The Quick Read: A lender picks the path by matching three facts on the file to the program rules: how the property will be used, how large the loan is compared with usable assets, and whether the borrower has documented income worth supplementing, which together decide whether assets cover the loan outright or become monthly income. The program figures are the same for a Florida subject property as anywhere else, and every file is 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 are divided by 60 months into qualifying income that runs through the debt-to-income test.
- Occupancy matters first: the qualifier path covers principal residences and second homes, while investment property is available only on the depletion path.
- One path at a time: a borrower is qualified on one path, never a blend of the two.
- Documentation: both paths document the assets in full; only income documentation drops away on the qualifier path.
What Are the Two Paths, Exactly?
Both paths qualify a borrower on balance-sheet strength instead of paychecks, but they test different things. The qualifier path asks whether the assets can cover the loan. The depletion path asks whether the assets, converted to income, can carry the payment.
The vocabulary is messy across the industry. Some lenders use asset qualifier, asset utilization, asset dissipation and asset depletion as synonyms for one product. Others split them into two tests. This article uses the split that the programs Lendmire places files with use, because that split changes real outcomes.
On the asset qualifier path, the usable assets, after the credit percentages in the program, must equal or exceed the whole loan amount. Loans run up to $4,000,000, and the path serves principal residences and second homes.
On the asset depletion path, the lender discounts the assets, divides the usable total by 60 months, and treats the result as monthly income. That income must carry the full housing payment and other debts through the debt-to-income test. Loans run from $125,000 to $3,500,000.
Neither path sells or pledges anything. The money stays in the borrower’s accounts and the lender reviews it. All figures here are program ceilings and floors for select lenders in the network, not offers.
How Does a Lender Actually Choose?
The choice is a sequence of file facts, not a preference. Most files resolve at the first or second step.
1. Occupancy and property use. An investment property cannot use the qualifier path in this program. If the subject is a rental, the depletion path is the only asset-based route, and it carries lower leverage. A principal residence or second home can use either.
2. Transaction type. On the qualifier path, leverage tops out at 80% on a purchase and 75% on a refinance. The lender sets any qualifier-path cash-out treatment, and it is not published. A cash-out on the depletion path is available at 60% on a principal residence, second home or investment property, and the proceeds never count as qualifying assets.
3. Assets versus loan size. If eligible assets, after credit percentages, equal or exceed the loan, the qualifier path is usually the simpler fit. If they fall short but the borrower holds a large portfolio, the depletion path may still work.
4. Asset mix. The two paths credit assets differently, so the same portfolio produces different totals. More on that below.
5. Documented income. A borrower with real income, such as a pension, Social Security or part-time work, may use depletion income as a supplement up to a 45% debt-to-income ratio. When it supplements, the minimum-assets rule is waived.
6. Credit and seasoning. The qualifier path publishes a 600 minimum score. The depletion path follows the lender’s score and loan-amount matrix, and a first-time investor needs 700.
Brokers and lenders usually make this call together at the start of the file, before documents are gathered. The borrower influences it mainly through what the accounts hold and how long the funds have sat there.
How Do the Two Paths Compare Side by Side?
| Factor | Asset Qualifier | Asset Depletion |
|---|---|---|
| What it tests | Assets cover the whole loan | Assets become monthly income |
| Income documented | None | Derived income, runs through DTI |
| Occupancy | Primary or second home | Primary, second home, investment |
| Purchase leverage | Up to 80% | Up to 80% (65% investment) |
| Refinance leverage | Up to 75% | 80% rate-and-term, 60% cash-out |
| Loan amounts | Up to $4,000,000 | $125,000 to $3,500,000 |
| Seasoning | 60 days, two statements | Statements 120 days old plus one within 45 days |
Leverage on the depletion path is 65% on an investment-property purchase or rate-and-term refinance, and 60% on an investment-property cash-out. All figures are subject to underwriting and program terms.
What Counts, and at What Percentage?
The same dollars count for different amounts on each path, and this drives most rerouting. Think of it as two separate scoring tables that never blend.
