The Quick Read: The right program depends on where your wealth sits. If your liquid assets can cover the whole loan, the asset qualifier path may fit. If you need your portfolio turned into monthly income, the asset depletion path fits, and its cash-out leverage sits well below its purchase leverage, subject to underwriting.
- Two paths, one at a time. You qualify on assets alone, or on income built from assets. A borrower is on one path at a time, and on the depletion path asset-derived income may also supplement documented income.
- Cash-out is tighter than purchase. On the depletion path, cash-out is capped at 60% loan-to-value, through select programs and subject to underwriting.
- Your net worth is not your coverage figure. Each asset type counts at a set percentage, and some holdings do not count at all.
- Cash-out proceeds cannot qualify you. Money pulled out of the property never counts as an eligible asset.
- “Best” is a match, not a name. A broker compares several wholesale lenders and fits the program to your balance sheet.
Who Is This Program For?
It fits households with large balances and thin documented income. Think of a retiree living off a portfolio, a founder who just sold a business, or an early-retired professional. Think of someone who received an inheritance or a settlement.
These borrowers look strong on a net-worth statement. On a pay-stub-based application they look weak. Asset-based programs fix that mismatch by reading your statements instead of your tax returns.
Lendmire is a mortgage broker, not a lender. It places files with select wholesale lenders that write asset-based mortgage programs. Because it sees several lenders’ guidelines at once, it can match your scenario to the program that fits. Consumer mortgage lending runs in 16 states: Alabama, California, Colorado, Florida, Georgia, Indiana, Michigan, Montana, New Mexico, North Carolina, Ohio, Pennsylvania, Tennessee, Texas, Virginia and Washington.
“Asset-based” is a loose label. Lenders use it for three different things, and they are not interchangeable:
- Asset qualifier. Your eligible assets cover the entire loan. No employment or income is documented.
- Asset depletion. Your assets are converted into monthly income, which runs through a debt-to-income test.
- Property cash-flow loans. A rental’s income supports the loan, not your assets. That is a separate rental-investor product, not covered here.
This article covers the first two. Every file is fully underwritten. The difference is that you document assets with statements instead of income with tax returns, pay stubs or employment verification.
What Does Restructuring Actually Mean?
Restructuring is the goal behind the cash-out. Naming it first narrows the program choice. Here is how common goals map to a path.
| Your goal | Likely path | Watch-out |
|---|---|---|
| Replace a lien and pull modest cash | Qualifier or depletion | Cash-out terms differ by path |
| Consolidate debt | Depletion | Debts count in the income test |
| Move capital out of the home | Depletion | Cash-out capped at 60% LTV |
| Fund a liquidity event or an estate or divorce buyout | Either, by balance sheet | Seasoning on the funds |
| Pay a large bill without selling the portfolio | Depletion | Portfolio drops lower the usable amount |
| Shift from paycheck to portfolio income | Depletion | Minimum assets apply |
Two cautions apply. First, cash-out is a transaction type, not a program. Whether a path allows it, and at what leverage, is set program by program. Second, a refinance that only pays off existing liens is a rate-and-term refinance, and the leverage limits are higher there.
Path One: How Does the Asset Qualifier Work?
The qualifier path asks one question. After each asset is counted at its set percentage, do your assets equal or exceed the entire loan amount? If yes, you can qualify on assets alone.
This path covers loans up to $4,000,000. It is available for a principal residence or second home. Leverage goes up to 80% loan-to-value on a purchase and 75% on a refinance. The credit floor is 600, subject to underwriting.
Whether cash-out proceeds are allowed on this path, and at what leverage, is set by the lender and is not published. Ask for it by name. Do not assume the 75% refinance figure applies to cash taken out.
Here is the arithmetic, using illustrative figures only. The lender’s own calculation governs. Say the loan is $800,000. You hold $330,000 in brokerage accounts, counted at 100%. You hold $300,000 in a 401(k) while under age 59½, counted at 90%, or $270,000. You hold $200,000 in savings, counted at 100%.
