The Quick Read: The right program for your situation comes down to one choice. You either let eligible assets cover the entire loan on the asset qualifier path, or you convert them into monthly qualifying income on the asset depletion path, which is the path with published cash-out leverage of 60% on a principal residence, second home or investment property. Both are fully underwritten, and both are placed through select lenders in Lendmire’s wholesale network, subject to underwriting. The exact numbers vary by lender and program and follow a full review of property, leverage, and credit.
- Qualifier path: your eligible assets, after the credit percentages below, must equal or exceed the whole loan. No employment or income is documented.
- Depletion path: usable assets divided by 60 months become your monthly income. That income then carries the housing payment and your other debts through a debt-to-income test.
- Cash-out proceeds never count as qualifying assets on the depletion path.
- Privately held company stock is not an eligible asset on either path.
- Every figure here is a ceiling or a floor, not an offer. You are qualified on one path at a time.
What Does an Asset-Based Cash-Out Refinance Actually Do?
The lender reviews your file on what you own instead of what you earn. You do not provide traditional personal-income documentation, pay stubs or employment verification.
That does not mean no underwriting. Your credit, the property, the appraisal, title and your statements are all reviewed. What changes is the proof of repayment. A paycheck is replaced by documented savings, brokerage accounts and similar holdings.
Lendmire’s asset-based mortgage programs are built for borrowers whose balances are large and whose documented income is small. Think of a retiree living off a portfolio, someone who sold a business, an heir who just received an inheritance, or an early-retired professional. These programs are available through Lendmire in 16 states: Alabama, California, Colorado, Florida, Georgia, Indiana, Michigan, Montana, New Mexico, North Carolina, Ohio, Pennsylvania, Tennessee, Texas, Virginia and Washington.
The industry uses several labels for this idea: asset-based, asset qualifier, asset depletion and asset utilization. They overlap, and lenders do not use them the same way. Broker-technology education such as Morty’s asset depletion explainer describes the core idea as using cash and brokerage holdings as qualifying income instead of traditional personal-income documentation. Inside Lendmire’s network, the two paths below are the ones that matter.
Which Path Fits You: Assets Cover the Loan, or Assets Become Income?
Start with the size of your balances relative to the loan you want. If your usable assets equal or exceed the entire loan, the qualifier path is the cleaner fit. If they do not, but they are large enough to produce meaningful monthly income, the depletion path may fit.
| Factor | Asset qualifier path | Asset depletion path |
|---|---|---|
| Test | Assets cover the whole loan | Assets ÷ 60 months = income |
| Income documented | None | Derived income, DTI test |
| Purchase leverage | Up to 80% | Up to 80% (65% investment) |
| Refinance leverage | Up to 75% | 80% rate-and-term (65% investment) |
| Cash-out leverage | Lender-set, not published | 60% on all property types |
| Loan amounts | Up to $4,000,000 | $125,000 to $3,500,000 |
| Property types | Principal residence, second home | Also investment property |
Read the table with care. On the depletion path, 80% applies to a purchase or rate-and-term refinance of a principal residence or second home, and 65% applies to the same transactions on an investment property. The 60% cash-out figure applies to all three occupancy types on that path. Final terms depend on the lender’s guidelines, the property type, and the borrower’s complete credit picture.
On the qualifier path, the refinance figure is 75% for a principal residence or second home. Whether cash-out proceeds are allowed on that path, and at what leverage, is set by the lender and is not published. A borrower who needs cash out should plan around the depletion path’s 60% unless a lender confirms otherwise for a specific file.
All of these figures apply through select programs and are subject to underwriting.
How Does Underwriting Treat Your Assets, Step by Step?
Here is the sequence Lendmire sees on these files, from first look to final review.
1. Choose the path. The qualifier path asks whether your eligible assets equal the loan. The depletion path asks whether the income produced from your assets carries the payment.
2. Apply credit percentages. Each asset type counts at a share of its balance. A brokerage account counts differently than a retirement account.
3. Season the funds. On the qualifier path, funds must be in place for 60 days, with two months of statements for each qualifying account. On the depletion path, 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 depletion-path seasoning.
4. Review credit. The qualifier path publishes a 600 minimum score. The depletion path follows the lender’s score and loan-amount matrix. A first-time investor on the depletion path needs a 700 score.
5. Review housing history. The target is 0x30x12, meaning no 30-day late payments on housing in the last twelve months. One 30-day late is considered case by case. Multiple bankruptcies are not eligible. A housing event such as a foreclosure needs 4 years of seasoning on the depletion path.
6. Appraise the property and order title. Cash-out is sized against appraised value, not against what you paid.
7. Run the math. On the depletion path, the lender divides usable assets by 60 months and runs the result through the debt-to-income test.
The assets are documented on both paths. The loan is reviewed on verified assets rather than income documentation, subject to lender guidelines.
