The Quick Read: An asset-based cash-out refinance lets a homeowner who is between jobs qualify on documented savings and investments instead of a paycheck, and the best program for your situation depends on whether your assets can cover the entire new loan or must be converted into monthly income through a debt-to-income test. Your balances are documented with statements, and the loan is fully underwritten. You provide no traditional personal-income documentation, pay stubs or employment verification. Everything below is subject to underwriting and the lender’s own calculation.
- Two paths exist, and you are qualified on one at a time. The asset qualifier path asks whether eligible assets equal or exceed the whole loan. The asset depletion path turns assets into income.
- Cash-out proceeds never count as qualifying assets on the depletion path, so the money you pull out cannot help you qualify.
- Cash-out leverage on the depletion path is 60% on a principal residence, a second home or an investment property, through select programs.
- Privately held company stock is not an eligible asset on either path. Seasoned cash from a sale is the documented route.
- Job status is not the test. Asset type, seasoning, credit and leverage are.
What Is an Asset-Based Cash-Out Refinance?
It is a refinance that replaces your current mortgage with a larger one and pays you the difference, with approval resting on your documented assets rather than your employment. A homeowner with a large portfolio and no payroll fits here. So does a business seller, an early retiree, an heir or a settlement recipient.
Lendmire is a mortgage broker, not a lender. It places these files through select wholesale lenders in its network. Programs change, and each file is underwritten individually. The asset-based mortgage program page lays out the product family in more detail.
The words “best program” deserve a caution. No single program is best for every borrower. The right fit depends on how liquid your assets are, how much leverage you need, what the property is and what your credit looks like. A broker that works with several wholesale lenders can match those facts to a program. That is the real advantage of shopping through one.
How Does Underwriting Treat You When You Are Between Jobs?
Underwriting treats a gap in employment as irrelevant on the qualifier path and as a math problem on the depletion path. Here is how a file moves, step by step.
1. Path selection. The loan officer compares your usable assets with the new loan amount. If the assets cover the whole loan, the qualifier path fits. If they do not, depletion may fit.
2. Asset documentation. You provide statements for each qualifying account. Retirement and brokerage balances are counted at the percentages shown later here.
3. Seasoning review. The lender checks how long the money has sat in the account. Recent transfers draw questions about where they came from.
4. Credit review. Credit is pulled and measured against the program’s floor or matrix. Housing history matters as well.
5. Leverage check. An appraisal sets the value. The program’s loan-to-value cap then sets the maximum loan.
6. Final underwriting. The lender confirms that assets, credit, property and leverage fit program guidelines. Consumer loans on a principal residence or second home carry standard mortgage disclosures under TRID.
On the qualifier path, no employment or income is documented. On the depletion path, income comes from the assets themselves and then runs through the debt-to-income test.
Two Paths, Side by Side
The paths are different tools. Mixing their numbers is a common mistake borrowers make when comparing programs.
| Factor | Asset qualifier | Asset depletion |
|---|---|---|
| How assets are used | Must cover the entire loan | Divided by 60 months into income |
| Income documented | None | Derived income, DTI test |
| Loan amounts | Up to $4,000,000 | $125,000 to $3,500,000 |
| Credit | 600 minimum score | Lender’s matrix |
| Seasoning | 60 days, two monthly statements | Statements 120 days old plus one within 45 days |
| Reserves | None at or below 75% LTV | No published months |
Both tables describe select programs and are subject to underwriting.
Which Assets Count, and at What Value?
Liquid, regulated, documented balances count. Illiquid, private or borrowed wealth does not. The percentages differ by path, so the table keeps them separate.
| Asset | Qualifier path | Depletion path |
|---|---|---|
| Brokerage accounts | 100% | Securities at 80% |
| Cash, savings, money market | 100% | Cash at 100% |
| Certificates of deposit | 100% | 100% |
| 401(k) and IRA | 90% under 59½, 100% at 59½+ | 70% at any age |
| Real-estate equity | Not listed | 60% |
The depletion path also excludes 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, borrowed or pledged funds and business accounts beyond your ownership share are not published as eligible on either path. If those holdings are your wealth, the documented route is to convert them into a cash balance in a regulated account. The lender then reviews the source of that cash.
Two Worked Examples
These examples are illustrative, and the lender’s own calculation governs.
Qualifier path. Say the new loan is $800,000. The borrower holds $330,000 in brokerage accounts (100% counts, so $330,000), $300,000 in a 401(k) while under 59½ (90% counts, so $270,000) and $200,000 in savings (100% counts, so $200,000). Usable assets total $800,000. That equals the loan, so the file is reviewed on assets alone, subject to credit, property and underwriting.
