The Quick Read: Yes, on a principal residence or second home, a borrower can refinance on assets instead of a paycheck, through select programs and subject to underwriting. Either the assets cover the entire loan, or they are converted into a monthly qualifying income. Lendmire arranges this through select lenders in its network. Programs change and every file is underwritten individually.
- Assets cover the loan: on the asset qualifier path, eligible assets must equal or exceed the whole loan, and no employment or income is documented.
- Assets become income: on the asset depletion path, usable assets divided by 60 months form the qualifying income.
- Assets are still documented: this is no paycheck, not no paperwork. Statements are required on both paths.
- Credit still matters: the qualifier path publishes a 600 minimum score. The depletion path follows the lender’s matrix.
- Ohio is in the footprint: consumer lending is licensed in 16 states, and Ohio is one of them.
Why Can a Lender Approve a Loan Without a Paycheck?
A lender can approve it because repayment ability can rest on assets as well as wages. The federal ability-to-repay rule, 12 CFR 1026.43, allows a lender to base its decision on income, on assets other than the home securing the loan, or on both.
That is the legal footing. The practical side is simple. The lender has to verify whatever it relies on. Cornell’s Legal Information Institute reproduces the rule’s requirement for third-party records. A lender relying on assets therefore wants statements. It does not need pay stubs, traditional personal-income documentation or employment verification for the qualifier path.
Say it plainly: “no income documented” never means “no documentation.” Every file is fully underwritten. The assets are the evidence.
The Two Ways to Qualify on Assets
The two paths are different tests, and a borrower is on one at a time. The qualifier path asks whether assets cover the loan. The depletion path asks whether assets, turned into income, carry the payment.
| Factor | Asset qualifier | Asset depletion |
|---|---|---|
| What is tested | Eligible assets cover the whole loan | Assets ÷ 60 months = income |
| Income documented | None | Derived income, run through DTI |
| Purchase leverage | Up to 80% LTV | Up to 80% (primary/second home) |
| Refinance leverage | Up to 75% LTV | 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 |
All figures are ceilings, not offers, and are subject to underwriting. On the qualifier path, whether cash-out is allowed, and at what leverage, is set by the lender and is not published. Don’t assume it.
Which Assets Count on Each Path?
Cash and cash-like accounts count in full on both paths. Retirement money and securities get cut back, and the cut differs by path. Blending the two tables is a common mistake on these files.
| Asset | Qualifier path | Depletion path |
|---|---|---|
| Brokerage | 100% | Securities 80% |
| CDs, money market, savings | 100% | Cash and CDs 100% |
| 401(k) / IRA | 90% under 59½, 100% at 59½+ | 70% at any age |
| Private stock | Not published | 75% |
| Real-estate equity | Not published | 60% |
Not eligible 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.
Crypto, 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.
What the Math Looks Like
Run an illustrative qualifier file. A borrower seeks an $800,000 loan. Brokerage accounts hold $330,000 (100% counts, so $330,000). A 401(k) holds $300,000 and the borrower is under 59½ (90% counts, so $270,000). Savings hold $200,000 (100%, so $200,000). Usable assets total $800,000, which matches the loan. The file can qualify on assets alone, subject to underwriting.
Now a depletion file. Securities of $1,500,000 count at 80%, or $1,200,000. Cash of $300,000 counts at 100%. Usable assets are $1,500,000. Divided by 60 months, that is $25,000 of monthly qualifying income. That income then has to carry the housing payment and other debts through the debt-to-income test.
The lender’s own calculation governs both. These are illustrations only.
Seasoning and Documents
Money has to sit before it counts. The rules differ by path.
1. Qualifier path: assets are seasoned 60 days, with two months of statements for every qualifying account.
2. Depletion path: statements must be at least 120 days old at application, plus the most recent statement within 45 days.
3. Excused funds: on the depletion path, sale-of-business, inheritance and legal-settlement funds are excused from that seasoning.
4. Source of funds: large transfers get questions. Keep a paper trail for any deposit that moves between accounts.
Reserves are simple on the qualifier path. None are required at or below 75% loan-to-value. Above that, the lender sets them. The depletion path has no published reserve months.
Leverage When You Cash Out
On the depletion path, a principal residence or second home goes up to 80% on a rate-and-term refinance and 60% on a cash-out. Cash-out proceeds never count as qualifying assets. The borrower can’t borrow money and then use it to qualify for the same loan.
For a rental, the picture changes. Asset-based qualification on an investment property runs only through the depletion path, at up to 65% on a rate-and-term refinance and 60% on a cash-out. First-time investors on that path need a 700 score. Such a loan is business-purpose, which means it is reviewed differently from a standard owner-occupied mortgage.
If the property is a rental and the borrower prefers to qualify on the property’s own rent, that is a different product.
Depletion Path Minimums and the 45% Ceiling
The depletion path sets a floor on how much a borrower must hold. Qualified assets must be at least the lesser of $1,000,000 or 1.25 times the loan balance. When depletion is the only income source, liquid assets can never fall below $250,000.
