The Quick Read: The best program for your situation depends on whether your assets cover the loan outright or have to become monthly income. Through select programs in Lendmire’s wholesale network, the asset qualifier path documents no employment or income. The asset depletion path turns your assets into qualifying income. Cash-out leverage differs sharply between the two, and that is what decides how much card debt you can clear.
- Asset qualifier path: eligible assets must equal or exceed the entire loan. Whether cash-out is allowed, and at what leverage, is set by the lender and not published.
- Asset depletion path: usable assets divided by 60 months become qualifying income. Cash-out tops out at 60% loan-to-value (LTV) on a principal residence, second home or investment property.
- Cash-out proceeds never count as qualifying assets on the depletion path.
- Statements are required. You skip traditional personal-income documentation, pay stubs and employment verification, not documentation.
- Consumer card debt belongs on a consumer loan. A principal residence or second home is the usual fit.
Subject to underwriting, and not a commitment to lend. Every figure below is a ceiling or a floor, never an offer.
What Is an Asset-Based Cash-Out Refinance?
An asset-based mortgage is reviewed around what you own, not on a paycheck. Lendmire is a broker. It places these loans through select lenders and does not lend or underwrite them itself. The program suits people with large balances and thin documented income: retirees, business sellers, inheritance or settlement recipients, early-retired professionals, and households living off a portfolio.
A cash-out refinance replaces your current mortgage with a larger one. The extra money comes to you at closing, and it can pay off credit cards. Replacing revolving card balances with one mortgage can lower your monthly outflow. The catch is that unsecured debt becomes debt secured by your home.
Lendmire’s asset-based mortgage programs are written for consumers on a principal residence or second home. An investment property is eligible only on the depletion path, where the loan is business-purpose.
Key Terms Defined
Asset qualifier path: the loan is reviewed on assets alone. Eligible assets, after credit percentages, must equal or exceed the whole loan.
Asset depletion path: your usable assets are divided by 60 months to create a monthly qualifying income. That income carries the housing payment and your other debts.
Haircut: the share of an account’s balance a lender refuses to count. A securities account counted at 80% has a 20% haircut.
Seasoning: how long money has sat in your accounts before it counts.
Cash-out proceeds: the money left after the old mortgage, liens and closing costs are paid. This is the cash you receive.
Debt-to-income (DTI): monthly debts divided by monthly qualifying income. The depletion path runs through this test.
How Does the Cash Pay Off Your Cards?
At closing, the new loan pays off your existing first mortgage and any liens first. The remainder is your cash-out. Where a program allows it, creditors can be paid directly from the closing statement, which gives you the cleanest paper trail.
Step by step, the file usually runs like this:
1. You pick the path based on your assets and how much cash you need.
2. You supply statements for every account that counts.
3. The lender orders an appraisal and reviews your credit and housing history.
4. Underwriting confirms the numbers on that path.
5. At closing, the old mortgage and costs are paid, then the card balances if directed, then any remainder reaches you.
Credit cards are the easy part. The file turns on whether your assets pass the path’s test. The cards then follow from the cash-out leverage.
The Two Paths Compared
You qualify on one path at a time. Never blend the two sets of numbers. The figures below come from select programs in Lendmire’s network and are subject to underwriting.
| Factor | Asset Qualifier | Asset Depletion |
|---|---|---|
| How assets work | Must cover whole loan | Assets ÷ 60 = income |
| Income documented | None | Derived from assets |
| Purchase LTV | Up to 80% | 80% primary/second; 65% investment |
| Refinance LTV | Up to 75% | 80% rate-and-term; 60% cash-out |
| Loan amount | Up to $4,000,000 | $125,000–$3,500,000 |
| Credit | 600 minimum | Lender’s matrix |
For card consolidation, the depletion path publishes a cash-out ceiling. The qualifier path leaves cash-out to the lender, so a broker has to ask which lenders allow it on your file.
How Does Underwriting Count Your Assets?
Lenders credit only part of most balances. The percentages differ by path, so never mix them.
| Asset | Qualifier Path | Depletion Path |
|---|---|---|
| Brokerage/securities | 100% | 80% |
| CDs | 100% | 100% |
| Money market/savings | 100% | 100% (cash) |
| 401(k)/IRA | 90% under 59½; 100% at 59½+ | 70% at any age |
| Real-estate equity | Not listed | 60% |
Privately held company stock is not an eligible asset on either path. Neither are cryptocurrency, precious metals, collectibles, or pledged and borrowed funds. Founders and shareholders use a different route. A sale or buyout is converted into a seasoned cash balance in a regulated account, and the lender reviews where the money came from.
Seasoning differs too. On the qualifier path, assets need 60 days of seasoning and two months of statements per account. On the depletion path, statements must be at least 120 days old at application, plus one within 45 days. Sale-of-business, inheritance and legal-settlement funds are excused from that seasoning.
What Does the Math Look Like?
These examples are illustrative. The lender’s own calculation governs.
