The Quick Read: The right provider for this goal depends on your situation, because Lendmire is a mortgage broker that places files with select wholesale lenders, and each lender sets its own rules on asset credit, cash-out leverage, and whether proceeds can retire personal credit cards.
- Asset-based programs review your file on what you own, not on pay stubs. One path counts assets against the whole loan, and the other turns assets into monthly income.
- Cash-out leverage is tighter than purchase leverage. Subject to underwriting, the asset depletion path allows up to 60% loan-to-value on a cash-out refinance of a principal residence, second home, or investment property.
- Paying off cards frees up cash flow, but it turns unsecured debt into debt secured by property.
- You compare programs, not company names. The useful questions are about assets, seasoning, leverage, and card-payoff rules.
Lendmire does not publish a ranked list of lenders. A ranking would be wrong for this product anyway. The program that fits a retiree living on a brokerage account is different from the one that fits someone who just sold a business. The sections below explain how these programs work, what separates one fit from another, and what to check before you pay for an appraisal.
What “Asset-Based” Means (and Why It Matters for Card Payoff)
An asset-based mortgage is reviewed around documented balances in bank, brokerage, and retirement accounts instead of on wage income. You document the assets with statements. You skip traditional personal-income documentation, pay stubs, and employment verification, but the file is still fully underwritten.
That fits a specific kind of borrower. Think of retirees, people who sold a business, heirs, settlement recipients, early-retired professionals, and households that live off a portfolio. Their balances are large and their documented income is small. A conventional lender looks at the income line and sees a problem. An asset-based program looks at the balance sheet.
For card payoff, the draw is simple. Card interest usually runs far above what mortgage debt costs. If you have the assets but not the paycheck, a cash-out refinance on the home can retire the cards without a W-2 file. On the asset depletion path, a cash-out refinance is available on a principal residence or second home, subject to underwriting.
Two Paths, and You Are on One at a Time
Every asset-based file runs on one of two paths. Which one fits depends on whether your assets can cover the entire loan.
The asset qualifier path. Your eligible assets, after the credit percentages below, must equal or exceed the entire loan amount. No employment or income is documented. Loans run up to $4,000,000, subject to underwriting.
The asset depletion path. Eligible assets, after their haircuts, are added up and divided by 60 months. The result is a monthly qualifying income. That income must carry the housing payment and your other debts through the debt-to-income test. Loans run from $125,000 to $3,500,000.
| Factor | Asset Qualifier | Asset Depletion |
|---|---|---|
| How you qualify | Assets cover the whole loan | Assets become monthly income |
| Purchase leverage | Up to 80% LTV | Up to 80% (65% on investment) |
| Refinance leverage | Up to 75% LTV | 80% rate-and-term (65% on investment) |
| Cash-out leverage | Set by the lender | 60% LTV, all property types |
| Statement seasoning | 60 days, two months each | 120 days old, plus one within 45 |
Two notes on that table. On the qualifier path, cash-out proceeds are allowed or limited at the lender’s discretion. No figure is published, so do not plan around one. On the depletion path, the 80% and 65% figures apply to a purchase or rate-and-term refinance, and all figures are ceilings, not offers.
What Counts as an Asset, and How Much of It
Lenders do not count every dollar at face value. The share that counts depends on the account type and the path. The part that does not count is the haircut.
On the qualifier path:
- Brokerage accounts, certificates of deposit, money market, and savings count at 100%.
- Retirement accounts (401(k) and IRA) count at 90% if you are under 59½ and at 100% at 59½ or older.
- Accounts combine.
On the depletion path:
- Cash accounts and certificates of deposit count at 100%.
- Securities count at 80%.
- Retirement accounts count at 70% at any age.
- Real-estate equity counts at 60%.
Several things do not count on the depletion path at all: 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.
Cryptocurrency, precious metals, and collectibles are not published as eligible on either path. Neither are pledged or borrowed funds. If most of your wealth sits in those, the documented route is converting it to a seasoned cash balance in a regulated account. The lender reviews the source of those funds.
Run the Arithmetic Both Ways
Here is how the two paths treat the same kind of balance sheet. These numbers are illustrative, and the lender’s own calculation governs.
Qualifier path. Say you want an $800,000 loan. You hold $330,000 in brokerage accounts (100% counts, so $330,000). You hold $300,000 in a 401(k) and you are under 59½ (90% counts, so $270,000). You hold $200,000 in savings (100% counts, so $200,000). Usable assets come to $800,000. That equals the loan, so the file is reviewed on assets alone, subject to underwriting.
Depletion path. Say you hold $1,500,000 in securities (80% counts, so $1,200,000) and $300,000 in cash (100% counts, so $300,000). Together that is $1,500,000 of usable assets. Divide by 60 months and you get $25,000 of monthly qualifying income. That income then carries the housing payment and your other debts through the debt-to-income test.
