The Quick Read: Yes, verified savings count on an asset qualifier mortgage, at 100% of the balance on the asset qualifier path. The catch is that only the dollars left after your down payment and closing funds are set aside can count, and they must be seasoned with 60 days of history and two months of statements. Savings are documented, not ignored, and the lender reviews every account it relies on, subject to underwriting. What follows is what a working broker sees across the wholesale network.
- Savings, CDs, money market and brokerage accounts each count at 100% on the asset qualifier path, which drives lender review on assets alone.
- 401(k) and IRA balances count at 90% under age 59½ and 100% at 59½ or older on that same path.
- Seasoning is 60 days on the qualifier path, with two months of statements for each qualifying account.
- The same dollars cannot do two jobs. Money used for closing comes off the usable base.
- The asset depletion path is a different program with different percentages, covered below.
Which Path Fits You?
Two programs share the “asset” label, and they work differently. A borrower is qualified on one path at a time.
The asset qualifier path asks one question: do your eligible assets, after the credit percentages, equal or exceed the entire loan amount? If yes, you qualify on assets alone. No employment or income is documented. Leverage runs up to 80% on a purchase and up to 75% on a refinance, for a principal residence or second home. Loan amounts go to $4,000,000, with a credit score floor of 600. Everything is subject to underwriting and select program terms.
The asset depletion path turns your assets into income. The lender takes your usable assets, applies a haircut to each type, and divides the total by 60 months. That monthly figure must then carry the housing payment and your other debts through the debt-to-income test. Loan amounts run $125,000 to $3,500,000, and this path is the one that can also reach investment property.
This article is built for the cash-heavy, income-light borrower. Think of a retiree, someone who sold a business, an inheritance or settlement recipient, an early-retired professional, or a household living on a portfolio. Balances are large and documented income is small. If that is you, savings are the center of the file.
Do Savings Actually Count?
Cash held in savings, money market and CD accounts is the strongest asset type on either path. A lender looks for four things in any account.
- Liquid: you can reach the money without selling something or paying a penalty.
- Verifiable: statements prove the balance.
- Owned: the funds belong to you, not to a business or a lender.
- Seasoned: the money has been in the account long enough to show it is yours.
Checking accounts are cash too, though many borrowers keep the bulk of their balance in savings, money market or CDs. The lender’s review of statements, not the account label, decides what is usable.
Federal rules explain why verification matters. The Federal Register preamble to the ability-to-repay rule says a lender’s determination must rest on verified and documented information. That is why “no income documentation” never means “no documentation” on these loans.
Asset Qualifier Path: What Counts and How Much
This table applies only to the asset qualifier path. The percentage is the share of the balance that counts.
| Asset type | Share that counts |
|---|---|
| Savings | 100% |
| Money market | 100% |
| Certificates of deposit | 100% |
| Brokerage accounts | 100% |
| 401(k) or IRA, under 59½ | 90% |
| 401(k) or IRA, 59½ or older | 100% |
Accounts combine. You can add a brokerage account, a CD and savings together to reach the loan amount. Reserves are not required at or below 75% loan-to-value on this path. Above that, the lender sets them.
Asset Depletion Path: What Counts and How Much
This table applies only to the asset depletion path. Do not mix these percentages with the table above.
| Asset type | Share that counts |
|---|---|
| Cash accounts | 100% |
| Certificates of deposit | 100% |
| Securities | 80% |
| Private stock | 75% |
| Retirement accounts (any age) | 70% |
| Real-estate equity | 60% |
Cash and CDs get full credit because their value does not swing. Securities and retirement balances are discounted because markets move and retirement money can face access limits. The lender’s own calculation governs the final number.
Two Worked Examples
These are illustrative only. The lender’s calculation governs, and every file is underwritten individually.