Reserves also differ by path. The qualifier path requires none at or below 75% loan-to-value, and above that the lender sets them. The depletion path has no published reserve months.
What Counts as a Liquid Asset?
Cash and public-market holdings count. Business interests, crypto and collectibles do not count directly. The percentages differ by path, so never read one column as if it were the other.
| Asset | Qualifier path | Depletion path |
|---|---|---|
| Brokerage accounts / securities | 100% | 80% |
| Cash, savings, money market | 100% | 100% (cash accounts) |
| Certificates of deposit | 100% | 100% |
| Retirement (401(k), IRA) | 90% under 59½, 100% at 59½+ | 70% at any age |
| Real-estate equity | Not listed | 60% |
Accounts combine, so you can mix brokerage, savings and retirement balances toward the total.
Retirement accounts
Retirement balances count, but they count for less. On the qualifier path, a 401(k) or IRA counts at 90% if you are under 59½ and at 100% once you reach 59½. On the depletion path, retirement accounts count at 70% at any age. If you are younger than 59½ with a large retirement balance, the qualifier path is often the gentler treatment, subject to underwriting. Tax treatment varies by account and situation, so consult a qualified professional before relying on any particular strategy.
Business stock, crypto and other holdings
Privately held (closely held) company stock is not eligible on either path. The route for a founder or shareholder is documented liquid assets: a sale or buyout converted into a seasoned cash balance. Depletion-path sale proceeds are excused from the standard seasoning window, as noted above.
Cryptocurrency, precious metals, collectibles, business accounts beyond your ownership share, and pledged or borrowed funds are not published as eligible on either path. The documented route is to convert them to a seasoned cash balance in a regulated account, with the source reviewed by the lender.
The depletion path also excludes 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. If your wealth sits in these forms, the practical step is usually to restructure it into regulated accounts well before applying.
Two Worked Examples
These examples show the arithmetic. The lender’s own calculation governs on a real file.
Qualifier path. Picture a borrower seeking an $800,000 loan. She holds $330,000 in brokerage accounts, which count at 100%, or $330,000. She holds $300,000 in a 401(k) and is under 59½, so it counts at 90%, or $270,000. She holds $200,000 in savings, which counts at 100%, or $200,000. Usable assets total $800,000, which equals the loan, so she is reviewed on assets alone, subject to underwriting. No income is documented.
Depletion path. Now take a borrower with $1,500,000 in securities and $300,000 in cash. The securities count at 80%, or $1,200,000. The cash counts at 100%, or $300,000. Usable assets are $1,500,000. Divided by 60 months, that produces $25,000 of monthly qualifying income. That income must then carry the housing payment and other debts through the debt-to-income test. If it does, the deal works forward, subject to underwriting.
Notice what is missing from both examples. The cash you receive from the refinance never joins the asset pool. On the depletion path, cash-out proceeds never count as qualifying assets, so you cannot borrow against your home and then use that cash to qualify for the loan.
Where the Depletion Path Has Minimums
Income-from-assets only works when the pile is big enough. On the depletion path, qualified assets must be at least the lesser of $1,000,000 or 1.25 times the loan balance. When asset depletion is your only source of income, assets can never be below $250,000 liquid.
There is a useful exception. If you also have documented income, asset-derived income may supplement it up to a 45% debt-to-income ratio. When assets supplement documented income, the minimum-assets rule is waived. A part-time consultant or someone with pension income might fall in this category, subject to lender guidelines.
Where the General Rule Breaks: Edge Cases
Cash-out on a rental or investment property. Investment property is eligible only on the depletion path, at up to 60% on a cash-out, and the loan is business-purpose. A business-purpose loan is reviewed differently from a standard owner-occupied mortgage. The CFPB explains that its ability-to-repay rule at Regulation Z § 1026.43 does not apply to credit extended primarily for a business purpose, even when a dwelling secures it. In practice, keep cash-out proceeds tied to business use and keep your occupancy facts clean.
Principal residence or second home. These are consumer-purpose loans, so consumer mortgage disclosure rules, including TRID, apply. That is one reason these loans rest on documented assets rather than unverified claims.
Credit events. Multiple bankruptcies are not eligible. A single housing event needs the 4-year seasoning on the depletion path. One late mortgage payment in the last twelve months is considered case by case.
Small asset pools. A borrower with $400,000 of liquid assets and a large loan request will likely fail both tests. The qualifier path needs assets to match the loan. The depletion path needs the lesser of $1,000,000 or 1.25 times the loan, with a $250,000 floor.
No-job timing. Having no job is not a barrier by itself, because neither path documents employment on the qualifier side or requires a paycheck on the depletion side. But a recent large deposit with an unclear source can stall a file, so keep a paper trail.
How Does It Compare to the Alternatives?
