The Quick Read: The amount is the smallest of six limits: the lane’s leverage cap, the combined leverage cap, the lane’s loan size, the income ratio, the reserve requirement, and the credit score minimum. For a retiree living on a portfolio, the income ratio is usually the one that binds. The lender turns your eligible assets into a monthly income figure on paper, adds any pension or Social Security, and checks the new payment against a ratio ceiling. All of it is subject to lender guidelines and full file review, and none of it is a commitment to lend.
Key Takeaways
- Six limits cap the loan, and the lowest one wins.
- Assets can count as income, but only after the lender converts them with its own formula.
- Cash-out sits at lower leverage than a purchase on the same lane.
- Money pulled out in the loan does not count as your reserves.
- A bigger loan can mean a stricter file, not just a bigger number.
The Short Rule: Six Limits, Smallest Wins
A jumbo cash-out is not sized by one number. Several tests run side by side, and whichever produces the lowest loan sets your ceiling. Home equity is only one of them, and for a retiree without a paycheck the income ratio can matter more.
Jumbo cash-out estimate
Enter the value, the balance, and the cash wanted; choose the occupancy and the structure; the lanes, the payment, and the reserves follow.
Editable benchmark: 7.18% as of November 5, 2026 · Freddie Mac 30-year average via FRED®. A conventional market reference, not a jumbo cash-out refinance quote.
Illustrative starting assumptions: a $2,000,000 home value in the jumbo range, a $1,000,000 current balance, a principal residence on a thirty-year fixed structure at the current Freddie Mac conforming benchmark, and property taxes and insurance estimated at typical national rates. Every field is editable.
Illustrative estimate only — not a Loan Estimate, approval, quote, or commitment to lend. The rate field carries the weekly Freddie Mac thirty-year conforming benchmark, a market reference and not a jumbo cash-out refinance quote; a jumbo loan is priced by the lender at lock. The lanes shown are the wholesale cash-out lanes behind this page as of the snapshot date; the calculator reads each lane’s leverage, loan maximum by occupancy, cash-in-hand cap, and reserves as the lane table states them, and a Lendmire loan officer confirms the lane on the file. The cash available is the loan the lane allows less the balances paid off, before closing costs, which are not included; on most lanes a jumbo cash-out begins one dollar above the conforming limit for the county, and two lanes start at a stated dollar floor instead. The HELOC line is the line program’s combined loan-to-value ceiling applied to the same value and balance. Taxes and insurance are editable estimates. Licensed in sixteen states for consumer mortgages.
Here is how the six tests line up across the wholesale jumbo lanes. Figures are typical of the programs described here and subject to lender guidelines.
| Limit | What it caps | What to know |
|---|---|---|
| Leverage | Loan vs. appraised value | Headline lane tops out at 90% LTV; cash-out sits lower |
| Combined leverage | Loan plus other liens | Several lanes reach 89.99% CLTV; the rest stop at 80% |
| Loan size | Total amount | Up to $5,000,000 on the largest lanes; a cash cap on two lanes |
| Income ratio | Payment vs. income | 50% on fixed lanes, 45% adjustable, 43% on interest-only lanes |
| Reserves | Cash left after closing | Counted in months of the full payment; rises with the amount |
| Credit | Decision score | 660 on the headline lane |
Two labels matter. LTV (loan-to-value) is the loan divided by the home’s value. CLTV (combined loan-to-value) adds any other loans secured by the home. The 90% figure is the LTV ceiling. The 89.99% figure is the CLTV on the lanes that reach it. They are not the same number.
What Makes a Loan Jumbo, and What Cash-Out Means
A jumbo loan is any loan above the county’s conforming limit. That limit is the largest loan Fannie Mae and Freddie Mac can buy. It changes yearly and varies by county, so the same loan can be jumbo in one county and conforming in the next. The FHFA Conforming Loan Limits page is where the official county figures live. Check it for your county rather than trusting a number from an old article.
A cash-out refinance replaces your current mortgage with a new, larger one. You keep the difference, minus costs. If the home is paid off, the whole new loan is cash out.
Jumbo loans are not bought by the agencies, so each wholesale lender writes its own rules. That is why they can accept things the agencies won’t. Lendmire’s jumbo cash-out refinance program page lays out the lanes. Lendmire is a mortgage broker. It matches your file to a lane, and the wholesale lender reviews it.
How the Loan Is Underwritten, Step by Step
Here is the sequence a retiree’s file follows.
1. Loan type is set. Your requested balance is compared to the county limit. Above it, jumbo rules apply.
2. Value is established. An appraisal sets the number everything else hangs on. Above a lane’s threshold amount, two appraisals are required.
3. Leverage is tested. The new loan, plus any other liens, must fit under the lane’s cash-out cap. That cap is lower than the purchase cap.
