The Quick Read: Usually 60% to 80% of the appraised value, and the exact cap depends on your occupancy, the transaction type, and which asset-based path the file runs on. Through select programs in Lendmire’s wholesale network, the asset depletion path allows up to 80% on a rate-and-term refinance of a primary residence or second home, and 60% on a cash-out. Investment property sits at 65% and 60%. Assets raise your qualifying income, not your loan-to-value.
- The asset qualifier path allows up to 75% on a refinance of a principal residence or second home, subject to underwriting.
- The asset depletion path caps a primary or second home at 80% rate-and-term and 60% cash-out.
- Investment property on the depletion path runs 65% rate-and-term and 60% cash-out.
- Cash-out proceeds never count as qualifying assets.
- A bigger portfolio does not buy a higher LTV. It clears the income and minimum-asset tests. These specifics are subject to lender guidelines and a full review of property, leverage, and credit.
Most investors read “asset depletion refinance” and picture borrowing against their portfolio. That is not what happens. The assets are a way to prove ability to repay. The collateral is still the house, and the house sets the ceiling.
Which Path Are You On?
An asset-based refinance runs on one of two paths, and a borrower is qualified on one at a time. Mixing their numbers is a common mistake in this topic.
The asset qualifier path covers the entire loan with eligible assets. No employment or income is documented. If your usable assets, after the credit percentages, equal or exceed the whole loan amount, you qualify on assets alone. Loans run up to $4,000,000.
The asset depletion path divides usable assets by 60 months to create a monthly qualifying income. That income then carries the housing payment and your other debts through the debt-to-income test. Loans run from $125,000 to $3,500,000.
Neither path is “no documentation.” The assets are verified on both. Only personal income documentation drops out on the qualifier path.
What Is the Maximum LTV, Path by Path?
The ceiling comes from the program, not from any federal rule. Federal ability-to-repay language lets a creditor rely on income, on assets other than the home securing the loan, or on both, and the CFPB’s Regulation Z text does not set a loan-to-value cap. That is why leverage varies from one program to the next.
| Path and property | Rate-and-term / purchase | Cash-out |
|---|---|---|
| Qualifier, primary or second home | 80% purchase, 75% refinance | Set by lender, not published |
| Depletion, primary or second home | 80% | 60% |
| Depletion, investment property | 65% | 60% |
These are ceilings, available through select programs and subject to underwriting. They are not offers. Appraisal, credit, and the lender’s own matrix can all pull the working number lower.
One note on the qualifier path: the cash-out allowance is set by the lender and is not published, so no figure is stated here. If cash-out is the goal, the depletion path’s 60% is the number to plan around.
Which Assets Count, and How Much?
The credit you get per account differs by path. Here is each one, kept separate.
| Asset | Qualifier path | Depletion path |
|---|---|---|
| Brokerage accounts | 100% | Securities at 80% |
| Certificates of deposit | 100% | 100% |
| Money market and savings | 100% | Cash accounts at 100% |
| 401(k) and IRA | 90% under 59½, 100% at 59½+ | 70% at any age |
| Private stock | Not listed | 75% |
| Real-estate equity | Not listed | 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.
The federal rule also excludes the home itself. Per the same regulation, the dwelling securing the loan cannot be counted as an asset. And the lender must verify whatever assets it relies on using third-party records, as the eCFR text spells out.
Step by Step: Sizing Your Refinance
Two ceilings decide your number, and the lower one wins. One is what the property allows. The other is what your assets or derived income support.
1. Start with the appraised value. A refinance uses a new appraisal, and it can land below what you expect.
2. Apply the LTV cap for your path, occupancy, and purpose. That is the property-side ceiling.
3. Total your eligible assets and apply the credit percentages for your path.
4. On the depletion path, divide usable assets by 60 months. That is your monthly qualifying income.
5. Run debt-to-income against the new housing payment and existing debts.
6. Check the minimums. Depletion requires qualified assets of at least the lesser of $1,000,000 or 1.25 times the loan balance, and never less than $250,000 liquid when assets are your only income source.
