The Quick Read: Yes, in many cases, because select non-QM programs let a borrower qualify on documented brokerage assets instead of tax returns, pay stubs or employment verification, subject to underwriting and lender guidelines. The home or rental secures the loan, and the account only supplies qualifying strength.
- On the asset depletion path, a brokerage account counts at 80% and the cash-out ceiling is 60% on every occupancy type.
- A rental property can use only the asset depletion path, where cash-out tops out at 60% on an investment property.
- Cash-out proceeds never count as qualifying assets.
- Home equity and privately held company stock are not eligible assets.
- Nothing is sold or pledged. The property is the collateral.
Plenty of borrowers have seven figures in a brokerage account and a tax return that looks like a part-time job. Retirees, business sellers, and early-retired professionals all land here. A traditional lender sees thin income and stops. An asset-based mortgage reads the balance sheet instead. Whether it works for a cash-out depends on which path the file fits, what the property is, and how much leverage the program allows. Lendmire arranges these loans as a broker through select lenders, and its asset-based mortgage programs are the starting point for the mechanics below.
What Does “Asset-Based Cash-Out Refinance” Actually Mean?
It is a refinance that replaces your current mortgage with a larger one and hands you the difference, with qualification resting on documented assets rather than documented income. Two things it is not: a loan secured by your portfolio, and a reason to sell your investments.
The assets are not collateral. The property secures the loan. The brokerage account is evidence that you can carry it. You keep the securities invested, and the lender reviews statements rather than liquidating anything.
Lendmire still places these as fully underwritten consumer mortgages. The file is documented, just differently. Instead of tax returns, pay stubs and employment verification, you provide account statements. Credit, the property appraisal, and housing history all still get reviewed.
Which of the Two Paths Fits Your Situation?
The asset qualifier path fits when your eligible assets, after credit percentages, equal or exceed the entire loan. The asset depletion path fits when assets are large but the loan is larger, because it converts assets into monthly income instead. A borrower is reviewed on one path at a time.
Here is how they compare on the points that matter for a cash-out:
| Factor | Asset qualifier | Asset depletion |
|---|---|---|
| How assets qualify you | Must cover the whole loan | Converted to monthly income |
| Brokerage counted at | 100% | 80% |
| Cash-out leverage | Lender-set, not published | 60% on all occupancies |
| Investment property | Not available | Available |
| Loan amounts | Up to $4,000,000 | $125,000 to $3,500,000 |
| Debt-to-income test | No income documented | Derived income runs through it |
On the qualifier path, whether cash-out proceeds are allowed at all, and at what leverage, is set by the lender and is not published. A refinance there goes up to 75% on a principal residence or second home. If your goal is specifically to pull cash out, ask the broker to confirm cash-out eligibility on that path before you build a plan around it. The depletion path is where cash-out has a published ceiling, so it carries most of the weight here.
How Does Underwriting Treat a Brokerage Account?
On the asset qualifier path, brokerage accounts count at 100% of the balance. On the asset depletion path, securities count at 80%. That discount, called a haircut, reflects the risk that markets fall or that selling would cost something.
Across most programs we place files with, the account-by-account treatment looks like this:
| Asset | Qualifier path | Depletion path |
|---|---|---|
| Brokerage and securities | 100% | 80% |
| Cash, savings, money market | 100% | 100% (cash accounts) |
| Certificates of deposit | 100% | 100% |
| Retirement (401(k), IRA) | 90% under 59½, 100% at 59½+ | 70% at any age |
| Real-estate equity | Not eligible | 60% |
Real-estate equity at 60% on the depletion path is equity in other real estate you own. Equity in the subject property does not count as an asset for that property’s own loan.
Accounts combine. A borrower can stack brokerage, savings and a retirement account to reach the number. Every figure here is a ceiling or floor under select programs, not an offer, and the lender’s own calculation governs.
What Does the Math Look Like on Each Path?
On the qualifier path, usable assets must at least equal the loan. On the depletion path, usable assets divided by 60 months become monthly qualifying income. Both examples below are illustrative, and the lender’s own calculation controls.
Qualifier path. Picture a borrower seeking an $800,000 loan with $330,000 in brokerage accounts (100% counts, so $330,000), $300,000 in a 401(k) while under 59½ (90%, so $270,000) and $200,000 in savings (100%, so $200,000). Usable assets total $800,000, which equals the loan, so the file is reviewed on assets alone, subject to underwriting.
Depletion path. Now consider $1,500,000 in securities (80% counts, so $1,200,000) plus $300,000 in cash (100%, so $300,000). That is $1,500,000 usable. Divided by 60 months, it produces $25,000 of monthly qualifying income. That income then has to carry the housing payment and other debts through the debt-to-income test. A borrower with heavy existing debts can fail here even with a large portfolio, which is why the divisor and the DTI step both deserve a second look before you apply.
The depletion path also has minimum-asset rules. Qualified assets must be at least the lesser of $1,000,000 or 1.25 times the loan balance, and never below $250,000 liquid when depletion is the only income source. If you have documented income as well, asset-derived income can supplement it up to a 45% debt-to-income ratio, and the minimum-assets rule is waived in that case.
Where Does a Cash-Out Change the Rules?
A cash-out is the tightest leverage case. On the depletion path it is capped at 60% loan-to-value on a principal residence, a second home, or an investment property, compared with 80% on a purchase or rate-and-term refinance for a residence and 65% for an investment property.
Two rules decide most cash-out files:
- Proceeds never count as assets. The cash you pull out cannot be added back to your qualifying balance or used to meet the asset test. The qualifying assets have to stand on their own before the refinance.
