The Quick Read: These lenders qualify a borrower on documented assets instead of tax returns, pay stubs or employment verification, so the paperwork shifts from income to account statements. The asset-based mortgage programs Lendmire arranges through select lenders work on two paths. On one, assets cover the whole loan. On the other, assets are converted into a monthly qualifying income. Cash-out is where the two paths differ most.
- Low documentation is not no documentation. Every file is fully underwritten, and the assets are documented with statements.
- Two paths, one at a time. The asset qualifier path needs eligible assets that equal or exceed the entire loan. The asset depletion path divides usable assets by 60 months to create income.
- Cash-out is tighter. On the depletion path, cash-out is capped at 60% loan-to-value on a principal residence, second home or investment property, subject to underwriting.
- Cash-out proceeds never count as qualifying assets.
- Privately held company stock is not an eligible asset on either path.
Lendmire is a mortgage broker, not a lender. The “lenders” in this search are really a set of wholesale programs, and the right match depends on the borrower’s assets, credit profile, property and leverage needs.
What Does “Low Documentation” Actually Mean Here?
Low documentation means the file skips income paperwork. It does not skip underwriting. A borrower on these programs provides no traditional personal-income documentation, pay stubs or employment verification. The lender still reviews credit, the property, title, the appraisal and, most of all, the asset statements.
This is the point where borrowers get the wrong idea, assuming that skipping income paperwork means skipping proof of money. Today’s asset-based programs do the opposite: they prove the money exists, how long it has been there and where it came from.
The programs fit people with large balances and little documented income:
- Retirees living on a portfolio.
- Sellers of a business.
- Recipients of an inheritance or settlement.
- Early-retired professionals.
How Should You Read “Lenders” in This Search?
Treat the word as shorthand for programs. Few lenders publish every guideline, and each one sets its own overlays on cash-out. A broker that works with a network of wholesale lenders can match your statements, property and goals to the program that fits, instead of sending you to one lender’s menu.
Here is what that looks like in practice:
- The broker reviews your assets by type and balance.
- The broker decides which path you fit.
- The broker places the file with a program whose guidelines match.
The lenders that write this kind of loan differ on cash-out leverage, property types and how they count accounts. Which program is right for your situation depends on those details, not on a ranking.
Lendmire’s asset-based mortgage programs are placed through select lenders in its network. The consumer mortgage lending behind them is licensed in 16 states: Alabama, California, Colorado, Florida, Georgia, Indiana, Michigan, Montana, New Mexico, North Carolina, Ohio, Pennsylvania, Tennessee, Texas, Virginia and Washington. Availability stays within those states.
The Two Paths, Side by Side
A borrower is reviewed on one path at a time. Never blend the two sets of figures.
| Factor | Asset qualifier | Asset depletion |
|---|---|---|
| How assets work | Cover the whole loan | Become monthly income |
| Income documented | None | Derived from assets |
| Purchase leverage | Up to 80% LTV | Up to 80% (residence); 65% (investment) |
| Refinance leverage | Up to 75% LTV | 80% rate-and-term (residence); 65% (investment) |
| Cash-out | Lender-set, not published | 60% LTV, all occupancies |
| Loan amounts | Up to $4,000,000 | $125,000 to $3,500,000 |
| Credit | 600 minimum | Lender’s matrix |
All figures are ceilings and floors, never offers, and they are subject to underwriting and select-program terms. The qualifier path covers a principal residence or second home. Investment property is available only on the depletion path.
On the qualifier path, cash-out proceeds and leverage are set by the lender and are not published. Do not assume the 75% refinance ceiling carries over to cash-out. A broker confirms what the matched program allows before you commit to a plan.
Which Assets Count, and How Much?
Each account type counts at a percentage of its balance. The percentages differ by path.
| Asset | Qualifier path | Depletion path |
|---|---|---|
| Brokerage accounts | 100% | Securities 80% |
| Cash, savings, money market | 100% | Cash 100% |
| Certificates of deposit | 100% | 100% |
| Retirement accounts | 90% under 59½, 100% after | 70% at any age |
| Real-estate equity | Not listed | 60% |
Accounts combine on the qualifier path.
