The Quick Read: Yes, you can usually buy in Colorado before you have a Colorado paycheck, because the asset qualifier path and the asset depletion path both qualify the loan on your documented savings and investments rather than on local employment, though every file is fully underwritten, statements must be seasoned, and a rental purchase follows different rules.
- Asset qualifier path: your eligible assets, after the credit percentages, must cover the entire loan. No employment or income is documented.
- Asset depletion path: eligible assets, after haircuts, are divided by 60 months into qualifying income. That income carries the payment through a debt-to-income test.
- Occupancy: both paths fit a principal residence or second home. Only the depletion path covers an investment property.
- No traditional personal-income documentation, pay stubs or employment verification. You still document the assets with statements, and the file is fully underwritten.
- Colorado is one of the 16 states where Lendmire’s consumer mortgage lending is licensed. The program figures do not change by state.
Two Different Questions Hiding in One Title
“Buy a home” can mean a place you will live in or a rental you will own from afar. The financing differs, so sort that out first.
If you will live in the home, or use it as a second home, an asset-based mortgage is the fit. Lendmire arranges these through select lenders in its wholesale network, subject to underwriting. Lendmire is the broker, not the lender.
If the Colorado property is a rental, a different loan type is usually the better tool. 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 rest of this piece focuses on qualifying on assets, because that is what the title asks.
One more route exists for people who do have a Colorado job lined up. Some employment-based programs accept a signed offer letter in place of pay stubs. The employer is typically re-verified before closing. Asset-based files skip that step, because no employment is documented at all.
How Does the Asset Qualifier Path Work?
The qualifier path asks one question: do your eligible assets cover the whole loan? If they do, you qualify on assets alone. Nothing about your job or income goes into the file.
Across the wholesale network Lendmire places files through, the qualifier path typically allows:
- Leverage up to 80% on a purchase and 75% on a refinance, on a principal residence or second home.
- Loans up to $4,000,000.
- A 600 minimum credit score.
- Brokerage, CD, money market and savings balances counted at 100%.
- 401(k) and IRA balances counted at 90% under age 59½ and 100% at 59½ or older. Terms depend on the lender’s guidelines, the property type, the leverage, and a full review of the credit profile.
Accounts combine. Here is an illustration. Say the loan is $800,000. 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% counts, so $200,000). That is $800,000 of usable assets against an $800,000 loan, so the file is reviewed on assets alone. The lender’s own calculation governs, subject to underwriting.
Reserves are not required at or below 75% loan-to-value. Above that, the lender sets them. Whether cash-out proceeds are allowed on this path is set by the lender and is not published, so plan a purchase or a simple refinance.
How Does the Asset Depletion Path Work?
The depletion path turns your portfolio into a monthly income on paper. You do not sell anything. The accounts stay where they are.
Eligible assets are counted after haircuts. Usable assets are then divided by 60 months. The result must carry the housing payment and your other debts through a debt-to-income test.
Run it for a retiree moving to Colorado. Say $1,500,000 sits in securities (80% counts, so $1,200,000) plus $300,000 in cash (100% counts, so $300,000). That is $1,500,000 usable. Divided by 60 months, it produces $25,000 of monthly qualifying income. That income then has to carry the housing payment and other debts. The lender’s calculation governs.
Typical depletion-path parameters on select programs:
- Leverage up to 80% on a purchase or rate-and-term refinance and 60% on a cash-out refinance, on a principal residence or second home.
- On an investment property, up to 65% on a purchase or rate-and-term refinance and 60% on a cash-out.
- Loans from $125,000 to $3,500,000.
- 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 depletion is your only income source.
- Credit follows the lender’s matrix. A first-time investor typically needs a 700 score.
Cash-out proceeds never count as qualifying assets. Asset-derived income can also supplement documented income, up to a 45% debt-to-income ratio. When it supplements, the minimum-assets rule is waived.
Which Assets Count, and at What Percentage?
Different assets count at different percentages, and the two paths use different tables. Never blend them. Here is how the balances typically count.
| Asset | Qualifier path | Depletion path |
|---|---|---|
| Brokerage / securities | 100% | 80% |
| Cash, savings, money market | 100% | 100% (cash accounts) |
| Certificates of deposit | 100% | 100% |
| 401(k) / IRA | 90% under 59½, 100% after | 70% at any age |
| Private stock | Not published | 75% |
| Real-estate equity | Not published | 60% |
Some assets do not count on the depletion path. These include 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, borrowed or pledged 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, with the lender reviewing the source. Do not assume they count at any percentage.
Selling investments to build that cash balance can create a tax bill. Tax treatment varies, so consult a qualified professional.
What Is Seasoning, and Why Does It Trip Up Movers?
Movers often sell a home, a business or a portfolio right before they relocate. Lenders want to see where cash came from, and that takes time.
On the qualifier path, funds need 60 days of seasoning, with two months of statements for each qualifying account. On the depletion path, statements must be at least 120 days old at application, plus the most recent statement dated within 45 days. Funds from the sale of a business, an inheritance or a legal settlement are excused from that depletion-path seasoning.
Proceeds from selling a house are not on that excused list. Expect the lender to review the source and ask for seasoning. Move the money into a regulated account early, and leave it alone.
The assets are documented on both paths. Statements go in the file. The lender reviews them, and the file is underwritten like any other mortgage.
Is the Legal Footing Solid?
Yes. Qualifying on assets is not a loophole. Under the federal ability-to-repay rule in Regulation Z, a lender may base its repayment decision on income or assets other than the home itself. The countable assets include savings, vested retirement funds, stocks, bonds and CDs.
The same rule requires lenders to verify what they rely on. Under 12 CFR 1026.43, that means reasonably reliable third-party records. In practice, that means bank and brokerage statements.
