The Quick Read: The usable amount depends on what the $1 million is held in, and the lender converts it by dividing by 60 months. A pool that counts at 100% gives the highest qualifying income, and accounts that take a haircut give less. On the asset depletion path, the lender applies a haircut to each account type, then divides the usable total by 60 months, subject to underwriting.
- All cash and CDs count at 100%, so $1 million in those accounts produces the highest monthly qualifying income of any account type.
- Securities count at 80% and retirement accounts at 70%, so the same $1 million produces progressively less qualifying income in those account types.
- Your down payment, closing costs and any required cash come out of the pool before the division.
- The figure is qualifying income for a debt-to-income test. It is not money paid to you, and nothing is sold.
- A separate asset qualifier path skips income entirely, and the section below explains when it fits better.
Which Path Fits Your Situation?
Michigan retirees, business sellers and portfolio-heavy households usually have more than one way to use the same statements. Across our wholesale network, asset-based mortgage programs come in two forms, and a borrower is reviewed on one at a time.
The asset qualifier path covers the entire loan with eligible assets. You document no employment or income. Usable assets, after the percentages below, must equal or exceed the whole loan amount. Loans run up to $4,000,000 through select programs.
The asset depletion path turns assets into monthly income. That income must carry the housing payment and your other debts through the debt-to-income test. Loans run from $125,000 to $3,500,000 through select programs.
Both are consumer mortgages. The qualifier path is for a principal residence or second home. The depletion path also allows an investment property, where the loan is business-purpose and leverage is lower. Michigan is one of the 16 states where Lendmire’s consumer mortgage lending is licensed. Lendmire arranges these loans as a broker. The lender reviews and approves the file.
What Does $1 Million Produce on a Michigan Asset Depletion Loan?
On the depletion path, a typical program divides usable assets by 60 months. The usable amount depends on the account type. The math is the same for a Michigan borrower as for any other, because program figures do not change by state.
The formula in words: eligible balances times their haircut percentages, minus what the purchase consumes, divided by 60. The table below compares a $1 million portfolio held in different ways. Cash and CDs set the baseline at 1.00x, and each other row is shown against it. The lender’s own calculation governs.
| $1M held as | Share counted | Usable | Monthly income vs. cash baseline |
|---|---|---|---|
| Cash and CDs | 100% | $1,000,000 | 1.00x |
| Securities | 80% | $800,000 | 0.80x |
| Retirement accounts | 70% | $700,000 | 0.70x |
| Mixed (see below) | blended | $840,000 | 0.84x |
The mixed row assumes $500,000 in securities, $300,000 in cash and $200,000 in retirement accounts. That is $400,000, $300,000 and $140,000 usable, which totals $840,000.
Most households hold a blend, so the realistic answer sits between the top and bottom rows. Private stock counts at 75% and real-estate equity at 60%, which pulls a blend lower still.
Why Your Real Number Is Usually Lower Than the Table
The table starts from a clean $1 million. Real files rarely do.
Across the programs we place files with, the cash going into the purchase comes out of the pool first. That includes your down payment, closing costs and any reserves the lender asks for. Picture a borrower whose purchase consumes a quarter of an all-cash $1 million pool. Only $750,000 gets divided, which produces a correspondingly smaller amount of monthly qualifying income.
Haircuts and deal costs stack. A securities-heavy portfolio that also funds the purchase can lose a third of its starting value before the division happens.
Cash-out refinance proceeds never count as qualifying assets. Borrowed or pledged funds do not count either.
There is also a minimum-asset test. The depletion path wants qualified assets of at least the lesser of $1,000,000 or 1.25 times the loan balance. When asset income is your only income, you also need at least $250,000 in liquid assets. A pool that shrinks after haircuts can matter on a larger loan, subject to underwriting.
If your assets only supplement documented income such as a pension or Social Security, that minimum-assets rule is waived. Asset-derived income can then supplement documented income up to a 45% debt-to-income ratio.
How Does the Regulator View This Math?
The method has a formal name. Asset dissipation underwriting. OCC Bulletin 2019-36 describes it as using an applicant’s assets to calculate a hypothetical annuity stream. That stream is then added to other income.
