The Quick Read: On the asset depletion path, an Indiana homeowner can typically take cash out up to 60% of the home’s appraised value, on a principal residence, a second home, or an investment property, less existing liens and closing costs, subject to underwriting. The asset pool does not set the amount. It only has to produce enough qualifying income to carry the new, larger payment.
- Cash-out leverage on the asset depletion path is 60% on every occupancy type, through select programs.
- Cash to you equals the appraised value times 60%, minus your payoffs and costs.
- Cash-out proceeds never count as qualifying assets.
- Usable assets are divided by 60 months to produce monthly qualifying income.
- The asset qualifier path covers the whole loan with assets alone, and cash-out there is set by the lender and not published.
Indiana does not change these figures. The program is the same in every state where it is placed, and Lendmire is a broker arranging it through select lenders in its wholesale network. Every file is underwritten individually, and nothing here is a commitment to lend.
What Sets the Cash Limit?
Loan-to-value sets the limit, not your portfolio. Across the network, the formula is the same on every cash-out file: appraised value times the leverage cap, minus the first and second liens being paid off, minus closing costs. What remains is cash in hand.
Say you own an Indiana home that appraises at $500,000 with a modest mortgage. Sixty percent of that value is the most the new loan can reach on the asset depletion path. Subtract the payoff and costs, and the remainder is your cash. A lower appraisal shrinks the number directly. A second lien shrinks it too.
Here is the part borrowers miss. A $2,000,000 portfolio does not mean $2,000,000 of cash. The portfolio proves you can repay. The house, through the appraisal and the leverage cap, decides how much you can take.
Two Paths, One at a Time
A borrower is reviewed on one path at a time. Mixing them is how files stall.
The asset qualifier path covers the entire loan with eligible assets. No employment or income is documented. Leverage runs up to 80% on a purchase and 75% on a refinance, for a principal residence or second home. Whether cash-out proceeds are allowed there, and at what leverage, is set by the lender and is not published. Do not plan a cash-out around that path without a lender answer first.
The asset depletion path turns assets into income. Usable assets are divided by 60 months, and that monthly figure runs through the debt-to-income test against the full housing payment and other debts. This is the path with published cash-out leverage.
| Factor | Asset qualifier path | Asset depletion path |
|---|---|---|
| How assets are used | Cover the whole loan | Divided by 60 into income |
| Refinance leverage | Up to 75% | Up to 80% rate-and-term |
| Cash-out leverage | Lender-set, not published | 60% |
| Loan amounts | Up to $4,000,000 | $125,000 to $3,500,000 |
| Debt-to-income test | Income not documented | Applies to derived income |
On the depletion path, the rate-and-term ceiling is 80% on a principal residence or second home and 65% on an investment property. Cash-out is 60% on all three occupancy types.
How Asset Depletion Income Is Built
The depletion path gives each asset class a share of its balance. Cash and certificates of deposit count at 100%. Securities count at 80%, private stock at 75%, and retirement accounts at 70% at any age. Real-estate equity counts at 60%.
Run an illustrative case. Someone holds $1,500,000 in securities, which counts at 80%, or $1,200,000, plus $300,000 in cash at 100%. That is $1,500,000 of usable assets. Divided by 60 months, it produces $25,000 of monthly qualifying income. That income then has to carry the housing payment and other debts through the debt-to-income test. The lender’s own calculation governs the real number.
Not everything counts. Custodial accounts, deferred compensation, escrow accounts, foreign funds, cash on hand, stock options and non-vested restricted stock units are not eligible on this path. Cryptocurrency, precious metals and collectibles 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 depletion path also has a minimum. Qualified assets must be at least the lesser of $1,000,000 or 1.25 times the loan balance. If asset depletion is your only income source, liquid assets can never fall below $250,000. Asset-derived income can also supplement documented income up to a 45% debt-to-income ratio, and when it does, the minimum-assets rule is waived.
When Income, Not LTV, Is the Binding Limit
Two limits compete on every depletion file. Leverage caps the loan at 60% of value. Qualifying income caps the payment you can carry. Whichever is lower wins.
Consider a homeowner with a high-value house and a modest pool, say $600,000 of securities and cash combined. Usable assets divided by 60 months is a small monthly income. A 60% cash-out loan on a large house could produce a payment that income cannot carry. The income test binds first, and the cash is smaller than the LTV math suggests. The reverse happens with a large pool and a modest house: the 60% cap binds and the extra assets do nothing. Final terms depend on the lender’s guidelines, the property type, and the borrower’s complete credit picture.
The order of limits, from first to last:
1. Leverage cap for the occupancy and transaction. 2. Loan-amount range, $125,000 to $3,500,000 on this path. 3. Minimum assets, the lesser of $1,000,000 or 1.25 times the loan. 4. Debt-to-income on the derived income. 5. Credit and housing history.
Why Proceeds Cannot Be Counted as Assets
Cash-out proceeds are never qualifying assets on the depletion path. Equity pulled from the subject house is collateral, not an outside resource. That follows the federal ability-to-repay rule, which looks at income or assets other than the value of the dwelling that secures the loan.
