The Quick Read: The best asset-based cash-out program for an athlete depends on where the money actually sits, because a signed contract is neither income nor an asset on these files, and only seasoned balances in documented accounts, plus the equity in the home, drive the structure, subject to lender guidelines. Cash-out is where the two asset-based paths split. The asset depletion path allows cash-out on a primary residence or second home, and on an investment property, at up to 60% loan-to-value, subject to underwriting.
- Contract value does not qualify the loan. Unpaid, deferred or future pay counts only after it lands in a regulated account and seasons.
- Asset qualifier path: eligible assets must cover the whole loan, and no employment or income is documented. The lender sets whether cash-out is allowed and at what leverage. That figure is not published.
- Asset depletion path: usable assets divided by 60 months become qualifying income that runs through the debt-to-income test. Cash-out tops out at 60% loan-to-value on a primary residence, second home or investment property.
- Cash-out proceeds never count as qualifying assets on the depletion path.
- Privately held company stock is not eligible on either path.
What Does “Asset-Based Cash-Out” Mean for an Athlete?
It means the loan is qualified on documented balances rather than on a paycheck. The lender looks at statements, not at the contract. That fits an athlete whose income comes in uneven pieces: signing money, deferred payments, a short career window, and a first-year contract that has not been paid.
Three different products get confused under this search, so separate them early.
- Asset-based mortgage. The borrower is reviewed on assets. This is the subject here. Lendmire’s asset-based mortgage programs are placed through select lenders in its wholesale network, and the loan is a consumer mortgage when the property is a primary residence or second home.
- Rental-cash-flow financing. The property’s rent carries the loan, and the borrower’s personal income is not the test. That is a different program for investors and is not covered here.
- Contract-advance loans. These are secured by a signed contract and repaid from future pay. They are not mortgages and do not use the home’s equity.
Mixing these up is a common reason an athlete asks for the wrong thing. A contract-advance loan is secured by future pay. A cash-out refinance is secured by the house. The risk, the cost logic and the exit are different, and the lender reviewing a mortgage file never underwrites a contract advance.
How Does Underwriting Treat a Contract?
It treats the contract as background, not as the basis for the loan. Headline contract value is not income. Pay that has not been received is not an asset. Across the wholesale network, the file turns on three things: what is in the accounts today, how long it has been there, and what the property will support.
Think of each piece of athlete pay by where it ends up.
| Item | How it shows up | Treatment on the file |
|---|---|---|
| Signed contract | Paper only | Context, not a qualifier |
| Paid salary | Cash in a bank account | Counts once seasoned |
| Signing bonus, received | Cash or investments | Counts once seasoned |
| Deferred pay | Not in an account | Not eligible on the depletion path |
| Stock options, unvested RSUs | Unexercised or unvested | Not eligible on the depletion path |
| Endorsement income | Deposits | Counts only as balances |
The point of that table is simple. The moment money sits in a regulated account with statements behind it, it becomes an asset. Until then it is a promise.
Seasoning is the quiet gate. On the asset qualifier path, each qualifying account needs 60 days of seasoning and two months of statements. On the asset depletion path, statements must be 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 on the depletion path. A fresh signing bonus parked in a new account last month is the file that gets sent back.
The Two Asset Paths, Side by Side
A borrower is qualified on one path at a time. Never blend the two tables.
| Factor | Asset qualifier | Asset depletion |
|---|---|---|
| What it tests | Assets cover the entire loan | Assets become monthly income |
| Income documented | None | Derived from assets, run through debt-to-income |
| Cash-out | Lender-set, not published | Up to 60% LTV |
| Property types | Primary residence, second home | Primary, second home, investment |
| Loan size | Up to $4,000,000 | $125,000 to $3,500,000 |
| Credit | 600 minimum | Lender’s matrix |
Leverage deserves its own read, because each figure belongs to one path and one property type, subject to underwriting.
- Qualifier path: up to 80% on a purchase and 75% on a refinance, on a principal residence or second home. No cash-out figure is published, so none is stated here.
- Depletion path, primary residence or second home: up to 80% on a purchase or rate-and-term refinance, and 60% on a cash-out refinance.
- Depletion path, investment property: up to 65% on a purchase or rate-and-term refinance, and 60% on a cash-out refinance.
The asset credit tables differ too. On the qualifier path, brokerage accounts, certificates of deposit, money market and savings count at 100%. Retirement accounts count at 90% under age 59½ and 100% at 59½ or older. 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%.
