The Quick Read: The best program for your situation depends on how your wealth is held: the asset qualifier path counts eligible balances against the entire loan with no income documented, while the asset depletion path turns balances into monthly income, and either way you provide statements instead of tax returns, pay stubs or employment verification. Every file is fully underwritten, and the figures below are ceilings and floors through select programs, subject to underwriting, not offers.
- Asset qualifier path: eligible assets must equal or exceed the whole loan, up to $4,000,000, with up to 75% loan-to-value on a refinance of a principal residence or second home.
- Asset depletion path: usable assets divided by 60 months become qualifying income, with cash-out up to 60% loan-to-value on a principal residence, second home or investment property.
- Cash-out proceeds never count as qualifying assets on the depletion path, so the money you pull out cannot help you qualify.
- Privately held company stock is not an eligible asset on either path.
- You are never on both paths at once. These specifics are subject to lender guidelines and a full review of property, leverage, and credit.
What Is an Asset-Based Cash-Out Refinance?
An asset-based cash-out refinance replaces your current mortgage with a larger one and hands you the difference in cash. It is reviewed around what you own rather than what you earn. The lender looks at statements for brokerage accounts, savings, certificates of deposit and retirement funds. It does not ask for traditional personal-income documentation.
That makes it a fit for a specific kind of borrower. Think of a retiree living off a portfolio, someone who sold a business, an heir who received an inheritance, or a professional who retired early. Their balances are large and their documented income is small or uneven.
“Minimal documentation” needs an honest reading. You skip the income paperwork. You do not skip paperwork. Asset statements, credit, an appraisal, title and payoff details all still apply. You swap one stack of documents for another.
Lendmire is a mortgage broker, not a lender. It arranges asset-based mortgage programs through select lenders in a wholesale network. Consumer mortgage lending is licensed in 16 states: Alabama, California, Colorado, Florida, Georgia, Indiana, Michigan, Montana, New Mexico, North Carolina, Ohio, Pennsylvania, Tennessee, Texas, Virginia and Washington. The program is not available outside those states.
How Underwriting Treats the File, Step by Step
Underwriting an asset-based file follows a set order. The lender first decides which path fits, then counts your assets, then tests the loan against value and leverage limits. Knowing the order tells you what to gather before you apply.
1. Pick the path. If your eligible assets can cover the entire loan amount, the asset qualifier path may apply. If they cannot, the asset depletion path converts them into income instead.
2. Count the assets. Each account type gets a percentage. The lender totals only the counted share of each balance.
3. Check the seasoning. Seasoning means how long the money has sat in the account. The qualifier path wants 60 days and two months of statements for each qualifying account. The depletion path wants statements at least 120 days old at application, plus the most recent statement within 45 days.
4. Apply the leverage limit. The appraised value and your path set the maximum loan-to-value (LTV), which is the loan amount divided by the property’s value.
5. Review credit. The lender pulls your credit and looks at your housing payment history.
6. Run the income test, if you are on the depletion path. Derived income must carry the new housing payment and your other debts.
7. Confirm the cash-out. Payoff of the old loan and costs come out first. What remains is yours, within the leverage limit.
On the qualifier path no employment or income is documented. The lender’s review of whether you can repay rests on the assets.
The Two Paths Side by Side
The paths differ in how they use your assets, how much they lend and how they treat cash-out. Compare them here before you pick a direction.
| Factor | Asset qualifier path | Asset depletion path |
|---|---|---|
| How assets are used | Must cover the whole loan | Become monthly income |
| Loan amount | Up to $4,000,000 | $125,000 to $3,500,000 |
| Refinance leverage | Up to 75% (primary or second home) | Rate-and-term: 80% primary or second home, 65% investment |
| Cash-out leverage | Set by the lender, not published | 60% on all three occupancies |
| Credit | 600 minimum score | The lender’s matrix |
| Income testing | None documented | Debt-to-income test |
The depletion path also allows up to 80% on a purchase of a principal residence or second home, and up to 65% on a purchase of an investment property. Cash-out is the tighter line on both occupancies.
The qualifier path allows up to 80% on a purchase and 75% on a refinance of a principal residence or second home. Whether it permits cash-out proceeds, and at what leverage, is the lender’s call. That is a question to settle before you build a plan around it.
Which Assets Count, and How Much
Every asset type carries a percentage, and each path has its own table. The percentage is the share of each balance the lender counts toward qualifying. Read only the table for the path you are on, and never blend the two.
