The Quick Read: Yes, often, because a pension or Social Security check can sit beside your savings on one file, or your savings alone can cover the loan, subject to underwriting and the specific program. Which path fits depends on how big your balances are compared with the loan. Across Lendmire’s wholesale network, these loans are placed through select lenders.
- Asset qualifier path: eligible assets must equal or exceed the entire loan, and no income is documented.
- Asset depletion path: usable assets are divided by 60 months into monthly income, which runs through the debt-to-income test.
- Fixed income plus savings: on the depletion path, asset income can supplement documented income up to a 45% debt-to-income ratio.
- Statements are still required. “No income documentation” never means “no documentation.”
- Figures are ceilings and floors, not offers. Lender guidelines and underwriting govern every file.
What “Asset-Based” Actually Means
An asset-based mortgage is reviewed around what you own instead of what you earn. Two separate programs hide behind that phrase, and a borrower is qualified on one path at a time.
The asset qualifier path is the simpler one. Your eligible assets, after the credit percentages below, must equal or exceed the entire loan amount. The lender does not document your employment or income. The loan is underwritten on the strength of the balances.
The asset depletion path works differently. The lender takes your usable assets, divides the total by 60 months, and treats the result as monthly qualifying income. That income then has to carry the full housing payment plus your other monthly debts through the debt-to-income test. That test compares your monthly obligations to your monthly income.
Each path has its own leverage, credit, and seasoning rules. Mixing the two tables is the fastest way to misread your own situation. This article names the path every time a figure appears.
Which Path Fits a Fixed-Income Household?
If your savings are large compared with the loan, the qualifier path is usually the cleaner fit. If your savings are solid but not enough to cover the whole loan, the depletion path is where your pension or Social Security check starts to matter.
Here is the simple sorting rule. Add up your balances after the credit percentages. If that number covers the whole loan, your fixed income never has to enter the file. If it does not, the depletion path converts the balances into income, and your documented income can join it.
That second scenario is the one most fixed-income buyers ask about. Picture a retiree with a steady pension and Social Security, plus a brokerage account and some cash. The paycheck alone is too small for a conventional debt-to-income test. The savings alone are too small to cover the loan outright. On the depletion path, the lender can add asset-derived income to the documented income and run the combined number through the test.
Here is the catch: the supplement ceiling is 45% debt-to-income. Your housing payment and other monthly debts have to fit inside that, using the blended income. A paid-off car and no credit card balances help far more than any single asset line.
There is one useful perk. When asset-derived income supplements documented income, the minimum-assets rule on the depletion path is waived. That rule otherwise sets a high bar (more on it below).
How Much of Your Savings Counts?
Not every dollar counts at full value. Each path applies its own percentages, and the two tables differ.
Asset qualifier path. Brokerage accounts, certificates of deposit, money market, and savings all 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.
Asset depletion path. Cash accounts and certificates of deposit count at 100%. Securities count at 80%, private stock at 75%, retirement accounts at 70% at any age, and real-estate equity at 60%.
| Asset type | Qualifier path | Depletion path |
|---|---|---|
| Savings, money market, cash | 100% | 100% |
| Certificates of deposit | 100% | 100% |
| Brokerage accounts / securities | 100% | 80% |
| 401(k) / IRA | 90% under 59½, 100% at 59½+ | 70% at any age |
| Private stock | Not published | 75% |
| Real-estate equity | Not published | 60% |
All figures are subject to underwriting and apply through select programs.
Some assets do not count at all on the depletion path: 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. Cash-out proceeds never count as qualifying assets either.
What about cryptocurrency, precious metals, collectibles, or pledged and borrowed funds? None is published as eligible on either path. The documented route is converting them to a seasoned cash balance in a regulated account, with the lender reviewing the source. Do not count on them at any percentage.
Retirement accounts deserve a plain note. They count, but at a haircut. Tax treatment of withdrawals varies; consult a qualified professional before moving money.
Two Worked Examples
These are shapes, not offers. 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%, so $200,000). Your usable assets total $800,000. That matches the loan, so you qualify on assets alone, subject to credit, seasoning, and underwriting.
Depletion path. Say you hold $1,500,000 in securities (80% counts, so $1,200,000) plus $300,000 in cash (100%, so $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 your other debts through the debt-to-income test.
