The Quick Read: A New Mexico borrower with large balances and little documented income can be pre-approved on assets through select programs, either by letting eligible assets cover the whole loan or by converting them into monthly qualifying income. Pick one path, document the accounts with statements, and the lender underwrites the file like any other. Terms are subject to underwriting and lender availability.
- Asset qualifier path: usable assets must equal or exceed the entire loan. No employment or income is documented.
- Asset depletion path: usable assets divided by 60 months become qualifying income, which then runs through the debt-to-income test.
- Not undocumented: the file skips traditional personal-income documentation, pay stubs and employment verification. It does not skip statements, credit or underwriting.
- A borrower is on one path at a time. The two sets of figures never blend.
- The letter is conditional. It depends on the property, the appraisal and final underwriting.
This is written for a cash-heavy, income-light reader: a retiree, someone who sold a business, an heir, a person living off a portfolio. Balances are large. Documented income is not. A standard pre-approval asks for pay stubs and two years of returns, and a file like this stalls at step one. Asset-based programs start from the balance sheet instead.
Lendmire is a broker. It arranges these loans through select lenders in its network and does not lend or underwrite. Consumer mortgage lending is available in 16 states, New Mexico among them. The program figures below are the same in every state, and they are ceilings and floors, not offers.
What Does It Mean to Qualify on Assets, Not Income?
It means the lender sizes the loan against what you own rather than what you earn. Credit, the property and the assets are all reviewed. The documentation that drops away is traditional personal-income documentation, pay stubs and employment verification.
Names vary. You will see asset-based mortgage, asset qualifier, asset depletion, or asset utilization. They are non-QM products. Lendmire’s asset-based mortgage program covers both paths described here.
The mistake to avoid is calling it no-doc. The assets are documented with statements. Underwriters check where the money came from and how long it has sat there. A file with clean, aged statements moves. A file with a big transfer last week does not.
Which Path Fits You? Qualifier vs. Depletion
The qualifier path fits when your liquid assets are at least as large as the loan. The depletion path fits when you want to borrow against a smaller asset base and your balances can be turned into income. A borrower is qualified on one path at a time.
| Factor | Asset qualifier | Asset depletion |
|---|---|---|
| How it tests | Eligible assets must equal or exceed the entire loan | Usable assets ÷ 60 months = qualifying income |
| Income documented | None | Derived from assets; may supplement documented income |
| Debt-to-income test | None; ability-to-repay rests on the assets | Yes, on the derived income |
| Max leverage | 80% purchase, 75% refinance | 80% purchase or rate-and-term, 60% cash-out |
| Loan amounts | Up to $4,000,000 | $125,000 to $3,500,000 |
| Credit | 600 minimum score | The lender’s matrix |
Leverage on the qualifier path applies to a principal residence or second home. On the depletion path, those same properties get 80% on a purchase or rate-and-term refinance and 60% on a cash-out refinance. An investment property on the depletion path gets 65% on a purchase or rate-and-term and 60% on a cash-out. Cash-out proceeds never count as qualifying assets. Whether the qualifier path allows cash-out, and at what leverage, is the lender’s call and is not published, so plan on a purchase or standard refinance.
Rule of thumb: if your balances beat the loan amount, the qualifier path is cleaner. If they don’t, depletion is the way to stretch them, at the cost of a debt-to-income test.
How Much of Each Asset Counts?
Not every dollar counts at face value. Each program applies a percentage by asset type, and the two paths use different tables. Do not mix them.
| Asset | Qualifier path | Depletion path |
|---|---|---|
| Cash, savings, money market | 100% | 100% (cash accounts) |
| Certificates of deposit | 100% | 100% |
| Brokerage / securities | 100% | 80% |
| Private stock | Not published | 75% |
| 401(k) / IRA | 90% under 59½; 100% at 59½+ | 70% at any age |
| Real-estate equity | Not published | 60% |
On the qualifier path, accounts combine. On the depletion path, 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 are not eligible.
Cryptocurrency, precious metals, collectibles, business accounts beyond your ownership share, and pledged or borrowed funds are not published as eligible on either path. The documented route is to convert them to a seasoned cash balance in a regulated account, with the source reviewed by the lender. Don’t count on them at any percentage.