That wording explains the “nothing is sold” point. The depletion is a model, not a withdrawal. You keep the accounts, and the lender re-verifies them.
The bulletin sets a prudence standard. It does not set a mandatory divisor or haircut table. A law-firm summary of the bulletin says it asks banks to build policies consistent with safety-and-soundness standards. A trade summary lists the policy topics: verifying asset ownership and value, setting return assumptions, and setting dissipation periods.
This is context, not the governing rule for every lender. The OCC supervises national banks, and each lender sets its own policy within its own framework. That is why divisors vary so much across the market. Some lenders use much longer divisors and produce far less income from the same $1 million. The divisor can change qualifying income by more than double. Compare the divisor, not just the haircuts, when you shop programs.
What Counts, and What Does Not?
On the depletion path, the usable share depends on the account.
| Asset type | Share counted (depletion path) |
|---|---|
| Cash accounts | 100% |
| Certificates of deposit | 100% |
| Securities | 80% |
| Private stock | 75% |
| Retirement accounts | 70% at any age |
| Real-estate equity | 60% |
Several asset types are not eligible on this path. These include custodial accounts, deferred compensation, escrow accounts, foreign funds, cash on hand, stock options and non-vested restricted stock units. Funds from non-regulated financial companies are also excluded.
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 cash in a regulated account. The funds then season, and the lender reviews the source.
Retirement balances are where the paths diverge most. On the qualifier path, 401(k) and IRA balances count at 90% under age 59½ and 100% at 59½ or older. That is a better treatment than the depletion path’s 70%. Tax treatment varies; consult a qualified professional before moving retirement money.
When the Qualifier Path Beats the Income Math
The qualifier path never converts assets to income, so $1 million produces no monthly figure there. It asks a simpler question: do your usable assets cover the whole loan?
Here is a sanctioned example. An $800,000 loan is backed by $330,000 in brokerage accounts (100%, so $330,000 counts), $300,000 in a 401(k) while under 59½ (90%, so $270,000 counts) and $200,000 in savings (100%, so $200,000 counts). Usable assets total $800,000, which equals the loan, so the file is reviewed on assets alone, subject to underwriting.
For a borrower with a large portfolio and a modest loan, this path is often cleaner. Leverage tops out at 80% on a purchase and 75% on a refinance, for a principal residence or second home. No reserves are required at or below 75% loan-to-value, and above that the lender sets them. The depletion path suits borrowers who need a documented income figure, such as when other debts must be supported or the loan is larger.
Leverage, Credit and Seasoning
The figures below are ceilings and floors across select programs, not offers.
| Item | Qualifier path | Depletion path |
|---|---|---|
| Purchase leverage, principal residence or second home | up to 80% | up to 80% |
| Refinance leverage, principal residence or second home | up to 75% | 80% rate-and-term, 60% cash-out |
| Investment property | not covered | 65% purchase, 60% cash-out |
| Seasoning | 60 days, two months of statements | statements 120+ days old, plus one within 45 days |
| Credit | 600 minimum | the lender’s matrix |
On the depletion path, a first-time investor needs a 700 score. Housing history is 0x30x12, and one 30-day late in the last twelve months is reviewed case by case. Multiple bankruptcies are not eligible. A housing event needs four years of seasoning.
Funds from the sale of a business, an inheritance or a legal settlement are excused from the depletion path’s seasoning rule. The assets are still documented. The qualifier path’s no-income feature never means no documentation, and the lender still reviews credit and the property.
Does This Work for Rental Properties?
Mostly no, with one exception worth knowing.
A DSCR loan is reviewed for the property on its rent compared with its payment, with no personal income test. Asset depletion never enters that file. If your goal is a pure rental purchase, DSCR is the usual route.
On the depletion path, an investment property is allowed at the lower 65% purchase and 60% cash-out leverage listed above. That loan is business-purpose, so it is a different animal from a DSCR loan. Terms depend on the lender’s guidelines, the property type, the leverage, and a full review of the credit profile.
