The Quick Read: The best program after ninety days depends on whether your assets cover the loan outright or turn into qualifying income, and ownership seasoning is each lender’s own policy, so ninety days is something to confirm for your file, not something to count on.
- Asset qualifier path: your eligible assets must equal or exceed the entire loan. Leverage runs up to 80% loan-to-value on a purchase and 75% on a refinance of a principal residence or second home. Cash-out terms on this path are set by the lender and are not published.
- Asset depletion path: your usable assets are divided by 60 months to create qualifying income. Leverage runs up to 60% on a cash-out refinance of a principal residence, second home, or investment property.
- Two clocks: the time you have owned the property is one clock. The age of your statements is another. The qualifier path wants 60 days of seasoning on assets, and the depletion path wants statements at least 120 days old.
- Private stock: privately held company stock is not an eligible asset on either path.
- One path at a time: you qualify on the qualifier path or the depletion path, never a blend of the two.
All figures are ceilings and floors from select programs in Lendmire’s wholesale network, subject to underwriting. They are not offers.
What “Asset-Based” Means Here
Here, asset-based means qualifying on what you own, not on what a pay stub says you earn. People also use the phrase for hard-money loans secured by the property. That is a different product. Here the borrower is the focus, and the property is the collateral.
This fits a cash-heavy, income-light reader. Think of a retiree, someone who sold a business, an heir, a settlement recipient, an early-retired professional, or a household living off a portfolio. Balances are large. Documented income is small or absent.
The asset-based mortgage is not a no-documentation loan. Every file is fully underwritten. You skip traditional personal-income documentation, pay stubs, and employment verification, but you document the assets with statements. Lendmire is a broker. It places these files with select lenders in its network, and those lenders review and approve them. You can see the program overview on Lendmire’s asset-based mortgage programs page.
Key Terms Defined
Seasoning: the waiting period a lender wants between two events. It can apply to how long you have owned the property, how old your statements are, or how old the loan being paid off is.
Cash-out refinance: a new loan that pays off the old one and hands you the difference in cash.
Asset qualifier path: the route where eligible assets, after the credit percentages below, must cover the whole loan amount. No employment or income is documented.
Asset depletion path: the route where usable assets divided by 60 months become monthly qualifying income. That income then runs through the debt-to-income test, which compares monthly debts to income.
Haircut: the share of an account’s balance a lender refuses to count, because the account can lose value or carries restrictions.
Delayed financing: an exception for documented cash buyers who want to borrow against a property they just bought without waiting out the full ownership period.
Which Path Fits You?
Start with one question. Do your assets alone cover the loan? If yes, the qualifier path may fit. If they do not, but they are large enough to produce income on paper, the depletion path may fit. The numbers differ, so the table keeps them apart.
| Factor | Asset qualifier | Asset depletion |
|---|---|---|
| How you qualify | Assets cover the whole loan | Assets ÷ 60 months = income |
| Cash-out leverage | Lender-set, not published | 60% on cash-out, all occupancies |
| Investment property | Not published | Yes, business-purpose |
| Loan amounts | Up to $4,000,000 | $125,000 to $3,500,000 |
| Credit | 600 minimum | The lender’s matrix |
If you want cash out of a rental, the depletion path is the one with published terms. On an investment property, the depletion path allows up to 65% on a purchase or rate-and-term refinance and 60% on a cash-out. On a principal residence or second home, it allows up to 80% on a purchase or rate-and-term refinance and 60% on a cash-out.
A first-time investor on the depletion path needs a 700 score. Housing history is expected at 0x30x12, meaning no 30-day late payments in twelve months. One late payment is considered case by case. Multiple bankruptcies are not eligible, and a housing event needs four years of seasoning on the depletion path. Approval is never promised, and credit is always reviewed.
What Counts as an Asset?
Each path counts assets differently. The two tables below show the share of each balance that counts, subject to underwriting. Read the label above each one to see which path it covers.
Asset qualifier path: share of each balance that counts
| Asset | Share counted |
|---|---|
| Brokerage accounts | 100% |
| Certificates of deposit | 100% |
| Money market and savings | 100% |
| 401(k) and IRA, under age 59½ | 90% |
| 401(k) and IRA, 59½ or older | 100% |
Accounts combine. You can stack them to reach the loan amount.
