The Quick Read: The best program for your situation is the asset depletion path, because it is the route with a published cash-out ceiling: 60% loan-to-value on a principal residence, through select programs and subject to underwriting. The asset qualifier path has its own limits on purchases and refinances, but its cash-out terms are set by the lender and not published.
- Two paths exist. The asset qualifier path covers the whole loan with eligible assets. The asset depletion path turns assets into monthly income.
- Depletion cash-out ceiling: 60% on a principal residence or second home. Purchase and rate-and-term reach 80% on that path.
- Cash-out proceeds never count as qualifying assets.
- You document assets, not income. Expect statements, but no traditional personal-income documentation, pay stubs or employment verification.
- Not a DSCR product. A rental loan cannot sit on the home you live in.
Plenty of people hold large balances and show little taxable income. Retirees, business sellers and portfolio households fit that picture. For them, a cash-out against the home they live in is often possible, but “maximum LTV” is not one number. It changes with the path, the transaction and the occupancy. This guide walks through each piece, so you can see where your numbers land.
What Does “Asset-Based” Mean on a Primary Home?
An asset-based mortgage is reviewed around what you own, not on what you earn. Lenders in Lendmire’s wholesale network review brokerage, savings, certificate and retirement balances instead of pay stubs. The loan is a consumer mortgage on a home you occupy. It is fully underwritten, and the assets are documented with statements.
Lendmire is a broker. It places files with select lenders and matches your scenario to the program that fits. The details of asset-based mortgage programs vary by lender, so every figure below is a ceiling or floor, not an offer.
Two paths sit under the label, and a borrower is on one path at a time:
- Asset qualifier path. Your eligible assets, after credit percentages, must equal or exceed the entire loan amount. No employment or income is documented.
- Asset depletion path. Your usable assets are divided by 60 months. The result is a monthly qualifying income that must carry the housing payment and other debts through the debt-to-income test.
Key Terms Defined
- Loan-to-value (LTV): The new loan divided by the home’s appraised value.
- Cash-out refinance: A new loan larger than your payoff, with the difference paid to you.
- Rate-and-term refinance: A new loan that replaces the old one with no meaningful cash back.
- Seasoning: The time your money has sat in an account before the lender counts it.
- Haircut: The share of an asset’s balance the lender will not count.
- Debt-to-income (DTI): Your monthly debts divided by your monthly qualifying income.
Which Path Gives You the Most Cash Out?
For a published, usable cash-out number, the depletion path wins. It allows up to 60% LTV on a cash-out refinance of a principal residence or second home. The qualifier path allows up to 75% on a refinance, but whether cash-out proceeds are allowed there, and at what leverage, is set by the lender and not published. These specifics are subject to lender guidelines and a full review of property, leverage, and credit.
| Factor | Asset Qualifier | Asset Depletion |
|---|---|---|
| How assets work | Must cover whole loan | Become monthly income |
| Purchase LTV | Up to 80% | Up to 80% |
| Refinance LTV | Up to 75% | 80% rate-and-term |
| Cash-out LTV | Lender-set, not published | Up to 60% |
| Loan amounts | Up to $4,000,000 | $125,000 to $3,500,000 |
| Credit | 600 minimum | Lender’s matrix |
Read the table carefully. The 80% figure belongs to purchases and rate-and-term refinances on the depletion path. It is not a cash-out ceiling. Many borrowers see the headline number and assume it applies to cash-out. It does not.
Here is the honest decision rule. If you need real cash out and your assets are large enough, ask your broker to test the depletion path first, since its cash-out cap is known. If your assets cover the whole loan and you would rather skip the income test, ask whether a lender in the network will write cash-out on the qualifier path. Treat that answer as lender-specific.
Why Do the Answers Differ From Agency Rules?
You may have read that asset-based qualification does not allow cash-out. That is true under agency rules, the programs run by Fannie Mae and Freddie Mac. One reason given is that cash-out reduces the very assets used to qualify. Non-agency programs write their own rules, so a select program can allow cash-out where an agency program will not.
That is why the same search returns “no” on one page and “yes” on another. Both can be right. They describe different rule sets. The agency answer governs agency loans. The non-agency answer governs loans placed through select lenders, with the limits listed here.
How Is the Maximum Loan Worked Out?
Cash to you equals appraised value times the LTV ceiling, minus every payoff, minus costs. The ceiling applies to the whole new loan, so any existing mortgage and any second lien must be paid from the new loan first. What is left is your cash.
Run it in percentages. Say a home appraises at a round value and you use the depletion path’s 60% cash-out ceiling. The new loan cannot exceed 60% of that value. If your current mortgage already equals, say, 45% of value, only the gap up to 60% is available before costs. A home with a larger existing balance may leave little or nothing. Terms depend on the lender’s guidelines, the property type, the leverage, and a full review of the credit profile.
Two points catch people off guard:
1. Cash-out proceeds never count as qualifying assets. You cannot borrow money and then use it to qualify.
2. Home equity is not an asset for qualifying on the qualifier path. On the depletion path, real-estate equity counts at 60%, but the home you are refinancing is the collateral, not extra credit.
What Lowers Your Real Maximum?
The published ceiling is the top, not the typical result. Several things pull it down:
- Appraised value. A lower appraisal shrinks every dollar figure.
- Credit profile. The depletion path follows the lender’s score and loan-amount matrix. A first-time investor on the depletion path needs a 700 score. Housing history of 0x30x12 is standard, and one 30-day late in twelve months is considered case by case.
- Housing events and bankruptcies. Multiple bankruptcies are not eligible. A housing event needs four years of seasoning on the depletion path.
- Loan size. Amounts outside the program range are not available.