Qualifier path. Say you want an $800,000 loan. You hold $330,000 in brokerage accounts (100% counts, so $330,000). You have $300,000 in a 401(k) and you are under 59½ (90% counts, so $270,000). You also hold $200,000 in savings (100% counts, so $200,000). That adds up to $800,000 of usable assets. Those assets cover the loan, so the file is reviewed on assets alone, subject to underwriting.
Depletion path. Say you hold $1,500,000 in securities (80% counts, so $1,200,000). You also hold $300,000 in cash (100% counts, so $300,000). Usable assets total $1,500,000. Divide by 60 months and you get $25,000 of monthly qualifying income. That income must then carry the housing payment and your other debts through the debt-to-income test.
Notice what differs. On the qualifier path, assets must cover the loan itself. On the depletion path, assets only have to produce enough income to carry the payment.
The Double-Counting Rule
The same dollar cannot count twice. Funds you spend at closing come off the usable base.
Here is the problem in plain terms. Say you plan to put money down on a home, and that money sits in the same savings account the lender is counting. Once the down payment, closing costs and any required reserves are paid, that cash is gone. The lender counts what is left. If what is left no longer covers the loan on the qualifier path, the file falls short.
The fix is to plan liquidity before you apply. Add up your total eligible assets. Then subtract the cash you intend to spend at closing. Compare the remainder with your target loan amount. Many borrowers skip this step and discover the gap late.
One related point: cash-out proceeds never count as qualifying assets on the depletion path. You cannot borrow against one property and use that cash to qualify for the next loan.
Savings That Will Not Count (and the Fix)
Some money looks like savings but does not count the way you expect.
- Cryptocurrency, precious metals and collectibles. These are not published as eligible on either path. The documented route is converting them to cash in a regulated account and letting that cash season. The lender then reviews the source.
- Business accounts. Only your ownership share is considered at most, and the lender decides whether to count it.
- Borrowed or pledged funds. These are not published as eligible on either path.
- Foreign funds. These are not eligible on the depletion path.
- Cash on hand. Cash in a drawer is not eligible on the depletion path.
- Other ineligible items on the depletion path: custodial accounts, deferred compensation, escrow accounts, stock options, non-vested restricted stock units, and funds from non-regulated financial companies.
- Real-estate equity. It counts only at 60% on the depletion path, and the qualifier table above does not list it.
A large recent deposit is the most common surprise. Money that appears in your account without a paper trail raises questions. Keep records that show where it came from.
Seasoning, Statements and Paper Trail
Seasoning is the waiting period that proves money is really yours. Here is how it works on each path.
- Qualifier path: 60 days of seasoning, plus 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. Funds from the sale of a business, an inheritance or a legal settlement are excused from that seasoning.
Gather statements for every account you want counted. Make sure the account owner’s name matches your own. If an account is held with someone else, expect the lender to ask how ownership is documented.
Credit still matters. The qualifier path has a 600 minimum score. The depletion path follows the lender’s matrix of score and loan amount. A first-time investor on the depletion path needs a 700. Housing history is reviewed at 0x30x12, and one 30-day late in the last twelve months is considered case by case. Multiple bankruptcies are not eligible. A housing event needs 4 years of seasoning on the depletion path. None of this is a promise of approval.
What About Investment Property?
The qualifier path covers principal residences and second homes. Investment property is available only on the depletion path. There, leverage tops out at 65% on a purchase or rate-and-term refinance and 60% on a cash-out refinance, subject to underwriting. By comparison, a principal residence or second home on that path goes up to 80% on a purchase or rate-and-term refinance and 60% on a cash-out.
Depletion also has minimums. Qualified assets must be at least the lesser of $1,000,000 or 1.25 times the loan balance. When asset depletion is your only income source, you also need at least $250,000 in liquid assets. Asset-derived income can supplement documented income up to a 45% debt-to-income ratio. When it supplements, the minimum-assets rule is waived.
