The Quick Read: For a borrower with large balances and thin documented income, the practical route is usually the asset depletion path, which turns usable assets into monthly qualifying income and carries a published 60% cash-out limit on a principal residence, second home, or investment property, while the asset qualifier path covers a refinance with assets alone, subject to underwriting. Both paths need statements, not tax returns, pay stubs, or employment verification. Which one fits depends on how your wealth is held and what the cash-out is for.
- 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 must carry the housing payment and other debts.
- You use one path at a time. The two sets of percentages never blend.
- Cash-out proceeds never count as qualifying assets on the depletion path.
- Every file is fully underwritten. The assets are documented with statements, and figures are subject to select-program guidelines.
Why Limited Income Is Often a Paperwork Problem
Many people with big balances show small monthly income. Think of a retiree living off a portfolio, someone who just sold a business, or a household that received an inheritance or settlement. A standard lender looks at a pay stub or a tax return and sees little. An asset-based mortgage looks at the statements instead.
Lendmire is a mortgage broker, not a lender. It places these files through select lenders in its wholesale network, so the program rules below describe what those lenders do. They are not offers. Lendmire’s asset-based mortgage programs cover both paths, and each loan is underwritten individually.
How to Pick the Best Asset-Based Cash-Out Refinance Program for Your Situation
No single program wins for everyone. The best program for your situation depends on where your money sits, how much cash you want to pull out, and what property you are borrowing against.
Start with the cash-out question, because it splits the paths:
- Asset depletion path. The cash-out limit is published: 60% loan-to-value (LTV) on a principal residence, second home, or investment property. If you need a cash-out with clear leverage rules, this is the path with numbers you can plan around.
- Asset qualifier path. The published leverage is up to 75% LTV on a refinance of a principal residence or second home. Whether cash-out proceeds are allowed on this path, and at what leverage, is set by the lender. Treat it as a question for your scenario, not a given. Terms depend on lender guidelines, property type, leverage, credit profile, and full file review.
If your goal is a straight refinance with no debt-to-income test at all, the qualifier path is the cleaner fit. It requires enough eligible assets to cover the entire loan. If your assets are large but not large enough to cover the full loan, depletion usually fits better, because it only needs the assets to generate enough income.
What Is the Asset Qualifier Path?
The asset qualifier path approves the loan on assets alone. After the credit percentages are applied, your eligible assets must equal or exceed the whole loan amount. No employment or income is documented.
Loans run up to $4,000,000 on this path, subject to underwriting. Leverage reaches 80% LTV on a purchase and 75% on a refinance of a principal residence or second home. The credit floor is a 600 score. Exact terms depend on the lender’s guidelines, property type, leverage, and a full review of the borrower’s file.
Here is how much of each balance counts on this path:
| Asset | Share that counts |
|---|---|
| Brokerage accounts | 100% |
| Certificates of deposit | 100% |
| Money market | 100% |
| Savings | 100% |
| 401(k) or IRA, under age 59½ | 90% |
| 401(k) or IRA, age 59½ or older | 100% |
Accounts combine. Here is an illustrative example. Say the loan is $800,000. You hold $330,000 in brokerage accounts, which counts at 100%, or $330,000. 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%, or $200,000. That is $800,000 of usable assets, so the file is reviewed on assets alone. The lender’s own calculation governs.
Seasoning is the waiting period an asset must sit in your account before it counts. This path wants 60 days of seasoning and two months of statements for each qualifying account. Reserves are not required at or below 75% LTV. Above that, the lender sets them. Every figure here is subject to underwriting. Terms vary by lender guidelines, property type, leverage, credit profile, and full file review.
What Is the Asset Depletion Path?
The asset depletion path converts assets into income. Eligible balances, after haircuts, are divided by 60 months. The result is a monthly qualifying income that has to carry the full housing payment and your other debts through the debt-to-income (DTI) test. DTI is the share of your monthly income that goes to debt payments.
Loans run from $125,000 to $3,500,000 on this path, through select programs. Leverage looks like this:
- Principal residence or second home: up to 80% LTV on a purchase or rate-and-term refinance, and 60% on a cash-out refinance.
- Investment property: up to 65% LTV on a purchase or rate-and-term refinance, and 60% on a cash-out refinance. Final terms depend on lender guidelines, property type, leverage, and the borrower’s complete credit picture.
A haircut is the share of a balance the lender will not count. Here is what counts on this path:
| Asset | Share that counts |
|---|---|
| Cash accounts | 100% |
| Certificates of deposit | 100% |
| Securities | 80% |
| Retirement accounts, any age | 70% |
| Real-estate equity | 60% |
Run an illustrative example. You hold $1,500,000 in securities, which counts at 80%, or $1,200,000. You also hold $300,000 in cash, which counts at 100%, or $300,000. Usable assets total $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 DTI test. The lender’s own calculation governs.
There are minimums. Qualified assets must be at least the lesser of $1,000,000 or 1.25 times the loan balance. They must never fall below $250,000 liquid when asset depletion is your only income source.
How Underwriting Treats Each Path, Step by Step
Both paths are fully underwritten. Here is the order of operations on a typical file.
1. Pick the path. The loan officer tests your assets against the whole loan (qualifier) and against the depletion math. Only one path is used.
2. Collect statements. The qualifier path needs two months for each qualifying account. The depletion path needs statements at least 120 days old at application, plus the most recent statement within 45 days.
3. Apply the percentages. Each balance is cut by its credit percentage, and accounts combine.
4. Test the loan. On the qualifier path, usable assets must cover the loan. On the depletion path, divide by 60 and run the DTI test.
5. Check credit and property. The depletion path follows the lender’s score and loan-amount matrix. The property and its LTV are reviewed.