Depletion path. Say the 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 then carry the new housing payment and other debts through the debt-to-income test.
Notice what changes between the two. The qualifier path asks whether the total pile covers the loan. The depletion path asks whether the monthly slice of that pile carries the payments.
How Cash-Out Changes the Picture
Cash-out is a separate decision from a purchase or a plain refinance, because the new loan is bigger and the cap is lower. Leverage figures by path:
- Asset qualifier path: up to 75% loan-to-value on a refinance of a principal residence or second home. Whether cash-out proceeds are allowed on this path, and at what leverage, is set by the lender and is not published. Ask for that answer before you build a plan around it.
- Asset depletion path, principal residence or second home: up to 80% on a purchase or rate-and-term refinance, and 60% on a cash-out refinance.
- Asset depletion path, investment property: up to 65% on a purchase or rate-and-term refinance, and 60% on a cash-out.
On the qualifier path, assets must cover the entire new loan, not just the cash you take out. A bigger loan therefore needs bigger usable balances. On the depletion path, cash-out proceeds never count as qualifying assets. Money you pull out cannot be recycled to meet the asset test or to fund your cushion.
Reserves vary by path. 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, though underwriting may still look at what you keep after the loan funds.
What Does Best Mean for Someone Between Jobs?
The best program for your situation is the one whose asset rules, leverage cap and document burden match your balances. A few criteria sharpen the comparison:
- Asset treatment. Does the program count your account types at high percentages? A retiree with mostly retirement balances may come out better on the qualifier path after 59½, where those balances count at 100%.
- Cash-out allowance. Some programs allow cash-out and some do not. Lenders that write this loan differ on leverage and on whether proceeds are permitted.
- Documentation burden. Statement seasoning and source review vary by path.
- Property type. Principal residences and second homes work on both paths. Investment property works only on the depletion path.
- Your credit. The qualifier path publishes a 600 floor. The depletion path follows the lender’s matrix, and a first-time investor needs a 700 score.
Run the numbers on more than one path where your assets allow it. Across the wholesale network Lendmire places files with, the same borrower can look strong on one path and thin on the other, so an early comparison saves effort.
Where the General Rule Breaks
Privately held stock. A founder or shareholder between jobs may hold most of their wealth in company shares. Privately held company stock is not an eligible asset on either path. The route is documented liquid assets: seasoned proceeds from a sale or buyout, cash, public securities and retirement accounts at their haircuts. On the depletion path, sale-of-business, inheritance and legal-settlement funds are excused from the 120-day statement seasoning.
Short versus long gaps. On the qualifier path, a six-week gap and a six-year gap look the same because employment is not documented. On the depletion path, the length of the gap matters less than the size of the balances. Asset-derived income can also supplement documented income up to a 45% debt-to-income ratio. If you have an offer letter or a new job that starts soon, ask whether it helps your file. When asset income supplements documented income, the minimum-assets rule is waived.
Severance. Once severance is deposited, it becomes a cash balance. Seasoning, statements and the source of those funds then apply like any other balance. How a given lender treats severance before it is deposited is a question to put to the loan officer early.
First-time investors. If the property is an investment property and you have never owned one, the depletion path requires a 700 score.
Credit events. Housing history is reviewed at 0x30x12, and one 30-day late payment 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.
Minimum assets. The depletion path requires qualified assets of at least the lesser of $1,000,000 or 1.25 times the loan balance. When depletion is your only income source, qualified liquid assets must also total at least $250,000.
Investment property. Loans on investment property run on the depletion path only, and they are business-purpose loans. The CFPB’s Regulation Z exempts credit extended primarily for business purposes. The agency’s ability-to-repay rulemaking applies only to loans made primarily for personal, family or household purposes. A business-purpose investor loan is reviewed differently from a standard owner-occupied mortgage, but the lender still reviews your assets, credit and property.
When to Move: A Timing Plan
The best time to apply is while your statements are still strong and before your balances change. Here is the sequence that tends to work.
1. Before your last day. Gather statements and avoid moving money between accounts. Fresh transfers can fail seasoning.
2. During any severance window. Keep severance in a regulated account and leave it alone. Let it season.
3. Before spending the proceeds of a sale. Park business-sale funds in a regulated cash account and keep the closing paperwork.
4. After you compare both paths. Decide whether assets cover the loan or must become income.
5. After a new job starts. Ask whether the new income helps your file. It may supplement derived income under the depletion path.
Document Checklist
- Statements for every qualifying account: two months on the qualifier path, or one within 45 days and others at least 120 days old on the depletion path.
