Terms vary by lender guidelines, property type, leverage, credit profile, and full file review.
The Quick Read: Asset-based financing is reviewed around what you hold, bank statement financing is reviewed around what moves through your accounts, and a 660 score clears the published 600 floor on the asset qualifier path, while the asset depletion path and bank statement loans leave leverage to each lender’s matrix. Here, asset-based means qualifying on eligible assets. It does not mean the property-rent route. Exact terms depend on the lender’s guidelines, property type, leverage, and a full review of the borrower’s file.
- Asset-based, qualifier path: eligible assets must cover the entire loan. No employment or income is documented.
- Asset-based, depletion path: usable assets are divided by 60 months into qualifying income, which then runs through the debt-to-income test.
- Bank statement: 12 to 24 months of deposits are averaged into income, after non-income deposits come out.
- At 660: the score is workable on both routes. It is rarely the deciding factor. Which side of your file is stronger decides it.
- Cash-out: proceeds never count as qualifying assets on any asset-based path.
The Honest Answer: Who Each Option Is Really For
Asset-based fits the borrower with large balances and thin documented income. Think retirees, someone who sold a business, an heir, or a household living off a portfolio. Bank statement fits the borrower with strong, steady deposits and few liquid assets. That is usually a self-employed owner whose tax returns understate cash flow.
A 660 score does not push you toward either one. It sits above the 600 floor on the asset qualifier path. On the asset depletion path and on bank statement loans, the lender’s matrix decides how much leverage a 660 earns. One caution on the depletion path: a first-time investor needs a 700 score, so a 660 does not clear that route for an investment property.
Neither route is a shortcut around underwriting. Every file is fully underwritten. The asset-based programs skip traditional personal-income documentation, pay stubs and employment verification. They do not skip statements. Bank statement loans are described as non-QM, alternative-documentation loans in HousingWire’s non-QM guide. The documentation is still real.
Side-by-Side
The asset-based column shows the parameters of the asset-based mortgage program Lendmire arranges through select lenders, subject to underwriting. The bank statement column shows published industry norms, which vary by lender. Lendmire’s wholesale network places both kinds of loans.
| Factor | Asset-Based | Bank Statement (industry norms) |
|---|---|---|
| Review basis | Assets cover the loan, or assets become income | Deposits averaged into monthly income |
| Documentation | Asset statements, no traditional personal-income documentation or pay stubs | 12 to 24 months of statements, sometimes a CPA letter or P&L |
| Cash-out leverage | Depletion path: 60% on a cash-out | Set by lender, often tied to credit tier |
| Property types | Principal residence, second home; investment property on depletion path only | Primary, second home and investment commonly offered |
| Entity vesting | Individual borrower is the norm; entity vesting on investment property depends on the lender | Often written for individuals; LLC rules vary |
| Reserves | Qualifier path: none at 75% LTV or below; depletion path: none published | Commonly lender-set |
| Role of a 660 score | Above the 600 qualifier floor; depletion follows lender matrix | Usually shapes leverage and expense-factor treatment |
| Main hurdle | Enough seasoned, eligible assets | Deposits that are steady, traceable and income-eligible |
Two notes on the table. First, on the asset qualifier path, the cash-out proceeds allowed and the leverage that applies to them are set by the lender and are not published, so do not plan around a figure. Second, the asset qualifier path is published at up to 75% loan-to-value on a refinance of a principal residence or second home, but that is the refinance ceiling, not a cash-out promise.
What a 660 Score Changes on Each Path
On the asset qualifier path, 660 is 60 points above the published 600 floor. The score still matters, but the binding test is whether eligible assets equal or exceed the whole loan amount. The depletion path follows the lender’s score and loan-amount matrix, so a 660 may land in a tier with lower leverage than a 720 would. Housing history is part of that review. The program looks for 0x30x12, and a single 30-day late in the last twelve months is considered case by case.
A bank statement loan is a different program with its own lender-set rules, and how a 660 affects leverage there varies by lender. Some lenders will trade a lower score for lower leverage. That trade is lender-specific, which is why shopping several programs matters more at 660 than at 760.
Here is the practical read. At 660, a thin file on either side shows up quickly in the leverage you are offered. A strong file on either side keeps the score from being the headline.
When Asset-Based Is the Better Fit
Choose asset-based when your balances are large and your documented income is small, uneven or gone. The two paths work differently, so name the one you are on.
