The Quick Read: The lender picks the path by testing the file against each program’s conditions: loan size against the asset pool, existing debt against the debt-to-income limit, and the property’s occupancy type. If verified assets cover the whole loan, the asset qualifier path usually fits. If assets are large but the loan is bigger than the pool, the asset depletion path turns them into monthly income instead.
- Asset qualifier path: eligible assets, after credit percentages, must equal or exceed the entire loan amount. No employment or income is documented.
- Asset depletion path: usable assets are divided by 60 months to create qualifying income, which runs through the debt-to-income test.
- One path at a time: a borrower is qualified on one path per file, never a blend of the two tables.
- Different haircuts: the same retirement account counts at 90% or 100% on one path and 70% on the other.
- Virginia changes none of the program figures. State facts are context, and every figure is subject to underwriting under the select programs.
This applies to consumer purchases and refinances of a principal residence or second home. Investment property is only available on the depletion path. Lendmire is a broker. It places these files with select lenders in its wholesale network and does not underwrite or approve them.
Why the Two Labels Confuse Everyone
Across the wholesale network, the two names are not standardized. Some lenders use “asset qualifier” and “asset depletion” as synonyms for the same method. Others run them as two separate products with different tests. A borrower comparing quotes from two lenders can end up comparing two different methods without knowing it.
So the label tells you little. What matters is the specific program’s rules: what counts as an asset, what percentage of each balance counts, what the divisor is, and whether a debt-to-income test applies. This article uses the names the way Lendmire’s network does. The qualifier path covers the loan with assets alone. The depletion path converts assets into income.
Key Terms Defined
Asset qualifier: a path where eligible assets, after credit percentages, must equal or exceed the whole loan amount, with no income documented.
Asset depletion: a path where usable assets divided by 60 months become monthly qualifying income.
Credit percentage (haircut): the share of an account balance that counts toward qualifying. A 70% haircut means 70 cents of each dollar counts.
Seasoning: how long funds have sat in an account, shown by statements.
Debt-to-income (DTI): monthly debts, including the new housing payment, compared to monthly qualifying income.
How Each Path Turns Assets Into a coverage figure
The mechanics are different enough that the two paths should be read separately.
On the asset qualifier path, the underwriter adds up eligible balances at their credit percentages. Brokerage accounts, certificates of deposit, money market and savings count at 100%. Retirement accounts count at 90% under age 59½ and at 100% at 59½ or older. Accounts combine. The total must equal or exceed the entire loan amount.
Here is the sanctioned shape. An $800,000 loan, backed by $330,000 in brokerage accounts (100%, so $330,000), $300,000 in a 401(k) under 59½ (90%, so $270,000) and $200,000 in savings (100%, so $200,000), counts $800,000 of usable assets. That is reviewed on assets alone, subject to underwriting. The numbers are illustrative, and the lender’s own calculation governs.
On the asset depletion path, the haircuts are steeper and the output is income, not a pass-fail. 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%. The underwriter adds the usable balances and divides by 60 months.
Take $1,500,000 in securities (80%, so $1,200,000) plus $300,000 in cash (100%, so $300,000). That is $1,500,000 usable. Divided by 60 months, it produces $25,000 of monthly qualifying income. That income then has to carry the housing payment and other debts through the debt-to-income test.
| Factor | Asset qualifier path | Asset depletion path |
|---|---|---|
| Test applied | Assets cover the whole loan | Assets ÷ 60 months, then DTI |
| Income documented | None | Derived from assets |
| Retirement accounts | 90% under 59½, 100% after | 70% at any age |
| Securities | Brokerage at 100% | 80% |
| Loan amounts | Up to $4,000,000 | $125,000 to $3,500,000 |
| Investment property | Not available | Available |
What the Lender Looks At to Choose
The choice comes from the file’s facts, not from borrower preference alone. Five things drive it.
Occupancy. This one settles the question first. Investment property is only available on the depletion path, so a borrower buying a rental with personal assets has no qualifier option. A principal residence or second home can go either way.
