The Quick Read: It depends on the path, but on the asset qualifier path the answer is simple: eligible assets, after the credit percentages, must equal or exceed the entire loan amount, with no income or employment documented, through select programs and subject to underwriting. The other path, asset depletion, turns assets into monthly income instead. A borrower is qualified on one path at a time, so the two sets of figures never blend.
- Asset qualifier path: usable assets must cover 100% of the loan amount, up to $4,000,000.
- Brokerage, CDs, money market and savings count at 100%. Retirement accounts count at 90% under age 59½ and 100% after.
- Leverage runs up to 80% on a purchase and 75% on a refinance, on a principal residence or second home.
- Statements are required: 60 days of seasoning and two months of statements for each qualifying account.
- Credit minimum is 600, and the documents are still heavy even though income is not.
Which Path Fits a Cash-Heavy, Income-Light Buyer?
Pick the asset qualifier path when your balances are large and you want to skip income documentation entirely. Pick asset depletion when you want a lower asset requirement and can carry a debt-to-income test.
Think of a retiree, a founder who just sold a company, or a household living off a portfolio. Their statements are big. Their traditional personal-income documentation looks thin. Lendmire is a mortgage broker, and across its wholesale network these buyers are the usual fit for asset-based files.
The asset qualifier path treats your assets as a direct cover for the loan. If you borrow a given amount, your usable assets need to match it. No employment is documented. No income is documented. The lender’s review rests on the assets.
Asset depletion works differently. Usable assets are divided by 60 months to create a monthly qualifying income. That income must carry the full housing payment and your other debts through the program’s debt-to-income test.
Both paths are consumer mortgages for a home you will live in or use as a second home. Asset depletion also reaches investment property, at lower leverage. A pure rental purchase usually moves to a DSCR loan, where the property’s rent against its payment is the test.
How Much in Assets Covers the Loan?
On the asset qualifier path, the required amount is 100% of the loan, counted after the credit percentages. Most cash-type accounts count in full. Retirement balances count at a discount for buyers under 59½. The requirement is the loan itself, not a multiple of it.
A bigger loan simply needs a bigger pool. The program reaches loans up to $4,000,000 on this path. Nothing above that is available.
Here is the shape of the math. This is illustrative, and the lender’s own calculation governs:
1. A buyer needs an $800,000 loan. 2. The buyer holds $330,000 in brokerage accounts. That counts at 100%, or $330,000. 3. The buyer holds $300,000 in a 401(k) and is under 59½. That counts at 90%, or $270,000. 4. The buyer holds $200,000 in savings. That counts at 100%, or $200,000. 5. Usable assets total $800,000. That equals the loan, so the file is reviewed on assets alone, subject to underwriting.
Notice the buyer’s raw balances add up to $830,000. The retirement haircut is what trims the total to exactly the loan. That is why you count by account type, not by headline net worth.
One practical point matters here. Money you move into a down payment or closing costs leaves your accounts. It cannot also sit in the pool. A larger down payment shrinks the loan, but it also shrinks what is left to count. Run both numbers before you commit funds.
What Counts, and at What Percentage?
Cash-type accounts count at 100% on both paths. Securities, retirement money and real-estate equity are discounted, and the discounts differ by path. Always read the table by path, never across.
| Asset type | Qualifier path | Depletion path |
|---|---|---|
| Brokerage accounts | 100% | 80% (securities) |
| Certificates of deposit | 100% | 100% |
| Money market and savings | 100% | 100% (cash accounts) |
| 401(k) and IRA | 90% under 59½; 100% at 59½+ | 70% at any age |
| Private stock | Not published | 75% |
| Real-estate equity | Not published | 60% |
On the qualifier path, accounts combine, so a mix of savings and brokerage adds up. On the depletion path, several asset types are not eligible: 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.
Some holdings are not published as eligible on either path. These include cryptocurrency, precious metals, collectibles, pledged or borrowed funds, and business accounts beyond your ownership share. Do not assume they count at any percentage. The documented route is to convert them to a seasoned cash balance in a regulated account. The lender then reviews where the money came from.
