The Quick Read: The best provider for this kind of loan depends on your property, your credit, your leverage need, and how your assets are held, so no single name wins for every borrower. Lendmire is a mortgage broker, not a lender. It shops a network of wholesale lenders and matches your statements to the program that fits, subject to underwriting.
- Two paths exist. On the asset qualifier path, the loan is reviewed on verified assets rather than income documentation, subject to lender guidelines. On the asset depletion path, assets become monthly qualifying income.
- Cash-out leverage is lower than purchase leverage. On the depletion path, cash-out tops out at 60% on a principal residence, second home, or investment property.
- Assets are documented. Expect statements, seasoning, and a full file, since the loan is still underwritten and verified assets are required.
- Privately held company stock does not count on either path.
- Consumer lending is licensed in 16 states for this program, subject to lender guidelines.
If your balance sheet is large and your paycheck is not, this is the page that explains how the loans actually work.
Why a Ranked List of Providers Would Mislead You
A ranked list of lenders sounds useful. It usually is not.
The right program depends on the borrower. A retiree living on a portfolio, a founder who just sold a company, and an early-retired professional each fit a different path. A broker that shops many wholesale lenders can match the file to the program. A single lender can only show you its own menu. That is the practical case for working through a broker on this loan type.
So this article skips the roundup. It explains how these lenders look at your file, which path fits which borrower, and what to ask before you commit. The lenders that write this product vary by property type, credit profile, and how much equity you want out. Any program Lendmire describes below is subject to underwriting and is not a commitment to lend.
What “Asset-Based” Means (and What It Doesn’t)
Asset-based cash-out refinance means you borrow against a property you own and qualify using your financial assets instead of employment income. The term is used loosely in the market. Some people mean a property-cash-flow loan, some mean a bank statement loan, and some mean a commercial hard-money loan secured by collateral. None of those is what this article covers.
Here, it means asset-based mortgage programs that treat verified balances as the basis for qualification. These are consumer mortgages placed through select lenders. The file is fully underwritten. Credit, the property, title, and the assets are all reviewed.
Two other routes sit nearby, and they solve different problems. A bank statement loan suits borrowers who document income through deposits. Rental financing runs on property income instead. This article is for borrowers whose strength is the balance sheet.
How Underwriting Treats Your Assets, Step by Step
Step one: pick the path. A borrower is reviewed on one path at a time. The paths never blend.
Step two: count the assets. Each account type gets a percentage credit, called a haircut when it is below 100%.
Step three: check seasoning. Funds must sit in the account long enough to be treated as yours.
Step four: size the loan. Leverage is capped by the path, the occupancy, and whether the loan is a cash-out.
Step five: underwrite the file. The lender reviews credit, the appraisal, title, and the statements.
Programs change, and each file is underwritten on its own facts. The figures below are published ceilings and floors for select programs, not offers.
Asset Qualifier vs. Asset Depletion
The asset qualifier path asks one question: do your eligible assets, after credit percentages, equal or exceed the entire loan amount? If yes, no employment or income is documented. The asset depletion path asks a different one. It divides usable assets by 60 months to create a monthly qualifying income. That income then carries the housing payment and your other debts through the debt-to-income test.
| Factor | Asset Qualifier | Asset Depletion |
|---|---|---|
| Core test | Assets cover the whole loan | Assets / 60 months = income |
| Income documented | None | Derived income runs through DTI |
| Purchase leverage | Up to 80% | Up to 80% (residence, second home) |
| Refinance leverage | Up to 75% | Up to 80% rate-and-term |
| Cash-out leverage | Set by lender, not published | Up to 60% |
| Loan amounts | Up to $4,000,000 | $125,000 to $3,500,000 |
| Occupancy | Residence, second home | Also investment property |
On the depletion path, an investment property is capped at 65% on a purchase or rate-and-term refinance and 60% on a cash-out. A principal residence or second home reaches 80% on a purchase or rate-and-term refinance and 60% on a cash-out. Cash-out proceeds never count as qualifying assets on this path.
Here is the catch on the qualifier path. Whether cash-out proceeds are allowed, and at what leverage, is set by the lender and is not published. Ask for that answer before you assume it.
Which Assets Count and How Much
Not every dollar counts at face value. Each path has its own table, and the two should never be mixed.
Qualifier path credit:
- Brokerage accounts, certificates of deposit, money market, and savings count at 100%.
- Retirement accounts count at 90% under age 59½ and 100% at 59½ or older.
- Accounts combine.
Depletion path credit:
- 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%.
Not eligible 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.
Privately held company stock is not an eligible asset on either path. Neither are cryptocurrency, precious metals, collectibles, pledged or borrowed funds, or business accounts beyond your ownership share. The documented route for any of these is conversion into a seasoned cash balance in a regulated account, with the source reviewed by the lender.
Two Worked Examples
These shapes show the arithmetic. The lender’s own calculation governs.
Qualifier path. Picture a borrower seeking an $800,000 loan. They hold $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%, so $200,000). Usable assets total $800,000. That matches the loan, so the file is reviewed on assets alone, subject to underwriting.
Depletion path. Say a borrower holds $1,500,000 in securities and $300,000 in cash. Securities count at 80%, giving $1,200,000. Cash counts at 100%, giving $300,000. Usable assets are $1,500,000. Divide by 60 months and you get $25,000 of monthly qualifying income. That income then has to carry the housing payment and other debts through the debt-to-income test.
Nothing is sold. Asset depletion is a qualification calculation, not a liquidation plan.
Where the General Rule Breaks
Several edge cases trip up borrowers. Most of them involve assets that look liquid and are not.