- A government ID and the usual property papers: insurance, the current mortgage statement and anything the appraiser needs.
- Source records for large deposits, such as a sale agreement or settlement letter.
- A written plan for how you will use the cash-out funds and carry the new payment.
Alternatives If Assets Do Not Fit
| Option | Needs a paycheck? | Main tradeoff |
|---|---|---|
| Conventional (agency) cash-out | Income is documented | Employment gap complicates it |
| Co-borrower with income | Yes, theirs | Their income and debts are reviewed |
| Bank statement program | Income shown by deposits | Fits self-employed, not no income |
| Home equity line | Lender’s rules apply | Second lien, lender-set terms |
| Waiting for a new job | Eventually | Delays your timeline |
Is a Cash-Out With No Paycheck a Good Idea?
Sometimes. It works when the proceeds fund something that improves your position and your remaining assets keep the payment safe. It works poorly when the cash simply covers living costs, because a bigger loan and no income is a tight combination. A cash-out also shrinks the equity you could otherwise tap later.
If you expect a paycheck soon, comparing a conventional route after your job starts against an asset-based loan now is a fair exercise. If a refinance with a paycheck is realistic, the conventional path may carry a lower cost. If your income is permanently modest compared with your portfolio, an asset-based structure may be the more natural fit. Treat that as a comparison, not a verdict.
Key Terms Defined
Asset qualifier path: A program path where eligible assets must equal or exceed the entire loan, with no employment or income documented.
Asset depletion path: A path where usable assets divided by 60 months become qualifying monthly income that runs through the debt-to-income test.
Seasoning: The length of time money has been held in an account before the lender counts it.
Haircut: The share of an asset’s balance that a program discounts, so a 70% retirement credit has a 30% haircut.
Loan-to-value: The loan amount divided by the property’s appraised value.
Cash-out refinance: A new mortgage larger than the old one, with the difference paid to the borrower.
Frequently Asked Questions
Do I need a job for an asset-based cash-out refinance?
No. On the qualifier path, no employment or income is documented, and on the depletion path, income comes from assets. You still provide statements, credit is reviewed and the file is fully underwritten. Programs change and terms are subject to underwriting.
Can I count privately held company stock?
If you sell or are bought out, the proceeds count once they are seasoned cash, securities or retirement balances at the percentages above. Sale-of-business funds are excused from the 120-day statement seasoning on the depletion path.
Do retirement accounts count?
Yes, at a reduced percentage in most cases. On the qualifier path, 401(k) and IRA balances count at 90% under age 59½ and 100% at 59½ or older. On the depletion path they count at 70% at any age. Accounts combine, subject to underwriting.
Can cash-out proceeds help me qualify?
No. Cash-out proceeds never count as qualifying assets on the depletion path, so the money you pull out cannot be reused to meet the asset test. On the qualifier path, the lender sets whether cash-out is allowed at all, and that answer is not published.
Can I use this on a rental property?
Yes, on the depletion path only. Investment property runs up to 60% loan-to-value on a cash-out refinance on that path, and a first-time investor needs a 700 score. The loan is a business-purpose loan. The qualifier path covers principal residences and second homes.
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 options based on your statements, the property, credit profile, leverage, and your goals. Reach the team at 828-256-2183 or request a quote to start the conversation.
Whichever path fits, the same rule holds: balances sitting in regulated accounts and seasoned for at least two months do more work for a refinance than any paycheck you are waiting to land.
A deeper walk-through of investment-property equity extraction lives in Lendmire’s guide to cash-out refinance on an investment property.
About Lendmire
Lendmire is a mortgage brokerage (NMLS# 2371349) licensed for consumer mortgage lending in 16 states, arranging bank statement and other alternative-documentation mortgages — P&L-only, 1099-only and asset-based paths — through a wholesale lending network. Eligibility is determined by the lender on each file. 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 – Reg Z §1026.3 Exempt transactions
2. Federal Register – Ability-to-Repay and Qualified Mortgage Standards (CFPB final rule)
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 With No Income Other Than Assets
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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Required disclosures. Lendmire (NMLS# 2371349) operates as a licensed mortgage broker, not a direct lender or depository. The discussion in this article is general in nature and should not be relied upon as financial, legal, or tax advice — every investment scenario is unique and should be reviewed by a qualified professional. Any loan inquiry is subject to lender underwriting, and this article is not a commitment to lend or a guarantee of approval. Mortgage rates, loan terms, and program guidelines vary by borrower, property, and state, and may change without notice. Equal Housing Opportunity. Verify licensure at NMLS Consumer Access.