The Quick Read: The right program depends on whether your assets cover the loan outright or have to be converted into monthly qualifying income, because each path has its own leverage and its own rules. Both paths skip traditional personal-income documentation, pay stubs and employment verification. Neither skips underwriting, and your assets are documented with statements. Lendmire is a mortgage broker that places these files with select lenders in its wholesale network, subject to underwriting.
- Asset qualifier path: eligible assets must equal or exceed the entire loan, 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.
- Cash-out leverage on the depletion path: up to 60% on a principal residence, a second home or an investment property.
- Qualifier-path cash-out: the lender sets it and it is not published, so confirm it for your file.
- Privately held company stock: not an eligible asset on either path.
The phrase no income verification is easy to misread, so this article defines it first and then walks through how underwriting treats it. After that come the structures, the edge cases and the decision itself.
What Does No Income Verification Mean Here?
It means no personal income documentation. You do not hand over tax returns, pay stubs, W-2s or an employment verification. The lender still underwrites the file in full. It reviews your credit, your housing history, the property, the appraisal, and your asset statements.
This program can suit borrowers whose documented income is thin or has stopped. Think of a retiree living on a portfolio, someone who just sold a business, an heir, a settlement recipient, or an early-retired professional. Their balances may be large, but the income line does not show it.
A conventional cash-out refinance asks one question: what does your tax return say you earn? An asset-based program asks a different one: what do your statements say you hold? The difference matters most when depreciation, write-offs, or retirement have shrunk the income line.
Two Paths, One at a Time
Asset-based mortgage programs run on two paths. A borrower is qualified on one path at a time, and the two tables never blend. Lendmire’s asset-based mortgage programs are built around this split.
| Factor | Asset Qualifier | Asset Depletion |
|---|---|---|
| How assets are used | Cover the whole loan | Converted to monthly income |
| Income documented | None | Derived from assets |
| Debt-to-income test | Not applied to income | Applied to derived income |
| Loan amounts | Up to $4,000,000 | $125,000 to $3,500,000 |
| Property types | Principal residence, second home | Residence, second home, investment |
On the qualifier path, the lender adds up the credited value of your accounts. That total must equal or exceed the entire loan amount. Nothing else is tallied, and your employment is not asked about.
On the depletion path, the lender takes your usable assets and divides them by 60 months. The result is a monthly qualifying income. That income must carry the full housing payment and your other debts through the debt-to-income test. 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.
How Does Underwriting Treat Each Path, Step by Step?
Underwriting follows the same order on both paths, with different math in the middle. All figures below are program ceilings and floors through select programs, subject to underwriting.
Step 1: Pick the path and the property. The path follows the property and your goals. A principal residence or second home can use either path. An investment property is available only on the depletion path.
Step 2: Credit the assets. Each account counts at a set share of its balance. The tables below show those shares for each path.
Step 3: Check seasoning. On the qualifier path, funds need 60 days of seasoning, with 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. Funds from the sale of a business, an inheritance or a legal settlement are excused from that seasoning on the depletion path.
Step 4: Run the math. Qualifier: credited assets must meet or beat the loan. Depletion: usable assets divided by 60 months must carry the debts.
Step 5: Review credit and the property. The qualifier path publishes a 600 minimum score. The depletion path follows the lender’s score and loan-amount matrix. A first-time investor on the depletion path needs a 700. Housing history is 0x30x12, so one 30-day late in the last twelve months is considered case by case. Multiple bankruptcies are not eligible. A housing event needs four years of seasoning on the depletion path.
Step 6: Size the loan. Leverage depends on path, transaction and occupancy. The next section lays it out.
Worked Example: Qualifier Path
These numbers are illustrative, and the lender’s own calculation governs. Say you want an $800,000 loan. You hold $330,000 in brokerage accounts, which count at 100%, so $330,000. You hold $300,000 in a 401(k) and you are under 59½, so it counts at 90%, or $270,000. You hold $200,000 in savings, which counts at 100%, or $200,000. Together these credited amounts count $800,000 of usable assets, which matches the loan. On assets alone, that file meets the qualifier test.
Worked Example: Depletion Path
Say you hold $1,500,000 in securities. They count at 80%, so $1,200,000. You also hold $300,000 in cash, which counts at 100%, or $300,000. Added together, that is $1,500,000 usable. Divide by 60 months and you get $25,000 of monthly qualifying income. That income then has to carry the housing payment and your other debts through the debt-to-income test.
