The Quick Read: A North Carolina borrower gets pre-approved on assets by showing, through seasoned statements, that eligible balances either cover the entire loan outright or convert into monthly qualifying income, through select programs and subject to underwriting; the first path documents no employment or income at all.
- Asset qualifier path: eligible assets, after the credit percentages, must equal or exceed the whole loan. Leverage reaches 80% on a purchase and 75% on a refinance of a principal residence or second home, with loans up to $4,000,000.
- Asset depletion path: usable assets divided by 60 months become qualifying income, which then runs through the debt-to-income test. Investment property is allowed on this path only.
- The assets are documented. Both paths require statements, seasoning and source review. Only the income documentation goes away on the first path.
- Credit still counts. The qualifier path has a 600 minimum score. The depletion path follows the lender’s score and loan-amount matrix.
Who Is This Built For?
This approach fits borrowers whose balances are large and whose documented income is small. Think of a retiree living on a portfolio, someone who sold a business, an heir who received an inheritance, or an early-retired professional. A settlement recipient fits the same pattern.
A conventional lender looks at pay stubs and traditional personal-income documentation and sees little there. An asset-based program looks at the statements and sees plenty.
This matters in North Carolina because the state draws many people with exactly that profile. Retirees and relocators buy near Charlotte, around the Triangle, in the mountains and along the coast. Many of them hold wealth in brokerage accounts and savings rather than a paycheck.
The program figures here do not change by state. State facts such as local prices and taxes are context, not loan terms.
Lendmire is a mortgage broker. It places these consumer files with select lenders in its wholesale network and is licensed for consumer mortgage lending in 16 states, North Carolina among them. The lender, not the broker, reviews and approves every file.
Which Path Fits You: Assets as the Loan, or Assets as Income?
Pick the path first, because every other number depends on it. A borrower is qualified on one path at a time, and the two sets of rules are never blended.
| Factor | Asset qualifier path | Asset depletion path |
|---|---|---|
| Core idea | Assets cover the entire loan | Assets become monthly income |
| Income documented | None | Derived from assets |
| Loan amounts | Up to $4,000,000 | $125,000 to $3,500,000 |
| Property types | Principal residence, second home | Also investment property |
| Credit | 600 minimum score | Lender’s matrix |
The asset qualifier path is the simpler idea. Eligible assets, after the credit percentages below, must equal or exceed the entire loan amount. No employment or income is documented, and the lender’s review rests on the assets themselves.
The asset depletion path treats your portfolio as a paycheck. The lender adds up 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.
Which path is better depends on how much you hold relative to the loan. If your balances comfortably exceed the loan, the qualifier path avoids the debt-to-income test entirely. If your balances are smaller than the loan, only the depletion path can work, because it asks assets to carry payments rather than the whole balance.
How Do You Get Pre-Approved in North Carolina on Assets, Step by Step?
The process runs in five steps. Each one builds the file a lender will review.
1. Choose the path and property type. Decide whether the home is a principal residence, a second home or an investment property. Investment property points you to the depletion path.
2. Inventory your accounts. List every brokerage, savings, CD, money market and retirement account. Note who owns each one and how long the money has sat there.
3. Apply the credit percentages. Each asset type counts at a set share of its balance. The tables below show the shares for each path.
4. Run the test for your path. On the qualifier path, usable assets must meet the loan amount. On the depletion path, usable assets divided by 60 must produce income that supports the payment.
5. Submit statements for lender review. The lender checks seasoning, ownership, credit and the source of any large deposit. The pre-approval is issued from that review, subject to underwriting.
A pre-approval built this way is stronger than a pre-qualification. A pre-qualification can rest on balances you simply state. An underwritten pre-approval rests on statements the lender has actually read, which is what a seller’s agent wants to see.
Your agent and closing attorney will set the contract deadlines. The pre-approval gives them a documented number to work from.
How the Qualifier Path Counts Your Assets
On the asset qualifier path, most liquid balances count at full value. Retirement balances count in full once you reach 59½.
| Asset type | 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 with round numbers. Picture an $800,000 loan against $330,000 in brokerage accounts, $300,000 in a 401(k) and $200,000 in savings, with the borrower under 59½.
- Brokerage counts at 100%, or $330,000.
- The 401(k) counts at 90%, or $270,000.
- Savings counts at 100%, or $200,000.
