The Quick Read: Yes, a Montana buyer with no income can usually borrow against a house bought with cash, as long as enough documented assets remain after the purchase, because an asset-based mortgage drives lender review on seasoned assets instead of a paycheck, subject to underwriting and lender guidelines. The catch is that the cash spent on the house no longer counts as an asset. What is left in your accounts decides which path fits.
- Qualifier path: eligible assets, after credit percentages, must equal or exceed the entire loan.
- Depletion path: usable assets divided by 60 months become qualifying income that runs through a debt-to-income test.
- Documents: no traditional personal-income documentation, pay stubs or employment verification, but the assets are fully documented with statements.
- Property use: principal residences and second homes work on both paths, while investment property works only on the depletion path.
The Short Version of Why This Works
Asset-based mortgages exist for borrowers with large balances and little documented income. Retirees, business sellers, people who received an inheritance or a settlement, and households living on a portfolio all fit that profile. The lender asks a different question than a paycheck lender does. It asks whether the assets can carry the loan.
Lendmire is a mortgage broker, and its consumer mortgage lending is licensed in 16 states, Montana among them. Through select lenders in its wholesale network, it arranges asset-based mortgage programs for this kind of borrower. Every file is fully underwritten, and the borrower proves the assets with statements. The program is also a consumer mortgage, so standard TRID disclosures apply.
Nothing about the figures below changes because the property sits in Montana. Taxes, insurance and local prices are context. The program parameters are the same in every state where it is offered.
What a Cash Purchase Does to Your Qualifying Assets
A cash purchase turns liquid wealth into home equity. That is the whole problem in one sentence. A lender that underwrites around assets can only count the assets still in your accounts, and the money already paid to the seller is gone.
Many cash buyers skip this step in their planning. They assume the new house is an asset the lender will count. Depending on the path, that is only partly true.
On the depletion path, real-estate equity is an eligible asset class at 60%. How a lender treats equity in the very home being refinanced is set by that lender, so ask before relying on it. Cash-out proceeds never count as qualifying assets on the depletion path either.
The practical rule is simple. Check what is left in seasoned, eligible accounts after the cash closes. Then size the future loan against that remainder.
Path One: Assets Cover the Whole Loan
On the asset qualifier path, eligible assets must equal or exceed the entire loan amount. No employment or income is documented. The lender’s ability-to-repay review rests on the assets.
Typical ranges on this path, through select programs and subject to underwriting:
- Leverage: up to 80% loan-to-value on a purchase and 75% on a refinance, on a principal residence or second home.
- Loan size: up to $4,000,000.
- Credit: a 600 minimum score.
- Seasoning: 60 days, with two months of statements for each qualifying account.
- Reserves: none required at or below 75% loan-to-value. Above that, the lender sets them.
Whether cash-out proceeds are allowed on this path, and at what leverage, is set by the lender and is not published. Ask for that answer in writing before you plan around it.
The credit percentages matter. Brokerage accounts, certificates of deposit, money market and savings count at 100%. A 401(k) or IRA counts at 90% under age 59½ and 100% at 59½ or older. Accounts combine.
Here is an illustration only, and the lender’s own calculation governs. Say you want an $800,000 loan. You hold $330,000 in brokerage accounts, which count at 100% for $330,000. You hold $300,000 in a 401(k) while under 59½, which counts at 90% for $270,000. You hold $200,000 in savings, which counts at 100% for $200,000. That totals $800,000 of usable assets, which matches the loan, so the file is reviewed on assets alone.
Path Two: Assets Become Monthly Income
The asset depletion path works differently. Usable assets, after the haircuts below, are divided by 60 months. The result is a monthly qualifying income that must carry the full housing payment and your other debts through the debt-to-income test.
The haircuts are steeper here. 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%.
An illustration, again with the lender’s calculation governing. Say you hold $1,500,000 in securities, which count at 80% for $1,200,000. You also hold $300,000 in cash, which counts at 100%. That is $1,500,000 usable. Divided by 60 months, it produces $25,000 of monthly qualifying income. That income must then carry the housing payment and other debts.
This path has its own floors. Qualified assets must be at least the lesser of $1,000,000 or 1.25 times the loan balance. When depletion is the only income source, liquid assets never fall below $250,000. Loans run from $125,000 to $3,500,000. Credit follows the lender’s score and loan-amount matrix.
