The Quick Read: The lenders that write this loan review your balance sheet instead of a paycheck, and which one fits depends on your assets, property, and leverage need. Lendmire is a mortgage broker, so it does not rank lenders; it matches the file to a program in its wholesale network.
- Two paths. On the asset qualifier path, eligible assets must cover the whole loan. On the asset depletion path, usable assets divided by 60 months become qualifying income.
- Cash-out leverage. The depletion path allows up to 60% on a cash-out refinance, on a principal residence, second home, or investment property, subject to underwriting.
- Not a no-documentation loan. There is no traditional personal-income documentation, such as pay stubs or employment verification, but every asset is documented with statements.
- Cash-out proceeds never count. You cannot borrow cash and then use it to qualify.
- Private stock does not count. Privately held company stock is not an eligible asset on either path.
Who This Loan Fits
Retirees, business sellers, people who received an inheritance or settlement, early-retired professionals, and households living off a portfolio are the typical fit. Their balances are large and their documented income is small.
A bank built around traditional employment income reads that profile badly. A wholesale network has programs that read it correctly. A broker shops several of them and matches your statements to the program that suits them. Which lender writes your loan depends on the property type, credit profile, leverage need, and how your assets are held. Large retail lenders rarely offer this product at all.
Asset-based programs are different products from DSCR loans. HousingWire’s non-QM guide lays out the menu: DSCR compares property rent to the housing expense, bank statement loans use 12 to 24 months of deposits, and asset depletion converts liquid assets into qualifying income. Pick the one that matches what you actually have.
What Is an Asset-Based Cash-Out Refinance?
It is a refinance that replaces your current mortgage with a larger one and pays you the difference, qualified on assets instead of income. Underwriting still happens. The lender reviews credit, the property, the appraisal, and your statements. The only thing removed is the employment and income paperwork.
Two programs are in play, and a borrower is qualified on one path at a time.
| Factor | Asset qualifier path | Asset depletion path |
|---|---|---|
| How assets are used | Must cover the entire loan | Divided by 60 months into income |
| Income documented | None | Derived income, run through DTI |
| Refinance leverage | Up to 75% | Up to 60% cash-out |
| Cash-out terms | Set by lender, not published | 60% on all occupancies |
| Loan amounts | Up to $4,000,000 | $125,000 to $3,500,000 |
On the qualifier path, the 75% figure applies to a refinance, while its cash-out terms are set by the lender and not published. Figures are ceilings through select programs, subject to underwriting, not offers.
How Underwriting Treats Your Assets, Step by Step
Each file follows the same order.
1. Classify the loan. The lender decides whether the refinance is rate-and-term or cash-out. Cash-out carries lower leverage.
2. Document the assets. Statements are collected for every account. Each asset type then counts at a set percentage of its balance.
3. Remove cash-out proceeds. Money you will receive from the refinance is excluded from the asset count.
4. Appraise and clear the property. Appraisal, title, and occupancy declarations are completed.
5. Check credit and the path’s minimums. The lender reviews the score, housing history, and any reserve or minimum-asset rules.
Every one of these steps is fully underwritten. Nothing here is a skip-the-review loan.
What Counts as an Eligible Asset
The percentages below are the share of the balance that counts. The haircut is the part that does not.
Asset qualifier path: brokerage accounts, CDs, money market, and savings count at 100%. Retirement accounts count at 90% under age 59½ and 100% at 59½ or older. Accounts combine.
Asset depletion path: cash accounts and CDs count at 100%. Securities count at 80%, so 20% is discounted. Retirement accounts count at 70% at any age, so 30% is discounted. Real-estate equity counts at 60%.
Not eligible on the depletion path: 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.
Cryptocurrency, precious metals, collectibles, pledged or borrowed funds, and business accounts beyond your ownership share are not published as eligible either. The route for any of these is converting them to a seasoned cash balance in a regulated account, with the source reviewed by the lender.
A founder or shareholder with a company sale pending has a clear path: documented liquid assets. That means seasoned proceeds from the sale or buyout, cash, public securities, and retirement accounts at their percentages.
The Math on Each Path
These examples are illustrative. The lender’s own calculation governs.
Qualifier path. Take an $800,000 loan. Brokerage accounts of $330,000 count at 100%, which is $330,000. A 401(k) of $300,000 held under age 59½ counts at 90%, which is $270,000. Savings of $200,000 count at 100%, which is $200,000. Usable assets total $800,000, which equals the loan, so the file is reviewed on assets alone, subject to underwriting.
Depletion path. Take $1,500,000 in securities, which count at 80% for $1,200,000, plus $300,000 in cash at 100%, which is $300,000. Together that is $1,500,000 of usable assets. Divided by 60 months, that is $25,000 of monthly qualifying income. That income then carries the housing payment and other debts through the debt-to-income test.
