrase, and they behave very differently. Mixing them up is a common source of confusion.
The asset qualifier path is the simpler one. After each account type is counted at its credit percentage, the total must equal or exceed the entire loan amount. No employment or income is documented. The lender’s review rests on the assets.
The asset depletion path converts assets into income. Usable assets are divided by 60 months. That monthly figure must carry the housing payment and your other debts through the debt-to-income test. It can also supplement documented income, which is useful for someone with a small pension plus a large portfolio.
Neither is a loophole. Neither is a withdrawal plan. Nothing is sold, and the money stays where it is. The assets are counted for qualifying purposes only.
One more distinction matters for Florida buyers. These programs are consumer mortgages for principal residences and second homes. Investment property is available only on the asset depletion path. A rental purchase reviewed on the property’s own income is a different product, a DSCR loan, and it follows different rules.
Which Path Fits You?
Choose the qualifier path if your eligible assets are at least as large as the loan. Choose depletion if your assets are large but fall short of the loan amount, or if you want to blend them with other income.
| Factor | Asset Qualifier | Asset Depletion |
|---|---|---|
| What the lender tests | Assets ≥ entire loan | Derived income vs. DTI |
| Income documented | None | Derived from assets |
| Purchase leverage | Up to 80% | Up to 80% (residence/second home); up to 65% (investment) |
| Refinance leverage | Up to 75% | Up to 80% rate-and-term, 60% cash-out (residence/second home) |
| Loan amounts | Up to $4,000,000 | $125,000 to $3,500,000 |
| Credit | 600 minimum | Lender’s matrix |
These are ceilings and floors, not offers. Final terms depend on underwriting, the property, and the lender.
How Underwriting Counts Your Assets
Each account type is counted at a percentage of its balance. The percentages differ by path, so read the right column.
On the asset qualifier path:
- Brokerage accounts, CDs, money market and savings count at 100%.
- 401(k) and IRA balances count at 90% if you are under 59½, and 100% at 59½ or older.
- Accounts combine.
On the asset depletion path:
- Cash accounts and CDs count at 100%.
- Securities count at 80%.
- Private stock counts at 75%.
- Retirement accounts count at 70% at any age.
- Real-estate equity counts at 60%.
Why the discount? Securities can fall in value, and retirement withdrawals can trigger penalties and taxes. Lenders haircut those balances to account for it.
Some items do not count on the depletion path 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, with the source reviewed by the lender.
Two Worked Examples
These shapes show the arithmetic. The lender’s own calculation governs.
Qualifier path. Take an $800,000 loan. You hold $330,000 in brokerage accounts (counted at 100%, so $330,000), $300,000 in a 401(k) while under 59½ (counted at 90%, so $270,000), and $200,000 in savings (100%, so $200,000). That is $800,000 of usable assets, which equals the loan. The file is reviewed on assets alone, subject to underwriting.
Depletion path. Take $1,500,000 in securities, counted at 80% for $1,200,000, plus $300,000 in cash at 100%. Usable assets total $1,500,000. Divide by 60 months and you get $25,000 of monthly qualifying income. That income then has to carry the housing payment and your other debts through the debt-to-income test.
Notice what neither example does. Neither lets you count the same dollars twice. Down payment, closing costs, and any reserves come out of the same pool, and that is where files most often get resized.
Step by Step: The Pre-Approval Process
Here is the sequence that works best for an asset-based borrower.
1. Choose the path. Compare your eligible balances to the loan you want. That one comparison usually points to the right path.
2. Inventory the accounts. List every account, its type, and its balance. Sort out which ones count and which do not.
3. Pull the right statements. The qualifier path wants two months of statements for each qualifying account and 60 days of seasoning. The depletion path wants statements at least 120 days old at application, plus the most recent statement within 45 days. Sale-of-business, inheritance, and legal-settlement funds are excused from that depletion seasoning.
4. Source anything unusual. A large deposit outside the normal pattern needs a paper trail. Lendmire’s checklist on documenting assets and rental income covers complete statements, name matches, and avoiding double counts.
5. Run the credit review. Credit rules differ by path, covered below.
6. Receive the pre-approval. It states an amount and conditions. It is not a commitment to lend, and it depends on the property, appraisal, and final underwriting.
Keep one habit in mind. Do not shuffle money between accounts mid-file. Every move creates a new item to explain.
Credit and Leverage: What to Expect
The qualifier path publishes a 600 minimum score. 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 read strictly. Expect 0x30x12 as the baseline, with a single 30-day late in the last twelve months considered case by case. Multiple bankruptcies are not eligible. A housing event needs four years of seasoning on the depletion path.
On the depletion path there are asset minimums too. Qualified assets must be at least the lesser of $1,000,000 or 1.25 times the loan balance. When asset depletion is your only income source, you also need at least $250,000 liquid. If the derived income only supplements documented income, up to a 45% debt-to-income ratio, that minimum-assets rule is waived.
