The Quick Read: The best program is the one that counts your documented liquid assets instead of your company shares. Privately held company stock is not an eligible asset on either asset-based path. Cash, public securities and retirement accounts count at set percentages, subject to underwriting. Which path fits depends on whether your assets can cover the whole loan or must be turned into monthly income.
- Private company shares: not eligible on either path. Seasoned cash from a sale or buyout is the documented route.
- Asset qualifier path: eligible assets must equal or exceed the entire loan. No employment or income is documented.
- Asset depletion path: usable assets divided by 60 months become qualifying income. That income runs through the debt-to-income test. Cash-out is capped at 60% loan-to-value on this path.
- Every file is fully underwritten. You skip traditional personal-income documentation, pay stubs and employment verification. You do not skip statements.
What Does an Asset-Based Cash-Out Refinance Mean for a Shareholder?
It means you replace your current mortgage with a larger one and take the difference in cash. The lender looks at your assets instead of your paycheck to decide whether you can carry it. For a shareholder with big balances and lumpy income, that is often the right lens.
Lendmire is a mortgage broker. It arranges these loans through select lenders in its wholesale network, and it does not lend or approve them. The broker’s asset-based mortgage program covers two paths, and you are qualified on one path at a time.
The asset qualifier path asks one question. After the credit percentages are applied, do your eligible assets equal or exceed the whole loan? If yes, no employment or income is documented.
The asset depletion path works differently. The lender takes your usable assets, divides them by 60 months, and treats the result as monthly income. That income must carry the full housing payment and your other debts.
One scope point matters here. These are consumer mortgages for a principal residence or second home. The one exception is the depletion path, which also allows an investment property, and that loan is business-purpose. Rental property financed on the strength of its rent is a different product, business-purpose rental financing (DSCR), reviewed on the property’s rent instead.
Key Terms Defined
- Asset-based mortgage: a home loan qualified on your documented assets instead of your employment income.
- Asset qualifier path: the route where eligible assets must cover the entire loan amount.
- Asset depletion path: the route where usable assets are divided by 60 months to create qualifying income.
- Haircut: the share of an asset’s balance the lender does not count, such as the 20% that does not count on a securities account.
- Seasoning: how long funds have sat in your account, shown by statements.
- Cash-out refinance: a new, larger mortgage that pays off the old one and pays you the difference.
- Loan-to-value (LTV): the loan amount divided by the property’s appraised value.
Do Company Shares Count as Assets?
Privately held company stock is not an eligible asset on either path. That is the rule. Your ownership stake may be worth millions on paper, and it earns no credit in the file.
Why? A lender needs a balance it can verify and that holds its value on a statement. Closely held shares have no daily price and no ready buyer.
So the route for a founder or shareholder is documented liquid assets. That means seasoned proceeds from a sale, buyout or conversion of shares, plus cash, public securities and retirement accounts at their percentages.
Here is how the main asset types are treated on each path, subject to underwriting.
| Asset | Qualifier path | Depletion path |
|---|---|---|
| Brokerage / securities | 100% | 80% |
| Cash, savings, money market | 100% | 100% |
| Certificates of deposit | 100% | 100% |
| Retirement accounts | 90% under 59½; 100% after | 70% at any age |
| Real-estate equity | Not listed | 60% |
Some other holdings that show up in shareholder portfolios do not count either:
- On the depletion path: stock options, non-vested restricted stock units, deferred compensation, custodial accounts, foreign funds and cash on hand are not eligible.
- On both paths: cryptocurrency, precious metals, collectibles, pledged or borrowed funds, and business-account balances beyond your ownership share are not published as eligible.
The documented route for any of these is converting them to a seasoned cash balance in a regulated account. The lender reviews the source of those funds.
Why Not Just Borrow Against the Shares?
Because this program does not lend against shares at all. It lends against a home, and the file is built around assets. That is a real difference from a stock-backed loan.
Many shareholders want to borrow instead of sell. They want to keep ownership, control and future upside. The goal is reasonable. With private shares, though, the file needs different assets to rest on.
So the honest question is this: do you hold enough liquid assets outside the company? Maybe you have taken distributions over the years. Maybe you sold part of your stake. Maybe you hold public stock from an earlier exit. Those balances carry the file. The company stake stays untouched, and it plays no part in qualifying.
