The Quick Read: Yes, usually, if the home is a rental or you hold enough eligible savings and investments, because lenders can qualify you on those assets or on the rent instead of a paycheck, though you still document the assets, the property and your credit, and approval is subject to underwriting. Which route fits depends on one fact: is the home a rental, or do you live in it?
- Assets cover the whole loan: the asset qualifier path documents no employment or income.
- Assets become income: the asset depletion path divides usable assets by 60 months.
- A rental can carry itself: a DSCR loan tests the rent against the payment.
- You stay in control: you keep the assets and are not required to sell them.
- Every file is underwritten individually, and nothing here is a commitment to lend.
Key Terms Defined
Asset qualifier path: a program route where eligible assets, after credit percentages, must equal or exceed the entire loan amount.
Asset depletion path: a route where usable assets are divided by 60 months to create a monthly qualifying income.
Haircut: the share of an asset’s balance a lender refuses to count, such as 30% of a retirement account.
Seasoning: how long funds must sit in your account before they count.
DSCR (debt service coverage ratio): monthly rent divided by the monthly housing obligation on a rental.
PITIA: principal, interest, taxes, insurance and association dues, the full monthly cost DSCR tests.
Non-QM: a mortgage that falls outside the standard box for documenting income, built for borrowers with unusual profiles.
Which Path Fits Your Situation?
Start with the property. A rental points you toward DSCR or the asset depletion path. A home you live in points you toward either asset path. A second home works on either asset path too.
Then look at your balance sheet. If your savings and investments, after the credit percentages below, add up to the full loan amount, the asset qualifier path is the cleaner fit. If your assets are large but fall short of the loan, the asset depletion path turns them into income instead.
One rule matters here. A borrower is qualified on one path at a time. The figures from the two paths never blend, so each number below names its path.
All of this is placed through select programs in Lendmire’s wholesale network. The figures are ceilings and floors, not offers.
How Does the Asset Qualifier Path Work?
The asset qualifier path asks one question: do your eligible assets cover the whole loan? If yes, the lender documents no employment and no income. Across the network, this is the route that suits retirees, business sellers and anyone living on a portfolio.
Leverage runs up to 80% loan-to-value (LTV, the loan as a share of the home’s value) on a purchase and 75% on a refinance, for a principal residence or second home, subject to underwriting. Loans go up to $4,000,000. The minimum credit score is 600. Cash-out proceeds on this path are set by the lender and are not published, so do not assume them.
Assets need 60 days of seasoning, with two months of statements for each qualifying account. Reserves are not required at or below 75% LTV. Above that, the lender sets them. These specifics are subject to lender guidelines and a full review of property, leverage, and credit.
Here is an illustrative case, and the lender’s own calculation governs. Say you want an $800,000 loan. You hold $330,000 in brokerage accounts, counted at 100%, so $330,000. You also have $300,000 in a 401(k) while under age 59½, counted at 90%, so $270,000. Add $200,000 in savings at 100%, so $200,000. Usable assets total $800,000, which matches the loan, so the file is reviewed on assets alone.
How Does the Asset Depletion Path Turn Savings Into Income?
The asset depletion path converts assets into imaginary paycheck money. Usable assets, after haircuts, are divided by 60 months. The result is monthly qualifying income, and it must carry the full housing payment and your other debts through the debt-to-income test.
Take $1,500,000 in securities at 80%, which is $1,200,000. Add $300,000 in cash at 100%. That is $1,500,000 usable, divided by 60 months, for $25,000 of monthly qualifying income. This is a calculated figure, not money you actually receive. Again, the lender’s own math governs.
Leverage on this path depends on the property and the purpose:
- Principal residence or second home: up to 80% on a purchase or rate-and-term refinance (a refinance that changes the balance or terms without pulling cash), and 60% on a cash-out refinance.
- Investment property: up to 65% on a purchase or rate-and-term refinance, and 60% on a cash-out.
Cash-out proceeds never count as qualifying assets. Loan amounts run from $125,000 to $3,500,000. Your credit score follows the lender’s matrix, and a first-time investor needs 700.
