The Quick Read: You get pre-approved on assets by picking one of two paths: the asset qualifier path, where eligible balances cover the whole loan, or the asset depletion path, where balances convert into monthly qualifying income, with no traditional personal-income documentation, pay stubs or employment verification. Every file is still fully underwritten, and your assets are documented with statements.
- Asset qualifier path: your eligible balances, after the credit percentages, 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 that runs through a debt-to-income test.
- You use one path at a time. Lendmire, a mortgage broker, places the file with select lenders in its network, subject to underwriting.
- Statements carry the file. Expect two months of statements per account on the qualifier path, and older plus recent statements on the depletion path.
- Virginia is one of 16 states where Lendmire’s consumer mortgage lending is licensed. The program figures below do not change by state.
What Does Pre-Approval on Assets Actually Mean?
A pre-approval on assets is a written lender review of your credit, your documented balances and the loan you want. It states what you can borrow, subject to underwriting and an acceptable property. It is stronger than a pre-qualification, which is usually a quick conversation based on what you say.
The difference matters when you make an offer. A seller reads a pre-approval as proof that someone has looked at your statements. A pre-qualification proves very little.
Here is what changes when assets replace income. The lender does not ask for traditional personal-income documentation, pay stubs or employment verification. It asks for account statements, a credit review and, later, the appraisal and title work. That is a full file, just built from different paper.
For a Virginia borrower with a large portfolio and little reported income, that is often the whole point. Think of a retiree living on investments, a business owner who just sold, or someone who received an inheritance or settlement. Lendmire’s asset-based mortgage programs are built for that profile. Through select programs, the lender looks at what you hold, not what you earned last year.
This article goes deeper on the mechanics.
Key Terms Defined
Asset qualifier path: a way to qualify where eligible assets, after credit percentages, equal or exceed the whole loan amount, with no income documented.
Asset depletion path: a way to qualify where usable assets are divided by 60 months to create a monthly qualifying income.
Loan-to-value (LTV): the loan amount as a percentage of the property’s value or price.
Haircut: the share of an account balance the lender does not count, because the asset can lose value or is harder to reach.
Seasoning: how long money has sat in your account, shown by statements, before it counts.
Debt-to-income (DTI): your monthly debts, including the new housing payment, compared with your monthly qualifying income.
Pre-approval: a lender’s written review of your credit and documented assets for a specific loan size, still conditional on the property and final underwriting.
Which Path Fits You?
Pick the qualifier path if your eligible balances can cover the whole loan outright. Pick the depletion path if they cannot, or if the property is an investment property. The path decides the leverage, the credit rules and the documents you need.
| Factor | Asset qualifier path | Asset depletion path |
|---|---|---|
| Core test | Assets cover the entire loan | Assets become income, then DTI |
| Income documented | None | Derived from assets |
| Property types | Principal residence, second home | Also investment property |
| Loan size | Up to $4,000,000 | $125,000 to $3,500,000 |
| Credit floor | 600 minimum score | The lender’s matrix |
Two borrowers show the split. A couple in Northern Virginia sells a business and holds seven figures across brokerage and savings accounts. They want a home loan below their total balances. The qualifier path may fit, because the balances cover the loan and no income is documented.
A retired professional in Hampton Roads holds a large portfolio but wants a loan that is big relative to it. Their balances may not cover the loan outright. The depletion path turns those balances into income, and the debt-to-income test decides the rest.
You do not get to blend the two. A file is qualified on one path or the other, and the lender will tell you which one it is reviewing.
Which Assets Count, and How Much?
Each account type counts at a set percentage of its balance, and the percentages differ by path. Cash-like accounts count in full on both paths. Retirement accounts and securities are where the haircuts show up.
Asset qualifier path (share of the balance that counts):
| Asset type | Counts at |
|---|---|
| Brokerage accounts | 100% |
| Certificates of deposit | 100% |
| Money market and savings | 100% |
| 401(k) and IRA, under age 59½ | 90% |
| 401(k) and IRA, age 59½ or older | 100% |
Accounts combine, so you can add them together toward the loan amount.
Asset depletion path (share of the balance that counts):
| Asset type | Counts at |
|---|---|
| Cash accounts | 100% |
| Certificates of deposit | 100% |
| Securities | 80% |
| Private stock | 75% |
| Retirement accounts, any age | 70% |
| Real-estate equity | 60% |
Some assets do not count on the depletion path at all. That list covers 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, and business accounts beyond your ownership share 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 then reviews where that money came from. Do not count on them at any percentage.
Retirement accounts deserve one extra note. You do not need to withdraw the money for it to count. The lender reviews the balance on the statement. 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.
