The Quick Read: No, an asset-based mortgage is reviewed against balances rather than on traditional personal-income documentation, W-2s or pay stubs, but the lender still documents your assets and credit in full and can ask for more when your file mixes in other income. Ohio does not change the program figures. Which path fits depends on whether your assets cover the loan outright or have to be turned into monthly income.
- On the asset qualifier path, eligible assets must equal or exceed the entire loan, and no employment or income is documented.
- On the asset depletion path, usable assets divided by 60 months become qualifying monthly income that runs through the debt-to-income test.
- Statements, credit, ID and the property are all documented. Traditional personal-income documentation is the one document that drops out.
- A borrower is reviewed on one path at a time, and the two paths never blend.
- Every figure below is a typical ceiling or floor through select programs, subject to underwriting. None of it is an offer.
Why the Ohio Label Doesn’t Change the Answer
The program figures are the same for an Ohio borrower as for anyone else. Leverage limits, asset percentages and seasoning rules come from the lender programs, not from the state. Ohio is one of 16 states where Lendmire’s consumer mortgage lending is licensed, and Lendmire works as the broker that places the file with select lenders in its network.
Ohio facts like local prices, property taxes and insurance matter to your budget. They never change what the program asks for. Be wary of any page that claims a special Ohio rule on traditional personal-income documentation without showing you where it comes from.
This product suits a particular kind of Ohio household. Think of a retiree living on a portfolio, someone who just sold a business, or an early-retired professional. Others are people who received an inheritance or a settlement. Their balances are large and their taxable income is small, so a tax return tells the wrong story about them.
The Two Paths, Side by Side
The asset qualifier path asks whether your eligible assets cover the whole loan. The asset depletion path asks whether your assets, converted into monthly income, can carry the housing payment and your other debts. Most borrowers fit one path much better than the other.
| Factor | Asset Qualifier | Asset Depletion |
|---|---|---|
| Core test | Assets cover the entire loan | Assets become monthly income |
| Income documented | None | Derived from assets |
| Debt-to-income test | Not run on income | Yes |
| Loan amounts | Up to $4,000,000 | $125,000 to $3,500,000 |
| Occupancy | Primary or second home | Also investment property |
Across the lender programs we place files with, these two paths do not mix. If your assets cover the loan on the qualifier path, you never need the income math. If they don’t, the depletion path is the next stop.
Leverage on each path
On the asset qualifier path, leverage reaches up to 80% loan-to-value (LTV) on a purchase and 75% on a refinance of a principal residence or second home. LTV is the loan amount divided by the property value. Whether cash-out proceeds are allowed on this path, and at what leverage, is set by the lender and is not published.
On the asset depletion path, a principal residence or second home can reach 80% on a purchase or rate-and-term refinance. A cash-out refinance on those properties tops out at 60%. An investment property reaches 65% on a purchase or rate-and-term refinance and 60% on a cash-out. Cash-out proceeds never count as qualifying assets.
What Is Still Verified Without Tax Returns
An asset-based file drops the income paperwork, not the paperwork. “No tax returns” and “no documentation” are different statements, and the second one is false here. The file shifts its weight onto the things that actually carry the loan.
| Document | What it proves |
|---|---|
| Two months of statements per account | Your balances are real and seasoned |
| Government ID | Who you are |
| Credit report | Housing history and overall credit |
| Purchase contract or current mortgage | What the loan is for |
| Appraisal and title | The property’s value and ownership |
| Source documents for large deposits | The funds are yours and not borrowed |
Credit still matters. The qualifier path has a published 600 minimum score. The depletion path follows the lender’s score and loan-amount matrix. A first-time investor on the depletion path needs 700.
Housing history is reviewed at 0x30x12, meaning no late payments in the last twelve months. One 30-day late in that window is considered case by case. Multiple bankruptcies are not eligible. A housing event needs 4 years of seasoning on the depletion path.
Seasoning rules
Seasoning means your money has sat in an account long enough to be treated as yours. On the qualifier path, funds need 60 days of seasoning, shown by two months of statements for each qualifying account. 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 depletion-path seasoning. Those deposits still get a paper trail showing where they came from.
