The Quick Read: Usually no, because an asset-based mortgage is reviewed around the balances in your accounts, so traditional personal-income documentation, W-2s and pay stubs are not normally part of the file, though your statements, credit, property and funds are all still documented and reviewed, subject to underwriting. The answer can change on one path, and Montana does not change it.
- Two paths exist. On the asset qualifier path your eligible assets cover the whole loan and no income is documented. On the asset depletion path your assets are turned into monthly income.
- Statements replace returns. Expect account statements, a credit review, an appraisal and a source-of-funds review.
- Returns can return in edge cases. That happens if you add documented income, bring in a co-borrower who is reviewed on income, or switch programs.
- Montana makes no difference. The program figures are the same in every state where the loans are offered. This is a national answer written for a Montana borrower.
- Leverage is capped. Through select programs, subject to underwriting, the ceilings run from 60% to 80% depending on the path, the use of the property and the transaction type.
What “Asset-Based Mortgage” Means Here
An asset-based mortgage is a home loan where your savings and investments, not your paychecks, show you can repay. Lendmire is the broker. It places these files with select lenders in its wholesale network, and each file is underwritten on its own.
The phrase causes confusion for two reasons. Some Montana search results blur it with asset-based lending, meaning hard-money or bridge loans secured by collateral. Those are short-term business loans. They are a different product.
Others use it as shorthand for a rental-property loan that is reviewed on the property’s rent. That one is a DSCR loan, and it gets its own section below. The loan here is a consumer mortgage when it finances a principal residence or second home, qualified on what you own. On the asset depletion path it can also finance an investment property, and that loan is business-purpose.
It suits a specific borrower. Think of a retiree living on a portfolio, someone who sold a business, an heir with an inheritance, or a household with a large balance and little documented income. The balance sheet is strong. The tax return, which shows only taxable income, tells a thinner story.
The Two Paths, and Why They Answer Differently
The two paths treat traditional personal-income documentation differently, so you need to know which one you are on. A borrower is qualified on one path at a time. Never blend the two sets of figures.
Asset qualifier path. Your eligible assets, after the credit percentages below, must equal or exceed the entire loan amount. No employment or income is documented. Because no income is being calculated, there is nothing for a tax return to prove.
Asset depletion path. Your eligible assets, after haircuts, are added up and divided by 60 months. The result is a monthly qualifying income. That income must carry the full housing payment and your other debts through the debt-to-income test.
Income is derived here, but it is derived from statements. It is not drawn from your return. On this path, traditional income documentation is still typically not the source.
A quick way to choose a path: if your assets are larger than the loan, the qualifier path is the cleaner fit. If your assets are good but smaller than the loan, the depletion path may work, because it only needs the income to carry the payment. You will meet extra minimums on that path, covered below.
What Lenders Ask for Instead of Tax Returns
Less income paperwork never means no paperwork. The assets themselves are fully documented on both paths. Here is what a typical file holds.
| Document | Why it is needed | What to prepare |
|---|---|---|
| Account statements | Prove the balances count | Every page, every qualifying account |
| Credit report | Eligibility and pricing | Be ready for a hard pull |
| Appraisal | Value drives leverage | Access to the property |
| Source of funds | Shows deposits are yours | Records for any large deposit |
| ID and purchase contract | Identity and deal terms | Signed contract if buying |
Seasoning is the waiting period an asset must sit in your account before it counts. The two paths set it differently.
- Qualifier path: 60 days of seasoning, with two months of statements for each qualifying account.
- Depletion path: statements 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.
Credit also matters. The qualifier path publishes a 600 minimum score. The depletion path follows the lender’s matrix of score and loan amount, and a first-time investor on that path needs 700. Housing history is typically 0x30x12, though one 30-day late in the last twelve months is considered case by case. Multiple bankruptcies are not eligible, and a housing event needs 4 years of seasoning on the depletion path. All of it is subject to underwriting.
Which Assets Count, and How Much
Not every dollar counts in full. The percentages differ by path, so keep them separate.
Qualifier path (share of balance that counts):
- Brokerage accounts, certificates of deposit, money market and savings: 100%.
- 401(k) and IRA balances: 90% under age 59½, and 100% at 59½ or older.
- Accounts combine.
Depletion path (share of balance that counts):
- Cash accounts and certificates of deposit: 100%.