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 with a large closely held stake needs a different route. The route is documented liquid assets: seasoned proceeds from a sale or buyout, cash, public securities, and retirement accounts at their percentages.
Cryptocurrency, precious metals, collectibles, pledged or borrowed funds, and business accounts beyond your ownership share are not published as eligible on either path. The usual fix is to convert them to cash in a regulated account. The lender then reviews where the funds came from.
Worked Examples
These examples show the arithmetic. The lender’s own calculation governs.
Qualifier path. Say a borrower wants an $800,000 loan. The borrower holds $330,000 in brokerage accounts, counted at 100% for $330,000. The borrower also holds $300,000 in a 401(k) while under age 59½, counted at 90% for $270,000, and $200,000 in savings, counted at 100% for $200,000. Usable assets total $800,000. That equals the loan, so the file is reviewed on assets alone, subject to underwriting.
Depletion path. Consider a borrower with $1,500,000 in securities, counted at 80% for $1,200,000. The same borrower holds $300,000 in cash at 100%. Usable assets are $1,500,000. Divide by 60 months and the qualifying income is $25,000 per month. That income must then carry the housing payment and other debts through the debt-to-income test.
The depletion path has minimums as well. Qualified assets must be at least the lesser of $1,000,000 or 1.25 times the loan balance. They can never be below $250,000 in liquid assets when asset depletion is the only income source. If asset income only supplements documented income, up to a 45% debt-to-income ratio, the minimum-assets rule is waived.
Why Cash-Out Is the Tight Spot
Cash-out refinances carry lower leverage than purchases on this program. On the depletion path the ceiling is 60% for a principal residence, second home or investment property, compared with 80% or 65% for a purchase or rate-and-term refinance. The reason is simple: the lender is advancing cash against equity, and the equity cushion matters.
Two rules shape every cash-out plan:
- Cash-out proceeds never count as qualifying assets. You cannot refinance, then count the new cash toward the asset test. Only assets you already held, documented and seasoned, qualify.
- A larger loan raises the payment. On the depletion path, taking more cash pushes up the debt-to-income load. A borrower who passes on a rate-and-term refinance may fail on a larger cash-out.
What You Still Document
Skipping income paperwork does not mean skipping documents. Expect the lender to review:
- Statements for every qualifying account.
- An explanation and source for large deposits.
- The property, title and an appraisal.
- Credit and housing payment history.
- Insurance on the property.
Statement requirements differ by path. On the qualifier path, the lender wants 60 days of seasoning and two months of statements for each qualifying account. On the depletion path, statements must be 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.
Credit rules apply as well. The qualifier path publishes 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 score. Housing history is 0x30x12, though 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.
Where the General Rule Breaks
A few situations change the plan.
A business sale or buyout. Proceeds from selling a company are excused from depletion-path seasoning. On the qualifier path, the standard 60-day seasoning applies. The timing of the sale and your statements can decide which path is easier.
A large asset in the wrong form. A borrower with $5,000,000 of private company stock may have almost nothing that counts. That same borrower with $5,000,000 in cash and public securities may have plenty. The form of the asset matters as much as its size.
Investment property. Leverage there is 65% on a purchase or rate-and-term refinance and 60% on cash-out. A first-time investor needs a 700 score.
A principal residence versus a rental. A loan on a principal residence or second home is a consumer mortgage. A loan on a non-owner-occupied rental is a business-purpose loan. The CFPB’s Regulation Z, section 1026.3 treats credit to acquire, improve or maintain non-owner-occupied rental property as business purpose. Business purpose, however, does not mean exempt from every rule. A Hunton paper on business-purpose lending explains that other compliance duties, such as HMDA reporting, can still apply.
Why assets can qualify a consumer loan at all. The CFPB’s ability-to-repay compliance guide shows that a consumer lender’s repayment test can rest on income or on assets. That is the basis for the qualifier path.
Which Path Fits Which Borrower?
| Borrower profile | Likely fit |
|---|---|
| Large cash and brokerage, loan under usable assets | Qualifier |
| Strong portfolio, loan larger than usable assets | Depletion |
| Wants cash out on a primary residence | Depletion, 60% |
| Wants cash out on a rental | Depletion, 60% |
| Holds mostly private stock | Convert to liquid first |
| Some documented income plus assets | Depletion, supplementing |
Choose the qualifier path when your usable assets cover the entire loan. Choose the depletion path when they do not, but your portfolio can generate enough income to carry the payment. Retirement balances are a good example of the difference: they count at 90% or 100% on the qualifier path and 70% on the depletion path.