How the Math Works
On the qualifier path, you add up the credited balances and compare them with the loan. On the depletion path, you add up the credited balances, divide by 60 and test the resulting income against your debts. These examples are illustrative, and the lender’s own calculation governs.
Qualifier path example. Say you want an $800,000 loan. You hold $330,000 in brokerage accounts, which count at 100%, so $330,000. You hold $300,000 in a 401(k) and you are under 59½, which counts at 90%, so $270,000. You hold $200,000 in savings, which counts at 100%, so $200,000. That is $800,000 of usable assets against an $800,000 loan, so the file is reviewed on assets alone, subject to underwriting.
Depletion path example. Say you hold $1,500,000 in securities, which count at 80%, so $1,200,000. You also hold $300,000 in cash, which counts at 100%, so $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 has to carry the housing payment and your other debts through the debt-to-income test.
Notice what drives the result on the depletion path. The 60-month divisor and the haircuts do most of the work. A different program can use a different divisor and reach a different answer from the same balances. That is why comparing programs matters, and why a broker who sees several lenders’ guidelines can be useful.
Step by Step: Getting the Letter
The process runs in a set order. Skipping ahead is the most common way to stall a file.
1. Decide which accounts you will use. List every account, its owner, its type and its balance. Joint accounts, trusts and business accounts each raise ownership questions, so list those separately.
2. Check the percentages. Apply the credit percentages for the path you expect to use. Add them up before you talk to anyone.
3. Pull your statements. Gather two months for each account on the qualifier path. On the depletion path, gather a statement at least 120 days old plus the most recent one.
4. Share your credit picture. Be ready for the lender’s credit review. Mention any late payment, housing event or bankruptcy now, not later.
5. Name the property type and use. Principal residence, second home and investment property follow different rules. Say which one you are buying.
6. Pick the path and the loan size. Your broker compares programs against your balances and goals, and recommends a path.
7. Submit the file for review. The lender reviews assets, credit and the proposed loan, then issues the pre-approval if the file supports it.
8. Make the offer, then complete underwriting. The appraisal, title and a final asset review follow once you have a contract.
No part of this works if you move money around in the middle. Keep your accounts steady until the loan is done.
Seasoning, Sourcing and Funds to Close
Seasoning is where asset files most often trip. The lender wants to see that the money was yours and was stable.
On the qualifier path, funds need 60 days of seasoning, shown by 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. Funds from the sale of a business, an inheritance or a legal settlement are excused from that depletion-path seasoning. The lender still reviews where they came from.
Here is a practical example. A large deposit that appears from nowhere draws questions. A deposit from a business sale, backed by a closing statement, usually draws fewer. Keep the paper that explains any big movement.
Now consider funds to close. The money you use for a down payment and closing costs should be treated separately from the balances you use to qualify. Lenders generally do not count the same dollars twice, so plan to qualify with balances that remain after you set aside cash to close. Your broker will run that split against the lender’s calculation.
Cash-out proceeds never count as qualifying assets on the depletion path. You cannot borrow against the house and then use that cash to qualify for the same loan.
Leverage, Credit and Loan Size
The leverage you can use depends on the path, the transaction and the occupancy. These figures are ceilings, subject to underwriting, never offers.
- Asset qualifier path: up to 80% LTV on a purchase and 75% on a refinance, for a principal residence or second home. Cash-out terms on this path are set by the lender and are not published.
- Asset depletion path, principal residence or second home: up to 80% on a purchase or rate-and-term refinance and 60% on a cash-out refinance.
- Asset depletion path, investment property: up to 65% on a purchase or rate-and-term refinance and 60% on a cash-out refinance. The exact numbers vary by lender and program and follow a full review of property, leverage, and credit.
Credit still counts. 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 a 700 score.
Housing history is reviewed closely. The standard is 0x30x12, meaning no 30-day late payments in the last twelve months. One 30-day late in that window is considered case by case. Multiple bankruptcies are not eligible. A housing event, such as a foreclosure, needs 4 years of seasoning on the depletion path.
Reserves differ by path. On the qualifier path, none are required at or below 75% LTV, and above that the lender sets them. The depletion path has no published reserve months. Final terms depend on the lender’s guidelines, the property type, and the borrower’s complete credit picture.
The depletion path also has a minimum-assets test. You need qualified assets of at least the lesser of $1,000,000 or 1.25 times the loan balance. When asset depletion is your only income source, you need no less than $250,000 in liquid assets. If you also have documented income, asset-derived income can supplement it up to a 45% debt-to-income ratio, and the minimum-assets rule is waived.
Where the General Rule Breaks
The rules above hold for most files. These are the places they bend.
Investment property pushes you onto the depletion path. The qualifier path covers a principal residence or second home. If you want to buy a rental, the depletion path is the one that applies, with lower leverage. Investment-purpose loans are treated as business-purpose, which the Federal Register’s final rule text places outside the consumer ability-to-repay rules. That label depends on how you actually use the home, so occupancy matters.
