The Quick Read: It depends on how low the score is, because large balances do not erase a weak credit file. On the asset qualifier path, the published score floor is 600, subject to underwriting. On the asset depletion path, the lender’s own score matrix sets the floor.
- Assets replace income, not credit. Both paths still review your credit report and housing payment history.
- Two paths, one at a time. Either your assets cover the whole loan, or they convert into a monthly qualifying income.
- Leverage is a ceiling. The qualifier path goes up to 80% on a purchase, and the depletion path varies by occupancy.
- The assets are documented. Skipping income documentation is not the same as skipping documentation.
- New Mexico changes nothing. The program figures are the same in every state, and the buyer’s state only affects local context.
What Is an Asset-Based Mortgage (and What Isn’t It)?
An asset-based mortgage lets a borrower qualify with savings and investments rather than pay stubs or traditional personal-income documentation. You may also see it called an asset depletion or asset utilization loan. Your assets are not pledged as collateral. The home secures the loan, and your balances are a way to show you can repay it.
The name causes confusion. Commercial asset-based lending is a different product, where a business borrows against inventory or receivables. Hard money is another, where a lender looks mainly at the collateral for a short-term loan. This article covers neither one.
This is a consumer mortgage for a principal residence or second home. It is built for people with large balances and light documented income, such as:
- retirees
- people who have sold a business
- recipients of an inheritance or settlement
- early-retired professionals
- households living off a portfolio
If your goal is a pure rental purchase, that is a different product, and a later section covers it.
Which Path Fits You: Assets Cover the Loan, or Assets Become Income?
Lenders in the wholesale network Lendmire places files with use two paths. A borrower is qualified on one path at a time, and the rules never blend.
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. Loans run up to $4,000,000, with leverage up to 80% on a purchase and 75% on a refinance of a principal residence or second home. Reserves are not required at or below 75% loan-to-value. Above that, the lender sets them. Final terms depend on the lender’s guidelines, the property type, and the borrower’s complete credit picture.
Asset depletion path. Your assets are reduced by haircuts (discounts by account type) and 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. Loans run from $125,000 to $3,500,000.
Leverage on the depletion path depends on occupancy:
| Occupancy | Purchase or rate-and-term | Cash-out |
|---|---|---|
| Principal residence or second home | Up to 80% | Up to 60% |
| Investment property | Up to 65% | Up to 60% |
Cash-out proceeds never count as qualifying assets. All of these figures are ceilings through select programs and are subject to underwriting. They are not offers.
Where Does Your Credit Score Fit In?
Credit is reviewed on both paths. Assets can solve the income question, but they cannot rewrite your credit history. This is the point most borrowers miss.
On the qualifier path, the published minimum score is 600. On the depletion path, the lender’s score and loan-amount matrix applies, so a score that works at one loan size may not work at a larger one. A first-time investor on the depletion path needs a 700 score.
Score is not the only credit test. Housing history is reviewed too, and the program standard is 0x30x12. That means no 30-day late payments on a housing obligation in the last twelve months. One 30-day late in that window is considered case by case. Multiple bankruptcies are not eligible. On the depletion path, a housing event such as a foreclosure needs 4 years of seasoning.
| What assets can solve | What assets cannot solve |
|---|---|
| Missing pay stubs or traditional personal-income documentation | A score below the program floor |
| Irregular or retired income | Recent late housing payments |
| Self-employment income gaps | Multiple bankruptcies |
| Down payment and loan size | A housing event inside the seasoning window |
Nobody can promise approval on a low score. A score just above the floor usually means a thinner margin everywhere else. Expect closer review of the whole file, and expect lower leverage than the ceilings above.
Which Assets Count?
Credit for each asset type differs by path. Never read one table as if it applied to the other path.
Asset qualifier path (share of balance that counts):
| Asset | Share counted |
|---|---|
| Brokerage accounts | 100% |
| Certificates of deposit | 100% |
| Money market | 100% |
| Savings | 100% |
| 401(k) and IRA, under age 59½ | 90% |
| 401(k) and IRA, 59½ or older | 100% |
Accounts combine, so a balance spread across several accounts still adds up.