The rule also requires that assets relied on be verified with third-party records. The CFPB’s ability-to-repay compliance guide lists financial institution records, such as account statements, as acceptable verification. So “no income documentation” never means “no documentation.” Statements must be at least 120 days old at application, plus one within 45 days. Sale-of-business, inheritance and legal-settlement funds are excused from that seasoning.
Credit and Housing History
The depletion path follows the lender’s score and loan-amount matrix. A first-time investor on this path needs a 700 score. Housing history is 0x30x12, though one 30-day late in the past twelve months is considered case by case. Multiple bankruptcies are not eligible. A housing event needs four years of seasoning. On the qualifier path, the published floor is 600. All of this is subject to underwriting.
Investment Property Owners
An investor with a rental can use the depletion path, but the cash-out ceiling is 60%, and the rate-and-term ceiling is 65%. Asset depletion adds no extra proceeds above that tier. It only helps you qualify.
Most rental owners should look at a DSCR cash-out first. That loan is reviewed primarily on property-level rental income covering the payment, subject to lender guidelines, and it does not need the asset pool at all. Lendmire’s complete DSCR loans guide walks through that route. Asset depletion makes sense when the rent is thin but the portfolio is large and you want to keep the holdings invested.
For homeowners comparing large-balance options, Lendmire’s piece Can a Homeowner Take Cash Out on a Jumbo Refinance? covers the full-documentation side.
The One Indiana Wrinkle
Program figures do not change by state, but Indiana has a state high-cost-loan statute. It defines a high-cost home loan partly by points and fees above 5% of principal on loans of $40,000 or more, per the Indiana Code. Such loans face limits, including a ban on financing points and fees. A cash-out file with heavy fees is the kind that could approach that line, so fee structure matters. Ask the broker about it early, and confirm any legal question with counsel.
Key Terms Defined
Loan-to-value (LTV): the new loan balance divided by the home’s appraised value.
Cash-out refinance: a new loan larger than the payoff, with the difference paid to you.
Usable assets: your balances after the program’s percentage credit for each asset type.
Qualifying income: usable assets divided by 60 months on the depletion path.
Rate-and-term refinance: a payoff-only refinance with no cash back.
What to Gather Before Applying
- Statements for every qualifying account, meeting the 120-day and 45-day rules.
- Source documents for any large deposit.
- A payoff statement for each existing lien.
- Title information, including any tax or lien records that could stall a cash-out.
- Credit and housing history details.
Under the asset qualifier path, you need 60 days of seasoning and two months of statements per account. Funds that are pledged or borrowed do not count.
Frequently Asked Questions
Can I take cash out on the asset qualifier path?
Not by assumption. Cash-out proceeds and their leverage on that path are set by the lender and are not published, so a lender answer comes first. The depletion path carries the published 60% cash-out ceiling. Each figure is subject to lender guidelines and a complete review of property type, leverage, and credit.
Does my portfolio size set how much cash I get?
No. The portfolio sets qualifying income and meets the minimum-assets rule. Cash comes from appraised value times 60%, less payoffs and costs. A bigger pool only helps you carry the payment.
Do I have to sell or pledge my investments?
No. Asset depletion is a qualifying method, not a withdrawal plan. Your holdings stay invested, though statements must be documented and seasoned.
Can I use the cash I pull out as reserves or assets?
No on the depletion path. Cash-out proceeds never count as qualifying assets. The qualifier path requires no reserves at or below 75% loan-to-value, and above that the lender sets them.
Does Indiana have its own cash-out cap?
No. The program ceilings are the same in every state. Indiana’s high-cost-loan statute is the only state-specific point, and it concerns points and fees.
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. Tax treatment varies; consult a qualified professional.
Lendmire’s asset-based mortgage in Indiana page presents the program for Indiana borrowers.
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
1. Cornell Legal Information Institute, 12 CFR 1026.43
2. CFPB Ability-to-Repay and Qualified Mortgage Compliance Guide
3. Indiana Code 24-9-2-8, high cost home loan definition
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 Much Can a Retiree Borrow on a Jumbo Loan Using Asset Depletion? · How Asset Depletion Income Is Calculated From Your Portfolio · Can You Do a Cash-Out Refinance on an Asset Depletion Loan?
Guides: Asset-Based Mortgage in Indiana
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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Compliance and disclosures. Lendmire (NMLS# 2371349) is a licensed mortgage broker and is not a direct lender, depository institution, financial advisor, or tax professional. Content in this article is general market analysis and educational information — not financial, legal, or tax advice for any specific situation. Lendmire does not guarantee loan approval; every transaction is subject to underwriting by the funding lender. Mortgage pricing and loan program guidelines are subject to change at any time without notice and vary by borrower characteristics, property type, and state regulations. Lendmire complies with Equal Housing Opportunity. Licensure verification: NMLS Consumer Access.