Now add a pension or Social Security. On the depletion path, that documented income sits alongside the asset-derived figure, up to the 45% ceiling. It lowers how much of your portfolio has to do the work, which is the point of stacking the two.
What Leverage Can You Expect?
Leverage means the loan as a percentage of the home’s value. The ceilings differ by path and by property use.
On the asset qualifier path, the ceiling is up to 80% loan-to-value on a purchase and 75% on a refinance, for a principal residence or second home. 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 go up to 80% on a purchase or rate-and-term refinance and 60% on a cash-out refinance. Investment property is tighter: up to 65% on a purchase or rate-and-term refinance and 60% on a cash-out.
Loan sizes also differ. The qualifier path reaches up to $4,000,000. The depletion path runs from $125,000 to $3,500,000.
Credit, Seasoning, and Minimums
Savings do the heavy lifting here, but credit still gets reviewed. Nobody should expect a “no credit check” loan. The asset qualifier path has a published 600 minimum score. The depletion path follows the lender’s matrix of score and loan amount, so the number depends on the loan you request. A first-time investor on the depletion path needs a 700 score.
Housing history matters too. The target is 0x30x12, meaning no 30-day late payments on housing in the last twelve months. One late in that window is considered case by case. Multiple bankruptcies are not eligible. A housing event such as a foreclosure needs four years of seasoning on the depletion path.
Seasoning is the waiting period an asset has to sit in your account before it counts. The rules differ by path:
- Qualifier path: 60 days of seasoning, with two months of statements for each qualifying account.
- Depletion path: statements 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 seasoning.
The depletion path also has asset minimums. You need qualified assets of at least the lesser of $1,000,000 or 1.25 times the loan balance. If asset depletion is your only income source, you also need at least $250,000 in liquid assets. These apply when savings stand alone. When they supplement your documented income, the minimum-assets rule is waived.
Reserves, meaning money left after closing, are simple on the qualifier path: none required at or below 75% loan-to-value, and above that the lender sets them. The depletion path has no published reserve months.
When Fixed Income Alone Is Enough
Sometimes you don’t need assets at all. Many conventional programs count a pension, Social Security, or annuity as income when it is documented and likely to continue. If your income already clears the debt-to-income test, a standard mortgage may be the simpler route. Agency rules, conventional rules, and jumbo rules are their own programs’ rules, not this program’s.
Asset-based options earn their place when documented income is thin but balances are large. A few common profiles:
- Retirees living on a portfolio rather than a paycheck.
- People who just sold a business.
- Households that received an inheritance or legal settlement.
- Early-retired professionals with a large investment account.
A decision shortcut for you:
| Your situation | Likely fit |
|---|---|
| Fixed income clears the debt-to-income test alone | Conventional-style program |
| Usable assets cover the whole loan | Asset qualifier path |
| Income is short, assets are strong | Asset depletion path, stacked with income |
| Income comes from deposits, not a pension | Bank statement program |
Two Things People Mix Up
This isn’t the rental-property DSCR loan. If you are buying a pure rental, the business-purpose route is DSCR. DSCR loans are designed for non-owner-occupied investment properties, and because they are business-purpose investor loans, they are reviewed differently from a standard owner-occupied mortgage. A CFPB summary of the Truth in Lending Act notes that credit to acquire or improve non-owner-occupied rental property is business-purpose credit. That is why a DSCR file qualifies primarily on property-level rental income covering the payment, subject to lender guidelines.
The asset-based mortgage described here is a consumer mortgage. TRID disclosures apply to it. Investment property appears only on the asset depletion path, with the tighter leverage above.
Purpose is a fact test, not a label. Compliance Alliance explains that the test looks at the loan’s purpose rather than the property type, so not every “investment” property is automatically exempt. Tell your broker honestly how you will use the funds and the home.
The complete DSCR loans guide covers how rental qualification works in full.
Order-of-Operations Mistakes
A practitioner sees the same errors on asset files, and they are avoidable.
- Moving money right before applying. Fresh transfers between accounts raise questions about source and seasoning. Leave funds where they are.
- Spending the cushion first. Closing funds and any down payment come out of your pool. A sloppy withdrawal can drop you below the minimum.
- Counting what doesn’t count. Crypto, cash on hand, and stock options won’t count as published. Convert to a seasoned cash balance in a regulated account if you want them considered.