Cash-out proceeds never count as qualifying assets. On the qualifier path, no reserves are required at or below 75% loan-to-value. Above that, the lender sets them. The depletion path publishes no reserve months.
Where the General Rule Breaks
A few edge cases trip up otherwise strong borrowers.
Gift funds and borrowed money. Pledged or borrowed funds are not published as eligible. Gifts are treated differently across programs, so confirm treatment before you count on them.
Business accounts. Only your ownership share counts, and you must be able to show ownership and access.
Retirement accounts. The percentage depends on the path and, on the qualifier path, on your age. Counting a 401(k) at face value is a classic mistake.
Account types that look liquid but are not. Stock options and non-vested units sound valuable. On the depletion path, they count for nothing.
Investment property. The depletion path allows it, but at lower leverage: up to 65% on a purchase or rate-and-term refinance and 60% on a cash-out. For most pure rental purchases, a DSCR loan is the cleaner fit. It qualifies primarily on property-level rental income covering the payment, subject to lender guidelines. Select lenders in the network also offer programs below 1.00 coverage, though leverage and terms adjust.
The Legal Footing, Briefly
Qualifying on assets is recognized practice. Under the CFPB’s ability-to-repay rule, a lender must make a reasonable, good-faith determination that you can repay, and it may rely on income, assets, or both. Employment needs verifying only when the lender relies on employment income. The CFPB’s compliance guide is equally clear that income or assets must be verified, and that stated-income lending is gone. That is why every file here documents the assets.
Florida Considerations
The program figures do not change by state. Florida context is just that: context. Lendmire’s consumer mortgage lending is licensed in 16 states, Florida among them.
Two practical points. First, Florida property taxes and homeowners insurance affect the size of the monthly obligation, which matters most on the depletion path, where derived income has to carry the payment. Budget for both when you size a purchase. Second, condos and association reviews add steps on any Florida file, so ask about the building early.
If the property is a rental, short-term rental rules can vary by city, county, HOA, and property type, so confirm local rules before relying on projected rental income.
Using Your Pre-Approval
A pre-approval tells a seller your financing has been reviewed. An asset-based letter carries the same function, but sellers and agents may ask what it rests on, so be ready to explain it plainly. The letter stays valid only while the facts behind it hold. A big drop in portfolio value, a withdrawal, or a new debt can change the numbers. Hold the accounts steady until you close.
Key Terms Defined
Asset qualifier: A path where eligible assets must equal or exceed the entire loan, with no income documented.
Asset depletion: A path that divides usable assets by 60 months to create qualifying monthly income.
Seasoning: The length of time funds have sat in your account so they count as yours.
Haircut: The discount applied to an asset’s balance, such as 80% for securities on the depletion path.
Debt-to-income (DTI): Your monthly debts compared with your qualifying monthly income.
DSCR loan: A business-purpose rental loan that qualifies primarily on property-level rental income covering the payment.
Frequently Asked Questions
Can I get approved with zero documented income?
On the asset qualifier path, yes, subject to underwriting. No employment or income is documented, but your assets are, with two months of statements per qualifying account. The lender’s review rests on those assets covering the whole loan.
Do I have to sell my investments?
No. Nothing is sold or moved. The lender counts your balances for qualifying purposes only. Keep the accounts in place and unchanged through closing.
Do retirement accounts count fully?
Not always. On the qualifier path, they count at 90% under 59½ and 100% after. On the depletion path, they count at 70% at any age.
Can I combine assets with other income?
Yes, on the depletion path. Asset-derived income may supplement documented income up to a 45% debt-to-income ratio. When it does, the minimum-assets rule is waived.
What can derail my approval?
Unsourced deposits, money moved between accounts mid-file, counting the same dollars for qualifying and reserves, and assets that do not count, like stock options or crypto held outside a regulated account. Credit history can also matter, including recent housing events.
Next Steps
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.
Tax treatment varies; consult a qualified professional.
For a Florida buyer with a large portfolio and a thin tax return, the real decision is rarely whether to use assets but which path to use, so count your balances before you shop.
About Lendmire
Lendmire, NMLS# 2371349, is a mortgage brokerage with consumer lending licenses in 16 states. Bank statement, P&L-only, 1099-only and asset-based mortgages are arranged through wholesale lending partners for borrowers whose traditional personal-income documentation understates their income, and each application is reviewed individually by the lender. Scotsman Guide named Lendmire a Top Mortgage Workplace in both 2025 and 2026.
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References
1. CFPB – Regulation Z §1026.43 and commentary
2. CFPB – ATR/QM Small Entity Compliance Guide
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 to Refinance a Florida Mortgage After Retiring With No W-2 Income · How Northern Retirees Buy in Florida on Assets Before Selling Up North · Can You Relocate to Michigan and Buy a Home on Assets Before You Have Local Income?
Guides: Asset-Based Mortgage in Florida
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.