The Quick Read: Lenders underwrite this loan by documenting your assets instead of your paycheck, then testing the property, your credit, and the leverage. You skip traditional personal-income documentation, pay stubs and employment verification, but the file is fully underwritten and every account is documented with statements. Cash-out is where the two asset paths split sharply, so the path you choose decides what is possible.
- Two paths, one at a time. Assets either cover the whole loan, or they convert into a monthly qualifying income.
- Cash-out is limited on the depletion path. Through select programs it runs up to 60% loan-to-value on a principal residence, second home or investment property.
- Proceeds never count. Cash pulled out of the home cannot be counted as a qualifying asset.
- Privately held company stock is not eligible. It does not count on either path.
- Every figure is subject to underwriting. Programs change, and the lender’s own calculation governs.
What Does “No Income Verification” Actually Mean?
It means the lender does not ask for tax returns, pay stubs or employment verification. It does not mean the lender skips underwriting. Credit, assets, collateral and liens are all reviewed. Lendmire is a mortgage broker, and the files it places through select lenders in its network are built on statements rather than paychecks.
| Skipped | Still required |
|---|---|
| Tax returns | Credit review |
| Pay stubs | Asset statements |
| Employment verification | Appraisal and title review |
| Income documentation (qualifier path) | Payoff of existing liens |
This is why the old “no-doc” label is wrong. Lenders still prove you can repay. They simply prove it from the balance sheet.
Which of the Two Underwriting Paths Fits You?
Pick the asset qualifier path if your eligible assets can cover the entire loan. Pick the asset depletion path if you want assets converted into monthly income. A borrower is qualified on one path at a time, so the figures below never blend.
| Factor | Asset qualifier | Asset depletion |
|---|---|---|
| Core test | Eligible assets equal or exceed the whole loan | Usable assets ÷ 60 months = income |
| Income documented | None | Derived income runs through debt-to-income |
| Refinance leverage | Up to 75% | Up to 80% rate-and-term (residence or second home) |
| Cash-out leverage | Set by lender, not published | 60% on all three property types |
| Loan size | Up to $4,000,000 | $125,000 to $3,500,000 |
All of this is available through select programs and subject to underwriting. Because the qualifier path’s cash-out terms are not published, treat any cash-out on that path as a question for the lender, not an assumption.
The simple decision rule: if your liquid assets exceed the loan, the qualifier path is cleaner. If they do not, depletion may still work, but the new payment must pass the debt-to-income test.
How Does the Underwriting Sequence Run, Step by Step?
Underwriters move through a predictable order. Knowing it lets you prepare the file before the lender asks.
1. Eligibility screen. The lender confirms the property type, occupancy, loan amount and credit score. The qualifier path has a 600 floor, while the depletion path follows the lender’s matrix. A first-time investor on the depletion path needs 700.
2. Asset verification. You submit statements for every qualifying account. The lender confirms ownership and checks for recent large deposits.
3. Seasoning check. The qualifier path wants 60 days and two months of statements per account. The depletion path wants statements at least 120 days old plus the most recent one within 45 days. Funds from a business sale, inheritance or legal settlement are excused from that seasoning.
4. Credit application. Housing history is typically 0x30x12. One 30-day late in the last twelve months is considered case by case. Multiple bankruptcies are not eligible.
5. Path test. On the qualifier path the underwriter adds credited assets and compares the total to the loan. On the depletion path the underwriter converts usable assets to income and runs debt-to-income.
6. Collateral review. An appraisal sets value, and the lender applies the cash-out leverage cap.
7. Lien and title review. Existing liens are paid off from the new loan, which reduces the net cash you receive.
8. Final decision. The lender approves, conditions or declines. The broker’s role ends at shopping and matching the file.
Because this is a consumer mortgage on a residence or second home, standard consumer disclosure rules apply on those files.
How Do Lenders Count Each Type of Asset?
Lenders count only a share of each balance, and the share depends on the path. The part that does not count is the haircut. Here is how the credit works on each path, subject to underwriting.
| Asset | Qualifier path counts | Depletion path counts |
|---|---|---|
| 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 listed | 60% |
Privately held company stock is not an eligible asset on either path. Neither are custodial accounts, deferred compensation, escrow accounts, foreign funds, stock options or non-vested restricted stock units on the depletion path. Cryptocurrency, precious metals and collectibles are not published as eligible either. The documented route for those holdings is converting them to a seasoned cash balance in a regulated account, with the source reviewed.
A founder holding private shares has one workable route. Sell or convert the stock, let the proceeds season, and qualify on the cash.
What Do the Numbers Look Like in Practice?
Here are two illustrations, both using the program’s own percentages. The lender’s calculation governs.
Assets cover the loan (qualifier path). An $800,000 loan is backed by $330,000 in brokerage accounts (100% counts, so $330,000), $300,000 in a 401(k) held under age 59½ (90% counts, so $270,000) and $200,000 in savings (100% counts, so $200,000). Usable assets total $800,000, which equals the loan, so the borrower is reviewed on assets alone, with no income documented.
Assets become income (depletion path). A borrower holds $1,500,000 in securities, where 80% counts for $1,200,000, plus $300,000 in cash, where 100% counts for $300,000. Usable assets are $1,500,000. Dividing by 60 months gives $25,000 of monthly qualifying income. That income must then carry the housing payment and other debts through the debt-to-income test.
