The Quick Read: Through select lenders in Lendmire’s wholesale network, asset-based programs review your file on what you own instead of what a pay stub shows, which suits retirees, business sellers, and households living off a portfolio, while still fully underwriting your statements, credit, and property. Cash-out depends on which of two paths your file uses.
- Two paths, one at a time. Either your assets cover the entire loan, or your assets are converted into a monthly qualifying income.
- Not undocumented. The file needs no traditional personal-income documentation, pay stubs, or employment verification on the qualifier path, but every asset is proven with statements.
- Cash-out lives on the depletion path. There, leverage is typically up to 60% on a cash-out refinance, subject to underwriting.
- Cash taken out never counts as an asset toward qualifying.
- The right program for you depends on your property type, credit profile, asset mix, and leverage need.
What Is an Asset-Based Cash-Out Refinance?
It is a mortgage refinance where your balance sheet, not your paycheck, carries the qualification. You may also hear it called asset utilization, asset depletion, or asset qualifier lending. Those names describe two different tests, covered below.
A broker like Lendmire does not lend the money. Lendmire arranges the loan through select lenders in its wholesale network and matches your situation to the program that fits. The details of the asset-based mortgage programs are published on Lendmire’s program page, and every file is underwritten individually.
Picture a recently retired professional with a large brokerage account, a paid-down house, and a pension that looks small on paper. A conventional lender sees thin income. An asset-based lender sees a borrower with seven figures in liquid balances.
Why Does Traditional Income Verification Become the Barrier?
Conventional underwriting asks one question first: what does your tax return say you earn? That works for a salaried employee. It fails for a lot of wealthy borrowers.
Here are the people who hit the wall most often:
- Retirees drawing on savings instead of a salary.
- Founders who sold a company and are between ventures.
- Households that received an inheritance or a legal settlement.
- Early-retired professionals living on a portfolio.
- Investors whose returns show heavy write-offs and little net income.
All of them have large balances and small documented income. Asset-based programs exist for that gap.
The Two Qualification Paths
A borrower is qualified on one path at a time. Never blend them. Each has its own math, its own asset percentages, and its own leverage.
The asset qualifier path asks whether your eligible assets, after the credit percentages, equal or exceed the entire loan amount. No employment or income is documented. The asset depletion path divides your usable assets by 60 months to create a monthly qualifying income. That income must then carry the housing payment and your other debts through the debt-to-income test.
| Factor | Asset Qualifier | Asset Depletion |
|---|---|---|
| Core test | Assets cover the whole loan | Assets become monthly income |
| Income documented | None | Derived from assets |
| Debt-to-income | Not used | Applies to derived income |
| Property types | Principal home, second home | Home, second home, investment |
| Best fit | Very asset-rich borrowers | Income-light, asset-heavy borrowers |
Across the wholesale network, the qualifier path appeals to borrowers whose balances dwarf the loan. The depletion path suits borrowers who want the assets to behave like a salary, or who are financing an investment property.
Can You Actually Take Cash Out?
Yes, on the depletion path, with limits. On the qualifier path, it depends on the lender.
This is where many pages online contradict each other. The reason is simple: the two paths treat cash-out differently.
On the depletion path, leverage is typically up to 60% on a cash-out refinance, whether the collateral is a principal residence, a second home, or an investment property. A rate-and-term refinance or purchase on a principal residence or second home can reach up to 80%. On an investment property, a purchase or rate-and-term refinance is typically capped at 65%. These are ceilings, not offers, and all are subject to underwriting.
On the qualifier path, the published ceilings are up to 80% on a purchase and 75% 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 each lender. Treat any promise of a number as unverified until a lender confirms it for your file.
One rule applies everywhere: cash-out proceeds never count as qualifying assets. You cannot pull equity out and then use that cash to qualify for the same loan.
Which Assets Count, and at What Percentage?
Each path credits assets differently. Here is the qualifier path first, showing the share of each balance that counts.
| Asset (qualifier path) | Share that counts |
|---|---|
| Brokerage accounts | 100% |
| Certificates of deposit | 100% |
| Money market accounts | 100% |
| Savings accounts | 100% |
| 401(k) and IRA, under age 59½ | 90% |
| 401(k) and IRA, 59½ or older | 100% |
Accounts combine. Now the depletion path, which applies steeper haircuts.
| Asset (depletion path) | Share that counts |
|---|---|
| Cash accounts | 100% |
| Certificates of deposit | 100% |
| Securities | 80% |
| Retirement accounts, any age | 70% |
| Real-estate equity | 60% |
Several things do not 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 stock is not eligible on either path. Cryptocurrency, precious metals, collectibles, borrowed or pledged funds, and business accounts beyond your ownership share are not published as eligible either. The documented route for those holdings is converting them to a seasoned cash balance in a regulated account, with the source reviewed by the lender.