Asset-derived income can also supplement documented income, up to a 45% debt-to-income ratio. When it supplements, the minimum-assets rule is waived.
A borrower is qualified on one path at a time. The two never blend.
The Two Paths Side by Side
| Factor | Asset qualifier | Asset depletion |
|---|---|---|
| How assets are used | Must cover the whole loan | Divided by 60 into income |
| Income documented | None | Derived, runs through DTI |
| Home purchase leverage | Up to 80% | Up to 80% (65% investment) |
| Refinance leverage | Up to 75% | Up to 80% rate-and-term |
| Cash-out | Lender-set, not published | Up to 60% (all occupancies) |
| Loan range | Up to $4,000,000 | $125,000 to $3,500,000 |
| Statements | 60-day seasoning, 2 months | 120 days old plus one in 45 |
All figures are typical ranges through select programs, subject to underwriting. The depletion leverage figures for principal residences and second homes are 80% and 60%. Investment property runs 65% on a purchase or rate-and-term refinance and 60% on a cash-out.
What Counts as an Asset (and What Doesn’t)
Regulated, statement-documented accounts count. Several assets that buyers often think of do not.
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.
Cryptocurrency, precious metals, collectibles, business accounts beyond your ownership share, and pledged or borrowed funds 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.
Statements matter as much as balances. On the depletion path, 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. Here the program recognizes the borrower who was income-light only because the wealth arrived recently.
A Cash Buyer Scenario
Consider a Montana business owner who sold a company and paid cash for a home. Now the owner wants a loan to rebuild liquidity.
The first question is which assets remain. If the remaining eligible accounts clear the entire new loan after the credit percentages, the qualifier path is the cleaner fit. If they do not, the depletion path may work, provided the assets clear its minimums and the derived income carries the payment. Sale proceeds from a business are excused from the depletion seasoning rule.
The second question is the loan type. A refinance for a principal residence or second home on the qualifier path tops out at 75% loan-to-value. On the depletion path, a rate-and-term refinance reaches 80% and a cash-out reaches 60%. Cash-out proceeds cannot be counted as assets for the same loan.
The third question is documentation. Keep the settlement statement, the statements showing where the purchase funds came from, and the post-closing balances. A lender reviews all three, and a clear trail reduces friction.
Does This Work on a Rental House?
Yes, with a narrower lane. Investment property qualifies only on the asset depletion path, where the loan is business-purpose, and leverage drops to 65% on a purchase or rate-and-term refinance and 60% on a cash-out. A first-time investor on this path needs a 700 credit score. Exact terms depend on the lender’s guidelines, property type, leverage, and a full review of the borrower’s file.
Business-purpose loans are reviewed differently from standard owner-occupied mortgages. The CFPB’s Regulation Z, section 1026.3 turns on the purpose of the credit. Rental property that will be owner-occupied within the year is treated differently, and the rule deems credit to buy such a property business-purpose only above two units. A cash-out on a single-family rental used for personal expenses can bring consumer rules back, as a Doss Law guide on the business-purpose exemption explains.
For a rental held mainly for rent, a rent-based DSCR loan is another route. It qualifies primarily on property-level rental income covering the payment, subject to lender guidelines. It is a different program from the asset-based loans here, so compare the two before choosing.
What About the Agency Delayed Financing Rule?
This is where many cash buyers get confused. Agency cash-out refinances carry a six-month title clock, and Fannie Mae’s Selling Guide on cash-out refinances waives that clock under a delayed financing exception for documented all-cash purchases. That rule is an exception to a waiting period, not a loan program. Agency loans are also judged on the borrower’s personal income.
A borrower with no income would not fit that lane. That is why the asset-based route exists. It does not rest on agency rules at all, and the agency limits do not apply to it.
Should You Pay Cash at All?
Paying cash is the right move when the seller’s terms depend on it and you can afford the lock-up. It is the wrong move for some portfolio-heavy borrowers.
If your wealth sits in brokerage accounts, a cash purchase sells those assets and removes them from the count the lender needs. Buying with an asset-based purchase loan can leave the portfolio intact and invested. On the qualifier path, a purchase reaches 80% loan-to-value on a principal residence or second home.