How Your Assets Count Toward the Loan
Different assets count at different percentages, and the percentages differ by path. This is where most borrowers get surprised, because a balance and a usable balance are not the same number.
On the asset qualifier path, the share of each balance that counts looks like this:
- Brokerage accounts count at 100%.
- Certificates of deposit, money market and savings accounts count at 100%.
- A 401(k) or IRA counts at 90% if you are under age 59½ and 100% at 59½ or older.
- Accounts combine, so you can stack them toward the loan amount.
On the asset depletion path, the haircuts are steeper:
- Cash accounts and certificates of deposit count at 100%.
- Securities count at 80%.
- Private stock counts at 75%.
- Retirement accounts count at 70% at any age.
- Real-estate equity counts at 60%.
Several things are not eligible on the depletion path. These are 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 then reviews the source of that cash.
A qualifier-path example
This is illustrative arithmetic, 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 also hold $200,000 in savings, which counts at 100% for $200,000.
Those three add up to $800,000 of usable assets. That equals the loan, so the file is reviewed on assets alone, with no income documented, subject to underwriting.
A depletion-path example
Now 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% for $300,000. Usable assets come to $1,500,000. Dividing by 60 months gives $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. Nothing in the example comes from a tax return. Strong assets can still fail this test if the housing payment is large relative to the derived income.
The depletion path also has minimums. You need qualified assets of at least the lesser of $1,000,000 or 1.25 times the loan balance. When asset depletion is your only income source, you also need no less than $250,000 in liquid assets.
When Tax Returns Can Still Come Up
Traditional income documentation is usually not requested on either path. Tax returns can surface when your file includes income beyond your assets. Asset-derived income may supplement documented income on the depletion path, up to a 45% debt-to-income ratio. When it does, the minimum-assets rule is waived.
Documented income means the lender needs to see it. That can include conventional personal-income paperwork or other income documents, depending on the income type and the lender. If you only want your assets to carry the loan, you stay out of that territory.
Other situations can also lead a lender to ask for more. Large deposits with no clear source are one. A balance in a business account beyond your ownership share is another. Funds that sit in an ineligible account type will draw questions too.
Across the lenders we work with, the stricter overlays are about assets, not income. Underwriters want the money’s origin explained and the account type to fit. A clean, boring paper trail is the fastest way to a smooth review (and the most common difference between easy files and painful ones).
The program also runs on lender guidelines, and guidelines vary. The strongest answer is “generally no, and the specific lender’s guideline controls.” Anyone promising “never” is guessing.
How This Differs From a Rental Loan
An asset-based mortgage is a consumer loan, which means consumer-lending disclosure rules apply to it, including the standard mortgage disclosures. A DSCR loan for a rental property sits in a different category. 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.
That difference is why a rental loan asks about the property’s rent instead of your pay. The Federal Register’s published explanation of the ability-to-repay rule states that business-purpose loans fall outside that rule and that investment-purpose loans are treated as business-purpose loans. The CFPB’s Truth in Lending compilation lists business-purpose credit among its exempt transactions.
The practical lesson for you is about purpose, not paperwork. If you are buying a rental purely as an investment, the product built for that is a DSCR loan, which qualifies primarily on property-level rental income covering the payment, subject to lender guidelines. Lendmire’s complete DSCR loans guide walks through how that works.
If you are buying a home you will live in, the asset-based mortgage is the product to consider. If you are mixing purposes, such as pulling cash from a rental to pay personal bills, the loan is probably consumer-purpose. In that case a DSCR product isn’t the right fit.
Which No-Tax-Return Option Fits You?
Several programs let you skip the tax return, and each verifies something different. Picking the wrong one wastes time and sometimes fails on a technicality.
| Program | What it verifies | Best fit |
|---|---|---|
| Asset qualifier | Eligible assets cover the loan | Large balances, any income |
| Asset depletion | Assets converted to income | Portfolio-funded households |
| Bank statement | Deposits as income | Self-employed with strong cash flow |
| DSCR | Rent covers the payment | Rental property investors |
Self-employed borrowers often land on the bank statement program, which is for people who document income with deposits. Lendmire’s piece How Many Years of Tax Returns Does a Self-Employed Mortgage Need? covers that side of the fence.