4. Income is built. Pension, Social Security and required distributions count as documented income. Portfolio assets are converted into imputed monthly income.
5. The ratio is run. The new payment plus your other monthly debts, divided by qualifying income, must sit under the lane’s ceiling. That is 50% on fixed lanes, 45% on adjustable, 43% on interest-only.
6. Reserves are checked. You must hold a set number of months of the full payment in liquid assets after closing. The number rises with the loan amount.
7. Credit is reviewed. The headline lane uses a 660 decision score. Other lanes set their own floors.
Step 4 is where retirees differ from salaried borrowers. The lender has no pay stub, so it builds an income figure from what you own.
How Assets Become Income
“Asset depletion” is a market term, not an official one. It means the lender divides your eligible, documented assets by a set number of months. The result is a monthly income figure.
Fannie Mae’s Selling Guide section on employment-related assets shows the idea on the agency side. It divides net documented assets by the loan’s amortization term in months. Jumbo lanes set their own divisors, and those can differ from the agency’s. Treat any divisor you read online as a guess until a lender gives you theirs.
The divisor is the biggest lever. A shorter divisor produces more imputed income from the same portfolio. That is why two lenders can give the same retiree very different maximum loans.
Three points trip people up.
- It’s a calculation, not a withdrawal. You don’t have to liquidate anything. The figure exists only to run the ratio.
- It’s not a promise. Imputed income is a qualifying device. It does not mean you will draw that amount.
- Assets count once. Money used for closing costs, a payoff or reserves comes out of the pool first. Funds can’t serve as income and reserves at the same time.
Which Assets Count, and How
Account type changes the value the lender gives you. Treatment varies by lane, so use this as a pattern, not a promise.
| Asset | Typical treatment | Watch for |
|---|---|---|
| Brokerage account | Counted, often at a haircut | Market swings change the value |
| Retirement account (IRA, 401(k)) | Counted net of a paper penalty | Access rights, not age, usually matter |
| Checking and savings | Varies; some programs limit it | Large deposits get sourced |
| Pension, Social Security | Counted as documented income | Needs award letters |
| Annuity | Income if payments are established | Distribution terms |
| Cryptocurrency | Often excluded | Lane-specific |
On retirement accounts, the agency approach looks at whether you have the unqualified right to request a full distribution. The lender deducts a penalty on paper only, as a haircut. Nothing is actually withdrawn. Tax treatment can depend on your situation; borrowers should speak with a qualified tax professional before relying on any deduction or credit.
Three Retiree Examples, No Dollars Needed
These are hypothetical and use no dollar figures, because the logic matters more than the math.
Paid-off home, large portfolio. Picture a retiree who owns the house outright and holds a large brokerage and retirement balance. Leverage is easy, since there is no existing loan to subtract. The income ratio is the limit. The portfolio, converted to monthly income, supports a payment up to the ratio ceiling. Beyond that, a larger loan fails even though plenty of equity remains.
Existing mortgage, pension plus assets. Say a retiree has a mortgage balance at a modest share of the home’s value, a pension and Social Security. The pension and Social Security count at full value. The portfolio adds imputed income on top. Cash out is the new loan minus the payoff and costs, so the leverage cap now eats into what’s available. Here leverage can bind before income does.
Portfolio-heavy, small distributions. Consider a retiree who takes small withdrawals and has little documented income. The lender doesn’t rely on what you take out. It looks at what you hold. A retiree who withdraws modestly can still show strong imputed income if the assets are eligible. The ratio, not the withdrawal history, drives the answer.
In every case, ask which test binds first. Leverage may look like the wall, but the ratio and the reserve requirement can bind just as easily. Final terms depend on the lender’s guidelines, the property type, and the borrower’s complete credit picture.
Where the General Rule Breaks
Agency asset-income programs rarely fit a cash-out. Fannie Mae’s asset-income approach is built for purchases and limited refinances, and the other agency’s version points to “no cash-out” refinances. A retiree who wants both cash out and asset-based income often lands outside agency programs. A jumbo lane is the realistic route.
Cash-out proceeds aren’t reserves. The money you pull out of the home does not count toward the post-closing cash the lender wants to see. Your reserves must come from assets you already hold.
Occupancy changes leverage. Primary, second-home and investment occupancy each carry lane-specific leverage. Primary residence is the most favorable.
Condominiums. Non-warrantable condos, which fail the agency project standards, are accepted on two lanes. Most lanes avoid them.
Jumbo versus super jumbo. Bigger loans mean more reserves, two appraisals above the lane’s threshold, and a cash cap on the largest lanes. The same retiree can clear a smaller jumbo easily and face a stricter file at the top of the range.
State rules. Some states restrict cash-out loans on a primary residence. Ask whether your state has any.
Rule changes. Conforming limits reset on a calendar, and agency policies get revised. A divisor or limit that was true last year may not be today.