Asset depletion path (share of balance that counts):
| Asset | Share counted |
|---|---|
| Cash accounts | 100% |
| Certificates of deposit | 100% |
| Securities | 80% |
| Private stock | 75% |
| Retirement accounts, any age | 70% |
| Real-estate equity | 60% |
Several things do not count on the depletion path:
- custodial accounts
- deferred compensation
- escrow accounts
- foreign funds
- cash on hand
- stock options
- non-vested restricted stock units
- 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 to convert them to a seasoned cash balance in a regulated account. The lender then reviews the source of those funds.
Using retirement money for a down payment can carry tax consequences. Tax treatment varies by situation, so consult a qualified professional before relying on any assumption.
How Do the Numbers Work? Two Illustrations
These examples are illustrative. The lender’s own calculation governs.
Qualifier path. Say you want an $800,000 loan. You hold $330,000 in brokerage accounts (100% counts, so $330,000), $300,000 in a 401(k) while under 59½ (90% counts, so $270,000), and $200,000 in savings (100% counts, so $200,000). That totals $800,000 of usable assets, which matches the loan. The file is reviewed on assets alone.
Depletion path. Picture a borrower with $1,500,000 in securities and $300,000 in cash. The securities count at 80%, which is $1,200,000. The cash counts at 100%, which is $300,000. Usable assets are $1,500,000. 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.
Depletion-path files also have minimum assets. Qualified assets must be at least the lesser of $1,000,000 or 1.25 times the loan balance. When asset depletion is your only income source, you need at least $250,000 in liquid assets. If the asset-derived income only supplements documented income, it can be used up to a 45% debt-to-income ratio, and the minimum-assets rule is waived.
One practical point many buyers miss: the purchase itself consumes assets. Money used for the down payment and closing costs leaves your accounts before the lender totals your pool. How a given file treats those funds depends on the lender’s guidelines, so ask before you assume the pool is intact.
Documents and Seasoning: Assets Are Still Documented
“No income documentation” never means “no documentation.” The lender reviews your statements closely.
- Qualifier path: assets need 60 days of seasoning, with two months of statements for each qualifying account.
- Depletion path: statements must be at least 120 days old at application. The most recent statement must be within 45 days. Funds from the sale of a business, an inheritance, or a legal settlement are excused from that seasoning.
A large deposit that appears in the last few weeks will draw questions. Move money before you apply, not during.
If Your Score Is Too Low: What Are Your Options?
Start with the score itself. Improving it a few tiers before you apply can change your leverage more than any other single step. Common moves include paying down revolving balances, correcting errors on your report, and letting recent late payments age. Pull your own report first so you know which number the lender will see.
Next, look at the alternatives and what each one trades away.
| Route | Who it suits | Trade-off |
|---|---|---|
| Wait and rebuild, then apply | Score close to the floor | Delay, but better terms |
| Another loan type with its own score rules | Borrowers with steady documented income | Income and debt-ratio tests return |
| State or local housing programs | Buyers who meet that program’s terms | Income limits and rules may exclude asset-rich buyers |
| Bank statement loan | Self-employed buyers with deposit history | Income is reviewed on deposits, not assets |
| Co-borrower with stronger credit | Households with a second earner | Both credit files are reviewed |
FHA and VA loans follow their own rules, set by those programs. They do not use asset-based qualifying. Bank statement loans are for borrowers who document income through deposits. Neither one is a substitute for the asset path when your income is light and your balances are heavy.
Be wary of anyone who says assets alone fix a poor score. They do not.
What Does This Look Like for a New Mexico Buyer?
Lendmire’s consumer mortgage lending is licensed in 16 states, and New Mexico is one of them. The program figures here do not change by state. What changes is local context, such as the price of the home you are buying and the condition of the property.
Property eligibility is a lender decision. A rural or unusual property can draw extra review, and what is acceptable depends on the lender and the file. Ask early rather than after you have a contract.
Local first-time-buyer and housing-agency programs often carry their own income and purchase-price limits. Those limits can rule out a borrower with large balances. Check each program’s own terms rather than assuming either way.
Buying a Rental? That Is a Different Loan
The asset-based mortgage above is a consumer loan for a home you will live in or use as a second home. Rentals follow a different track. 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 CFPB’s rule text treats credit to acquire a non-owner-occupied rental as business purpose. A legal practitioner guide notes that planning to occupy a small rental can turn the loan into a consumer loan.
A DSCR loan is reviewed primarily on property-level rental income covering the payment, subject to lender guidelines. Credit still matters. Lendmire’s complete DSCR loans guide explains the mechanics.
