The Quick Read: It depends on where the score lands: on the asset qualifier path, a score of 600 or higher can work when your eligible assets cover the entire loan, but a score below that floor generally ends the file however large your balances are, subject to underwriting. Large savings do not erase a weak credit file. They change which loan you qualify for, and they can offset thin or undocumented income.
- On the asset qualifier path, the published credit floor is 600, and your eligible assets must equal or exceed the whole loan.
- On the asset depletion path, the lender’s own score and loan-amount matrix sets the floor, so no single number applies.
- Leverage on a purchase runs up to 80% on the qualifier path, and a refinance runs up to 75%, subject to underwriting.
- Your housing payment history matters: the program looks for no 30-day lates in the last twelve months, and one late is considered case by case.
- Assets are fully documented. Only income documentation is removed on the qualifier path.
What Does a Low Score Still Control?
A low score still controls whether you are eligible at all, how much leverage you can use, and which path fits. Your assets can stand in for employment and income. They cannot stand in for credit.
Think of the file as two separate questions. The first is whether you have the money to buy and carry the home. Assets answer that. The second is how you have handled debt in the past. Only your credit report answers that.
Here is how the split looks in practice.
| Question | What answers it |
|---|---|
| Can you afford the loan? | Eligible, seasoned assets |
| Do you have steady employment income? | Not needed on the qualifier path |
| Are you above the credit floor? | Your middle credit score |
| How much leverage can you use? | Path, property use, and credit profile |
| Is your housing history clean? | Mortgage or rent payment record |
Across Lendmire’s wholesale network, lenders treat a score near the floor as a risk signal that assets alone do not fully answer. A borrower sitting right at the floor has less room for error than one comfortably above it, even with the same balances.
Which Path Fits a Buyer Living on Savings?
Choose the asset qualifier path if your eligible assets can cover the entire loan. Choose the asset depletion path if you want your assets turned into monthly income. You are qualified on one path at a time, never a blend of the two.
| Feature | Asset qualifier path | Asset depletion path |
|---|---|---|
| Core test | Eligible assets equal or exceed the whole loan | Usable assets divided by 60 months become income |
| Income documented | None | Derived income runs through debt-to-income |
| Credit floor | 600 | The lender’s matrix |
| Purchase leverage | Up to 80% | Up to 80% on a primary residence or second home; up to 65% on an investment property |
| Refinance leverage | Up to 75% | Up to 80% rate-and-term and 60% cash-out on a primary residence or second home; 65% and 60% on an investment property |
| Loan amounts | Up to $4,000,000 | $125,000 to $3,500,000 |
All of these are ceilings and floors, not offers. They come through select programs, and every file is underwritten individually.
The qualifier path suits a buyer with a big balance and a modest loan. The depletion path suits a buyer who wants a larger loan against the same assets and can accept a debt-to-income test. The brokerage’s asset-based mortgage programs page lists both.
How Do the Credit Percentages Work?
Not every dollar in your accounts counts at face value. Each program applies a percentage by asset type, so the usable total is often smaller than your statement total. Name the path first, then read the percentages.
Asset qualifier path: share of the balance that counts.
- Brokerage accounts, certificates of deposit, money market accounts, and savings count at 100%.
- A 401(k) or IRA counts at 90% if you are under age 59½, and at 100% at 59½ or older.
- Accounts combine, so a mix of savings and brokerage balances can add up to the loan amount.
Asset depletion path: share of the balance that counts.
- Cash accounts and certificates of deposit count at 100%.
- Securities count at 80%, and private stock at 75%.
- Retirement accounts count at 70% at any age.
- Real-estate equity counts at 60%.
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. When assets are your only income source, at least $250,000 must be liquid. If asset-derived income only supplements documented income, it can do so up to a 45% debt-to-income ratio, and the minimum-assets rule is waived.
What Do the Numbers Look Like in a Real File?
Both examples below are illustrative, and the lender’s own calculation governs.