Asset qualifier path. Eligible assets, after the credit percentages below, must equal or exceed the entire loan. No employment or income is documented. Brokerage accounts, certificates of deposit, money market and savings all count at 100%. Retirement accounts count at 90% under age 59½ and at 100% from 59½ on. Accounts combine.
Here is an illustration only, subject to underwriting. Take an $800,000 loan with $330,000 in brokerage accounts (counts at 100%, or $330,000), $300,000 in a 401(k) under 59½ (counts at 90%, or $270,000) and $200,000 in savings (counts at 100%, or $200,000). That is $800,000 of usable assets, and the file is reviewed on assets alone. The lender’s own calculation governs.
Asset depletion path. Usable assets are divided by 60 months. The result is qualifying income that must carry the housing payment and other debts through the debt-to-income test. Cash and certificates of deposit count at 100%. Securities count at 80%, retirement accounts at 70% at any age, and real-estate equity at 60%. Take $1,500,000 in securities (counts at 80%, or $1,200,000) plus $300,000 in cash (counts at 100%, or $300,000). That is $1,500,000 usable, or $25,000 of monthly qualifying income after dividing by 60. Again, illustrative only.
The depletion path has minimums. Qualified assets must be at least the lesser of $1,000,000 or 1.25 times the loan balance. They can never be below $250,000 liquid when depletion is the only income source. Loans run from $125,000 to $3,500,000 on this path.
Cash-out on the depletion path is capped at 60% loan-to-value, whether the property is a principal residence, a second home or an investment property. Cash-out proceeds never count as qualifying assets.
What does not count. Privately held company stock is not an eligible asset on either path. A founder or shareholder qualifies through documented liquid assets: seasoned proceeds from a sale or buyout, cash, public securities and retirement accounts at the percentages above. Cryptocurrency, precious metals, collectibles and pledged or borrowed funds are not published as eligible either. The route is converting them to a seasoned cash balance in a regulated account, with the source reviewed by the lender.
Seasoning. The qualifier path wants 60 days of seasoning and two months of statements per qualifying account. The depletion path wants statements at least 120 days old at application, plus the most recent statement within 45 days. Funds from a sale of a business, an inheritance or a legal settlement are excused from that seasoning on the depletion path.
You can read how Lendmire frames these programs on its asset-based mortgage program page. The program is available in 16 states: Alabama, California, Colorado, Florida, Georgia, Indiana, Michigan, Montana, New Mexico, North Carolina, Ohio, Pennsylvania, Tennessee, Texas, Virginia and Washington.
When Bank Statement Is the Better Fit
Choose bank statement when your income is real, steady and visible in your accounts, but your liquid assets are modest or tied up in the business. This is the usual self-employed profile. Tax returns show write-offs. Deposits show the actual business.
Per HousingWire, the file uses 12 to 24 months of personal or business statements, and an expense factor may apply to business accounts. The underwriter strips out deposits that are not income. Transfers between your own accounts come out. So do one-time sale proceeds. What remains, less any expense factor, is averaged over the months reviewed into monthly income. That income is then compared to the new mortgage and every other monthly debt.
Three things make or break the file.
1. Steady deposits. Declining or lumpy deposits are a flag. A lender averaging 24 months will see the dip.
2. Clean account structure. Mixed personal and business accounts need transfers netted out so income is not counted twice.
3. Debt-to-income room. Each financed property adds to the obligations side. Bank statement capacity runs out as you stack loans.
Bank statement also fits when you want to keep your portfolio intact. You are not asked to show assets that cover the loan or to run a 60-month division. You are asked to show income through deposits.
Cash-Out on a Rental: One Paragraph on Business Purpose
Business-purpose investor loans are reviewed differently from a standard owner-occupied mortgage. The CFPB’s Regulation Z rule on business purpose treats credit to acquire a rental of more than two units as business purpose. It carves out owner-occupied homes of two units or fewer if you expect to occupy the property more than 14 days in the coming year. The ability-to-repay rule, per the Federal Register, applies to loans made primarily for personal, family or household purposes. In practice, a cash-out on your own home is a consumer loan on either route. A cash-out on a true rental is treated differently, and on the asset-based side that means the depletion path only.
Same Borrower, Two Files
Run a hypothetical borrower with a 660 score through each route.