Loan size against the pool. The qualifier path needs usable assets of at least the full loan. A borrower with $2,000,000 in qualifying balances and a $900,000 loan has plenty of room. A borrower with $600,000 in balances and a $900,000 loan does not, and the depletion path is the only one that can work.
Debt load. The depletion path runs a DTI. Heavy existing debt can sink it. The qualifier path documents no income, so DTI is not the gate, though the lender’s ability-to-repay review still rests on the assets.
Asset mix. A pool heavy in retirement accounts for a borrower under 59½ gets 90% on the qualifier path and 70% on depletion. A pool heavy in cash gets 100% on both. Securities are the swing: 100% as a brokerage account on the qualifier path, 80% on depletion.
Credit. 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 on that path needs 700. Housing history is 0x30x12, with one 30-day late in the last twelve months considered case by case.
| File fact | Typical lean |
|---|---|
| Buying an investment property | Depletion only |
| Usable assets exceed the loan | Qualifier |
| Loan larger than the usable pool | Depletion |
| Heavy existing debt | Qualifier (no income DTI) |
| Some documented income, assets to supplement | Depletion, up to 45% DTI |
| Retirement-heavy pool, under 59½ | Qualifier credits more |
That last depletion row matters. Asset-derived income can supplement documented income up to a 45% debt-to-income ratio, and when it supplements, the minimum-assets rule is waived.
Who Makes the Call, and When
The call happens at structuring, before the file goes to an underwriter. A broker looks at the statements, the loan amount, the occupancy and the credit profile, then runs both paths on paper where both are open. The lender’s guidelines set the final answer, and the underwriter confirms it.
In practice, a broker with access to many lenders compares more than the two paths. Some lenders’ qualifier programs want more cushion after closing. Some depletion programs cap leverage lower. Lenders in the network differ on which asset classes they accept and how they document them. That comparison is the real value of working with a broker rather than a single lender’s page.
On leverage, the qualifier path goes up to 80% on a purchase and 75% on a refinance. Whether cash-out is allowed on that path is set by the lender and not published, so treat it as a question for the lender, not a given. On the depletion path, a principal residence or second home goes up to 80% on a purchase or rate-and-term refinance and 60% on a cash-out refinance. Cash-out proceeds never count as qualifying assets. All figures are ceilings, not offers, and subject to underwriting.
Two Worked Virginia Files
File one: depletion is enough. Picture a retired couple in Northern Virginia selling a longtime home and buying a smaller one. They hold securities and cash, no pension large enough to carry the loan, and modest debts. Their usable pool, after the 80% securities haircut and 100% cash credit, divided by 60 months, produces income that carries the new payment inside the DTI limit. Their pool is smaller than the loan, so the qualifier path is out. Depletion works, subject to the minimum-assets rule: the lesser of $1,000,000 or 1.25 times the loan balance, and never below $250,000 liquid when depletion is the only income source.
File two: depletion falls short, qualifier fits. Consider a business seller near Richmond with a large pool and carrying other debt. On depletion, the existing debt plus the new payment pushes DTI past the limit, because 70% retirement haircuts shrink the income. On the qualifier path, the retirement balances count at 90% or 100%, the total clears the whole loan, and no income is documented. The tradeoff: the loan must be fully covered by assets, so the borrower commits more of the pool to qualifying. Sale-of-business funds are excused from the depletion seasoning rule, which helps in either case.
These are scenarios, not approvals. Each is illustrative, and the lender’s calculation governs.
What Counts and What Doesn’t
Cash, certificates of deposit, brokerage accounts, savings and money market accounts count on the qualifier path. Cash and CDs, securities, private stock, retirement accounts and real-estate equity count on the depletion path, at the haircuts above.
Not eligible on the depletion path: 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 the deferred-comp edge case in more detail.
Cryptocurrency, precious metals, collectibles, business accounts beyond the borrower’s ownership share, 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. They do not count at a percentage.