Start with the qualifier path. Say the loan is $800,000. You hold $330,000 in brokerage accounts, which counts at 100%, or $330,000. You hold $300,000 in a 401(k) and are under 59½, which counts at 90%, or $270,000. You hold $200,000 in savings, which counts at 100%, or $200,000. That adds up to $800,000 of usable assets, so the file is reviewed on assets alone, subject to underwriting. Reserves are not required at or below 75% loan-to-value. Above that, the lender sets them.
Now the depletion path. Say you hold $1,500,000 in securities, which counts at 80%, or $1,200,000. You hold $300,000 in cash, which counts 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 your other debts through the debt-to-income test.
Notice what neither example mentions: your score. A file can clear both asset tests and still stall at the credit review. That is the point of the title question.
Which Credit Problems Sink a File, and Which Do Not?
A housing payment history with no 30-day lates in the last twelve months is the target, and one 30-day late in that window is considered case by case. Multiple bankruptcies are not eligible. On the depletion path, a housing event needs four years of seasoning.
Other credit events are less clear-cut. The program parameters do not publish a set rule for collections, charged-off accounts, or a single bankruptcy on the qualifier path. Those get reviewed by the lender and depend on the age of the event, your score, and the rest of the file. Honest answer: it depends, and a broker who promises otherwise is guessing.
A few patterns hold across the network:
- A recent late payment on a mortgage hurts more than an old collection on a credit card.
- A score close to the floor leaves no room for a new inquiry or balance spike during the loan process.
- A thin file, meaning few accounts, can hurt even if there are no late payments, because the lender has little history to review.
- A first-time investor on the depletion path needs a 700 score. This applies only if the property is an investment property.
The practical takeaway: if your score is close to 600, do not open new credit and do not run balances up before applying.
Do Cryptocurrency, Metals, and Other Assets Count?
Not as published. Cryptocurrency, precious metals, collectibles, business accounts beyond your ownership share, and pledged or borrowed funds are not listed as eligible on either path.
The documented route is to convert them to cash and park the money in a seasoned balance at a regulated institution. The lender then reviews the source of the funds. Do not expect these assets to count at a percentage.
On the depletion path, these are also not eligible: 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.
If you plan to sell investments to build a cash balance, start early. Tax treatment varies; consult a qualified tax professional before selling.
What Documents and Seasoning Does the File Need?
Both paths document your assets. Removing income documentation never means removing all documentation. The statements are the file. Put simply, the qualifier path involves no traditional personal-income documentation, pay stubs, or employment verification, but it does involve plenty of bank and brokerage statements.
On the qualifier path, the lender wants 60 days of seasoning and two months of statements for each qualifying account. On the depletion path, statements must be at least 120 days old at application, plus a recent statement dated within 45 days. Funds from the sale of a business, an inheritance, or a legal settlement are excused from that seasoning, though the source is still reviewed.
A short checklist:
1. Two months of statements for every account you plan to count.
2. A paper trail for any large deposit, such as a sale closing statement or an estate distribution letter.
3. Your credit report reviewed before you apply, with errors disputed early.
4. Proof of your housing payment history, such as mortgage statements or a lease and payment record.
5. A clear plan for which path fits your assets.
Moving money between your own accounts can reset seasoning. Keep funds where they are until your loan officer says otherwise.
What If the Property Is a Rental?
If you are buying a pure rental and will not live in the home, the consumer asset path is usually the wrong tool. A DSCR loan, which qualifies the property on its rent, is the usual answer for a rental purchase.
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. Federal rules generally exempt credit extended primarily for a business purpose from the consumer rules, as 12 CFR §1026.3 explains.
That changes what the lender checks. A DSCR file qualifies primarily on property-level rental income covering the payment, subject to lender guidelines. Credit still matters, and a score below a program’s floor still ends the file. Select lenders in the network also offer programs that work below 1.00 coverage, but leverage and terms adjust when coverage is thin.
For a low-score buyer, the choice is simple. If the home is for you, stay on the consumer asset path. If it is a rental, compare it with DSCR financing.
Why Does the Lender Care About Credit if Assets Are Large?
Because the loan is still a consumer mortgage when you plan to live in the home. Federal law generally bars a creditor from making a mortgage unless it determines you can repay, as the Federal Register final rule on ability-to-repay lays out. On the qualifier path, that review rests on your assets rather than your paycheck.
