The Quick Read: It depends on the path: on the asset depletion path you can cash out a primary residence, second home, or investment property at up to 60% loan-to-value, subject to underwriting, but the cash you pull out never counts toward the assets you qualify on. The asset qualifier path leaves cash-out to the individual lender and does not publish a figure. Program figures do not change by state, so an Ohio borrower sees the same numbers as anyone else.
- Asset depletion path: cash-out tops out at 60% loan-to-value on a principal residence, second home, or investment property, subject to underwriting.
- Asset qualifier path: your eligible assets must cover the entire loan, and cash-out terms are set lender by lender.
- Cash-out proceeds: they never count as qualifying assets on the depletion path.
- Best fit: retirees, business sellers, and portfolio-heavy households with large balances and little documented income.
The Direct Answer, Path by Path
Asset-based mortgages come in two forms, and you qualify on one at a time. Mixing them is how borrowers end up with the wrong expectations.
On the asset qualifier path, your eligible assets, after the credit percentages, must equal or exceed the entire loan. No employment or income is documented. On the asset depletion path, the lender converts eligible assets into a monthly qualifying income by dividing usable assets by 60 months. That income then runs through the debt-to-income test.
| Factor | Asset qualifier path | Asset depletion path |
|---|---|---|
| How you qualify | Assets cover the whole loan | Assets become monthly income |
| Purchase leverage | Up to 80% LTV | Up to 80% (home), 65% (investment) |
| Refinance leverage | Up to 75% LTV | Up to 80% (home), 65% (investment) on rate-and-term |
| Cash-out leverage | Lender-set, not published | Up to 60% (home or investment) |
| Loan amounts | Up to $4,000,000 | $125,000 to $3,500,000 |
Read the table with care. The qualifier path’s 80% and 75% figures apply to a principal residence or second home. On the depletion path, the 80% figure is for a purchase or rate-and-term refinance on a principal residence or second home. The 65% figure covers the same transactions on an investment property. All of these are ceilings, subject to underwriting, never offers.
Notice the gap. Cash-out on the depletion path sits well below a rate-and-term refinance on a home. That is the real price of pulling cash out this way.
Key Terms Defined
Asset depletion: a method that turns a pile of eligible assets into a monthly qualifying income on paper. You do not actually spend the assets down.
Asset qualifier: a method where your eligible assets must cover the full loan amount, so no income is documented at all.
Cash-out refinance: a new, larger mortgage that pays off the old one and hands you the difference in cash.
Rate-and-term refinance: a new mortgage that changes the loan’s terms without giving you meaningful cash back.
Haircut: the discount a lender applies to an asset type. A brokerage account might count at 80%, for example, because its value can fall.
Seasoning: how long funds must have sat in your accounts before the lender counts them.
Loan-to-value (LTV): the loan balance divided by the home’s appraised value.
How Do You Cash Out an Ohio Home on an Asset Depletion Refinance?
You inventory your assets, apply the haircuts, divide by 60, and test the result against the new payment and your other debts. Then the lender underwrites the home itself, and the 60% cash-out ceiling does most of the limiting. Every figure here varies by lender and program — guidelines, property type, leverage, and credit profile all apply.
Here is the sequence across the wholesale network Lendmire works through:
1. Pick the path. If your eligible assets exceed the whole loan, the qualifier path may fit. If not, the depletion path is the one that turns assets into income.
2. Document the assets. Qualifier path files need 60 days of seasoning and two months of statements for each qualifying account. Depletion path files need statements at least 120 days old at application, plus the most recent statement within 45 days. Funds from a business sale, inheritance, or legal settlement are excused from that seasoning on the depletion path.
3. Apply the haircuts. Each asset type counts at a set percentage (table below).
4. Divide by 60. On the depletion path, usable assets divided by 60 months equals your qualifying monthly income.
5. Run the debt-to-income test. That derived income must carry the full housing payment and your other debts.
6. Underwrite the home. Appraisal, title, and the cash-out LTV cap decide how much equity you can touch.
Depletion path files also carry asset minimums. Qualified assets must reach the lesser of $1,000,000 or 1.25 times the loan balance. If asset depletion is your only income, you also need at least $250,000 in liquid assets. Asset income can instead supplement documented income, up to a 45% debt-to-income ratio, and then the minimum-assets rule is waived.
