The Quick Read: The right program depends on whether your assets can cover the whole loan or need to be turned into monthly qualifying income. A higher home value raises how much equity a lender can look at, but your assets, not the appreciation, decide whether you qualify.
- The asset qualifier path covers the entire loan with eligible assets and documents no employment or income, subject to underwriting.
- The asset depletion path divides usable assets by 60 months to create qualifying income that runs through a debt-to-income test.
- Leverage differs sharply by path: 75% on a refinance on the qualifier path, and 60% on a cash-out on the depletion path.
- Cash-out proceeds from the new loan never count as qualifying assets.
- Every file is fully underwritten. The assets are documented with statements, and the program asks for no traditional personal-income documentation, pay stubs or employment verification on the qualifier path.
Lendmire is a mortgage broker. It arranges these loans through select lenders in its wholesale network and does not lend or approve them itself. The sections below show how those lenders treat the file, step by step.
Key Terms Defined
Asset qualifier path: The route where eligible assets, after credit percentages, equal or exceed the entire loan amount.
Asset depletion path: The route where eligible assets, after haircuts, are divided by 60 months to produce monthly qualifying income.
Haircut: The share of an asset’s balance that a lender will not count, such as the 20% cut on securities on the depletion path.
Seasoning: The time funds must sit in an account, shown through statements, before the lender counts them.
Loan-to-value (LTV): The new loan divided by the appraised value of the home.
Cash-out refinance: A new mortgage larger than the payoff, with the difference paid to you.
What Does a Value Jump Actually Change?
A value jump changes the number the leverage cap applies to. It does not change how you qualify. The new appraisal sets the value, and the lender’s leverage limit for your path and occupancy sets the ceiling on the new loan.
Appreciation is paper equity until a lender will lend against it. Two lenders can see the same home and the same equity and still offer different cash. The difference comes from the program path and the limit that path allows on a cash-out.
Here is the part borrowers get wrong. Higher value does not make your assets bigger. A retiree with a large portfolio and a home that gained value still is reviewed on the portfolio. A borrower with a big gain and thin liquid assets will not qualify on the home value alone.
Home equity also has a limit as a qualifying asset. On the depletion path, equity in real estate counts at 60%, subject to underwriting. Cash-out proceeds from this refinance never count toward qualifying on either path.
How Do You Qualify on Assets Instead of Income?
You pick one of two paths, and the file runs on that path alone. Lendmire’s network does not blend them. The table below shows what each path credits.
| Asset | Qualifier path | Depletion path |
|---|---|---|
| Brokerage accounts | 100% | Securities at 80% |
| Certificates of deposit | 100% | 100% |
| Money market and savings | 100% | Cash accounts at 100% |
| Retirement accounts | 90% under 59½, 100% at 59½ or older | 70% at any age |
| Real-estate equity | Not listed | 60% |
The qualifier path, in plain terms
Eligible assets after the credit percentages must equal or exceed the entire loan amount. Accounts combine. No employment or income is documented, and the lender’s review rests on the assets.
Run the numbers on an $800,000 loan. Say the borrower holds $330,000 in brokerage accounts, which count at 100%, or $330,000. A 401(k) of $300,000 under age 59½ counts at 90%, or $270,000. Savings of $200,000 count at 100%, or $200,000. Together that is $800,000 of usable assets, so the file is reviewed on assets alone. This is an illustration, and the lender’s own calculation governs.
Loans run up to $4,000,000 on this path. The minimum credit score is 600. Statements need 60 days of seasoning, with two months of statements for each qualifying account. Reserves are not required at or below 75% loan-to-value. Above that, the lender sets them.
The depletion path, in plain terms
The lender counts your usable assets, divides by 60 months, and treats the result as monthly income. That income must carry the housing payment and your other debts through the debt-to-income test.
Take $1,500,000 in securities, which count at 80%, or $1,200,000. Add $300,000 in cash at 100%. That is $1,500,000 of usable assets. Divided by 60 months, it produces $25,000 of monthly qualifying income. That figure then has to carry the housing payment and other debts. Again, this is illustrative.
Loans run from $125,000 to $3,500,000 on this path. Credit follows the lender’s matrix. Statements must be at least 120 days old at application, plus one statement within 45 days. Funds from the sale of a business, an inheritance or a legal settlement are excused from that seasoning.
