The Quick Read: A Texas borrower with large balances and little documented income can be pre-approved on assets through one of two paths, subject to underwriting. The asset qualifier path counts eligible assets against the whole loan and documents no employment or income. The asset depletion path divides usable assets by 60 months into qualifying income.
- Asset qualifier path: eligible assets must equal or exceed the entire loan, with up to 80% leverage on a purchase and 75% on a refinance.
- Asset depletion path: usable assets divided by 60 months become income that runs through the debt-to-income test.
- Credit: a 600 minimum score on the qualifier path; the depletion path follows the lender’s matrix.
- Documents: statements for every account, no traditional personal-income documentation, pay stubs or employment verification.
- Scope: consumer mortgage lending here is licensed in 16 states, Texas among them. Each figure is subject to lender guidelines and a complete review of property type, leverage, and credit.
Most of the files that fit this profile belong to a retiree, someone who just sold a business, or a household living off a portfolio. Balances are big. Paychecks are not. This piece walks through how underwriting treats that profile step by step. The two paths below never blend: a borrower is qualified on one at a time.
What Does Qualifying on Assets Actually Mean?
It means the lender looks at what you own instead of what you earn. Every file is fully underwritten. The difference is which documents carry the file: account statements instead of traditional personal-income documentation, pay stubs or employment verification.
Across the wholesale network, the asset-based mortgage program splits into two products. Lendmire’s asset-based mortgage programs are placed through select lenders, and Lendmire is the broker, not the lender. Pre-approval is a lender’s review of your documents and credit against a program. It is not a commitment to lend, and the final loan still goes through full underwriting.
One note on terms. “Qualifying on assets” is also loosely used for investor rental loans, where the property’s rent carries the file. That is a different product. This article covers the borrower-asset programs. A rental purchase that qualifies primarily on property-level rental income covering the payment is a DSCR loan, subject to lender guidelines.
Path One: The Asset Qualifier
The asset qualifier path covers the whole loan with eligible assets and documents no employment or income. If your usable assets equal or exceed the loan amount, the file is reviewed on assets alone, subject to underwriting.
Typical parameters through select programs:
- Leverage up to 80% on a purchase and 75% on a refinance, on a principal residence or second home.
- Loan amounts up to $4,000,000.
- A 600 minimum credit score.
- No reserves required at or below 75% loan-to-value; above that, the lender sets them.
- Cash-out terms on this path are set by the lender and are not published, so don’t plan around them. Leverage, reserves, and pricing vary by lender and program; the final terms follow the full file review.
Here is how the credit percentages work. Brokerage accounts, CDs, money market and savings count at 100%. Retirement accounts count at 90% under age 59½ and 100% at 59½ or older. Accounts combine.
Take an illustrative file: an $800,000 loan, with $330,000 in brokerage accounts (100% counts, so $330,000), $300,000 in a 401(k) held under 59½ (90%, so $270,000) and $200,000 in savings (100%, so $200,000). That is $800,000 of usable assets against an $800,000 loan. It is reviewed on assets alone, subject to underwriting. The lender’s own calculation governs.
Seasoning is where files stall. Expect 60 days of seasoning and two months of statements for every qualifying account.
Path Two: Asset Depletion
Asset depletion turns assets into income. Usable assets are divided by 60 months, and the result is qualifying income that must carry the full housing payment and your other debts through the debt-to-income test.
The haircuts are steeper here than on the qualifier path:
| 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% |
Illustrative math: $1,500,000 in securities counts at 80%, which is $1,200,000. Add $300,000 in cash at 100%. Usable assets total $1,500,000. Divided by 60 months, that is $25,000 of monthly qualifying income. That income then has to carry the housing payment and other debts through the debt-to-income test.
Other parameters, through select programs and subject to underwriting:
- Loans from $125,000 to $3,500,000.
- Leverage up to 80% on a purchase or rate-and-term refinance and 60% on a cash-out refinance, for a principal residence or second home. Cash-out proceeds never count as qualifying assets.
- Investment property is allowed on this path at up to 65% on a purchase or rate-and-term refinance and 60% on a cash-out. A first-time investor needs a 700 score.
- The borrower needs qualified assets of at least the lesser of $1,000,000 or 1.25 times the loan balance, and never below $250,000 liquid when depletion is the only income source.
- Asset income can also supplement documented income up to a 45% debt-to-income ratio. When it supplements, the minimum-assets rule is waived. Terms vary by lender guidelines, property type, leverage, credit profile, and full file review.
Which Path Fits?
Pick the qualifier path when your balances are large compared with the loan. Pick depletion when you want the loan sized to monthly income, or when you need an investment property or a larger loan amount than the qualifier path’s balance would support.
It’s a genuine judgment call at the margin. A borrower who is asset-rich but wants a 75% refinance often finds the qualifier path cleaner, because there is no debt-to-income math to fail. A borrower with a big portfolio and a modest loan will often clear either path, so the question becomes which leverage and credit rules fit.
What Doesn’t Count (Edge Cases That Break the Rule)
The percentages above apply only to the listed asset types. Several common holdings fall outside them.
- Not eligible 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.
- Cryptocurrency, precious metals, collectibles, pledged or borrowed funds: not published as eligible on either path. The documented route is converting them to a seasoned cash balance in a regulated account, with the lender reviewing the source. They never count at a percentage.
- Business accounts: only the borrower’s ownership share is considered.
