The Quick Read: The best program for your situation depends on whether your savings can cover the loan outright or must be converted into monthly qualifying income, because asset-based mortgages run on two separate paths, and cash-out is capped at 60% of value on the income-conversion path through select programs, subject to underwriting. You document your balances with statements. You do not provide tax returns, pay stubs or employment verification.
- Asset qualifier path: eligible assets must equal or exceed the entire loan, and no employment or income is documented.
- Asset depletion path: usable assets divided by 60 months become qualifying income, which then runs through the debt-to-income test.
- You are on one path at a time. The two sets of percentages never blend.
- Cash-out is the tight spot. On the depletion path it is capped at 60% of value on a principal residence, second home or investment property. On the qualifier path the lender sets cash-out terms, and they are not published.
- Every file is fully underwritten. The figures here are ceilings and floors, not offers.
Can You Take Cash Out With No Paycheck?
Yes, through select programs, if your balances are large and well documented. A retiree with a big brokerage account, savings and a 401(k) can often qualify on those balances instead of income. The lender still underwrites the file and still verifies where the money sits.
That is the part people get wrong. “No paycheck” does not mean “no paperwork.” It means the paperwork is bank, brokerage and retirement statements instead of W-2s and tax returns.
Trade press has noticed the demand. Scotsman Guide reports that asset-depletion mortgages turn idle brokerage and retirement balances into attributed income, and it names retirees as a growing audience. A separate Scotsman Guide piece describes a retiree with a $1.5 million portfolio who can qualify without traditional income.
The Two Paths: Assets Cover the Loan, or Assets Become Income
Across the select lenders in Lendmire’s network, asset-based underwriting splits into two paths. Lendmire is a broker, so it arranges these through asset-based mortgage programs and does not lend directly. Picking the right path is most of the decision.
| Factor | Asset qualifier | Asset depletion |
|---|---|---|
| How assets are used | Cover the whole loan | Converted to monthly income |
| Income documented | None | Derived from assets |
| Max loan amount | Up to $4,000,000 | $125,000 to $3,500,000 |
| Purchase leverage | Up to 80% | Up to 80% (65% on investment property) |
| Refinance leverage | Up to 75% | 60% on cash-out |
| Credit | 600 minimum | Lender’s matrix |
The leverage figures above for the qualifier path apply to a principal residence or second home. For the depletion path, 80% applies to a purchase or rate-and-term refinance on a principal residence or second home.
The qualifier path suits someone whose balances comfortably exceed the loan. The depletion path suits someone whose balances are large but not large enough to cover the loan outright. It also suits someone who wants to add asset-derived income to a pension or Social Security.
How the Math Works
Both examples below are illustrative. The lender’s own calculation governs.
Qualifier path. Say you want an $800,000 loan. You hold $330,000 in brokerage accounts, which count at 100%, or $330,000. You hold $300,000 in a 401(k) at age 58, which counts at 90%, or $270,000. You hold $200,000 in savings at 100%, or $200,000. Your usable assets total $800,000, which equals the loan, so you qualify on assets alone.
Depletion path. Say you hold $1,500,000 in securities, which count at 80%, or $1,200,000. You also hold $300,000 in cash at 100%. Usable assets are $1,500,000. Divide by 60 months and you get $25,000 of monthly qualifying income. That income then has to carry the housing payment and your other debts through the debt-to-income test.
The depletion path has two minimums to know. Qualified assets must be at least the lesser of $1,000,000 or 1.25 times the loan balance. When assets are your only income source, liquid assets can never fall below $250,000. If asset-derived income only supplements documented income, such as a pension, it can do so up to a 45% debt-to-income ratio, and the minimum-assets rule is waived.
Which Assets Count, and How Much
Each path applies its own credit percentages to the same balance. Name the path before you quote a number.
| Asset | Qualifier path | Depletion path |
|---|---|---|
| Brokerage / securities | 100% | 80% |
| Cash, savings, money market | 100% | 100% (cash accounts) |
| Certificates of deposit | 100% | 100% |
| 401(k) and IRA | 90% under 59½, 100% at 59½+ | 70% at any age |
| Real-estate equity | Not listed | 60% |
Accounts combine on the qualifier path. Several things never 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.
Privately held company stock is not an eligible asset on either path. Cryptocurrency, precious metals, collectibles, pledged or borrowed funds, and business accounts beyond your ownership share are likewise not published as eligible on either path. The route for all of these is to convert them to cash in a regulated account and let the money season, with the source reviewed by the lender.
If you sold a business, the sale proceeds are the asset, not the old company shares. On the depletion path, sale-of-business, inheritance and legal-settlement funds are excused from the 120-day seasoning rule. (Seasoning is the waiting period that proves money has been yours, not borrowed.)
Does Cash-Out Work on Each Path?
On the depletion path, yes, at 60% of value. That ceiling applies to a principal residence, a second home and an investment property alike. Cash-out proceeds never count as qualifying assets, so you cannot pull money out and then use it to qualify.
On the qualifier path, refinances go up to 75% of value on a principal residence or second home. Whether cash-out proceeds are allowed there, and at what leverage, is set by the lender and is not published. Ask for that answer directly before you plan around it. This is where a broker earns the fee: lenders differ, and the program that allows your cash-out is the one that matters.
Also remember that cash-out is not cash in hand. Your payoff, closing costs and any prepayment charge on the old loan come out first. The check you receive is smaller than the leverage ceiling suggests.
