The Quick Read: An athlete qualifies by documenting liquid assets rather than a paycheck, and the application follows from there. Through select programs, either the assets cover the whole loan, or they are converted into a monthly qualifying income that runs through the debt-to-income test, subject to underwriting.
- Two paths: the asset qualifier path covers the loan with assets alone. The asset depletion path divides usable assets by 60 months to create income.
- Cash-out leverage: on the depletion path, 60% on a principal residence, second home or investment property. Qualifier-path cash-out terms are set by the lender and are not published.
- Documents: account statements, not tax returns, pay stubs or employment verification.
- Hard limits: cash-out proceeds never count as qualifying assets, and privately held stock is not eligible on either path.
A contract, a signing bonus and endorsement deals make an athlete’s income large but hard to document. Underwriters who want two years of steady tax returns often see swings, deductions and short earning windows. Asset-based programs skip that test and look at what is already in your accounts.
This article explains how that works, step by step. Lendmire is a mortgage broker, so it arranges these loans through select lenders. The lender makes the final call on every file.
What Is an Asset-Based Cash-Out Refinance?
It is a new mortgage on a home you own, larger than the balance you owe, with the difference paid to you. The qualification rests on your assets instead of your income. The file is fully underwritten: credit, appraisal, title and statements all get reviewed. What changes is that no traditional personal-income documentation, pay stubs or employment verification are requested.
Lendmire’s asset-based mortgage programs are consumer mortgages on a principal residence or second home. Investment property is available only on the asset depletion path, where the loan is business-purpose.
How Does Underwriting Treat Your Assets, Step by Step?
Underwriting works in a fixed order. A borrower is qualified on one path at a time, and the figures never blend between paths.
1. The lender totals your eligible accounts. Each account type counts at a set share of its balance.
2. The lender applies the path’s test. On the qualifier path, the counted assets must equal or exceed the entire loan. On the depletion path, counted assets divided by 60 months become qualifying income.
3. The lender checks seasoning. Funds must have sat in your accounts long enough to be treated as yours.
4. The lender reviews credit and the property. An appraisal sets the value, and leverage limits apply to it.
5. The lender sets the loan amount. Any cash you receive comes after payoff of the existing loan and costs.
The asset qualifier path
Here the assets must cover the entire loan. No employment or income is documented. Loans go to $4,000,000, with leverage up to 75% on a refinance, subject to underwriting. Whether cash-out proceeds are allowed on this path, and at what leverage, is the lender’s call and is not published, so ask before you plan around it. These specifics are subject to lender guidelines and a full review of property, leverage, and credit.
An illustrative case: an $800,000 loan with $330,000 in brokerage accounts (counted at 100%), $300,000 in a 401(k) under age 59½ (counted at 90%, or $270,000) and $200,000 in savings (100%). That is $800,000 of usable assets, which is reviewed on assets alone. The lender’s own calculation governs.
The asset depletion path
Here assets become income. Usable assets divided by 60 months produce a monthly qualifying income, and that income must carry the housing payment and your other debts through the debt-to-income test. Loans run from $125,000 to $3,500,000.
An illustrative case: $1,500,000 in securities counted at 80% ($1,200,000) plus $300,000 in cash at 100% is $1,500,000 usable. Divided by 60 months, that is $25,000 of monthly qualifying income. That figure then has to carry the housing payment and other debts.
Cash-out leverage on this path is 60% on a principal residence, second home or investment property. Purchases and rate-and-term refinances go higher: 80% on a principal residence or second home, and 65% on an investment property.
Cash-out proceeds never count toward your qualifying assets. Borrowed money cannot qualify you.
Which Path Fits Which Athlete?
