The Quick Read: Yes, on the asset depletion path an Ohio buyer can add asset-derived income to documented Social Security income, because eligible assets, after haircuts, are divided by 60 months and the result runs through the debt-to-income test alongside the benefit, subject to underwriting on select programs. On the other asset path, assets cover the whole loan and Social Security never enters the file. The program figures are the same in Ohio as anywhere else.
- Asset depletion path: usable assets divided by 60 months become monthly income that can sit next to Social Security, up to a 45% debt-to-income ratio when it supplements documented income.
- Asset qualifier path: eligible assets must equal or exceed the entire loan, and no employment or income is documented.
- Rental purchase: a business-purpose rental usually moves to a DSCR loan, where the property’s rent is what gets reviewed.
- Nothing is spent: depletion is a calculation convention. You keep the portfolio and keep it invested.
Which Path Fits an Ohio Retiree?
The path depends on how big your balances are compared with the loan. If your assets can cover the whole loan, the qualifier path is cleaner. If your assets are large but short of the loan, the depletion path turns them into income that supplements Social Security.
Picture a retiree in Columbus selling a longtime home and downsizing. Social Security covers daily life, but it would not carry a new mortgage on its own. A bank that wants pay stubs and tax-return income sees a small number and stops there. Lendmire, a mortgage broker, places asset-based files with select lenders in its wholesale network, and those programs read the balance sheet instead.
Lendmire’s consumer mortgage lending is licensed in 16 states, Ohio among them. The guidelines below do not change by state. Every figure here is a ceiling or floor for select programs, not an offer, and the lender’s own calculation governs.
| Path | Role of Social Security | Core test |
|---|---|---|
| Asset qualifier | None, income not documented | Assets cover the entire loan |
| Asset depletion | Supplements derived income | Debt-to-income test |
| DSCR (rental) | None, not part of the file | Rent covers the payment |
A borrower is qualified on one path at a time. You can’t borrow from the qualifier path’s assets table and the depletion path’s income table in the same file. Each path carries its own percentages, so the sections below keep them separate.
How Does Asset Depletion Income Work?
The lender totals your eligible assets, applies a percentage to each account type, and divides the result by 60 months. That quotient is monthly qualifying income. It joins your real income, such as a Social Security benefit, and the combined figure must carry the full housing payment and your other debts.
The steps look like this:
1. List the accounts that are eligible on this path. 2. Apply the haircut for each account type. 3. Add the usable balances together. 4. Divide by 60 months to get monthly qualifying income. 5. Add documented income, such as Social Security. 6. Test the total against the housing payment and other debts.
Run the numbers on a sample shape. Say you hold $1,500,000 in securities, which count at 80%, or $1,200,000. You also hold $300,000 in cash, which counts at 100%. That is $1,500,000 of usable assets. Divided by 60 months, it produces $25,000 of monthly qualifying income. Your monthly Social Security benefit goes on top of that figure. The sum then carries the housing payment and other debts through the debt-to-income test. This is an illustration, and the lender’s own calculation governs.
Asset-derived income may supplement documented income up to a 45% debt-to-income ratio. When it supplements, the minimum-assets rule is waived. Without a benefit or pension next to it, the depletion path wants qualified assets of at least the lesser of $1,000,000 or 1.25 times the loan balance. It also wants no less than $250,000 liquid when asset depletion is the only income source.
Agency-style programs (Fannie Mae and Freddie Mac) divide by a much longer period, which is why their income figures come out smaller. Those are their rules and not this program’s.
Which Assets Count, and How Much?
Cash and certificates of deposit count in full on both paths. Beyond that, the two paths differ. The qualifier path is more generous with retirement money, while the depletion path trims securities and retirement accounts.
Asset qualifier path (share of the balance that counts):
| Account type | Credit |
|---|---|
| Brokerage, CDs, money market, savings | 100% |
| 401(k) and IRA, under age 59½ | 90% |
| 401(k) and IRA, 59½ or older | 100% |
Accounts combine. Consider an $800,000 loan. You hold $330,000 in brokerage accounts (100%, so $330,000), $300,000 in a 401(k) under 59½ (90%, so $270,000), and $200,000 in savings (100%, so $200,000). Together that is $800,000 of usable assets, which is reviewed on assets alone, subject to underwriting.
Asset depletion path (share of the balance that counts):
| Account type | Credit |
|---|---|
| Cash accounts and CDs | 100% |
| Securities | 80% |
| Private stock | 75% |
| Retirement accounts, any age | 70% |
| Real-estate equity | 60% |
Some assets don’t count at all on the depletion path. These include 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, pledged or borrowed funds, and business accounts beyond your ownership share 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 those funds.
