The Quick Read: A supplemented file counts your documented part-time earnings as one income stream and adds a calculated monthly income built from your eligible assets, then tests your total monthly obligations against both together, which makes it a debt-to-income review and not a rental-coverage review. It runs on the asset depletion path, subject to underwriting. Here is what matters most:
- Assets cover the whole loan on one path (the asset qualifier path). They become income on the other (the asset depletion path). You are on one path at a time.
- Only the depletion path can stack part-time pay on top of asset income. The qualifier path documents no income at all.
- Asset-derived income may supplement documented income up to a 45% debt-to-income ratio, and the minimum-assets rule is waived when it supplements.
- The divisor is 60 months on the depletion path. Haircuts on each asset type decide how much of your balance counts.
- If you are buying a rental that covers its own payment, a rental-coverage loan may fit better, and it ignores your paycheck altogether.
What Is a Supplemented Mortgage File?
A supplemented file is a mortgage file where a lender combines two kinds of qualifying income. One is earned income you can document, such as a part-time job or contract work. The other is imputed income, a monthly figure the lender calculates from your assets. The lender adds them and runs the total through the debt-to-income test.
Debt-to-income, or DTI, is your total monthly debt payments divided by your qualifying monthly income. A lower ratio is stronger.
Picture a semi-retired consultant. She works a few hours a week, holds a large investment account, and shows modest taxable income. The paycheck alone would not carry a home purchase. The assets alone might. Together, the file often looks stronger than either one does by itself.
This is a different animal from a DSCR loan. 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. Your personal income is not the test there. The property’s rent is. Lendmire’s complete DSCR loans guide covers that product in full. This article covers the borrower-income path that sits beside it.
Two Paths, and Why You Pick One
Across the wholesale network Lendmire works with, asset-based consumer mortgages come in two shapes.
The asset qualifier path. Your eligible assets, after credit percentages, must equal or exceed the entire loan amount. No employment or income is documented. Part-time pay never enters the picture, so there is nothing to supplement. Loans run up to $4,000,000 through select programs, with up to 80% loan-to-value on a purchase and 75% on a refinance, on a principal residence or second home.
The asset depletion path. Your eligible assets, after haircuts, are divided by 60 months to produce a monthly qualifying income. That income carries the housing payment and your other debts through the DTI test. Loans run from $125,000 to $3,500,000. This is the path where part-time income can sit alongside asset income.
A haircut is the portion of an account’s balance the lender refuses to count. A $100 brokerage balance counted at 80% adds $80 to the pile.
Both paths document the assets themselves. “No income documentation” never means “no documentation.” The lender wants statements, and it reviews the source of the money.
How Underwriting Builds the File, Step by Step
The order of operations is simple. Each step feeds the next.
1. Document the part-time income. Expect pay stubs and W-2s for employment, or 1099s and traditional personal-income documentation for contract work. How much history the lender wants varies by program, as does the treatment of variable hours or a recent start. Ask early.
2. Inventory eligible assets. Gather statements for every account you plan to use. On the depletion path, the most recent statement must be within 45 days, and statements must be at least 120 days old at application. Sale-of-business, inheritance and legal-settlement funds are excused from that seasoning.
3. Apply the haircuts. Each asset type counts at its own percentage (table below).
4. Divide by 60 months. The usable total divided by 60 is your monthly asset income.
5. Add the part-time income. Asset income plus documented earnings equals total qualifying income.
6. Run DTI. Total monthly obligations, including the proposed housing payment, are divided by that total. When asset income supplements documented income, the ratio is capped at 45%.
Here is the formula in plain form:
Total qualifying income = (usable assets ÷ 60) + documented part-time income
DTI = total monthly obligations ÷ total qualifying income
Programs differ on the divisor, so ask each lender which one it uses. Lendmire’s piece How Residual Income Shifts the Divisor on an Asset Depletion Mortgage goes deeper on that lever.
Worked Example: The File Three Ways
Use the sanctioned shape for the depletion path. Say you hold $1,500,000 in securities, counted at 80% for $1,200,000, plus $300,000 in cash at 100%. That is $1,500,000 in usable assets. Divided by 60 months, it produces $25,000 of monthly qualifying income. The lender’s own calculation governs, and this is illustrative only.
| Scenario | Qualifying income | DTI read |
|---|---|---|
| Part-time pay only | Thin, documented | Often over the ceiling |
| Assets only | Derived monthly figure from the depletion calculation | Passes if debts stay modest |
| Both combined | Derived monthly figure plus the paycheck | Lowest ratio of the three |
The point is the denominator. Part-time pay alone gives a small one, so the ratio balloons. Assets alone give a larger one. Adding the paycheck makes it larger still, which can pull the ratio under the 45% supplement cap when debts are heavier than assets alone could carry.
Does the paycheck always help? No. If assets alone already clear the test with room to spare, adding part-time income buys you extra paperwork and little else. More on that below.