- Securities: 80%.
- Private stock: 75%.
- Retirement accounts: 70% at any age.
- Real-estate equity: 60%.
Some assets are not eligible on the depletion path at all. They include 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.
Cryptocurrency, precious metals, collectibles, pledged or borrowed funds, and business accounts beyond your ownership share are not published as eligible on either path. If those make up much of your wealth, the documented route is to convert them to a seasoned cash balance in a regulated account. The lender then reviews the source of that cash.
How the Numbers Work
These examples are illustrative. The lender’s own calculation governs.
Qualifier path. Say the loan is $800,000. You hold $330,000 in brokerage accounts, which count at 100%, so $330,000. You hold $300,000 in a 401(k) and you are under 59½, so it counts at 90%, which is $270,000. You hold $200,000 in savings at 100%, so $200,000. Usable assets total $800,000. That covers the loan, so it is reviewed on assets alone, subject to underwriting.
Depletion path. Say you hold $1,500,000 in securities, which count at 80% for $1,200,000, plus $300,000 in cash at 100%. That is $1,500,000 of usable assets. Divide by 60 months and you get $25,000 of monthly qualifying income. That income then carries the housing payment and other debts through the debt-to-income test.
Notice what neither example asked for. No return was needed to produce the income. The statements did the work.
Two floors apply on the depletion path. Qualified assets must be at least the lesser of $1,000,000 or 1.25 times the loan balance. And when asset depletion is your only income source, you need no less than $250,000 liquid. If your assets only supplement documented income, the program allows a debt-to-income ratio up to 45%, and the minimum-assets rule is waived.
Leverage and Loan Size
These are ceilings, not offers. Each figure applies through select programs, subject to underwriting.
| 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 |
The qualifier path’s cash-out terms are set by the lender and are not published, so none are stated here. On the depletion path, cash-out proceeds never count as qualifying assets.
Loan amounts run up to $4,000,000 on the qualifier path and $125,000 to $3,500,000 on the depletion path. Reserves work this way: the qualifier path requires none at or below 75% loan-to-value, and above that the lender sets them. The depletion path has no published reserve months.
When Tax Returns Can Come Back
“Usually no” is the honest answer. A few situations can bring returns into the file.
| Situation | Returns likely? | Why |
|---|---|---|
| Qualifier path, assets cover the loan | Typically no | No income is documented |
| Depletion path, assets are your only income | Typically no | Income comes from statements |
| Assets supplement documented income | Possibly | The income you add must be documented |
| Co-borrower is reviewed on income | Likely for that person | Their income needs support |
| You drift to a full-documentation loan | Yes | That program verifies income |
| Lender overlay or manual review | Possibly | Individual underwriting can ask for more |
Switching programs is the big one. If your assets fall short on both paths, a loan built on documented income may be the next option. Full-documentation jumbo and conventional loans verify income with returns under those programs’ own rules. A borrower comfortable with returns may find that route simpler.
Self-employed borrowers get asked this a lot. Lendmire’s piece How Many Years of Tax Returns Does a Self-Employed Mortgage Need? covers the full-documentation side.
Which Path Fits You?
Match the path to where your strength sits.
- Assets larger than the loan. The qualifier path fits best. Check your retirement balances against the age break at 59½.
- Assets good, loan larger. The depletion path turns them into income. Confirm you clear the minimums first.
- Strong deposits, thin assets. A bank statement loan may fit better. That is a different program for borrowers who document income with deposits.
- Rental property, strong rent. This is business-purpose territory, and DSCR is the usual fit. See the next section.
- Steady traditional employment income and good credit. Full documentation can win. Do not skip the simpler route because a niche program sounds clever.
Say you sold a business and the proceeds sit in a brokerage account. Funds from a business sale are excused from the depletion path’s seasoning period. That helps if you need to move soon.
What About Rental Property in Montana?
Investment property is the one case where this article’s answer needs a fork.
On the asset depletion path, investment property is allowed at the lower 65% and 60% ceilings above. That loan is business-purpose, and it is still qualified on your assets rather than on the property’s rent.
If you want to qualify the property on its rent instead, you are looking at a different product. 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 Federal Register preamble to the federal ability-to-repay rule describes how business-purpose and investment loans fall outside that rule.