Which Path Fits Which Athlete?
The best program for your situation follows from the balance sheet. Use this as a selector.
- You hold a large liquid portfolio and want a modest loan. The qualifier path fits when eligible assets can equal or exceed the entire loan. If you want cash-out on that path, the lenders that will write it depend on the file, and the leverage is set by the lender.
- You have a large portfolio and a loan that is bigger than your assets. The depletion path fits. Assets are converted to income, and the debt-to-income test decides.
- Your wealth is mostly home equity. The depletion path’s 60% credit for real-estate equity helps, and the 60% cash-out ceiling still applies.
- You want cash-out on an investment property. Only the depletion path covers investment property, at up to 60% loan-to-value. A first-time investor on that path needs a 700 score.
- Most of your pay is deferred or still ahead. Neither path will count it. The route is to wait until it is paid, deposited and seasoned.
The depletion path also has a floor. 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 assets are the only income source. Asset-derived income can instead supplement documented income, up to a 45% debt-to-income ratio, and when it does, the minimum-assets rule is waived. An athlete with a steady documented contract salary may fit that supplemental route.
Worked Examples
These are shapes, not offers. The lender’s own calculation governs, and every figure is subject to underwriting.
Example 1: the liquid-heavy athlete on the qualifier path. Picture a player who wants an $800,000 loan on a primary residence. He holds $330,000 in brokerage accounts (100% counts, so $330,000), $300,000 in a 401(k) while under 59½ (90% counts, so $270,000), and $200,000 in savings (100% counts, so $200,000). Usable assets total $800,000. That equals the loan, so the file can qualify on assets alone, with no employment or income documented. No traditional personal-income documentation, pay stubs or employment verification are requested. The assets are still fully documented with statements, and the file is still fully underwritten.
Example 2: the securities-heavy athlete on the depletion path. Say a mid-career player holds $1,500,000 in securities (80% counts, so $1,200,000) plus $300,000 in cash (100% counts, so $300,000). Usable assets are $1,500,000. Divided by 60 months, that is $25,000 of monthly qualifying income. That income then has to carry the housing payment and other debts through the debt-to-income test. A cash-out here is capped at 60% loan-to-value, and the cash taken out does not count back toward the qualifying assets.
Example 3: the equity-rich athlete with thin liquidity. Suppose most of the net worth is in a paid-down home and a private business stake. The business stake does not count on either path. The home equity credits at 60% on the depletion path, but the cash-out ceiling is also 60%, so the plan tends to be circular. Converting part of the stake to a seasoned cash balance in a regulated account is the documented route, and that sale takes lead time before the file can go in.
Why Cash-Out Proceeds Do Not Rescue the File
Cash-out proceeds never count as qualifying assets on the depletion path. That closes the circular trick of pulling equity to fund the reserves that qualify the same loan. The brokered file that works counts the balances that existed before the refinance, seasoned, and treats the new cash as a separate pile.
The practical result is a netting problem. Before the athlete sees cash, the payoff of the existing loan, closing costs and any lender-required items come out. Plan the use of proceeds on the net, not on the headline equity figure.
Contract-Based Loan vs. Cash-Out Refinance
| Factor | Contract advance | Cash-out refinance |
|---|---|---|
| Secured by | Future contract pay | The home |
| Reviewed on | The contract | Assets, per path |
| Home equity used | No | Yes |
| Repaid from | Future pay | Monthly mortgage payment |
| Risk if career ends | Repayment depends on pay | Payment continues on the home |
The last row matters most. A mortgage payment keeps running after the playing career ends. Size the loan so the household can carry it from portfolio income, not from the next contract.
What About Investment Property and the Business-Purpose Question?
Investment property is covered only on the depletion path, and that loan is business-purpose. The test is the purpose of the loan, not a label. The Federal Register rulemaking on ability-to-repay treats investment-purpose loans as business-purpose loans. The CFPB’s Truth in Lending exam manual also lists credit to acquire or improve non-owner-occupied rental property as business-purpose credit.
The label does not settle it. Compliance Alliance notes that the loan’s purpose controls the exemption, and the facts have to fit. A home that the athlete or a family member will occupy may fail the investment test. If the house is a second home, it goes on the second-home track with its own leverage. Say plainly which one it is.
LLC vesting on the investment-property side depends on program guidelines, so confirm the structure with the broker before the title work starts.
