The Quick Read: You get pre-approved on assets by choosing one of two paths through select lenders. Either your eligible balances cover the whole loan outright, or they are divided over 60 months into a monthly qualifying income that carries the payment. Either way, the lender documents and reviews every account, and approval stays subject to underwriting.
- Asset qualifier path: eligible assets must equal or exceed the entire loan, and no employment or income is documented.
- Asset depletion path: usable assets divided by 60 months become qualifying income that runs through the debt-to-income test.
- Pick one path: a borrower is qualified on one path at a time, and the two tables of figures never blend.
- Documentation: you still provide statements, credit authorization and a sourcing story for large deposits.
- Credit: a credit review still happens, so this is never a no-credit-check loan.
What “Pre-Approved on Assets” Actually Means
Pre-approval on assets means a lender has reviewed your balances, your credit and the loan you want, and states in writing what it is willing to lend, subject to underwriting. The difference from a paycheck-based approval is only what the lender measures. It measures what you own instead of what you earn.
Plenty of borrowers fit this profile. Think of a retiree living on a portfolio, someone who just sold a business, or an heir who received a settlement. Their balances are large and their documented income is small, so a pay-stub model turns them down.
A word on scope. This article covers the asset-based consumer mortgage, meaning a loan on a principal residence or second home, plus investment property on one of the two paths. Lendmire arranges these through select lenders in its network, in 16 states: Alabama, California, Colorado, Florida, Georgia, Indiana, Michigan, Montana, New Mexico, North Carolina, Ohio, Pennsylvania, Tennessee, Texas, Virginia and Washington. A pure rental purchase often fits a different product, which a later section covers.
Path One: Assets Cover the Whole Loan
On the asset qualifier path, the credited value of your accounts must equal or exceed the entire loan amount. The lender does not ask for employment or income. It asks whether your balances could repay the loan on their own.
Across the programs we place files with, this path allows up to 80% loan-to-value (LTV, the loan as a share of the home’s value) on a purchase. It allows up to 75% on a refinance of a principal residence or second home. Loan amounts run up to $4,000,000, subject to underwriting. Whether cash-out proceeds are allowed on this path is set by the lender and is not published, so ask before you plan around it.
Here is how much of each balance counts on this path:
| Asset type | Share that counts |
|---|---|
| Brokerage accounts | 100% |
| Certificates of deposit | 100% |
| Money market and savings | 100% |
| 401(k) and IRA, under age 59½ | 90% |
| 401(k) and IRA, 59½ or older | 100% |
Accounts combine. Take an $800,000 loan. You hold $330,000 in brokerage accounts (100% counts, so $330,000), $300,000 in a 401(k) while under 59½ (90%, so $270,000) and $200,000 in savings (100%, so $200,000). That totals $800,000 of usable assets, which matches the loan, so the file is reviewed on assets alone. The lender’s own calculation governs, and this is illustrative.
Credit still matters. The published floor on this path is a 600 score. Housing history is typically 0x30x12, though one 30-day late in the last twelve months is considered case by case. Reserves are not required at or below 75% LTV. Above that, which includes an 80% purchase, the lender sets them.
Path Two: Assets Become Income
On the asset depletion path, the lender totals your eligible assets after haircuts, divides by 60 months, and treats the result as monthly income. That income must carry the housing payment and your other debts through the debt-to-income (DTI) test. A haircut is the percentage of a balance the lender refuses to count.
Take $1,500,000 in securities, which count at 80%, so $1,200,000. Add $300,000 in cash at 100%. Usable assets are $1,500,000. Divided by 60 months, that is $25,000 of monthly qualifying income. The housing payment and other debts then have to fit inside the DTI limit. Again, the lender’s calculation governs.
Haircuts on this path:
| Asset type | Share that counts |
|---|---|
| Cash accounts and CDs | 100% |
| Securities | 80% |
| Private stock | 75% |
| Retirement accounts (any age) | 70% |
| Real-estate equity | 60% |
Leverage on the depletion path depends on the property:
- Principal residence or second home: up to 80% on a purchase or rate-and-term refinance, and 60% on a cash-out refinance.
- Investment property: up to 65% on a purchase or rate-and-term refinance, and 60% on a cash-out refinance.
- Cash-out proceeds: they never count as qualifying assets.
Loan amounts run from $125,000 to $3,500,000, subject to underwriting. Credit follows the lender’s score and loan-amount matrix. A first-time investor on this path needs a 700 score. A housing event such as a foreclosure needs four years of seasoning, and multiple bankruptcies are not eligible.