The asset depletion path can also finance an investment property, at the lower leverage shown earlier, and a first-time investor needs a 700 score. Programs below 1.00 rent coverage exist through select lenders in the network, but leverage and terms adjust.
Who Should Skip This Loan?
Skip it if your documented income is strong and your balances are modest. A standard loan may fit better. Skip it if your score sits below the floor and you have no near-term plan to raise it. Skip it if most of your wealth is in assets that do not count, such as crypto or collectibles, and you do not want to convert them. And skip it if you cannot leave the money in place. Seasoning rules mean the assets must sit in the account.
If you hold more in a securities portfolio than you want to sell, the pledged-asset route is a separate option.
What Should You Ask a Lender?
Across lenders, the details differ more than the headlines suggest. Before you commit, ask:
1. Which path will you use for my file, qualifier or depletion?
2. What credit percentage or haircut applies to each of my account types?
3. What score does your matrix require at my loan amount?
4. How are my down payment and closing funds treated in the pool?
5. What seasoning and statement rules apply to my accounts?
6. What leverage applies to my occupancy and transaction type?
Key Terms Defined
Asset qualifier path: A route where eligible assets must cover the whole loan amount and no income is documented.
Asset depletion path: A route that turns usable assets into monthly income by dividing them by 60 months.
Haircut: The discount a lender applies to an account, so only a share of the balance counts.
Seasoning: The time money must sit in your account, shown by statements, before the lender counts it.
Loan-to-value (LTV): The loan amount divided by the property value, shown as a percentage.
Debt-to-income ratio: Your monthly debts divided by your monthly income, including the new housing payment.
DSCR: Monthly rent divided by the property’s monthly debt payment, used on rental loans.
Frequently Asked Questions
Can I get an asset-based mortgage with a score under 600?
On the asset qualifier path, 600 is the published floor, so a lower score does not fit. On the depletion path, the lender’s matrix decides, and it varies by loan amount. Approval is never promised, and every file is underwritten individually. The better move is usually to raise the score before applying.
Do I have to sell my investments?
No. Your assets stay invested, and they are not collateral. The lender counts a share of the balance based on the account type. You do need to keep the money in place long enough to meet seasoning rules.
Can I use retirement accounts?
Yes, with limits. On the qualifier path, a 401(k) or IRA counts at 90% under age 59½ and 100% at 59½ or older. On the depletion path, retirement accounts count at 70% at any age. Each is subject to underwriting.
Can I buy a second home or a rental this way?
Principal residences and second homes work on both paths. Investment property works only on the depletion path, with lower leverage and a higher credit bar for first-time investors. A pure rental purchase often fits a DSCR loan better.
Does a bank statement loan do the same thing?
No. A bank statement loan is for borrowers who document income through deposits. An asset-based mortgage is reviewed on balances, not deposits. Which one fits depends on whether your wealth is in your accounts or in your cash flow.
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’s asset-based mortgage in New Mexico page presents the program for New Mexico borrowers.
About Lendmire
Lendmire, NMLS# 2371349, is a mortgage brokerage with consumer lending licenses in 16 states. Bank statement, P&L-only, 1099-only and asset-based mortgages are arranged through wholesale lending partners for borrowers whose tax returns understate their income, and each application is reviewed individually by the lender. Scotsman Guide named Lendmire a Top Mortgage Workplace in both 2025 and 2026.
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References
1. CFPB Regulation Z, §1026.3 Exempt transactions
2. Doss Law: Business Purpose Exemption Simplified
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 Mortgage vs Bank Statement Mortgage · Is an Asset Qualifier Mortgage Harder to Get Than an Asset Depletion Loan? · How Long Should Money Sit in an Account Before an Asset-Based Mortgage Application?
Guides: Asset-Based Mortgage in New Mexico
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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Disclosures. The information presented in this article is general market commentary, not financial, legal, or tax advice. Lendmire is a mortgage brokerage (NMLS# 2371349) — not a direct lender or depository institution — and loan placement is subject to lender underwriting. Nothing in this content represents a commitment to lend. Loan terms, pricing, and program availability vary based on borrower qualifications, property characteristics, and state of subject property, and are subject to change at any time. Lendmire complies with Equal Housing Opportunity requirements. Consumer access: nmlsconsumeraccess.org.