- Equity is not repayment capacity. A home worth a lot with a small mortgage does not prove you can service a bigger one. The assets or derived income do that work.
Rental property is the narrow lane. Only the depletion path applies to an investment property, and the cash-out ceiling there is 60%. That is lower than what rent-based financing typically reaches. A rent-based DSCR cash-out generally tops out near 75% loan-to-value on a standard rental through select programs, but it qualifies primarily on property-level rental income covering the payment, subject to lender guidelines. For a landlord whose rent coverage is weak, the asset route may be the only structure that works. For a landlord whose rents clear the payment comfortably, the DSCR route often gives more cash-out, though it means a different file and different tradeoffs. A broker can run both side by side, since haircuts, divisors and caps differ by program.
What Assets Do Not Count?
Home equity, privately held company stock, and several other asset classes do not qualify. These come up constantly and trip up founders and executives especially.
A founder or shareholder’s route is documented liquid assets: seasoned proceeds from a sale or buyout, cash, public securities, and retirement accounts at their haircuts. Once a tender or secondary sale lands in a regulated account and stays there, it counts at the percentage for that account type.
Other items fall outside the published eligible list on both paths:
- Cryptocurrency, precious metals and collectibles. The documented route is converting them to a seasoned cash balance in a regulated account, with the source reviewed by the lender.
- Pledged or borrowed funds, and business accounts beyond your ownership share.
- On the depletion path specifically: 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.
Retirement accounts deserve one more note. They count, but at a different rate depending on the path, and the qualifier path’s credit steps up once you reach 59½.
What Will You Need to Document?
You will need statements, and they need to be old enough. The assets are documented on both paths. “No income documentation” never means “no documentation.”
- Qualifier path: 60 days of seasoning and two months of statements for each qualifying account.
- 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: a 600 minimum score is the qualifier path’s published floor. The depletion path follows the lender’s score and loan-amount matrix, and a first-time investor there needs 700. Housing history is 0x30x12, though one 30-day late in the last twelve months is considered case by case. Multiple bankruptcies are not eligible, and a housing event needs 4 years of seasoning on the depletion path.
- The property: an appraisal and a current mortgage statement, as with any refinance.
Experience pattern worth knowing: most declines on asset files trace to a short list. Common causes include a deposit that cannot be sourced, an account titled to someone not on the loan, statements that are too fresh, or a derived income that falls short after the new payment. Fixing those before applying beats explaining them afterward. On the depletion path, markets can also move between application and closing, so a balance sitting right at the minimum has little cushion.
Why Some Investors Land on a Different Product
If the assets do not carry the loan, other structures may fit better. The bank statement program is for borrowers who document income with deposits. Business-purpose rental financing is DSCR, which looks at rent against the payment. A DSCR HELOC is not an asset-based product, so if the file depends on assets, a closed-end loan is usually the cleaner route.
Check prepayment terms on any program you consider, since cash-out loans of various kinds commonly carry them.
A short regulatory note. DSCR loans are designed for non-owner-occupied investment properties, and because they are business-purpose investor loans they are reviewed differently from a standard owner-occupied mortgage. Federal rulemaking treats investment-purpose loans as business-purpose, which puts them outside the consumer ability-to-repay provisions. An asset-based loan on a principal residence or second home is a consumer mortgage, and consumer disclosure rules apply.
Key Terms Defined
- Haircut: the share of an account balance the lender counts, discounted for market and withdrawal risk.
- Seasoning: how long funds have sat in an account before the lender will count them.
- Asset depletion: a method that divides usable assets by a set number of months to produce monthly qualifying income.
- Cash-out refinance: a new, larger mortgage that pays off the old one and gives you the difference.
- Debt-to-income (DTI): monthly debts compared with monthly qualifying income.
Frequently Asked Questions
Do I have to sell my stocks to qualify?
No. The lender reviews balances and account types from your statements, and nothing is sold or pledged. The calculation is on paper, and your portfolio stays invested. Statements still have to meet the seasoning rules for the path you use.
Can I count the cash I pull out toward my qualifying assets?
No. Cash-out proceeds never count as qualifying assets on the depletion path. Your existing assets have to support the file on their own, so plan the balance you will show before the refinance, not after it.
Is a brokerage account treated differently from retirement money?
Yes. On the qualifier path brokerage counts at 100%, while a 401(k) or IRA counts at 90% under 59½ and 100% at 59½ or older. On the depletion path securities count at 80% and retirement accounts at 70% at any age. Both are subject to underwriting.
Can I use this on a rental property?
Yes, through the asset depletion path only. Investment property goes up to 60% on a cash-out and 65% on a purchase or rate-and-term refinance, with a minimum asset requirement and the lender’s score matrix. Compare it against a rent-based structure, since the right fit depends on your rental coverage.
What if my portfolio drops before closing?
Balances are reviewed against the statements used for the file, so a significant drop can change what counts. A borrower sitting close to the minimum assets has the least room. Keeping a cushion above the threshold is the practical protection.
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 brokerage serving self-employed and high-net-worth borrowers in 16 states. Bank statement, P&L-only, 1099-only and asset-based mortgages are arranged through wholesale lending channels; Lendmire brokers the financing and the lender underwrites each application. Scotsman Guide named Lendmire a Top Mortgage Workplace in both 2025 and 2026.
Get Started
Ready to find the right loan for you?
See your offer in seconds. No credit pull, no obligation.
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
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 Requirements With No Income Verification · Asset-Based Cash-Out Refinance Requirements With No Income Other Than Assets · Best Asset-Based Cash-Out Refinance Program for a Retiree Living on Investments
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
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.