The Quick Read: The two options test different things, because an asset-based file qualifies the borrower on documented balances while a bank statement file qualifies the borrower on deposit history, so the better fit follows the shape of the borrower’s money. The 75% figure is a ceiling to test each file against, not a promise on either path.
- Asset-based files rest on statements for eligible accounts. They do not rest on tax returns, pay stubs or employment verification.
- Bank statement files turn 12 or 24 months of deposits into income, and the new payment then carries the borrower’s other debts.
- On Lendmire’s asset-based programs, 75% is the published refinance ceiling on the asset qualifier path, but the lender sets cash-out terms there and does not publish them. The asset depletion path caps cash-out at 60%.
- Every figure here is subject to underwriting and lender guidelines. None of it is a commitment to lend. Terms depend on the lender’s guidelines, the property type, the leverage, and a full review of the credit profile.
The Honest Answer First
Asset-based fits the borrower with large balances and thin documented income. That includes retirees, business sellers, and people living on a portfolio. Bank statement fits the borrower with strong monthly deposits and messy tax returns, such as a self-employed owner whose returns understate cash flow.
Neither path is better in the abstract. A seller with $2 million in brokerage accounts and no paycheck looks weak on deposits and strong on assets. A contractor with steady deposits and modest savings looks the opposite.
The title also asks about 75% loan-to-value, and that needs a plain statement. On the asset qualifier path, 75% is the published ceiling for a refinance. Whether cash-out proceeds are allowed on that path, and at what leverage, is set by the lender and is not published. On the asset depletion path, cash-out is capped at 60%. Bank statement leverage varies by lender, credit and state, so treat 75% as a ceiling to test, not an assumption.
Side-by-Side
The asset-based column shows the programs Lendmire places. The bank statement column shows published industry norms, which vary by lender.
| Factor | Asset-based (Lendmire network) | Bank statement (industry norms) |
|---|---|---|
| Review basis | Eligible assets, or assets turned into income | Deposits averaged into monthly income |
| Income documented | None on the qualifier path | Self-employment proof, deposit history |
| Statement window | 2 months per account, or 120-day plus 45-day rule | Commonly 12 or 24 months |
| Property types | Primary, second home; investment on depletion path | Varies by lender |
| Entity vesting | Not published; confirm per program | Borrower-centric; confirm per program |
| Reserves | Qualifier path: none at or below 75% LTV on a refinance, set by the lender above that; depletion path: no published reserve months | Varies by lender |
| What can bind first | Asset total or derived income | Deposits, expense factor, total debts |
Key Terms Defined
Cash-out refinance: a new loan that pays off the old one and returns the leftover equity to the borrower.
Loan-to-value (LTV): the new loan balance divided by the appraised value.
Asset qualifier path: eligible assets, after the credit percentages, must equal or exceed the entire loan amount, and no employment or income is documented.
Asset depletion path: usable assets divided by 60 months become qualifying income, which then runs through the debt-to-income test.
Bank statement income: monthly income built from eligible deposits over a set window.
Expense factor: the share of business deposits treated as operating cost. It varies by lender and can be supported by a CPA.
How Each Path Qualifies the File
Asset qualifier path. Brokerage, certificate of deposit, money market and savings balances count at 100%. Retirement accounts count at 90% under age 59½ and 100% after. Accounts combine. Take an $800,000 loan with $330,000 in brokerage accounts (100% = $330,000), $300,000 in a 401(k) under 59½ (90% = $270,000), and $200,000 in savings (100% = $200,000). That counts $800,000 of usable assets, which covers the loan on assets alone. Seasoning is 60 days, with two months of statements per account. The credit floor is 600, subject to underwriting.
Asset depletion path. Cash and certificates of deposit count at 100%, securities at 80%, retirement accounts at 70%, and real-estate equity at 60%. Take $1,500,000 in securities (80% = $1,200,000) plus $300,000 in cash (100% = $300,000). That is $1,500,000 usable, divided by 60 months, which gives $25,000 of monthly qualifying income. That income must then carry the housing payment and other debts through the debt-to-income test. Qualified assets must be at least the lesser of $1,000,000 or 1.25 times the loan, and never below $250,000 liquid when depletion is the only income source. The lender’s credit matrix sets the score requirement.
Bank statement. Published industry norms describe the same sequence. The lender totals eligible deposits and strips out transfers and one-off credits. On business accounts, it applies an expense factor. It then averages the result over the window. The new payment is then weighed against the borrower’s personal debts. An appraisal still sets value and the LTV test. Lenders differ on window length, expense factor and leverage.
A borrower sits on one asset path at a time, and the figures for the qualifier path and the depletion path never blend.
What Counts, and What Does Not
On the depletion path, eligible assets count at the percentages above. Several asset classes are not eligible there, including 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. A founder’s route is documented liquid assets. That means seasoned proceeds from a sale or buyout, cash, public securities, and retirement accounts at their percentages. Cryptocurrency, precious metals, collectibles and pledged or borrowed funds are not published as eligible on either path. The documented route is converting them to a seasoned cash balance in a regulated account, with the source reviewed by the lender.
Bank statement files have their own screening. Large one-time deposits draw questions. Transfers between the borrower’s own accounts do not count as income.
When Asset-Based Is the Better Fit
Choose asset-based when balances are large and documented income is small or irregular. The typical borrower is a retiree, a business seller, an inheritance or settlement recipient, or an early-retired professional.