Those three counted amounts, $330,000, $270,000 and $200,000, add up to $800,000 of usable assets. That equals the loan, so you qualify on assets alone. Accounts combine, which helps if your wealth is spread across several institutions.
The percentages for this path work like this:
- Brokerage accounts, certificates of deposit, money market and savings count at 100%.
- Retirement accounts (401(k) and IRA) count at 90% under age 59½ and 100% at 59½ or older.
Seasoning is 60 days, and you provide two months of statements for each qualifying account. No reserves are required at or below 75% loan-to-value. Above that, the lender sets them.
Path Two: How Does Asset Depletion Turn a Portfolio Into Income?
The depletion path converts assets into a monthly qualifying income. Eligible assets, after the discounts below, are divided by 60 months. That income must carry the full housing payment and your other debts through the debt-to-income test.
This path is the more flexible one for cash-out. It also covers investment property, where the loan is business-purpose and reviewed differently from an owner-occupied mortgage. Loan amounts run from $125,000 to $3,500,000.
Here is the share of each balance that counts on this path:
- Cash accounts and certificates of deposit count at 100%.
- Securities count at 80%.
- Retirement accounts count at 70% at any age.
- Real-estate equity counts at 60%.
The worked example, again with illustrative figures: you hold $1,500,000 in securities, counted at 80%, or $1,200,000. You also hold $300,000 in cash, counted at 100%. That is $1,500,000 usable. Divide by 60 months and you get $25,000 of monthly qualifying income. That income then has to carry your housing payment and other debts under the program’s debt-to-income test.
Minimums apply on this path. You need qualified assets of at least the lesser of $1,000,000 or 1.25 times the loan balance. You also need at least $250,000 liquid when asset depletion is your only income source. If asset-derived income supplements documented income, it can do so up to a 45% debt-to-income ratio, and the minimum-assets rule is waived.
Credit follows the lender’s matrix of score and loan amount. A first-time investor on this path needs 700. Housing history is 0x30x12, meaning no 30-day lates in the last twelve months, though one is considered case by case. Multiple bankruptcies are not eligible. A housing event needs four years of seasoning.
Seasoning here works differently from the qualifier path. Statements must be at least 120 days old at application, plus the most recent statement within 45 days. Funds from a business sale, an inheritance or a legal settlement are excused from that seasoning.
How Much Cash Can You Take Out?
Leverage is where cash-out differs most from a purchase. Every figure below names its path and occupancy, because they do not blend.
| Path and property | Purchase or rate-and-term | Cash-out |
|---|---|---|
| Qualifier, primary or second home | 80% purchase, 75% refinance | Set by lender, not published |
| Depletion, primary or second home | Up to 80% | 60% |
| Depletion, investment property | Up to 65% | 60% |
These are ceilings, never offers. Credit, property type and loan size can all pull the number lower. The loan is sized on the lesser of the leverage test and the asset test.
Now the circularity trap. Cash-out proceeds never count as qualifying assets. You cannot borrow against the house, park the cash in an account and then count it to qualify. The assets that qualify you must exist before the loan.
Plan the post-closing picture too. Cash you take out and spend leaves your balance sheet. Your portfolio still carries market risk after you close.
Which Assets Count, and Which Do Not?
Net worth and usable assets are different numbers. A lender discounts some holdings and ignores others.
On the depletion path, these are not eligible: 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 a company you own or founded, the documented route is liquid assets. That means seasoned proceeds from a sale or buyout converted to cash, plus public securities and retirement accounts at the percentages 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 route for those holdings is converting them to a seasoned cash balance in a regulated account. The lender reviews the source of those funds.
Here is how to think about it. List every holding. Mark each one as eligible, discounted, or not eligible on the path you are considering. Then run the arithmetic on only the eligible portion.
How Do Banks Treat Asset-Based Cash-Out?
