The Quick Read: Pennsylvania borrowers with large balances and little documented income can qualify on one of two asset-based paths: assets that cover the whole loan outright, or assets divided by 60 months into a monthly qualifying income, with statements, credit and the property reviewed in full and no traditional personal-income documentation, pay stubs or employment verification. Which path fits depends on how large your balances are compared with the loan.
- Qualifier path: eligible assets must equal or exceed the entire loan. Income and employment are not documented.
- Depletion path: usable assets divided by 60 months become qualifying income, which then runs through the debt-to-income test.
- Documents: every qualifying account needs statements. The file is fully underwritten.
- Leverage and credit: both vary by path, occupancy and the lender’s matrix. All figures are subject to underwriting and are not a commitment to lend.
Does Pre-Approval on Assets Really Skip Income?
It skips income documentation. It does not skip documentation. That distinction trips up most people who search this topic.
Picture a retired couple outside Philadelphia, a business owner who just sold a company near Pittsburgh, or someone who lives off a portfolio and keeps a second home in the Poconos. Their balances are large. Their traditional personal-income documentation shows little. A standard bank looks at that file and sees a low paycheck.
An asset-based mortgage reads the same file differently. The lender asks what you hold, how long you have held it, and whether it can carry the loan. Your bank, brokerage and retirement statements do the work that pay stubs would do for an employee.
Every file is fully underwritten. Credit, the property and the source of your funds all get reviewed. Lendmire is a broker, so it places these files with select lenders in its network. Those lenders make the decision. Lendmire’s consumer mortgage lending is licensed in 16 states, Pennsylvania among them, and the figures here do not change by state.
The full program is on Lendmire’s asset-based mortgage program page.
Key Terms Defined
Asset qualifier path: a way to qualify where your eligible assets, after the credit percentages below, must equal or exceed the whole loan amount.
Asset depletion path: a way to qualify where eligible assets are converted into a monthly income figure. Usable assets are divided by 60 months.
Seasoning: how long money has sat in your account. Lenders use it to confirm the funds are really yours and not a recent loan.
Debt-to-income (DTI): your monthly debts, including the new housing payment, compared with your monthly income. On the depletion path, the derived income is the income in that test.
Haircut: the share of a balance a lender does not count. A balance counted at 80% has a 20% haircut.
Pre-approval: a lender’s written review of your documents and credit that sets what you may be able to borrow. The final loan still depends on the property and on underwriting.
Which Path Fits You?
You are qualified on one path at a time. The two paths never blend. The right one usually depends on one question: do your assets cover the whole loan, or must they be turned into income?
| Factor | Asset Qualifier | Asset Depletion |
|---|---|---|
| Core test | Assets cover the entire loan | Assets ÷ 60 = monthly income |
| Income documented | None | Derived, runs through DTI |
| Loan amounts | Up to $4,000,000 | $125,000 to $3,500,000 |
| Occupancy | Principal home, second home | Also investment property |
| Credit | 600 minimum | Lender’s matrix |
If your usable assets exceed the loan, the qualifier path is cleaner. There is no income math and no DTI test. The lender’s review rests on the assets.
If your assets are large but fall short of the loan amount, the depletion path may fit. It turns a portfolio into a monthly income figure. That figure must carry the housing payment and your other debts.
How Underwriting Treats Your Assets, Step by Step
Here is the sequence on most files.
1. Pick the path. A broker compares your balances with the target loan and chooses the path that fits. You are on only one.
2. Pull statements. Every account you want counted needs statements. Include every page, since lenders check for blank pages and hidden transfers.
3. Apply the credit percentages. Each asset type counts for a share of its balance. The shares differ by path.
4. Check seasoning. The funds must have aged long enough in your account. The window is different on each path.
5. Run credit and the property. Credit is pulled. The property is appraised and reviewed like any other collateral.
6. Underwrite. The lender reviews everything together. A pre-approval letter reflects that review of your documents. This is not a commitment to lend.
A worked qualifier example
These numbers are illustrative. The lender’s own calculation governs.
Say you want an $800,000 loan on the qualifier path. You hold $330,000 in brokerage accounts, $300,000 in a 401(k) and $200,000 in savings. You are under age 59½.
- Brokerage counts at 100%, so $330,000 counts.
- The 401(k) counts at 90% under 59½, so $270,000 counts.
- Savings counts at 100%, so $200,000 counts.