The Rules Behind Asset Qualifying
Asset-based qualifying isn’t a loophole. Federal ability-to-repay rules require a lender to make a reasonable, good-faith decision that you can repay. The CFPB’s assessment report lists eight factors. The first is current or reasonably expected income or assets, other than the home itself. Another is monthly debt-to-income or residual income.
The CFPB’s compliance guide adds that the rule sets no specific debt-to-income threshold. The 43%, 45% and 50% ceilings above come from the lanes, not from a federal cap.
One more rule affects timing on a refinance. Most refinances on your principal home carry a right to cancel within three business days. The CFPB explains the right of rescission, including that Saturdays count and Sundays and legal public holidays don’t. If you cancel a refinance, you still owe the original loan. Plan for that window before cash reaches you.
When to Stop, and What Else to Consider
A bigger loan is not automatically a better one. A few honest questions help.
- Is the cash for a specific purpose, or for living expenses? Borrowing to cover everyday spending is a different decision from funding a one-time need.
- What does the payment do to your budget? A retiree without a paycheck should size the payment against sustainable withdrawals, not only against the qualifying math. This is the same idea behind the “residual income” factor in the federal rule.
- What happens if the portfolio shrinks? The lender’s imputed income is based on today’s balance. Your payment stays fixed if markets fall.
- Does cash-out change your asset base? Money borrowed is a liability. Money spent leaves the portfolio smaller or the debt larger.
Alternatives include a smaller cash-out, a different structure such as an interest-only lane, drawing from the portfolio directly, or no loan at all.
What to Gather Before You Apply
- Recent statements for every account you want counted
- Distribution letters or 1099-R forms for lump sums
- Award letters for pension and Social Security
- Tax returns and photo ID
- Your current mortgage statement
- Sourcing for any large recent deposit
Large unexplained deposits get questioned. (A statement-by-statement paper trail sounds tedious, and it is, but it prevents the one delay you can control.)
Key Terms Defined
Jumbo loan: a loan above the county’s conforming limit, so the agencies can’t buy it.
Cash-out refinance: a new, larger mortgage that pays off the old one and gives you the difference.
Asset depletion: a lender’s method of dividing eligible assets by a set number of months to create imputed monthly income.
Reserves: liquid money you must still hold after closing, measured in months of your full payment.
Debt-to-income ratio: your monthly debts, including the new payment, divided by your monthly income.
Decision score: the credit score a lender uses to decide whether you meet the credit floor.
Where to Go From Here
If you are weighing a cash-out refinance against keeping the loan you have, Lendmire can help you compare the programs and the equity each one reaches. Bring your account statements and your current mortgage details. Which test binds first becomes clear once a lane runs your numbers.
Frequently Asked Questions
Do I have to sell investments to qualify?
No. Asset depletion is a calculation on paper. The lender uses your balances to build an income figure, and nothing is actually withdrawn. You keep the assets, though they must stay in place through closing.
Can I count the cash I take out as reserves?
No. Cash-out proceeds don’t count toward reserves. Reserves must come from assets you already hold, and those same funds can’t also be counted as income.
Does my age matter?
Usually the lender cares about access to the account, not your age. You generally need the right to request a full distribution from a retirement account. Policies differ by lane, so confirm with the lender.
Why is my maximum loan lower than my equity suggests?
Equity is only one limit. The income ratio, the reserve requirement and the cash-out leverage cap can each come in lower. Cash-out sits below the purchase leverage on the same lane. Terms depend on the lender’s guidelines, the property type, the leverage, and a full review of the credit profile.
Does the loan type change if my county’s limit changes?
Yes, it can. If the limit rises above your loan amount, the loan may become conforming and follow agency rules. Check the FHFA county list for the current figure.
For your own numbers, request a scenario review with Lendmire.
About Lendmire
Lendmire (NMLS# 2371349) is a mortgage broker licensed for consumer lending in 16 states. Lendmire arranges FHA, VA, conventional and jumbo purchase and refinance loans through wholesale lenders; every file is underwritten by the lender under the applicable program guidelines. Scotsman Guide named Lendmire a Top Mortgage Workplace in both 2025 and 2026.
For the program’s current guidelines, see jumbo loan programs.
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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. FHFA Conforming Loan Limits
2. Fannie Mae Selling Guide B3-3.4-06, Employment Related Assets as Qualifying Income
3. CFPB: CFPB Ability to Repay Qualified Mortgage Assessment Report
4. CFPB ATR/QM Small Entity Compliance Guide
This article is part of Lendmire’s jumbo cash-out refinance program — full qualification details, guidelines, and scenarios live on the program page.
Related reading: How Much a Jumbo Cash-Out Lends a W-2 Earner for a Renovation · How Much a Jumbo Cash-Out Lends a Homeowner Paid in RSUs · How Much a Jumbo Cash-Out Lends to Buy Out Trust Heirs
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
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.