Sequencing: Before or After the Next Contract?
Refinance on the balances you already hold, not the contract you expect. The sequence that keeps files clean looks like this.
1. Move paid bonus and salary money into regulated accounts and let it season. Seasoning is 60 days on the qualifier path and the 120-day statement rule on the depletion path.
2. Convert anything ineligible, such as cryptocurrency, precious metals, collectibles or business accounts beyond your ownership share, into a seasoned cash balance in a regulated account. Those asset classes are not published as eligible on either path, and the lender reviews the source.
3. Pick the path before you pick the cash-out amount. The path sets the ceiling.
4. Run the credit check against the lender’s matrix. The qualifier path publishes a 600 minimum. Housing history of 0x30x12 is the standard, and a single 30-day late in the last twelve months is considered case by case.
5. Gather statements in full, every page, for each account.
A trade, free agency or retirement does not change the asset test, but it can change the account activity that a lender asks to see explained. Large unexplained transfers draw questions.
When Not to Do It
An asset-based cash-out is the wrong tool in a few cases.
- The wealth is in deferred pay or unvested equity. Neither is eligible on the depletion path today.
- The use of cash is speculative. A loan secured by the home is not the place to fund something that cannot carry itself.
- The portfolio is the retirement plan. Retirement balances count at 70% on the depletion path at any age, and drawing the loan against the same portfolio that funds the next three decades leaves little margin.
- The loan is only needed for a short bridge. A bridge need is a different product.
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.
What to Prepare
- Full statements for every qualifying account, all pages, meeting the seasoning and statement-age rules for the path.
- Documentation of the source for any recent large deposit, such as a signing bonus or a sale.
- A credit profile review before application, with the lender’s matrix in mind.
- Property details, including whether it is a primary residence, second home or investment property.
- Entity documents if the title will be held through an entity on the investment-property side.
Key Terms Defined
Asset qualifier: the path where eligible assets, after credit percentages, must equal or exceed the entire loan, and no income is documented.
Asset depletion: the path where usable assets divided by 60 months become monthly qualifying income that runs through the debt-to-income test.
Seasoning: the length of time funds must sit in an account, shown by statements, before they count.
Haircut: the share of an asset’s balance that is not counted, such as the 20% that does not count on securities on the depletion path.
Debt-to-income (DTI): the share of monthly income that goes to housing and other debts.
Cash-out refinance: a new loan that pays off the old one and delivers the difference as cash to the borrower.
Frequently Asked Questions
Does my contract value count toward qualifying?
No. Contract value is not income and is not an asset on these files. Only balances that have been paid, deposited into a regulated account and seasoned count, at the credit percentages for the path. The contract may help explain the source of deposits, subject to underwriting.
Can the cash I take out count toward my assets?
Not on the depletion path. Cash-out proceeds never count as qualifying assets there. The assets that qualify the loan are the balances that existed and seasoned before the refinance.
Does a private company stake or a team ownership share count?
No. Privately held company stock is not an eligible asset on either path. The documented route is a sale or conversion to a seasoned cash balance in a regulated account, or the liquid assets you already hold: cash, public securities and retirement accounts, at their credit percentages.
Can a rookie qualify on a first contract?
Eligibility review depends on the balances, not the career stage. A rookie with a seasoned portfolio can fit one of the paths, and one without seasoned balances generally cannot. A first-time investor on the depletion path needs a 700 score for an investment property.
Does this work on an investment property?
Yes, on the depletion path only, at up to 60% loan-to-value on a cash-out, subject to underwriting. The qualifier path covers a primary residence or second home.
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. Consumer mortgage lending is available through select lenders in 16 states: Alabama, California, Colorado, Florida, Georgia, Indiana, Michigan, Montana, New Mexico, North Carolina, Ohio, Pennsylvania, Tennessee, Texas, Virginia and Washington. Lendmire is a mortgage broker, not a lender. This is not a commitment to lend.
Programs change, every file is underwritten individually, and a seasoned account balance will always do more for an athlete’s refinance than a bigger contract.
A deeper walk-through of investment-property equity extraction lives in Lendmire’s guide to cash-out refinance on an investment property.
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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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 – CFPB Ability-to-Repay and Qualified Mortgage Standards
2. CFPB – Truth in Lending Act exam manual
3. Compliance Alliance – Regulation Z and Investment Properties
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 to Go Fixed
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.