Credit matters on both paths. The qualifier path publishes a 600 floor. The depletion path uses the lender’s matrix, and a first-time investor on that path needs a 700. Housing history is 0x30x12, meaning no 30-day lates in twelve months, though one late in that window is considered case by case. Multiple bankruptcies are not eligible. A housing event needs four years of seasoning on the depletion path.
One extra twist is worth knowing. Sale-of-business, inheritance, and legal-settlement funds are excused from the 120-day seasoning rule on the depletion path. If you just sold a company or received a settlement, that matters.
Which Assets Do Not Count?
Plenty of wealth sits in places lenders cannot use. Depletion-path assets that are not eligible include 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. Founders and shareholders qualify through documented liquid assets: seasoned proceeds from a sale or buyout, cash, public securities, and retirement accounts at their haircuts.
Other asset classes are not published as eligible on either path. That covers cryptocurrency, precious metals, collectibles, business accounts beyond your ownership share, and pledged or borrowed funds. The route is to convert them to a seasoned cash balance in a regulated account. The lender then reviews the source.
Edge Cases Where the General Rule Bends
Mixed income. Say you draw a small pension or Social Security but hold large balances. On the depletion path, asset-derived income can supplement documented income up to a 45% DTI. When it supplements, the minimum-assets rule is waived.
Self-employed with write-offs. Heavy deductions can make tax returns look thin. If that is you, an asset-based file can sidestep the question.
Retirement accounts. The same 401(k) counts at 90% or 100% on the qualifier path and 70% on the depletion path. The age threshold only matters on the qualifier path. Compare both before you choose.
Cash-out proceeds. On the depletion path, proceeds from this loan never count as qualifying assets. You cannot lift the loan’s own cash to meet the minimums.
First-time investors. If the property is an investment and you have never owned one, the depletion path asks for a 700 score.
The Business-Purpose Wrinkle on Investment Property
Investment property is allowed only on the depletion path, and there the loan is business-purpose. Business-purpose credit is reviewed differently from a standard owner-occupied mortgage. The CFPB’s Truth in Lending exam manual treats credit to acquire or improve non-owner-occupied rental property as business-purpose credit.
Do not assume every investment label holds up. Compliance Alliance notes that exemptions turn on occupancy, loan purpose, and unit count, and that the loan’s purpose matters more than the property’s. State your purpose truthfully when you apply.
How Do the Alternatives Compare?
The right comparison depends on what you can document. The rules below belong to those programs, not to the asset-based mortgage.
| Option | Qualifies mainly on | Fits when |
|---|---|---|
| Asset qualifier path | Assets covering the whole loan | Large balances, refinance, no income documented |
| Asset depletion path | Assets converted to income | Assets fall short of the loan but produce enough income |
| Bank statement program | Deposits in business or personal accounts | You earn steadily but tax returns understate it |
| DSCR loan | Property rent covering the payment | A business-purpose rental that earns its own way |
| HELOC | Home equity and your income | You want a flexible line against existing equity |
If your wealth is mostly in a rental that cash flows, DSCR is the natural fit. If your deposits tell the story, look at the bank statement program. If your wealth is in balances you hold and income is light, the asset paths are built for you.
Risks and Who Should Not Do This
Be honest with yourself about three things.
- Drawing down assets cuts your usable total. If a cash-out comes from the same pile you used to qualify, make sure the math still works after you spend it.
- Thin income plus a bigger loan raises the stakes. An asset-based approval says the lender is comfortable with your assets. It does not say the payment is comfortable for your life.
- Market swings matter. Securities count at 80% on the depletion path, and their value moves. Statements reflect a single day.
If your balances sit mostly in crypto, collectibles, or private company shares, this program is not your route until those are converted to seasoned cash. 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 Before You Apply
A short checklist keeps the file clean:
- Statements for every account you want counted, matching the path’s seasoning rules.
- A plain explanation of where large recent deposits came from.
- The property address, its use (primary, second home, or investment), and your cash-out purpose.
- Credit and housing history details, including any recent housing event.
- Documented income, if you have some, since it can supplement depletion income.
If the File Gets Declined
A decline usually points to one of a few fixes. Ask for less cash-out so LTV drops. Move assets into a more favorable category. Season funds longer. Switch paths if the other one fits better. A broker can test each scenario against the program that matches it. That is where shopping several wholesale lenders pays off.
Frequently Asked Questions
Can privately held company stock count toward qualifying?
No. If you sold or bought out your stake, the sale proceeds become eligible once they sit as a cash balance. Sale-of-business funds are excused from the 120-day seasoning rule on the depletion path. Public securities and retirement accounts count at their own percentages.
Is this a no-doc 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. Underwriting still reviews credit, the property, and the source of your funds.
Does cryptocurrency count?
Cryptocurrency is not published as eligible on either path. The documented route is converting it to cash in a regulated account and letting it season. The lender then reviews the source of the funds.
Can I use both paths on one loan?
No. A borrower is reviewed on one path at a time, and the tables are never blended. The loan officer tests which path fits and builds the file around it.
Can I add my pension or Social Security to the depletion math?
Yes, through the supplement route. Asset-derived income can add to documented income up to a 45% DTI. Underwriting decides how your documented income is counted.
Next Steps
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. Lendmire is a mortgage broker that places consumer mortgages through select lenders in its network, with lending licensed in Alabama, California, Colorado, Florida, Georgia, Indiana, Michigan, Montana, New Mexico, North Carolina, Ohio, Pennsylvania, Tennessee, Texas, Virginia, and Washington. Programs change, and figures are subject to underwriting and are 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 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. CFPB Truth in Lending exam manual
2. 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 With No Income Other Than Assets · Asset-Based Cash-Out Refinance Options With Limited Income
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.