The Quick Read: It depends on which path the file runs on, and on the down payment you take out of the same pot. On the asset qualifier path, the usable assets left after the down payment and closing costs must cover the entire loan, so the price lands somewhat under $1 million, subject to underwriting. On the asset depletion path, assets are divided by 60 months into monthly income, and that income has to carry the whole housing payment.
- Asset qualifier path: no income is documented, and usable assets must equal or exceed the full loan amount.
- Asset depletion path: usable assets divided by 60 months become qualifying income, run through a debt-to-income test.
- Your down payment comes out of the same balance, so the money cannot be counted twice.
- Retirement accounts, securities and real-estate equity count at less than 100% on most paths.
- A rental purchase usually belongs on a DSCR loan, where rent against the payment sets the loan size, not your balances.
Lendmire is a mortgage broker. It arranges these loans through select lenders in its wholesale network, and every figure below is subject to underwriting and lender guidelines. Nothing here is a commitment to lend.
The Two Paths, and Why You Pick One
A borrower is reviewed on one path at a time. Across the wholesale network, the programs that fit “assets, no income” split into two separate products, and mixing their numbers is a common mistake on these files.
Asset qualifier path. The lender sizes the loan against your assets directly. Eligible assets, after the credit percentages below, must equal or exceed the entire loan amount. No employment or income is documented. Leverage runs up to 80% on a purchase and 75% on a refinance, on a principal residence or second home, with loans up to $4,000,000. The minimum credit score is 600.
Asset depletion path. The lender converts usable assets into monthly income by dividing by 60 months. That income then carries the housing payment and your other debts through the debt-to-income test. Loan amounts run from $125,000 to $3,500,000. The lender’s score and loan-amount matrix sets the credit requirement, and a first-time investor needs a 700 score.
The two tables never blend. Say which path you are on every time a number comes up.
What Counts as an Asset, Account by Account
Different accounts count at different percentages, and the percentages differ by path. This table keeps them apart.
| Account type | Qualifier path | Depletion path |
|---|---|---|
| Brokerage accounts | 100% | Securities 80% |
| CDs, money market, savings | 100% | Cash and CDs 100% |
| 401(k) and IRA | 90% under 59½, 100% after | 70% at any age |
| Private stock | Not listed | 75% |
| Real-estate equity | Not listed | 60% |
These are the shares of each balance that count, typically and subject to underwriting. Accounts combine.
Some items do not count on the depletion path at all: 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.
Crypto, precious metals, collectibles and pledged or borrowed funds are not published as eligible on either path. The documented route is converting them to a seasoned cash balance in a regulated account. The lender reviews the source of those funds. Do not plan a file around them counting at a percentage.
Worked Path One: Assets Cover the Loan
Take a borrower buying a primary residence on the qualifier path. The loan is $800,000. Illustrative balances left after the down payment and closing costs have been set aside:
- $330,000 in brokerage accounts counts at 100%, so $330,000.
- $300,000 in a 401(k), borrower under 59½, counts at 90%, so $270,000.
- $200,000 in savings counts at 100%, so $200,000.
Usable assets total $800,000. That equals the loan, so the file is reviewed on assets alone, subject to underwriting. The lender’s own calculation governs.
Now apply that to your $1 million. Suppose it is all taxable brokerage and savings, counted at 100%. At 80% leverage on a purchase, the down payment is 20% of the price, and the loan is the other 80%. Both have to come out of the same $1 million: the down payment is spent, and the assets that remain must still cover the loan. Down payment plus loan equals the price, and closing costs sit on top. So the price has to land below $1 million by at least the closing costs. A lower down payment does not help, because the loan grows to match and the remaining assets still have to cover it. Terms vary by lender guidelines, property type, leverage, credit profile, and full file review.
Put another way, the answer is not “$1 million buys a $1 million house.” It is closer to the balance minus closing costs, and a cushion you choose to hold back makes it smaller. Any figure you plan around is a rough guide until a lender reviews your statements.
