The Quick Read: Yes, you can buy in Alabama before any local paycheck exists, as long as your documented assets either cover the whole loan or convert into qualifying income. Either way, the file rests on bank and brokerage statements, not on pay stubs, traditional personal-income documentation or employment verification. Every file is still fully underwritten.
- Two paths exist. On the asset qualifier path, eligible assets must equal or exceed the entire loan. On the asset depletion path, usable assets divided by 60 months become monthly qualifying income.
- You are on one path at a time. The figures for each path never mix.
- Statements carry the file. The qualifier path wants 60 days of seasoning and two months of statements per account. The depletion path wants statements at least 120 days old plus one within 45 days.
- Occupancy matters. Both paths cover a principal residence or second home. Only the depletion path covers an investment property.
- Alabama is in the footprint. Lendmire’s consumer mortgage lending is licensed in 16 states, and Alabama is one of them. Everything here is subject to underwriting and available only through select programs.
Why Does a Lender Care About Income at All?
A lender wants proof you can repay the loan. For most buyers, that proof is a paycheck. For you, it can be a balance sheet.
A home you plan to live in is a consumer loan. The lender must be able to show that you can repay it. Employment is the usual evidence, but it is not the only kind.
Assets can make the same showing. A retiree with a large portfolio, someone who just sold a business, or a household living on an inheritance has real repayment capacity. A pay stub just does not capture it.
Moving to Alabama does not change this logic. A lender does not require an Alabama employer, an Alabama address history or a local income record. It requires documented assets that fit one of the two paths below.
The Two Ways Assets Can Qualify You
Across the wholesale network, asset-based loans work in one of two ways. Either the assets cover the entire loan, or the assets are converted into a monthly income figure. A borrower is reviewed on one path at a time. Lendmire’s asset-based mortgage programs place files on either path, depending on which fits your balance sheet.
| Factor | Asset Qualifier | Asset Depletion |
|---|---|---|
| How you qualify | Eligible assets cover the whole loan | Usable assets ÷ 60 months = income |
| Income documented | None | Derived income, run through DTI |
| Purchase leverage | Up to 80% | Up to 80% primary or second home |
| Property types | Primary home, second home | Also investment property |
| Loan amounts | Up to $4,000,000 | $125,000 to $3,500,000 |
| Statement seasoning | 60 days, two months each | 120 days old, plus one within 45 days |
DTI stands for debt-to-income ratio. It compares your monthly debts, including the new housing payment, with your monthly income.
On the qualifier path, the lender does not build an income figure at all. It adds up your eligible assets after the credit percentages and checks that the total equals or exceeds the entire loan amount. Leverage runs up to 80% on a purchase and up to 75% on a refinance of a primary residence or second home.
On the depletion path, the lender applies haircuts to your assets and divides the total by 60 months. That number becomes monthly qualifying income. It then has to carry the full housing payment and your other debts through the debt-to-income test.
Which one fits? If your assets are large relative to the loan, the qualifier path is cleaner. If the assets are big but not big enough to cover the loan outright, the depletion path may work, because it only needs the derived income to support the payment.
What Counts as an Asset, and How Much of It?
Not every dollar counts at face value. Each path applies its own percentages, and they are not interchangeable.
Asset qualifier path: share of the balance that counts.
| Account type | Counts at |
|---|---|
| Brokerage accounts | 100% |
| Certificates of deposit | 100% |
| Money market and savings | 100% |
| 401(k) and IRA, under age 59½ | 90% |
| 401(k) and IRA, age 59½ or older | 100% |
Accounts combine, so you can stack several types to reach the loan amount.
Asset depletion path: share of the balance that counts.
| Account type | Counts at |
|---|---|
| Cash accounts | 100% |
| Certificates of deposit | 100% |
| Securities | 80% |
| Private stock | Not eligible |
| Retirement accounts, any age | 70% |
| Real-estate equity | 60% |
Several things do not count on the depletion path: custodial accounts, deferred compensation, escrow accounts, foreign funds, cash on hand, privately held stock, 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. The lender then reviews the source of those funds. Do not plan around a percentage for any of them.
Market surveys report that published wholesale guidelines for asset depletion commonly divide by 60 or 84 months, according to a practitioner explainer on asset depletion. The network programs Lendmire places files with use 60 months, and that is the figure used here.
Worked Examples for an Alabama Move
These examples are illustrative. The lender’s own calculation governs, and every file is subject to underwriting.
Example one: a mover with mixed accounts, on the asset qualifier path. Picture a borrower relocating to Alabama who needs an $800,000 loan on a primary residence. Her accounts hold the following.
- $330,000 in brokerage accounts, which count at 100% for $330,000.
- $300,000 in a 401(k), which counts at 90% for $270,000 because she is under 59½.
- $200,000 in savings, which counts at 100% for $200,000.