Housing history should read 0x30x12, meaning no 30-day lates in the last twelve months. One late is considered case by case. Multiple bankruptcies are not eligible, and a housing event needs 4 years of seasoning.
The asset minimums are real. You need qualified assets of at least the lesser of $1,000,000 or 1.25 times the loan balance. If depletion is your only income source, you need no less than $250,000 liquid. If you still have some documented income, derived income can supplement it up to a 45% debt-to-income ratio, and the minimum-assets rule is waived.
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.
Which Assets Count (and Which Don’t)?
Retirement balances and securities count for less than cash, and the haircut differs by path. This table shows the share of the balance each path counts, subject to underwriting.
| Asset | Qualifier path | Depletion path |
|---|---|---|
| Savings, money market | 100% | 100% cash |
| Certificates of deposit | 100% | 100% |
| Brokerage, securities | 100% | 80% |
| Retirement accounts | 90% under 59½; 100% after | 70% at any age |
| Private stock | Not published | 75% |
| Real-estate equity | Not published | 60% |
On the depletion path, several assets are not eligible. 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 to convert them into a seasoned cash balance in a regulated account, with the lender reviewing the source. They never count at a percentage.
Notice what this means. “No income documentation” never means “no documentation.” Statements, appraisal, title and credit are all part of the file.
What If the Tennessee Home Is a Rental?
If it is a rental, the property’s income can carry the loan. That is a DSCR loan. It qualifies primarily on property-level rental income covering the payment, subject to lender guidelines. Your paycheck stopping does not directly block it.
Here is how the rent side works. An appraiser values the home and completes a rent schedule. The rent counted is typically the lower of the in-place lease and the appraiser’s market rent. A vacant property runs on market rent alone. Coverage is rent divided by PITIA. Lenders also weigh the appraised value, which sets LTV, plus your credit and reserves.
A few edge cases come up often:
- Vacant refinance: a vacant, rent-ready purchase is routine on most programs. A refinance is stricter on many, because lenders often want a lease or operating history on a property you already own. Some programs review vacant refinances case by case.
- Non-paying tenant: a lease alone does not prove the rent. Lenders want deposits that match it.
- Short-term rental: the appraisal documents monthly rent, not nightly rates, and each lender decides how short-term income counts. Short-term rental rules can vary by city, county, HOA, and property type, so investors should confirm local rules before relying on projected rental income.
- Coverage below 1.00x: select lenders in the network offer programs below 1.00 coverage, but leverage and terms adjust.
Clearing 1.00x is not the same as making money. Coverage ignores vacancy, repairs and management, so run those yourself.
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 CFPB’s rule text exempts credit extended primarily for a business purpose from the ability-to-repay requirement, even when a dwelling secures it. The OCC’s handbook on truth in lending lists the same exemption. The test turns on the primary purpose of the credit, so a home you live in does not become a DSCR candidate.
Rental owners with a weak or vacant property but large liquid assets have a second route. The asset depletion path accepts investment property at the leverage above. Compare it with DSCR on market rent.
Your Situation, Your Path
The reason your income stopped changes the paperwork, not the program logic.
Layoff or severance. The qualifier path documents no income at all, so the end date does not matter. The depletion path derives income from assets. If severance still counts as documented income, derived income can supplement it up to 45% debt-to-income.
Retirement. Retirement accounts count on both paths, at 90% (under 59½) or 100% on the qualifier path and 70% on the depletion path. You do not need to withdraw anything.
Business sale. Sale proceeds are excused from the depletion path’s seasoning rule. Lendmire’s piece Self-Employed Cash-Out Refinance Documentation When Income Looks Wrong covers borrowers who still document income through deposits. That is the bank statement program, which fits people with deposit history, not those living on a portfolio.
Inheritance or settlement. These funds get the same seasoning excusal on the depletion path.
On timing, apply before your balances shift, not after. On the depletion path, the oldest statement must be at least 120 days old at application, with the latest one within 45 days. Plan your account activity around that window.