Together that is $800,000 of usable assets, which meets the loan amount, so the file is reviewed on assets alone. The lender’s own calculation governs the real result.
Seasoning on this path is 60 days, with two months of statements for each qualifying account. Reserves are not required at or below 75% loan-to-value. Above that, the lender sets them.
Whether cash-out proceeds are allowed on this path is the lender’s decision and is not published, so do not plan around it.
How the Depletion Path Counts Your Assets
The depletion path applies haircuts, because market-linked and restricted assets can lose value or be hard to reach.
| Asset type | Share that counts |
|---|---|
| Cash accounts | 100% |
| Certificates of deposit | 100% |
| Securities | 80% |
| Private stock | 75% |
| Retirement accounts, any age | 70% |
| Real-estate equity | 60% |
Now the arithmetic, again with round, illustrative numbers. Suppose you hold $1,500,000 in securities and $300,000 in cash.
- Securities count at 80%, or $1,200,000.
- Cash counts at 100%, or $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 then carries the housing payment and your other debts through the debt-to-income test. Pre-approval is not automatic, since the lender’s calculation governs.
The depletion path also has minimum asset rules:
- Qualified assets must be at least the lesser of $1,000,000 or 1.25 times the loan balance.
- Liquid assets can never fall below $250,000 when asset depletion is your only income source.
- Asset income may instead supplement documented income, up to a 45% debt-to-income ratio. When it supplements, the minimum-assets rule is waived.
This mixed route suits someone with a pension or part-time earnings plus a sizable portfolio.
Leverage on this path depends on the property and the transaction:
- On a principal residence or second home, up to 80% on a purchase or rate-and-term refinance, and 60% on a cash-out refinance.
- On an investment property, up to 65% on a purchase or rate-and-term refinance, and 60% on a cash-out refinance.
Cash-out proceeds never count as qualifying assets.
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.
What the Lender Checks Before It Issues the Letter
“Assets instead of income” never means “no documentation.” The lender verifies the assets it relies on, and the file is built from paper.
Documents to gather:
- Statements for every qualifying account, covering the required months.
- Proof that you own each account.
- An explanation and paper trail for any large recent deposit.
- A credit authorization.
- A source-of-funds letter if money came from a sale, inheritance or settlement.
Credit review. The qualifier path sets a 600 minimum score. A first-time investor on the depletion path needs a 700. Housing history is typically 0x30x12. 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.
Where deals stall. Across the wholesale network Lendmire works with, a common problem is not low balances. It is money that moved recently. A transfer between your own accounts looks harmless to you but looks unseasoned to an underwriter.
Pay attention to dates. Leave funds in place for the seasoning period before you apply. If you must move money, keep the paper trail clean from the start.
Where the General Rule Breaks
Several situations change the answer. Know them before you build your plan.
- Crypto, metals and collectibles. These are not published as eligible on either path. The documented route is converting them into a seasoned cash balance in a regulated account, with the source reviewed by the lender. They do not count at a percentage.
- Business accounts. Only your ownership share can be considered, and the rest is excluded.
- Borrowed or pledged funds. These do not count as assets on either path.
- Stock options and non-vested restricted stock units. These are not eligible on the depletion path. The same goes for deferred compensation.
- Custodial, escrow and foreign accounts. None of these are eligible on the depletion path.
- Retirement age. On the qualifier path, a borrower under 59½ gets 90% credit and an older borrower gets 100%. On the depletion path, retirement accounts count at 70% at any age.
- Refinances. The qualifier path drops to 75% on a refinance, and cash-out on that path is the lender’s call.
Two further edge cases matter. If your balances are large but a loan would leave you thin on liquidity, the depletion minimums can disqualify you even when the loan looks small. And if your goal is a pure rental purchase, this consumer program may not be the right tool.
For a rental held for business purposes, the usual route is a DSCR loan. It qualifies primarily on property-level rental income covering the payment, subject to lender guidelines. Lendmire’s complete DSCR loans guide explains that route in full.
Why a Lender Is Allowed to Use Assets at All
Lending on assets is not a loophole. It rests on the federal ability-to-repay rule for consumer mortgages. CFPB’s rule on ability to repay requires a reasonable, good-faith determination that you can repay the loan. The rule’s commentary permits that determination to rest on income, on assets other than the home being purchased, or on both.