Minimum assets are strict. 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, never less than $250,000 can be liquid. The 60-month divisor stays fixed across the file, so a bigger portfolio is the only lever that raises your income figure.
Which Path Fits You?
Pick the qualifier path when your balances are big relative to the loan. If a lender can count assets equal to the whole loan, you skip the income test altogether. Pick the depletion path when your assets are large but do not match the loan, or when you want investment property financing.
| Factor | Asset qualifier | Asset depletion |
|---|---|---|
| What is tested | Assets vs. the whole loan | Derived income vs. DTI |
| Income documented | None | Derived from assets |
| Investment property | Not offered | Yes, at lower leverage |
| Statement rule | 60 days seasoning | Statements 120+ days old |
| Retirement credit | 90% / 100% by age | 70% at any age |
Mixed income is a third case. If you have some documented income, asset-derived income may supplement it up to a 45% DTI ratio. When it supplements, the minimum-assets rule is waived. A person drawing a small pension and holding a large brokerage account is the typical fit.
Lendmire’s piece How to Qualify for a Jumbo Loan for Qualifying on Assets Instead of Income covers the borrower-side basics if you want a second pass.
How Underwriting Treats Your Accounts, Step by Step
Underwriting follows a repeatable order. Knowing it lets you prepare in the same order.
1. Choose the path. The loan officer compares your balances against the loan size and property type. Most programs we see price and size these files differently, so one balance sheet can produce different results at different lenders.
2. Credit review. The lender reviews your credit and housing history. Expect a credit pull.
3. Apply credit percentages. Each account is scored at the share that counts, using the tables above.
4. Check seasoning. On the qualifier path, funds need 60 days of seasoning and two months of statements per 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.
5. Source the deposits. Any large, out-of-pattern deposit needs an explanation backed by paper.
6. Appraise and underwrite the property. The pre-approval letter stays conditional on this step.
Seasoning means the funds have sat in your account long enough to be treated as yours. It is the reason a transfer made the week before applying causes trouble.
Pre-Qualification vs. Pre-Approval on Assets
A pre-qualification is a quick conversation based on what you tell the lender. A pre-approval means documents were actually reviewed. For an asset-based borrower, the review is the statements themselves, plus credit.
The letter states a loan amount and the program path, and it carries conditions. It does not guarantee a closing. The appraisal, final underwriting and the absence of changes to your balances all stay in play. Sellers and agents generally read an asset-based letter the same way as any other, because the amount and the lender’s conditions are what they check. Ask your loan officer to word the letter clearly with the path named.
Moving money after pre-approval is the most common way a file breaks. A sale of securities, a new loan against an account or a large withdrawal changes the numbers the lender relied on. Tell the loan officer before you move anything.
What Does Not Count (and the Fix)
Several asset classes are not published as eligible on either path. These are cryptocurrency, precious metals, collectibles, business accounts beyond your ownership share, and pledged or borrowed funds. The documented route is converting them to a seasoned cash balance in a regulated account, with the source reviewed by the lender.
The depletion path also excludes 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. Cash in a safe is not an asset to a lender, because nobody can verify it.
Non-QM does not mean anything goes. Accredited Real Estate Schools makes the same point, noting that these asset-based products still follow documented rules. The assets are documented on both paths. Skipping income documents never turns into skipping documents altogether.
You also do not have to sell your investments. You document them, and they stay where they are.
Where the General Rule Breaks
Several situations bend the pattern above. Each one is worth knowing before you apply.
Investment property. The qualifier path is for principal residences and second homes. Investment property sits only on the depletion path, at the lower leverage shown earlier. That is a real cost for a rental buyer, so compare it with the rental-income route below.
Joint accounts and combined balances. On the qualifier path, accounts combine. Whose names are on each account, and whether a trust holds the assets, is for the lender to confirm. Raise it at the start rather than discovering it during underwriting.
Cash-out on the depletion path. Leverage drops to 60%, and the proceeds cannot be counted as qualifying assets. Do not plan on funding your own reserves with the loan.
Credit events. A housing event needs four years of seasoning on the depletion path. Multiple bankruptcies are not eligible.
Declined despite wealth. The usual causes are retirement balances credited below face value, unseasoned deposits, an asset class that is not eligible, or a score below the matrix. Each has a fix. Season the funds, convert the asset to cash in a regulated account, or restructure to a lower LTV.
