The Quick Read: Asset-based programs let a borrower with large balances and thin documented income qualify on the assets themselves, with no traditional personal-income documentation, pay stubs or employment verification. Through select programs, either the assets cover the entire loan, or they are converted into a monthly qualifying income that runs through a debt-to-income test. Every file is still fully underwritten, and the assets are documented with statements.
- Two paths exist, and a borrower is reviewed on one at a time: asset qualifier or asset depletion.
- Cash-out is a published feature of the depletion path, at up to 60% loan-to-value on a principal residence, second home or investment property.
- Cash-out proceeds never count as qualifying assets.
- Privately held company stock is not an eligible asset on either path.
- Every figure here is a ceiling or floor, subject to underwriting, not an offer.
What Does “Without Traditional Income Verification” Actually Mean?
It means the file leaves out tax returns, pay stubs and employment verification. It does not mean the file leaves out underwriting. Credit, the property, the appraisal and the assets themselves are all reviewed.
Think of it as swapping one kind of proof for another. A retiree with a seven-figure portfolio, a founder who just sold a company, or a household living on investment balances can show large, seasoned assets and almost no paycheck. A conventional file reads that profile as income-poor. An asset-based file reads it as asset-rich.
The phrase “no-doc” misleads. Statements for each qualifying account are required on both paths. The lender reviews where the money came from, how long it has sat there, and what the property is worth.
What Is an Asset-Based Cash-Out Refinance?
A cash-out refinance replaces the existing mortgage with a larger one and hands the borrower the difference. A home equity loan, by contrast, adds a second lien and leaves the first mortgage alone. An asset-based version changes only how the borrower qualifies. Instead of proving income, the borrower proves assets.
Lendmire, a mortgage broker, arranges these loans through select lenders in its wholesale network. The brokerage’s asset-based mortgage programs cover two distinct paths. The terminology online muddies this. “Asset depletion,” “asset qualifier,” “asset utilization” and “asset-only” get used interchangeably, sometimes for different products.
| Term people use | What it usually means |
|---|---|
| Asset qualifier | Assets alone must equal or exceed the whole loan |
| Asset depletion | Assets divided by 60 months become qualifying income |
| Asset utilization | Often a loose label for either path |
| Asset-only | Usually the qualifier path |
The Two Paths, Side by Side
The asset qualifier path asks one question: do eligible assets, after the credit percentages, equal or exceed the entire loan? If yes, no employment or income is documented. The asset depletion path asks a different one: can usable assets, divided by 60 months, produce enough monthly income to carry the housing payment and other debts?
A borrower is qualified on one path at a time. The paths never blend.
| Factor | Asset qualifier | Asset depletion |
|---|---|---|
| Core test | Assets cover the whole loan | Assets become monthly income |
| Income documented | None | Derived from assets |
| Debt-to-income test | Not applied; ability-to-repay review rests on assets | Applied to derived income |
| Loan amounts | Up to $4,000,000 | $125,000 to $3,500,000 |
| Credit | 600 minimum score | The lender’s matrix |
| Cash-out | Set by the lender, not published | Published, up to 60% LTV |
Which Assets Count, and How Much?
Each path credits balances differently, so name the path before reading any percentage. On the qualifier path, brokerage accounts, certificates of deposit, money market and savings count at 100%. Retirement balances count at 90% under age 59½ and 100% at 59½ or older. Accounts combine.
On the depletion path, cash accounts and certificates of deposit count at 100%, securities at 80%, retirement accounts at 70% at any age, and real-estate equity at 60%.
| Asset | Qualifier path | Depletion path |
|---|---|---|
| Brokerage / securities | 100% | 80% |
| Cash, savings, money market | 100% | 100% |
| Certificates of deposit | 100% | 100% |
| 401(k) / IRA | 90% under 59½, 100% after | 70% any age |
| Real-estate equity | Not listed | 60% |
Several things do not count. 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 are ineligible.
Privately held company stock is not an eligible asset on either path. A founder’s route is documented liquid assets: seasoned proceeds from a sale or buyout, cash, public securities and retirement accounts at their percentages. Cryptocurrency, precious metals, collectibles, pledged or borrowed funds and business accounts beyond the borrower’s ownership share are not published as eligible either. The documented route is converting them to a seasoned cash balance in a regulated account, with the source reviewed by the lender.
