The Quick Read: Yes, through select programs, a borrower moving to Michigan can buy a primary residence on eligible assets before any Michigan paycheck exists. Either the assets cover the whole loan, or they are converted into a monthly qualifying income. The assets are fully documented, and the loan is subject to underwriting.
- Asset qualifier path: eligible assets must equal or exceed the entire loan amount, and no employment or income is documented.
- Asset depletion path: usable assets divided by 60 months become qualifying income that runs through the debt-to-income test.
- Leverage: the asset qualifier path allows up to 80% on a purchase. The asset depletion path allows up to 80% on a principal residence purchase.
- Documentation: statements are required on both paths. “No income documentation” never means “no documentation.”
- Rental purchase: a Michigan rental is a different product, and DSCR is the tool there.
Who Is This For?
The reader is cash-heavy and income-light. Think of a retiree, someone who sold a business, an heir, or a household living off a portfolio. Balances are large. Documented income is not.
A move makes this worse. You leave one income. The next one has not started, or it is remote, or it never existed because the portfolio is the income. A standard file wants pay stubs and an employer. You may have neither on closing day.
The question is not “no local income, no loan.” The real questions are whether you will live in the home, and which documentation path fits that choice. Consumer lending through Lendmire’s network is licensed in Michigan, so this is written for a Michigan borrower. The program figures do not change by state.
How Do Assets Replace Income on a Primary Residence?
Two paths exist. A borrower is qualified on one path at a time, and the two tables never blend.
Asset qualifier path. The lender counts eligible assets after the credit percentages below. If the total equals or exceeds the entire loan amount, the loan is reviewed on assets alone. No employment or income is documented. The lender’s ability-to-repay review rests on the assets.
Asset depletion path. The lender applies haircuts to eligible assets, then divides the usable total by 60 months. The result is imputed monthly income. That income must carry the full housing payment and other debts through the debt-to-income test.
Nothing is sold or pledged on either path. Depletion is a qualifying calculation, not a withdrawal plan. Across the wholesale network, this is the point borrowers misread most often.
Which Assets Count, and How Much?
On the qualifier path, most liquid accounts count in full. Retirement balances count at a reduced share until age 59½. On the depletion path, haircuts are heavier.
| 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% at 59½+ | 70% at any age |
| Private stock | Not published | 75% |
| Real-estate equity | Not published | 60% |
These are shares of the balance that counts, through select programs and subject to underwriting.
Several things do not count 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.
Cryptocurrency, precious metals, collectibles, and pledged or borrowed funds are not published as eligible on either path. Business accounts count only for the borrower’s ownership share. The documented route for the rest is converting them to a seasoned cash balance in a regulated account, with the lender reviewing the source.
What Does a Worked Example Look Like?
The arithmetic below is illustrative. The lender’s own calculation governs.
Qualifier example. Picture a borrower relocating with an $800,000 loan request. She holds $330,000 in brokerage accounts (100% counts, so $330,000). She holds $300,000 in a 401(k) and is under 59½ (90% counts, so $270,000). She holds $200,000 in savings (100% counts, so $200,000). Usable assets total $800,000. That equals the loan, so the file is reviewed on assets alone, subject to underwriting.
Depletion example. Say a retired couple holds $1,500,000 in securities (80% counts, so $1,200,000) and $300,000 in cash (100%, so $300,000). Usable assets are $1,500,000. Divided by 60 months, that is $25,000 of monthly qualifying income. That income then carries the housing payment and other debts through the debt-to-income test.
The depletion path adds minimums. Qualified assets must be at least the lesser of $1,000,000 or 1.25 times the loan balance. They must never fall below $250,000 liquid when depletion is the only income source. Asset-derived income may also supplement documented income up to a 45% debt-to-income ratio, and in that case the minimum-assets rule is waived.
What Leverage and Loan Sizes Are Available?
Leverage differs by path and by what you are buying.
- Qualifier path: up to 80% on a purchase and 75% on a refinance, for a principal residence or second home. Loans reach $4,000,000. Cash-out terms on this path are set by the lender and are not published.
- Depletion path, principal residence or second home: up to 80% on a purchase or rate-and-term refinance, and 60% on a cash-out refinance.
- Depletion path, investment property: up to 65% on a purchase or rate-and-term refinance, and 60% on a cash-out refinance.
- Depletion loan sizes: $125,000 to $3,500,000.
Cash-out proceeds never count as qualifying assets. These figures are ceilings, never offers.
What Credit and Seasoning Do Lenders Want?