How Underwriting Treats a Shareholder, Step by Step
Underwriting is a sequence of checks on statements and credit. Here is how it runs.
1. Pick the path. If your eligible assets, after the percentages, can cover the whole loan, the qualifier path fits. If not, depletion may fit.
2. List every account in your name. Include brokerage, bank, retirement and any sale proceeds. Business accounts count only for your ownership share.
3. Apply the credit percentages. The table above shows the share of each balance that counts. Accounts combine.
4. Check seasoning. The qualifier path wants 60 days of seasoning 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. Sale-of-business, inheritance and legal-settlement funds are excused from that depletion-path seasoning, subject to lender review.
5. Review credit and housing history. The qualifier path publishes a 600 minimum score. The depletion path follows the lender’s matrix. Housing history is 0x30x12, though one 30-day late in the last twelve months is considered case by case.
6. Appraise the property and size the loan. Leverage limits depend on the path and the occupancy type (below).
Credit does matter here. Asset-based does not mean credit-blind.
What the Math Looks Like on Each Path
Two illustrations show the difference. They are illustrative only, and the lender’s own calculation governs.
Qualifier path. Picture a shareholder borrowing $800,000 who holds three buckets of money:
- $330,000 in brokerage accounts, counted at 100%, which is $330,000.
- $300,000 in a 401(k) while under age 59½, counted at 90%, which is $270,000.
- $200,000 in savings, counted at 100%, which is $200,000.
That adds up to $800,000 of usable assets. It equals the loan, so the file is reviewed on assets alone, subject to underwriting.
Depletion path. Say you hold $1,500,000 in securities and $300,000 in cash. Securities count at 80%, which is $1,200,000, and cash counts at 100%, which is $300,000. Together that is $1,500,000 of usable assets. Divided by 60 months, it produces $25,000 of monthly qualifying income. That income then carries the housing payment and your other debts through the debt-to-income test.
This path has floors. Qualified assets must be at least the lesser of $1,000,000 or 1.25 times the loan balance. They are never below $250,000 liquid when depletion is your only income source. If you also have documented income, asset-derived income can supplement it up to a 45% debt-to-income ratio. In that case the minimum-assets rule is waived.
How Much Cash Can You Take Out?
On the depletion path, the answer is 60% of the property’s value on a cash-out refinance. That applies to a principal residence, a second home, or an investment property.
The depletion path allows more on other transactions:
- Principal residence or second home: up to 80% on a purchase or rate-and-term refinance.
- Investment property: up to 65% on a purchase or rate-and-term refinance.
Loan amounts run from $125,000 to $3,500,000 on this path.
The qualifier path is different. It allows up to 80% on a purchase and 75% on a refinance of a principal residence or second home. Loans go up to $4,000,000. Whether cash-out proceeds are allowed on that path, and at what leverage, is set by the lender and is not published. Ask the broker before you build a plan on it.
Cash-out proceeds never count as qualifying assets. You cannot pull cash out and use it to qualify for the same loan. On the qualifier path, no reserves are required at or below 75% loan-to-value. Above that, the lender sets them.
These figures are ceilings and floors, not offers. Each file is underwritten on its own merits through select programs.
Where the General Rule Breaks
A few situations change the picture for shareholders. They are worth knowing before you apply.
The home sits inside the company. The consumer asset-based loan goes to you as an individual. If a company holds title, you would need to move the deed. Moving title can trigger the due-on-sale clause on your existing mortgage. Federal law lets lenders enforce that clause when a property interest is transferred without written consent, per 12 U.S.C. § 1701j-3. The statute’s protected-transfer list covers residential property with fewer than five units, and a deed into an LLC is not on that list. A legal explainer on the Act adds that a lender may call the loan but is not required to. That is not a plan. Get written consent first.
The sale just closed. Fresh proceeds from selling shares or a business are the strongest fit for this program. On the depletion path, sale-of-business funds are excused from the 120-day statement seasoning, subject to lender review. On the qualifier path, expect the 60-day seasoning and two months of statements.
You are a first-time investor. On the depletion path, buying an investment property as a first-time investor needs a 700 credit score. A housing event needs four years of seasoning on that path. Multiple bankruptcies are not eligible. Exact terms depend on the lender’s guidelines, property type, leverage, and a full review of the borrower’s file.