On the qualifier path, brokerage accounts, certificates of deposit, money market and savings count at 100%. Retirement accounts such as a 401(k) or IRA count at 90% under age 59½ and 100% at 59½ or older. Accounts combine.
On the depletion path, cash accounts and certificates of deposit count at 100%, securities at 80%, private stock at 75%, retirement accounts at 70% at any age, and real-estate equity at 60%. Several asset types are not eligible: custodial accounts, deferred compensation, escrow accounts, foreign funds, cash on hand, stock options and non-vested restricted stock units. Lendmire’s piece How to Use Deferred Compensation in an Asset Depletion Mortgage File covers that last category in more depth.
Cryptocurrency, 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, with the source reviewed by the lender.
Retirement-heavy portfolios deserve a pause. A borrower under 59½ with most wealth in a 401(k) is credited at 90% on the qualifier path but only 70% on the depletion path. Tax treatment varies; consult a qualified professional before moving retirement money.
One Florida Borrower, Both Paths
Run the same borrower through both tables and the routing becomes clear. Picture a Florida buyer seeking an $800,000 loan on a primary residence. The borrower holds $330,000 in brokerage accounts, $300,000 in a 401(k) at an age under 59½, and $200,000 in savings. These numbers are illustrative, and the lender’s own calculation governs.
Qualifier path. Brokerage at 100% counts $330,000. The 401(k) at 90% counts $270,000. Savings at 100% counts $200,000. That totals $800,000 of usable assets, which equals the loan, so the file is reviewed on assets alone. No income is documented.
Depletion path. The same accounts count differently. Brokerage securities at 80% count $264,000. The 401(k) at 70% counts $210,000. Savings at 100% counts $200,000. The usable total is $674,000, which divided by 60 months is about $11,233 of monthly qualifying income.
That fails before the income test even begins. The minimum assets are the lesser of $1,000,000 or 1.25 times the loan balance, which on an $800,000 loan lands at $1,000,000. The borrower also needs at least $250,000 liquid when depletion is the only income source. The $674,000 total misses the first test.
Flip the profile. Suppose the borrower holds $1,500,000 in securities and cash combined, made up of $1,200,000 in securities and $300,000 in cash. The securities count at 80% ($960,000) and the cash counts at 100% ($300,000), for $1,260,000 usable. Divided by 60 months, that is $21,000 of monthly qualifying income. That income must carry the housing payment and other debts through the debt-to-income test. If the Florida property is an investment rental, this is the only asset-based route anyway. The lender’s calculation governs both examples.
Which Florida File Factors Move the Pick?
Florida does not change the program figures, but certain Florida-pattern files tend to land on one path or the other. These are tendencies, not state rules.
- Relocators with out-of-state assets. A buyer moving to Florida often holds brokerage and retirement accounts elsewhere. Those assets count the same way, but the seasoning clock matters, because statements must show the funds have been in place for the required period on the chosen path.
- Retirees living on a portfolio. With little documented income, the qualifier path is often the cleaner story when assets exceed the loan. Large retirement balances may favor it too, because 90% or 100% beats 70%.
- Second homes and condos. A second home can use either path. Property type, HOA issues and condo review sit on top of the asset test and follow the lender’s own guidelines.
- Business sellers and inheritance or settlement recipients. Funds from a sale of a business, an inheritance or a legal settlement are excused from the depletion path’s seasoning, which can help when the money just arrived.
- Rental purchases. The qualifier path is unavailable here, so the depletion path at 65% on a purchase or 60% on a cash-out is the asset-based option.
Where Does the General Rule Break?
The rule that assets should be enough to cover the loan on the qualifier path has several honest exceptions.
Terminology. A lender’s matrix may call something an asset qualifier that tests residual income instead. Read the program sheet’s test, not its label, before comparing.
Double counting. Where assets already throw off interest or dividends, an underwriter may separate that income so it is not counted twice.
Spending the pool. The same cash funds the down payment, closing costs and the income pool. Using $200,000 of savings for the purchase leaves less to count afterward. This is a common reason a strong-looking file shrinks at underwriting.