Retirement balances are worth a second look. The qualifier path rewards you at 59½ because the credit rises from 90% to 100%. The depletion path counts retirement accounts at 70% at any age, so the same IRA produces less income there. Tax treatment varies; consult a qualified professional before drawing on retirement accounts.
Which Kind of Social Security Counts?
Retirement, survivor, and disability benefits are the benefits most buyers document. The proof is the Benefit Verification Letter. The Social Security Administration describes it as proof of retirement, disability, SSI, or Medicare benefits that can be used for loans and mortgages.
Match the document to the request. AARP explains that the verification letter differs from an award letter. The award letter is the notice that a claim was approved. The verification letter shows what you receive now, and that is the one a file usually needs.
SSI deserves its own warning. It is a means-tested benefit with asset limits. A buyer who relies on it should think hard before building a large asset pool, because the pool itself can interfere with the benefit. Ask the benefit office before you move money around.
A further question is timing. If you haven’t claimed Social Security yet, there is no benefit to supplement. In that case the depletion path stands alone, so the $250,000 liquid floor and the lesser-of-$1,000,000-or-1.25x-the-loan rule apply, subject to the lender’s matrix. Claiming first and then supplementing can lower the assets the lender wants to see. Whether that tradeoff is worth it depends on your age, your health, and your plan for the benefit. Talk it through before you file the claim just to qualify.
When the Goal Is a Rental, Social Security Drops Out
If you want to buy a rental, a different loan usually fits better. 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.
A DSCR loan is reviewed primarily on property-level rental income covering the payment, subject to lender guidelines. Your Social Security amount is not part of that calculation. Credit, reserves, identity, and the property are still reviewed. Lenders compare rent against the full monthly housing obligation, and many programs treat 1.00 as the working floor. Select lenders in the network offer programs below 1.00 coverage, but loan-to-value and terms adjust. Eligibility depends on lender guidelines, credit, reserves, and the property itself.
The depletion path can reach investment property too, but at lower leverage: up to 65% on a purchase or rate-and-term refinance and 60% on a cash-out, subject to underwriting. That compares with up to 80% on a purchase or rate-and-term refinance and 60% on a cash-out for a principal residence or second home. Cash-out proceeds never count as qualifying assets.
Most retirees who want a rental never need their benefit in the file. If the rent covers the payment, the property carries the loan.
What Does the Rule Say About Assets and Benefits?
The lender has to make a reasonable, documented judgment that you can repay a consumer mortgage. The CFPB’s small-entity compliance guide says that under the general standard, creditors consider debt-to-income or residual income without fixed thresholds. It also says monthly income can include unearned income, such as interest and dividends, and regular payments such as government benefits.
CFS Review explains that a non-QM creditor may consider income, assets, or both. It needs to verify only what it actually relies on. That is the logic behind asset-based qualification, and it is why a benefit and an asset-derived income can sit in the same file.
The rule does not set the 60-month divisor or the haircuts. Those are program choices. This applies to consumer-purpose loans on a primary residence or second home, not to business-purpose DSCR loans.
Seasoning, Statements, and Credit
Assets are documented on both paths. Skipping income paperwork does not mean skipping paperwork. Here is what select programs ask for:
- Qualifier path: 60 days of seasoning and two months of statements for each qualifying account. The credit-score floor is 600, subject to underwriting.
- Depletion path: statements at least 120 days old at application, plus the most recent statement within 45 days. Funds from a business sale, inheritance, or legal settlement are excused from that seasoning. Credit follows the lender’s score and loan-amount matrix.
- First-time investors: a first-time investor on the depletion path needs 700.
- Housing history: 0x30x12 is the standard, and one 30-day late in the last twelve months is considered case by case. Multiple bankruptcies are not eligible, and a housing event needs 4 years of seasoning on the depletion path.
Large deposits get questions. If a balance jumped recently, expect to explain where the money came from and show the paper trail. Moving funds between your own accounts is fine, as long as the statements show it clearly.
Loan sizes differ. The qualifier path runs up to $4,000,000. The depletion path runs from $125,000 to $3,500,000. Qualifier-path reserves are none at or below 75% loan-to-value, and above that the lender sets them. The depletion path publishes no reserve months.
Leverage on the qualifier path is up to 80% on a purchase and 75% on a refinance, on a principal residence or second home. Whether cash-out proceeds are allowed on that path is set by the lender, so don’t plan around it.