The founder with private shares. The route is a documented sale or buyout that converts the shares to cash. Sale-of-business proceeds are excused from the depletion path’s seasoning rule.
The crypto holder. Digital holdings are not published as eligible. Converting to a seasoned cash balance in a regulated account, with a reviewed source, is the documented route.
The borrower on a very large loan. The depletion path requires qualified assets of at least the lesser of $1,000,000 or 1.25 times the loan balance. It also requires at least $250,000 in liquid assets when depletion is the only income source.
The borrower with some income. Asset-derived income may supplement documented income up to a 45% debt-to-income ratio. When it supplements, the minimum-assets rule is waived.
The first-time investor. On the depletion path, a first-time investor needs a 700 credit score for an investment property. Final terms depend on the lender’s guidelines, the property type, and the borrower’s complete credit picture.
The recent credit event. A housing event needs 4 years of seasoning on the depletion path. Multiple bankruptcies are not eligible.
In practice, the cash-out leverage on the depletion path is the figure that surprises people most. Sixty percent of value is meaningfully less than purchase leverage. A borrower with a modest equity stake may find the check smaller than expected once payoff and costs come out first.
Seasoning, Credit, and Reserves
The qualifier path needs 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. Sale-of-business, inheritance, and legal-settlement funds are excused from that seasoning on the depletion path.
Credit starts at a 600 minimum on the qualifier path. The depletion path follows the lender’s matrix. Housing history is reviewed at 0x30x12, and one 30-day late in the last twelve months is considered case by case.
On the qualifier path, reserves are not required at or below 75% loan-to-value. Above that, the lender sets them. The depletion path has no published reserve months.
Most programs in a broker’s network tighten on credit and property type before they tighten on assets. That is where files stall, so it pays to review the full picture early.
Choosing a Provider: What a Broker Looks For
Because a broker sees many wholesale guidelines, comparison happens at the program level. These are the questions that separate a good fit from a bad one.
- Does the program allow cash-out on your path, and at what leverage?
- How are your specific accounts credited, especially retirement and securities?
- What seasoning does it want on each statement?
- Does the lender’s matrix fit your credit score and loan size?
- Is your property type and occupancy eligible?
- Does the program require a minimum asset level above your loan?
The best program for your situation is the one that answers yes to each. A lender that is strong for a primary residence may not write a second home. A lender with generous asset credit may cap leverage lower. Wholesale lenders differ on these details, which is why a single-lender quote rarely shows the whole market.
The Business-Purpose Distinction
One point deserves a short note. This asset-based program is a consumer mortgage, so consumer disclosure rules apply. A loan made primarily for a business or commercial purpose is treated differently under Regulation Z’s business-purpose provision, and the test turns on the loan’s purpose and facts rather than on the property type alone. The ABA Banking Journal explains that business-purpose treatment is not uniform across every regulation. For consumer-purpose loans, the CFPB’s ability-to-repay compliance guide is the starting reference. That is why a consumer asset-based file is documented with statements, not skipped past.
Risks and Alternatives
Asset-based qualification has real tradeoffs.
- Cash-out leverage is modest on the depletion path.
- Asset values move. A securities-heavy file can look different from one statement to the next.
- Retirement balances are discounted at 70% on the depletion path.
- You still carry a new, larger loan. The debt-to-income test on the depletion path is real.
Alternatives exist. A home equity line may fit a borrower with documented income. Selling some assets avoids new debt, though it may trigger other costs. A bank statement loan fits a borrower with strong deposits. For rental purchases, property-income financing is a separate lane. Tax treatment varies; consult a qualified professional.
Key Terms Defined
Cash-out refinance: a new, larger mortgage that pays off the old one and returns the difference after costs.
Asset qualifier: a path where eligible assets cover the whole loan and no income is documented.
Asset depletion: a path that divides usable assets by 60 months to create qualifying income.
Haircut: the discount applied to an asset, such as 80% credit for securities.
Seasoning: the time funds must sit in an account before they count.
Debt-to-income (DTI): your monthly debts divided by your qualifying monthly income.
Frequently Asked Questions
Can I do a cash-out refinance using only assets?
Yes, through select programs. On the asset qualifier path, eligible assets must equal or exceed the whole loan, and no income is documented. Cash-out terms on that path are set by the lender and are not published, so confirm them first. The depletion path allows cash-out up to 60% on a residence, second home, or investment property, subject to underwriting. Each figure is subject to lender guidelines and a complete review of property type, leverage, and credit.
Does privately held company stock count as an asset?
No. A founder’s route is documented liquid assets, such as seasoned proceeds from a sale or conversion, cash, public securities, and retirement accounts at their credit percentages.
Is this a no-documentation loan?
No. The file is fully underwritten. You skip traditional personal-income documentation, pay stubs, and employment verification, but you provide account statements, credit, an appraisal, and title review. Statements must meet the seasoning rules for the path.
Do cash-out proceeds count toward my qualifying assets?
No. On the depletion path, cash-out proceeds never count as qualifying assets. Plan your qualifying balances separately from the money you intend to pull out.
Can an investment property use these programs?
Only on the depletion path. Investment property reaches 65% on a purchase or rate-and-term refinance and 60% on a cash-out, with a 700 score for a first-time investor. The qualifier path covers a principal residence or second home.
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 — 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.
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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
2. ABA Banking Journal compliance Q&A
3. CFPB ATR/QM 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: Top Asset-Based Cash-Out Refinance Providers With No Income Verification · Asset-Based Cash-Out Refinance Requirements With No Income Other Than Assets · Best Asset-Based Cash-Out Refinance Program in Retirement on a Fixed Income
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.