The Quick Read: Usually up to 60% of the home’s appraised value as the new total loan, minus the payoff of the existing mortgage, other liens, and any costs rolled in. That 60% ceiling applies on the asset depletion path for a principal residence, a second home, or an investment property, subject to underwriting and select lender programs. Asset depletion changes how you qualify, not how the cash is sized.
- There is no fixed dollar cap. The new loan is capped by loan-to-value, and your cash is what is left after payoffs.
- The 60% cash-out ceiling applies on the asset depletion path. Whether the asset qualifier path allows cash-out at all is set by the lender and is not published.
- Cash-out proceeds never count as qualifying assets on the depletion path.
- Virginia adds no special asset depletion rule. The same program figures apply to a Virginia borrower.
- Rental properties are usually better served by DSCR financing, where the property’s rent drives lender review.
This page is written for the cash-heavy, income-light homeowner: a retiree, someone who sold a business, a person living on a portfolio, or an early-retired professional. Your balances are large. Your documented income is not. Lendmire is a broker, so every figure below is a typical ceiling or floor across select programs in its network, not an offer. Each file is underwritten individually.
Which Path Fits You: Assets Cover the Loan, or Assets Become Income?
Across our wholesale network, asset-based mortgages come in two designs, and a borrower is qualified on one path at a time. Mixing them is a common mistake we see.
The asset qualifier path. Eligible assets, after the credit percentages, must equal or exceed the entire loan amount. No employment or income is documented. Loans run up to $4,000,000, with leverage up to 80% on a purchase and 75% on a refinance of a principal residence or second home. Cash-out terms on this path are set lender by lender and are not published, so no cash-out figure belongs here. These specifics are subject to lender guidelines and a full review of property, leverage, and credit.
The asset depletion path. Eligible assets, after haircuts, are divided by 60 months to produce a monthly qualifying income. That income must carry the full housing payment and your other debts through the debt-to-income test. Loans run from $125,000 to $3,500,000. This is the path with a published cash-out ceiling, so it is the path this article is built around.
| Feature | Asset qualifier path | Asset depletion path |
|---|---|---|
| How you qualify | Assets cover the whole loan | Assets become monthly income |
| Income documented | None | Derived from assets |
| Loan range | Up to $4,000,000 | $125,000 to $3,500,000 |
| Refinance leverage | Up to 75% (primary or second home) | Up to 80% rate-and-term (primary or second home) |
| Cash-out leverage | Lender-set, not published | 60% |
All figures are typical ranges through select programs, subject to underwriting.
How Much Cash Can You Actually Take Out?
The answer comes from one formula, and the same formula applies to every borrower.
1. Start with the appraised value. The appraisal, not your estimate, sets the number.
2. Apply the cash-out ceiling. On the asset depletion path that is 60% for a principal residence, a second home, or an investment property.
3. Subtract what must be paid off. That means the existing first mortgage, any second liens or HELOC, and any costs rolled into the new loan.
4. What remains is your cash.
Percentages beat dollar examples here, because they show the shape. Say your home appraises at a value where 60% leaves room above your current balance. The gap is your gross cash. If your balance already sits near 60% of value, there is little or nothing to take. If your balance is above 60%, a cash-out is off the table, and you would be looking at a rate-and-term refinance instead (up to 80% on a primary residence or second home on this path, 65% on an investment property).
Two details catch people out.
The cap applies to the new total loan, not to your equity. A common misconception is that you can borrow 60% or 75% of your equity. You cannot. The ceiling is a share of the home’s value, and existing liens come out first.
A lower appraisal shrinks the cash at the same percentage. If the appraised value comes in lower, the maximum loan falls with it. Your cash falls by that drop multiplied by the loan-to-value percentage. Closing costs rolled into the loan reduce what reaches you as well.
The Two Limits: Equity and Qualification
Every cash-out has two ceilings, and asset depletion makes the second one visible.
The equity ceiling is the 60% loan-to-value cap just described. It decides the largest loan the collateral supports.
The qualification ceiling is what your verified assets can support. On the depletion path, your usable assets divided by 60 months produce an income. That income, run through the debt-to-income test, must carry the new payment. A bigger loan means a bigger payment, which needs more usable assets behind it.