Asset qualifier path: share of each balance that counts.
| Asset | Share that counts |
|---|---|
| Brokerage accounts | 100% |
| Certificates of deposit | 100% |
| Money market and savings | 100% |
| 401(k) or IRA, under age 59½ | 90% |
| 401(k) or IRA, 59½ or older | 100% |
On this path, accounts combine, so you can add balances across types to reach the loan amount.
Asset depletion path: share of each balance that counts.
| Asset | Share that counts |
|---|---|
| Cash accounts | 100% |
| Certificates of deposit | 100% |
| Securities | 80% |
| Retirement accounts (any age) | 70% |
| Real-estate equity | 60% |
Several things do not count on the depletion path at all. They include 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 to convert them into a seasoned cash balance in a regulated account. The lender then reviews where the money came from.
A Worked Example for Each Path
These examples are illustrative, and the lender’s own calculation governs. Run the numbers on the qualifier path first.
Say you need an $800,000 loan. You hold $330,000 in brokerage accounts, which count at 100%, so $330,000. You hold $300,000 in a 401(k) and you are under 59½, so it counts at 90%, which is $270,000. You also hold $200,000 in savings at 100%, so $200,000. The sum of $330,000, $270,000 and $200,000 is $800,000 of usable assets, which equals the entire loan amount. The file is reviewed on assets alone, subject to underwriting, with no income documented.
Now the depletion path. Say you hold $1,500,000 in securities, which count at 80%, so $1,200,000. You also hold $300,000 in cash at 100%. That adds up to $1,500,000 of usable assets. Divide by 60 months and you get $25,000 of monthly qualifying income. That income then has to carry the new housing payment and your other debts through the debt-to-income test.
Two follow-up checks apply on the depletion path. Qualified assets must reach the lesser of $1,000,000 or 1.25 times the loan balance, so the loan amount sets the bar your usable assets must clear. When asset depletion is your only income source, you also need at least $250,000 in liquid assets.
What You Skip and What You Still Provide
You skip personal income paperwork. You do not skip underwriting. Here is the split.
What you skip:
- Tax returns
- Pay stubs
- Employment verification
What you still provide:
- Statements for every qualifying account, with the seasoning described above
- A credit authorization and a clean housing payment history
- An appraisal of the property
- Title and payoff information for your existing loan
- Where the funds came from, if a large deposit appears in recent statements
On the depletion path, funds from a business sale, an inheritance or a legal settlement are excused from the 120-day statement seasoning. That helps someone whose money just arrived. The lender still reviews the source.
The Cash-Out Layer: Where Leverage Tightens
Cash-out is where the two paths diverge most. A rate-and-term refinance and a cash-out refinance can sit at different leverage ceilings, and on the depletion path the cash-out limit is the lower one.
On the depletion path the cash-out ceiling is 60% on a principal residence, second home or investment property. A primary residence can go higher on a purchase or rate-and-term refinance, at 80%. Cash-out gives that up for a lower limit. Plan the proceeds around the lower number.
Your qualifying balances must come from what you already hold, not from what the loan puts in your account. If you were counting on the new cash to bolster your balances, remove it from the math.
The qualifier path adds one more wrinkle. Reserves are not required at or below 75% LTV, and above that the lender sets them. That makes the leverage limit worth knowing before you ask for more cash. Terms depend on the lender’s guidelines, the property type, the leverage, and a full review of the credit profile.
Tax treatment can depend on how the funds are used and how the property is held; borrowers should keep clear records and speak with a qualified tax professional before relying on any deduction.
Where the General Rule Breaks
Retirement accounts under 59½. On the qualifier path a 401(k) or IRA counts at 90% under that age and 100% once you reach 59½. On the depletion path retirement accounts count at 70% at any age. The same balance gets different credit depending on the path.
Supplementing documented income. If you do have other income, asset-derived income can supplement it up to a 45% debt-to-income ratio. When it supplements, the minimum-assets rule is waived. A pension plus a large portfolio is a classic fit.
First-time investors. On the depletion path, buying or refinancing an investment property as a first-time investor requires a 700 score. Other borrowers follow the lender’s matrix.
Housing events. A foreclosure, short sale or similar event needs 4 years of seasoning on the depletion path. Multiple bankruptcies are not eligible. One 30-day late in the last twelve months is considered case by case.