How Much Cash Can You Take Out?
Cash-out leverage is where the two paths differ most, and the paths publish different amounts of information.
On the depletion path, a cash-out refinance goes up to 60% loan-to-value on a principal residence, a second home or an investment property. A purchase or rate-and-term refinance goes up to 80% on a principal residence or second home. On an investment property, a purchase or rate-and-term refinance goes up to 65%. Cash-out proceeds never count as qualifying assets, so you cannot borrow against the house and then use that money to qualify for the loan.
On the qualifier path, the published ceilings are 80% on a purchase and 75% on a refinance of a principal residence or second home. Whether cash-out proceeds are allowed on this path, and at what leverage, is set by the lender and is not published. Confirm that with the lender before you build a plan around it.
That gap is why a blanket answer to the best program question does not hold up. A borrower who needs the most cash out may find the depletion ceiling too low. A borrower with a large balance and a small cash need may find the qualifier path a better fit, if the lender permits cash-out there.
Which Assets Count, and Which Do Not?
Accounts count at a share of the balance. The part that does not count is the haircut, so securities at 80% on the depletion path carry a 20% haircut.
Asset qualifier path:
| Asset | Share That Counts |
|---|---|
| Brokerage accounts | 100% |
| Certificates of deposit | 100% |
| Money market | 100% |
| Savings | 100% |
| 401(k) and IRA, under age 59½ | 90% |
| 401(k) and IRA, age 59½ or older | 100% |
Accounts combine, so several smaller accounts can add up to the whole loan.
Asset depletion path:
| Asset | Share That Counts |
|---|---|
| Cash accounts | 100% |
| Certificates of deposit | 100% |
| Securities | 80% |
| Retirement accounts, any age | 70% |
| Real-estate equity | 60% |
Several asset types are not eligible on the depletion path: custodial accounts, deferred compensation, escrow accounts, foreign funds, cash on hand, privately held stock, stock options, non-vested restricted stock units, and funds from non-regulated financial companies.
What About Private Stock, Crypto and Other Assets?
Privately held company stock is not an eligible asset on either path. That rule is flat. A founder or shareholder’s route is documented liquid assets: seasoned proceeds from a sale or buyout, cash, public securities and retirement accounts at their credited shares.
Cryptocurrency, precious metals, collectibles, business accounts beyond your ownership share, 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. The lender then reviews where the money came from. Inheritance still in probate falls in the same bucket: it counts once it is in your account and documented.
What Do You Skip, and What Do You Still Provide?
| You Skip | You Still Provide |
|---|---|
| Tax returns | Asset statements |
| Pay stubs | Credit review |
| Employment verification | Appraisal and property review |
| Income documentation (qualifier path) | Housing history |
The program is not no-doc. Every file is underwritten, and the lender wants statements for every account it credits. If you cannot document an account with statements, it cannot count.
Where Does the General Rule Break?
The general rule is simple: assets in, loan out. Several edge cases bend it.
Investment property pushes you to the depletion path. Investment property is available only there, and the leverage is lower. A first-time investor needs a 700 score. Minimum assets are the lesser of $1,000,000 or 1.25 times the loan balance, and never below $250,000 liquid when asset depletion is your only income source.
Business purpose is a different legal category. An investment-property loan on the depletion path is a business-purpose loan. Business-purpose investor loans are reviewed differently from a standard owner-occupied mortgage. The CFPB’s Regulation Z commentary treats credit to acquire, improve or maintain non-owner-occupied rental property as business purpose. The same rule explains why cash taken out for personal use on a home you live in is consumer credit, with its own treatment. A Hunton law-firm analysis adds that business purpose does not mean exempt from everything, because some states require licensing for loans secured by residential property either way. Consumer lending through this program is licensed in 16 states: Alabama, California, Colorado, Florida, Georgia, Indiana, Michigan, Montana, New Mexico, North Carolina, Ohio, Pennsylvania, Tennessee, Texas, Virginia and Washington.
The balance may be big, but the credited balance is smaller. A portfolio full of retirement accounts counts at 70% on the depletion path. That cuts usable income more than most borrowers expect.
Seasoning can trip a freshly funded account. The qualifier path wants 60 days of history. The depletion path wants statements 120 days old. Funds from a business sale, an inheritance or a settlement are excused from that depletion-path seasoning, but they still need documentation.