Two Worked Examples
These shapes show the logic. The lender’s own calculation governs, and nothing here is an offer.
Qualifier path. Say you want an $800,000 loan. You hold $330,000 in brokerage accounts (100% counts, so $330,000), $300,000 in a 401(k) while under 59½ (90% counts, so $270,000), and $200,000 in savings (100% counts, so $200,000). That adds up to $800,000 of usable assets. Your assets alone cover the loan.
Depletion path. Now consider $1,500,000 in securities (80% counts, so $1,200,000) plus $300,000 in cash (100% counts, so $300,000). Usable assets total $1,500,000. Divide by 60 months and you get $25,000 of monthly qualifying income. That income must still carry your housing payment and other debts through the debt-to-income test.
Notice what the second example does not tell you. It says nothing about the loan amount. Leverage limits, credit, and the property all still apply.
Seasoning, Credit, and Minimums
Seasoning is the waiting period assets must sit in your accounts before a lender counts them. It is how lenders confirm the money is really yours.
- Qualifier path: 60 days of seasoning and two months of statements for each qualifying account. Credit minimum is 600. Reserves are not required at or below 75% loan-to-value; above that, the lender sets them.
- Depletion path: statements at least 120 days old at application, plus the most recent statement within 45 days. Funds from the sale of a business, an inheritance, or a legal settlement are excused from that seasoning. Credit follows the lender’s matrix. A first-time investor needs a 700 score. No reserve months are published.
- Depletion minimums: qualified assets of at least the lesser of $1,000,000 or 1.25 times the loan balance, and never below $250,000 liquid when asset depletion is your only income source. If asset income supplements documented income, it may count up to a 45% debt-to-income ratio, and the minimum-assets rule is waived.
Loan sizes run up to $4,000,000 on the qualifier path and from $125,000 to $3,500,000 on the depletion path. Housing history is typically 0x30x12, so a single 30-day late in the last twelve months is considered case by case. Multiple bankruptcies are not eligible. On the depletion path, a housing event needs 4 years of seasoning.
How to Choose Among Asset-Based Cash-Out Refinance Lenders
The lenders that write this product vary, and the right one depends on your property, credit, assets, and leverage need. That is why a broker is useful. Lendmire shops multiple wholesale lenders and matches the scenario to the program, rather than offering a single product.
What should you compare? Here is the checklist a broker runs:
1. Cash-out policy. Does the lender allow cash-out on the qualifier path at all, and at what leverage?
2. Retirement accounts. How are they credited, and does the lender care about your age?
3. Asset mix. Does your balance sheet fit the lender’s eligible list, or is conversion to cash needed first?
4. Property type. Principal home and second home run through the qualifier or depletion path; an investment property runs only on the depletion path.
5. Credit and housing history. Does your file match the lender’s matrix?
6. State availability. Lendmire’s consumer mortgage lending is licensed in Alabama, California, Colorado, Florida, Georgia, Indiana, Michigan, Montana, New Mexico, North Carolina, Ohio, Pennsylvania, Tennessee, Texas, Virginia, and Washington. If your property is elsewhere, this program is not available.
Skip any pitch that promises a yes before seeing your statements. No honest broker can.
What You Still Have to Document
“No income documents” is not the same as “no documents.” This is the most common misunderstanding. A fully underwritten file still contains a lot of paper.
- Account statements for every qualifying asset (two months on the qualifier path, 120-day-old plus a recent one on the depletion path).
- A credit review and housing payment history.
- An appraisal and title work on the property.
- A source for any large recent deposits.
- A paper trail for any asset you converted to cash.
Organize these first. Gaps in the paper trail, not weak balances, are what usually slow a file down.
Where the Rules Break: Edge Cases
Closely held company stock. If you are a founder, your wealth may sit in shares of your own company. Those shares do not count. Privately held stock is not an eligible asset on either path. A sale or buyout converted to a seasoned cash balance is the documented route.
Retirement accounts under 59½. On the qualifier path, those balances count at 90%. On the depletion path, they count at 70% at any age. The same account can be worth very different amounts depending on the path.
Cash-out proceeds. The money you pull out cannot be used to meet asset minimums. Plan your qualifying assets separately from your cash-out.