Occupying the property can change the classification. One law firm’s business-purpose guide says a loan is treated as consumer purpose if you expect to occupy the property for more than 14 days in the coming year. The exception is a property with more than two units. If you plan to live in it, tell your broker, and the file is built as a home loan.
Consumer versions carry a repayment check. On a principal residence or second home, the loan is a consumer mortgage and the standard consumer loan disclosures apply. A lender must also make a reasonable, good-faith check that you can repay, as Nolo’s ability-to-repay explainer describes. On the qualifier path, that review rests on your assets.
Retirement age changes the credit. Under 59½, a 401(k) or IRA counts at 90% on the qualifier path. At 59½ or older, it counts at 100%. On the depletion path, retirement accounts count at 70% at any age.
Ineligible assets do not count, even if they are large. A big balance in a foreign account, a pile of unvested stock units or cash held outside an account adds nothing on the depletion path. Convert eligible assets early if you can.
Weak credit can end the conversation. Assets do not erase a recent late payment, a housing event inside the seasoning window or multiple bankruptcies.
Is Assets-Only the Right Tool?
Assets-only qualification is the right tool when your balances are large and your documented income is small or hard to read. It is the wrong tool when your income documents cleanly, or when you are buying a rental that carries its own income. Compare programs by who they fit best. These rows describe each program’s own rules, not this program’s.
| Program | Best when |
|---|---|
| Asset-based mortgage | Big balances, little documented income |
| Bank statement loan | You document income with deposits |
| DSCR loan | Rental rent covers the property’s payment |
| Conventional loan | Pay stubs and traditional personal-income documentation shows strong income |
A bank statement program is for borrowers who document income with business or personal deposits. If you run a business with steady deposits, that route may fit better than depleting assets on paper. Business-purpose rental financing is DSCR, where the property’s rent covers its payment and your personal income is not the test. Conventional lending, as big banks and other large retail lenders offer it, relies on pay stubs and traditional income documentation.
This is a real decision, not a formality. A retiree with steady deposits and a rental in mind might compare all four before picking one.
Mistakes to Avoid
- Moving money before you apply. Transfers between accounts create new seasoning questions. Leave balances where they are.
- Selling investments you do not need to sell. Securities and retirement accounts count at their credit percentages while still invested. Liquidating can trigger consequences you did not plan for.
- Counting the same dollars twice. Cash to close and qualifying balances are separate pools in practice.
- Assuming crypto or collectibles count. They do not, at any percentage, until converted to seasoned cash.
- Shopping the wrong path. Applying on the qualifier path for an investment property wastes effort. Know the occupancy first.
- Treating the pre-approval as final. It is conditional on the property, a final asset check and underwriting.
Frequently Asked Questions
Can I get a mortgage with no income at all?
You can qualify without documenting income, but not without documentation. On the asset qualifier path, no employment or income is documented, and your balances must cover the loan. You still provide statements, credit is reviewed and the file is fully underwritten, subject to lender guidelines.
Can I use my 401(k) or IRA?
Yes, through select programs. 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. You are not required to withdraw the money for it to count.
What is the difference between pre-qualification and pre-approval on assets?
Pre-qualification is an informal estimate from what you tell a lender. Pre-approval is a written review of your credit and documented statements for a specific loan size. It is still conditional on the property and final underwriting, so it is stronger than pre-qualification but not a commitment to lend.
Can I combine some documented income with my assets?
Yes, on the depletion path. Asset-derived income may supplement documented income up to a 45% debt-to-income ratio. When it supplements, the minimum-assets rule is waived. You still have to meet the credit and leverage rules that apply to your property.
Do I actually spend my assets to qualify?
No. The lender counts your balances at a set percentage, and you keep them. The depletion path only divides them over 60 months to create a coverage figure. Down payment and closing costs do come out of your funds, so qualify with what remains.
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. Start by listing your accounts and their balances, then bring them to the conversation. Programs change, and every file is underwritten individually.
Lendmire’s asset-based mortgage in Virginia page presents the program for Virginia borrowers.
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 tax returns understate their income, and each application is reviewed individually by the lender. 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
1. Federal Register — final rule on ability-to-repay and qualified mortgage standards
2. Doss Law — business purpose exemption guide
3. Nolo — ability-to-pay mortgage rules explainer
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? · Can You Buy a Virginia Rental Property on Asset Depletion Income? · Can You Relocate to Florida and Buy a Home on Assets Before You Have Local Income?
Guides: Asset-Based Mortgage in Virginia
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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- Lendmire LLC · Firm NMLS# 2371349 · Verify firm licensure
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.