Is Tennessee Different?
No. The program figures here do not change by state. Taxes, insurance and local prices are context for your budget, not program parameters. Lendmire’s consumer mortgage lending is licensed in 16 states, and Tennessee is one of them.
What Are the Risks and Trade-Offs?
An asset-based mortgage program trades paperwork for a different kind of exposure.
- Market drops: a falling portfolio shrinks both usable assets and the qualifying income derived from them. Securities at 80% fall further than cash.
- Spending the same assets: if you also plan to live off those balances, the depletion math may overstate what is really available.
- Retirement accounts: you keep them, but tax treatment varies; consult a qualified professional before relying on any plan.
- Tighter leverage on cash-out: the depletion path allows 60% on a cash-out refinance, versus 80% on a purchase or rate-and-term for a principal residence or second home.
- Pricing and flexibility: non-QM programs typically price and structure differently from standard loans. Compare the full terms, not one number.
This one is a genuine judgment call. If your assets already cover the loan, the qualifier path avoids income math entirely. If they cover only part of it, the depletion path’s haircuts and 60-month divisor decide whether the income clears.
What Are the Alternatives to Refinancing?
| Option | Best when | Trade-off |
|---|---|---|
| Asset qualifier | Assets cover the loan | Seasoning and credit apply |
| Asset depletion | Large assets, loan bigger | Haircuts; lower cash-out LTV |
| DSCR | Home is a rental | Investment property only |
| Bank statement | Deposits show income | Needs deposit history |
| HELOC | Short-term cash need | Needs documented income |
| Sell or rent out | Payment truly unaffordable | Gives up the home or goes landlord |
A HELOC (home equity line of credit) usually needs documented income too. Lendmire’s guide Home Equity Lines for Homeowners Deciding When a Cash-Out Refinance Wins covers that decision. Honestly, if the payment strains your budget even after qualifying, selling or renting out may make more sense than a refinance.
Before You Apply
Gather these first:
1. Two months of statements per qualifying account for the qualifier path, or statements at least 120 days old plus a recent one for the depletion path. 2. A source trail for any large recent deposit. 3. The title, the current payoff and proof of insurance. 4. For a rental: the lease, deposits that match it, and entity papers if the home is held in an LLC, subject to lender program eligibility.
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.
Frequently Asked Questions
Do I have to sell my investments to qualify?
No. You keep ownership and control of the assets. The lender counts them, after haircuts, and the qualifying income on the depletion path is calculated, not paid out to you.
Can I use my 401(k) or IRA?
Yes, on both paths, at different percentages. The qualifier path counts retirement balances at 90% under age 59½ and 100% at 59½ or older. The depletion path counts them at 70% at any age. All of it is subject to underwriting.
Does my credit still matter?
Yes. The qualifier path has a 600 minimum score, and the depletion path follows the lender’s matrix. A first-time investor on the depletion path needs 700. Housing history is reviewed on both.
Can crypto or a business account count?
Not directly. Neither is published as eligible.
Is a DSCR loan available for the home I live in?
No. DSCR is a business-purpose investor product for non-owner-occupied properties. For a home you live in, the asset qualifier and asset depletion paths are the relevant asset-based options.
Lendmire’s asset-based mortgage in Tennessee page presents the program for Tennessee 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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Informational only. Not a Loan Estimate, approval, or commitment to lend. Program availability and eligibility are subject to lender guidelines, credit approval, property review, and underwriting.
References
1. CFPB, Regulation Z § 1026.43
2. OCC Comptroller’s Handbook, Truth in Lending Act
This article is part of Lendmire’s asset-based mortgage program — full qualification details, guidelines, and scenarios live on the program page.
Related reading: Can You Buy a Second Home in Tennessee on Assets Instead of Income? · Can You Relocate to Montana and Buy a Home on Assets Before You Have Local Income? · How Retirees Moving to New Mexico Buy a Home on Assets
Guides: Asset-Based Mortgage in Tennessee
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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- Lendmire LLC · Firm NMLS# 2371349 · Verify firm licensure
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.