So the binding limit is whichever is smaller. A homeowner with enormous equity but modest liquid assets hits the qualification ceiling first. A homeowner with a large portfolio but a heavily mortgaged home hits the equity ceiling first. Ask yourself which describes you before you chase a number.
Two minimums also apply on the depletion path. Qualified assets generally need to 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. If asset income only supplements documented income, it can be used up to a 45% debt-to-income ratio, and the minimum-assets rule is waived. Credit follows the lender’s score and loan-amount matrix, with a first-time investor on this path needing 700. A housing event needs 4 years of seasoning.
What Counts as an Asset?
Different assets count at different percentages, and the table you use depends on the path. Do not blend them.
| Asset type | Qualifier path | Depletion path |
|---|---|---|
| Brokerage accounts | 100% | 80% (securities) |
| Cash, savings, money market | 100% | 100% (cash accounts) |
| Certificates of deposit | 100% | 100% |
| 401(k) and IRA | 90% under 59½, 100% at 59½ or older | 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. Cryptocurrency, precious metals, collectibles, pledged or borrowed funds, and business accounts beyond your ownership share 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.
One point to watch: the dwelling securing the loan is not an asset for qualification purposes. The federal ability-to-repay rule allows a creditor to consider income or assets other than the value of the dwelling that secures the loan. Your equity is the collateral and the sizing limit. Your liquid assets are the evidence you can repay.
A Worked Example of the Depletion Math
Here is the sanctioned shape, offered as an illustration only. The lender’s own calculation governs.
Picture a borrower with $1,500,000 in securities and $300,000 in cash. Securities count at 80%, which is $1,200,000. Cash counts at 100%, which is $300,000. Usable assets total $1,500,000. Divide by 60 months and the monthly qualifying income is $25,000. That income then carries the housing payment and other debts through the debt-to-income test.
Compare the qualifier-path shape. An $800,000 loan is supported by $330,000 in brokerage accounts (100%), $300,000 in a 401(k) under 59½ (90%, so $270,000), and $200,000 in savings (100%). That counts $800,000 of usable assets, and the file is reviewed on assets alone. Same borrower profile, two entirely different tests.
Does Taking Cash Out Shrink the Assets Behind Your Loan?
Not through the loan itself, but be careful about how you plan to use the money. On the depletion path, cash-out proceeds never count as qualifying assets. You cannot borrow against the house and then count that cash to qualify for the same loan. The circularity is closed off by design.
Assets are counted, not sold. You do not liquidate your portfolio to qualify. But the funds for closing costs and any required payoffs still come from somewhere, and money moved or spent is no longer available to be counted. On this path the lender reviews the account statements as of the file date. Statements must be 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. On the qualifier path, the rule is 60 days of seasoning and two months of statements for each qualifying account.
Both paths document the assets. “No income documentation” never means “no documentation.”
Where Virginia Fits In
Virginia changes the framing, not the program. Consumer mortgage lending through Lendmire’s network is available to Virginia borrowers, and the figures above do not change by state. The deed of trust, recording, and local tax and insurance costs are Virginia facts that affect your net cash and payment, but they are context, not program parameters.
One caution on advice you may find online. Some lender pages claim Virginia restricts refinancing within a set window or caps the refinance amount. Those claims do not appear in the state’s lending practices statute, so do not rely on them. The limits you will actually meet come from program guidelines.
Also, “VA” can mean two things. Virginia is the state. A VA loan is a Veterans Affairs program with its own cash-out rules, and it is a different product.
Is Asset Depletion the Right Tool for a Rental?
Often it is not. Asset depletion is a consumer product designed for owner-occupied homes and second homes, with investment property handled on the depletion path at lower leverage (65% on purchase or rate-and-term, 60% on cash-out). If your goal is to pull cash from a rental, the cleaner route is usually DSCR financing. There, the property’s rent covers the payment and the loan is a business-purpose investor loan, reviewed differently from a standard owner-occupied mortgage. Qualification runs on property-level rental income covering the payment, subject to lender guidelines.
If you want the full picture, Lendmire’s complete DSCR loans guide walks through how those loans work.
The practical split looks like this:
| Your situation | Likely fit |
|---|---|
| Asset-rich retiree cashing out of a primary home | Asset depletion path |
| Seller of a business, income not yet documented | Asset qualifier or depletion path |
| Pulling cash out of a rental you own | DSCR cash-out |
| Income documented through deposits | Bank statement program |
Delayed financing is another option for cash purchasers, who can sometimes borrow back against a recent purchase. It follows a different set of rules and is worth a separate conversation.