Credit. A 600 floor on the qualifier path does not carry pricing or approval with it. A housing event needs four years of seasoning on the depletion path, and multiple bankruptcies are not eligible.
Sizing. Loan-size-to-asset ratios behave differently near the top of each range. Lendmire’s piece How a Jumbo Lender Sizes a Loan on Asset Depletion for a Retiree walks through that side of the file.
When Neither Path Fits
Asset-based mortgages are not the right tool for every cash-rich borrower. A borrower who documents income with deposits fits a bank statement program better. A buyer purchasing a rental to hold for cash flow may fit the business-purpose route better, where qualification runs primarily on property-level rental income covering the payment, subject to lender guidelines. DSCR loans are designed for non-owner-occupied investment properties and are reviewed differently from a standard owner-occupied mortgage. Programs below a 1.00 coverage ratio are available through select lenders in the network, with adjusted leverage and terms. The complete DSCR loans guide explains how that comparison works.
The two lanes test different strengths. DSCR tests the property, and asset methods test the borrower’s balance sheet. The right one is whichever matches the strongest feature of the file.
Why the Regulatory Frame Allows Both
Both paths rest on the same lending principle: a lender must make a reasonable, good-faith determination that the borrower can repay. The CFPB’s compliance guide on ability-to-repay says a lender must consider either the monthly debt-to-income ratio or residual income, and that the general standard sets no specific threshold. A legal analysis of non-QM lending explains that a lender may rely on income, assets or both, and need only consider and verify what it actually relies on.
That is why a program can qualify a borrower on assets while still verifying every account. Consumer-friendly summaries of the rule are available from Nolo.
Key Terms Defined
Asset qualifier: a path where eligible assets, after credit percentages, must equal or exceed the entire loan amount.
Asset depletion: a path where usable assets divided by 60 months become qualifying monthly income.
Haircut: the share of an asset’s balance that does not count, which reflects volatility or withdrawal cost.
Seasoning: the period funds must sit in an account before they count.
Debt-to-income (DTI): monthly debts, including the new housing payment, compared with monthly qualifying income.
Usable assets: the balance counted after each account’s percentage is applied.
Frequently Asked Questions
Can a borrower choose the path, or does the lender decide?
It is a joint call made early in the file. Occupancy and loan size often make the choice for the borrower, and where both paths are open, the broker and lender compare which one the asset mix supports more cleanly. Final eligibility depends on underwriting.
Does the qualifier path really require no income documentation?
Yes, no employment or income is documented on that path. The assets are fully documented, with two months of statements per account and 60 days of seasoning, and the lender’s ability-to-repay review rests on those assets.
Can I use a rental purchase on the qualifier path?
No. Investment property is available only on the depletion path in this program, at lower leverage. A buyer focused on rental income may also compare DSCR options.
Do I have to sell my investments?
No. Nothing is sold or pledged on either path. The lender counts a share of the balance and reviews statements, and the accounts stay in the borrower’s name.
Is there a different rule because the property is in Florida?
The program figures do not change by state. Florida facts such as taxes, insurance and local prices are context for the file, not program parameters, and Lendmire arranges consumer asset-based loans in Florida as one of 16 states.
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. Reach the team at 828-256-2183.
Lendmire’s asset-based mortgage in Florida page presents the program for Florida borrowers.
About Lendmire
Lendmire (NMLS# 2371349) is a mortgage brokerage serving self-employed and high-net-worth borrowers in 16 states. Bank statement, P&L-only, 1099-only and asset-based mortgages are arranged through wholesale lending channels; Lendmire brokers the financing and the lender underwrites each application. Scotsman Guide named Lendmire a Top Mortgage Workplace in both 2025 and 2026.
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References
1. CFPB ATR/QM small-entity compliance guide
2. CFS Review: CFPB addresses non-QMs under the ability-to-repay rule
3. Nolo: New mortgage rules and ability to pay
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 Qualify for an Asset Depletion Jumbo Loan · Asset Depletion vs Bank Statement HELOC for an Owner Between Businesses · How to Qualify for an Asset Qualifier Mortgage
Guides: Asset-Based Mortgage in Florida
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.