The Quick Read: You qualify on one of two paths. Either your eligible assets cover the whole loan, or your assets are divided by 60 months into a monthly qualifying income. You then document those assets with statements, order an appraisal, and go through full underwriting, subject to lender guidelines.
- Pick one path. The asset qualifier path documents no employment or income. The asset depletion path turns assets into income that must pass a debt-to-income test.
- Cash-out leverage is set by the path. On the depletion path, cash-out is up to 60% loan-to-value on a principal residence, second home or investment property. On the qualifier path, the lender sets cash-out terms and does not publish them.
- Cash-out proceeds never count as qualifying assets. You need eligible assets that exist before the loan.
- Privately held company stock is not eligible on either path. Convert it to seasoned cash or public securities first.
- Loan sizes differ by path. The qualifier path goes up to $4,000,000. The depletion path runs from $125,000 to $3,500,000.
A jumbo cash-out is where income-based underwriting hurts most. Your balance sheet may be strong while your tax returns show little. Retirees, business sellers, inheritance recipients and early-retired professionals often sit in that gap. The asset-based route lets your statements carry the file instead of your pay stubs.
This guide covers how the two paths work, how much cash you can take, which assets count, and how to apply. All figures describe select programs in Lendmire’s wholesale network. They are ceilings and floors, not offers, and every file is underwritten individually.
What Is an Asset-Based Cash-Out Refinance?
An asset-based cash-out refinance replaces your current mortgage with a larger one and pays you the difference. The lender decides whether you can repay by looking at your documented assets, not your paychecks. Lendmire arranges these loans as a broker through select lenders, and its asset-based mortgage programs are the source of the parameters below.
“Asset-based” is not “no underwriting.” Every file is fully underwritten. You supply no traditional personal-income documentation, pay stubs or employment verification on the qualifier path. You do supply statements for every account you want counted, and the lender reviews credit, the property and where the money came from.
Above $1 million, the loan is large enough that small differences in leverage and asset credit change the outcome. That is why the choice of path matters more here than on a smaller loan.
Which Path Fits You: Assets Cover the Loan or Assets Become Income?
Choose the qualifier path if your eligible assets, after the percentages that count, equal or exceed the entire loan. Choose the depletion path if they do not, or if you want cash-out terms that are published. You are qualified on one path at a time, and the two tables never blend.
| Feature | Asset qualifier | Asset depletion |
|---|---|---|
| How you qualify | Assets cover the whole loan | Assets ÷ 60 months = income |
| Income documented | None | Derived income, DTI test |
| Loan amounts | Up to $4,000,000 | $125,000 to $3,500,000 |
| Property types | Principal residence, second home | Also investment property |
| Credit | 600 minimum score | The lender’s matrix |
The decision is simple arithmetic. Add up your eligible balances at the percentages for each path, then compare the total to the loan.
Here is the qualifier shape. A borrower with an $800,000 loan holds $330,000 in brokerage accounts (100% counts, so $330,000), $300,000 in a 401(k) while under age 59½ (90% counts, so $270,000) and $200,000 in savings (100% counts, so $200,000). That totals $800,000 of usable assets and is reviewed on assets alone. The same shape applies above $1 million: usable assets must equal or exceed the whole loan.
Here is the depletion shape. A borrower holds $1,500,000 in securities (80% counts, so $1,200,000) plus $300,000 in cash (100% counts). That is $1,500,000 usable, divided by 60 months, for $25,000 of monthly qualifying income. That income then has to carry the housing payment and other debts through the debt-to-income test. These examples are illustrative, and the lender’s own calculation governs.
For cash-out specifically, the depletion path is the one with published terms. On the qualifier path, whether cash-out proceeds are allowed, and at what leverage, is the lender’s call. Ask that question first, before you gather a single statement.
How Much Cash Can You Take Above $1 Million?
On the depletion path, cash-out is capped at 60% loan-to-value, whether the collateral is a principal residence, a second home or an investment property. That ceiling applies to the whole new loan, not just the cash portion. The lowest ceiling in the file governs.
Think of the limits as a stack. The loan must fit the path’s size range. The balance must fit the leverage cap on the appraised value. The assets must clear the minimum-assets rule. The derived income must carry the debt. The tightest of these decides how much cash you can take.
For comparison, the same depletion path allows up to 80% on a purchase or rate-and-term refinance of a principal residence or second home. On an investment property it allows up to 65% on a purchase or rate-and-term refinance. Taking cash out costs you leverage on every occupancy type.
The qualifier path allows up to 75% loan-to-value on a refinance of a principal residence or second home. That is not a cash-out figure. Because the lender sets qualifier-path cash-out terms, you should not plan around a number until a lender confirms it.
At 60% leverage, a loan just over $1 million needs a home appraising at roughly 1.7 times the loan. Equity is the first thing to check. Many borrowers with large portfolios also hold homes with ample equity, so the appraisal usually matters less than the asset math.