Occupancy decides which side you land on. Doss Law explains that if you expect to live in the property more than 14 days in the coming year, it is treated as a consumer loan unless it has more than two units. Plan to live in the home and the DSCR route is closed. The asset-based paths above are the better fit.
DSCR qualifies primarily on property-level rental income covering the payment, subject to lender guidelines. Lendmire’s complete DSCR loans guide explains how that coverage test works.
Does Montana Change Anything?
No. The rule is national. The program figures above do not change by state, and no Montana-specific tax-return rule applies to these loans. What differs by state is the local context: home prices, taxes and insurance. Those are not program terms.
A few Montana-flavored profiles tend to fit this program:
- The relocating retiree. Large balances from a home sale elsewhere, modest taxable income. The qualifier path may cover a purchase outright.
- The land-rich household. Wealth sits in ranch or land equity. Real-estate equity counts at 60% on the depletion path, but it is the weakest of the credited assets. Liquid accounts do the heavy lifting.
- The second-home buyer. A cabin or recreational purchase can run on either path at the second-home leverage ceilings, subject to underwriting.
- The seasonal or entity-income owner. Income swings make a return look small. Assets can tell the steadier story.
Key Terms Defined
Asset qualifier path: the approach where eligible assets must cover the entire loan, with no income documented.
Asset depletion path: the approach where usable assets divided by 60 months become qualifying monthly income.
Haircut: the share of an account’s balance that does not count toward qualifying.
Seasoning: the time funds must sit in your account before they count.
Debt-to-income ratio: your monthly debts divided by your qualifying monthly income.
Loan-to-value (LTV): the loan amount as a percentage of the property’s value.
Business-purpose loan: a loan for investment property rather than a home you live in.
What a Broker Sees on These Files
Files stall on small things. A large deposit with no paper trail is the usual culprit. Another is a retirement account counted at the wrong percentage, which makes the numbers fall short after the lender adjusts them.
A third is mixing paths. A borrower reads the qualifier path’s percentages and the depletion path’s minimums as one table. Across the programs Lendmire places files with, each path is reviewed separately. Keep your numbers separate too.
Ask any lender these four questions up front:
1. Which path is my file running on?
2. What percentage does each of my account types count at?
3. Will any income or tax return be needed, and under what condition?
4. What statement dates and seasoning must I meet?
Then compare the answers across lenders, because overlays differ.
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. Tax treatment varies; consult a qualified professional.
Frequently Asked Questions
Do I need W-2s or pay stubs for an asset-based mortgage?
Typically not. The qualifier path documents no employment or income at all. The depletion path derives income from your asset statements. The exception is any documented income you choose to add alongside your assets, or a co-borrower who is reviewed on income.
Can I use my 401(k) or IRA without withdrawing it?
Yes, the balance can count without a withdrawal. On the qualifier path it counts at 90% under age 59½ and 100% at 59½ or older. On the depletion path it counts at 70% at any age. Eligibility is subject to underwriting and statement requirements.
Do I have to sell or pledge my assets?
The program figures here describe qualifying on balances, not liquidating them. Pledged or borrowed funds are not published as eligible. Cash-out proceeds never count as qualifying assets on the depletion path. Confirm any pledge or liquidation question with the lender on your file.
Is this the same as a DSCR loan?
No. An asset-based mortgage is reviewed against assets. It can finance a home you live in or a second home, and on the depletion path it can also finance an investment property as a business-purpose loan. A DSCR loan is reviewed primarily on property-level rental income covering the payment, subject to lender guidelines, and it is only for non-owner-occupied investment property. DSCR loans also fall outside the consumer disclosure rules that apply to asset-based mortgages on a home you live in.
Does “no tax returns” mean no documentation?
No. You still provide account statements, credit, appraisal, source of funds and identity. On a principal residence or second home the loan is a consumer mortgage, so the standard consumer disclosures apply. Less income paperwork is not no paperwork.
Lendmire’s asset-based mortgage in Montana page presents the program for Montana 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 conventional personal-income paperwork, 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. Federal Register – Ability-to-Repay and Qualified Mortgage Standards
2. Doss Law – Business Purpose Exemption
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 Montana Business Owners Buy a Home on Savings Instead of Tax Returns · How to Buy Before You Sell in Tennessee Using an Asset Qualifier Mortgage · Which Accounts Count on a Washington Asset-Based Mortgage?
Guides: Asset-Based Mortgage in Montana
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.