Usable assets total $800,000. That equals the loan amount, so the assets alone cover the loan and no income is documented. Her down payment and closing costs come out of this same pool, so in a real file she would need balances above the loan amount, or additional funds held separately, to cover them. The lender’s own calculation governs how those funds are treated. She still needs the credit profile the program requires and the 60 days of seasoning with two months of statements per account. Her 401(k) counted for less than its balance, which is why the haircut matters.
Example two: a business seller between jobs, on the asset depletion path. Say you sold a company, have no paycheck and are moving to Alabama before deciding what comes next. You hold $1,500,000 in securities and $300,000 in cash.
- Securities count at 80%, which is $1,200,000.
- Cash counts at 100%, which is $300,000.
Usable assets come to $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 your other debts through the debt-to-income test. Sale-of-business funds are excused from the 120-day statement seasoning on this path, though the lender still reviews where the money came from.
Notice that the second borrower holds more total assets than the first. The qualifier path asks whether assets cover the loan. The depletion path asks whether derived income supports the payment. The right path depends on the loan size and your debts, not on which path sounds better.
Can You Close Before You Have Local Income?
Yes, because neither path asks for local income. The qualifier path documents no employment or income at all. The depletion path builds income from assets and does not need a job history.
Your current address can still be out of state. Moving to Alabama is not a qualification event. The lender cares about your assets, your credit, the property and the loan structure.
Here is what that looks like in practice.
- No job yet. You can qualify on either path, as long as the assets and credit fit.
- A job offer or remote job. On the depletion path, asset-derived income may supplement documented income up to a 45% debt-to-income ratio. When it supplements, the minimum-assets rule is waived. How a lender treats a future or out-of-state job varies by program, so raise it early.
- A home you still own elsewhere. An existing mortgage matters more on the depletion path, because your debts run through the DTI test. The qualifier path documents no income and no debt ratio, and the lender’s ability-to-repay review rests on the assets.
The credit side stays strict. The qualifier path has a 600 minimum score. The depletion path follows the lender’s matrix. A first-time investor on the depletion path needs a 700. Housing history is 0x30x12, and one 30-day late in the last twelve months is considered case by case. Multiple bankruptcies are not eligible. On the depletion path, a housing event needs 4 years of seasoning.
Large deposits deserve a plan. If funds came from the sale of a prior home, a transfer between accounts or an inheritance, expect to document the source. Gifts, foreign funds and borrowed money are where files stall. Keep every statement, closing record and transfer confirmation.
Primary Home, Second Home or Rental?
Occupancy decides which path is open. On a principal residence or second home, both paths work. On an investment property, only the asset depletion path applies, and the loan is business-purpose.
The leverage differs by occupancy on the depletion path.
| Property use | Purchase or rate-and-term | Cash-out |
|---|---|---|
| Principal residence or second home | Up to 80% | Up to 60% |
| Investment property | Up to 65% | Up to 60% |
Cash-out proceeds never count as qualifying assets on the depletion path. The qualifier path’s cash-out terms are set by the lender and are not published, so do not plan around them.
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 Federal Register preamble to the ability-to-repay rule says investment-purpose loans are treated as business-purpose loans. The CFPB’s Truth in Lending reference lists business-purpose credit among the transactions exempt from Regulation Z.
That is why a DSCR loan is not a primary-residence product. It qualifies primarily on property-level rental income covering the payment, subject to lender guidelines. If you want to live in the Alabama home, DSCR is the wrong tool, and an asset-based path is the right one.
Want a rental and have the assets? You then have a real choice. You can use the depletion path with your own assets at the 65% purchase leverage, or a DSCR structure that looks to the rent. They solve different problems, and a broker can compare them against your statements.
Down Payment, Closing Funds and the Double-Counting Trap
The money you wire at closing leaves your account, so it cannot also count as qualifying assets. This is the trap that catches the most relocators.
Take the qualifier path. Eligible assets after credit percentages must equal or exceed the entire loan. Your down payment, closing costs and moving cash all come out of the same pool. If you count a $200,000 savings balance toward qualifying and then spend $100,000 of it at closing, the lender sees only what remains. The lender’s own calculation governs here, so share your planned closing funds up front.
Reserves work differently on each path.
- Qualifier path. None are required at or below 75% loan-to-value. Above that, the lender sets them.
- Depletion path. No reserve months are published.
On the depletion path, you also have minimums. Qualified assets must be at least the lesser of $1,000,000 or 1.25 times the loan balance. They can never be below $250,000 liquid when asset depletion is your only income source. If asset-derived income supplements documented income, the minimum-assets rule is waived.
Buying in Alabama From Out of State
You can do most of this remotely. Many buyers tour by video, make one trip to see finalists in person and handle paperwork digitally. Plan on a buyer-agency agreement with your agent before they show homes. Alabama closings commonly involve a closing attorney, so ask your agent who handles yours.
Seasoning of your funds does the real work before you move. Statements must age on the schedule above, and your lender needs your account balances to be stable. Selling a portfolio position the week before applying can reset the clock.