A principal residence or second home is a consumer mortgage, so consumer disclosures apply. Investment property on the depletion path is business-purpose. That cuts both ways. Counsel at Hunton warn that a lender wrongly treating a consumer-purpose loan as business-purpose faces penalties. So the property has to be a genuine investment, and you will sign occupancy and purpose certifications. Don’t blur the line to chase a better structure.
Buy First or Rent First?
Buy first if three things are true. Your qualifying assets clear the program on their own. You have enough cash left after the purchase to live, move and absorb surprises. And you know the area well enough to commit.
Rent first if you are choosing between mountain, Front Range and western-slope living. Colorado towns differ a lot. A sight-unseen purchase is the real risk here, not the financing.
| Factor | Buy first on assets | Rent first |
|---|---|---|
| Qualifying | Statements and seasoning drive it | Landlord screens income or deposit |
| Cash stack | Down payment, closing costs, moving | Deposit, moving, then later purchase |
| Flexibility | Low once you close | High |
| Area knowledge | Needs to be solid | Builds with time |
This one is a genuine toss-up for retirees with a clear destination. Households still choosing a town should lean toward renting first.
The Cash Stack Is the Real Gate
Here is the catch most movers miss. Your assets do three jobs at once: they qualify the loan, fund the down payment and closing costs, and pay for the move and living costs.
On the qualifier path, eligible assets must equal or exceed the whole loan. If a big share of your balances goes to the down payment, you may fall short of the loan amount. On the depletion path, the minimum-assets rule and the income test both run off the same pool. Ask your loan officer whether the dollars counted for qualifying can also be used for cash to close. Treatment can differ by lender, so confirm before you make an offer.
Plan the stack before you tour a single house.
Colorado Costs That Touch the Math
Colorado costs belong in your budget but not in the program figures. Property taxes, homeowners insurance (hail exposure is a real consideration along the Front Range), and any HOA or special-district charges all feed the monthly payment. On the depletion path, they directly affect the debt-to-income test.
If you are eyeing a resort-area home as an investment, 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.
What If You Take a Colorado Job Later?
Nothing breaks, as long as the loan was built on assets. If a job starts after closing, the file stands as underwritten. If it starts before closing, tell your loan officer. Income that is documented can supplement asset-derived income on the depletion path, up to a 45% debt-to-income ratio, and the minimum-assets rule is waived in that case.
If you never take a Colorado job, the file doesn’t need one.
Who This Is Not For
Skip this path if you have a salary and little cash. A standard income-based mortgage fits you better. Skip it if your wealth sits mostly in crypto, collectibles or business accounts you do not fully own. Those need conversion and review first.
It also isn’t the loan for a borrower with income documented through bank deposits, such as a self-employed owner. A bank statement program is built for that. For a pure rental purchase, business-purpose rental financing is the better fit.
Credit still matters. The qualifier path has a 600 minimum score. Housing history is 0x30x12, with one 30-day late in the last twelve months considered case by case. Multiple bankruptcies are not eligible. On the depletion path, a housing event needs 4 years of seasoning.
Key Terms Defined
Asset qualifier path: a way to qualify when eligible assets, after credit percentages, equal or exceed the whole loan amount.
Asset depletion path: a way to turn eligible assets into monthly qualifying income by dividing usable assets by 60 months.
Haircut: the share of an account’s balance a lender subtracts because the asset is less liquid or more volatile.
Seasoning: how long funds must sit in an account before the lender counts them.
Loan-to-value (LTV): the loan amount divided by the property’s value.
Business-purpose loan: a loan made primarily to buy or hold an investment property rather than a home you live in.
Document Checklist for an Out-of-State Buyer
- Two months of statements for each qualifying account on the qualifier path.
- Statements at least 120 days old plus one within 45 days on the depletion path.
- A source trail for recently moved funds.
- Credit authorization and ID.
- The purchase contract for the Colorado home.
- Occupancy and purpose certifications, depending on the property.
Keep your accounts in the same names, and avoid moving money around mid-file.
Frequently Asked Questions
Can I buy in Colorado before I physically move?
Yes. Neither path documents employment, so where you currently live does not block the file. The occupancy you declare, such as principal residence or second home, must be true, and the lender will underwrite on that basis. Plan the move so your stated intent matches reality.
Do retirement accounts count?
Yes, at a discount. On the qualifier path, a 401(k) or IRA counts at 90% under age 59½ and 100% at 59½ or older. On the depletion path, retirement accounts count at 70% at any age. You are not withdrawing anything. The lender simply counts the balance.
Do I have to sell my investments?
No. Neither path requires liquidation of the accounts that qualify you. You may still need cash for the down payment and closing costs, so some selling can happen, which is why the cash stack matters.
Can I use this for a rental in Colorado?
Only on the depletion path, where investment property is typically capped at 65% on a purchase or rate-and-term refinance and 60% on a cash-out. For most rental buyers, a loan built around the property’s rent is the more natural fit.
Does this mean no one looks at my file?
No. Every file is fully underwritten, and the assets are documented with statements. What you skip is traditional personal-income documentation, pay stubs and employment verification. Approval depends on lender guidelines, credit, and property review.
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 programs based on your statements, the property, credit profile, leverage, and your goals.
Colorado rewards the buyer who picks the town first and the loan second.
Lendmire’s asset-based mortgage in Colorado page presents the program for Colorado 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.
Investors who want the broader program framework can review how DSCR loans work.
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References
1. CFPB, Regulation Z ability-to-repay, 12 CFR 1026.43
3. Hunton, Beware of Business Purpose
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 Much Does a California Retiree Need in Assets to Buy a Home Without Income? · How Snowbirds Get a Mortgage on a Winter Home Without Income
Guides: Asset-Based Mortgage in Colorado
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.