7. Take the lower result. That is your working loan size.
Here is how the arithmetic runs on the qualifier path. Say you have $330,000 in brokerage accounts (counted at 100%), $300,000 in a 401(k) while under 59½ (counted at 90%), and $200,000 in savings (100%). That counts as $800,000 of usable assets. It covers an $800,000 loan on assets alone. The lender’s own calculation governs.
On the depletion path, picture $1,500,000 in securities (80%) plus $300,000 in cash (100%). That is $1,500,000 usable, divided by 60 months, for $25,000 of monthly qualifying income. That income then has to carry the housing payment and other debts through the debt-to-income test.
Notice what neither example changes: the LTV cap. A larger pool improves qualifying income. It does not lift the percentage of value you can borrow.
Does Cash-Out Work Differently?
Yes. Cash-out ceilings run lower than rate-and-term ceilings across nearly every non-agency program, and this one follows the pattern. On the depletion path the drop is steep: a primary residence goes from 80% to 60%, and an investment property from 65% to 60%.
Cash-out proceeds also never count as qualifying assets. You cannot pull cash out and then use it to meet the asset test for the same loan.
That settles a conflict you may have seen. Some lenders say asset-based cash-out is prohibited, others say it is allowed freely. The difference is program design. Agency-style programs are far stricter, and non-agency programs set their own limits. Across a wholesale network the answer is “yes, with a lower cap,” and on the qualifier path “ask, because the lender sets it.”
What About Rental Properties?
Here is where investors need to slow down. Asset paths are generally built for primary residences and second homes. In this program, investment property is allowed only on the depletion path, at 65% and 60%.
For a rental you are buying or refinancing as a business, the more natural tool is usually DSCR. DSCR is reviewed on the property’s rent against its payment. Asset depletion is reviewed on your liquid balances. DSCR loans are designed for non-owner-occupied investment properties, and because they are business-purpose investor loans, they are reviewed differently from a standard owner-occupied mortgage.
The practical split for many cash-rich, income-light investors: use DSCR for the rental, and keep asset-based qualifying for the home you live in. Lendmire’s complete DSCR loans guide walks through that side. Where select DSCR programs go below 1.00 coverage, leverage and terms adjust.
Also note the cap on a DSCR cash-out. If the rent coverage falls short of the program floor at a given loan size, the loan is sized down until the ratio clears. The appraisal can support the maximum LTV on paper and still not deliver the maximum loan.
What Shrinks Your Number?
A few items quietly reduce either ceiling.
- A low appraisal. Every dollar of proceeds depends on it.
- Haircuts. A retirement-heavy portfolio counts at 70% on the depletion path, which can pull you under the minimum-asset test.
- Closing costs and reserves. These come out of the pool before income is calculated, which lowers your usable assets.
- Pledged or borrowed funds. They do not count as eligible assets.
- Existing debts. On the depletion path they reduce what the derived income can carry.
- Market moves. Securities count at 80% of their current balance. A drop before application lowers the pool, and on the depletion path you need a statement history covering 120 days plus one statement dated within the last 45 days. The qualifier path wants 60 days of seasoning and two months of statements per account.
A practical stress test: cut your securities balance by a quarter and rerun the 60-month math. If the file still clears the minimums, it has a cushion.
How Does This Compare With Other Ways to Pull Cash?
| Option | What sets the limit |
|---|---|
| Asset depletion refinance | Program LTV plus derived income |
| Conventional cash-out | Agency-style LTV caps and income |
| DSCR cash-out (rentals) | Rent coverage and program LTV |
| Selling assets | Taxes and loss of market exposure |
Conventional cash-out has its own rules. Lendmire’s piece How Much Home Value a Conventional Cash-Out Refinance Lets You Borrow covers that lane. And for the purchase side, there is a separate piece How Much Can You Borrow With an Asset Depletion Jumbo Loan?.
