The Quick Read: The right asset-based cash-out refinance program depends on how your wealth is held, because either your eligible assets cover the whole loan, or they convert into monthly qualifying income that the lender tests against your payment. Neither path asks for tax returns, pay stubs or employment verification. Every file is still fully underwritten, and your statements are the proof.
- 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, and that income runs through a debt-to-income test.
- Cash-out leverage: on the depletion path, cash-out tops out at 60% loan-to-value on a principal residence, second home or investment property, through select programs and subject to underwriting.
- Home equity sets the ceiling. Your assets prove you can repay, and your equity caps how much cash you can take.
What an Asset-Based Cash-Out Refinance Actually Is
It is a mortgage that swaps the income test for an asset test. A lender normally asks for W-2s, tax returns and an employer call. This program asks for account statements instead.
The reader it fits is cash-heavy and income-light. Think of a retiree living off a portfolio, someone who just sold a business, an heir, a settlement recipient or an early-retired professional. Balances are large and documented income is small.
Lendmire is a mortgage broker, not a lender. Its asset-based mortgage programs are placed through select lenders in its wholesale network, and each lender underwrites its own file. Consumer lending for this program 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 Two Paths, Side by Side
You qualify on one path at a time. Never blend their numbers. The table shows the figures through select programs, subject to underwriting.
| Factor | Asset Qualifier | Asset Depletion |
|---|---|---|
| Core idea | Assets cover the whole loan | Assets become monthly income |
| Income documented | None | Derived from assets |
| Refinance leverage | Up to 75% | Up to 80% rate-and-term, 60% cash-out |
| Loan amounts | Up to $4,000,000 | $125,000 to $3,500,000 |
| Statements | 60 days seasoning, two months | 120 days old, plus one within 45 days |
| Credit | 600 minimum | Lender’s matrix |
On the qualifier path, the lender sets whether cash-out proceeds are allowed and at what leverage, and that figure is not published. Plan a cash-out around the depletion path unless a lender confirms otherwise for your file.
Path One: Assets Alone Cover the Loan
The qualifier path is the simplest idea in this niche. Your eligible assets, after the credit percentages below, must equal or exceed the entire loan amount. Nothing about your job or income is documented.
Leverage runs up to 80% on a purchase and 75% on a refinance, on a principal residence or second home. Loans reach $4,000,000. No reserves are required at or below 75% loan-to-value, and above that the lender sets them.
Here is the illustrative math. Take an $800,000 loan. You hold $330,000 in brokerage accounts, which count at 100%. You hold $300,000 in a 401(k) while under 59½, which counts at 90%, or $270,000. You hold $200,000 in savings, which counts at 100%. Together that is $800,000 of usable assets, so the file is reviewed on assets alone. The lender’s own calculation governs.
Accounts combine, so you can mix them. Brokerage accounts, certificates of deposit, money market and savings all count at 100%. Retirement balances count at 90% under age 59½ and 100% at 59½ or older.
Path Two: Assets Become Monthly Income
The depletion path treats your assets as if you were drawing them down over 60 months. The lender takes usable assets, divides by 60, and treats the result as monthly income. That income must then carry your full housing payment and other debts through the debt-to-income test.
Take $1,500,000 in securities, which count at 80%, or $1,200,000. Add $300,000 in cash, which counts at 100%. That is $1,500,000 usable. Divided by 60 months, it is $25,000 of monthly qualifying income. That figure then has to cover the new housing payment and your other debts.
This is the path that carries a cash-out on most files. Principal residences and second homes 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. Cash-out proceeds never count as qualifying assets.
The depletion path has minimums. You need qualified assets of at least the lesser of $1,000,000 or 1.25 times the loan balance. If asset depletion is your only income source, you also need at least $250,000 liquid. Asset income may supplement documented income up to a 45% debt-to-income ratio, and when it does, the minimum-assets rule is waived.
What Counts as an Asset, and What Does Not
Each path scores your accounts differently, so check the right column.
| Asset | Qualifier Path | Depletion Path |
|---|---|---|
| Cash, savings, money market | 100% | Cash accounts 100% |
| Certificates of deposit | 100% | 100% |
| Brokerage / securities | 100% | 80% |
| Retirement accounts | 90% under 59½, 100% after | 70% at any age |
| Real-estate equity | Not listed | 60% |
The depletion path 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.
Privately held company stock is not an eligible asset on either path. Cryptocurrency, precious metals, collectibles, business accounts beyond your ownership share, and pledged or borrowed funds are not published as eligible either. The documented route for all of these is converting them to a seasoned cash balance in a regulated account, with the source reviewed by the lender.
If you sold a business, that route works well. On the depletion path, sale-of-business, inheritance and legal-settlement funds are excused from the statement-age requirement.
Where Home Equity Fits
Equity does not qualify you; assets do.
Your equity works as a ceiling. A 60% cash-out limit on the depletion path means the new loan cannot exceed 60% of appraised value, so the more you already owe, the less cash comes back. Equity in a second property can also count as an asset on the depletion path, at 60%. Leverage, reserves, and pricing vary by lender and program; the final terms follow the full file review.
This also explains why lenders can approve borrowers that big banks turn down. A large depository lender often wants a paycheck pattern. A wholesale lender in this niche reads a seven-figure portfolio as repayment ability.
How Underwriting Treats the File, Step by Step
“Without income verification” does not mean without underwriting. Federal ability-to-repay rules cover mortgages made to consumers, and the CFPB’s ability-to-repay compliance guide lays out that scope. The lender still has to be satisfied that you can repay. Here the proof is assets rather than a paycheck.
