The Quick Read: A jumbo cash-out refinance can qualify on your verified liquid assets instead of paychecks or tax returns, through one of two paths: assets that cover the entire loan, or assets converted into monthly qualifying income, with every file fully underwritten by a wholesale lender.
- Asset qualifier path: eligible assets, after the credit percentages, must equal or exceed the whole loan amount. No employment or income is documented.
- Asset depletion path: usable assets divided by 60 months become qualifying income, which must carry the housing payment and other debts.
- Cash-out limits: on the depletion path, cash-out on a principal residence or second home tops out at 60% loan-to-value, and cash-out proceeds never count as qualifying assets.
- Both paths document the assets. You provide statements, not tax returns, pay stubs or employment verification.
The people who ask about this are cash-heavy and income-light. They are retirees, business sellers, inheritance recipients, early-retired professionals and households living off a portfolio. Their balances are large, but a tax return or pay stub tells a lender very little. This guide shows which path fits, how each one counts your accounts, and how a broker finds the lender whose program matches your file.
Which Path Fits: Assets Cover the Loan, or Assets Become Income?
Pick the asset qualifier path if your eligible balances can equal the whole loan. Pick the asset depletion path if they cannot, or if the property is an investment property. A borrower is qualified on one path at a time. The two never blend.
On the qualifier path, the lender adds up your eligible assets after applying the credit percentages. If the total equals or exceeds the entire loan, you qualify on assets alone. No income is documented. Loans run up to $4,000,000, subject to underwriting. Leverage is up to 80% loan-to-value on a purchase and up to 75% 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.
On the depletion path, the lender discounts your assets, divides the usable total by 60 months, and treats the result as monthly income. That income then runs through the debt-to-income test. Loans run from $125,000 to $3,500,000 through select programs. This path also covers investment property, where the loan is business-purpose and reviewed differently from a standard owner-occupied mortgage.
For more on how Lendmire’s asset-based mortgage programs are structured, start with the program page. The sections below cover the mechanics.
How the Depletion Math Works on a Jumbo Cash-Out
The depletion path takes three steps. Apply the percentage that counts to each account, add the results, then divide by 60. The figures below are illustrative, and the lender’s own calculation governs.
Say you hold $1,500,000 in securities and $300,000 in cash. On the asset depletion path, securities count at 80%, which is $1,200,000, and cash counts at 100%, which is $300,000. Usable assets total $1,500,000. Divided by 60 months, that is $25,000 of monthly qualifying income.
That income must carry the new housing payment and your other debts through the debt-to-income test. A bigger cash-out means a bigger loan, and a bigger loan needs more income to pass the test. This is why the cash-out amount, not just the asset total, decides the file.
Two minimums apply on the depletion path. First, qualified assets must be at least the lesser of $1,000,000 or 1.25 times the loan balance. Second, when asset depletion is your only income source, you also need at least $250,000 in liquid assets, whatever the loan balance. If you have documented income as well, asset-derived income can supplement it up to a 45% debt-to-income ratio. When it supplements, the minimum-assets rule is waived.
The asset qualifier path is simpler. Picture an $800,000 loan backed by $330,000 in brokerage accounts (100%, so $330,000), $300,000 in a 401(k) while under age 59½ (90%, so $270,000) and $200,000 in savings (100%, so $200,000). Usable assets total $800,000, so the file is reviewed on assets alone, subject to underwriting.
What Counts as an Asset
Each path has its own table of credit percentages, and the two never mix. Each figure is the share of the balance that counts. The first table covers the asset qualifier path.
| Asset | Share that counts |
|---|---|
| Brokerage accounts | 100% |
| CDs, money market, savings | 100% |
| 401(k) or IRA, under 59½ | 90% |
| 401(k) or IRA, 59½ or older | 100% |
The second table covers the asset depletion path.
| Asset | Share that counts |
|---|---|
| Cash accounts and CDs | 100% |
| Securities | 80% |
| Retirement accounts, any age | 70% |
| Real-estate equity | 60% |
On the qualifier path, accounts combine, so balances at different institutions add together toward the loan amount. The depletion path does not accept custodial accounts, deferred compensation, escrow accounts, foreign funds, cash on hand, stock options, non-vested restricted stock units, or funds from non-regulated financial companies.