Here is how the credit percentages compare:
| Asset | Qualifier path counts | Depletion path counts |
|---|---|---|
| Brokerage or securities | 100% | 80% |
| Certificates of deposit | 100% | 100% |
| Cash, savings, money market | 100% | 100% (cash accounts) |
| 401(k) or IRA | 90% under 59½, 100% after | 70% at any age |
| Private stock | Not listed | 75% |
| Real-estate equity | Not listed | 60% |
Run the sanctioned depletion example. Say you hold $1,500,000 in securities, which count at 80%, or $1,200,000. Add $300,000 in cash at 100%. Usable assets total $1,500,000. Divided by 60 months, that is $25,000 of monthly qualifying income. That figure is illustrative, and the lender’s own calculation governs.
The qualifier path works differently. Picture an $800,000 loan backed by $330,000 in brokerage accounts, $300,000 in a 401(k) held under age 59½ (counted at 90%, or $270,000), and $200,000 in savings. Usable assets come to exactly $800,000, so the file is reviewed on assets alone, subject to underwriting.
Some assets do not count on either path. Cryptocurrency, precious metals, collectibles, and pledged or borrowed funds are not published as eligible. The documented route is converting them to a seasoned cash balance in a regulated account, with the lender reviewing the source. Depletion path files also exclude 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.
Why Cash-Out Proceeds Cannot Be Your Assets
The cash you take out of the home can’t be counted as an asset to qualify for that same loan. The federal ability-to-repay rule points the same way, telling lenders to weigh a borrower’s income or assets, excluding the value of the dwelling that secures the loan. Your home is the collateral, not the proof you can repay.
This is the trap many borrowers fall into. They imagine borrowing against equity, parking the proceeds in an account, and then qualifying on that balance. Circular logic like that fails on the depletion path. Cash-out proceeds never count as qualifying assets there.
Qualifying on assets is also not the same as skipping review. The lender still verifies the assets it relies on, and the assets are documented on both paths. Asset-based means no traditional personal-income documentation, pay stubs or employment verification. It does not mean no documentation.
Limited Cash-Out vs. True Cash-Out
The line between the two is whether you walk away with meaningful cash. A limited cash-out, also called a rate-and-term refinance, pays off the old loan and covers closing costs, with little or nothing back to you. A true cash-out puts real money in your pocket.
That distinction drives leverage on the depletion path. A primary residence in Ohio refinanced at rate-and-term can reach 80% LTV, subject to underwriting. The same home refinanced for cash drops to a 60% ceiling. An investment property drops from 65% to 60%. Small amounts of cash back can shift a file from one bucket to the other, so tell the lender your real goal up front. Final terms depend on lender guidelines, property type, leverage, and the borrower’s complete credit picture.
Agency conventional guidelines are narrower. They generally limit asset-as-income to purchases and no-cash-out or limited cash-out refinances on principal residences and second homes. That narrowness is why a borrower who hears a flat “no” from a big retail lender may still have options elsewhere.
If the Ohio Home Is a Rental
If you are cashing out a rental, the property’s own income may be a better fit than your balance sheet. 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.
Under Ohio’s administrative code on mortgage lending, a residential mortgage loan made to invest in a dwelling to lease, rent, or resell for profit is a business-purpose loan. The same rule says the state may look at the totality of the circumstances, not merely the purpose of the cash-out proceeds.
Practically, that means two routes for an Ohio rental:
- Asset depletion path: your portfolio qualifies you, at 60% LTV on a cash-out of an investment property, subject to underwriting.
- DSCR: the property qualifies primarily on rental income covering the payment, subject to lender guidelines. Programs below 1.00 coverage are available through select lenders in the network, though LTV and terms adjust.
If the rent covers the payment comfortably, DSCR is usually the cleaner tool.
Your Realistic Options When You Want Cash
Cash-out on an asset depletion refinance is one tool among several. Which one fits depends on where your wealth sits and what the property does.
| Option | Reviewed around | Best for |
|---|---|---|
| Asset depletion cash-out | Portfolio converted to income | Income-light, asset-heavy owners |
| Asset qualifier refinance | Assets covering the whole loan | Very large liquid balances |
| DSCR cash-out | Rental income vs. payment | Cash-flowing Ohio rentals |
| Bank statement loan | Deposits over 12 to 24 months | Self-employed with strong deposits |
| HELOC or second lien | That lender’s own rules | Keeping an existing first mortgage |
The bank statement program is for borrowers who document income with deposits. Scotsman Guide describes asset depletion as calculating repayment ability from liquid or investment assets, and bank statement programs as using 12 to 24 months of deposits. The same report puts non-QM at about 5% of mortgages, so these are established products, just not the default.