Which Assets Count, and At What Percentage
Every asset type has its own haircut, and the two paths use different tables. Do not blend them.
Asset depletion path (share of balance counted):
| Asset type | Counts at |
|---|---|
| Cash accounts | 100% |
| Certificates of deposit | 100% |
| Securities | 80% |
| Private stock | 75% |
| Retirement accounts | 70% at any age |
| Real-estate equity | 60% |
Asset qualifier path (share of balance counted): brokerage, CDs, money market and savings count at 100%. A 401(k) or IRA counts at 90% under age 59½ and 100% at 59½ or older. Accounts combine.
Some 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. If deferred pay is a big part of your balance sheet, Lendmire’s piece How to Use Deferred Compensation in an Asset Depletion Mortgage File explains the workarounds.
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, with the source reviewed by the lender. Cash-out proceeds from the subject transaction never count.
Retirement money deserves one more note. You do not need to cash it out. The lender counts a share of the balance as if it could be drawn down, and your account stays put. Tax treatment can depend on how the funds are used and how the property is held; borrowers should keep clear records and speak with a qualified tax professional before relying on any deduction.
Leverage, Credit and Minimums on the Depletion Path
The headline numbers are ceilings, not offers, and all are subject to underwriting.
On a principal residence or second home, the depletion path allows up to 80% loan-to-value on a purchase or rate-and-term refinance, and up to 60% on a cash-out refinance.
Credit follows the lender’s score and loan-amount matrix, not a single flat floor. A first-time investor on this path needs a 700 score. Housing history is 0x30x12, and one 30-day late in the last twelve months is considered case by case. Multiple bankruptcies are not eligible. A housing event needs four years of seasoning.
Minimums matter here, and they change when you supplement. When depletion is the only income source, you need qualified assets of at least the lesser of $1,000,000 or 1.25 times the loan balance, and never less than $250,000 liquid. When asset income only supplements documented income, the minimum-assets rule is waived. That waiver is a real reason a part-time earner with a mid-sized portfolio might choose the supplemented route.
Why a Lender Can Blend Income and Assets
Federal rules on ability to repay for consumer mortgages require a reasonable, good-faith determination, based on verified and documented information. Regulation Z § 1026.43 sets that standard. The Federal Register’s final rule adds that verification must rely on reasonably reliable third-party records.
The rule lists income or assets as factors. Legal commentary at CFS Review notes that a lender may consider income, assets, or both, and need only verify what it actually relies on. That is why a lender can document a paycheck, calculate asset income, and use the combination.
A related myth: that federal law caps DTI at 43%. That cap belonged to the old qualified-mortgage definition. Consumer Finance Monitor reports that the 2020 final rule replaced the 43% DTI basis for general QM with a price-based limit. Any DTI ceiling you meet today is a program limit, set by the lender, not a federal one.
Where the General Rule Breaks
The idea sounds simple. These edge cases are where files get stuck.
Programs that will not stack. Some lenders treat asset income as the only income, full stop. Others allow it to supplement. Across the network, the depletion path described above supplements up to 45% DTI, while the qualifier path documents no income. Always confirm which rule a specific program follows before you gather paystubs.
Co-borrowers. Whether a co-borrower who is not on the accounts can bring earned income alongside the account holder’s asset income varies by program. Ask the question directly. Do not assume.
Double-counting. The same dollars cannot be both down payment and income. Whatever you spend at closing leaves the pile. The more cash you put down, the less derived income remains. Plan the down payment first, then run the math on what is left.
Variable or brand-new part-time work. Lenders want income they can document consistently. A job that began recently, or hours that swing, may be averaged, discounted or left out. If leaving it out does not hurt the ratio, leave it out.
Agency contrast. Agency-style asset depletion, under those programs’ own rules, uses the loan term as the divisor and subtracts closing costs and reserves first. That is why agency results come out far lower than this program’s 60-month figure.
Is Part-Time Income Worth Adding?
Add it when the ratio needs help or the minimum-assets rule is the obstacle. Skip it when assets alone clear the test comfortably.
This one is a genuine judgment call. Documented income carries paperwork and verification risk, and assets carry none beyond statements. A borrower on the edge of the ratio usually benefits from stacking. A borrower with room to spare often wins by keeping the file clean.
| Your situation | Supplement? | Why |
|---|---|---|
| Assets clear DTI with room | Usually no | Extra documents, no gain |
| Ratio sits just over the limit | Yes | Larger denominator helps |
| Portfolio below the minimum-assets rule | Yes | Waiver applies when supplementing |
| Hours vary, job is new | Maybe not | Hard to document consistently |
| Assets cover the whole loan | Use the qualifier path | No income is documented there |
| Buying a rental that covers its payment | Consider DSCR | Personal income is not the test |
Four Short Profiles
The semi-retiree. She works part time and holds a large mix of cash and securities. Her paycheck is small but steady. The depletion path with supplemented income lets her stay invested while the ratio clears.