Many borrowers use both. Asset depletion can finance a Michigan primary residence or second home, and DSCR can finance the rentals.
Key Terms Defined
Asset depletion: an underwriting method that converts eligible assets into a monthly qualifying income, without selling anything.
Haircut: the share of an asset’s value a lender discounts because the asset can fall in value or be hard to reach.
Divisor: the number of months the usable pool is divided by to get monthly income, which is 60 on the depletion path.
Debt-to-income (DTI): the share of qualifying income that goes to housing and other debts each month.
Seasoning: how long funds have sat in your accounts before the lender counts them.
Risks and Who This Is Wrong For
The qualifying-income figure is a model. It is not a spending plan. A $1 million pool with a high income figure can still leave you thin on cash after closing if the purchase consumes a large share of it.
Markets move too. Securities that count at 80% today could be worth less at the next statement, so lenders re-verify balances during the file.
This path is wrong for borrowers who have strong documented income already, or whose wealth is mostly in business accounts or crypto that has not been converted. It is also wrong for someone buying a pure rental, because DSCR is built for that.
Frequently Asked Questions
Do I have to sell my investments or retirement accounts to qualify?
No. Nothing is sold or withdrawn. The assets stay in your accounts, and the lender uses the balances to calculate an income figure. The lender will still verify ownership and current values through your statements.
Is the monthly income number what the lender will actually give me?
No. It is a qualifying figure that feeds the debt-to-income test, not an approval and not a payment to you. The lender’s own calculation governs, and each file is underwritten individually.
Does a $1 million portfolio always meet the minimum-assets rule?
Not always. On the depletion path, qualified assets must be at least the lesser of $1,000,000 or 1.25 times the loan balance. Haircuts and the cash your purchase consumes can shrink the pool, so a larger loan needs more cushion. The rule is waived when asset income only supplements documented income.
Can I combine asset income with Social Security or a pension?
Yes, on the depletion path. Asset-derived income may supplement documented income, up to a 45% debt-to-income ratio. When it supplements, the minimum-assets rule is waived.
Why do online examples show such different answers for $1 million?
Lenders use different divisors and haircuts, so the same pool produces very different income. Some examples ignore the cash the purchase consumes. Our figures reflect select programs in Lendmire’s network, and they change, so confirm them against your own file.
Next Step
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. Program figures do not change by state.
Cash and CDs count at 100% while securities count at 80% and retirement accounts at 70%, so moving balances into cash well before you apply can raise the usable pool.
Lendmire’s asset-based mortgage in Michigan page presents the program for Michigan borrowers.
About Lendmire
Lendmire is a mortgage brokerage (NMLS# 2371349) licensed for consumer mortgage lending in 16 states, arranging bank statement and other alternative-documentation mortgages — P&L-only, 1099-only and asset-based paths — through a wholesale lending network. Eligibility is determined by the lender on each file. Scotsman Guide named Lendmire a Top Mortgage Workplace in both 2025 and 2026.
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References
2. Orrick InfoBytes: OCC Releases Asset Dissipation Underwriting Guidance
3. Compliance Alliance: OCC Bulletin 2019-36 on Asset Dissipation Underwriting
This article is part of Lendmire’s asset-based mortgage program — full qualification details, guidelines, and scenarios live on the program page.
Related reading: Asset Qualifier vs Asset Depletion for an Ohio Retiree · How Much Can You Cash Out of a Rental Property on an Asset Depletion Loan? · Fannie Mae Asset Depletion vs. a Non-QM Asset Depletion Loan in Tennessee
Guides: Asset-Based Mortgage in Michigan
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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Compliance and disclosures. Lendmire (NMLS# 2371349) is a licensed mortgage broker and is not a direct lender, depository institution, financial advisor, or tax professional. Content in this article is general market analysis and educational information — not financial, legal, or tax advice for any specific situation. Lendmire does not guarantee loan approval; every transaction is subject to underwriting by the funding lender. Mortgage pricing and loan program guidelines are subject to change at any time without notice and vary by borrower characteristics, property type, and state regulations. Lendmire complies with Equal Housing Opportunity. Licensure verification: NMLS Consumer Access.