The Quick Read: The best program for your situation is the one whose asset path, cash-out leverage, and term all fit your statements, and the 40-year term is the piece confirmed last, not first. Asset-based cash-out leverage is set by the path you qualify on, and a longer note changes the payment, not the loan size.
- Two paths exist: assets cover the whole loan, or assets are divided over 60 months into qualifying income. A borrower is on one path at a time.
- On the asset depletion path, cash-out tops out at 60% loan-to-value on a primary residence, second home, or investment property, subject to underwriting.
- Cash-out proceeds never count as qualifying assets.
- Term length is set by the lender behind each program. It is not a published parameter of the asset-based program, so a 40-year option is confirmed per file.
- Every file is fully underwritten. Assets are documented with statements.
What This Product Is
An asset-based mortgage is reviewed around what you own, not on a paycheck. Tax returns, pay stubs, and employment verification are not part of the file, and you show asset statements instead. The loan is still fully underwritten. Credit, property, title, and appraisal all get reviewed.
This is built for a cash-heavy, income-light borrower. Think of a retiree living on a portfolio, someone who sold a business, an heir, a person who received a settlement, or an early-retired professional. Balances are large. Documented income is small or gone.
A cash-out refinance on this program replaces your current mortgage and returns the difference as cash. That is the same mechanic as any cash-out. What changes is how you qualify for it.
Lendmire is a mortgage broker. It places these files through select lenders in its network. It does not lend, and approval belongs to the lender, subject to underwriting and the lender’s own calculation.
Which Path Fits You?
The first decision is the path. It drives everything after it: leverage, asset credit, and what the lender tests.
- Asset qualifier path: your eligible assets, after the credit percentages, must equal or exceed the entire loan amount. No employment or income is documented.
- Asset depletion path: eligible assets, after haircuts, are divided by 60 months. The result is a monthly qualifying income. It then carries the full housing payment and other debts through the debt-to-income test.
A borrower is qualified on one path at a time. The tables never blend.
| Factor | Qualifier path | Depletion path |
|---|---|---|
| Core test | Assets cover the whole loan | Assets ÷ 60 = income, then DTI |
| Purchase leverage | Up to 80% | Residence/second home 80%; investment 65% |
| Refinance leverage | Up to 75% | Rate-and-term 80% / 65%; cash-out 60% |
| Loan amount | Up to $4,000,000 | $125,000 to $3,500,000 |
| Credit | 600 minimum | Lender’s matrix |
Read the cash-out row with care. On the depletion path, cash-out is 60% on a primary residence or second home, and 60% on an investment property. On the qualifier path, whether cash-out proceeds are allowed, 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 on your file. All figures are ceilings and floors, subject to underwriting, and not offers.
How Underwriting Treats the Assets
Each account type gets a credit percentage. That percentage is the share of the balance that counts. The qualifier path and the depletion path use different tables.
Qualifier path:
- Brokerage accounts, certificates of deposit, money market, and savings count at 100%.
- Retirement accounts (401(k) and IRA) count at 90% if you are under 59½. They count at 100% at 59½ or older.
- Accounts combine.
Depletion path:
- Cash accounts and certificates of deposit count at 100%.
- Securities count at 80%.
- Retirement accounts count at 70% at any age.
- Real-estate equity counts at 60%.
Here is the qualifier math. Say you want an $800,000 loan. You hold $330,000 in brokerage accounts (100% = $330,000), $300,000 in a 401(k) while under 59½ (90% = $270,000), and $200,000 in savings (100% = $200,000). That counts $800,000 of usable assets, which covers the loan on assets alone, subject to underwriting.
Here is the depletion math. You hold $1,500,000 in securities (80% = $1,200,000) and $300,000 in cash (100% = $300,000). That is $1,500,000 usable. Divided by 60 months, it is $25,000 of monthly qualifying income. That income then carries the housing payment and other debts through the debt-to-income test. The lender’s own calculation governs.
Seasoning and 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.
Cash-out files in general run into seasoning questions about the property too. Practice varies by lender. A BiggerPockets seasoning thread shows investors being quoted different waiting periods, from none to several months. That is one reason a broker that sees many lenders matters on a cash-out file.