Conventional jumbo and agency programs generally lean on tax returns and pay stubs. A consumer education guide, Bestinterest, notes that agency programs tend to restrict asset-based income to purchases and limited cash-out refinances. It says a true cash-out is largely off the table there. Treat that as a description of those programs’ rules, not of this one.
For consumer-purpose loans, a lender must still make a documented, good-faith decision that you can repay. The CFPB’s ability-to-repay rule page sets that standard. The CFPB’s small entity compliance guide lists what a lender considers, including debts, debt-to-income or residual income, and credit history. Assets are a permitted way to show repayment ability. That is why asset-based files are fully underwritten, not skipped.
The consumer mortgage disclosure rules apply to these loans. Your lender will deliver them in the usual way.
How Do You Compare Your Options?
A wealthy owner usually has more than one way to reach cash. Here is the even-handed view.
| Option | Income test | Cash access | Best for |
|---|---|---|---|
| Asset-based cash-out | Assets, not pay stubs | Lump sum at closing | Portfolio-rich, income-light |
| Full-doc jumbo cash-out | Tax returns, pay stubs | Lump sum | Strong documented income |
| Bank statement loan | Deposits as income | Lump sum | Self-employed with deposits |
| HELOC | Set by the HELOC lender | Revolving line | Flexible, repeated draws |
| Securities-backed line | Collateral is the portfolio | Revolving line | Short-term needs |
| Selling assets | None | Immediate | Simple, but may trigger taxes |
The bank statement program is for borrowers who document income with deposits. Business-purpose rental financing is a different product again.
Borrowing against your property means you keep your portfolio invested. That has a cost. A portfolio can fall in value while the loan stays the same. Weigh that before you restructure.
Where Does the General Rule Break?
Four edge cases come up often.
- Cash-out on the qualifier path. The lender sets this and does not publish it. A broker has to ask each lender, which is one reason to shop several.
- A property-heavy balance sheet. If your wealth is mostly equity, the depletion path counts real-estate equity at 60%. That is a heavy discount, so a property-heavy household can fall short of the minimum assets.
- Cash buyers. Someone who paid cash for a property and wants liquidity back may look at delayed financing, an exception to normal seasoning. Bestinterest mentions it as a way to recover cash after a purchase. It is not universal, and proceeds are tied closely to documented cost.
- Investment property. Only the depletion path covers it. Leverage runs 65% on a purchase or rate-and-term refinance and 60% on a cash-out.
Three Short Scenarios
These are hypothetical, with no dollar figures beyond the examples above.
The portfolio-heavy retiree. A household holds mostly brokerage and savings, with modest pension income. The qualifier path fits if eligible assets cover the loan. The question to put to the lenders is whether cash-out is available there, and at what leverage.
The property-heavy owner. Most of the wealth is in real estate, with a smaller liquid balance. The depletion path counts equity at 60%, but the minimum-liquid rule may be the limiting factor. If that rule blocks the file, a different structure, such as a full-documentation or bank statement program, may be worth comparing.
The founder after a sale. The business sold, and the proceeds sit in a regulated account. The privately held shares are not an eligible asset, but the seasoned cash is. Sale proceeds are excused from the 120-day statement age on the depletion path. The qualifier path wants 60 days of seasoning. Which path is better depends on the loan size and the leverage you need.
Costs, Tax and Risk
Pricing and fees come from the lender and are not discussed here. Ask for the full terms in writing from each lender, and compare them side by side.
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.
This is not the right move in several cases:
- Your eligible assets, after percentages, fall short of the loan or the minimums.
- Your portfolio is concentrated in assets that do not count.
- The cash would leave you too thin after closing.
- Plain debt payoff would work with a smaller loan and better leverage.
Programs change, and every file is underwritten individually. Treat every figure here as a ceiling or a floor, subject to underwriting.
How Do You Prepare a File?
Gather early. Statements are the heart of an asset-based file.