Privately held stock is not an eligible asset on either path. Cryptocurrency, precious metals, collectibles, pledged or borrowed funds and business-account balances beyond your ownership share are not published as eligible on either path. The documented route is converting them into a seasoned cash balance in a regulated account, with the source reviewed by the lender.
Key Terms Defined
Jumbo loan: a mortgage above the conforming limit for the county where the property sits. The federal housing finance agency’s conforming loan limit announcement sets the limit each year. A law-firm summary reports a one-unit baseline of $832,750 and a high-cost ceiling of $1,249,125. The same loan can be jumbo in one county and conforming in the next.
Cash-out refinance: a new, larger loan that pays off the old one and pays you the difference. Leverage is lower than on a purchase.
Asset depletion: here, a method that turns eligible assets into monthly qualifying income. It is not the same as the liquid assets a buyer spends at closing.
Percentage that counts: the share of an account balance a lender credits. The part that does not count is the haircut, such as 20% on securities.
Seasoning: how long funds must sit in an account before a lender credits them.
Why Cash-Out Is the Tight Part
Lenders cap cash-out below purchase leverage because the borrower is taking equity out of the property. On the depletion path, a principal residence or second home reaches up to 80% on a purchase or rate-and-term refinance but only 60% on a cash-out refinance.
Cash-out proceeds never count as qualifying assets on the depletion path. You cannot pull money out and then use it to qualify for pulling money out.
On the qualifier path, whether cash-out is allowed, and at what leverage, is set by the lender and is not published. Ask before you assume. Agency rules for Fannie Mae and Freddie Mac are narrower, and those agencies do not buy jumbo loans. That is why jumbo asset programs come from wholesale investors who set their own guidelines.
Credit also matters. The qualifier path has a 600 minimum score. The depletion path follows the lender’s score and loan-amount matrix, and a first-time investor needs 700. Housing history is 0x30x12, and one 30-day late in the last twelve months is considered case by case. Multiple bankruptcies are not eligible. After a housing event, the depletion path needs 4 years of seasoning.
Seasoning and Statements
The qualifier path wants 60 days of seasoning and two months of statements for each qualifying account. It requires no reserves at or below 75% loan-to-value. Above that, the lender sets them.
The depletion path wants statements at least 120 days old at application, plus the most recent statement within 45 days. It publishes no reserve months. Sale-of-business, inheritance and legal-settlement funds are excused from that seasoning.
How a Broker Finds the Right Lender
No single lender fits every asset profile. The program that fits your situation depends on your balances, the property type and your credit profile. It also depends on how much cash you want out. Lendmire is a mortgage broker, not a lender. It works with a network of wholesale lenders and matches your scenario to the program.
A broker can compare guidelines side by side that you would otherwise learn one lender at a time. Ask these questions of any program:
- Is cash-out allowed on the qualifier path, and at what leverage?
- Which path does the lender run: assets covering the loan, or assets converted to income?
- Do retirement accounts count by age, and at what percentage?
- How old must statements be at application?
- Does the file need a minimum asset total beyond the loan balance?
- What credit tier does the loan amount trigger?
The program is available for consumer mortgages in Alabama, California, Colorado, Florida, Georgia, Indiana, Michigan, Montana, New Mexico, North Carolina, Ohio, Pennsylvania, Tennessee, Texas, Virginia and Washington. For a closer look at one lender type, see Lendmire’s piece Top Jumbo Cash-Out Refinance Providers With Asset Depletion Income.