The lender must verify what it relies on. The eCFR text of the same section says so directly. The rule covers consumer credit secured by a dwelling, as Cornell’s Legal Information Institute summarizes. That is why this program is a consumer mortgage with consumer disclosures.
For you, the takeaway is simple. The lender’s review rests on verified assets, so the paper trail is the product.
How Does This Compare With the Other Options?
Each alternative solves a different problem. Match the tool to your situation.
| Situation | Better fit |
|---|---|
| Large balances, little income, home purchase | Asset-based mortgage |
| Income shows in business deposits | Bank statement program |
| Rental held as a business | DSCR loan |
| Stable traditional employment income, standard file | Conventional loan |
A bank statement program is for borrowers who document income through deposits. If your deposits show steady business income, that route may fit better than depleting assets. If you have the opposite profile, with large balances and few deposits, the asset path is usually the cleaner one.
Conventional lenders use their own income and asset rules, and those rules are not this program’s. Retirees often discover that a big portfolio earns no credit under conventional underwriting if it does not produce documented income. That gap is exactly what asset-based qualification fills.
For readers who want to see how Lendmire frames adjacent questions, its piece How to Qualify for a Mortgage Using Assets Instead of Income covers the broader path.
What Can Go Wrong Between the Letter and the Closing
A pre-approval is a snapshot. Your file can change before closing.
- Market movement. If your securities drop, usable assets drop with them. On the depletion path, a fall in a portfolio can shrink qualifying income and the loan amount it supports. Build a cushion above the minimum rather than sitting on it.
- Moving money. A new transfer can restart seasoning questions. Hold still once you apply.
- New debt. On the depletion path, added debt changes your debt-to-income ratio.
- Spending the down payment. The cash you put down no longer counts as usable assets. Plan the down payment before you run the numbers, not after.
Tax treatment can depend on how the funds are used and how the property is held; borrowers should keep clear records and speak with a qualified tax professional before relying on any deduction.
There is also a tradeoff worth stating plainly. Asset-based programs usually come with fewer lender choices and different terms than a standard conventional file. The flip point is simple: if your income is documentable and strong, a conventional loan may cost less. If it is not, the asset path may be the only practical one.
Key Terms Defined
Asset qualifier: a path where eligible assets, after credit percentages, must equal or exceed the whole loan.
Asset depletion: a path where usable assets divided by 60 months become qualifying monthly income.
Haircut: the share of an asset’s balance a lender will not count, applied to reduce risk.
Seasoning: the length of time money must sit in an account before it counts toward qualifying.
Debt-to-income ratio: your monthly debts, including the new housing payment, divided by your monthly income.
Pre-approval: a lender’s written conclusion, based on verified documents, of what you can borrow.
Frequently Asked Questions
Can I get pre-approved on assets without any income at all?
Yes, on the asset qualifier path, where no employment or income is documented and the lender relies on your eligible assets. The assets must equal or exceed the entire loan, and they must be seasoned and documented. Approval is subject to underwriting and credit review.
Can I use my 401(k) or IRA?
Yes, on both paths, though the credit differs. 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. Whether you actually withdraw the funds is a separate question from whether the balance counts.
Can I buy an investment property this way?
Only on the asset depletion path, at up to 65% on a purchase or rate-and-term refinance and 60% on a cash-out refinance. A first-time investor on that path needs a 700 credit score. For a rental held as a business, a DSCR loan is the usual alternative. Terms vary by lender guidelines, property type, leverage, credit profile, and full file review.
Will cryptocurrency or precious metals count?
Not directly. They are not published as eligible on either path. The documented route is selling them and holding the proceeds as a seasoned cash balance in a regulated account, with the source reviewed by the lender.
What credit score do I need?
The qualifier path has a 600 minimum score. Housing history is typically 0x30x12, with one recent 30-day late considered case by case.
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. A good first move is to list your accounts, note their balances and ages, and decide whether your balances cover the loan or must become income. Reach the team at 828-256-2183 or request a quote.
Lendmire’s asset-based mortgage in North Carolina page presents the program for North Carolina borrowers.
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
3. Cornell Legal Information Institute – 12 CFR 1026.43
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 Depletion Income Formula and Haircuts · How Asset Depletion Income Is Calculated From Your Portfolio · Asset Depletion vs Trust Income Documentation for a Beneficiary
Guides: Asset-Based Mortgage in North Carolina
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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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
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.