Asset depletion path: share of each balance that counts
| Asset | Share counted |
|---|---|
| Cash accounts | 100% |
| Certificates of deposit | 100% |
| Securities | 80% |
| Retirement accounts, any age | 70% |
| Real-estate equity | 60% |
Counting a retirement account does not mean you must withdraw it. Tax treatment varies; consult a qualified professional.
Several asset types do not count on the depletion path. These include 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.
Cryptocurrency, precious metals, collectibles, business accounts beyond your ownership share, and pledged or borrowed funds are not published as eligible on either path. The documented route is to convert them to a seasoned cash balance in a regulated account. The lender then reviews the source.
Two Worked Examples
These are illustrative. The lender’s own calculation governs.
Qualifier example. Say you want an $800,000 loan. You hold $330,000 in brokerage accounts, which count at 100%, or $330,000. You hold $300,000 in a 401(k) and you are under 59½, so it counts at 90%, or $270,000. You hold $200,000 in savings, which counts at 100%, or $200,000. Together that is $800,000 of usable assets. The file may qualify on assets alone, with no income documented.
Depletion example. Say you hold $1,500,000 in securities, which count at 80%, or $1,200,000. You also hold $300,000 in cash, which counts at 100%. Usable assets total $1,500,000. Divide by 60 months and you get $25,000 of monthly qualifying income. That income then has to carry the housing payment and your other debts through the debt-to-income test.
On the depletion path, cash-out proceeds never count as qualifying assets. You cannot borrow against the house and then use that money to qualify for the loan.
The depletion path also has minimum-asset rules. You need qualified assets of at least the lesser of $1,000,000 or 1.25 times the loan balance. If assets are your only income source, you need at least $250,000 in liquid assets regardless. Asset income may instead supplement documented income, up to a 45% debt-to-income ratio. When it supplements, the minimum-assets rule is waived.
Does Ninety Days of Ownership Unlock a Cash-Out?
Sometimes, but ninety days is a market conversation, not a program rule. No regulator sets the ownership wait on these loans. Each lender sets its own, and the answers vary widely across the lenders we see.
Think of it as two clocks that run side by side.
- The ownership clock. This is how long you have held recorded title. It decides whether the lender sizes your loan on appraised value or on what you actually paid.
- The asset clock. This is how long your money has been sitting in your accounts. The qualifier path wants 60 days of seasoning and two months of statements for each qualifying account. The depletion path wants statements at least 120 days old plus the most recent one within 45 days. Funds from the sale of a business, an inheritance, or a legal settlement are excused from that seasoning on the depletion path.
Your ninety days of ownership can clear while your asset clock is still running. The reverse can also happen. Check both.
How Lenders Size an Early Cash-Out
Before the ownership clock clears, many lenders size the loan on the lower of appraised value or your cost basis. Cost basis means the purchase price plus documented improvements. After it clears, appraised value generally governs. That difference decides how much cash you can pull out. A loan sized on cost can leave you with less cash than the appraisal would suggest.
Title matters as well. The clock starts when title is recorded in your name. If you bought on a land contract and the deed stayed with the seller, your ownership clock may not have started.
The Exceptions
Delayed financing waives the wait for documented cash buyers. The loan is still underwritten as a cash-out, and proceeds track what you paid, not what the property appraises for. A hard-money purchase generally breaks the cash-buyer test, because a lien was recorded at purchase. A refinance that only pays off existing debt is usually treated more leniently than one that returns cash.
Fannie Mae’s Selling Guide sets its own cash-out rules and includes a delayed-financing exception for documented cash buyers. Those are agency rules. They do not govern the asset-based program, which is placed through select lenders in Lendmire’s network.
Lenders also grant one-off waivers. Public loan-review filings from one non-agency securitization record title-seasoning waivers for experienced investors with compensating factors. That is useful proof that seasoning is lender policy. It is not a program to plan around.