Worked Examples
These show the arithmetic shape. The lender’s own calculation governs, and everything is subject to underwriting.
Qualifier path. Say the loan is $800,000. The borrower holds $330,000 in brokerage accounts (100% counts, so $330,000), $300,000 in a 401(k) and is under 59½ (90% counts, so $270,000), and $200,000 in savings (100%, so $200,000). Usable assets total $800,000. That equals the loan, so the file is reviewed on assets alone.
Depletion path. Say a borrower holds $1,500,000 in securities, where 80% counts, or $1,200,000, plus $300,000 in cash at 100%. Usable assets are $1,500,000. Divided by 60 months, that is $25,000 of monthly qualifying income. That income must then carry the housing payment and other debts through the debt-to-income test.
Notice the 401(k) in the first example. A borrower over 59½ would have counted that account at full value. Age changes the math.
Minimums and Credit
On the depletion path, qualified assets must be at least the lesser of $1,000,000 or 1.25 times the loan balance. When asset depletion is the only income source, liquid assets never fall below $250,000. Asset income can also supplement documented income, up to a 45% debt-to-income ratio, and in that case the minimum-assets rule is waived. That is useful for a retiree with a pension plus a portfolio.
Credit still matters. The qualifier path uses 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 a 700. Housing history is typically 0x30x12, and one 30-day late in the last twelve months is considered case by case. Multiple bankruptcies are not eligible, and a housing event needs four years of seasoning on the depletion path.
Reserves are light. The qualifier path requires none at or below 75% loan-to-value, and above that the lender sets them. The depletion path has no published reserve months.
Seasoning and Statements
Statements are where files live or die. 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 the most recent statement within 45 days. Sale-of-business, inheritance and legal-settlement funds are excused from that seasoning.
The usual stall is a large recent deposit with no paper trail. If the money came from a home sale, a business sale or an inheritance, have the closing statement, sale agreement or estate document ready. Underwriters want the source, not just the balance. Moving funds between your own accounts the month before applying creates the same question.
Pre-Approval Step by Step
A pre-approval on assets is a conditional sizing of what you can borrow, not a commitment to lend. The final answer depends on the property and underwriting.
1. Choose the path. Compare total eligible assets to the target loan. If they clear it, start with the qualifier path. If not, look at depletion.
2. Gather statements. Pull every account you plan to count, with the months each path requires.
3. Pull and review credit. The lender reviews credit on both paths. There is no such thing as a no-credit-check file.
4. Document sources. Flag any large deposit and attach its paper trail.
5. Size the loan. The broker runs your usable assets through the right table and tests leverage on the property type and occupancy.
6. Receive the conditional letter. It is subject to underwriting, an appraisal and a satisfactory title and property review.
7. Make offers. Sellers see a documented, asset-backed buyer. Final terms are confirmed in underwriting.
Occupancy matters. A principal residence or second home is a consumer mortgage, so consumer disclosure rules apply. An investment property is only available on the depletion path, where the loan is business-purpose. Rental financing based on the property’s own income is a different product, DSCR, which qualifies primarily on property-level rental income covering the payment, subject to lender guidelines.
Prepare Three to Six Months Ahead
Start early, because seasoning can’t be rushed. Do:
- Keep funds in the accounts you plan to count.
- Consolidate scattered accounts into a few regulated ones, well before applying.
- Save the paper trail for any sale, inheritance or settlement.
- Check your credit report for errors.
Don’t:
- Move large sums between accounts right before applying.
- Take on new debt.
- Borrow against assets and then count them. Pledged or borrowed funds don’t qualify.
- Count crypto or collectibles without converting them first.
New Mexico Considerations
The program figures don’t change by state. What changes is the setting. A New Mexico borrower might be buying a primary residence around Albuquerque, or a second home in Santa Fe, Taos or Ruidoso. The occupancy type is what changes the file: leverage limits differ between a principal residence or second home and an investment property, and an investment property is available only on the depletion path.