- Borrowed funds: a loan against your portfolio, then deposited, is the classic way a file dies.
Credit has edges too. Housing history is 0x30x12, though one 30-day late in the last twelve months is considered case by case. Multiple bankruptcies are not eligible, and a housing event needs 4 years of seasoning on the depletion path.
Seasoning and Statements
Seasoning is the most common friction point on asset files. The assets are documented on both paths. “No income documentation” never means “no documentation.”
- Qualifier path: 60 days of seasoning and two months of statements per account.
- Depletion path: statements 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.
Practical consequence: moving money between banks right before applying resets the clock. A large deposit with no paper trail triggers a sourcing letter request. Retirees who plan to roll an IRA or sell a stock position should do it well before the application, not during it.
Your Pre-Approval Packet
Assemble these before you talk to a lender. Fewer gaps means fewer conditions.
1. Statements for every account you want counted, full pages, all pages.
2. Proof of age for retirement accounts, if the 59½ line matters to the percentage.
3. A source explanation for any large deposit.
4. Evidence of title or ownership for private stock or real-estate equity on the depletion path.
5. A credit authorization and a clear housing history.
6. Photo ID and the purchase contract, once you have one.
Texas Notes
Texas borrowers use the same program figures as everyone else. The state changes the context, not the parameters. Property taxes and homeowners insurance still sit inside the housing payment, so on the depletion path they directly affect how much of your derived income is left over. Budget for them by county; they vary widely.
Spouses matter on file mechanics. If funds are held jointly or in one spouse’s name, the lender decides whose assets count, so get every account owner identified up front.
Where the Texas Business-Purpose Line Falls
A loan for a rental or other business purpose is treated differently from a consumer mortgage. Federal rules carve out credit extended primarily for a business, commercial or agricultural purpose, as set out in Regulation Z § 1026.3. One attorney guide, Doss Law’s business-purpose exemption explainer, notes that if you expect to occupy the property more than 14 days in the coming year, the loan is treated as a consumer loan, with an exception for properties with more than two units.
What this means in practice: an asset-based loan on your home or second home is a consumer mortgage, and the lender must reasonably confirm you can repay it under the ability-to-repay provisions in § 1026.43. That is why the assets get reviewed and documented, and why TRID disclosures apply. Investment property on the depletion path is business-purpose.
Common Mistakes
- Moving funds mid-file and resetting seasoning.
- Counting crypto, unvested equity or pledged funds that the program does not list.
- Counting retirement balances at 100% on the depletion path, where the share is 70%.
- Forgetting that cash-out proceeds never count as qualifying assets.
- Assuming a high balance overrides credit rules. The score and housing history still apply.
- Blending paths: showing qualifier-path math on a depletion-path file.
Key Terms Defined
Asset qualifier: a path where eligible assets, after credit percentages, must equal or exceed the whole loan.
Asset depletion: a path that divides usable assets by 60 months into monthly qualifying income.
Seasoning: the length of time funds must sit in an account before they count.
Haircut: the share of a balance a program discounts because the asset is volatile or restricted.
Debt-to-income (DTI): monthly debts, including the new housing payment, compared with monthly qualifying income.
Pre-approval: a lender’s document-based review of your profile against a program, not a commitment to lend.
Frequently Asked Questions
Can I use a retirement account to qualify?
Yes, with different credit by path. On the qualifier path, 401(k) and IRA balances count at 90% under age 59½ and 100% at 59½ or older. On the depletion path they count at 70% at any age. Both are subject to underwriting.
Do I need a job or traditional personal-income documentation?
No traditional income documentation, pay stubs or employment verification are required. The assets are documented with statements, and credit is still reviewed. Every file is fully underwritten.
How much in assets do I need?
On the qualifier path, eligible assets must cover the entire loan. On the depletion path, you need qualified assets of at least the lesser of $1,000,000 or 1.25 times the loan balance, and never below $250,000 liquid when depletion is your only income source.
Can I buy an investment property this way?
Yes, on the depletion path only, at up to 65% on a purchase and 60% on a cash-out, with a 700 score for a first-time investor. The qualifier path is for a principal residence or second home. A rental that is reviewed on its own rent is a DSCR loan, a separate product.
Does it work if I’m self-employed with heavy write-offs?
Often, if your balances are large. The depletion path can also supplement documented income up to a 45% debt-to-income ratio. If you document income with deposits instead, a bank statement program fits that profile.
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. Figures here are ceilings and floors, not offers.
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. Doss Law – Business Purpose Exemption Simplified
3. eCFR – 12 CFR Part 1026 Subpart E (§ 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: Can You Refinance a Michigan Home on Assets When Your Income Stops? · Can You Relocate to Florida and Buy a Home on Assets Before You Have Local Income? · Can You Relocate to Tennessee and Buy a Home on Assets Before You Have Local Income?
Guides: Asset-Based Mortgage in Texas
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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Required disclosures. Lendmire (NMLS# 2371349) operates as a licensed mortgage broker, not a direct lender or depository. The discussion in this article is general in nature and should not be relied upon as financial, legal, or tax advice — every investment scenario is unique and should be reviewed by a qualified professional. Any loan inquiry is subject to lender underwriting, and this article is not a commitment to lend or a guarantee of approval. Mortgage rates, loan terms, and program guidelines vary by borrower, property, and state, and may change without notice. Equal Housing Opportunity. Verify licensure at NMLS Consumer Access.