- Asset total. Depletion requires qualified assets of at least the lesser of $1,000,000 or 1.25 times the loan balance. It also requires at least $250,000 in liquid assets when depletion is your only income source.
Lenders also set some terms privately. Your broker asks them, so you do not have to guess.
Which Assets Count?
The credit you get differs by path, so never blend the two tables.
| Asset | Qualifier Path | Depletion Path |
|---|---|---|
| Brokerage accounts | 100% | Securities 80% |
| Certificates of deposit | 100% | 100% |
| Money market and savings | 100% | Cash accounts 100% |
| Retirement accounts | 90% under 59½, 100% after | 70% at any age |
| Real-estate equity | Not listed | 60% |
Accounts combine. Privately held company stock is not an eligible asset on either path. Neither are stock options or non-vested restricted stock units. On the depletion path, custodial accounts, deferred compensation, escrow accounts, foreign funds, cash on hand and funds from non-regulated financial companies are also out.
Cryptocurrency, precious metals, collectibles and pledged or borrowed funds are not published as eligible on either path. A founder or shareholder has a clear route: convert the holding into a seasoned cash balance in a regulated account. A sale or buyout, then a documented cash balance, is the documented route. The lender reviews the source of those funds.
A Qualifier Example
Say you want an $800,000 loan on the qualifier path. 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). Usable assets total $800,000, which covers the loan and is reviewed on assets alone, subject to underwriting.
A Depletion Example
Now say you hold $1,500,000 in securities (80%, so $1,200,000) and $300,000 in cash (100%). Usable assets total $1,500,000. Divided by 60 months, that yields $25,000 of monthly qualifying income. That income then carries the housing payment and other debts through the debt-to-income test. This arithmetic is illustrative, and the lender’s own calculation governs.
Seasoning and Documents
Seasoning differs by path:
- Qualifier path: 60 days of seasoning and two months of statements per qualifying account.
- Depletion path: statements at least 120 days old at application, plus the most recent statement within 45 days. Funds from a business sale, inheritance or legal settlement are excused from that seasoning.
A practical checklist:
- Statements for every account you want counted
- Proof of ownership and the source of any large recent deposit
- Your current mortgage statement and payoff details
- Identification and homeowners information for the property
Reserves are modest on paper. The qualifier path requires none at or below 75% LTV. Above that, the lender sets them. The depletion path publishes no reserve months. The exact numbers vary by lender and program and follow a full review of property, leverage, and credit.
How the Underwriting Flows
The process is the same on both paths up to the math:
1. Choose the path. Your broker compares your statements to both tables.
2. Verify and season assets. The lender confirms ownership and seasoning.
3. Apply the percentages. Each asset is counted at its share.
4. Test the loan. Qualifier: assets must cover the loan. Depletion: derived income runs through DTI.
5. Appraise and cap the LTV. The appraisal sets the value that the ceiling applies to.
6. Close with consumer protections. This is a consumer mortgage on your home, so standard consumer disclosures apply.
Asset-derived income can also supplement documented income, up to a 45% debt-to-income ratio. When it supplements, the minimum-assets rule is waived.
Why You Cannot Use a Rental Loan on Your Own Home
Business-purpose rental loans are for investment property you do not live in. The CFPB’s Regulation Z commentary treats credit for a non-owner-occupied rental as business purpose, with a test of whether the owner expects to occupy the property for more than 14 days in the coming year. Your primary home fails that test by definition.
The label does not change the facts. A cash-out on the home you live in is consumer credit. The CFPB’s Ability-to-Repay compliance guide says a creditor must consider eight factors. It also says the rule does not provide comprehensive underwriting standards. That is why asset-based programs can set their own method, as long as the lender reasonably assesses repayment. “Asset-based” never means “no underwriting.”
If you want cash for another purchase, a separate route exists. An investor can pull cash from a rental through a business-purpose refinance instead. That is a different product with its own leverage.
Who Should Skip This?
Asset-based cash-out is not for everyone. Skip it, or compare alternatives, if:
- You need more than 60% LTV of cash-out on the depletion path.
- Your assets fall below the depletion minimums.
- You earn solid, documented income and could use a standard program.
- You deposit business revenue and would rather document income by deposits. That is the territory of the bank statement program. Final terms depend on the lender’s guidelines, the property type, and the borrower’s complete credit picture.
Compare, too, a smaller cash-out, a rate-and-term refinance, or a home equity line. A rate-and-term on the depletion path reaches 80%, which can beat a cash-out when you only need to restructure the loan. A home equity line leaves your first mortgage alone, which matters when your current loan is already well below its current value. Each choice depends on your balance, your existing loan and what you need the money for.
For a related walkthrough of the mechanics on closing, see Lendmire’s guide How to Close a Cash-Out Refinance at Maximum LTV on a Primary Home.
Frequently Asked Questions
Can I use cash-out proceeds to qualify for the loan?
No. Cash-out proceeds never count as qualifying assets on the depletion path. The lender counts only assets that exist before the loan.
Does privately held company stock count?
No. A founder’s route is documented liquid assets, such as seasoned proceeds from a sale or buyout, plus cash, public securities and retirement accounts at their percentages.
Is this a no-documentation loan?
No. Every file is fully underwritten. You document assets with statements. What you skip is tax returns, pay stubs and employment verification on the qualifier path.
Is 80% the maximum on a cash-out?
No. On the depletion path, 80% applies to a purchase or rate-and-term refinance of a principal residence or second home. Cash-out is up to 60%. Qualifier-path cash-out terms are set by the lender and not published.
Where is this offered?
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. Programs change, and every file is underwritten individually. Nothing here is a commitment to lend.
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 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.
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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 and commentary
2. CFPB ATR/QM 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 in Retirement on a Fixed Income
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
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.