Qualifier path. Take an $800,000 loan. You hold $330,000 in brokerage accounts (100%, 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). That counts $800,000 of usable assets, which covers the loan on assets alone.
Depletion path. Say you hold $1,500,000 in securities (80%, so $1,200,000) and $300,000 in cash (100%, so $300,000). Usable assets are $1,500,000. Divide by 60 months and you get $25,000 of monthly qualifying income. That income must carry the housing payment and your other debts through the DTI test.
The depletion path also requires qualified assets of at least the lesser of $1,000,000 or 1.25 times the loan balance. If depletion is your only income source, you need at least $250,000 liquid. Asset income can also supplement documented income up to a 45% DTI. In that case the minimum-assets rule is waived.
Which Program Fits Which Situation?
The best program for your situation depends on what you hold and what you need.
| Your situation | Likely fit |
|---|---|
| Liquid assets exceed the whole loan | Asset qualifier |
| Large portfolio, need modest cash-out | Asset depletion |
| Mostly retirement and real-estate equity | Depletion, at haircuts |
| Wealth is private company stock | Convert to cash first |
| Steady documented income, modest assets | Standard program instead |
| Card debt is personal, property is a rental | Consumer loan on your home |
Honest limits apply. If you have strong documented income, a conventional refinance may cost less. A first-time investor on the depletion path needs a 700 credit score. Housing history is 0x30x12, though one 30-day late in the last twelve months is considered case by case. Multiple bankruptcies are not eligible. A housing event needs four years of seasoning on the depletion path. Each figure is subject to lender guidelines and a complete review of property type, leverage, and credit.
Personal Cards and Rental Collateral
Here is where investors trip up. Loans on non-owner-occupied rentals are treated as business-purpose. CFPB Regulation Z deems credit to acquire, improve or maintain such a property to be for business purposes. The test looks at the purpose of the loan, not only the collateral, as Compliance Alliance explains. Paying personal card debt from a business-purpose loan strains that premise.
Business-purpose investor loans are reviewed differently from a standard owner-occupied mortgage. Personal card payoff usually belongs on a consumer loan against a primary residence or second home. If your card debt is business debt, an investment-property file is the more natural fit. Sort the debts into business and personal buckets before you apply.
How Does This Compare With the Alternatives?
| Option | Core trade-off |
|---|---|
| Asset-based cash-out | Reviewed on assets; lower leverage |
| HELOC | Variable line; keeps first mortgage |
| Bank statement program | For income documented by deposits |
| Conventional cash-out | Needs documented income |
| Balance transfer | Short window; unsecured |
| Consolidation loan | Unsecured; shorter term |
If your wealth shows up as deposits from a business, the bank statement route may fit better.
What Are the Risks?
- Unsecured becomes secured. Missed payments now put your home at risk, not just your credit.
- Cards can refill. Consolidation only helps if the balances stay at zero.
- The term resets. Stretching card debt over a mortgage term can cost more over time.
- Costs offset savings. Closing costs and pricing adjustments can erase interest savings on small balances.
- Leverage rises. Your liquid assets stay put, but the home now backs the card debt.
Run a breakeven view with your lender before committing. Tax treatment varies; consult a qualified professional.
What Should You Gather Before Applying?
- Two months of statements for every account you plan to count (qualifier path), or statements at least 120 days old plus one within 45 days (depletion path).
- Documentation of any sale, inheritance or settlement proceeds.
- Current mortgage statement and a list of card balances to pay off.
- Homeowners and property details for the appraisal.
- Your age, since it changes retirement-account credit on the qualifier path.
Frequently Asked Questions
Can I use cash-out proceeds to qualify?
No. On the depletion path, cash-out proceeds never count as qualifying assets. Your existing, seasoned balances do the qualifying. The new cash only pays off debts or goes to you.
Does privately held company stock count?
No. Founders and shareholders convert a sale or buyout into a seasoned cash balance in a regulated account. Public securities and retirement accounts count at their percentages.
Is this a no-documentation loan?
No. The file is fully underwritten. You skip traditional personal-income documentation, pay stubs and employment verification, but your assets are documented with statements.
Which path gives me more cash-out for card payoff?
The depletion path publishes a 60% cash-out ceiling on all three property types. The qualifier path leaves cash-out leverage to the lender, so a broker checks which lenders allow it on your file. Both are subject to underwriting. Leverage, reserves, and pricing vary by lender and program; the final terms follow the full file review.
Where is this available?
Lendmire’s consumer mortgage lending is licensed in 16 states: Alabama, California, Colorado, Florida, Georgia, Indiana, Michigan, Montana, New Mexico, North Carolina, Ohio, Pennsylvania, Tennessee, Texas, Virginia and Washington.
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.
For how equity extraction works on an investment property, see Lendmire’s guide to cash-out refinance on an investment property.
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.
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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. 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 When Your Income Is Lower Than Before · Best Asset-Based Cash-Out Refinance Program Using a Brokerage Account to Qualify · Best Asset-Based Cash-Out Refinance Program in Retirement Without a Regular Paycheck
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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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.