Your balance sheet decides the path, not your sport or contract size. This table shows the structural differences.
| Factor | Asset Qualifier | Asset Depletion |
|---|---|---|
| Test | Assets cover the whole loan | Assets ÷ 60 = income, then DTI |
| Income documented | None | Derived from assets |
| Max loan | $4,000,000 | $125,000–$3,500,000 |
| Property types | Principal residence, second home | Also investment property |
| Refinance leverage | Up to 75% | 60% on cash-out |
If your liquid assets are large relative to the loan, the qualifier path is simpler. The test is a single comparison of assets to loan amount. If your assets are solid but smaller than the loan, the depletion path may work, because it asks whether the income stream carries the payment, not whether assets equal the loan.
Cash-out changes the picture. The depletion path publishes a 60% cash-out ceiling, while qualifier-path cash-out is lender-set. Athletes who want maximum cash from a modest-equity home may find neither path stretches far. That is a signal to rethink the size of the request, not to hunt for a looser program. Terms depend on the lender’s guidelines, the property type, the leverage, and a full review of the credit profile.
What Counts as an Asset, and What Does Not?
Brokerage, CDs, money market and savings are the cleanest assets. Each path counts them differently, so read the table by path.
| Asset | Qualifier Path | Depletion Path |
|---|---|---|
| Cash, savings, money market | 100% | 100% (cash accounts) |
| Certificates of deposit | 100% | 100% |
| Brokerage and securities | 100% | 80% |
| Retirement accounts | 90% under 59½, 100% after | 70% at any age |
| Real-estate equity | Not published | 60% |
Those percentages are the share that counts. On the depletion path, 20% of securities and 30% of retirement balances do not count.
Many athlete holdings fall outside these tables. Privately held company stock is not an eligible asset on either path. If you own part of a business or a team-related venture, the route is a documented sale or buyout, converted to a seasoned cash balance. Deferred compensation, stock options and non-vested restricted stock units are not eligible on the depletion path. Cash on hand, foreign funds and custodial or escrow accounts are also not eligible assets.
Cryptocurrency, precious metals and collectibles are not published as eligible on either path. Convert them to cash in a regulated account and let the lender review the source. Business accounts count only to the extent of your ownership share, and pledged or borrowed funds do not count.
A signing bonus is an asset once it is paid and sitting in your account. Until then it is a promise. Moving it into a regulated account and letting it season is what makes it usable.
Seasoning and Statements: Timing Your Money
Seasoning is how long funds must sit in an account before they count. Plan around it before you apply.
- Qualifier path: 60 days of seasoning, with two months of statements for each qualifying account.
- Depletion path: 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.
The assets are documented on both paths. That is why a large bonus deposit or an account transfer right before applying causes trouble. Underwriters will want the source of any large deposit. Moving money around just before you apply muddies the paper trail, so decide where the funds will live well ahead of time and leave them there.
Credit and Other Minimums
Credit still matters. The qualifier path publishes a 600 minimum score. The depletion path follows the lender’s matrix, so ask for it rather than assuming a number. A first-time investor on the depletion path needs 700.
Housing history is typically 0x30x12, meaning no late payments in the last twelve months. One 30-day late is considered case by case. Multiple bankruptcies are not eligible, and a housing event needs 4 years of seasoning on the depletion path.
On the depletion path, qualified assets must be at least the lesser of $1,000,000 or 1.25 times the loan balance. They must never fall below $250,000 liquid when depletion is your only income source. If asset income supplements documented income, up to a 45% debt-to-income ratio, the minimum-assets rule is waived.
No reserves are required at or below 75% loan-to-value on the qualifier path. Above that, the lender sets them. The depletion path has no published reserve months.
How Do You Apply? A Practical Sequence
1. Choose the property and purpose. A principal residence or second home works on either path. An investment property works only on the depletion path.
2. Inventory your accounts. List each account, its type, owner and balance. Flag anything on the ineligible list.
3. Test both paths on paper. Apply the counted percentages. See which path your numbers support at the cash-out leverage you want.
4. Check seasoning. Look at account dates against the 60-day and 120-day windows. Put off applying if funds are too new.
5. Gather statements. Two months per account for the qualifier path. For the depletion path, one statement at least 120 days old and the latest within 45 days.