The depletion path has a minimum-assets rule as well. You need qualified assets of at least the lesser of $1,000,000 or 1.25 times the loan balance. On a loan above $1 million, 1.25 times the loan is larger than $1,000,000, so the $1,000,000 figure is the one that applies. Where asset-derived income is your only income, you also need at least $250,000 in liquid assets.
If you have documented income too, the depletion path can supplement it with asset-derived income up to a 45% debt-to-income ratio. When assets supplement income this way, the minimum-assets rule is waived. That helps a semi-retired borrower who still draws some consulting or rental income.
Which Assets Count (and Which Do Not)
Each path counts a different share of each balance, and some assets do not count at all. Name the path every time you read a number. The percentages below are the share that counts, and the rest is the part that does not.
| Asset | Qualifier path counts | Depletion path counts |
|---|---|---|
| Brokerage accounts | 100% | 80% (securities) |
| Certificates of deposit | 100% | 100% |
| Money market, savings | 100% | 100% (cash accounts) |
| Retirement accounts | 90% under 59½, 100% at 59½ or older | 70% at any age |
| Real-estate equity | Not a listed category | 60% |
Two details are easy to miss. On the qualifier path, accounts combine, so you can mix brokerage, savings and retirement balances toward the loan amount. On the depletion path, a 20% share of securities and a 30% share of retirement accounts fall out of the calculation before the 60-month division.
Several items are not eligible on the depletion path at all. They 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. That rule has no partial credit. If you own a closely held business, the route is documented liquid assets. A sale or buyout converted to a seasoned cash balance works, as do cash, public securities and retirement accounts at the percentages above.
Cryptocurrency, precious metals, collectibles and pledged or borrowed funds are not published as eligible on either path. Convert them to cash in a regulated account and let the lender review the source of the money. A business account counts only to the extent of your ownership share, and only once the funds sit in an eligible account.
The Circularity Rule: Cash-Out Cannot Qualify Itself
Cash-out proceeds never count as qualifying assets on the depletion path. You cannot pull money out of the house and then use that money to prove you can afford the bigger loan. The assets must already exist in your accounts when you apply.
The same logic applies to reserves and to double-counting. A dollar that sits in your qualifying pool cannot also be the cushion the lender wants left over. On the qualifier path, no reserves are required at or below 75% loan-to-value, and above that the lender sets them. The depletion path has no published reserve months. Even so, plan for liquidity outside the loan, because underwriters look at what you keep, not just what you borrow.
Seasoning, Credit, and What Underwriters Check
Seasoning is how long your money has sat in an account before you apply. On the qualifier path, you need 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 a most recent statement within 45 days.
Funds from the sale of a business, an inheritance or a legal settlement are excused from that depletion-path seasoning. That matters for founders and heirs. You still document where the money came from, and large or unexplained deposits get questions.
On credit, the qualifier path has a 600 minimum score. The depletion path follows the lender’s score and loan-amount matrix, so a larger loan can mean a stricter requirement. A first-time investor on the depletion path needs a 700 score. Housing history is reviewed at 0x30x12, and one 30-day late in the last twelve months is considered case by case. Multiple bankruptcies are not eligible, and a housing event needs 4 years of seasoning on the depletion path.
None of this is an approval. These are program parameters through select lenders, subject to underwriting.
How to Apply, Step by Step
The application order matters more than any single document. Doing steps one and two before anything else saves the most rework.
1. Count your assets by path. Apply the percentages in each table to your current balances. Note which accounts fall out entirely.
2. Ask whether cash-out is allowed on your path. On the depletion path it is published. On the qualifier path, the lender sets the terms, so a broker has to ask.
3. Fix ineligible assets. Convert private-company proceeds, crypto, metals or pledged funds into seasoned cash or public securities. Start seasoning clocks now.
4. Choose the property and occupancy. A principal residence and second home can use either path. An investment property uses the depletion path.
5. Gather statements. Collect two months for each qualifying account on the qualifier path. Collect statements 120 days old plus one within 45 days on the depletion path.
6. Submit the application through a broker. The broker matches your path, leverage and credit to select lenders in the network.
7. Complete the appraisal and title review. The appraisal sets value, and value sets the leverage cap.
8. Answer underwriting conditions. Expect questions on deposits, account ownership and source of funds.
9. Review and sign. On a principal residence or second home, this is a consumer mortgage, so consumer mortgage disclosures apply.
Lenders in the network set their own timing, so do not plan around a schedule until your file is in review.
Where the General Rule Breaks
The rules above hold for most files, but a few situations change the answer.
You are under 59½ with a large retirement balance. On the qualifier path, your 401(k) or IRA counts at 90% until 59½ and 100% after. A birthday can change the total. On the depletion path, retirement accounts count at 70% at any age.