How Is a File Underwritten, Step by Step?
1. Pick the path. Assets that cover the loan outright point to the qualifier. Assets that must produce income point to depletion.
2. Check credit. The qualifier path publishes a 600 minimum score. The depletion path follows the lender’s matrix, and a first-time investor on that path needs 700. Housing history is 0x30x12, though one 30-day late in the last twelve months is considered case by case. Multiple bankruptcies are not eligible.
3. Season the assets. The qualifier path wants 60 days of seasoning and two months of statements per qualifying account. The depletion path wants statements at least 120 days old at application plus the most recent statement within 45 days. Sale-of-business, inheritance and legal-settlement funds are excused from that seasoning.
4. Apply the credit percentages or haircuts. The result is usable assets.
5. Test the result. Qualifier: usable assets must equal or exceed the loan. Depletion: usable assets divided by 60 months must carry the payment and debts.
6. Appraise and size the loan. Value sets leverage, which is where the paths differ most.
The depletion path also has minimums. Qualified assets must be at least the lesser of $1,000,000 or 1.25 times the loan balance, and never below $250,000 liquid when depletion is the only income source. Asset-derived income can also supplement documented income up to a 45% debt-to-income ratio, and then the minimum-assets rule is waived.
Worked Examples
Qualifier path: a borrower seeks an $800,000 loan. Brokerage accounts of $330,000 count at 100%, which is $330,000. A 401(k) of $300,000 under 59½ counts at 90%, which is $270,000. Savings of $200,000 count at 100%, which is $200,000. Usable assets total $800,000, matching the loan, so the file is reviewed on assets alone, subject to underwriting.
Depletion path: $1,500,000 in securities counts at 80%, which is $1,200,000. Add $300,000 in cash at 100%. Usable assets are $1,500,000. Divided by 60 months, that is $25,000 of monthly qualifying income, which must then carry the housing payment and other debts through the debt-to-income test.
The lender’s own calculation governs both.
How Much Cash Can You Take Out?
The two paths answer this differently, and that explains why sources online disagree. On the qualifier path, leverage is up to 80% on a purchase and 75% on a refinance of a principal residence or second home. Whether cash-out proceeds are allowed there, and at what leverage, is set by the lender and not published. Treat any specific qualifier-path cash-out figure you see elsewhere with suspicion.
The depletion path is explicit. Principal residence and second home go up to 80% on a purchase or rate-and-term refinance and 60% on a cash-out refinance. Investment property goes up to 65% on a purchase or rate-and-term refinance and 60% on a cash-out.
One rule matters for planning: cash-out proceeds never count as qualifying assets. The money you pull out cannot be used to satisfy the asset test for the same loan.
Where the General Rule Breaks
Edge cases decide more files than the headline percentages do.
- Privately held stock. Not an eligible asset on either path, whatever the balance sheet says.
- A first-time investor. The depletion path needs a 700 score.
- Housing events. A foreclosure or similar event needs 4 years of seasoning on the depletion path.
- Big deposits. Money that arrives recently from an unclear source can stall a file, except the excused categories above.
- Mixed profiles. A retiree with a pension and a portfolio may fit the depletion path as a supplement, with income counted up to the 45% ratio.
- Retirement age. The 59½ line changes the qualifier-path credit from 90% to 100%.
Investment property needs its own note. Assets-only qualification is not offered there on the qualifier path. On the depletion path, an investment property loan is business-purpose, and that is the only route this program describes for it. Loans on non-owner-occupied investment properties are reviewed differently from a standard owner-occupied mortgage. The CFPB’s Truth in Lending exam manual treats credit to acquire or improve non-owner-occupied rental property as business-purpose credit, and the Federal Register rulemaking treats investment-purpose loans the same way. A principal residence or second home loan here is a consumer mortgage, and its standard consumer disclosures apply.
Which Path Fits Which Borrower?
| Borrower | Likely fit |
|---|---|
| Retiree with large liquid balances | Qualifier if balances cover the loan; depletion if they must produce income |
| Founder after a business sale | Depletion, using sale proceeds that are excused from seasoning |
| Household living on a portfolio | Depletion, with securities at 80% |
| Self-employed with strong deposits | Bank statement program, which documents income with deposits |
| Landlord buying rentals on rent coverage | DSCR |
The decision is mostly arithmetic. If usable assets equal the loan, the qualifier path is cleaner. If they do not, depletion lets a smaller pool work harder, at a lower leverage ceiling on cash-out.
