The Quick Read: Usually two months of statements for each qualifying account, if you qualify on the asset qualifier path. The asset depletion path asks for older statements instead: ones at least 120 days old at application, plus a recent one dated within 45 days. Both are subject to underwriting. Neither asks you to document income with a long deposit history.
- Asset qualifier path: two months of statements per account, plus 60 days of seasoning.
- Asset depletion path: statements at least 120 days old, plus the latest within 45 days.
- Not 12 or 24 months. That longer window belongs to bank statement income loans, a different product.
- Alabama changes nothing. The program figures are the same in every state where Lendmire is licensed for consumer lending.
- Assets are fully documented. “No income documentation” never means “no documentation.”
Which Path Are You On?
Start here, because the path decides the statement count. Across the select lenders in Lendmire’s wholesale network, an asset-based mortgage comes in two shapes. A borrower is qualified on one path at a time.
On the asset qualifier path, your eligible assets must equal or exceed the entire loan amount. No employment or income is documented. The assets are the qualification.
On the asset depletion path, the lender converts your usable assets into monthly income. It divides them by 60 months. That income then has to carry the housing payment and your other debts through a debt-to-income test.
This program is for a cash-heavy, income-light borrower. Think of a retiree, someone who sold a business, an heir, a settlement recipient, an early-retired professional, or a household living off a portfolio. Large balances, small documented paychecks.
| Factor | Asset qualifier | Asset depletion |
|---|---|---|
| Assets must cover | The whole loan | Income via 60-month divisor |
| Statements | 2 months per account | 120+ days old, plus one within 45 days |
| Seasoning | 60 days | Covered by the 120-day rule |
| Leverage (purchase) | Up to 80% | Up to 80% primary or second home; 65% investment |
| Property types | Primary, second home | Primary, second home, investment |
All figures here are ceilings or floors through select programs, subject to underwriting. They are not offers.
The Two-Month Rule on the Asset Qualifier Path
Two months of statements for each qualifying account is the standard on this path. The lender wants to see every page, your name on the account, and a balance that supports the loan.
The statements also have to show that the money has been yours for a while. That is the 60-day seasoning requirement. Seasoning is the stretch of time funds must sit in your account before they count. Two statements covering that stretch usually make the case.
A general consumer-mortgage explainer from Gulf News describes seasoned funds the same way: money typically held about 60 days. It is a general explainer, not a statement of this program’s rules. The idea matches what a broker sees on files every week.
Credit still matters. The qualifier path publishes a 600 minimum score. Housing history is expected to be clean, with one 30-day late in the last twelve months considered case by case. Reserves are not required at or below 75% loan-to-value. Above that, the lender sets them.
What Counts, and How Much of It
Each account type counts for a different share of its balance. This is where many borrowers get surprised, because a large balance is not the same as a large usable balance.
On the asset qualifier path, the credit percentages are:
- Brokerage accounts, certificates of deposit, money market and savings: 100%.
- 401(k) and IRA balances: 90% if you are under 59½, 100% at 59½ or older.
- Accounts combine, so you can mix them.
On the asset depletion path, the haircuts are steeper:
- Cash accounts and certificates of deposit: 100%.
- Securities: 80%.
- Private stock: 75%.
- Retirement accounts: 70% at any age.
- Real-estate equity: 60%.
A haircut is the share of a balance the lender subtracts before counting it. Several things do not count 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.
Cryptocurrency, precious metals, collectibles 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. The lender reviews the source.
How the Statements Turn Into a Coverage Figure
Here is how the math runs on each path. These examples are illustrative, and the lender’s own calculation governs.
Qualifier path. Say the loan is $800,000. You hold $330,000 in brokerage accounts (counted at 100%, so $330,000), $300,000 in a 401(k) while under 59½ (counted at 90%, so $270,000) and $200,000 in savings (counted at 100%, so $200,000). Usable assets total $800,000. That equals the loan, so you qualify on assets alone. Two months of statements for each of those three accounts would be the document set.
Depletion path. Say you hold $1,500,000 in securities, counted at 80%, so $1,200,000. You also hold $300,000 in cash, counted at 100%. Usable assets total $1,500,000. Divide by 60 months and you get $25,000 of monthly qualifying income. That income then has to carry the housing payment and other debts through the debt-to-income test.
The depletion path also has minimums. Qualified assets must be at least the lesser of $1,000,000 or 1.25 times the loan balance. They must never fall below $250,000 liquid when asset depletion is your only income source. If asset income only supplements documented income, it can do so up to a 45% debt-to-income ratio, and the minimum-assets rule is waived.
The File Clock: Recency and Age
Statements expire. On the depletion path, the lender wants statements at least 120 days old at application, plus the most recent one dated within 45 days. The old statement shows the assets have been in place. The new one shows they are still there.
Sale-of-business, inheritance and legal-settlement funds are excused from that seasoning. That helps the exact borrowers this program is built for. A business seller whose cash landed last month is not penalized for the timing.
If a file runs long, expect a request for a fresh statement. Keep downloading them. Every page, every time.
What Underwriters Flag
Three things draw questions.
1. Large deposits. A fresh deposit with no obvious origin needs a plain explanation. The Gulf News explainer makes the same point about sourced funds: the lender wants to see where money came from.
2. Transfers between accounts. Moving money around during the file creates sourcing questions that were not there before. Leave funds where they are.