The self-employed owner. Strong, steady business deposits. Modest brokerage balances. Retirement accounts the owner does not want to drain. On the asset qualifier path, assets must cover the whole loan, so the file likely falls short. On the depletion path, assets would need to meet the minimums. Bank statement is the natural route here, with leverage set by the lender’s matrix for a 660.
The cash-rich retiree. Large brokerage and cash balances. Little documented income. Bank statement has no deposits to average. The asset qualifier path works if usable assets equal or exceed the loan. The depletion path works if the derived income carries the payment within the debt-to-income test. The 660 score clears the 600 qualifier floor.
The hybrid. Some deposits, some assets. This borrower can often be run both ways. Asset-derived income can also supplement documented income up to a 45% debt-to-income ratio on the depletion path, and when it supplements, the minimum-assets rule is waived. A broker comparing programs earns its keep on exactly this kind of file.
Key Terms Defined
- Asset qualifier path: the asset-based route where eligible assets, after credit percentages, equal or exceed the whole loan and no income is documented.
- Asset depletion path: the route where usable assets divided by 60 months become qualifying monthly income.
- Bank statement loan: a non-QM loan that averages eligible deposits from 12 to 24 months of statements into income.
- Expense factor: a reduction applied to business-account deposits to estimate what the owner actually keeps.
- Seasoning: the time funds must sit in an account before they count.
- Haircut: the part of an asset balance that does not count toward qualifying.
When Neither Fits
Neither route works when assets are too thin and deposits are too uneven. Some files land in a different program entirely. A rental that covers its own payment may qualify on property income instead. A short-term bridge may make sense for a quick fix, and a score of 660 sometimes means waiting a few months to improve credit before applying.
The honest broker answer is that the best program for your situation depends on property type, credit profile, leverage need and documentation. Shopping several wholesale lenders is how a borrower finds the match.
Document Checklist
Asset-based:
- Two months of statements for each qualifying account (qualifier path), or statements 120 days old plus one within 45 days (depletion path)
- Source documentation for any recent large deposit
- Sale, inheritance or settlement paperwork where funds are excused from seasoning
- Credit and housing history
Bank statement:
- 12 or 24 months of personal or business statements
- A list of transfers and one-time deposits, so they can be netted out
- A CPA letter or profit-and-loss statement if the lender asks
- Appraisal and property documents for the loan-to-value test
The Verdict
Pick asset-based if your wealth sits in accounts and your paychecks do not. Pick bank statement if your wealth shows up as steady deposits and your assets are modest. At 660, both are workable on paper. The leverage you get depends on the lender’s matrix, and the depletion path adds a 700 requirement for first-time investors on investment property.
If your file could go either way, ask for both options to be run. The difference between them is often a question of which documents you already have, not which loan is better.
Frequently Asked Questions
Does a 660 credit score qualify for an asset-based cash-out refinance?
A 660 clears the published 600 minimum on the asset qualifier path. Cash-out proceeds and leverage on that path are set by the lender and not published. On the depletion path, the lender’s score and loan-amount matrix applies, with 60% loan-to-value on a cash-out. Approval is never promised and every file is underwritten individually. Every figure here varies by lender and program — guidelines, property type, leverage, and credit profile all apply.
Can cash-out proceeds count as assets to qualify?
No. Cash-out proceeds never count as qualifying assets on any asset-based path. Assets must already be in your accounts, seasoned and documented.
Does a bank statement loan work if my deposits are uneven?
It can, but uneven or declining deposits are a flag. The lender averages eligible deposits over 12 to 24 months. One-time deposits and transfers are taken out of that average, so the average may fall. A lender may also apply an expense factor on business accounts.
Can I use privately held company stock to qualify?
No. After a sale or buyout, the proceeds can count once they are seasoned cash or other eligible assets.
Are these loans no-documentation loans?
No. Both are fully underwritten. Asset-based files document balances with statements and skip traditional personal-income documentation, pay stubs and employment verification. Bank statement files document deposits with statements and may add a CPA letter or profit-and-loss statement.
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. Programs change, terms are subject to underwriting. This is 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. HousingWire, Non-QM loans guide
2. CFPB, Regulation Z, section 1026.3
3. Federal Register, Ability-to-Repay and Qualified Mortgage Standards
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 on One Income · Asset-Based Cash-Out Refinance Lenders on a Condo
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.