Home equity is a separate point. Equity in the house you are buying cannot count as an asset on the qualifier path. The federal ability-to-repay rule excludes the value of the dwelling that secures the loan, as the CFPB’s Regulation Z provision lays out for creditors weighing assets.
What Is “Jumbo” for a California Buyer?
A loan is jumbo when it exceeds the county’s conforming limit, and that limit varies by county. HousingWire reports a one-unit baseline of $832,750 and a high-cost ceiling of $1,249,125, which is 150% of the baseline. Check your own county’s limit before you assume you are in jumbo territory, since California counties sit anywhere between those two lines.
The asset qualifier path is built for larger loans. It runs to $4,000,000, so the buyer can sit well above the high-cost ceiling and still be inside the program.
How the Asset Qualifier File Moves, Step by Step
The file runs on account inventory, percentages, and statements. Follow this order to avoid rework.
1. Confirm the path. Choose the qualifier path if your assets can cover the whole loan. Choose depletion if they cannot.
2. List every account you plan to count. Include the owner, the balance and the account type.
3. Apply the percentages. Use 100% for brokerage, CDs, money market and savings. Use 90% for a retirement account if you are under 59½, and 100% after.
4. Subtract money leaving your accounts. Remove the down payment, closing costs and any earnest money already moved.
5. Compare the remainder to the loan. Usable assets must equal or exceed the loan amount.
6. Gather statements. The qualifier path wants 60 days of seasoning and two months of statements for each qualifying account.
7. Check leverage. The program allows up to 80% on a purchase and 75% on a refinance, on a principal residence or second home.
8. Expect underwriting. Credit, the property and the source of funds are all reviewed.
The assets are documented on both paths. “No income documentation” never means “no documentation.” Statements, the source of any recent deposit and the property file are all part of the review.
Seasoning, Large Deposits and Gifts
Money has to sit in an account before it counts. On the qualifier path, that means 60 days of seasoning and two months of statements per account.
A large recent deposit will draw a question. The lender wants to see where it came from. A paper trail from a sale, a transfer between your own accounts or a documented payout settles most of these. Borrowed funds and pledged funds are not published as eligible, so do not plan around them.
The depletion path has its own clock. 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. That is a real advantage for a recent seller, though the source is still documented.
When Assets Fall Short: Three Moves
A shortfall is common, and it has fixes. Pick the one that matches your balance sheet.
Lower the loan. If assets are close, a larger down payment shrinks the loan. Watch the trade-off. The down payment leaves your accounts, so the pool shrinks too. Run the math both ways.
Switch to the depletion path. Here the test changes. Usable assets are divided by 60 months to produce income. The depletion path needs qualified assets of at least the lesser of $1,000,000 or 1.25 times the loan balance. It also needs at least $250,000 liquid when depletion is the only income source.
Here is an example: $1,500,000 in securities counts at 80%, or $1,200,000. Add $300,000 in cash at 100%. Usable assets total $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 other debts through the debt-to-income test.
Use a different program. If the home is a rental, a DSCR loan is reviewed primarily on property-level rental income covering the payment, subject to lender guidelines. That route avoids both asset tests. Lendmire’s piece How Much More Down Payment Keeps a W-2 Buyer Under the Jumbo Loan Limit is also worth a read if a larger down payment could bring the loan back inside conforming range.
Leverage and Loan Size by Path
Leverage differs by path and by use of the property. Keep each figure tied to its path and occupancy.
| Path and use | Purchase | Refinance |
|---|---|---|
| Qualifier, primary or second home | Up to 80% | Up to 75% |
| Depletion, primary or second home | Up to 80% | 80% rate-and-term; 60% cash-out |
| Depletion, investment property | Up to 65% | 65% rate-and-term; 60% cash-out |
Whether cash-out is allowed on the qualifier path, and at what leverage, is set by the lender and is not published. Plan around it only after the lender confirms. On the depletion path, cash-out proceeds never count as qualifying assets.
Loan size runs up to $4,000,000 on the qualifier path. The depletion path runs from $125,000 to $3,500,000. These are ceilings and floors, not offers.
Credit and Reserves
The qualifier path has 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 700.