You own a company and the value is in the shares. Privately held stock does not count on either path. A sale or buyout turns it into cash, and on the depletion path sale-of-business funds are excused from the seasoning rule. You still document the sale.
You want to borrow against a rental. Investment property is a depletion-path-only scenario, at up to 60% on a cash-out. The first-time-investor 700 credit requirement applies on that path.
Your loan size crosses a path boundary. A loan above $3,500,000 and up to $4,000,000 fits only the qualifier path. A loan below $125,000 is outside the depletion path.
Your assets look large but sit in the wrong places. A portfolio of non-vested stock units, deferred compensation and private shares can leave you with little usable money. The fix is conversion, not argument.
You have income too. If you have some documented income, the depletion path can supplement it up to a 45% debt-to-income ratio. The minimum-assets rule is then waived.
Primary Home or Rental: Does It Change the Process?
It changes the classification more than the steps. A rental or other investment property is business-purpose collateral. Because these are business-purpose investor loans, they are reviewed differently from a standard owner-occupied mortgage. The CFPB’s Truth in Lending summary treats credit to acquire or improve non-owner-occupied rental property as business-purpose credit. The Federal Register’s ability-to-repay rule says investment-purpose loans are considered business-purpose loans.
A principal residence or second home is a consumer loan, and the consumer disclosures apply. Purpose controls, not the label, so the lender reviews how you will use the proceeds. Business-purpose rental financing that is reviewed on the property’s rent is a different product, called a DSCR loan. This article covers qualifying on your assets.
Key Terms Defined
Asset qualifier path: the path where eligible assets, after the percentages that count, must equal or exceed the entire loan amount.
Asset depletion path: the path that divides usable assets by 60 months to create a monthly qualifying income.
Seasoning: the time funds have sat in your account before you apply.
Loan-to-value (LTV): the loan balance as a percentage of the appraised value.
Debt-to-income (DTI): your monthly debts, including the new housing payment, compared with your qualifying income.
Cash-out refinance: a new, larger mortgage that pays off the old one and returns the difference to you.
Why Files Stall, and What Usually Fixes Them
Most stalled files fall into four groups. The first is assets that do not count, such as private stock or crypto. Convert them to seasoned cash in a regulated account. The second is a leverage gap, where the equity does not support the cash requested. Ask for less cash or a smaller loan.
The third is a pool that is too small after the percentages. Move funds into eligible accounts, add a documented source, or switch from the depletion path to the qualifier path where your totals allow. The fourth is unexplained deposits. Provide the source of any large deposit up front. Underwriters read statements line by line.
Frequently Asked Questions
Do I have to sell my investments to qualify?
No. The lender counts your balances at the percentages that apply, and your accounts stay yours. You document them with statements. The exception is an asset that is not eligible, such as privately held stock, which you would convert to cash first.
Can I use the cash-out as my qualifying assets?
No. You need eligible assets that exist before the loan, and the same dollar cannot serve as both the qualifying pool and the cushion left after closing.
Is this the same as a no-doc loan?
No. Every file is fully underwritten. On the qualifier path you provide no traditional personal-income documentation, pay stubs or employment verification, but you document the assets with statements, and the program reviews credit, the property and the source of funds.
Can I take cash out above $1 million on an investment property?
Yes, on the depletion path, at up to 60% loan-to-value on a cash-out, subject to underwriting. The loan must fall between $125,000 and $3,500,000. You need qualified assets of at least the lesser of $1,000,000 or 1.25 times the loan, and a first-time investor needs a 700 score.
Which path should I choose?
Add your eligible assets at each path’s percentages. If the total covers the loan, the qualifier path works if the lender allows cash-out terms. If it does not, the depletion path converts the same assets into income that must pass the debt-to-income test.
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.
About Lendmire
Lendmire (NMLS# 2371349) is a mortgage broker that arranges asset-based mortgages through select lenders in its wholesale network. It does not lend or underwrite. Its consumer mortgage 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 this article is not a commitment to lend. Scotsman Guide named Lendmire a Top Mortgage Workplace in both 2025 and 2026.
For related reading, see Lendmire’s piece Can You Get Approved for an Asset-Based Cash-Out Refinance Above $1 Million?.
A deeper walk-through of investment-property equity extraction lives in Lendmire’s guide to cash-out refinance on an investment property.
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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 Truth in Lending summary
2. Federal Register, Ability-to-Repay and Qualified Mortgage Standards 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 Using a Brokerage Account to Qualify · Asset-Based Cash-Out Refinance Requirements on a Primary Home · Can You Get Approved for an Asset-Based Cash-Out Refinance Using Retirement Accounts?
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
- Mortgage Loan Originator · NMLS# 1129696 · Verify on NMLS Consumer Access
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- 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.