Usable assets total $800,000. That equals the loan, so the file is reviewed on assets alone, subject to underwriting. If you were 59½ or older, the 401(k) would count at 100%. Either way, this is a purchase at up to 80% loan-to-value or a refinance at up to 75%, on a principal residence or second home.
A worked depletion example
Now say you hold $1,500,000 in securities and $300,000 in cash, and you are on the depletion path.
- Securities count at 80%, so $1,200,000 counts.
- Cash counts at 100%, so $300,000 counts.
Usable assets are $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. A big portfolio does not automatically clear that test. A large mortgage on top of other debts can still fail it.
What Counts, and at What Percentage
Percentages differ by path. Do not read one column as if it applied to the other.
| Asset | Qualifier Path | Depletion Path |
|---|---|---|
| Brokerage, securities | 100% | 80% |
| Cash, savings, money market | 100% | 100% (cash accounts) |
| Certificates of deposit | 100% | 100% |
| 401(k), IRA | 90% under 59½, 100% at 59½+ | 70% at any age |
| Private stock | Not listed | 75% |
| Real-estate equity | Not listed | 60% |
On the depletion path, several things do not count: 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 to convert them into a seasoned cash balance in a regulated account. The lender reviews the source of that money. Plan for that step well before you apply.
Seasoning and Large Deposits
Seasoning is where otherwise strong files stall.
On the qualifier path, funds need 60 days of seasoning. You provide two months of statements for each qualifying account. On the depletion path, statements must be at least 120 days old at application. You also need the most recent statement dated within 45 days.
A fresh transfer between your own accounts gets questioned. So does a large deposit that has no paper trail. Sort out the source before you apply. Keep the sale documents, the settlement letter or the inheritance paperwork.
On the depletion path, funds from the sale of a business, an inheritance or a legal settlement are excused from the seasoning window. They are not excused from documentation. The lender still wants to see where the money came from.
Principal Homes, Second Homes and Rentals in Pennsylvania
Most Pennsylvania borrowers use this for a principal home or a second home. Both work on either path, subject to underwriting. Investment property is different. It is available only on the depletion path, and the loan is business-purpose.
Business-purpose treatment depends on facts, not labels. The CFPB’s exempt-transactions rule covers credit extended primarily for a business purpose. It also treats credit to acquire rental property that is not owner-occupied as business-purpose credit. Move into the property for part of the year and that presumption weakens. Tell your broker how you plan to use the property.
Pennsylvania lenders and brokers are regulated by the state’s Department of Banking and Securities. That is useful to know when you check anyone you are working with. It is not legal advice, and it does not change the program figures.
If your goal is a pure rental purchase that is reviewed on the rent and not on your balances, a different product usually fits. Business-purpose rental financing is DSCR, which qualifies primarily on property-level rental income covering the payment, subject to lender guidelines. Asset-based qualification is for the reader who wants to use personal balances as the qualifying source.
Leverage and Credit Limits
These are ceilings, not offers. Each carries path, occupancy and transaction type.
Asset qualifier path:
- Up to 80% loan-to-value on a purchase of a principal residence or second home.
- Up to 75% on a refinance of a principal residence or second home.
- Cash-out terms on this path are set by the lender and are not published.
Asset depletion path:
- Up to 80% on a purchase or rate-and-term refinance of a principal residence or second home.
- Up to 60% on a cash-out refinance of a principal residence or second home.
- Up to 65% on a purchase or rate-and-term refinance of an investment property.
- Up to 60% on a cash-out refinance of an investment property.
- Cash-out proceeds never count as qualifying assets.
Credit works the same way. The qualifier path has a published 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 score. Housing history is expected to run 0x30x12, though one 30-day late payment in the past twelve months is considered case by case. Multiple bankruptcies are not eligible. After a housing event on the depletion path, four years of seasoning is required.
On reserves, the qualifier path requires none at or below 75% loan-to-value. Above that, the lender sets them. The depletion path has no published reserve months.
Where the General Rule Breaks
Most files fit the pattern above. These do not.
Your down payment can shrink your pool. Money used for the down payment and closing costs generally cannot count twice. Ask the lender how it nets those funds before you transfer anything. Moving cash into a purchase and then asking the same cash to qualify you is a trap.
Retirement accounts count differently. Under 59½, a 401(k) or IRA counts at 90% on the qualifier path. After that age it counts at 100%. On the depletion path it counts at 70% regardless of age. You do not have to withdraw the money. It is documented with statements.
