The Quick Read: Usually, yes, if you live in the home or use it as a second home and hold large, well-documented liquid balances, because select programs let eligible assets either cover the whole loan or convert into monthly qualifying income, subject to underwriting. If the Michigan home is a rental, the business-purpose route is a DSCR loan, which looks at rent rather than your paycheck. Assets are always documented. This is not a no-documentation loan.
- Assets cover the loan outright: on the asset qualifier path, eligible assets must equal or exceed the entire loan, and no employment or income is documented.
- Assets become income: on the asset depletion path, usable assets are divided by 60 months to create a qualifying income.
- Leverage differs by path: the qualifier path allows up to 80% on a purchase and 75% on a refinance, while the depletion path is more conservative on cash-out.
- Rentals usually go DSCR: the loan is reviewed primarily on property-level rental income covering the payment, subject to lender guidelines.
- Michigan changes nothing about the program figures: the home’s use, your balances and your credit decide the file.
What Does It Mean to Refinance on Assets?
It means the lender reviews your balance sheet instead of your pay stubs. Your accounts stay where they are. Nothing is sold, frozen or pledged. The balances are documented with statements, then counted at a percentage of their value.
Plenty of people mix this up with “no-doc” lending. Asset-based loans are the opposite. You skip employment and income paperwork on one path, but you hand over statements for every account that counts. The lender still reviews credit, the property and the loan size.
Across the wholesale network Lendmire works with, this product is built for a specific reader. Think retirees, sellers of a business, people who received an inheritance or settlement, early-retired professionals and households living off a portfolio. Their balances are large and their documented income is not.
Lendmire is a broker. It arranges asset-based mortgages through select lenders in its network, and its consumer mortgage lending is licensed in 16 states, Michigan among them. Program figures below are ceilings and floors, never offers, and every file is underwritten individually.
Which of the Two Paths Fits You?
Each borrower is qualified on one path at a time, and the two paths use different rules. Never blend their numbers.
| Factor | Asset qualifier | Asset depletion |
|---|---|---|
| How assets are used | Cover the entire loan | Become monthly income |
| Income documented | None | Derived from assets |
| Purchase leverage | Up to 80% | Up to 80% residence or second home |
| Refinance leverage | Up to 75% | 80% rate-and-term, 60% cash-out |
| Loan amounts | Up to $4,000,000 | $125,000 to $3,500,000 |
| Credit | 600 minimum | Lender’s matrix |
The depletion-path leverage in the table applies to a principal residence or second home. On an investment property, the depletion path allows up to 65% on a purchase or rate-and-term refinance and 60% on a cash-out. Whether the qualifier path allows cash-out proceeds is set by the lender and not published, so ask before you assume.
The qualifier path suits you if your liquid balances are large compared with the loan. The depletion path suits you if you need the loan sized against a monthly income figure, or if you want to add asset income on top of documented income.
How Do Eligible Assets Turn Into a Qualifying Loan?
On the qualifier path, the usable total must equal or exceed the whole loan. On the depletion path, the usable total is divided by 60 months and the result runs through a debt-to-income test. The percentages below decide what counts. These are illustrative, subject to underwriting, and the lender’s own calculation governs.
Qualifier path example. Take an $800,000 loan. You hold $330,000 in brokerage accounts, counted at 100%. You hold $300,000 in a 401(k) while under age 59½, counted at 90%, which is $270,000. You hold $200,000 in savings, counted at 100%. That totals $800,000 of usable assets, so the loan is reviewed on assets alone.
Depletion path example. You hold $1,500,000 in securities, counted at 80%, which is $1,200,000. You also hold $300,000 in cash, counted at 100%. Usable assets come to $1,500,000. Divided by 60 months, that 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.
Dividing by 60 months is an underwriting convention. It does not mean the lender expects you to spend the money over five years.
What counts, and at what percentage?
| Asset | Qualifier path | Depletion path |
|---|---|---|
| Cash, savings, money market | 100% | 100% (cash accounts) |
| Certificates of deposit | 100% | 100% |
| Brokerage accounts | 100% | 80% (securities) |
| Private stock | Not listed | 75% |
| Retirement accounts | 90% under 59½, 100% after | 70% at any age |
| Real-estate equity | Not listed | 60% |
Some assets are not eligible 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. 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 reviews the source of those funds.
Your down payment cannot double as an asset on a purchase. A law-firm review of federal supervisory findings states that rule plainly. For a refinance the parallel point is that cash-out proceeds never count as qualifying assets.
What Happens Before and After Your Income Stops?
Timing matters less than documentation. On the qualifier path, employment status is not part of the file, so a layoff or retirement date does not change the test. Your balances do.
Seasoning is the waiting period during which funds must sit in your accounts. On the qualifier path, that means 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 within 45 days. Funds from the sale of a business, an inheritance or a legal settlement are excused from that seasoning on the depletion path.
That gives you a practical order of operations:
1. Keep qualifying money in regulated accounts and avoid shuffling it around, since new deposits invite source questions.
2. Gather statements for every account you want counted, not just the biggest ones.
3. Set aside cash for closing costs and reserves before deciding what is “usable.”
4. Check credit and housing history before applying.
On credit, the qualifier path has a 600 minimum score, while 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 0x30x12, though 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.
Reserves are light by design. The qualifier path requires none at or below 75% loan-to-value, and above that the lender sets them. The depletion path has no published reserve months, but it does carry minimum-assets rules. You need qualified assets of at least the lesser of $1,000,000 or 1.25 times the loan balance, and never below $250,000 liquid when asset depletion is your only income source. If you still have documented income, asset income can supplement it up to a 45% debt-to-income ratio, and the minimum-assets rule is waived.