Why Borrow Against Assets Instead of Selling Them?
Selling a portfolio ends its growth and can trigger a tax bill, so some borrowers prefer to hold the assets and borrow against the home instead. Others want to keep an income stream from dividends or interest intact. 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.
Borrowing also adds a payment and a lien. If markets fall after closing, your portfolio shrinks but the loan balance does not. Plan for that before you pull cash out.
How Does It Compare With the Alternatives?
Other programs solve related problems. Their rules belong to those programs, not to this one.
| Option | How It Qualifies |
|---|---|
| Asset qualifier | Assets cover the whole loan |
| Asset depletion | Assets converted to monthly income |
| Bank statement loan | Income documented through deposits |
| DSCR loan | Rental income on an investment property |
| Conventional cash-out | Full income documentation and debt-to-income |
| HELOC | Second lien, with its own income review |
A bank statement program suits self-employed borrowers whose deposits show steady income. DSCR is business-purpose rental financing that qualifies primarily on property-level rental income covering the payment, subject to lender guidelines. A conventional cash-out loan is built for borrowers whose tax returns show the income. Asset-based programs fit people whose balances are large and whose documented income is not.
Which Path Fits You?
| Borrower | Likely Fit |
|---|---|
| Retiree with a large portfolio | Qualifier, if assets cover the loan |
| Seller of a business | Depletion, or qualifier once proceeds sit as cash |
| Heir or settlement recipient | Either, once funds are seasoned and documented |
| Early-retired professional | Depletion, to turn savings into income |
| Investor buying a rental | Depletion only |
Fit is a starting point, not a decision. A retiree with a portfolio just under the loan amount may fit neither path as sized, and a smaller loan may change the answer.
How to Judge the Best Program for Your Situation
No single program is best for everyone. The lenders that write this product vary in the details, so the best program for your situation comes down to how well the terms match your file. Lendmire shops a file across lenders in its wholesale network and matches the scenario to a program, rather than quoting one lender’s matrix.
Compare programs on these points:
- Path available: qualifier, depletion, or both.
- Leverage for your property type: a cash-out ceiling that fits your goal.
- Asset credit: how much of your portfolio actually counts.
- Seasoning: how long funds must sit before they count.
- Minimum assets: whether your balance clears the floor.
- Credit: where you land on the lender’s matrix.
- Qualifier-path cash-out: whether the lender allows it and at what leverage.
Ask for the terms in writing from each option, since conversations alone do not show seasoning or asset-credit details.
Key Terms Defined
Asset qualifier: a path where eligible assets must equal or exceed the entire loan and no income is documented.
Asset depletion: a path where usable assets divided by 60 months become monthly qualifying income.
Haircut: the part of an account’s balance that does not count toward qualifying.
Seasoning: the time funds must sit in an account, shown on statements, before they count.
Cash-out refinance: a new loan that pays off the old one and gives you the extra cash.
Debt-to-income: your monthly debts divided by your monthly income, which the depletion path tests on derived income.
Loan-to-value: the loan amount divided by the property’s appraised value.
Frequently Asked Questions
Does privately held company stock count toward qualifying?
No. If you own a company, the documented route is a sale or buyout converted to a seasoned cash balance. Cash, public securities and retirement accounts count at their published shares.
Can the cash I take out count as qualifying assets?
No. On the depletion path, cash-out proceeds never count as qualifying assets. Your qualifying assets have to exist apart from the loan, documented in statements.
Is this a no-doc loan?
No. The file is fully underwritten and your assets are documented with statements. What you skip is tax returns, pay stubs and employment verification.
Do I need a credit check?
Yes. The qualifier path publishes a 600 minimum score, and the depletion path follows the lender’s matrix. Housing history and any bankruptcies or housing events are reviewed. Approval is never promised and is subject to underwriting.
What if my balance is mostly retirement accounts?
It can still work. On the qualifier path those accounts count at 90% under age 59½ and 100% at 59½ or older. On the depletion path they count at 70% at any age, which lowers the monthly income you can derive.
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. Reach the team at 828-256-2183.
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 — 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
2. Hunton: 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: Best Asset-Based Cash-Out Refinance Program With a 40-Year Term · Best Asset-Based Cash-Out Refinance Program for a Retiree Without Employment Income · How Lenders Underwrite an Asset-Based Cash-Out Refinance With No Income Verification
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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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.