Reserves are simple on this path. None are required at or below 75% loan-to-value. Above that, the lender sets them.
Worked Path Two: Assets Become Income
Now the depletion path. The standard shape: $1,500,000 in securities counts at 80%, which is $1,200,000. Add $300,000 in cash at 100%. Usable assets are $1,500,000. Divide by 60 months and you get $25,000 of monthly qualifying income.
That income then carries the housing payment and every other debt through the debt-to-income test. It is a different calculation from the qualifier path. The loan is not capped by asset coverage here. It is capped by how much payment that imputed income can support.
Run the same logic on a $1 million balance in securities. At 80%, usable assets are $800,000. Divided by 60 months, that is about $13,333 of monthly income. A retirement-heavy balance is worse, since retirement accounts count at 70%. A cash-heavy balance is better, since cash counts at 100%. The account mix moves the result as much as the total does.
Two minimums apply on this path. Qualified assets must be at least the lesser of $1,000,000 or 1.25 times the loan balance. And when depletion is the only income source, liquid assets can never be below $250,000. Asset income can also supplement documented income up to a 45% debt-to-income ratio. When it supplements, the minimum-assets rule is waived.
Leverage on this path is up to 80% on a purchase or rate-and-term refinance of a principal residence or second home, and 60% on a cash-out refinance. Cash-out proceeds never count as qualifying assets.
Down Payment Versus Keeping Assets Invested
Every dollar you put down is a dollar that stops counting. This circularity is where files get misjudged.
On the qualifier path, a bigger down payment means a smaller loan, which is easier to cover with what is left. On the depletion path, a bigger down payment cuts the asset base that produces income, so qualifying income drops even as the loan shrinks. The two paths pull in different directions, which is why the path choice comes first.
There is also a practical question of liquidity after closing. A borrower who puts down a large share and is reviewed on what remains may be left with little cash outside the property. Keep a cushion for taxes, insurance, repairs and market swings that are separate from the balances you are counting. If markets fall after the file is approved, the approval does not change, but your cushion does.
Documentation: “No Income” Does Not Mean “No Documents”
The assets are documented on both paths. The loan is fully underwritten, and what you skip is traditional personal-income documentation, pay stubs and employment verification.
On the qualifier path, expect 60 days of seasoning and 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 seasoning, though the source is still reviewed.
A large recent deposit with no paper trail is the usual cause of a pended file. Transfers between your own accounts need statements on both sides. Joint accounts need the right owner names. If you are moving funds out of an account to change its mix, do it well before applying, because new money that has not seasoned will not count.
Credit still matters. Housing history is reviewed at 0x30x12, with one 30-day late in the last twelve months considered case by case. Multiple bankruptcies are not eligible. On the depletion path, a housing event needs four years of seasoning. A lender relying on assets must still weigh the borrower’s other underwriting factors, including debt-to-income and credit history. None of this is an approval promise.
Why Rentals Usually Belong on a DSCR Loan
This is the investor decision. If the house is a rental, the asset-based mortgage program is usually the wrong tool.
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 business-purpose exemption in Regulation Z is the reason the consumer income test does not apply to them.
A DSCR loan is reviewed primarily on property-level rental income covering the payment, subject to lender guidelines. Your $1 million does not set the loan size. It funds the down payment, closing costs and reserves. Programs in the network typically look at the appraised market rent against the full monthly obligation, then credit, then reserves and entity documents if you buy in an LLC, depending on program guidelines. Select lenders also review properties below 1.00 coverage, though leverage and terms adjust.
The practical result: a retiree buying a home to live in uses an asset path. The same retiree buying a rental uses DSCR, and the assets become cash to close and reserves. Investment property is available on the depletion path too, but at 65% leverage on a purchase or rate-and-term and 60% on a cash-out, with the income test attached. Exact terms depend on the lender’s guidelines, property type, leverage, and a full review of the borrower’s file.