Credit is the lender’s record of whether you repay. Assets show whether you can. A lender wants both, and a thin answer on one rarely survives a strong answer on the other.
What Should a North Carolina Buyer Know?
The program figures do not change by state. A North Carolina buyer sees the same leverage, credit, and asset percentages as a borrower anywhere else, and Lendmire’s consumer mortgage lending is licensed in North Carolina among its 16 states. State facts such as taxes, insurance, and local prices are context for your budget, never program parameters.
The buyers who tend to use this program are retirees living on a portfolio, people who recently sold a business, and households that received an inheritance or a settlement. Relocators with large balances and no local job history fit too.
Be careful with anything promising a mortgage that skips credit review entirely. That does not describe this program, and it does not describe any legitimate home purchase loan. Also be careful with offers that lend against your property or collateral and skip credit review. That is a different product from a home purchase mortgage.
What If You Fall Below the Floor or Get Declined?
You have four practical moves.
First, rebuild the score. Pay down revolving balances, dispute errors, and keep accounts current. Re-check after a statement cycle or two.
Second, shift paths. A score that is too low for one path may fit the lender matrix on the other. Lower leverage can also help a borderline file, subject to underwriting.
Third, consider a different structure. A pledged-asset mortgage, which borrows against holdings rather than selling them, may suit a buyer who would rather keep those holdings in place.
Fourth, wait. A housing event that needs four years of seasoning on the depletion path improves with time. Sometimes the best financing decision is a later start date.
Key Terms Defined
Asset qualifier path: A program path where your eligible assets must equal or exceed the whole loan, and no employment or income is documented.
Asset depletion path: A program path that divides usable assets by 60 months to create a monthly qualifying income.
Haircut: The share of an asset’s balance the lender does not count, such as 20% off securities.
Seasoning: The length of time funds must sit in your account, or the age of your statements, before a lender counts them.
Debt-to-income ratio: Your monthly debts, including the new housing payment, divided by your monthly income.
Housing history: Your record of paying a mortgage or rent on time.
Frequently Asked Questions
Can I get an asset-based mortgage with a 600 score?
Possibly, on the asset qualifier path, where 600 is the published floor. Your eligible assets must cover the entire loan, your housing history must be clean, and the file is subject to underwriting. A score at the floor leaves little cushion, so keep other parts of the file strong.
Is there a separate credit minimum on the depletion path?
The depletion path follows the lender’s own score and loan-amount matrix, so there is no one number to quote. A first-time investor on that path needs a 700. Ask for the matrix that applies to your loan amount before you commit to the path.
Does a large balance override a late mortgage payment?
No. The program looks for no 30-day lates in the last twelve months. One 30-day late in that window is considered case by case, and larger balances do not change that review.
Can I count my 401(k)?
Yes, with a haircut. 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. All of it is subject to underwriting.
Is my credit still reviewed if my assets are large?
Yes. Your credit is pulled and reviewed on every file. What the qualifier path leaves out is income and employment documentation. Your assets are documented in full.
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. Reach the team at 828-256-2183 or request a quote.
Lendmire’s asset-based mortgage in North Carolina page presents the program for North Carolina 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 traditional personal-income documentation, 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. CFPB – 12 CFR §1026.3, Exempt transactions
2. Federal Register – Ability-to-Repay and Qualified Mortgage Standards final rule
This article is part of Lendmire’s asset-based mortgage program — full qualification details, guidelines, and scenarios live on the program page.
Related reading: Can Two North Carolina Retirees Buy a Home Together on an Asset Qualifier Mortgage? · Can an Asset-Based Mortgage Fund a Jumbo Purchase? · Does a North Carolina Asset-Based Mortgage Require Tax Returns?
Guides: Asset-Based Mortgage in North Carolina
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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- North Carolina Insurance Producer · License# 19053198 · Property, Casualty, Life, Health · Verify on NAIC SBS
- Lendmire LLC · Firm NMLS# 2371349 · Verify firm licensure
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.