What Brokers See on These Files
Across the lenders in the network, the most common stumbling block is a statement timeline, not the math. A borrower arrives with a strong portfolio but a recent account transfer. Depletion files want older statements, and qualifier files want 60 days of seasoning. Cash moved last month may need more time before it counts.
The second stumbling block is account type. A large balance in a custodial or foreign account counts for nothing on the depletion path. Retirement balances count, but at 70% on the depletion path versus 90% to 100% on the qualifier path. Sorting this out before you apply saves a lot of rework.
Credit matters too. The qualifier path publishes a 600 minimum score. The depletion path follows the lender’s score and loan-amount matrix. A first-time investor on the depletion path needs 700. Housing history is typically 0x30x12, though one 30-day late in the last twelve months is considered case by case. Multiple bankruptcies are not eligible, and a housing event needs 4 years of seasoning on the depletion path.
The Investor Decision: Is Cash-Out Worth It?
Pulling cash out raises your payment and trims cash flow. Investors on BiggerPockets weigh that cost against redeploying the equity into a property that cash-flows. Both sides have a point. This one’s a genuine toss-up, and it turns on what you will do with the money.
Three questions settle most of these decisions:
- Does the 60% ceiling leave enough cash to matter? On a home with a large existing balance, it may not.
- Will the new payment fit inside the derived income? On the depletion path, income is capped by the 60-month divisor.
- Is there a cheaper route? A rental that cash-flows may fit DSCR better. A paid-down home with a low existing mortgage may suit a second lien.
Asset depletion does not mean selling or draining your holdings. The calculation is a qualifying convention, and you keep the assets. Still, a portfolio that drops in value can shrink your usable assets at the next application, so watch concentration in volatile positions.
Tax treatment varies; consult a qualified professional.
What to Gather Before You Call
A prepared file moves through review more smoothly. Bring these:
- Two months of statements for every account you plan to use
- Older statements showing 120 days of history if you’re on the depletion path
- Documentation for any inheritance, business sale, or settlement funds
- Titling for joint accounts, so ownership is clear
- Your current mortgage statement and homeowners details
- A short note on what the cash is for
Frequently Asked Questions
Can I cash out if I’m retired and have no pension income?
Often, yes, subject to underwriting. Retirees are a natural fit, because the depletion path turns assets into income and the qualifier path needs no income at all. Your balances, statement history, and credit decide the outcome, along with the 60% cash-out ceiling on the depletion path.
Do retirement accounts count toward qualifying?
They do, at different percentages by path. 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. Eligibility is subject to underwriting.
Does this work on a second home or investment property?
A second home follows the same figures as a principal residence: up to 60% LTV on a cash-out on the depletion path. Investment property is eligible only on the depletion path, with a 60% cash-out ceiling. The qualifier path covers principal residences and second homes only. These specifics are subject to lender guidelines and a full review of property, leverage, and credit.
Can I use the cash to buy another rental?
Nothing in the program parameters restricts how you use the cash. The lender still underwrites the loan on the assets, not on the future rental. If the next property will cash-flow, you may qualify for it separately through DSCR.
Is this the same in Ohio as in other states?
The program figures are the same everywhere, and Ohio is one of the 16 states where Lendmire arranges consumer mortgages. State-specific items such as taxes, insurance, and local home prices change the economics of a deal, not the program parameters.
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. Lendmire is a broker that arranges financing through select lenders in its network, and every file is underwritten individually. Nothing here is a commitment to lend.
Lendmire’s asset-based mortgage in Ohio page presents the program for Ohio borrowers.
About Lendmire
Lendmire is a mortgage brokerage (NMLS# 2371349) licensed for consumer mortgage lending in 16 states, arranging bank statement and other alternative-documentation mortgages — P&L-only, 1099-only and asset-based paths — through a wholesale lending network. Eligibility is determined by the lender on each file. Scotsman Guide named Lendmire a Top Mortgage Workplace in both 2025 and 2026.
For how equity extraction works on an investment property, see Lendmire’s guide to cash-out refinance on an investment property.
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References
1. CFPB Regulation Z, § 1026.43 (ability to repay)
2. Ohio Administrative Code, Chapter 1301:8-7
3. Scotsman Guide, “One out of 20 mortgages are non-QM”
4. BiggerPockets, cash-out refinance to buy another investment property
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 Refinance an Ohio Mortgage After Retiring With No W-2 Income · Can You Refinance a Michigan Home on Assets When Your Income Stops? · How to Finance an Ohio Vacation Home With an Asset Qualifier Mortgage
Guides: Asset-Based Mortgage in Ohio
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.