Taxes, insurance and local prices are context for your budget, not program parameters, and they vary by county and property. Whether a state down-payment assistance program can sit alongside an asset-based file depends on the lender and the program, so ask before assuming.
The same mechanics apply in other states, such as North Carolina.
Why Asset-Based Files Stall
- Large deposits with no documented source.
- Statements that are too new for the seasoning rule.
- Counting assets the path doesn’t accept, such as foreign funds or non-vested stock.
- Mixing the two paths’ percentages.
- Weak credit or a recent housing event.
- Assets that cover the loan on paper but not after the haircuts.
Most of these are fixed with preparation, not persuasion.
Alternatives if Assets Aren’t the Best Fit
Other programs suit other borrowers. Bank statement loans are for self-employed borrowers who document income through deposits. Conventional and full-doc jumbo loans qualify on traditional personal-income documentation and pay history under those programs’ own rules. A HELOC or bridge loan can unlock equity in an existing property. And for a pure rental purchase, DSCR financing qualifies primarily on property-level rental income covering the payment, subject to lender guidelines.
One regulatory point belongs here. Non-owner-occupied rental credit is generally treated as business purpose under Regulation Z, which is why investment-property files run on different rules than a home you will live in. A law-firm note on business-purpose lending adds that business purpose is not the same as compliance-exempt, and state licensing rules can still apply.
Key Terms Defined
- Asset qualifier: a path where eligible assets, after credit percentages, must equal or exceed the entire loan.
- Asset depletion: a path that divides usable assets by 60 months to create qualifying monthly income.
- Seasoning: the time funds must sit in an account before they count.
- Haircut: the share of an asset’s balance a program discounts, such as 80% for securities on the depletion path.
- Debt-to-income (DTI): monthly debts as a share of monthly income, tested on the depletion path.
- Non-QM: a mortgage that falls outside standard qualified-mortgage rules, which is why it uses its own underwriting.
Frequently Asked Questions
Can I qualify on assets rather than income documents?
The loan is reviewed on verified assets rather than income documentation, subject to lender guidelines. Traditional income documentation, pay stubs and employment verification are not the basis for qualification. Underwriting still applies: assets are documented with statements, credit is reviewed and the property is appraised.
Do I have to sell my investments?
No. The assets are counted and documented, not liquidated. On the depletion path they are converted into qualifying income on paper only.
Is a pre-approval a guarantee?
No. It is a conditional sizing, subject to underwriting, the appraisal and property review. A lender can change the outcome if the file changes.
Can I combine assets with other income?
Yes, on the depletion path. Asset-derived income can supplement documented income up to a 45% debt-to-income ratio, and the minimum-assets rule is waived when it does.
Does this work for a second home?
Yes. A principal residence or second home is eligible on both paths, with the leverage limits above. Investment property is available only on the depletion path.
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. Reach the team at 828-256-2183.
Tax treatment varies by situation; consult a qualified professional.
Lendmire’s asset-based mortgage in New Mexico page presents the program for New Mexico 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.
Investors who want the broader program framework can review how DSCR loans work.
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Informational only. Not a Loan Estimate, approval, or commitment to lend. Program availability and eligibility are subject to lender guidelines, credit approval, property review, and underwriting.
References
2. Hunton, business-purpose regulatory implications
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 Florida and Buy a Home on Assets Before You Have Local Income? · Can a New Mexico Trust Beneficiary Qualify for a Mortgage on Trust Assets?
Guides: Asset-Based Mortgage in New Mexico
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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- Lendmire LLC · Firm NMLS# 2371349 · Verify firm licensure
Legal disclosures. Lendmire (NMLS# 2371349) is a state-licensed mortgage brokerage that arranges financing through wholesale lender relationships. Lendmire is not a direct lender, depository institution, or registered financial advisor. The discussion above is general informational content about real estate financing — it is not financial, legal, or tax advice, and readers should consult licensed professionals for guidance on their individual circumstances. Loan inquiries are subject to lender underwriting; this article does not represent a commitment to lend. Loan terms, rates, and qualification standards vary by borrower, property, and state, and are subject to change at any time. Equal Housing Opportunity. NMLS Consumer Access: nmlsconsumeraccess.org.