Credit starts at a 600 minimum on the qualifier path. The depletion path follows the lender’s matrix, and a first-time investor there needs 700. Housing history is 0x30x12. One 30-day late in the last twelve months is considered case by case. Multiple bankruptcies are not eligible. A housing event needs four years of seasoning on the depletion path. Approval is never promised.
Seasoning is where relocators get caught.
- Qualifier path: 60 days of seasoning, with two months of statements for each qualifying account.
- Depletion path: statements at least 120 days old at application, plus the most recent statement within 45 days. Sale-of-business, inheritance, and legal-settlement funds are excused from that seasoning.
Moving money between accounts right before applying creates paper-trail questions. Keep the trail clean. Leave seasoned balances where they are.
What About a Job Offer or Remote Income?
On the qualifier path, income is not documented at all, so an offer letter adds nothing. On the depletion path, documented income can supplement asset-derived income up to the 45% debt-to-income ratio, which can help.
A job offer letter is a different concept. It belongs to conventional primary-residence underwriting under agency rules. It is not part of this program, and it does nothing for a rental purchase.
What If the Michigan Home Will Be a Rental?
Then this article’s paths are the wrong fit, and DSCR is the right one. 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 commentary on Regulation Z treats credit to acquire non-owner-occupied rental property as business-purpose credit. The federal regulation text shows that business-purpose credit is exempt from the consumer rules.
A DSCR file qualifies primarily on property-level rental income covering the payment, subject to lender guidelines. Credit and documented reserves still matter. Programs below 1.00 coverage are available through select lenders in the network, but leverage and terms adjust. Here is the Lendmire complete DSCR loans guide for the mechanics.
Occupancy is the line that cannot be blurred. If you expect to occupy the property for more than 14 days in the coming year, the CFPB commentary says it cannot be treated as non-owner-occupied. A part-year home is not a rental.
Which Product Fits Which Situation?
| Situation | Fits |
|---|---|
| Assets cover the whole loan; moving in | Asset qualifier path |
| Assets large, income thin; moving in | Asset depletion path |
| Deposits show income, not assets | Bank statement program |
| Buying to rent to tenants | DSCR loan |
The bank statement program is for borrowers who document income with deposits. Self-employed relocators who fit that profile can read Lendmire’s piece Can You Buy a Home on 1099-NEC Income From One or Multiple Clients?.
Key Terms Defined
Asset qualifier: a path where eligible assets, after credit percentages, equal or exceed the entire loan.
Asset depletion: a path that divides usable assets by 60 months to create qualifying income.
Haircut: the share of an account’s balance the lender does not count.
Seasoning: the length of time funds have sat in an account before application.
Debt-to-income: monthly debts, including the new housing payment, measured against qualifying income.
Where Does the Process Break Down?
These are the failure points on relocation files.
1. Unseasoned funds. Assets parked last month fail the 60-day or 120-day test.
2. Wrong asset class. Crypto, collectibles, and foreign funds do not count as-is.
3. Retirement math. A 401(k) counts at 90% under 59½ on the qualifier path. It counts at 70% at any age on the depletion path.
4. Missing statements. The qualifier path wants two months for every account.
5. Occupancy confusion. A home you will use personally is not a rental.
Lendmire arranges these loans as a broker through select lenders in its wholesale network. Qualification is subject to underwriting, and the loan is not a commitment to lend. Tax treatment varies; consult a qualified professional.
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 need a Michigan job to buy a primary residence on assets?
No. On the qualifier path, no employment or income is documented, and the assets must cover the entire loan. On the depletion path, assets become imputed income, so no local paycheck is required. Either way, underwriting reviews credit, assets, and the property.
Can I use my 401(k) or IRA?
Yes, at a reduced share. On the qualifier path, balances count at 90% under age 59½ and 100% at 59½ or older. On the depletion path, retirement accounts count at 70% at any age. Nothing is withdrawn.
Does asset depletion mean I have to sell my investments?
No. It is a qualifying calculation. Usable assets divided by 60 months produce income for the debt-to-income test. Nothing is sold or pledged.
Can I use this for a rental in Michigan?
Investment property is available only on the depletion path, at up to 65% on a purchase. A pure rental purchase usually fits DSCR better, because it qualifies primarily on the property’s rent.
What if I move in after buying a DSCR rental?
A DSCR loan requires non-owner-occupancy. Moving in changes the occupancy. Plan an owner-occupied loan from the start if you will live there.
Lendmire’s asset-based mortgage in Michigan page presents the program for Michigan 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 § 1026.3 with commentary
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 · How to Qualify for an Assets-Only Jumbo Loan · How an Assets-Only Mortgage Works
Guides: Asset-Based Mortgage in Michigan
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.