Minimums on the depletion path
Qualified assets must be at least the lesser of $1,000,000 or 1.25 times the loan balance. If asset depletion is your only income source, you also need at least $250,000 in liquid assets. Asset-derived income can supplement documented income up to a 45% debt-to-income ratio. When it supplements, the minimum-assets rule is waived.
Credit
The qualifier path has a 600 minimum score. The depletion path follows the lender’s score and loan-amount matrix. A first-time investor on the depletion path needs a 700. 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. None of this is a promise of approval.
What a 40-Year Term Does and Does Not Change
A 40-year term describes the length of the note. It does not promise 40 years of principal paydown. Some long-term structures include an interest-only window first, then amortize over the remaining months. Others amortize across the full length. You have to read the note to know which one you have.
Here is what a longer term does:
- It lowers the monthly payment compared with a shorter term on the same balance.
- On the depletion path, a lower payment helps the debt-to-income test, since derived income must carry that payment.
- On the qualifier path, no income is documented, so the payment matters less to qualifying. The lender’s ability-to-repay review rests on the assets.
Here is what a longer term does not do:
- It does not raise leverage. Depletion-path cash-out stays at 60%.
- It does not make cash-out proceeds count as assets. They never do.
- It does not change which assets are eligible or how they are haircut.
- It does not build equity faster. A longer amortization pays down principal more slowly, and an interest-only window pays none. Equity grows from appreciation in that stretch.
Term length is set by the lender behind each program. It is not a published parameter of the asset-based program. Whether a 40-year option fits an asset-based cash-out file is confirmed per scenario, through select programs, subject to underwriting. Do not assume it. Ask for it by name when the file goes to a broker, and ask what it does to the tested payment.
Fit is better for a long hold where you want the lowest carrying cost. Fit is weaker if your exit depends on refinancing again, since the balance will be higher later.
How Cash-Out Works on This Program
Treat cash-out as its own classification. If any cash comes back to you, it is a cash-out. If the loan only pays off the old mortgage and costs, it is a rate-and-term refinance. A file that looks like a clean payoff can tip into cash-out once extra items land in the settlement.
That classification matters because the leverage drops. On the depletion path, rate-and-term runs up to 80% on a residence or second home and 65% on an investment property. Cash-out is 60% on both.
Two practical points follow:
1. Run the loan amount you need against the cash-out leverage first. If equity does not support it, the asset story does not matter.
2. Do not count the cash you plan to pull out as part of your qualifying assets. It is excluded on both paths.
Reserves are simple on the qualifier path. None are required at or below 75% loan-to-value. Above that, the lender sets them. The depletion path has no published reserve months.
Where the Rules Break: Edge Cases
Privately held stock. Privately held company stock is not an eligible asset on either path. A founder’s or shareholder’s route is documented liquid assets: seasoned proceeds from a sale or buyout converted to cash, plus public securities and retirement accounts at their credit percentages.
Crypto, metals, and collectibles. These 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.
Other excluded assets on the depletion path. 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 are not eligible. Pledged or borrowed funds are not published as eligible on either path.
Business accounts. Only your ownership share of a business account is considered, and the lender reviews the source.
Investment property. The depletion path is the only path that serves an investment property. That loan is business-purpose, so it is reviewed differently from a standard owner-occupied mortgage.
Owner-occupied properties. A principal residence or second home is a consumer mortgage, and TRID disclosures apply.
First-time investors. A 700 score is required on the depletion path.
The Business-Purpose Line
Whether a loan is business-purpose or consumer-purpose changes how it is reviewed. Under Regulation Z, credit to acquire, improve, or maintain non-owner-occupied rental property is deemed business purpose, regardless of unit count. Owner-occupied rentals follow different thresholds. The ability-to-repay final rule treats investment-purpose loans as business-purpose loans and applies only to consumer-purpose credit.
For the borrower, the takeaway is simple. Your property and occupancy decide which path and which leverage table apply.
What “Best” Means Here
The best program for your situation depends on your property type, credit profile, leverage need, and how your assets are held. No single lender is best for every file, and Lendmire does not rank or name lenders. It works as a broker, shopping multiple wholesale lenders and matching the scenario to the program.