Housing history is typically 0x30x12. One 30-day late in the last twelve months is considered case by case. Multiple bankruptcies are not eligible. A housing event needs 4 years of seasoning on the depletion path.
On the qualifier path, reserves are not required at or below 75% loan-to-value. Above that, the lender sets them. The depletion path has no published reserve months. Both are subject to underwriting.
Where Files Get Stuck
Most delays come from the paperwork, not the math. Watch these four spots.
- Retirement balances counted at 100% under 59½. The program counts them at 90%. A file built on the wrong percentage comes up short.
- Double-counting. The same dollars cannot cover the down payment and sit in the pool.
- Missing statements. Two months per account are needed on the qualifier path. One missing account breaks the total.
- Mixed paths. A borrower is qualified on one path at a time. Do not take the qualifier path’s percentages and the depletion path’s divisor in one file.
A short checklist helps: statements for every counted account, evidence of any earnest-money withdrawal, a list of all financed properties you own, and fresh statements close to the end of the file. Balances get re-verified.
Key Terms Defined
Asset qualifier path: A program path where eligible assets, after the credit percentages, must equal or exceed the entire loan amount, with no income documented.
Asset depletion path: A program path that divides usable assets by 60 months to create monthly qualifying income, which then runs through the debt-to-income test.
Seasoning: The length of time money must sit in an account before it counts.
Credit percentage (haircut): The share of an account’s balance that counts toward the requirement.
Debt-to-income test: A comparison of monthly debts to monthly income, which applies on the depletion path.
Why There Is No Single Federal Formula
Federal rules ask a lender to make a reasonable, good-faith finding that you can repay. They do not set a dollar amount of assets for it. The CFPB commentary on the rule says a creditor need consider only the income or assets it relies on. Percentages, divisors and required balances come from each program’s own guidelines. That is why the figures here belong to this program path and may differ elsewhere.
Tax treatment varies; consult a qualified professional.
Frequently Asked Questions
Do I need assets equal to the loan, or double it?
On the asset qualifier path, usable assets need to equal or exceed the loan amount. That is a 1-to-1 test, after the credit percentages. Lenders may use different multiples, so confirm which path your file is on.
Do my retirement accounts count in full?
Not always. On the qualifier path, a 401(k) or IRA counts at 90% if you are under 59½ and 100% at 59½ or older. On the depletion path, retirement accounts count at 70% at any age.
Can I use home equity or crypto?
Equity in the home you are buying cannot count on the qualifier path. Cryptocurrency, precious metals and collectibles are not published as eligible on either path. The documented route is converting them to a seasoned cash balance in a regulated account.
Is this a no-documentation loan?
No. No income or employment is documented on the qualifier path, but the assets are fully documented. Statements, seasoning and source-of-funds review all apply.
Can I buy a rental this way?
The qualifier path is for principal residences and second homes. Asset depletion also reaches investment property, at 65% on a purchase or rate-and-term refinance and 60% on a cash-out. Most rental purchases fit a DSCR loan better.
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 programs based on your statements, the property, credit profile, leverage, and your goals. Lendmire is a broker that places these loans through select lenders in its network, and consumer mortgage lending is licensed in 16 states, including California. Programs change, and every file is underwritten individually.
Lendmire’s asset-based mortgage in California page presents the program for California borrowers.
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. CFPB Regulation Z, Section 1026.43
2. HousingWire (FHFA 2026 limits)
3. CFPB official commentary on Section 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: How to Lower the Loan Until Your Assets Cover It on an Asset Qualifier Mortgage · Can You Get an Asset Qualifier Mortgage With a Co-Signer? · Can an Asset-Based Mortgage Fund a Jumbo Purchase?
Guides: Asset-Based Mortgage in California
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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Important disclosures. Lendmire (NMLS# 2371349) is a licensed mortgage brokerage. Lendmire is not a direct lender, depository institution, or financial advisor. All loan inquiries are subject to lender underwriting; this article does not constitute a commitment to lend. Rates, terms, and program guidelines are subject to change without notice and vary by borrower profile, property type, and state. Information in this article is general in nature and is not financial, legal, or tax advice. Equal Housing Opportunity. NMLS Consumer Access: nmlsconsumeraccess.org.