- Ignoring joint accounts. Titling matters. Ask which names are on each statement before you build the file.
- Forgetting the debts. On the depletion path, every monthly debt weighs on the 45% ceiling.
Retirees also ask about trust-held balances. Lendmire’s piece How to Use Trust Assets to Qualify on an Asset Depletion Mortgage takes that up directly.
The Risks Worth Weighing
Converting a portfolio into qualifying income is paperwork, not a spending plan. The lender divides your balances by 60 months to qualify you, but your portfolio isn’t actually drawn down on that schedule. Still, it should make you ask a practical question: after the down payment and closing costs, how much liquidity is left?
Think about what the purchase does to your balances. A big down payment shrinks the pool that generates your qualifying income. That can pull you under the minimum-assets threshold or push your debt-to-income past 45%. Run the file both ways before you commit.
The strongest play for many fixed-income buyers might be a lower loan amount with more cash in, because it keeps both the ratio and the cushion healthy. A bigger loan preserves savings, but it needs more qualifying income. It’s a real toss-up, and the answer depends on how much you value liquidity against a smaller balance.
A tidy file with clear sourcing and seasoned balances tends to move smoothly through underwriting. A file with recent transfers and unexplained deposits tends to draw questions. Gather clean statements early.
Key Terms Defined
Asset qualifier path: a program where eligible assets, after credit percentages, cover the entire loan and no income is documented.
Asset depletion path: a program that divides usable assets by 60 months to create monthly qualifying income, which runs through the debt-to-income test.
Debt-to-income (DTI): your monthly debt payments divided by your monthly income.
Seasoning: the time funds must sit in an account before they count toward qualifying.
Haircut: the percentage of an asset’s balance that does not count, such as 20% off securities on the depletion path.
Loan-to-value (LTV): the loan amount as a percentage of the home’s value.
Frequently Asked Questions
Can I qualify if my only income is Social Security or a pension?
Often, yes, if your balances are strong. On the asset qualifier path, your savings must cover the whole loan and no income is documented. On the asset depletion path, your documented pension or Social Security can join asset-derived income, up to a 45% debt-to-income ratio. Both depend on underwriting.
Do retirement accounts like an IRA or 401(k) count?
Yes, at a reduced value. On the qualifier path, they count at 90% under age 59½ and 100% at 59½ or older. On the depletion path, they count at 70% at any age. You don’t have to liquidate them to use them for qualifying, though the lender will review the statements.
Does this loan work for a rental property?
Only on the asset depletion path, with leverage of up to 65% on a purchase or rate-and-term refinance and 60% on a cash-out. For a pure rental, the business-purpose route is usually DSCR, which qualifies primarily on property-level rental income covering the payment, subject to lender guidelines. Programs below 1.00 coverage are available through select lenders in the network, though leverage and terms adjust.
Is this a no-documentation loan?
No. The assets are documented on both paths, with two months of statements on the qualifier path and aged statements on the depletion path. Credit is reviewed too. What changes is that employment and income may not be documented, depending on the path.
Is the loan available in every state?
No. Lendmire’s 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. Availability still depends on the program and underwriting.
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.
Households with large balances and small paychecks are often the ones that conventional underwriting misreads, and the paperwork on these files rewards whoever starts organizing statements first.
About Lendmire
Lendmire (NMLS# 2371349) is a mortgage broker licensed for consumer lending in 16 states. Scotsman Guide named Lendmire a Top Mortgage Workplace in both 2025 and 2026.
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References
1. CFPB – Truth in Lending Act summary
2. Compliance Alliance – Regulation Z and Investment Properties
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 an Asset Depletion Mortgage Works · How Asset Depletion Income Is Calculated From Your Portfolio · How to Qualify for an Asset Depletion Jumbo Loan
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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Disclosure information. Lendmire is a state-licensed mortgage brokerage under NMLS# 2371349. Lendmire is not a depository institution, direct lender, or financial advisor — all loans referenced are placed through wholesale lender partners and are subject to each lender's underwriting standards. This article is provided for general informational purposes and is not a commitment to lend, nor does it constitute financial, legal, or tax advice. Loan programs, terms, rates, and qualification standards change without notice and depend on borrower profile, property type, and the state in which the subject property is located. Equal Housing Opportunity provider. NMLS Consumer Access: nmlsconsumeraccess.org.