The circularity trap. Suppose a borrower takes cash out and then counts that cash toward the assets needed to qualify. Lenders block this. Cash-out proceeds never count as qualifying assets, because the borrower would be qualifying on money borrowed against the very loan being approved. Your qualifying balances must exist before the cash-out loan funds.
Where Does Cash-Out Change the Rules?
Cash-out is the tightest part of the program. On the depletion path, leverage drops to 60% on a cash-out refinance, against 80% on a purchase or rate-and-term refinance for a residence or second home. Investment property runs 65% on a purchase or rate-and-term and 60% on cash-out. Business-purpose investment loans follow different disclosure rules than consumer ones. As the Federal Register text on the Ability-to-Repay rule explains, that rule applies to consumer-purpose mortgages, which is why investment-purpose structures are treated separately.
The qualifier path allows up to 75% on a refinance, but whether cash-out proceeds are allowed there, and at what leverage, is set by the lender and not published. Ask before assuming.
Depletion borrowers also face minimums. Qualified assets must be at least the lesser of $1,000,000 or 1.25 times the loan balance. They must also never fall below $250,000 liquid when asset depletion is the only income source. Asset income can supplement documented income up to a 45% debt-to-income ratio, and in that case the minimum-assets rule is waived.
Experience across the network shows that cash-out files tend to fail on lien payoff math. A large existing balance at 60% leverage can leave little or no net cash. Run that arithmetic before you apply.
How Does a Broker Compare This to Other Options?
The right program depends on how you actually earn and hold wealth. A broker that shops several wholesale lenders can match the scenario instead of forcing one product.
| Option | Who it fits |
|---|---|
| Asset-based mortgage | Cash-heavy, income-light borrowers |
| Bank statement program | Borrowers who document income through deposits |
| DSCR loan | Business-purpose rental financing |
| Home equity line | Borrowers keeping an existing first lien |
Under the CFPB’s Truth in Lending reference, credit for a non-owner-occupied rental is generally treated as business purpose. That is why investor financing follows its own track. If you are purely buying rentals, DSCR is usually the better fit. If your equity sits in a portfolio and your income is thin, the asset-based path deserves a look. Lendmire’s asset-based mortgage program page outlines both paths.
Why Do Files Get Conditioned or Declined?
Most problems are fixable before submission. Common ones follow.
- Unseasoned funds. Recent large deposits need a documented source. Gather proof early.
- Ineligible assets. Private stock, options and unvested shares do not count. Convert them to cash well ahead of time.
- Retirement account assumptions. Under 59½, the qualifier path credits 90%, and the depletion path credits 70% at any age.
- Thin margin. If credited assets land just under the loan, a small balance change sinks the file.
- Lien payoff surprises. The payoff reduces proceeds, so confirm the net figure first.
- Credit events. A housing event needs four years of seasoning on the depletion path.
Lendmire’s piece Asset-Based Cash-Out Refinance Requirements With No Income Verification goes deeper on documents.
Key Terms Defined
- Asset qualifier path: The route where eligible assets, after credit percentages, equal or exceed the entire loan.
- Asset depletion path: The route that divides usable assets by 60 months to create qualifying income.
- Haircut: The part of an asset’s balance that lenders do not count.
- Seasoning: The length of time funds have sat in your account before you apply.
- Cash-out refinance: A new mortgage larger than the old one, with the difference paid to you after payoff.
Is This the Right Fit? A Quick Self-Check
Ask yourself these questions before applying.
1. Are my balances large while my documented income is small?
2. Do my eligible assets, after the percentages above, cover the loan, or can they produce enough income?
3. Has every account been seasoned, with statements ready?
4. Does 60% cash-out leverage still leave me meaningful net cash after payoff?
5. Am I relying on any ineligible asset, such as private stock?
If most answers are yes, the structure may suit you. Tax treatment varies; consult a qualified professional.
Frequently Asked Questions
Does privately held company stock count toward qualifying?
No. The route is to sell or convert the shares, let the proceeds season in a regulated account, and qualify on the cash, subject to underwriting.
Can I use cash-out proceeds to qualify for the same loan?
No. Cash-out proceeds never count as qualifying assets. Your qualifying balances must be in place and documented before the loan funds.
Do I need tax returns or pay stubs?
Not on these programs. You skip traditional personal-income documentation, pay stubs and employment verification, but you do provide asset statements, and the file is fully underwritten.
Do I have to sell my investments?
No. Assets are counted at their eligible percentages and stay in your accounts. The lender reviews them, and you keep them.
Can I use this for an investment property?
Only on the depletion path, where the loan is business-purpose. Investment property runs up to 65% on a purchase or rate-and-term and 60% on cash-out, through select programs.
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. Many borrowers also read Lendmire’s guide Asset-Based Cash-Out Refinance Lenders When traditional Income Verification Is a Barrier before starting.
Investors weighing their equity options can start with 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
1. Federal Register – CFPB Ability-to-Repay final rule
2. CFPB Truth in Lending Act reference
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 Lenders With Low Documentation Requirements · Asset-Based Cash-Out Refinance Lenders When Traditional Income Verification Is a Barrier · Best Asset-Based Cash-Out Refinance Program on One Income
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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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.