The Quick Read: A lender routes an asset-rich Georgia borrower down one of two paths by checking the property’s occupancy, whether eligible assets can cover the entire loan on their own, how much other debt the borrower carries, and how the accounts break down by type, since each path counts them differently.
- The asset qualifier path asks one question: do eligible assets equal or exceed the whole loan? No employment or income is documented.
- The asset depletion path turns usable assets into monthly income by dividing them by 60 months. That income then runs through the debt-to-income test.
- A borrower is qualified on one path at a time. The tables are never blended, and each path has its own credit percentages for the same account.
- Investment property is only available on the depletion path, and only through select programs, subject to underwriting.
- The figures here are ceilings and floors, not offers. Programs change, and every file is underwritten individually.
The program figures do not change at the Georgia line. Lendmire arranges consumer asset-based mortgages in Georgia, one of 16 states where its consumer mortgage lending is licensed. Georgia works here as a scenario label: a borrower in Georgia, with a large balance sheet and thin documented income, trying to work out which door a lender will open.
What Are the Two Paths, Exactly?
Asset qualifier and asset depletion are two different ways of using the same raw material, which is money you already hold. Qualifier tests whether your assets are big enough to cover the loan. Depletion converts your assets into an income figure and then tests that income like a paycheck.
Asset qualifier is the simpler idea. The lender adds up your eligible assets after applying a credit percentage to each account type. If the total equals or exceeds the entire loan amount, the file is reviewed on assets alone. You document the assets, not employment or income. Credit, the property and the file as a whole still get reviewed.
Asset depletion is a conversion. The lender applies a haircut (a percentage discount on accounts that could lose value or be hard to reach) to each account. It adds up the usable total and divides by 60 months. The result is a monthly qualifying income, which has to carry the housing payment and your other debts through the debt-to-income test, or DTI, the share of income that goes to monthly debt.
One caution about names. Across the wholesale network, the labels are not universal. Some lenders use qualifier to describe a shorter-divisor version of depletion, and others use utilization for a program with a larger post-closing cushion. This article uses the two definitions above, which match the programs Lendmire places files with. When you talk to any lender, ask which definition its guideline sheet uses.
How Does the Lender Decide? The Checkpoints in Order
The choice is less a matter of preference than of elimination. Each checkpoint below can close one door. Most files are routed by the second or third one.
1. What is the property? Investment property is available only on the depletion path. The qualifier path is for a principal residence or second home. If you are buying a rental to hold, the decision is already made, and the question becomes whether the depletion math works.
2. Do eligible assets cover the whole loan? On the qualifier path, the credit-adjusted total has to equal or exceed the entire loan amount. A borrower whose balances are large but fall short of the loan cannot use this path. That same borrower may still clear the depletion test, because depletion needs assets of at least the lesser of $1,000,000 or 1.25 times the loan balance. When depletion is the only income source, assets must also be at least $250,000 in liquid form, meaning cash or accounts you can reach without selling property.
3. How big is the loan? Loan amounts run up to $4,000,000 on the qualifier path and from $125,000 to $3,500,000 on the depletion path. A loan above $3,500,000 can only be considered on the qualifier path. Both are subject to underwriting.
4. How much debt does the borrower carry? This is where depletion earns or loses its place. Because derived income runs through DTI, an existing car note, student loan or other mortgage reduces how much housing payment the income can carry. The qualifier path documents no income, so existing debts do not run through a DTI test. The lender’s review of whether you can repay rests on the assets instead.
5. What is the leverage need? Loan-to-value, or LTV, is the loan as a percentage of the property’s value. On the qualifier path, the ceiling is 80% LTV on a purchase and 75% on a refinance of a principal residence or second home. Whether cash-out proceeds are allowed on that path is the lender’s call and is not published. On the depletion path, a principal residence or second home can go to 80% on a purchase or rate-and-term refinance and 60% on a cash-out refinance. An investment property tops out at 65% on a purchase or rate-and-term refinance and 60% on a cash-out refinance. Cash-out proceeds never count as qualifying assets. The exact numbers vary by lender and program and follow a full review of property, leverage, and credit.
6. Does the credit profile fit? The qualifier path has a published floor of a 600 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 at 0x30x12, meaning no 30-day lates on a mortgage or rent in the last twelve months, though one late payment is considered case by case. A housing event on a depletion file needs 4 years of seasoning, and multiple bankruptcies are not eligible.