What Are the Real Trade-Offs?
Honest downsides exist. This is a non-QM style of lending, and pricing differs from standard loans, which is why the brokerage does not quote it here. Asset-based files also need more statement paperwork than people expect. Deposits from the sale of a business or an inheritance get reviewed closely.
Leverage is the other cost. A 60% cash-out ceiling on the depletion path leaves less equity available than many borrowers assume. Reserves matter too: none are required on the qualifier path at or below 75% loan-to-value, and above that the lender sets them. The exact numbers vary by lender and program and follow a full review of property, leverage, and credit.
Alternatives deserve a look before committing. A home equity line, a securities-backed line, a bridge loan or selling assets can each raise cash without a new first mortgage, and each carries its own rules. A borrower with a low-rate first mortgage may not want to replace it at all. This is the flip point: if you do not need the full cash-out and your current loan is cheap, a second lien may serve you better.
Key Terms Defined
Asset qualifier: A path where eligible assets, after credit percentages, must equal or exceed the entire loan amount.
Asset depletion: A path that divides usable assets by 60 months to create a monthly qualifying income.
Haircut: The share of an asset’s balance that is not counted toward qualifying.
Seasoning: The time funds must have been in an account, shown by statements, before they count.
Cash-out refinance: A new, larger first mortgage that pays off the old one and returns the difference as cash.
Frequently Asked Questions
Do asset-based loans really skip all documentation?
No. They skip traditional personal-income documentation, pay stubs and employment verification. The assets are documented with statements, credit is reviewed and the property is appraised. Every file is fully underwritten, subject to lender guidelines.
Can I use my 401(k) or IRA?
Yes, at a reduced credit. On the qualifier path, balances count at 90% under age 59½ and 100% at 59½ or older. On the depletion path they count at 70% at any age. Terms are subject to underwriting.
Does private company stock count toward qualifying?
No. The documented route is a sale or buyout whose proceeds are converted to a seasoned cash balance.
Can the cash I pull out count as an asset?
No. On the depletion path, cash-out proceeds never count as qualifying assets. Plan the asset test around balances you already hold.
Is this available in every state?
No. The brokerage’s consumer lending runs in 16 states: Alabama, California, Colorado, Florida, Georgia, Indiana, Michigan, Montana, New Mexico, North Carolina, Ohio, Pennsylvania, Tennessee, Texas, Virginia and Washington.
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. Programs change, qualification is subject to lender guidelines, and none of this is a commitment to lend.
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 the lender underwrites every file. Scotsman Guide named Lendmire a Top Mortgage Workplace in both 2025 and 2026.
Investors weighing their equity options can start with Lendmire’s guide to cash-out refinance on an investment property.
Get Started
Ready to find the right loan for you?
See your offer in seconds. No credit pull, no obligation.
Informational only. Not a Loan Estimate, approval, or commitment to lend. Program availability and eligibility are subject to lender guidelines, credit approval, property review, and underwriting.
References
1. CFPB Truth in Lending Act exam manual
2. Federal Register, ATR/QM final 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: Asset-Based Cash-Out Refinance Requirements With No Income Verification · Best Asset-Based Cash-Out Refinance Program When Your Income Is Lower Than Before
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
- Mortgage Loan Originator · NMLS# 1129696 · Verify on NMLS Consumer Access
- North Carolina Real Estate Broker · License# 343312 · Verify on NCREC
- North Carolina Insurance Producer · License# 19053198 · Property, Casualty, Life, Health · Verify on NAIC SBS
- Lendmire LLC · Firm NMLS# 2371349 · Verify firm licensure
Disclosures. The information presented in this article is general market commentary, not financial, legal, or tax advice. Lendmire is a mortgage brokerage (NMLS# 2371349) — not a direct lender or depository institution — and loan placement is subject to lender underwriting. Nothing in this content represents a commitment to lend. Loan terms, pricing, and program availability vary based on borrower qualifications, property characteristics, and state of subject property, and are subject to change at any time. Lendmire complies with Equal Housing Opportunity requirements. Consumer access: nmlsconsumeraccess.org.