Your wealth is mostly options or unvested stock. Stock options and non-vested restricted stock units are not eligible on the depletion path. Wait until they vest and you convert them to cash or public securities in a regulated account.
Getting money out of the company. Moving funds from a company to a shareholder is a governance question for your attorney and accountant. 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.
How Does This Compare With Other Ways to Get Liquidity?
Each route solves a different problem. Here is the structural difference, described in general terms.
| Option | What backs it | Main trade-off |
|---|---|---|
| Asset-based cash-out refinance | Your home; qualified on assets | Replaces your current mortgage |
| Stock-backed loan or securities line | Public shares you pledge | Collateral value can fall |
| Margin loan | Securities in a brokerage account | Margin calls |
| Selling shares | Nothing; you sell | You give up ownership and upside |
| Company-level borrowing | The company’s assets | The company, not you, owes it |
Which Route Fits Which Shareholder?
Here is a quick scenario-to-route guide.
| Your situation | Likely fit |
|---|---|
| Large cash balance from a sale or buyout | Qualifier path, if assets cover the loan |
| Big public-stock portfolio, modest income | Depletion path |
| Wealth mostly in private company shares | Convert part to seasoned cash first |
| Wealth mostly in options or unvested stock | Wait for vesting, then convert |
| Needs cash against a rental held by a company | Business-purpose rental financing (DSCR) |
How to Find the Best Program for Your Situation
The best program for your situation depends on the property type, your credit, how much cash you need, and what you can document. No single lender fits every shareholder. The lenders that write this kind of loan differ on overlays, so a broker that shops multiple wholesale lenders can match your file to the right program.
- Clean, complete statements. Every page, every account, in your name.
- Seasoned funds. Money that has sat long enough, or a documented sale that is excused from seasoning.
- A clear path choice. Decide whether assets cover the loan or become income before you apply.
- Credit in order. Know your housing history and score before you apply.
- Realistic leverage. The 60% cash-out ceiling on the depletion path surprises people. Plan for it, and remember that property type, credit profile and the lender’s guidelines all apply. Final terms depend on lender guidelines, property type, leverage, and the borrower’s complete credit picture.
Lendmire arranges these mortgages through select lenders in its network, in Alabama, California, Colorado, Florida, Georgia, Indiana, Michigan, Montana, New Mexico, North Carolina, Ohio, Pennsylvania, Tennessee, Texas, Virginia and Washington. Qualification is subject to lender guidelines. Nothing here is a commitment to lend.
Frequently Asked Questions
Can I use my private company shares to qualify?
No. The documented route is converting some of that wealth into a seasoned cash balance through a sale or buyout. After that, the cash counts at its percentage.
Which path fits a shareholder who just sold part of their stake?
It depends on the size of the proceeds against the loan. If seasoned cash and other eligible assets cover the whole loan, the qualifier path fits. If not, the depletion path turns those assets into monthly income. Sale-of-business funds are excused from the depletion path’s 120-day seasoning, subject to program review.
Does this program require tax returns or pay stubs?
Not for the asset-based paths. The file is still fully underwritten, with statements for every qualifying account and a credit review.
How much can I take out in a cash-out refinance?
On the depletion path, 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. Your eligible assets and credit also shape the final amount.
Can I borrow against a rental my company owns?
Not through the consumer asset-based program. That loan is made to you as an individual. A rental held for business purposes is financed through business-purpose rental financing (DSCR), which qualifies primarily on property-level rental income covering the payment, subject to lender guidelines.
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. Bring your account statements and a sense of how much cash you need. What you hold outside the company, not inside it, sets the answer.
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.
For how equity extraction works on an investment property, see Lendmire’s guide to cash-out refinance on an investment property.
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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
2. FedLaws, Garn-St. Germain Act explainer
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 Without Waiting Six Months to Refinance
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
- Mortgage Loan Originator · NMLS# 1129696 · Verify on NMLS Consumer Access
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- North Carolina Insurance Producer · License# 19053198 · Property, Casualty, Life, Health · Verify on NAIC SBS
- Lendmire LLC · Firm NMLS# 2371349 · Verify firm licensure
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.