Seasoning is where files stall. The qualifier path wants 60 days of seasoning and two months of statements for each qualifying account. The depletion path wants statements 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 the depletion seasoning rule. The assets are documented on both paths. “No income documentation” never means “no documentation.”
Virginia Specifics
Virginia is one of the 16 states where Lendmire’s consumer mortgage lending is licensed, and the program figures do not change by state. Nothing in the mechanics above is Virginia-specific. Taxes, insurance, and local prices are context, not program parameters, and they do change the size of the payment the income has to carry.
The practical Virginia pattern is borrower profile, not rule. Northern Virginia files often involve federal retirees, contractors who sold a business, and households with large brokerage balances. Those profiles fit income-light, cash-heavy files, which is what both paths exist for. Treat that as a pattern, not a program feature.
Common Mistakes That Push a File to the Wrong Path
- Counting the down payment twice. Funds used for the down payment, closing costs and reserves cannot also count as qualifying assets. A heavy cash-to-close shrinks the pool.
- Counting ineligible assets. Crypto, deferred compensation and stock options are the usual offenders.
- Stale statements. A 100-day-old statement fails the depletion rule of 120 days old plus one within 45 days. The qualifier path wants two months for each account.
- Counting cash-out proceeds. They never count as qualifying assets on the depletion path.
- Mixing the tables. Applying the 70% retirement haircut to a qualifier file, or the 90% credit to a depletion file, produces numbers no lender will accept.
- Assuming the borrower must sell. Neither path requires liquidating the assets.
Federal ability-to-repay rules explain why verification is non-negotiable. The rule requires a creditor to verify the assets it relies on using third-party records, and the CFPB’s compliance guide lists current or expected income or assets as the first underwriting factor. Lenders may add overlays on top of that. The rule does not prescribe a depletion formula, so the 60-month divisor is the program’s own policy.
Where These Sit Next to DSCR and Bank Statement Loans
Asset paths are for consumer purchases where personal income is thin and balances are large. 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, and they qualify primarily on property-level rental income covering the payment, subject to lender guidelines. A rental purchase that already cash flows usually belongs there. Lendmire’s complete DSCR loans guide covers that path. The bank statement program is a separate option for borrowers who document income with deposits.
Virginia borrowers face the same decision with the same figures. Tax treatment varies; consult a qualified professional.
Frequently Asked Questions
Are asset qualifier and asset depletion the same thing?
Sometimes, depending on the lender. Some lenders use both labels for one method. In Lendmire’s network they are two paths: the qualifier path covers the whole loan with assets, and the depletion path turns assets into income over 60 months. Confirm which test a quote actually uses.
Can I use an investment property on the qualifier path?
No. Investment property is only available on the asset depletion path, with leverage up to 65% on a purchase or rate-and-term refinance and 60% on a cash-out, subject to underwriting. These specifics are subject to lender guidelines and a full review of property, leverage, and credit.
Do I have to sell my investments to qualify?
No. Neither path requires liquidation. The balances are documented with statements and counted at their credit percentages, and the assets stay where they are.
Which path counts my 401(k) for more?
The qualifier path, at 90% under 59½ and 100% at 59½ or older. The depletion path counts retirement accounts at 70% at any age. Account types and documentation is reviewed by the lender.
What if depletion income falls short?
The qualifier path may fit if usable assets cover the whole loan. Depletion income can also supplement documented income up to a 45% debt-to-income ratio. Both depend on the lender’s review and the full file.
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. Virginia files with large balances and little documented income tend to turn on loan size against the usable pool, which is the first thing to run.
Lendmire’s asset-based mortgage in Virginia page presents the program for Virginia borrowers.
About Lendmire
As a mortgage broker (NMLS# 2371349), Lendmire helps self-employed and high-net-worth borrowers in 16 states qualify on bank statements, a profit-and-loss statement, 1099s or liquid assets instead of tax returns, through wholesale lenders. Lendmire is never the lender; program terms are set by the lender and its guidelines. 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 small entity compliance guide
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 Virginia
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.