The career changer. He sold a business, parked the proceeds in cash, and started a lower-paying job. Sale-of-business funds are excused from the 120-day seasoning rule on the depletion path. The new job’s short history may or may not count, so he might qualify on assets alone.
The household with one part-time earner. One spouse earns part time, the other holds the accounts. This is the co-borrower question from above. The answer depends on the program and on whose name is on which account.
The investor eyeing a rental. She wants to buy a duplex. If the rent covers the full payment, DSCR sidesteps her income. If it does not, or she wants the property on a personal-residence-style loan, the supplemented file is the alternative, though the leverage limits for an investment property are tighter than for a primary home.
Common Mistakes
- Counting an account at 100% when its type is haircut. Retirement balances count at 70% on the depletion path.
- Using the qualifier-path table on a depletion file, or the reverse.
- Forgetting that closing funds shrink the asset base.
- Moving money between accounts right before applying, which resets the seasoning picture.
- Listing assets the program does not accept, such as deferred compensation or unvested stock units.
- Assuming “no income documentation” means no paperwork. The assets are documented on both paths.
Document Checklist
Asset side: two months of statements per account on the qualifier path, or statements at least 120 days old plus one within 45 days on the depletion path; proof of ownership; a paper trail for any large recent deposit; liquidation records if you convert crypto or metals to cash.
Income side (depletion path, when supplementing): recent pay stubs and W-2s, or 1099s and traditional personal-income documentation for contract work; employer details; any documentation the lender needs to show hours and tenure.
Key Terms Defined
Asset depletion: a method that divides usable assets by a set number of months to create monthly qualifying income. You keep the assets.
Asset qualifier: a path where eligible assets cover the entire loan amount and no income is documented.
Debt-to-income (DTI): monthly debt payments divided by monthly qualifying income.
Haircut: the share of an account’s balance the lender does not count.
Divisor: the number of months the usable total is divided by. It is 60 on the depletion path.
Seasoning: how long funds have sat in an account before the lender will count them.
Supplemented file: a file that adds asset-derived income to documented earned income.
Frequently Asked Questions
Can part-time income be used with asset depletion?
Yes, on the asset depletion path. Asset-derived income may supplement documented income up to a 45% DTI, subject to underwriting. On the asset qualifier path, no income is documented, so a paycheck plays no role.
Do I need part-time income at all?
Not always. If your usable assets divided by 60 months carry the housing payment and your other debts through the DTI test, the paycheck adds paperwork without changing the result. It earns its place when the ratio runs tight or when minimum-asset rules are in the way.
How long must I have held the part-time job?
It depends on the program. Lendmire has no single figure to publish, because lenders in the network set their own history requirements and treat variable hours differently. Ask for the specific lender’s documentation rule before relying on the income.
Does part-time income change my DTI?
Yes. It enlarges the income in the denominator. Total obligations stay the same, so the ratio falls. Just remember that spending assets on the down payment shrinks the derived income at the same time.
How is this different from a DSCR loan?
A DSCR loan is reviewed primarily on property-level rental income covering the payment, subject to lender guidelines, and it is for investment properties only. A supplemented file is reviewed on you: your assets and any documented income, through a DTI test.
What to Do Next
Start with a tally. Add up your eligible balances using the percentages for the path you are considering. Divide by 60 to see roughly where the depletion path lands. Then compare it with what your paycheck adds. Leverage, credit profile and property type all shape the answer, and programs change through select lenders.
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, not a lender, and its consumer mortgage lending is licensed in 16 states: Alabama, California, Colorado, Florida, Georgia, Indiana, Michigan, Montana, New Mexico, North Carolina, Ohio, Pennsylvania, Tennessee, Texas, Virginia, and Washington. Nothing here is a commitment to lend.
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. CFPB Regulation Z § 1026.43
2. Federal Register ability-to-repay final rule
3. CFS Review commentary on non-QM loans and ability to repay
4. Consumer Finance Monitor on the 2020 qualified-mortgage 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: How Asset Depletion Counts Income for a Rental Portfolio Buyer · How an Asset Qualifier Jumbo Mortgage Works · How Asset Depletion Converts Savings Into Qualifying Income
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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Legal disclosures. Lendmire (NMLS# 2371349) is a state-licensed mortgage brokerage that arranges financing through wholesale lender relationships. Lendmire is not a direct lender, depository institution, or registered financial advisor. The discussion above is general informational content about real estate financing — it is not financial, legal, or tax advice, and readers should consult licensed professionals for guidance on their individual circumstances. Loan inquiries are subject to lender underwriting; this article does not represent a commitment to lend. Loan terms, rates, and qualification standards vary by borrower, property, and state, and are subject to change at any time. Equal Housing Opportunity. NMLS Consumer Access: nmlsconsumeraccess.org.