Choosing the Best Program for Your Situation
The best program for your situation follows from your balance sheet, not from a brand name. Here is how the common retiree profiles tend to map, through select programs and subject to underwriting.
| Your profile | Likely path | Why |
|---|---|---|
| Large cash and brokerage, modest loan | Qualifier | Balances cover the loan outright |
| One big 401(k) or IRA, little else | Depletion | Retirement counts at 70%, then becomes income |
| Pension or Social Security plus assets | Depletion | Asset income can supplement, up to a 45% debt-to-income ratio |
| Business sale proceeds in cash | Either | Sale funds are excused from seasoning on depletion |
| Owner of a rental property | Depletion for personal-name investment loans | Investment property is 60% on cash-out |
Credit still matters. The qualifier path publishes a 600 minimum. The depletion path follows the lender’s score and loan-amount matrix, and a first-time investor on that path needs 700. Housing history is typically 0x30x12, meaning no 30-day lates in the last twelve months, though one late in that window is considered case by case. Multiple bankruptcies are not eligible, and a housing event needs four years of seasoning on the depletion path.
Where the Rules Bend or Break
Age 59½ changes the qualifier math. Retirement balances count at 90% before that age and 100% after it. If you are close, the timing can change your usable total. On the depletion path, retirement counts at 70% regardless of age.
Recent moves break seasoning. 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 plus the latest one within 45 days. A large transfer into a new account right before you apply can reset that clock.
Rental properties follow a different test. DSCR cash-out loans, which qualify primarily on property-level rental income covering the payment subject to lender guidelines, are a separate product and a separate conversation. On the asset depletion path, an investment property is business-purpose financing, meaning it is reviewed differently from a standard owner-occupied mortgage. That distinction rests on the rules for business-purpose credit in Regulation Z, and the Federal Reserve’s published copy lays out the same exemptions. Use of the property decides the category, not the label on the paperwork.
Principal residences and second homes are consumer mortgages. Standard consumer disclosures under TRID apply to those files.
Programs can stack, but not freely. A borrower is reviewed on one path at a time. Asset income can supplement documented income on the depletion path, but a file does not mix qualifier and depletion percentages.
Risks, and When Not to Do This
A cash-out loan adds a payment. If your documented income is small, that payment is carried by your portfolio, so a market drop or heavy spending can pinch you later. Balances are counted from your statements, so a big withdrawal before closing changes the count.
The loan is secured by your home. Your heirs inherit the property along with the debt. That is manageable if there are assets to cover it and painful if there are not.
Skip this route if the cash would fund spending you cannot sustain, or if a plain sale of a stock position would meet the need without new debt. A cash-out also does not make sense when you only need a small amount and the closing costs outweigh the benefit.
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.
Step by Step: Preparing the File
1. Inventory your accounts. List every brokerage, bank, CD and retirement account with its current balance and the age of the oldest statement.
2. Sort by path. Count the balances at the qualifier percentages, then again at the depletion percentages, to see which clears.
3. Season the money. Leave balances in place. Avoid shifting large amounts between accounts.
4. Gather statements. For the qualifier path, two months per qualifying account. For the depletion path, statements 120 days old plus one within 45 days.
5. Convert ineligible holdings. Cash out crypto, metals or sold-business proceeds into a regulated account and let it season.
6. Review your credit and housing history. Check the 0x30x12 pattern and any housing event.
7. Ask for cash-out terms. Confirm leverage and whether proceeds are allowed on the path you chose.
Questions to Ask Any Lender
- Is cash-out allowed on the path I qualify for, and at what leverage?
- How do you count my retirement accounts at my age?
- How many months of statements do you need, and how old must the oldest be?
- Does my credit fall inside your matrix for this loan amount?
- Is there a prepayment charge on the new loan, and how does it step down?
- What will actually reach me after payoff, costs and reserves?
Key Terms Defined
Asset qualifier: a path where eligible assets, after credit percentages, must cover the entire loan.
Asset depletion: a path where usable assets divided by 60 months become monthly qualifying income.
Debt-to-income ratio: the share of monthly income that goes to debt payments, including the new housing payment.
Seasoning: how long money has sat in your account, which shows it is really yours.
Cash-out refinance: a new, larger loan that pays off the old one and gives you the difference.
Haircut: the share of a balance a lender does not count, such as the 20% off securities on the depletion path.
Frequently Asked Questions
Can I take cash out in retirement without a pension or Social Security?
Yes, through select programs, if your assets qualify. On the depletion path, eligible balances become monthly income through the 60-month divisor, and cash-out is capped at 60% of value. You still need the minimum assets, credit and seasoning, subject to underwriting.
Does a 401(k) or IRA count?
Yes, with a haircut. On the qualifier path it counts at 90% under age 59½ and 100% at 59½ or older. On the depletion path it counts at 70% at any age.
Does privately held company stock count?
No. If you are a founder or shareholder, the route is documented liquid assets: seasoned proceeds from a sale or conversion, cash, and public securities and retirement accounts at their percentages.
Can I use this on a rental property?
Yes, on the asset depletion path. An investment property is 65% on a purchase or rate-and-term refinance and 60% on a cash-out refinance, subject to underwriting. A first-time investor needs a 700 score on that path.
Is this a no-documentation loan?
No. Every file is fully underwritten and your assets are documented with statements. What you skip is tax returns, pay stubs and employment verification.
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. The consumer program is offered 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. Qualification is subject to underwriting and is not 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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References
2. Scotsman Guide: One out of 20 mortgages are non-QM
4. Federal Reserve: Regulation Z §1026.3 exempt transactions
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 Much Cash Can a New Mexico Homeowner Take Out on an Asset Depletion Refinance? · Can You Get an Asset-Based Mortgage on a Tennessee Condo? · Asset Seasoning Rules for a Colorado Asset-Based Mortgage
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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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.