In practice, the deal works through these steps:
1. Path selection. A broker matches your balances to the qualifier or depletion path.
2. Statement review. The lender checks seasoning, ownership and the age of each statement.
3. Credit and housing history. The qualifier path has a 600 minimum score. The depletion path follows the lender’s matrix. Housing history is 0x30x12, and a single 30-day late in the last twelve months is considered case by case.
4. Appraisal and leverage. The property’s value caps the loan size.
5. Final calculation. The lender runs its own asset math and, on the depletion path, the debt-to-income test.
What Makes the Best Program for Your Situation
No single program wins for everyone, and any claim of “the best” without your statements is a guess. The lenders that write this product differ on property types, asset mix and overlays. The best program for your situation depends on these points:
- Property use. Principal residence and second home work on both paths. Investment property works only on the depletion path, at lower leverage.
- Asset mix. Heavy brokerage balances favor the qualifier path at 100% credit. Large retirement balances score better there too, at 90% under 59½.
- Cash-out need. If you want cash back, the depletion path publishes a clear 60% ceiling.
- Loan size. The qualifier path reaches $4,000,000, and the depletion path tops out at $3,500,000.
- Credit and history. A first-time investor on the depletion path needs a 700 score.
- Statement timing. The two paths season statements differently, and that can decide which one you use.
A broker shops several wholesale lenders and matches your scenario to the program whose guidelines fit. That is the practical advantage over walking into one lender’s door. All figures here are ceilings and floors, never offers.
Where the Rule Breaks: Edge Cases
Founders and shareholders. Privately held company stock does not count, so a paper-rich founder can look asset-poor. The route is a sale or buyout converted to a seasoned cash balance. Public securities and retirement accounts count at their haircuts.
Investment property. A loan on a rental on the depletion path is a business-purpose loan. Federal rules exempt credit extended primarily for a business purpose from many consumer-credit requirements. Business purpose does not mean compliance-free, though. A law-firm analysis from Hunton Andrews Kurth warns that guarantors and owner-occupied rentals can trigger other rules. Keep your use of the property clean and consistent.
First-time investors. The depletion path asks for a 700 score from someone buying their first investment property.
Housing events and bankruptcy. A housing event needs 4 years of seasoning on the depletion path. Multiple bankruptcies are not eligible.
Mixed income. If you still earn some documented income, asset income can supplement it on the depletion path up to a 45% debt-to-income ratio. That often shrinks the asset minimums.
Large deposits. Recent unexplained deposits create questions. Plan to document where every large deposit came from. Tax treatment varies, so consult a qualified professional.
How This Compares With Other Routes
| Route | What the lender weighs | Fits |
|---|---|---|
| Asset-based program | Eligible assets | Cash-heavy, income-light borrowers |
| Bank statement program | Deposits as income | Self-employed with steady deposits |
| DSCR loan | Rent covering the payment | Business-purpose rental financing |
| HELOC or second lien | That lender’s own rules | Keeping an existing first loan |
Each row describes that product’s own approach, not this program’s.
A quick fit test helps. If your income is documentable but irregular, look at bank statements. If the property is a rental that pays for itself, look at DSCR. If your balances are big and your paycheck is small, an asset-based mortgage is built for you.
What to Prepare Before You Apply
Gather these before talking to a broker:
- Two months of statements for each account you plan to use (qualifier path), or statements at least 120 days old plus the latest within 45 days (depletion path).
- A clear list of which accounts you own outright and in what name.
- Documentation for any large deposit and the source of any recent sale, inheritance or settlement.
- A current housing history showing 0x30x12.
- The property details, so the broker can estimate where your leverage lands.
Pricing differs between programs and changes, so ask for quotes side by side on the same scenario. Every program here is through select lenders, subject to underwriting, and not a commitment to lend.
Key Terms Defined
Asset qualifier: a path where eligible assets, after credit percentages, must equal or exceed the whole loan amount.
Asset depletion: a path that divides usable assets by 60 months to produce a monthly qualifying income.
Haircut: the share of an asset’s balance a lender refuses to count, such as 20% of securities on the depletion path.
Seasoning: the time funds must sit in your account before they count.
Cash-out refinance: a new, larger mortgage that pays off the old one and returns the difference to you in cash.
Loan-to-value (LTV): the loan amount divided by the property’s appraised value.
Frequently Asked Questions
Does this program skip verification entirely?
No. It skips traditional personal-income documentation, pay stubs and employment verification. The lender still checks your assets, credit, housing history and the property’s appraisal. Every file is fully underwritten.
Can I use privately held company stock?
No. If you sell or are bought out, the proceeds become eligible once they sit as a seasoned cash balance. Public securities, cash and retirement accounts count at their percentages.
How much cash can I take out?
It depends on the path, the property and the lender. On the depletion path, cash-out runs up to 60% loan-to-value on a principal residence, second home or investment property. The qualifier path’s cash-out terms are set by the lender and are not published, so a broker has to confirm them for your file.
Do retirement accounts count?
Yes, at different percentages. On the qualifier path they count at 90% under age 59½ and 100% at 59½ or older. On the depletion path they count at 70% at any age.
Is this the same as a HELOC without income?
No. A HELOC is a second lien under its own lender’s rules. An asset-based cash-out refinance replaces your first mortgage with a new one qualified on assets.
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. Many borrowers in this position find that the real question is not which lender, but which path fits their balances, and a good match can come down to how one account type is scored.
Investors weighing their equity options can start with 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. CFPB Ability-to-Repay/Qualified Mortgage Small Entity Compliance Guide
3. Hunton Andrews Kurth – Beware of Business Purpose
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 When Your Income Is Lower Than Before · Asset-Based Cash-Out Refinance Requirements With No Income Verification
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.