3. Missing pages or names. An account holder name that does not match, or a page that is skipped, stalls a file.
The practical rule: funds that sit in place across the statement period usually need no explanation. A gift, a loan or a late transfer usually does.
Alabama Borrower Scenarios
Program figures do not change by state. Alabama is one of the 16 states where Lendmire is licensed for consumer mortgage lending, and the same ranges apply. State facts such as taxes, insurance and local prices are context, never program parameters. Here is how a few common profiles map to a path.
A retiree with a large brokerage account and a pension that does not cover a mortgage. If the brokerage account plus savings covers the whole loan, the qualifier path fits, and two months of statements per account is the document set. If it does not, the depletion path turns the portfolio into income.
An Alabama business owner who just sold a company. Cash from the sale is excused from depletion-path seasoning. The sale proceeds sitting in a regulated account, with the sale documents behind them, is the cleanest file.
An heir with an inheritance and little income. Same logic. Inheritance funds are excused from seasoning on the depletion path. On the qualifier path, expect the 60-day seasoning unless the lender says otherwise.
An early-retired professional buying a rental. The qualifier path is for a primary residence or second home only. Investment property runs on the depletion path, at up to 65% on a purchase or rate-and-term refinance and 60% on a cash-out. A first-time investor on that path needs a 700 score.
Run both paths on paper before you apply. Many borrowers qualify on one and not the other.
Edge Cases
- Short account history. A recently opened account may not meet the 60-day seasoning on the qualifier path. The lender may want the funds’ source documented. Do not move money in at the last minute.
- Business accounts. Funds beyond your ownership share are not published as eligible. If you own part of an account, expect only your share to count.
- Retirement accounts. The credit percentages above apply, and the lender may ask about access to the funds.
- Joint accounts. Expect questions about whose money it is. A co-owner may need to be on the file.
- Cash-out proceeds. On the depletion path they never count as qualifying assets. Qualifier-path cash-out terms are set by the lender and not published.
- Credit events. On the depletion path a housing event needs four years of seasoning, and multiple bankruptcies are not eligible.
How This Differs From DSCR and Bank Statement Loans
Borrowers often mix these up, so here is the short version.
An asset-based mortgage is a consumer loan on a home you live in or use personally, with one path also open to investment property. A bank statement program is for borrowers who document income through deposits, and it looks back 12 or 24 months. That long window is why the “12 months of statements” answer you find online is usually wrong for this question.
DSCR loans are for business-purpose rental purchases. They qualify primarily on property-level rental income covering the payment, subject to lender guidelines. They typically still ask for a couple of recent statements to verify down payment and reserves. If you want the full picture, see Lendmire’s complete DSCR loans guide.
One practical point on why the count is not uniform. No statute sets it. The federal consumer-credit rule, in Regulation Z, exempts credit extended primarily for a business or commercial purpose, and the lender decides the purpose case by case. Compliance consultants note that not every investment property is automatically exempt, because the loan’s purpose governs. Their piece is older, so treat it as background. The statement window comes from each program’s guidelines, not from the law.
Statement Prep Checklist
- Download every page of every statement, including blank pages.
- Confirm your name and the account number appear on each.
- Gather two consecutive months for each qualifying account on the qualifier path.
- On the depletion path, pull an older statement at least 120 days back plus the newest one.
- Write a short note for any large deposit, with the paper behind it.
- Pause transfers between accounts once you apply.
- Convert unlisted assets, such as crypto, into a seasoned cash balance before you start.
Lendmire’s guide on reserve requirements for an asset qualifier mortgage covers the other half of the asset picture. Final terms depend on the lender’s guidelines, the property type, and the borrower’s complete credit picture.
Frequently Asked Questions
Do I need 12 months of statements for an asset-based mortgage?
No. Twelve or 24 months belongs to bank statement income loans, where deposits become your income. On the asset qualifier path the typical set is two months per qualifying account. The depletion path wants older statements plus a recent one.
Do statements prove my income?
No. On this program they prove assets. The qualifier path documents no employment or income at all. On the depletion path the lender calculates income from your usable assets, divided by 60 months.
What happens if I have a large deposit?
Expect a request to explain it. A deposit with a clear paper trail, like a sale, an inheritance or a settlement, is usually straightforward. On the depletion path those three funding types are excused from the 120-day seasoning.
Can retirement accounts count?
Yes, at a percentage. On the qualifier path a 401(k) or IRA counts at 90% if you are under 59½ and 100% at 59½ or older. On the depletion path retirement accounts count at 70% at any age. All of it is subject to underwriting.
Is the Alabama requirement different from other states?
No. The program figures are the same in every state. Alabama is one of 16 states where Lendmire is licensed for consumer mortgage lending. Only state context, such as taxes and insurance, differs.
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. Lendmire is a broker that arranges financing through select lenders, so any approval is subject to underwriting and lender guidelines. This is not a commitment to lend.
Lendmire’s asset-based mortgage in Alabama page presents the program for Alabama borrowers.
About Lendmire
Lendmire (NMLS# 2371349) is a mortgage broker licensed for consumer lending in 16 states. Scotsman Guide named Lendmire a Top Mortgage Workplace in both 2025 and 2026.
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References
1. Gulf News, sourced and seasoned funds explainer
3. Compliance Alliance, Regulation Z and investment properties
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 Much Do You Need in Assets for an Asset Depletion Loan? · What Counts as an Asset Statement for a Mortgage? · Asset Qualifier Mortgage vs Bank Statement Mortgage
Guides: Asset-Based Mortgage in Alabama
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.