Closing costs also arrive twice if you pay cash and refinance later. Compare the total cost of both sequences before you make the offer.
The flip point is the size of your remaining assets. If you can pay cash and still hold enough seasoned assets to cover a future loan, the cash-then-borrow sequence works. If cash would leave you short, a loan at purchase is the safer plan.
Where Plans Break
Most failures come from the same few places.
- Assets already spent. The remaining accounts do not clear the loan on the qualifier path or the depletion minimums.
- Thin seasoning. Newly moved funds lack the 60 days on the qualifier path, or the statement ages on the depletion path.
- Ineligible asset types. Crypto, cash on hand, or pledged funds sit in the plan but cannot be counted.
- Wrong path. An investment property is run on a path that does not allow it.
- Credit gaps. Credit below the lender’s matrix, or housing history worse than 0x30x12, can sink an otherwise strong file. One 30-day late in the last twelve months is considered case by case, multiple bankruptcies are not eligible, and a housing event needs four years of seasoning on the depletion path.
Tax treatment can depend on how the funds are used and how the property is held; borrowers should keep clear records and speak with a qualified tax professional before relying on any deduction.
Key Terms Defined
Asset qualifier path: the route where eligible assets, after credit percentages, equal or exceed the whole loan and no income is documented.
Asset depletion path: the route where usable assets divided by 60 months become qualifying income for the debt-to-income test.
Seasoning: the time funds must have sat in your accounts, shown by statements, before a lender will count them.
Usable assets: the share of each balance a program credits after its percentages or haircuts.
Business-purpose loan: credit taken mainly for investment or business use, which is reviewed differently from an owner-occupied mortgage.
Delayed financing: an agency exception that lets a documented all-cash buyer skip the usual cash-out waiting period.
Where to Go From Here
For lenders in this lane, the strongest files show clean statements, a clear source for the cash used at purchase, and an honest count of what remains. 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. Programs change, and every file is underwritten individually, so nothing here is a commitment to lend.
Frequently Asked Questions
Do I need a job to get a mortgage after a cash purchase?
No job is required on the asset qualifier path, where no employment or income is documented and the assets must cover the whole loan. On the depletion path, income is derived from assets and runs through the debt-to-income test. Both paths are fully underwritten, and the assets are documented with statements.
Does a second home qualify, or only a primary residence?
Both qualify, with the same leverage on each path. The qualifier path allows up to 80% on a purchase and 75% on a refinance, and the depletion path allows 80% on a purchase or rate-and-term refinance and 60% on a cash-out. Investment property is different. It qualifies only on the depletion path, at 65% and 60%.
Do gifted or borrowed funds count as assets?
Pledged or borrowed funds are not published as eligible on either path. Whether gifted funds can be counted depends on the lender’s review of the source, so ask before you rely on them. The documented route for unusual assets is to convert them to a seasoned cash balance in a regulated account.
Does credit still matter if I qualify on assets?
Yes. The qualifier path has a 600 minimum score, and the depletion path follows the lender’s score and loan-amount matrix. A first-time investor on the depletion path needs 700. Credit is reviewed, and approval is never promised.
How long after buying with cash can I apply?
These programs set seasoning on the assets, not a waiting period tied to the purchase date. That means 60 days with two months of statements on the qualifier path, and statements 120 days old plus one within 45 days on the depletion path. Some lenders add their own conditions, so confirm before you make a cash offer.
Lendmire’s asset-based mortgage in Montana page presents the program for Montana 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.
Investors who want the broader program framework can review how DSCR loans work.
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Informational only. Not a Loan Estimate, approval, or commitment to lend. Program availability and eligibility are subject to lender guidelines, credit approval, property review, and underwriting.
References
1. CFPB Regulation Z, section 1026.3: Exemptions
2. Doss Law: Business Purpose Exemption Simplified
3. Fannie Mae Selling Guide B2-1.3-03: Cash-Out Refinance Transactions
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 Refinance a Pennsylvania Mortgage After Retiring With No W-2 Income · How to Refinance a Mortgage After Retiring With No W-2 Income · How to Refinance an Ohio Mortgage After Retiring With No W-2 Income
Guides: Asset-Based Mortgage in Montana
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.