Depletion also carries minimums. Qualified assets must be at least the lesser of $1,000,000 or 1.25 times the loan balance. They can never fall below $250,000 liquid when asset depletion is the only income source. Asset-derived income may also supplement documented income up to a 45% debt-to-income ratio. When it supplements, the minimum-assets rule is waived.
Which Path Fits Which Borrower?
The best asset-based program for your situation starts with this question: do your assets cover the loan, or do they need to become income? The table below sorts common profiles. These are patterns, not approvals.
| Borrower profile | Likely fit | Why |
|---|---|---|
| Retiree with large savings and brokerage accounts | Qualifier path | Assets can cover the loan outright |
| Seller of a business holding a seasoned cash balance | Either path | Sale funds are excused from depletion seasoning |
| Early-retired professional living on a portfolio | Depletion path | Portfolio converts to qualifying income |
| Household with a loan larger than its liquid assets | Depletion path | Income test, not full coverage |
| Mix of documented income and a large portfolio | Depletion as a supplement | Asset income can add to documented income up to 45% debt-to-income |
Across Lendmire’s wholesale network, the qualifier path suits borrowers with liquid balances that match the loan. The depletion path suits borrowers whose assets are large but whose loan is larger than their liquid total.
How Much Cash Can You Realistically Take?
The cash you can take is set by the leverage cap on your path, the appraised value, and what you owe now. On the depletion path the cash-out caps are published. On the qualifier path they are not.
On the depletion path, a principal residence or second home can reach 60% loan-to-value on a cash-out refinance. An investment property is also limited to 60% on a cash-out. For a rate-and-term refinance, a principal residence or second home reaches 80%. An investment property reaches 65%.
On the qualifier path, the published ceiling is 75% on a refinance of a principal residence or second home. Whether cash-out proceeds are allowed there, and at what leverage, is set by the lender and is not published. Do not plan around a qualifier-path cash-out figure until a lender confirms it for your file.
Two limits catch borrowers. First, the new loan must still be covered by your assets on the qualifier path, so a bigger cash-out means a bigger loan to cover. Second, the new appraisal can come in below your expectation. If it does, the cap applies to a smaller value and the check shrinks. An appraisal reconsideration request, backed by recent nearby sales, is a routine step when the value looks light.
Ownership time before a cash-out is a lender rule. It is not published for this program, so confirm it for your scenario at the start.
Where the General Rule Breaks
The general rule is that assets count at the percentages above. These cases fall outside it.
Privately held company stock. It is not an eligible asset on either path. A founder or shareholder qualifies through documented liquid assets instead. These are seasoned proceeds from a sale or buyout, cash, public securities and retirement accounts at their credit percentages.
Crypto, precious metals, collectibles and similar assets. They 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 reviews the source of the funds.
Pledged or borrowed funds. These are not published as eligible either. Funds borrowed against another asset do not count as your own.
Assets that are ineligible 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.
Retirement balances under 59½. On the qualifier path they count at 90%, not 100%. On the depletion path they count at 70% at any age. Borrowers often over-count these balances.
Investment property. Asset-based mortgages on investment property run only on the depletion path. A first-time investor there needs a 700 credit score. The loan is business-purpose, so the consumer rules differ. Under CFPB’s Regulation Z, section 1026.3, credit to buy, improve or maintain a non-owner-occupied rental is generally treated as business purpose regardless of the number of units. Borrowers should still expect the lender to document the purpose of the loan.
Credit events. Housing history of 0x30x12 is the standard. 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.
Appraisals on small income properties follow standard forms. Fannie Mae’s appraiser learning center names the rent schedule and small income property forms. That is a reference for form names only. This program is not an agency product.
What Do You Still Have to Document?
You skip the income paperwork. You do not skip the file. Every asset-based file is fully underwritten, and the assets are documented with statements.
Expect to supply:
- Statements for every account you count, covering the seasoning period for your path.
- A source for any large deposit that landed recently.
- Identification, the current mortgage statement and proof of homeowners insurance.
- Evidence of the home’s value through the appraisal the lender orders.
- A sale or buyout agreement and the matching deposit record, if you are converting private stock to cash.
A common reason these files stall is account detail. Statements get uploaded with missing pages, or a large transfer sits between two accounts with no paper trail. Clean statements and a short written note on any large movement give the lender fewer gaps to review.