How Does It Compare With the Alternatives?
Other programs solve different problems. Each row below describes that program’s own rules, not this one.
| Program | Who it suits |
|---|---|
| Asset-based mortgage | Large balances, little documented income |
| Bank statement program | Borrowers who document income through deposits |
| DSCR loan | Business-purpose rentals qualified on rent |
| HELOC | Existing equity with a lighter structure |
| Full-documentation loan | Borrowers with clean tax returns |
A self-employed owner with steady deposits probably belongs in a bank statement program. An investor buying rentals that cash-flow belongs in DSCR. Someone with a large portfolio and a modest income is the asset-based borrower.
Questions to Ask Before You Choose a Program
A broker can help you test any program with these questions:
1. How does it treat cash-out, and at what leverage?
2. Which occupancy types are allowed?
3. How are my assets valued, and which are excluded?
4. How many months of statements and how much seasoning are required?
5. How are large deposits sourced and reviewed?
6. Does the program follow one path or both?
Different programs answer these differently. That is why shopping several wholesale lenders through a broker tends to beat approaching one.
Why Asset Files Stall
Most delays come from the same few problems:
- Large deposits with no paper trail.
- Accounts that are too new for the seasoning rule.
- Assets that sit in an ineligible form, such as private stock or crypto.
- A cash-out request above what the depletion math supports.
- Credit events inside the seasoning window.
Most of these are fixable before the application if you know them in advance. Gather statements first, trace any large deposit, and convert ineligible holdings to cash in a regulated account well ahead of time.
Key Terms Defined
Asset qualifier path: The route where eligible assets, after credit percentages, equal or exceed the entire loan, and no income is documented.
Asset depletion path: The route that divides usable assets by 60 months to create monthly qualifying income.
Usable assets: The balance that counts after each account type’s percentage is applied.
Seasoning: The period an asset must have been in your account before the lender counts it.
Cash-out refinance: A new loan larger than your payoff, with the difference paid to you.
Business-purpose loan: A loan made primarily for a business activity such as owning a rental, reviewed differently from a standard owner-occupied mortgage.
Frequently Asked Questions
Is this a no-documentation loan?
No. You provide no traditional personal-income documentation, pay stubs or employment verification, but the assets are fully documented with statements. The property, credit and title are all reviewed. Every file is underwritten individually.
Can I take cash out on an investment property?
Yes, through select programs on the asset depletion path, up to 60% loan-to-value, subject to underwriting. Investment property is not available on the qualifier path. A first-time investor on the depletion path needs a 700 credit score. These specifics are subject to lender guidelines and a full review of property, leverage, and credit.
Do cash-out proceeds count toward my assets?
No. Cash-out proceeds never count as qualifying assets. Only assets you already held, documented and seasoned, count toward the test.
Does my private company stock count?
No. The documented route is a sale or buyout, converted into a seasoned cash balance.
How do I find the right lender for my situation?
A broker that shops multiple wholesale lenders can match your assets, property and leverage to a program. The right fit depends on your account types, credit profile and how much cash you want out.
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.
For the mechanics of pulling equity out of a rental property, see 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 Regulation Z, Section 1026.3
2. Hunton, Beware of Business Purpose
3. CFPB Ability-to-Repay and Qualified Mortgage Small Entity Compliance Guide
This article is part of Lendmire’s asset-based mortgage program — full qualification details, guidelines, and scenarios live on the program page.
Related reading: Asset-Based Cash-Out Refinance Requirements With No Income Verification · Asset-Based Cash-Out Refinance Requirements for a Founder Before a Liquidity Event
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
- Mortgage Loan Originator · NMLS# 1129696 · Verify on NMLS Consumer Access
- North Carolina Real Estate Broker · License# 343312 · Verify on NCREC
- North Carolina Insurance Producer · License# 19053198 · Property, Casualty, Life, Health · Verify on NAIC SBS
- Lendmire LLC · Firm NMLS# 2371349 · Verify firm licensure
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.