Other products can also put cash in your hands without a job. Each has different rules and different trade-offs, and each program’s rules belong to that program alone.
| Option | Needs job income? | Uses liquid assets? | Fits best when |
|---|---|---|---|
| Asset-based cash-out refinance | No | Yes, central | Large balances, little income |
| HELOC or second lien | Depends on lender | Sometimes | Keeping an existing first mortgage |
| DSCR loan (business-purpose rental) | No, rent is tested | Reserves only | Cash-out on a rental that earns rent |
| Bank statement loan | Income shown by deposits | No | Self-employed with strong deposits |
| Selling assets | No | Sells them | Debt-free preference, no loan wanted |
The bank statement program is for borrowers who document income through deposits. DSCR financing is for business-purpose rental properties and tests the property’s rent against the payment. If you have a paycheck-like income stream in deposits, one of those might fit better. If you have the balances but not the deposits, the asset-based paths are the natural fit.
What Makes a Program the Best Fit for You?
No single program is the best for everyone, and anyone who names one without asking about your file is guessing. The best program for your situation depends on property type, credit profile, how much cash you need out, how your assets are held and how well they are documented.
Lendmire is a mortgage broker, not a lender. Lenders in that network set their own overlays, so the lenders that write a particular scenario depend on factors like asset mix, loan size and occupancy. A borrower who shops one lender sees one set of overlays. A broker sees several.
When comparing options, use these criteria:
- Path match. Do your assets cover the loan, or do they need to produce income?
- Cash-out allowance. Is cash-out available on the path you qualify for, and at what leverage?
- Asset treatment. How are your specific accounts counted?
- Seasoning. Do your funds meet the statement windows?
- Loan amount. Is your request within the ceiling for the path?
Should You Do This? The Honest Risks
A cash-out refinance on assets is a real obligation. You carry a larger mortgage, and if you are not drawing a paycheck, the payment comes from your portfolio. A market drop can shrink the balances that support the plan. On the depletion path, the derived income does not mean you must sell assets, but your actual ability to pay still rests on them.
Ask yourself three questions before applying. First, can you cover the new payment for years if markets fall? Second, is the cash-out purpose clear and worthwhile? Third, would simply selling some assets cost less than carrying a bigger mortgage? Sometimes the answer to the third question is yes, and that is a perfectly good reason to skip the loan.
Key Terms Defined
Asset qualifier path: the route where eligible assets must equal or exceed the whole loan amount, with no employment or income documented.
Asset depletion path: the route where usable assets divided by 60 months become monthly qualifying income, which then runs through a debt-to-income test.
Seasoning: the length of time funds must sit in your account, or the age of your statements, before a lender counts them.
Cash-out refinance: a new, larger mortgage that pays off the old one and gives you the difference in cash.
Debt-to-income ratio: your monthly debts, including the new housing payment, divided by your monthly income.
Business-purpose loan: a loan made primarily for a business or investment reason, such as financing a rental property, rather than for personal use.
Frequently Asked Questions
Do I need a job to do a cash-out refinance on assets?
No. On the qualifier path, no employment or income is documented, and your assets carry the file. On the depletion path, your assets are converted into monthly income, so no paycheck is needed either. Both paths still require credit review, an appraisal and documented statements, subject to underwriting.
Do I have to sell my investments to qualify?
No. The lender counts your balances at the credit percentages for each asset type. You keep the accounts. What you must do is show the funds are seasoned and documented with the required statements.
Does privately held company stock count as an asset?
None of it counts: privately held company stock is not an eligible asset on either path. If you own shares of a closely held company, the documented route is a sale or buyout that turns the proceeds into a seasoned cash balance in a regulated account. Public securities, cash and retirement accounts are counted at the percentages above.
Can my cash-out proceeds count as qualifying assets?
No. On the depletion path, cash-out proceeds never count as qualifying assets. The cash you receive must stay separate from the pool used to qualify.
Can I use this on a rental property?
Yes, but only on the depletion path. Investment property is eligible there at up to 60% on a cash-out refinance, and the loan is business-purpose. Loan amounts on that path run from $125,000 to $3,500,000, subject to underwriting.
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. You can reach the team at 828-256-2183 or request a quote through the mortgage quote page. Programs and parameters change, and every file is underwritten individually. Nothing here is a commitment to lend.
For how equity extraction works on an investment property, see Lendmire’s guide to cash-out refinance on an investment property.
About Lendmire
Lendmire — NMLS# 2371349 — is a mortgage broker that arranges bank statement, P&L-only, 1099-only and asset-based home financing in 16 states through wholesale lenders, on primary residences, second homes and investment properties. Every option is subject to the lender’s guidelines and full underwriting. 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. Morty: Asset Depletion Mortgages 101
2. CFPB Regulation Z § 1026.43 (ability-to-repay 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: Can You Get an Asset-Based Mortgage on a Tennessee Condo? · Can You Refinance a Tennessee Home on Assets When Your Income Stops? · Can You Get a Pennsylvania Asset-Based Mortgage With No Job?
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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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.