Investment property. This is allowed only on the depletion path, as a business-purpose loan. Federal rules treat credit for non-owner-occupied rental property as business-purpose, but that treatment does not apply if you expect to occupy the property for more than 14 days in the coming year. Even then, a business-purpose label is not a free pass: Lexology’s older legal commentary notes that other compliance obligations can still apply. Also, short-term rental rules can vary by city, county, HOA, and property type, so investors should confirm local rules before relying on projected rental income.
Borrowers who truly need cash-flow qualification. If your strength is a property that rents well, a DSCR loan is reviewed primarily on property-level rental income covering the payment, subject to lender guidelines. That is a separate program with different tests.
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.
Alternatives, and When Not to Do This
Asset-based is not always the answer. Sometimes a different product fits better.
| Option | What it uses | Fits when |
|---|---|---|
| Asset-based cash-out | Assets, credit, property | Large balances, thin documented income |
| Bank statement program | Business deposits | Self-employed with strong cash flow |
| DSCR loan | Property rent vs. payment | Rental property with solid rent |
| HELOC | Home equity, your income | Small, flexible borrowing |
| Rate-and-term refinance | Lower payment, no cash out | You do not need cash |
The asset-based route can be a poor fit if your assets are mostly locked in private stock, crypto, or other holdings the program does not credit. It can also make little sense if you only need a small amount of cash. Weigh the cost of a larger loan against what the money will do for you.
One more caution: pulling equity raises your balance. Make sure the use of funds justifies it.
Key Terms Defined
Asset qualifier path: A test where eligible assets must cover the entire loan amount, with no income documented.
Asset depletion path: A test that divides usable assets by 60 months to create a monthly qualifying income.
Seasoning: The period assets must sit in your accounts before a lender counts them.
Haircut: The percentage of a balance a lender does not count, such as 20% off securities.
Debt-to-income ratio: Your monthly debts divided by your monthly income, used on the depletion path.
Cash-out refinance: A new, larger loan that pays off the old one and gives you the difference in cash.
Frequently Asked Questions
Can privately held company stock count as an asset?
If you own part of a company, the documented route is a sale or buyout converted to a seasoned cash balance. Public securities, cash, and retirement accounts count at their stated percentages.
Do I need tax returns or pay stubs?
On the qualifier path, no. The file needs no traditional personal-income documentation, pay stubs, or employment verification, though the assets are fully documented with statements. On the depletion path, derived income can stand alone or supplement documented income, depending on your situation.
Does a cash-out refinance work on an investment property?
It can, but only on the depletion path. Leverage is typically up to 60% on a cash-out refinance of an investment property, subject to underwriting. Cash-out proceeds cannot count toward your qualifying assets.
What credit score is required?
The qualifier path has a 600 minimum. The depletion path follows the lender’s score and loan-amount matrix, and a first-time investor needs a 700. A clean 12-month housing history is expected, and approval is never assured before underwriting.
Is this a loan with no income checks?
No. Every file is fully underwritten. You skip the traditional personal-income documentation and pay stubs, but you document assets with statements, and the lender reviews credit, the property, and your housing history.
Where to Start
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.
About Lendmire
Lendmire (NMLS# 2371349) is a mortgage broker licensed for consumer lending in 16 states. Bank statement, P&L-only, 1099-only and asset-based mortgages for self-employed and high-net-worth borrowers are arranged through wholesale lenders on primary residences, second homes and investment properties; every file is underwritten by the lender under its program guidelines. Scotsman Guide named Lendmire a Top Mortgage Workplace in both 2025 and 2026.
For a closer look at how cash-out works when income paperwork is the obstacle, see Lendmire’s piece Asset-Based Cash-Out Refinance Options Without traditional Income Verification.
For the mechanics of pulling equity out of a rental 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
1. CFPB Regulation Z § 1026.3, Exempt Transactions
2. Lexology: 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: Asset-Based Cash-Out Refinance Options With Limited Income · Best Asset-Based Cash-Out Refinance Program Without Verifying Personal Income · Top Asset-Based Cash-Out Refinance Providers With No Income Verification
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
- Mortgage Loan Originator · NMLS# 1129696 · Verify on NMLS Consumer Access
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Important disclosures. Lendmire (NMLS# 2371349) is a licensed mortgage brokerage. Lendmire is not a direct lender, depository institution, or financial advisor. All loan inquiries are subject to lender underwriting; this article does not constitute a commitment to lend. Rates, terms, and program guidelines are subject to change without notice and vary by borrower profile, property type, and state. Information in this article is general in nature and is not financial, legal, or tax advice. Equal Housing Opportunity. NMLS Consumer Access: nmlsconsumeraccess.org.