This is where card payoff shows up. On the qualifier path, no income is documented, so your card minimums do not enter a debt-to-income calculation. The lender’s ability-to-repay review rests on the assets. On the depletion path, card payments sit in the debt-to-income test. Retiring the cards can change that ratio, though the lender’s calculation decides how.
Which Asset-Based Cash-Out Refinance Providers Fit Paying Off Credit Cards?
The lenders that write this product differ in a few places. Those differences, not brand names, decide the fit.
Cash-out treatment on the qualifier path. Some lenders allow cash-out proceeds and others restrict them. The published ceiling is 75% on a refinance, and any cash-out allowance is the lender’s call. If your card payoff depends on cash-out, ask this first.
Occupancy. On the depletion path, a cash-out refinance is capped at 60% loan-to-value whether the property is a principal residence, a second home, or an investment property. An investment property runs on the depletion path only. It is also a business-purpose loan, which brings the next question.
Programs differ on whether proceeds may retire personal consumer debt. Some limit it, and others allow it under conditions. Documented business cards, such as commercial cards that funded a rehab, fit more comfortably. Lendmire’s network does not publish one universal answer here, so confirm the specific program before you spend money on an appraisal.
Credit. The qualifier path publishes a 600 minimum score. The depletion path follows the lender’s matrix of score and loan amount, and a first-time investor on that path needs 700. Housing history is 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.
Reserves. The qualifier path requires none at or below 75% loan-to-value. Above that, the lender sets them. The depletion path has no published reserve months.
This is the reason a broker that shops several wholesale lenders matters here. The best program for your situation depends on your asset mix, property type, credit profile, and how much cash you need. You want a placement that matches the scenario, not a name from a list.
Minimums and Seasoning That Trip People Up
Seasoning is how long money has sat in an account. It protects the lender from borrowed or freshly moved funds.
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 the most recent statement within 45 days. Sale-of-business, inheritance, and legal-settlement funds are excused from that seasoning.
The depletion path also has minimum assets. You need qualified assets of at least the lesser of $1,000,000 or 1.25 times the loan balance. When depletion is your only income source, you need no less than $250,000 liquid. Asset-derived income can also supplement documented income up to a 45% debt-to-income ratio. When it supplements, the minimum-assets rule is waived.
Edge Cases Where the General Rule Breaks
A founder with mostly company stock. Privately held company stock is not eligible on either path. The documented route is liquid assets: seasoned proceeds from a sale or conversion, cash, public securities, and retirement accounts at their percentages.
A retiree under 59½. Retirement accounts count at 90% on the qualifier path but only 70% on the depletion path. The path you choose changes the answer for the same balance.
Real-estate equity as an asset. It counts only on the depletion path, at 60%. Using it also means you are leaning on a property you may be refinancing.
Borrowing to qualify. Cash-out proceeds never count as qualifying assets. Pledged or borrowed funds are not published as eligible either.
A rental you sometimes use. Investment-property treatment depends on occupancy. Federal rules treat credit on a non-owner-occupied rental as business purpose, and an owner who expects to occupy the home for more than 14 days in the coming year cannot treat it as non-owner-occupied, per Regulation Z § 1026.3. Because an investment-property loan is a business-purpose loan, it is reviewed differently from a standard owner-occupied mortgage. The Comptroller’s Handbook on Truth in Lending notes that a borrower’s checked box stating a business purpose can count as evidence when nothing contradicts it.
Business purpose is not a free pass either. Law-firm analysis from Hunton via Lexology warns that it does not mean compliance-exempt. The same analysis notes that some states require licensure for lenders making loans secured by residential property whether the purpose is consumer or business. That is one reason a card payoff on a rental is a program question and not a given.
A veteran. An asset-based loan is one route. Another is a VA loan, which has its own rules. Lendmire’s article VA Cash-Out Refinance Requirements to Pay Off Credit Cards covers that separately.
What Paying Off Cards Costs You
The interest savings are real, and so is the tradeoff. Credit card debt is unsecured. Once you refinance it into a mortgage, the property secures it. If you fall behind later, the home is at risk, not just your credit.
A cash-out refinance also adds to the loan balance, which generally raises the monthly mortgage obligation. Weigh the interest you stop paying on the cards against the closing costs and the longer repayment period. Costs vary by program and file, so get them in writing before you commit.
Tax treatment can depend on how the funds are used and how the property is held; borrowers should keep clear records and speak with a qualified tax professional before relying on any deduction.
The biggest risk comes after closing. Paid-off cards have open limits. If balances climb back, you now have a larger mortgage and new card debt. Plan for that before you apply, whether it means closing accounts, lowering limits, or building a budget that keeps spending off the cards.
Skip this route if your assets are thin and the cash-out would drive leverage to the ceiling. And skip it if the underlying spending problem has not changed.
How the Process Works, Step by Step
1. Inventory your assets. List every account, its type, and its balance. Sort them by what counts on each path.
2. Pick the path. If your counted assets cover the whole loan, the qualifier path fits. If not, the depletion path may fit, with a debt-to-income test.
