The Quick Read: The best program for your situation depends on one choice: whether your eligible assets can cover the entire loan outright, or whether they must be converted into monthly qualifying income that carries the payment. Each path has its own leverage, asset credit, and seasoning rules, all subject to underwriting. Lendmire is a mortgage broker that matches the scenario to a program through select lenders in its wholesale network.
- Asset qualifier path: eligible assets, after credit percentages, must equal or exceed the whole loan. No employment or income is documented.
- Asset depletion path: usable assets divided by 60 months become qualifying income, which runs through the debt-to-income test.
- Cash-out leverage on the depletion path: up to 60% on a principal residence, second home, or investment property, through select programs.
- Cash-out proceeds never count as qualifying assets. The borrower is reviewed on assets already held.
- Borrowers use one path at a time. The two tables never blend.
What Does an Asset-Based Cash-Out Refinance Do?
It replaces your current mortgage with a larger one and returns the difference as cash, while you keep the property. The difference from a standard cash-out is how the file qualifies. Instead of tax returns and pay stubs, the lender reviews your statements.
The loans suit households with large balances and thin documented income. That includes retirees, people who sold a business, recipients of an inheritance or settlement, early-retired professionals, and families living off a portfolio.
Be clear on one point. These files are fully underwritten, and the assets are documented with statements. The program involves no traditional personal-income documentation, pay stubs, or employment verification. It does not skip documentation.
Why Refinance Instead of Selling?
Selling ends ownership. It also forces you to find new housing or reinvest the proceeds, and you may not want to do either. A cash-out refinance lets you take cash from the equity and stay in place, or keep the rental you already hold.
Some borrowers also prefer not to liquidate investments to raise cash. 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.
The Two Paths, Side by Side
Lendmire arranges these loans through the asset-based mortgage program, placed with select lenders in its wholesale network. Every figure below is a ceiling or floor, subject to underwriting. None of them is an offer.
| Factor | Asset qualifier | Asset depletion |
|---|---|---|
| How assets are used | Must cover the whole loan | Converted to monthly income |
| Income documented | None | Derived income, run through DTI |
| Refinance leverage | Up to 75% | 80% rate-and-term, 60% cash-out |
| Loan amounts | Up to $4,000,000 | $125,000 to $3,500,000 |
| Occupancy | Principal residence, second home | Also investment property |
| Credit | 600 minimum | Lender’s matrix |
The qualifier path allows up to 80% on a purchase and 75% on a refinance. Whether it allows cash-out proceeds, and at what leverage, is set by the lender and is not published. Confirm that with the lender before you build a plan around it.
On the depletion path, a principal residence or second home goes up to 80% on a purchase or rate-and-term refinance and 60% on a cash-out.
Which Assets Count on Each Path?
Eligible assets count at a percentage of their balance, and the percentages differ by path. This is where files often go wrong, because borrowers apply one table to the other path.
Asset qualifier path:
| Asset | Share that counts |
|---|---|
| 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% |
Asset depletion path:
| Asset | Share that counts |
|---|---|
| Cash accounts | 100% |
| Certificates of deposit | 100% |
| Securities | 80% |
| Retirement accounts, any age | 70% |
| Real-estate equity | 60% |
Several asset types are not eligible 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.
Privately held company stock is not an eligible asset on either path. A founder or shareholder qualifies through documented liquid assets instead. Those can be seasoned proceeds from a sale or buyout, cash, public securities, and retirement accounts at the shares that count.
Cryptocurrency, precious metals, collectibles, and pledged or borrowed funds are not published as eligible on either path. The documented route is converting them to a seasoned cash balance in a regulated account, with the source reviewed by the lender.
How Underwriting Treats the File, Step by Step
1. Pick the path. Add up what counts at the qualifier percentages and compare it with the full loan amount. If it covers the loan, the qualifier path works. If it falls short, test the depletion path.
2. Run the qualifier math. Take an $800,000 loan. Say the borrower has $330,000 in brokerage accounts (100% counts, so $330,000), $300,000 in a 401(k) under 59½ (90% counts, so $270,000), and $200,000 in savings (100% counts, so $200,000). That is $800,000 of usable assets, and the file is reviewed on assets alone, subject to underwriting.
3. Run the depletion math. Say a borrower holds $1,500,000 in securities (80% counts, so $1,200,000) and $300,000 in cash (100% counts, so $300,000). Usable assets are $1,500,000. Divided by 60 months, that is $25,000 of monthly qualifying income. That income must carry the housing payment and all other debts through the debt-to-income test.
4. Check the minimums. The depletion path requires qualified assets of at least the lesser of $1,000,000 or 1.25 times the loan balance. When asset depletion is the only income source, at least $250,000 must also be liquid. Asset-derived income can also supplement documented income, up to a 45% debt-to-income ratio, and then the minimum-assets rule is waived.
5. Season the statements. 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 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 on the depletion path.
6. Review credit and housing history. The qualifier path has a 600 minimum score. The depletion path follows the lender’s matrix, and a first-time investor on that path needs 700. Housing history is 0x30x12, and one 30-day late in the last twelve months is considered case by case. Multiple bankruptcies are not eligible, and a housing event needs four years of seasoning on the depletion path.
7. Check reserves. The qualifier path requires none at or below 75% loan-to-value, and above that the lender sets them. The depletion path has no published reserve months.
The lender’s own calculation governs every number above. Treat these examples as illustrations.
The Circularity Trap
Cash-out proceeds never count as qualifying assets. A borrower cannot refinance, pull cash, and then count that cash to qualify for the loan that produced it.
This catches people who plan to keep the cash in a savings account and cite it as assets. The assets must exist and season before the application. Anything the new loan creates does not help the file.