Use these criteria to judge any program:
| Criterion | What to check |
|---|---|
| Path | Qualifier or depletion |
| Cash-out leverage | Depletion path 60%; qualifier path set by lender |
| Asset credit | Percentage per account type |
| Seasoning | Statement age and account history |
| Term options | Confirmed per scenario, not published |
| Property type | Residence, second home, investment |
The lenders that write this depend on the path, the property, and your credit. Expect a program to be strong on one criterion and thin on another. A program with generous asset credit may cap leverage. One with a longer term may carry a higher credit bar. That is why the comparison is per file.
Who Should Skip It
Skip this path if most of your wealth is in an account type with a lower credit percentage, such as retirement balances on the depletion path at 70%, and the loan you need is large. The math may not clear.
Skip it if your wealth sits in privately held stock and has not been converted to cash. That stock is not an eligible asset, so there is nothing to count.
Skip the longer term if you plan to refinance soon and need equity to build. A slower paydown works against you.
Consider other routes if your income is documented through bank deposits. A bank statement program is built for that borrower. Rental financing for a business-purpose rental runs on a different program. Agency, FHA, VA, conventional, and full-doc jumbo loans each follow their own rules, not this program’s.
Documents to Gather
1. Statements for every account you want counted. Two months each on the qualifier path.
2. On the depletion path, one statement at least 120 days old and the most recent statement within 45 days.
3. Proof of the source for any large recent deposit, such as a business sale, inheritance, or settlement.
4. Retirement account statements, with your age on the file.
5. Credit information, including housing history for the last twelve months.
6. Property documents for the subject property, plus title and appraisal when ordered.
Assets are documented on both paths. On an asset-based file, the loan is qualified on verified assets, either covering the loan or converted to income, subject to lender guidelines.
Key Terms Defined
Asset qualifier path: The path where eligible assets, after credit percentages, must cover the entire loan.
Asset depletion path: The path where usable assets divided by 60 months become monthly qualifying income.
Credit percentage: The share of an account balance that counts toward qualifying. The part that does not count is the haircut.
Cash-out refinance: A new loan that pays off the old one and returns the difference to you as cash.
Seasoning: How long funds have been in an account, shown through statements.
Debt-to-income (DTI): Your monthly debts divided by your qualifying income.
Interest-only window: A period when the payment covers interest only, with no principal paydown.
Frequently Asked Questions
Can I get a 40-year term on an asset-based cash-out refinance?
Possibly. Term length is set by the lender behind each program and is not a published parameter of the asset-based program. A broker can ask for a longer note on your file, but it is confirmed per scenario and subject to underwriting. A longer term does not raise leverage.
Do cash-out proceeds count as qualifying assets?
No. Cash-out proceeds never count as qualifying assets on either path. Only your seasoned, documented balances count, at their credit percentages.
Do I need to document income?
On the qualifier path, no employment or income is documented, and the lender’s review rests on the assets. On the depletion path, your assets are converted into qualifying income that runs through the debt-to-income test. Assets are documented with statements on both paths, and every file is fully underwritten.
Can I use stock I own in my own company?
The route is a sale or buyout converted into a seasoned cash balance, with the source of funds reviewed by the lender. Public securities and retirement accounts count at their credit percentages.
Where is the program available?
Lendmire’s asset-based program is available in 16 states: Alabama, California, Colorado, Florida, Georgia, Indiana, Michigan, Montana, New Mexico, North Carolina, Ohio, Pennsylvania, Tennessee, Texas, Virginia, and Washington. Details can change, and each file is underwritten individually.
Next Step
If you are qualifying on assets rather than income and want to see how the numbers work, Lendmire can help you compare options under its asset-based mortgage programs. That comparison is based on your statements, the property, credit profile, leverage, and your goals. Program details change and nothing here is a commitment to lend.
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.
For the mechanics of pulling equity out of a rental 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. BiggerPockets: Seasoning periods for cash-out refis
3. Federal Register: Ability-to-Repay and Qualified Mortgage Standards
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 on an Inherited Property · Best Asset-Based Cash-Out Refinance Program to Cover a Medical Bill
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.