Why Doesn’t the Law Block This?
Federal mortgage rules ask a lender to confirm you can repay, and they allow that to rest on income, assets or both. The CFPB’s Ability-to-Repay compliance guide lists the first factor as current or reasonably expected income or assets, other than the value of the property securing the loan. That last clause is why equity in the home you are refinancing never counts as an asset for this purpose.
Asset-based mortgages are consumer loans, so the lender must document that finding. Standard consumer mortgage disclosures apply.
What If the Michigan Home Is a Rental?
If it is a true rental, DSCR is usually the better fit. 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. The file qualifies primarily on property-level rental income covering the payment, subject to lender guidelines. Credit, insurance, an appraisal and a rent schedule still matter. The rent figure is usually supported by the appraisal package.
A lapse in your paycheck does not directly sink a DSCR file. Weak rent can. Asset-based qualification does not rescue a rental that cannot cover its own payment. In that case you are looking at a lower loan amount, a different structure or a different program. Select lenders in the network do offer programs below 1.00 coverage, though leverage and terms adjust.
The business-purpose treatment also depends on occupancy. Under the CFPB’s Regulation Z exemption page, a non-owner-occupied rental is generally treated as a business purpose, but that treatment can be lost if you expect to occupy the home more than 14 days in the coming year. If you plan to stay in it, treat it as a residence or second home.
The depletion path can technically cover an investment property, at the lower 65% and 60% leverage noted earlier. Most owners with real rent find DSCR cleaner. For a deeper look at the product, see the complete DSCR loans guide. Terms depend on the lender’s guidelines, the property type, the leverage, and a full review of the credit profile.
Should You Do It? The Honest Tradeoffs
Qualifying on assets means your liquid balance sheet, not your cash flow, sets your borrowing power. That is useful, and it is also the catch.
- The assets that qualify you are the same assets you live on. If a market drop shrinks your portfolio later, the loan remains while the cushion thins.
- Haircuts shrink usable balances. A $300,000 retirement account counts for far less on the depletion path than on the qualifier path.
- Cash-out has limits. The depletion path allows 60% on a cash-out refinance of a principal residence, second home or investment property, and the proceeds cannot count toward qualifying.
- Other options exist. A home equity line or a bank statement program can fit different situations. Lendmire’s piece Home Equity Lines for Homeowners Deciding When a Cash-Out Refinance Wins covers that tradeoff, and the bank statement route is for borrowers who document income through deposits. Selling is the other honest option when the numbers get tight.
A practical test: if the refinance only works because you count every dollar you own, think hard before proceeding.
Key Terms Defined
Asset qualifier: a path where eligible assets, after credit percentages, must equal or exceed the entire loan.
Asset depletion: a path that divides usable assets by 60 months to create monthly qualifying income.
Haircut: the discount applied to an asset so only part of its balance counts.
Seasoning: the period funds must stay in your accounts before they count.
Debt-to-income (DTI): your monthly debts compared with your monthly qualifying income.
DSCR: debt service coverage ratio, meaning rent compared with the property’s full monthly obligation.
Frequently Asked Questions
Can a lender deny me because I am retired?
Retirement alone is not a reason for denial, and an asset-based program is built for people in your position. The lender still reviews credit, housing history, the property and your documented balances. Approval is never promised and every file is underwritten individually.
Do I need any proof of income on this loan?
On the asset qualifier path, no employment or income is documented, but every qualifying account is. On the asset depletion path, your assets generate the qualifying income, so no paycheck is needed if assets are your only source. If you do have documented income, assets can supplement it.
Does my 401(k) count at full value?
It depends on the path. On the qualifier path it counts at 90% under age 59½ and 100% at 59½ or older. On the depletion path it counts at 70% at any age. Tax treatment varies; consult a qualified professional before relying on any withdrawal decision.
Can I use equity in the home I am refinancing as an asset?
No. The subject property’s value cannot count toward repayment ability. On the depletion path, real-estate equity counts at 60%, but that applies to equity in other property, not the one securing the loan.
What if my Michigan home is a rental and I have no paycheck?
DSCR is usually the route, because the loan is reviewed primarily on rental income covering the payment, subject to lender guidelines. Credit and insurance still matter. Lendmire’s piece Self-Employed Cash-Out Refinance Documentation When Income Looks Wrong explains related paths for borrowers whose paperwork does not match their finances.
Which Path to Ask About First
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. Call 828-256-2183 or request a quote through the site. For a Michigan owner whose paycheck has ended, the balance sheet does the talking, so start by gathering statements.
Lendmire’s asset-based mortgage in Michigan page presents the program for Michigan borrowers.
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. Consumer Financial Services Review – down payments in non-QM loans
2. CFPB – ATR/QM Rule Compliance Guide
3. CFPB – Regulation Z § 1026.3 Exempt transactions
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 to Open a HELOC on Assets Alone With No Paycheck · Can You Get a HELOC With No Income by Qualifying on Assets? · How Big Can an Assets-Only Mortgage Be?
Guides: Asset-Based Mortgage in Michigan
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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Required disclosures. Lendmire (NMLS# 2371349) operates as a licensed mortgage broker, not a direct lender or depository. The discussion in this article is general in nature and should not be relied upon as financial, legal, or tax advice — every investment scenario is unique and should be reviewed by a qualified professional. Any loan inquiry is subject to lender underwriting, and this article is not a commitment to lend or a guarantee of approval. Mortgage rates, loan terms, and program guidelines vary by borrower, property, and state, and may change without notice. Equal Housing Opportunity. Verify licensure at NMLS Consumer Access.