Side by Side: The Two Paths
| Factor | Asset Qualifier | Asset Depletion |
|---|---|---|
| What it tests | Assets vs. whole loan | Assets turned into income |
| Income documented | None | Derived income, run through DTI |
| Property types | Primary, second home | Primary, second home, investment |
| Loan amounts | Up to $4,000,000 | $125,000 to $3,500,000 |
| Purchase LTV, primary or second home | Up to 80% | Up to 80% |
| Refinance LTV, primary or second home | Up to 75% | 80% rate-and-term; 60% cash-out |
| Investment property LTV | Not offered | 65% purchase or rate-and-term; 60% cash-out |
| Credit | 600 minimum | The lender’s matrix |
| Statements | 60 days seasoning; two months each | 120 days old, plus one within 45 days |
The pairing worth noticing is leverage against income handling. The qualifier path is cleaner on documentation and skips DTI, but it requires assets to match the entire loan. The depletion path asks for less in total assets on bigger loans, but your debts count against you.
How Different Account Types Count
The same balance is worth different amounts on each path, which is why asset mix often settles the decision.
On the qualifier path, brokerage accounts, certificates of deposit, money market and savings all count at 100%. A 401(k) or IRA counts at 90% if you are under 59½ and 100% at 59½ or older. Accounts combine, so you can add them together toward the loan amount.
On the depletion path, cash accounts and certificates of deposit count at 100%. Securities count at 80%, private stock at 75%, retirement accounts at 70% at any age, and real-estate equity at 60%.
Now look at what that does to a retiree who holds mostly brokerage and retirement money. On the qualifier path, those balances count at 100% and either 90% or 100%. On the depletion path, the same balances shrink to 80% and 70%. A portfolio built from securities and a retirement account may clear the qualifier test comfortably and look thin under depletion.
Some assets are not eligible 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. Lendmire’s piece How to Use Deferred Compensation in an Asset Depletion Mortgage File covers that last trap in more depth.
Cryptocurrency, precious metals, collectibles, borrowed or pledged funds, and business accounts beyond your ownership share are not published as eligible on either path. The documented route is to convert them to a seasoned cash balance in a regulated account, with the source reviewed by the lender. They never count at a percentage on their own.
A Worked Example
These numbers show the shape of the math. The lender’s own calculation governs, and every file is subject to underwriting.
Qualifier path. Say a borrower seeks an $800,000 loan on a primary residence. The borrower holds $330,000 in brokerage accounts (100% = $330,000), $300,000 in a 401(k) while under 59½ (90% = $270,000) and $200,000 in savings (100% = $200,000). Those credits add up to $800,000 of usable assets, which matches the loan. The file is reviewed on assets alone, subject to credit, property review and underwriting.
Depletion path. Now take a different borrower with $1,500,000 in securities (80% = $1,200,000) and $300,000 in cash (100% = $300,000). Usable assets total $1,500,000. Divided by 60 months, that is $25,000 of monthly qualifying income. That income then has to carry the housing payment and every other debt through the DTI test.
Compare what each path asks. The first borrower never has to show an income figure. The second has to show that the converted income can support the whole debt picture. If the second borrower also carries a large auto loan and a second mortgage, the same $25,000 stretches less far.
Georgia Scenarios: Where Each Path Lands
Picture a retiree in Georgia buying a principal residence with a large brokerage account and a savings balance. Her assets cover the entire loan once the credit percentages are applied. She has no paycheck to document and no wish to create one. The qualifier path fits, and the lender’s review rests on the assets.
Consider a Georgia business owner who has just sold his company. The sale proceeds sit in a bank account. On the qualifier path, those funds need 60 days of seasoning and two months of statements for each qualifying account. On the depletion path, sale-of-business, inheritance and legal-settlement funds are excused from the seasoning rule. If the loan is larger than his assets can cover outright, depletion may be the way in. If the assets do cover it, he can choose based on leverage and what he wants documented.
Say you are an early-retired professional in Georgia with a steady portfolio and a modest pension. Depletion can supplement documented income, up to a 45% DTI. When it supplements income, the minimum-assets rule is waived. That makes depletion the natural fit here, because the qualifier path assumes no income is documented at all.
Run the numbers on a Georgia buyer purchasing a rental with a strong portfolio and weak documented income. This one is a depletion-only file, because investment property is not offered on the qualifier path. The leverage ceiling is 65% LTV on a purchase of an investment property, and a first-time investor needs a 700 score. If the rental itself throws off strong rent, that borrower should also look at a DSCR loan, covered below. Final terms depend on the lender’s guidelines, the property type, and the borrower’s complete credit picture.
Then there is the file where neither path fits cleanly. Picture a Georgia executive whose wealth sits in stock options, non-vested restricted stock units and deferred compensation. None of those count on the depletion path, and the qualifier path lists only a short set of account types. The honest answer is that this file may need those holdings converted into a seasoned cash balance in a regulated account, or documented income to carry part of the load, before either path works.
What Can Derail the Choice
The same handful of issues sends most asset files sideways.
- Ineligible assets. The not-eligible list on the depletion path is long, and counting an excluded account in your head is the most common planning error.