Asset-Based vs. the Alternatives
| Program | Reviewed on | Main trade-off |
|---|---|---|
| Asset-based | Verified liquid assets | Cash-out leverage is lower |
| Bank statement | Income shown by deposits | Needs a business deposit history |
| DSCR | Property rent covering the payment | Rental property only |
| Full-doc jumbo | Tax returns and pay stubs | Income must be documented |
| HELOC | Lender’s home-equity rules | Adds a second lien |
Each row describes that program’s own rules, not the asset-based program’s. DSCR financing qualifies primarily on property-level rental income covering the payment, subject to lender guidelines. A property with thin rent can still fit the depletion path, because your balance sheet carries the file rather than the rent. Run both on the same property if you own a rental.
Who This Fits
Consider a retiree with a large brokerage account and a pension that covers little of a jumbo payment. The depletion path turns the portfolio into qualifying income. A retiree in the 59½-and-older group would count retirement balances at 100% on the qualifier path instead, which may cover a smaller loan outright.
Run the numbers on a founder who sold a company. The sale proceeds are cash, and the depletion path excuses sale-of-business funds from the 120-day statement age. A founder who still holds privately held shares has a gap, because that stock is not eligible and does not count toward the file.
An early-retired professional living on a portfolio has no paycheck but large balances in securities and savings. The depletion math is the natural fit. The cash-out limit still applies.
Where the Rules Frame It
On a consumer loan, the lender must make a reasonable, good-faith determination that you can repay. The CFPB’s ability-to-repay guide lists current or reasonably expected income or assets among the factors. That is why verified assets can legitimately carry a file.
Frequently Asked Questions
Can cash-out proceeds count toward my qualifying assets?
No. On the depletion path, cash-out proceeds never count as qualifying assets. Your eligible balances must stand on their own before closing. On the qualifier path, the lender sets cash-out treatment and does not publish it, so ask before you structure the file.
I own shares in a private company. Do they count?
No. Privately held company stock is not an eligible asset on either path. The route is documented liquid assets. That means seasoned proceeds from a sale or buyout, cash, public securities and retirement accounts at their percentages. Sale-of-business funds are excused from the depletion path’s seasoning rule.
Do I have to sell or pledge my assets?
No. The lender runs a qualifying calculation and leaves the accounts where they are. You still have to document them with statements and show ownership.
Is this a no-documentation loan?
No. Every file is fully underwritten. You provide asset statements, a credit review and a property appraisal. What you skip are tax returns, pay stubs and employment verification.
Can I use this on a rental property?
Yes, on the depletion path. A first-time investor needs a 700 score. The loan is business-purpose and reviewed differently from a standard owner-occupied mortgage, subject to underwriting.
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 through the quote request page. For a related comparison, see Lendmire’s piece on bank statement versus asset-based cash-out on a non-warrantable condo.
Figures here are program ceilings and floors through select lenders in Lendmire’s wholesale network, subject to underwriting, and are not a commitment to lend.
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 brokerage serving self-employed and high-net-worth borrowers in 16 states. Bank statement, P&L-only, 1099-only and asset-based mortgages are arranged through wholesale lending channels; Lendmire brokers the financing and the lender underwrites each application. 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. FHFA 2026 conforming loan limit news release
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: How Lenders Underwrite an Asset-Based Cash-Out Refinance Using Retirement Accounts · How Lenders Underwrite an Asset-Based Cash-Out Refinance With No Income Other Than Assets
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
Legal disclosures. Lendmire (NMLS# 2371349) is a state-licensed mortgage brokerage that arranges financing through wholesale lender relationships. Lendmire is not a direct lender, depository institution, or registered financial advisor. The discussion above is general informational content about real estate financing — it is not financial, legal, or tax advice, and readers should consult licensed professionals for guidance on their individual circumstances. Loan inquiries are subject to lender underwriting; this article does not represent a commitment to lend. Loan terms, rates, and qualification standards vary by borrower, property, and state, and are subject to change at any time. Equal Housing Opportunity. NMLS Consumer Access: nmlsconsumeraccess.org.