Which Program Fits Which Borrower?
The best fit depends on where the wealth sits. Lendmire’s wholesale network includes lenders with different overlays on these loans, which is why a broker comparison matters more than any single lender’s page.
| Borrower profile | Likely fit |
|---|---|
| Retiree with large brokerage and savings | Qualifier path, if assets cover the loan |
| Business seller with a seasoned cash balance | Either path, based on loan size |
| Portfolio household wanting a large loan | Depletion path |
| Salaried, with a large portfolio | Depletion path as a supplement to income |
| Rental owner with strong lease income | A rental-income loan may fit better |
| Wealth held only in private company stock | Neither path, until converted to seasoned liquid assets |
Rental owners deserve a closer look at the fifth row. Business-purpose rental financing runs on the property’s rent, not on the borrower’s assets. The depletion path does allow an investment property, but if the rent covers the payment, a rental-income loan can be the cleaner route. Select lenders in the network will review rental-income files below a 1.00 coverage ratio, though leverage and terms adjust.
The depletion path on an investment property is a business-purpose loan. The CFPB’s Regulation Z exemption for business-purpose credit is the rule behind that treatment. The ability-to-repay rule, covered in the Federal Register’s final rule text, applies to consumer-purpose loans. On a principal residence or second home, the loan is a consumer mortgage and consumer rules apply.
When a Different Product Fits Better
| Option | Fits when | Watch for |
|---|---|---|
| Asset-based cash-out | Large balances, thin income | Seasoning and the share that does not count |
| HELOC | Keeping the first mortgage intact | A second lien and its own limits |
| Rental-income cash-out | Rent covers the payment | Applies to rentals only |
| Securities-backed line | Public securities, short-term need | Margin calls if values fall |
| Selling | The property no longer fits | Ownership ends |
Each of these programs has its own rules. None of them follows the asset-based tables above.
Risks and Trade-Offs
Leverage works against you if values drop. The assets that qualified you can fall in value while the mortgage balance stays fixed. A depletion-path file assumes you will draw down those assets over time, so a downturn can strain the plan.
Use of proceeds matters. Cash spent on repairs or debt payoff carries a different risk from cash put into more investments. Plan for the payment to be covered even if the portfolio falls, without needing to sell.
Cash-out is also treated more tightly than a purchase or rate-and-term loan. The depletion path drops from 80% to 60% on a residence for that reason. Borrowers who budget for the higher number are the ones whose files fall short.
What You Will Need to Provide
- Statements for each qualifying account, with the seasoning on the path you choose.
- Your current mortgage statement and homeowners insurance.
- Government ID and a credit authorization.
- Documentation of the source for any large recent deposit, such as a business sale, inheritance, or settlement.
- A signed purchase and sale record, if the proceeds come from a seasoned sale of a business.
Key Terms Defined
Asset qualifier: the path where eligible assets, after credit percentages, cover the entire loan with no income documented.
Asset depletion: the path that divides usable assets by 60 months to produce qualifying income.
Haircut: the part of an account’s balance that does not count toward qualifying.
Seasoning: the time funds must sit in an account before they can be used.
Cash-out refinance: a new, larger loan that pays off the old one and returns the difference as cash.
Debt-to-income (DTI): monthly debts divided by monthly income, used on the depletion path.
Frequently Asked Questions
Can I take cash out of my home without selling it?
Yes, through a cash-out refinance on the asset depletion path, up to 60% on a principal residence, second home, or investment property, subject to underwriting. Whether the qualifier path allows cash-out, and at what leverage, is set by the lender and is not published.
Does the program need employment or income documentation?
On the qualifier path, no employment or income is documented, and the file rests on assets. On the depletion path, assets are converted into income and run through the debt-to-income test. Both paths are fully underwritten, with statements for the assets.
Can retirement accounts count?
Yes. On the qualifier path, a 401(k) or IRA counts at 90% under age 59½ and 100% at 59½ or older. On the depletion path, retirement accounts count at 70% at any age.
Does a business owner’s stock in their own company count?
No. The route is documented liquid assets, such as seasoned proceeds from a sale or buyout converted to cash, public securities, and retirement accounts at the shares that count.
Is the program available in every state?
No. 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 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. Reach the team at 828-256-2183. Everything here is subject to lender guidelines and is not a commitment to lend.
Borrowers whose income is documented in the usual way can compare options in Lendmire’s piece on the best cash-out refinance program without selling the house.
About Lendmire
Lendmire, NMLS# 2371349, is a mortgage brokerage with consumer lending licenses in 16 states. Bank statement, P&L-only, 1099-only and asset-based mortgages are arranged through wholesale lending partners for borrowers whose tax returns understate their income, and every file is underwritten individually. Scotsman Guide named Lendmire a Top Mortgage Workplace in both 2025 and 2026.
For how equity extraction works on an investment 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. Federal Register, Ability-to-Repay and Qualified Mortgage Standards Under the Truth in Lending Act
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 to Buy Out a Co-Owner · Best Asset-Based Cash-Out Refinance Program to Cover a Medical Bill
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
- Mortgage Loan Originator · NMLS# 1129696 · Verify on NMLS Consumer Access
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- Lendmire LLC · Firm NMLS# 2371349 · Verify firm licensure
Disclosures. The information presented in this article is general market commentary, not financial, legal, or tax advice. Lendmire is a mortgage brokerage (NMLS# 2371349) — not a direct lender or depository institution — and loan placement is subject to lender underwriting. Nothing in this content represents a commitment to lend. Loan terms, pricing, and program availability vary based on borrower qualifications, property characteristics, and state of subject property, and are subject to change at any time. Lendmire complies with Equal Housing Opportunity requirements. Consumer access: nmlsconsumeraccess.org.