There is a flexible use too. Asset-derived income can supplement documented income, up to a 45% debt-to-income ratio. When it supplements, the minimum-assets rule is waived. A retiree with a modest pension and a large portfolio often fits here.
Credit and Housing History
Credit still counts. The qualifier path publishes a 600 minimum score. The depletion path follows the lender’s score and loan-amount matrix, so the number moves with the file.
Housing history is typically 0x30x12. One 30-day late in the last twelve months is considered case by case. Multiple bankruptcies are not eligible. A housing event on the depletion path needs 4 years of seasoning. A credit pull is part of the file. Approval is never promised.
The Risks Nobody Leads With
Qualifying on assets does not mean the loan is easy to carry. The depletion method is a qualifying convention, not a withdrawal plan, so the borrower doesn’t have to spend the assets down. But the payment still comes due.
Stress the file yourself. A market drop shrinks a portfolio just as the payment stays fixed. A cash-out refinance raises the balance. Securities count at 80% and retirement at 70% on the depletion path, so a falling market trims usable assets before a lender ever sees them. Ask what happens to the plan if the portfolio loses a quarter of its value.
Also remember the cost. Non-QM financing generally carries tighter terms than a conventional loan. Weigh that against the cash raised and any existing low payment you would give up. Sometimes the right move is to wait, modify the current loan or sell.
Ohio Specifics
Ohio is one of the 16 states where Lendmire’s consumer lending is licensed. The program figures do not change by state. Taxes, insurance and local prices are context for your budget, not program parameters.
Ohio borrowers should check how the home is titled. A trust-held home needs the lender’s review. Settle that before the file goes in.
For borrowers whose Ohio property is a rental, the depletion path is the asset-based route. Lendmire’s asset-based mortgage programs cover both paths.
Consumer mortgage disclosures apply on the owner-occupied loan, so expect the standard disclosure package.
Who This Fits
Think retirees, sellers of a business, recipients of an inheritance or settlement, early-retired professionals and households living on a portfolio. Balances are large. Documented income is not.
Three quick screens:
- Do you hold seasoned, statement-backed assets that sit in eligible accounts?
- Is the home your residence or second home, or a rental you’d run on the depletion path?
- Can the plan survive a market drop?
If the answer to the last one is no, look at other options first.
Key Terms Defined
Asset qualifier: a path where eligible assets equal or exceed the whole loan, and no income is documented.
Asset depletion: a path that divides usable assets by 60 months to create monthly qualifying income.
Seasoning: the time funds must sit in an account before they count.
Haircut: the share of an asset’s balance that a lender discounts.
Debt-to-income (DTI): monthly debts divided by monthly qualifying income.
Frequently Asked Questions
Can I refinance right after losing my job?
Often yes, because the asset paths don’t depend on employment. What matters is the seasoned, documented assets, your credit and the property. Qualification is subject to underwriting.
Do I have to sell investments or spend my assets down?
No. The depletion method is a way to calculate qualifying income. It is not a requirement to withdraw anything. Borrowers keep their portfolios invested.
Does my age or retirement status count against me?
Not as a factor on its own. On the qualifier path, a 401(k) or IRA counts at 90% under 59½ and 100% at 59½ or older. On the depletion path, retirement accounts count at 70% at any age.
Can I use joint accounts or my spouse’s assets?
Possibly, depending on ownership and the lender’s review. Accounts combine on the qualifier path. Each owner’s name and access should be clear on the statements.
Do I still need traditional personal-income documentation or pay stubs?
No traditional personal-income documentation, pay stubs or employment verification are needed on the qualifier path. The assets are documented with statements instead.
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. Reach the team at 828-256-2183.
Tax treatment varies; consult a qualified professional.
About Lendmire
Lendmire — NMLS# 2371349 — is a mortgage broker that arranges bank statement, P&L-only, 1099-only and asset-based home financing in 16 states through wholesale lenders, on primary residences, second homes and investment properties. Every option is subject to the lender’s guidelines and full underwriting. Scotsman Guide named Lendmire a Top Mortgage Workplace in both 2025 and 2026.
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References
2. Cornell LII – 12 CFR 1026.43
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 Relocate to Michigan and Buy a Home on Assets Before You Have Local Income? · How Snowbirds Get a Mortgage on a Winter Home Without Income · Can You Buy a Second Home in Georgia on Assets Instead of Income?
Guides: Asset-Based Mortgage in Ohio
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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Disclosures. The information presented in this article is general market commentary, not financial, legal, or tax advice. Lendmire is a mortgage brokerage (NMLS# 2371349) — not a direct lender or depository institution — and loan placement is subject to lender underwriting. Nothing in this content represents a commitment to lend. Loan terms, pricing, and program availability vary based on borrower qualifications, property characteristics, and state of subject property, and are subject to change at any time. Lendmire complies with Equal Housing Opportunity requirements. Consumer access: nmlsconsumeraccess.org.