For a rental buyer who wants to understand how far a large down payment moves leverage, Lendmire’s piece How Much Down Payment Does a No-Ratio DSCR Loan Above $1 Million Need? covers the adjacent question.
Key Terms Defined
Usable assets: the balance of each account after the program’s percentage is applied.
Haircut: the discount a program applies to an account because of market or access risk.
Depletion divisor: the 60 months by which usable assets are divided to produce monthly income.
Debt-to-income (DTI): monthly debts, including the new housing payment, compared with monthly qualifying income.
Seasoning: the length of time funds must sit in an account before they count.
DSCR: the property’s monthly rent divided by its full monthly obligation, used on rental loans.
Who This Fits, and Who Should Look Elsewhere
Asset-based mortgages fit retirees, people who sold a business, recipients of an inheritance or settlement, early-retired professionals and households living on a portfolio. Their balances are large and their documented income is not.
They fit poorly when the borrower has steady documented income and a good score, since a full-documentation loan may price better. They also fit poorly for a pure rental purchase, which belongs on DSCR. And a borrower whose wealth sits mostly in crypto, collectibles or business accounts needs conversion work before any file can start.
The bank statement program is a different product, built for borrowers who document income through deposits. It is not the same as an asset path, so do not assume one stands in for the other.
One tax note: tax treatment varies; consult a qualified professional before relying on any treatment of withdrawals or sales.
Frequently Asked Questions
Can I qualify with literally zero income?
On the asset qualifier path, yes in the sense that no employment or income is documented. The loan is sized against your assets instead, which must cover the full loan amount after the credit percentages. The assets themselves are fully documented, and the file is underwritten individually.
Does my 401(k) or IRA count?
It counts, at a discount. On the qualifier path, retirement balances count at 90% if you are under 59½ and 100% at 59½ or older. On the depletion path they count at 70% at any age. Either way, the balance must be seasoned and documented with statements.
Does the down payment come out of my $1 million?
Yes, and that is the key trap. Down payment funds leave the asset base before the remaining balance is counted. On the qualifier path, the assets that remain must still cover the loan. On the depletion path, the down payment shrinks the income the assets produce.
Can I use this for a rental property?
Only on the depletion path, at lower leverage and with the debt-to-income test attached. Most investors with a rental purchase are better served by DSCR, where the property’s rent against its payment sets the loan size. The assets then serve as down payment and reserves.
Can I combine assets with Social Security or a pension?
On the depletion path, asset-derived income may supplement documented income up to a 45% debt-to-income ratio. Whether your specific income qualifies is up to the lender’s review.
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. Consumer mortgage lending through this program is available in 16 states: Alabama, California, Colorado, Florida, Georgia, Indiana, Michigan, Montana, New Mexico, North Carolina, Ohio, Pennsylvania, Tennessee, Texas, Virginia and Washington. Request a quote at Lendmire’s quote page or call 828-256-2183.
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 traditional personal-income documentation understates their income, and each application is reviewed individually by the lender. Scotsman Guide named Lendmire a Top Mortgage Workplace in both 2025 and 2026.
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References
1. Lexology / Consumer Financial Services Review
2. CFPB Regulation Z, Section 1026.3
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 Relocate to Michigan and Buy a Home on Assets Before You Have Local Income? · Can You Refinance a Georgia Home on Assets When Your Income Stops? · How Much Does a California Retiree Need in Assets to Buy a Home Without Income?
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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Legal disclosures. Lendmire (NMLS# 2371349) is a state-licensed mortgage brokerage that arranges financing through wholesale lender relationships. Lendmire is not a direct lender, depository institution, or registered financial advisor. The discussion above is general informational content about real estate financing — it is not financial, legal, or tax advice, and readers should consult licensed professionals for guidance on their individual circumstances. Loan inquiries are subject to lender underwriting; this article does not represent a commitment to lend. Loan terms, rates, and qualification standards vary by borrower, property, and state, and are subject to change at any time. Equal Housing Opportunity. NMLS Consumer Access: nmlsconsumeraccess.org.