Depletion has minimums. Qualified assets must be at least the lesser of $1,000,000 or 1.25 times the loan balance. They must never fall below $250,000 liquid when depletion is the only income source. If you also have documented income, asset-derived income can supplement it up to a 45% debt-to-income ratio. When it supplements, the minimum-assets rule is waived.
Down-payment assistance programs can cut against you. Many assistance programs set their own limits on assets. Check before assuming a state program will fit an asset-heavy file.
Borrowed or pledged funds do not count. If the money is a loan or secured against something else, expect it to be excluded.
Partial ownership limits business accounts. Business accounts count only to the extent of your ownership share, and they are not published as eligible assets on either path.
What Pre-Approval Looks Like in Practice
A typical file starts with a short conversation about your balances, the property type and your goal. From there the broker proposes a path and tells you what documents to gather.
Gather the following:
- Statements for every account you want counted, all pages, with your name on them.
- A written source for any large deposit.
- Government ID and credit authorization.
- Details on the property, if you have one in mind.
- Retirement account statements, if you are counting them.
The most common mistakes are avoidable. Borrowers move funds just before applying and break seasoning. They count balances the program does not accept. They assume a big portfolio clears the debt-to-income test without running it. And they start house hunting before they know which path they are on.
A pre-approval letter is a record of review at one point in time. If markets move before closing, your balances change, and balances drive qualification. Brokerage values that drop can shrink what counts. Ask early how re-verification works on your file.
Tax treatment varies by situation; consult a qualified tax professional before relying on any deduction.
Whether a seller reacts differently to an asset-based letter depends on the agent and the market. Present it with the same cover note you would use for any letter. State the loan amount, the leverage and the path. Let the paperwork carry the file.
Frequently Asked Questions
Is this the same as a no-doc loan?
No. Every file is fully underwritten, and your assets, credit and property are documented. What you skip is traditional personal-income documentation, pay stubs and employment verification. Statements replace them.
Do I have to sell my investments to qualify?
No. Your assets are documented, not liquidated. On the depletion path they are converted on paper into a qualifying income figure, and you keep them. Money you use for the down payment or closing costs is a separate matter and leaves your accounts.
Can retirement accounts count toward qualifying?
Yes. On the qualifier path, a 401(k) or IRA counts at 90% under age 59½ and at 100% at 59½ or older. On the depletion path it counts at 70% at any age. Either way, you provide statements, and the lender reviews them as part of underwriting.
Can I use this for a second home?
Yes, a second home is available on both paths, subject to underwriting. Leverage is up to 80% on a purchase on the qualifier path. It is up to 80% on a purchase or rate-and-term refinance on the depletion path, and 60% on a cash-out refinance there.
Can I buy a rental with this?
Only on the depletion path. Investment property is capped at 65% on a purchase or rate-and-term refinance and 60% on a cash-out refinance. The loan is business-purpose. Many investors whose goal is a pure rental purchase find that DSCR financing fits better.
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.
Philadelphia’s suburbs, Pittsburgh and the Poconos all reward the buyer who knows which path they are on before they make an offer.
About Lendmire
Lendmire (NMLS# 2371349) is a mortgage broker licensed for consumer lending in 16 states. Bank statement, P&L-only, 1099-only and asset-based mortgages for self-employed and high-net-worth borrowers are arranged through wholesale lenders on primary residences, second homes and investment properties; every file is underwritten by the lender under its program guidelines. Scotsman Guide named Lendmire a Top Mortgage Workplace in both 2025 and 2026.
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References
1. CFPB, Regulation Z §1026.3 Exempt Transactions
2. Pennsylvania Department of Banking and Securities, Non-Bank Licensees
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 Buy a Second Home in Georgia on Assets Instead of Income? · How Much Does a Michigan Retiree Need in Assets to Buy a Home Without Income? · How Much Does a California Retiree Need in Assets to Buy a Home Without Income?
Guides: Asset-Based Mortgage in Pennsylvania
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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Disclosures. The information presented in this article is general market commentary, not financial, legal, or tax advice. Lendmire is a mortgage brokerage (NMLS# 2371349) — not a direct lender or depository institution — and loan placement is subject to lender underwriting. Nothing in this content represents a commitment to lend. Loan terms, pricing, and program availability vary based on borrower qualifications, property characteristics, and state of subject property, and are subject to change at any time. Lendmire complies with Equal Housing Opportunity requirements. Consumer access: nmlsconsumeraccess.org.