Pure Rentals: When a Different Product Fits Better
If you are buying a rental and want to qualify without personal income documents, the better fit is usually a DSCR loan. DSCR stands for debt service coverage ratio, which is the rent divided by the monthly obligation (principal, interest, taxes, insurance and dues). It qualifies primarily on property-level rental income covering the payment, subject to lender guidelines. Your assets then serve as proof of cash to close and reserves, not as income. Programs below 1.00 coverage are available through select lenders in the network, though LTV and terms adjust.
DSCR loans are designed for non-owner-occupied investment properties. Because they are business-purpose investor loans, they are reviewed differently from a standard owner-occupied mortgage. The Federal Register records that business-purpose and investment loans fall outside the consumer ability-to-repay rules. The CFPB’s examination procedures list the same exemption, along with credit extended to someone other than a natural person.
Two limits matter. First, the exemption turns on how the loan is actually used. Cash-out proceeds spent on personal expenses can make a loan consumer-purpose. Second, “no personal income documentation” does not mean no personal liability. Many programs ask for a personal guaranty. The asset-based loans here are consumer mortgages, so consumer disclosure rules apply to them. DSCR business-purpose loans are exempt from TRID.
The complete DSCR loans guide walks through that product in full. For comparing the consumer asset route against other consumer routes, Lendmire’s explainer How to Qualify for a Mortgage Using Assets Instead of Income is the next stop.
Key Terms Defined
Asset qualifier path: a program where eligible assets, after credit percentages, must cover the entire loan amount, with no income documented.
Asset depletion path: a program that divides usable assets by 60 months to create monthly qualifying income, which then runs through the DTI test.
Haircut: the portion of a balance a lender does not count, such as 30% of a retirement account on the depletion path.
Seasoning: the time funds must sit in an account before they count as yours.
Debt-to-income (DTI): your monthly debts divided by your monthly qualifying income.
Reserves: money left after closing, measured in months of housing payment.
What to Do Before You Apply
Preparation is mostly about not disturbing your balances.
- Gather two months of complete statements for every account, all pages.
- On the depletion path, make sure the oldest statement is at least 120 days old and the newest is within 45 days.
- Write down the source of any large deposit before the underwriter asks.
- Leave retirement and brokerage accounts alone until you know your path.
- Pull your credit report and check it against the 600 floor or the lender’s matrix.
- Decide whether the property is a home or a rental, because that picks the path and the leverage.
Frequently Asked Questions
Can I get pre-approved with no income at all?
Often, yes, on the asset qualifier path, when eligible assets equal or exceed the entire loan. No employment or income is documented there. You still provide statements, credit and sourcing, and approval remains subject to underwriting and lender guidelines.
Do retirement accounts count the same as cash?
No. On the qualifier path, a 401(k) or IRA counts at 90% under age 59½ and 100% at 59½ or older. On the depletion path, retirement accounts count at 70% at any age. Cash and CDs count at 100% on both.
Will the lender pull my credit?
Yes. The qualifier path publishes a 600 minimum score, and the depletion path follows the lender’s score and loan-amount matrix. Housing history is typically 0x30x12, with a single recent late payment considered case by case.
Can I use these programs to buy a rental?
Only on the asset depletion path, at up to 65% on a purchase and 60% on a cash-out refinance. Many rental buyers instead use a DSCR loan, which qualifies primarily on the property’s rent covering the payment, subject to lender guidelines.
Do I have to sell my investments?
No. The lender documents your accounts rather than requiring a sale. Selling or moving funds after pre-approval can change the numbers the lender relied on, so discuss any move first.
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.
About Lendmire
Lendmire — NMLS# 2371349 — is a mortgage broker that arranges bank statement, P&L-only, 1099-only and asset-based home financing in 16 states through wholesale lenders, on primary residences, second homes and investment properties. Every option is subject to the lender’s guidelines and full underwriting. Scotsman Guide named Lendmire a Top Mortgage Workplace in both 2025 and 2026.
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References
1. Accredited Real Estate Schools
2. Federal Register: Ability-to-Repay and Qualified Mortgage Standards
3. CFPB Truth in Lending Act examination procedures
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 a Founder Get a Super Jumbo Loan on Assets and No Income? · How to Document an Assets-Only Mortgage · How to Open a HELOC on Assets Alone With No Paycheck
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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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.