3. Check the card-payoff rule. Confirm that the program allows proceeds to retire your cards on your property type before paying for an appraisal.
4. Gather statements. Collect the seasoned statements for each account, and the source documents for any large recent deposits.
5. Apply and underwrite. The lender reviews credit, assets, the property, and appraisal. Terms depend on the full file.
6. Closing and payoff. Where the program allows it, card payoffs are typically sent directly to the issuers at closing. Consumer mortgage disclosures apply to the loan on a principal residence or second home.
7. Reset the cards. Decide what happens to the open accounts before the money moves.
Questions to Ask Any Provider Before You Commit
- Does the program allow cash-out on my path and property type, and at what leverage?
- Can the proceeds retire personal credit cards on this property?
- Which of my accounts count, and at what percentage?
- Do my statements meet the seasoning rules?
- Which credit tier and score does the lender’s matrix require at my loan size?
- Who owns the appraisal and what does a re-inspection cost me?
Key Terms Defined
Asset qualifier path: The path where eligible assets, after credit percentages, equal or exceed the entire loan amount.
Asset depletion path: The path where eligible assets are divided by 60 months to create a qualifying monthly income.
Haircut: The part of an asset balance that a lender does not count toward qualifying.
Seasoning: The length of time funds must sit in an account before a lender will count them.
Cash-out refinance: A new mortgage larger than the old one, where you receive the difference, here to pay off credit cards.
Loan-to-value (LTV): The loan amount as a percentage of the property’s appraised value.
Debt-to-income (DTI): Monthly debt payments, including the new housing payment, divided by monthly qualifying income.
Business-purpose loan: A loan made to acquire, improve, or maintain an investment property, reviewed differently from an owner-occupied mortgage.
Frequently Asked Questions
Does privately held company stock count as an asset?
No. A founder’s or shareholder’s documented route is liquid assets: seasoned proceeds from a sale or buyout converted to cash, public securities at 80% on the depletion path, and retirement accounts at their percentages.
Can I use cash-out proceeds to qualify?
No. Cash-out proceeds never count as qualifying assets on the depletion path, and borrowed or pledged funds are not published as eligible on either path. You qualify on assets you already hold and have documented.
Does paying off my cards improve my chances?
It depends on the path. On the qualifier path, no income is documented, so card payments do not enter a debt-to-income test. On the depletion path, card minimums sit in the debt-to-income calculation, so retiring them can change the ratio. The lender’s own calculation governs.
Can the loan be on a rental property?
Investment property runs on the depletion path only, at up to 60% loan-to-value on a cash-out refinance, subject to underwriting. Because it is a business-purpose loan, whether personal cards can be retired with the proceeds is a program-level question. Confirm it before you apply.
What credit score do I need?
The qualifier path publishes a 600 minimum. The depletion path follows the lender’s matrix of score and loan amount, and a first-time investor there needs 700. Housing history, bankruptcies, and housing events also matter. Approval is never promised.
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 programs based on your statements, the property, credit profile, leverage, and your goals. The consumer program is available through licensed lending in 16 states: Alabama, California, Colorado, Florida, Georgia, Indiana, Michigan, Montana, New Mexico, North Carolina, Ohio, Pennsylvania, Tennessee, Texas, Virginia, and Washington.
A deeper walk-through of investment-property equity extraction lives in Lendmire’s guide to cash-out refinance on an investment property.
About Lendmire
Lendmire is a mortgage brokerage (NMLS# 2371349) licensed for consumer mortgage lending in 16 states, arranging bank statement and other alternative-documentation mortgages — P&L-only, 1099-only and asset-based paths — through a wholesale lending network. Eligibility is determined by the lender on each file. 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. OCC Comptroller’s Handbook: Truth in Lending Act
3. Hunton via Lexology: 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: Top Asset-Based Cash-Out Refinance Providers to Build an Addition or ADU · How Lenders Underwrite an Asset-Based Cash-Out Refinance With a 660 Credit Score · Best Asset-Based Cash-Out Refinance Program That Pays Off Debt at Closing
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
- Mortgage Loan Originator · NMLS# 1129696 · Verify on NMLS Consumer Access
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- North Carolina Insurance Producer · License# 19053198 · Property, Casualty, Life, Health · Verify on NAIC SBS
- Lendmire LLC · Firm NMLS# 2371349 · Verify firm licensure
Disclosures. The information presented in this article is general market commentary, not financial, legal, or tax advice. Lendmire is a mortgage brokerage (NMLS# 2371349) — not a direct lender or depository institution — and loan placement is subject to lender underwriting. Nothing in this content represents a commitment to lend. Loan terms, pricing, and program availability vary based on borrower qualifications, property characteristics, and state of subject property, and are subject to change at any time. Lendmire complies with Equal Housing Opportunity requirements. Consumer access: nmlsconsumeraccess.org.