If your goal is a pure rental purchase, a different tool often fits better. Business-purpose rental financing is DSCR, which qualifies primarily on property-level rental income covering the payment, subject to lender guidelines. On those loans, your savings usually serve as reserves rather than as the qualifier. Lendmire’s complete DSCR loans guide walks through how that works. The short version is that asset-based loans use your money to qualify you, and DSCR loans use the property.
Key Terms Defined
Asset qualifier path: a program in which eligible assets must equal or exceed the whole loan amount, with no employment or income documented.
Asset depletion path: a program that divides usable assets by 60 months to create a qualifying monthly income.
Haircut: the discount a lender applies to an asset because its value can swing or access is limited.
Seasoning: the period money must sit in an account, supported by statements, before it counts.
Debt-to-income (DTI): your monthly debts divided by your monthly income, used to judge whether you can carry a new payment.
Reserves: liquid funds the lender wants left over after closing.
Do You Have to Sell Your Savings?
No. The assets are counted, not sold. Your money stays where it is. Lendmire’s piece Do You Have to Liquidate Assets to Reserve an Asset Qualifier Mortgage? explains how that works on reserve requirements. Final terms depend on lender guidelines, property type, leverage, and the borrower’s complete credit picture.
There is still a practical point. A lender’s math is a qualification device. After closing, you still need cash to live on and to handle repairs. Large balances that qualify you can be spent down later, but that is your decision, not the lender’s. Plan your life around your own liquidity, not only the formula.
Some borrowers wonder whether they would do better documenting income through deposits. That is a different tool, built for people with self-employment deposits. Lendmire’s piece Asset Qualifier Mortgage vs Bank Statement Mortgage shows when each fits.
Common Mistakes
- Counting the same cash as both down payment and qualifying asset.
- Moving money between accounts shortly before applying, which can break seasoning.
- Assuming every account counts at face value.
- Assuming no income documentation means no documentation at all.
- Listing assets in a category the program does not accept.
- Applying on the wrong path for the property type.
What Lenders Must Consider Behind the Scenes
Federal rules shape how any lender looks at assets. Regulation Z, section 1026.43 requires a reasonable, good-faith determination that you can repay. A legal commentary on non-QM loans under that rule notes a lender may rely on income, assets or both, while still considering your debts. Neither source sets a single debt-to-income cap, so the lender sets its own.
Frequently Asked Questions
Do checking and savings accounts both count?
Yes, cash held in checking and savings accounts counts at 100% on both paths, once documented. The lender reviews statements for every account it relies on. It will also check that the funds are yours and that large deposits have a clear source.
Do retirement accounts count?
Yes, with a discount depending on the path. On the qualifier path, 401(k) and IRA balances count at 90% under age 59½ and 100% at 59½ or older. On the depletion path they count at 70% at any age. Each is subject to underwriting and program terms.
Can I use the same money for my down payment and to qualify?
No. Funds used for the down payment, closing costs and required reserves come off the usable asset base. You need enough left over to meet the program’s test. Plan the totals before you apply.
Is an asset qualifier mortgage the same as asset depletion?
Not here. Within Lendmire’s network, the qualifier path counts assets against the whole loan amount, while the depletion path divides assets by 60 months into monthly income. They carry different percentages and different leverage limits. You are qualified on one path at a time.
Does an asset-based mortgage require no documentation?
No. Income and employment are not documented on the qualifier path, but your assets are. Statements, seasoning and source checks all apply. Expect full review of every account the lender counts.
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. Lendmire is a mortgage broker placing files through select lenders in its network, and its consumer mortgage lending is licensed in 16 states. Programs and figures here are ceilings and floors, not offers, and none is a commitment to lend.
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. Federal Register: Ability-to-Repay and Qualified Mortgage Standards
2. CFPB Regulation Z, section 1026.43
3. CFS Review: CFPB Addresses Non-QMs Under Ability-to-Repay Rule
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 Asset Qualifier Mortgage Loan Limits Work · Asset Qualifier vs Asset Depletion for a Cash-Out Refinance · How to Qualify for an Asset Qualifier Mortgage
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.