Wait or Use an Exception?
| Your situation | What the timing looks like | What limits the loan |
|---|---|---|
| Cash purchase, documented | Delayed financing may apply | Cost paid, not new value |
| Financed purchase | Ownership seasoning applies | Lower of value or cost |
| Hard-money payoff only | May be treated as rate-and-term | Cash-out needs seasoning |
| Principal residence or second home | Lender policy varies | 60% on depletion cash-out |
| Investment property | Lender policy varies | 60% on depletion cash-out |
Early cash can cost you in two ways. The loan may be sized on cost instead of value, and pricing on an early cash-out is often a little weaker than after the full wait. Waiting trades time for a larger and cleaner loan. Using an exception trades some of that for speed to your cash. Neither is right for everyone.
Honestly, this one is a toss-up for many borrowers. If you are recycling capital into the next purchase, early access can be worth a smaller loan. If you are just parking the cash, waiting usually wins.
Where the Rule Breaks
Private company stock. Privately held company stock is not an eligible asset on either path. A founder or shareholder has a documented route instead: a sale or buyout converted to a seasoned cash balance. Public securities and retirement accounts count at the shares shown in the tables above.
Recent deposits. Money that just arrived has not seasoned. On the qualifier path, that means 60 days. On the depletion path, sale-of-business, inheritance, and settlement funds are excused.
The purchase money itself. If you spent cash on the property, that cash is no longer in your accounts. Only what remains, documented, can qualify you.
Rent coverage. If the property’s rent can carry the payment, a DSCR route may fit better. DSCR means debt service coverage ratio. That loan is reviewed primarily on property-level rental income covering the payment, subject to lender guidelines. DSCR loans are designed for non-owner-occupied investment properties. Because they are business-purpose investor loans, they are reviewed differently from a standard owner-occupied mortgage.
What to Prepare Before You Ask
Gather these before talking to a broker.
- The settlement statement from your purchase and proof of recorded title.
- Two months of statements for each qualifying account, or statements at least 120 days old plus the latest one, depending on your path.
- A payoff statement for any loan on the property.
- Records for any improvements you want counted in your cost basis.
- Source documents for any large recent deposit.
A common mistake is assuming one lender’s answer applies to all lenders. Another is counting an account that is not eligible. A third is asking for cash-out leverage on a path where it is not published. Every file is underwritten on its own facts.
Where This Applies
The asset-based program is available only where Lendmire’s consumer mortgage lending is licensed: Alabama, California, Colorado, Florida, Georgia, Indiana, Michigan, Montana, New Mexico, North Carolina, Ohio, Pennsylvania, Tennessee, Texas, Virginia, and Washington. Loans on a principal residence or second home are consumer mortgages and carry the standard mortgage disclosures. An investment-property loan on the depletion path is business-purpose.
Frequently Asked Questions
Can I cash out on an asset-based loan ninety days after buying?
Maybe. Ownership seasoning is set by each lender, so ninety days works with some and not with others. Even when the ownership clock clears, your asset seasoning must also clear. Many programs also size an early loan on cost basis instead of appraised value. A broker who shops several wholesale lenders can tell you which fit your timing. Every file is subject to underwriting.
Which path should I use for a cash-out?
The depletion path publishes cash-out leverage of 60% on a principal residence, second home, or investment property. The qualifier path sets cash-out terms by lender, and they are not published. If your assets cover the whole loan, ask the broker whether a qualifier-path lender will take a cash-out on your file. Terms vary by lender guidelines, property type, leverage, credit profile, and full file review.
Does privately held stock count toward qualifying?
No. The route is documented liquid assets: seasoned proceeds from a sale or conversion, cash, public securities, and retirement accounts at the shares shown in the tables.
Do cash-out proceeds count as my qualifying assets?
No. You must qualify on what you already own before the loan.
Is this a loan with no documentation?
No. You skip traditional personal-income documentation, pay stubs, and employment verification. You still document the assets with statements, and the file is fully underwritten. A 600 minimum score applies on the qualifier path, and the depletion path follows the lender’s matrix.
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. Lendmire is a mortgage broker, not a lender, and every program is subject to underwriting and not a commitment to lend. You can reach the team at 828-256-2183 or request a quote through the mortgage quote form.
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 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
1. Fannie Mae Selling Guide, B2-1.3-03, Cash-Out Refinance Transactions
2. SEC ABS-15G exhibit, PRP Depositor 2026-NQM1
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 Before Your ARM Resets
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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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.