- Deposits understate the borrower. A household living off a portfolio may show few payroll-style deposits. Brokerage and savings balances tell the real story.
- Assets can cover the loan outright. On the qualifier path, no income is documented at all, and the lender’s ability-to-repay review rests on the assets.
- Operating income may have stopped. A business seller whose proceeds sit in an account has no recent operating deposits. A seasoned cash balance is the documented route.
- The home is a principal residence or second home. Both asset paths allow these occupancies. Investment property is available only on the depletion path, at lower leverage.
The tradeoffs are real. The depletion path needs a large asset base. Its cash-out leverage is 60% for a principal residence, a second home or an investment property alike. On investment property, a purchase or rate-and-term refinance runs at 65%, and a first-time investor needs a 700 score. Cash-out proceeds never count as qualifying assets, so a borrower cannot borrow against the home and count that cash toward the same file.
Lendmire’s asset-based mortgage programs are placed through select lenders, and every file is fully underwritten. Assets are documented with statements, so this is not a no-documentation loan.
When Bank Statement Is the Better Fit
Choose bank statement when deposits are strong and balances are modest. The typical borrower is a self-employed owner whose tax returns show heavy write-offs but whose accounts show steady revenue.
- Cash flow is the strength. A business that deposits consistently month after month can document income without liquidating anything.
- The asset base is small. The depletion path needs a large qualified-asset floor, and many working owners reinvest rather than hold seven figures in cash.
- The business has seasonality. A longer window, commonly 24 months, smooths uneven months.
- Personal accounts are clean. Business accounts take an expense factor, which varies by lender and may be supported by a CPA or profit-and-loss statement.
The tradeoffs run the other way. The borrower is underwritten on personal income, so the new payment stacks on existing debts. Debt-to-income can cap later cash-outs. Deposit files need all pages of every statement, and large irregular deposits need explanations. Leverage and property eligibility vary by lender, and no single published figure applies across them.
Same Property, Different Constraint
Run one house through both options and different limits bind first. At a 75% test, the loan is capped by value. On the qualifier path, the asset total must also cover the whole loan, so a thin balance sheet binds before equity does. On the depletion path, derived income must carry the payment, and the 60% cash-out cap is lower than 75%. The exact numbers vary by lender and program and follow a full review of property, leverage, and credit.
A low appraisal hits every path the same way. Value falls, the allowed loan falls, and cash out shrinks. Closing costs and the payoff come out of the gross loan before the borrower sees any cash. A 75% ceiling limits the loan balance, not net proceeds.
The Business-Purpose Wrinkle
A borrower refinancing a principal residence or second home is taking a consumer-purpose loan, and consumer mortgage disclosures apply. Rentals work differently. Federal rule text deems credit for non-owner-occupied rental property to be business purpose, per CFPB Regulation Z §1026.3. Owner-occupied rentals depend on unit count.
Business purpose does not mean no rules. A law-firm analysis from Hunton Andrews Kurth cautions that state licensing and other laws can still apply. For a rental where the property’s rent is the story, business-purpose DSCR financing is the usual route, and it sits outside both options compared here.
Frequently Asked Questions
Can I use both paths on the same refinance?
No. A borrower is reviewed on one asset path at a time, and the qualifier-path and depletion-path figures never blend. Bank statement income is a separate program with its own file. A broker can screen a scenario against each option and place it with the program that matches the documents.
Does 75% loan-to-value mean I receive 75% of my home’s value?
No. The cap applies to the new loan balance. The payoff of the existing mortgage, closing costs and any reserves come out of that balance first. What remains is the cash. On Lendmire’s asset-based programs, cash-out on the depletion path is capped at 60%, and cash-out leverage on the qualifier path is set by the lender.
Can I use privately held company stock to qualify?
No. Privately held company stock is not an eligible asset on either asset path. A sale or buyout converted into a seasoned cash balance, plus public securities and retirement accounts at their percentages, is the documented route.
Is an asset-based loan the same as a no-doc loan?
No. Every file is fully underwritten. The borrower provides no traditional personal-income documentation, pay stubs or employment verification on the qualifier path, but statements for each qualifying account are required. On the depletion path, usable assets are converted into income and tested against debt-to-income.
Which option suits a self-employed borrower with large savings?
Either can work, and the deciding factor is which number is bigger. A borrower with a large balance relative to the loan may fit the asset path. One with strong deposits and modest savings may fit bank statement. A broker that shops multiple wholesale lenders can compare both against the same statements.
The Verdict
The choice is not a ranking. It is a match between the documents and the program. Large balances point toward asset-based. Strong deposits point toward bank statement. A borrower with both should compare the leverage each option allows, the debt-to-income load, and the cost of documenting each file.
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.
For how equity extraction works on an investment property, see Lendmire’s guide to cash-out refinance on an investment property.
About Lendmire
Lendmire, NMLS# 2371349, is a mortgage brokerage with consumer lending licenses in 16 states. Bank statement, P&L-only, 1099-only and asset-based mortgages are arranged through wholesale lending partners for borrowers whose tax returns understate their income, and each application is reviewed individually by the lender. 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
2. Hunton Andrews Kurth, “Beware of Business Purpose”
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 to Qualify and Apply for an Asset-Based Cash-Out Refinance Below Minimum Loan Amount · Asset-Based Cash-Out Refinance Requirements on a Primary Home · Asset-Based vs Bank Statement Cash-Out Refinance With a 660 Credit Score
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.