The choice between these programs is a genuine toss-up for some borrowers. A business owner with big balances and messy deductions might fit the asset path, the bank statement path, or both. The stronger play usually depends on which gives better leverage for the property and whether you would rather draw down or preserve your portfolio. Comparing both side by side before choosing makes sense.
Who This Fits and Who It Doesn’t
The asset-based mortgage fits a cash-heavy, income-light reader best. That includes retirees, people who sold a business, inheritance or settlement recipients, early-retired professionals, and households living on a portfolio. All of them have balances that outrun their documented income.
It is probably not a fit if your balances are modest, because the depletion minimums are real. It is also a poor fit if most of your wealth sits in an ineligible form, such as stock options or foreign funds. Borrowers who can’t season their funds should pause before applying.
One more note for parents and families moving money around. Gifts and shared accounts raise source questions.
How to Apply Without Tax Returns
1. Pull the last two months of statements for every account you plan to use.
2. Check each account’s age against the seasoning rules for your path.
3. Move any crypto or similar holdings into a seasoned cash balance in a regulated account if you want them considered.
4. Gather ID, your housing history and the purchase contract or current mortgage.
5. Ask a broker to run both paths against your balances, so you see which fits before you commit.
Tax treatment varies, so consult a qualified tax professional before relying on any tax outcome from a financing choice.
Key Terms Defined
Asset qualifier path: the route where eligible assets, after the credit percentages, must equal or exceed the whole loan, with no income documented.
Asset depletion path: the route where eligible assets, after the haircuts, are divided by 60 months into qualifying income for the debt-to-income test.
Seasoning: the length of time funds have been in your account, shown by statements.
Debt-to-income ratio: your monthly debts, including the new housing payment, divided by your monthly qualifying income.
Loan-to-value (LTV): the loan amount divided by the property’s value.
Haircut: the percentage of an asset’s balance that does not count toward qualifying.
Frequently Asked Questions
Are W-2s or pay stubs needed for an asset-based mortgage?
No, they are not needed on the qualifier path, where no employment or income is documented. On the depletion path, your assets become the income, so pay documents are not the basis of the file either. If you add documented income to supplement, the lender will want to see that income.
Can I use a retirement account without withdrawing from it?
Yes, in the sense that the balance counts as an asset without you cashing it out. On the qualifier path it counts at 90% under 59½ and 100% at 59½ or older. On the depletion path it counts at 70% at any age. Eligibility is subject to underwriting.
Is “no tax returns” the same as “no documentation”?
No. You still provide statements, ID, a credit report, property documents and sourcing for large deposits. Only the income and tax return piece drops out. Any lender that tells you otherwise is describing a different kind of loan.
Can I use this to buy an investment property in Ohio?
Yes, but only on the asset depletion path, at up to 65% LTV on a purchase or rate-and-term refinance and 60% on a cash-out. The asset qualifier path covers principal residences and second homes. For a pure rental, a DSCR loan is usually the more natural product.
Does every lender treat these files the same way?
No. The figures here are typical through select programs, and each lender’s guidelines and underwriting govern the file. Credit on the depletion path follows the lender’s matrix, and the qualifier path’s cash-out rules are lender-specific.
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.
Ohio retirees and business sellers often discover their best financing story is their balance sheet, not their tax return.
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. Federal Register: Ability-to-Repay and Qualified Mortgage Standards Under the Truth in Lending Act
2. CFPB: Truth in Lending Act compilation
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 Asset Verification Works on a Mortgage With No Tax Returns · Can Equity in a Rental Property Help You Qualify for an Asset-Based Mortgage? · Does an Asset Depletion Loan Require Any Income?
Guides: Asset-Based Mortgage in Ohio
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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Important disclosures. Lendmire (NMLS# 2371349) is a licensed mortgage brokerage. Lendmire is not a direct lender, depository institution, or financial advisor. All loan inquiries are subject to lender underwriting; this article does not constitute a commitment to lend. Rates, terms, and program guidelines are subject to change without notice and vary by borrower profile, property type, and state. Information in this article is general in nature and is not financial, legal, or tax advice. Equal Housing Opportunity. NMLS Consumer Access: nmlsconsumeraccess.org.