Cash-Out Versus the Alternatives
Cash-out replaces your existing first mortgage with a new, larger one. The Consumer Financial Protection Bureau’s assessment of the ability-to-repay rule provides background on how non-qualified-mortgage lending works, and cash-out refinances in general carry higher balances than other refinances.
| Option | Best for | Main tradeoff |
|---|---|---|
| Asset depletion cash-out | Large assets, little earned income | 60% ceiling; replaces your first mortgage |
| HELOC or home equity loan | Keeping a low existing first mortgage | Second lien; separate qualification |
| Rate-and-term refinance | Changing terms, no cash needed | Up to 80% leverage, but no cash proceeds |
If your existing first mortgage is one you want to keep, a second-lien product may serve you better than replacing the whole loan. If your balance is above 60% of value, cash-out may not be available at all.
Key Terms Defined
Asset depletion: A method that converts eligible assets into a monthly qualifying income by dividing usable assets by 60 months.
Asset qualifier: A path where eligible assets must cover the entire loan amount, with no income documented.
Haircut: The percentage by which an asset’s balance is reduced when counted, such as 80% for securities.
Loan-to-value (LTV): The new loan amount divided by the home’s appraised value.
Seasoning: The time funds have sat in your accounts, shown by statements.
Debt-to-income (DTI): Your monthly debts, including the new payment, measured against your qualifying income.
What Can Go Wrong
- A low appraisal. It shrinks the maximum loan and the cash with it.
- Assets that do not count. Crypto, stock options, or borrowed funds will not carry the file unless converted to seasoned cash.
- Asset values moving. A drop in securities between application and closing lowers your qualifying income.
- Existing liens you forgot. A HELOC or second lien comes out of the cash first.
- Using the wrong path. A figure from one table applied to the other path will mislead you.
If your goal is a rental purchase and your existing balance already sits close to the ceiling, re-examine whether cash-out is the right tool at all. Tax treatment varies; consult a qualified professional.
Frequently Asked Questions
Is there a maximum dollar amount I can cash out?
No fixed dollar cap exists. The limit is the loan-to-value ceiling applied to the appraised value, minus payoffs and costs. On the asset depletion path the ceiling is 60%, and the loan itself must fall between $125,000 and $3,500,000, subject to underwriting.
How many assets do I need?
On the depletion path, qualified assets generally need to be at least the lesser of $1,000,000 or 1.25 times the loan balance. When assets are your only income source, the minimum is never less than $250,000 in liquid funds. These are typical network minimums, not offers.
Can I count my home equity as an asset?
Not for the home securing the loan. Real-estate equity from other property counts at 60% on the depletion path, subject to the lender’s review.
Does cash-out work with the asset qualifier path?
That is set by the lender and is not published, so no figure can be given. If cash-out is your goal, the depletion path is the one with a published ceiling.
Does Virginia have its own asset depletion rule?
No Virginia-specific asset depletion limit exists. The same program figures apply, and the limits come from lender guidelines.
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. Virginia investors still weighing how much equity to tap will find the constraint is rarely the state. It is the gap between a home’s loan balance and 60% of its appraised value.
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.
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References
2. Code of Virginia, Title 6.2, Chapter 4
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 Depletion Income Is Calculated From Your Portfolio · Can You Do a Cash-Out Refinance on an Asset Depletion Loan? · How Much Can a Retiree Borrow on a Jumbo Loan Using Asset Depletion?
Guides: Asset-Based Mortgage in Virginia
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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- Lendmire LLC · Firm NMLS# 2371349 · Verify firm licensure
Required disclosures. Lendmire (NMLS# 2371349) operates as a licensed mortgage broker, not a direct lender or depository. The discussion in this article is general in nature and should not be relied upon as financial, legal, or tax advice — every investment scenario is unique and should be reviewed by a qualified professional. Any loan inquiry is subject to lender underwriting, and this article is not a commitment to lend or a guarantee of approval. Mortgage rates, loan terms, and program guidelines vary by borrower, property, and state, and may change without notice. Equal Housing Opportunity. Verify licensure at NMLS Consumer Access.