Moving also raises state tax-residency questions, but tax treatment varies; consult a qualified professional.
Asset-Based Loan, Cash or Another Route?
The honest answer is that it depends on how much cash you hold, how long you want to stay invested and whether income is coming. Here is how the routes compare.
| Route | Best for | Main tradeoff |
|---|---|---|
| Asset qualifier | Assets that cover the whole loan | Balances must be seasoned |
| Asset depletion | Large assets, loan larger than assets alone | Haircuts and a DTI test |
| Paying cash | Buyers who want no loan | Liquidity and portfolio drawn down |
| Bank statement program | Borrowers who document income with deposits | Needs a real income history |
| DSCR loan | A rental purchase, not a home you occupy | Investment property only |
| Conventional with a job offer | Moderate savings plus steady pay | Needs documented employment |
The cash-versus-financing question is the real decision for a mover. Paying cash ends the loan question but drains the portfolio you may need for income. Financing keeps your investments working and your liquidity intact. A strong file can do either, so the choice is about your plans, not your eligibility.
An asset-based mortgage is probably not for you in these cases.
- You have moderate savings and a job offer that starts soon. A conventional file may be a better fit.
- Your wealth is mostly in assets the program does not accept, such as stock options, cryptocurrency you have not converted, or foreign accounts.
- Your credit has a recent housing event or multiple bankruptcies.
- Your assets would not cover the loan or the depletion minimums.
Your Move Sequence
Order matters more than speed. Work through these steps in sequence.
1. Gather statements. Pull two months of statements for every account you plan to use.
2. Check seasoning. Confirm each balance has aged long enough for its path, and avoid large unexplained transfers.
3. Pick the path. Compare your usable assets with the loan amount you want.
4. Get a program review. A broker compares your statements against several programs in the network.
5. Tour and choose a property. Use video tours and one trip if needed.
6. Sign a contract. Keep earnest money and closing funds in accounts you have already documented.
7. Complete underwriting. The lender reviews credit, assets, appraisal, title and insurance.
8. Close and move in. Update your address after the loan funds.
Because the loan on a primary residence or second home is a consumer mortgage, standard consumer disclosures apply on those files.
Key Terms Defined
Asset qualifier path: a program route where eligible assets, after the credit percentages, must equal or exceed the entire loan amount.
Asset depletion path: a route where usable assets divided by 60 months become monthly qualifying income.
Haircut: the share of an asset’s balance that does not count toward qualifying.
Seasoning: the time funds must sit in an account before a lender treats them as yours.
Debt-to-income ratio (DTI): your monthly debts, including the new housing payment, compared with your monthly income.
Business-purpose loan: a loan made primarily for business or investment use rather than for a home you live in.
Frequently Asked Questions
Can I buy a home in Alabama with no job?
Yes, if your assets fit one of the two paths. The qualifier path documents no employment or income. The depletion path builds income from your assets. Credit and the property still have to meet the program’s requirements, and every file is underwritten individually.
Do I have to sell my investments to qualify?
No. Your balances count as they sit in the account, after the credit percentages. Selling can reset seasoning, so avoid moving large sums right before applying. Keep statements for any transfers.
What if I want to buy a rental instead of living there?
Only the asset depletion path covers an investment property, at up to 65% on a purchase or rate-and-term refinance and 60% on a cash-out. A DSCR loan is the other route, and it qualifies primarily on property-level rental income covering the payment, subject to lender guidelines. Which fits better depends on your assets and the property.
Does cryptocurrency count toward qualifying?
Not as published. Cryptocurrency, precious metals and collectibles are not listed as eligible on either path. The documented route is to convert them into a seasoned cash balance in a regulated account, with the source reviewed by the lender.
Is this a no-documentation loan?
No. Your assets are documented with statements, and the file is fully underwritten. What you skip is traditional personal-income documentation, pay stubs and employment verification.
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. Programs change, and nothing here is a commitment to lend.
Lendmire’s asset-based mortgage in Alabama page presents the program for Alabama borrowers.
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
1. Statementsready: Asset Depletion Loan explainer
2. Federal Register: Ability-to-Repay and Qualified Mortgage Standards
3. CFPB: Truth in Lending Act reference
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 California on Assets Instead of Income? · Can You Buy a Home on Savings While Your Business Is Still Ramping Up? · Can You Relocate to Virginia and Buy a Home on Assets Before You Have Local Income?
Guides: Asset-Based Mortgage in Alabama
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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Important disclosures. Lendmire (NMLS# 2371349) is a licensed mortgage brokerage. Lendmire is not a direct lender, depository institution, or financial advisor. All loan inquiries are subject to lender underwriting; this article does not constitute a commitment to lend. Rates, terms, and program guidelines are subject to change without notice and vary by borrower profile, property type, and state. Information in this article is general in nature and is not financial, legal, or tax advice. Equal Housing Opportunity. NMLS Consumer Access: nmlsconsumeraccess.org.