6. Pull credit review items. Know your score and your housing payment history before the lender does.
7. Submit the file through a broker. Lendmire compares programs across its network and places the file with a lender whose guidelines fit your profile.
8. Respond to underwriting conditions. Expect questions on deposits, account ownership and the source of funds.
9. Review your disclosures. The loan is a consumer mortgage, so TRID disclosures apply on the principal-residence and second-home versions.
An account that holds the right money in the wrong place, such as an entity account, a foreign account, or an unseasoned transfer, can create friction for athletes that has nothing to do with credit or the property. Cleaning that up before applying removes much of the friction. Overlays also differ between lenders, so the same file can look stronger at one than another.
Where the General Rule Breaks
- Retired or between contracts: this is where the asset paths fit best, because documented income is thin while balances are large.
- Active athlete with strong contract income: a full-documentation jumbo loan, which has its own tax-return and employment rules, may cost less. Compare before you assume assets are the better route.
- Investment property: only the depletion path reaches it. That loan is business-purpose, which brings a different review. Business-purpose credit is generally exempt from Regulation Z’s ability-to-repay rules, and the CFPB’s Regulation Z commentary lists factors for judging purpose. The Compliance Alliance notes that the loan’s purpose, not the property label, controls.
- Cash used for personal spending on a rental: a loan on an investment property needs a genuine business purpose, so large personal spending can complicate the file.
- Rental-income borrowers: a property qualified on its rent is a different product.
What the Decision Looks Like in Practice
The question is not whether you can qualify. It is what the larger loan does to your risk when earnings stop. An athlete’s income ends on a date, and a bigger mortgage does not. Cash-out raises your balance and your obligation.
If you want cash for a business, a down payment on the next property or liquidity between contracts, size the request to what you would be comfortable carrying with no paycheck. A lower cash-out amount than the ceiling allows is a legitimate choice.
Also remember that cash you borrow cannot count as an asset. Pulling cash out reduces your equity and does not strengthen any future asset-based file. Tax treatment can depend on how the funds are used and how the property is held; borrowers should keep clear records and speak with a qualified tax professional before relying on any deduction.
Key Terms Defined
- Cash-out refinance: a new mortgage larger than your current balance, with the difference paid to you.
- Asset qualifier path: a way to qualify when counted assets equal or exceed the whole loan, with no income documented.
- Asset depletion path: a way to qualify by dividing usable assets by 60 months to create monthly income.
- Seasoning: the length of time funds must sit in an account before they count.
- Haircut: the part of an asset balance that does not count toward qualifying.
Frequently Asked Questions
Can I use my signing bonus to qualify?
Yes, once it is paid, in a regulated account and seasoned. Until it is deposited it is a promise, not an asset. The lender reviews the source of large deposits, so keep the paper trail clean.
Does my contract or endorsement income matter?
It is not the test on either path. The qualifier path documents no income at all, and the depletion path derives income from your assets. Contract income can supplement a depletion-path file, up to a 45% debt-to-income ratio, subject to underwriting.
Does privately held stock in my own company count?
No. Your route is documented liquid assets: seasoned proceeds from a sale or conversion, cash, public securities and retirement accounts at their counted shares.
Is this a no-documentation loan?
No. Every file is fully underwritten and your assets are documented with statements. What you skip is tax returns, pay stubs and employment verification.
Where is the asset-based program available?
Lendmire’s consumer lending is licensed in 16 states: Alabama, California, Colorado, Florida, Georgia, Indiana, Michigan, Montana, New Mexico, North Carolina, Ohio, Pennsylvania, Tennessee, Texas, Virginia and Washington. Programs change, and each file is underwritten individually.
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.
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 (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. CFPB, Regulation Z § 1026.3
2. Compliance Alliance, Regulation Z and Investment Properties
This article is part of Lendmire’s asset-based mortgage program — full qualification details, guidelines, and scenarios live on the program page.
Related reading: Can You Get Approved for an Asset-Based Cash-Out Refinance After Selling a Business? · Best Asset-Based Cash-Out Refinance Program Using a Brokerage Account to Qualify
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.