Mistakes That Sink Asset-Based Files
Across Lendmire’s wholesale network, the same few errors keep showing up. They are avoidable.
Counting the same dollars twice. If income from an account already qualifies you, that account can’t also be divided into imputed income. Pick one use for each dollar.
Mixing the two paths. The qualifier path’s 90% retirement credit does not apply to the depletion path, where retirement accounts count at 70%. Use the table for the path you are on.
Assuming nothing to document. The qualifier path skips traditional personal-income documentation, pay stubs and employment verification. The statements, the credit, and the source of funds are all fully reviewed.
Treating depletion as a withdrawal. You aren’t required to sell anything. The divisor is a math device. It does not set a draw schedule.
Moving money late. Reshuffling accounts just before applying can reset seasoning. Leave accounts alone and give the file clean statements.
Using the wrong Social Security letter. Bring the current benefit verification letter, not an old award notice.
When This Isn’t the Right Fit
Skip the depletion path if your liquid assets sit well below the minimums and you have no benefit to supplement. The lesser-of-$1,000,000-or-1.25x-the-loan rule is waived only when asset income supplements documented income. Without that, a smaller portfolio will not clear it.
Skip it also if you want the highest leverage on a rental. At 65% on a purchase for investment property, the cash required is real, and a DSCR loan may ask less of you if the rent covers the payment.
A borrower with steady documented income might do better with a traditional program. A buyer who documents income with bank deposits may fit the bank statement program. Compare before you commit.
Key Terms Defined
Asset depletion income: monthly income a lender calculates from your eligible assets, even though you don’t actually spend them down.
Asset qualifier path: a route where eligible assets cover the entire loan amount and no employment or income is documented.
Haircut: the percentage of an account’s balance that counts, after the lender discounts it for risk.
Debt-to-income ratio: your monthly debts, including the new housing payment, divided by your monthly income.
Seasoning: how long funds have sat in an account before the lender counts them.
Benefit Verification Letter: the Social Security document that shows your current benefit, used as proof of income.
DSCR: debt service coverage ratio, the property’s rent divided by its full monthly housing payment.
Frequently Asked Questions
Do I have to sell investments to use asset depletion?
No. The lender divides eligible assets by 60 months to get a qualifying income figure. Nothing is liquidated. The assets stay invested, and the lender’s own calculation governs.
Can I use the qualifier path and still count Social Security?
There is no need. On the qualifier path, eligible assets must cover the entire loan, and no employment or income is documented. The review rests on the assets. To bring a benefit into the file, you would use the depletion path.
How do retirement accounts count?
It depends on the path. On the qualifier path, 401(k) and IRA balances count at 90% under age 59½ and 100% at 59½ or older. On the depletion path, retirement accounts count at 70% at any age. All figures are subject to underwriting.
What if my benefits haven’t started yet?
Then the depletion path stands alone, and the lender expects at least the lesser of $1,000,000 or 1.25 times the loan balance in qualified assets. It also expects no less than $250,000 liquid. Whether claiming earlier makes sense is a personal decision to weigh with your own advisors.
Is a rental purchase better financed with a DSCR loan?
Often, yes. Your Social Security benefit is not part of the file. The depletion path allows investment property at 65% on a purchase or rate-and-term refinance and 60% on a cash-out, which is lower leverage.
A 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. For current guidelines and terms, see Lendmire’s asset-based mortgage programs page.
Sort the accounts first, because the path you can use follows from the balances you can prove.
Lendmire’s asset-based mortgage in Ohio page presents the program for Ohio borrowers.
About Lendmire
Lendmire (NMLS# 2371349) is a mortgage brokerage serving self-employed and high-net-worth borrowers in 16 states. Bank statement, P&L-only, 1099-only and asset-based mortgages are arranged through wholesale lending channels; Lendmire brokers the financing and the lender underwrites each application. Scotsman Guide named Lendmire a Top Mortgage Workplace in both 2025 and 2026.
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References
1. SSA Benefit Verification Letter
2. AARP, Benefit Verification Letter
3. CFPB ATR/QM Small Entity Compliance Guide
4. CFS Review, non-QM ability-to-repay
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 of a Brokerage Account Counts Toward Asset Depletion Income? · How to Document an Ohio Asset Qualifier Mortgage Without an Employer · Can You Buy a Michigan Rental Property on Asset Depletion Income?
Guides: Asset-Based Mortgage in Ohio
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.