1. List every account, with its owner, type and balance.
2. Pull recent statements and check their age against the path you want.
3. Move any ineligible holdings you plan to use into a regulated cash account, and let them season.
4. Gather ownership and lien documents for the property.
5. Pull your credit and look for housing-history problems.
6. Decide the goal for the cash before you apply.
A broker then asks several lenders the same questions. Leverage, asset treatment, minimums and cash-out rules all differ by lender, and the best program for your situation depends on that comparison.
Key Terms Defined
Asset qualifier: a path where eligible assets must equal or exceed the entire loan, with no employment or income documented.
Asset depletion: a path where eligible assets are divided by 60 months to create a monthly qualifying income.
Haircut: the part of an asset’s balance that a lender does not count, to account for risk or volatility. The share that remains is what counts toward qualifying, so securities that count at 80% carry a 20% haircut.
Cash-out refinance: a new loan that pays off the old one and gives you the difference in cash.
Rate-and-term refinance: a new loan that replaces the old one without giving you meaningful cash.
Seasoning: how long money must sit in your account before it counts.
Loan-to-value (LTV): the loan amount as a percentage of the property’s value.
Debt-to-income (DTI): your monthly debts, including the new housing payment, compared with your monthly income.
Frequently Asked Questions
Can I use retirement accounts to qualify?
Yes, at a discount. On the qualifier path, a 401(k) or IRA counts at 90% under age 59½ and 100% at 59½ or older. On the depletion path, retirement accounts count at 70% at any age. Eligibility is subject to underwriting.
Do cash-out proceeds count as assets or reserves?
No. On the depletion path, cash-out proceeds never count as qualifying assets. The assets that qualify you need to exist before the loan. Reserves on the qualifier path are not required at or below 75% loan-to-value.
Can I do this on a second home or investment property?
A second home works on both paths. Investment property works only on the depletion path, where the loan is business-purpose. On the depletion path, cash-out leverage is 60% for a principal residence, a second home and an investment property alike.
Is this the same as borrowing against my portfolio?
No. Your assets are documented to qualify, but they are not sold or pledged as collateral. The property secures the loan. Your portfolio stays invested.
What if my wealth is mostly in my business or in the house?
Privately held company stock is not an eligible asset on either path. Convert it to a seasoned cash balance through a sale or buyout. If your wealth is mostly property equity, the depletion path counts equity at 60%, and other structures may fit better.
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. Programs are placed through select lenders, subject to lender guidelines. This is not a commitment to lend.
If your income is hard to document in the usual way, Lendmire’s piece Best Asset-Based Cash-Out Refinance Program Without Verifying Personal Income walks through that angle.
About Lendmire
As a mortgage broker (NMLS# 2371349), Lendmire helps self-employed and high-net-worth borrowers in 16 states qualify on bank statements, a profit-and-loss statement, 1099s or liquid assets instead of tax returns, through wholesale lenders. Lendmire is never the lender; program terms are set by the lender and its guidelines. Scotsman Guide named Lendmire a Top Mortgage Workplace in both 2025 and 2026.
Investors weighing their equity options can start with 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
1. Bestinterest asset depletion guide
2. CFPB ability-to-repay and qualified mortgage rule
3. CFPB small entity compliance guide
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 on an Inherited Property
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
- Mortgage Loan Originator · NMLS# 1129696 · Verify on NMLS Consumer Access
- North Carolina Real Estate Broker · License# 343312 · Verify on NCREC
- North Carolina Insurance Producer · License# 19053198 · Property, Casualty, Life, Health · Verify on NAIC SBS
- Lendmire LLC · Firm NMLS# 2371349 · Verify firm licensure
Compliance and disclosures. Lendmire (NMLS# 2371349) is a licensed mortgage broker and is not a direct lender, depository institution, financial advisor, or tax professional. Content in this article is general market analysis and educational information — not financial, legal, or tax advice for any specific situation. Lendmire does not guarantee loan approval; every transaction is subject to underwriting by the funding lender. Mortgage pricing and loan program guidelines are subject to change at any time without notice and vary by borrower characteristics, property type, and state regulations. Lendmire complies with Equal Housing Opportunity. Licensure verification: NMLS Consumer Access.