- Concentration. A portfolio that is mostly one account type is hit by that type’s percentage. A retirement-heavy balance sheet shrinks to 70% on depletion.
- Seasoning gaps. The qualifier path wants 60 days of seasoning and two months of statements for each account. The depletion path wants statements at least 120 days old at application, plus the most recent one within 45 days. Funds moved in recently can break either test.
- Debt load. On depletion, existing obligations compete with the new housing payment inside the DTI test. Paying off a debt can matter as much as adding assets.
- Not no-doc. Assets are documented on both paths.
- Minimum asset thresholds. On the depletion path, assets must reach the lesser of $1,000,000 or 1.25 times the loan balance, and never less than $250,000 liquid when depletion is the only income source.
When both paths work, the tiebreakers are leverage, DTI and how much of the portfolio you want counted in the test. When neither works, the practical moves are smaller loan size, added documented income, or seasoning cash in a regulated account. Business owners who document income with deposits may fit a separate bank statement program instead.
Where the Rule Breaks: DSCR for Rentals
The asset paths are consumer mortgage tools. If you are buying a rental, there is a different 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.
A DSCR loan is reviewed primarily on property-level rental income covering the payment, subject to lender guidelines. The lender still runs your credit, but your personal income and balance sheet play a smaller role. If the rental’s rent clears the coverage test, DSCR is usually the simpler road. Asset-based qualifying matters more when the rent is weak, the property is not rent-producing yet, or you want personal-income-style underwriting. Lendmire’s complete DSCR loans guide covers the investor side in full.
Why Lenders Can Use Assets at All
The ability-to-repay rule requires a lender to make a reasonable, good-faith determination that you can repay the loan. Cornell’s copy of the federal regulation says the lender may consider income or assets other than the home that secures the loan. The CFPB’s compliance guide lists eight factors a lender weighs and says income need not be salaried.
Asset-based mortgages are part of the non-QM market, meaning loans outside the standard qualified-mortgage box. Scotsman Guide, citing CoreLogic data, reports that non-QM was about 5% of recent originations. The share is small, but it serves exactly this kind of borrower.
Key Terms Defined
Asset qualifier: a path where eligible assets, after credit percentages, must equal or exceed the entire loan amount, with no income documented.
Asset depletion: a path where usable assets are divided by 60 months to create a qualifying income that runs through the DTI test.
Haircut: the percentage discount a lender applies to an account type, so only part of the balance counts.
DTI (debt-to-income): the share of monthly income that goes to housing and other debt payments.
LTV (loan-to-value): the loan amount as a percentage of the property’s value.
Seasoning: how long funds must sit in an account, shown by statements, before the lender counts them.
Non-QM: a mortgage outside the qualified-mortgage category, underwritten to the lender’s own guidelines.
Liquid assets: cash and accounts you can reach without selling property.
Questions to Ask Before You Apply
1. Which definition of qualifier and depletion does this lender’s guideline use?
2. Is my property type allowed on the path I want?
3. How does each account I hold count on each path?
4. Does depletion supplement my documented income, and does that change the minimum-assets rule?
5. What statement dates and seasoning does each path require for my accounts?
Frequently Asked Questions
Are asset qualifier and asset depletion the same thing?
No, though some lenders use the labels loosely. In the programs Lendmire places files with, qualifier tests whether assets cover the whole loan, and depletion turns assets into monthly income over 60 months. Always check the guideline sheet.
Does either path use a debt-to-income test?
Only depletion. Its derived income runs through the DTI test. The qualifier path documents no income, so the lender’s repayment review rests on the assets instead.
Do I have to sell my investments?
No. The lender counts the balances and leaves them in your accounts. On the depletion path the income is a calculation, not a withdrawal.
Do retirement accounts and stocks count?
Yes, at different percentages. On the qualifier path, brokerage accounts count at 100% and a 401(k) or IRA counts at 90% under age 59½ and 100% at 59½ or older. On the depletion path, securities count at 80% and retirement accounts at 70% at any age.
Can I use the qualifier path to buy a rental in Georgia?
Not through this program. Investment property is available only on the depletion path, at up to 65% LTV on a purchase, subject to underwriting. A business-purpose DSCR loan is the other route for rentals. Each figure is subject to lender guidelines and a complete review of property type, leverage, and credit.
Where to Start
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.
Lendmire’s asset-based mortgage in Georgia page presents the program for Georgia 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. Cornell LII, 12 CFR § 1026.43
2. CFPB ATR/QM Small Entity Compliance Guide
3. Scotsman Guide, “One out of 20 mortgages are non-QM”
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 Buy Before You Sell in Virginia Using an Asset Qualifier Mortgage · How to Document an Indiana Asset Qualifier Mortgage Without an Employer · Reserves vs Qualifying Assets on an Asset Qualifier Mortgage
Guides: Asset-Based Mortgage in Georgia
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.