Borrowing instead of selling can let a portfolio stay invested. Whether that wins depends on your holding period and your comfort with leverage on the home. If you plan to sell the assets within a year anyway, the case for borrowing weakens.
Broker Observation
Across the programs we place files with, the surprise is rarely the asset math. It is the appraisal and the occupancy. Borrowers arrive with a seven-figure portfolio, assume the loan scales with it, and then learn the cap is a percentage of the house. The files that go smoothly name the path first, run both ceilings on paper, and bring statements that already meet the seasoning rules.
Documents to Gather
- Asset statements, specific to you as the account holder.
- Credit report. The qualifier path publishes a 600 minimum score. The depletion path follows the lender’s matrix, and a first-time investor needs 700.
- Appraisal.
- Mortgage payoff statement.
- Title work.
- Explanations for any large deposits.
Housing history is typically 0x30x12, with one recent 30-day late reviewed case by case. Multiple bankruptcies are not eligible, and a housing event needs four years of seasoning on the depletion path. This is a consumer mortgage, so standard consumer disclosures apply.
Key Terms Defined
Loan-to-value (LTV): the loan amount divided by the appraised value of the home.
Asset qualifier path: a route where eligible assets must equal or exceed the entire loan.
Asset depletion path: a route that turns usable assets into monthly income by dividing by 60 months.
Haircut: the share of an asset’s balance that a lender does not count.
Seasoning: how long funds have sat in your account before they count.
Frequently Asked Questions
Can I borrow more if I have more assets?
Not on the LTV side. A larger pool helps you clear income and minimum-asset tests, but the loan-to-value cap is set by the program, occupancy, and transaction type. The loan is then limited by whichever ceiling is lower.
Are my investments used as collateral?
No. Asset-based mortgages generally do not pledge the assets, and nothing is sold. The assets are a way to prove repayment ability. The home secures the loan.
Can home equity count as an asset?
Not the equity in the home you are refinancing. Federal ability-to-repay language excludes the dwelling securing the loan. On the depletion path, real-estate equity counts at 60%, which refers to other property.
Does a cash-out refinance help me qualify?
No. Cash-out proceeds never count as qualifying assets on the depletion path. The cash you take out cannot be used to meet the asset test.
Can I use this on a rental property?
Only on the depletion path, at 65% on rate-and-term and 60% on cash-out, subject to underwriting. Many investors find DSCR a better fit for the rental, with asset-based qualifying saved for their own home.
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. The program is arranged through select lenders in the network, and consumer mortgage lending is licensed in 16 states. Qualification is subject to underwriting and is not a commitment to lend.
Tax treatment varies; consult a qualified professional.
About Lendmire
Lendmire, NMLS# 2371349, is a mortgage brokerage with consumer lending licenses in 16 states. Bank statement, P&L-only, 1099-only and asset-based mortgages are arranged through wholesale lending partners for borrowers whose tax returns understate their income, and each application is reviewed individually by the lender. Scotsman Guide named Lendmire a Top Mortgage Workplace in both 2025 and 2026.
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References
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 Qualify for an Asset Depletion Jumbo Loan · Can You Do a Cash-Out Refinance on an Asset Depletion Loan? · How Much Down Payment Does an Asset Depletion Jumbo Loan Need?
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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Disclosure information. Lendmire is a state-licensed mortgage brokerage under NMLS# 2371349. Lendmire is not a depository institution, direct lender, or financial advisor — all loans referenced are placed through wholesale lender partners and are subject to each lender's underwriting standards. This article is provided for general informational purposes and is not a commitment to lend, nor does it constitute financial, legal, or tax advice. Loan programs, terms, rates, and qualification standards change without notice and depend on borrower profile, property type, and the state in which the subject property is located. Equal Housing Opportunity provider. NMLS Consumer Access: nmlsconsumeraccess.org.