Investment property. Only the depletion path covers it, at 65% on a purchase or rate-and-term refinance and 60% on cash-out. Because the loan is business-purpose, it is reviewed differently from a standard owner-occupied mortgage. The Federal Register notice on the 2013 ability-to-repay rule places business-purpose loans outside that rule. The CFPB’s Truth in Lending reference treats credit to acquire or improve non-owner-occupied rental property as business-purpose. A Compliance Alliance bulletin adds that the purpose of the loan, not the property type, is the general focus.
Founders and shareholders. Privately held company stock is not an eligible asset on either path. If your net worth sits in a closely held business, the route is a sale or buyout, converted to a seasoned cash balance.
How to Find the Best Asset-Based Cash-Out Program for Your Situation
The best program for your situation depends on your property type, credit profile, leverage need and how your assets are held. No single program wins for everyone. Across the wholesale network Lendmire works with, programs differ on overlays, so the same file can look strong at one lender and weak at another.
That is the case for working with a broker. A broker shops multiple wholesale lenders and matches the scenario to the program. The match turns on a few facts, which this table lays out by borrower profile.
| Your profile | Route to look at first |
|---|---|
| Large balances, income-light, cash-out on your home | Asset depletion path |
| Balances exceed the loan, want no income testing | Asset qualifier path |
| Buying or refinancing a rental financed on its rent | DSCR program (property-income rules) |
| Self-employed with strong deposits | Bank statement program |
| Want a smaller line against equity | HELOC (that product’s own rules) |
A bank statement program is built for borrowers who document income through deposits. Business-purpose rental financing runs through DSCR, which qualifies primarily on property-level rental income covering the payment, subject to lender guidelines. Each of those programs has its own rules and its own paperwork.
Before you commit, ask three questions. Does the path you need allow cash-out, and at what leverage? How does the lender count each of your accounts? Will your seasoning meet the program’s statement rules?
Key Terms Defined
Asset qualifier path: The route where your eligible assets, after the credit percentages, must equal or exceed the entire loan.
Asset depletion path: The route where usable assets divided by 60 months become qualifying income.
Haircut: The share of an account’s value a lender does not count, such as the 20% held back on securities.
Seasoning: How long funds have sat in an account, or how long an event has passed, before a lender will count it.
Debt-to-income ratio: Your monthly debts divided by your monthly income, which the depletion path runs on derived income.
Business-purpose loan: A loan taken for business or investment use, such as financing a rental property.
Frequently Asked Questions
Can I use privately held company stock to qualify?
No. The route for a founder or shareholder is documented liquid assets: seasoned proceeds from a sale or conversion, cash, public securities and retirement accounts at their haircuts.
Does minimal documentation mean no underwriting?
No. Every file is fully underwritten. You skip traditional personal-income documentation, pay stubs and employment verification, but you provide account statements, credit, an appraisal and payoff and title details. Qualification is subject to underwriting and lender guidelines.
Can I count the cash-out money toward my assets?
No. Cash-out proceeds never count as qualifying assets on the depletion path. You qualify on what you hold before the loan, and the proceeds come after.
How much can I borrow?
It depends on the path. The qualifier path goes up to $4,000,000, and the depletion path runs from $125,000 to $3,500,000. Leverage limits, credit and your asset totals set the actual amount.
Can I get a loan with a credit score of 600?
Possibly, on the qualifier path, where 600 is the published minimum score. The depletion path follows the lender’s score and loan-amount matrix. A housing history with no late payments in the last twelve months helps on both. The exact numbers vary by lender and program and follow a full review of property, leverage, and credit.
Your 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 options based on your statements, the property, credit profile, leverage, and your goals. Gather your recent account statements and your current mortgage details first, and a broker can show you which path fits before you apply anywhere.
For how equity extraction works on an investment property, see Lendmire’s guide to cash-out refinance on an investment property.
About Lendmire
As a mortgage broker (NMLS# 2371349), Lendmire helps self-employed and high-net-worth borrowers in 16 states qualify on bank statements, a profit-and-loss statement, 1099s or liquid assets instead of tax returns, through wholesale lenders. Lendmire is never the lender; program terms are set by the lender and its guidelines. Scotsman Guide named Lendmire a Top Mortgage Workplace in both 2025 and 2026.
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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. Federal Register, Ability-to-Repay and Qualified Mortgage Standards
2. CFPB Truth in Lending Act reference
3. Compliance Alliance bulletin
This article is part of Lendmire’s asset-based mortgage program — full qualification details, guidelines, and scenarios live on the program page.
Related reading: Best Asset-Based Cash-Out Refinance Program Before Six Months on Title · Best Asset-Based Cash-Out Refinance Program Using Retirement Accounts to Qualify
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.