Because this is a consumer mortgage on a principal residence or second home, the lender’s standard consumer disclosures apply. The depletion path on an investment property is business-purpose, so those disclosures are handled differently.
Asset-Based vs. Conventional vs. HELOC vs. Selling Assets
The best choice depends on your income, your current first mortgage and your portfolio. The table describes each option under its own rules.
| Option | How it qualifies | Fit |
|---|---|---|
| Asset-based cash-out | Assets cover the loan or become income | Large balances, low documented income |
| Conventional cash-out | Documented income and debt-to-income | Borrowers with steady W-2 or tax-return income |
| HELOC | Second lien on top of the current first | Borrowers who want to keep their current first mortgage |
| Selling assets | No new loan | Borrowers willing to realize gains |
A conventional cash-out refinance is usually simpler if your income is documented and strong. A HELOC leaves your first mortgage in place, which matters if you hold a favorable one. Selling assets avoids new debt, but it can trigger a taxable gain.
Tax treatment varies; consult a qualified professional.
If you document income through deposits rather than assets, a different program fits.
Who This Does Not Fit
Skip this route in these cases:
- Your documented income is strong and your debt-to-income ratio is clean. A conventional refinance is usually simpler.
- Your usable assets fall short of the loan on the qualifier path and short of the depletion minimums.
- Your wealth sits in private company stock, crypto or other ineligible assets that you cannot convert to seasoned cash.
- You are counting on the cash-out proceeds themselves to qualify. They do not count.
- You want a purely income-based test. Asset-based loans measure assets.
What to Do After Your Value Jumps
1. Get an honest value range. Use recent nearby sales to estimate where an appraisal could land before you apply.
2. List your payoff and any other liens. The cash you receive is the new loan minus these payoffs and costs.
3. Inventory your assets. Sort them by type, and mark which are ineligible, such as private stock or crypto.
4. Pick a path. If usable assets cover the full loan, the qualifier path applies. If not, test the depletion math with the 60-month divisor.
5. Pull statements. Gather the seasoning window your path needs, and write a short note on any large transfers.
6. Ask for a cash-out answer early. On the qualifier path, cash-out terms are lender-set, so confirm them before you plan around a number.
7. Compare through a broker. A broker that shops several wholesale lenders can match your assets, property and cash goal to the program that fits.
Frequently Asked Questions
Does privately held company stock count as an asset?
A founder or shareholder qualifies through documented liquid assets. These are seasoned proceeds from a sale or buyout, cash, public securities, and retirement accounts at their credit percentages.
Can I use the cash I take out to qualify?
No. Cash-out proceeds never count as qualifying assets on either path. Your existing assets must carry the file, so plan your statements around what you hold before the loan.
Is this a no-documentation loan?
No. Every file is fully underwritten and the borrower’s assets are documented with statements. That is different from a no-documentation loan.
What if my home appraises below what I expected?
The leverage cap applies to the appraised value, so a lower value shrinks the loan and the cash. A reconsideration request supported by recent nearby sales is a routine next step. It does not always change the number.
Does a retirement account count the same as a brokerage account?
No. On the qualifier path, a retirement account counts at 90% under age 59½ and 100% at 59½ or older. On the depletion path it counts at 70% at any age. A brokerage account counts at 100% on the qualifier path and securities at 80% on the depletion path.
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 programs based on your statements, the property, credit profile, leverage, and your goals. Consumer mortgage lending is available through select programs in Alabama, California, Colorado, Florida, Georgia, Indiana, Michigan, Montana, New Mexico, North Carolina, Ohio, Pennsylvania, Tennessee, Texas, Virginia and Washington. Figures here are ceilings and floors for illustration, not offers. Qualification is subject to underwriting. This is not a commitment to lend. Lendmire is a broker and places these loans through select lenders in its network.
A deeper walk-through of investment-property equity extraction lives in Lendmire’s guide to cash-out refinance on an investment property.
About Lendmire
As a mortgage broker (NMLS# 2371349), Lendmire helps self-employed and high-net-worth borrowers in 16 states qualify on bank statements, a profit-and-loss statement, 1099s or liquid assets instead of tax returns, through wholesale lenders. Lendmire is never the lender; program terms are set by the lender and its guidelines. 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 section 1026.3
2. Fannie Mae Learning Center, Appraisers and Property Underwriting
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.