Which path fits? If your assets exceed the loan, the qualifier path is simpler. If assets are large but you want leverage on a bigger balance sheet, or you are cashing out against an investment property, the depletion path is the cash-out route.
Seasoning, Credit, and Minimums
The documentation rules differ by path.
- Qualifier path: 60 days of seasoning and two months of statements for each qualifying account. Minimum credit score of 600. No reserves at or below 75% loan-to-value; above that, the lender sets them.
- Depletion path: statements at least 120 days old at application, plus one statement within 45 days. Sale-of-business, inheritance, and legal-settlement funds are excused from that seasoning. Credit follows the lender’s matrix. A first-time investor needs 700.
- Depletion minimums: qualified assets of at least the lesser of $1,000,000 or 1.25 times the loan balance, and never below $250,000 liquid when asset depletion is the only income source.
- Supplement option: asset-derived income can add to documented income up to a 45% debt-to-income ratio. When it supplements, the minimum-assets rule is waived. Final terms depend on the lender’s guidelines, the property type, and the borrower’s complete credit picture.
Housing history is 0x30x12, with one 30-day late in the last twelve months considered case by case. Multiple bankruptcies are not eligible, and a housing event needs 4 years of seasoning on the depletion path.
Why This Is Not a Job-Based Loan
Cash-out on a rental is generally a business-purpose loan. The Federal Register’s Ability-to-Repay rule treats investment-purpose loans as business-purpose loans. The OCC’s interagency bulletin adds that credit to acquire or improve non-owner-occupied rental property counts as business purpose.
Business purpose does not mean no rules. The file must be a real investment-purpose loan, and the lender still reviews it. On a principal residence or second home, the loan is a consumer mortgage and consumer disclosures apply.
Where the General Rule Breaks
Cash-out proceeds. They never count as qualifying assets. Files that count them get corrected.
Private stock. Founders hold the most value in the one asset that does not count. The fix is converting it to a seasoned cash balance before applying.
Crypto and metals. Not published as eligible. Convert to cash in a regulated account and let the lender review the source.
Newly moved money. On the qualifier path, funds moved last week have not seasoned. Sixty days and two statements per account is the standard to plan around.
Investment property. The depletion path covers it at up to 60% on a cash-out and 65% on a purchase or rate-and-term. The qualifier path is published for principal residences and second homes. Investment-property cash-out terms on either path are subject to underwriting.
Depletion as a withdrawal plan. It is not one. Dividing assets by 60 months is a qualifying convention, not a requirement to sell anything.
Asset-Based or DSCR?
The two products test different things. Asset qualification looks at your balance sheet, so a property with thin rent can still work. DSCR qualifies primarily on property-level rental income covering the payment, subject to lender guidelines, so a thin asset position can still work. Programs below 1.00 coverage are available through select lenders in the network, with leverage and terms adjusting. A cash-out raises the payment, so coverage falls as you pull more out.
If you hold large liquid balances and a rental with uneven rent, the asset-based route is often the cleaner read. If your wealth is mostly in the property, a rent-based loan fits better. Lendmire’s piece Top Asset-Based Cash-Out Refinance Providers With Non-Traditional Income covers a related set of borrowers.
How to Find the Right Fit
No single lender is right for every file. Look for these things instead of a ranking.
- A program that names your asset types and the percentage each counts.
- Clear seasoning rules for the accounts you actually hold.
- Cash-out leverage that matches the property type.
- A loan-amount range that includes your balance.
A broker shops several wholesale lenders and matches the scenario to the program. Lendmire’s asset-based mortgage programs run through select lenders in its network, available in the 16 states where its consumer lending is licensed: Alabama, California, Colorado, Florida, Georgia, Indiana, Michigan, Montana, New Mexico, North Carolina, Ohio, Pennsylvania, Tennessee, Texas, Virginia, and Washington.
For a borrower who documents income through deposits instead of assets, Lendmire’s piece Top Asset-Based Cash-Out Refinance Providers With No Income Verification covers a different route.
What to Prepare
- Two months of statements for each qualifying account, and statements at least 120 days old for the depletion path.
- Documentation of any sale, inheritance, or settlement proceeds.
- Entity documents if the property is titled in an LLC, subject to program terms.
- A current mortgage statement and homeowners insurance.
- Conversion of any ineligible assets to seasoned cash well before applying.
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 that divides usable assets by 60 months into monthly qualifying income.
Seasoning: the time funds must sit in an account before they count.
Cash-out refinance: a new, larger mortgage that pays off the old loan and pays the borrower the difference.
Haircut: the part of an asset’s balance that does not count toward qualifying.
Frequently Asked Questions
Can I get a cash-out refinance with no job?
Yes, through select asset-based programs, subject to underwriting. Lenders qualify the file on documented liquid assets, not employment. Tax returns, pay stubs, and employment verification are not required, but statements for every asset are.
Does privately held company stock count as an asset?
No. A founder’s route is documented liquid assets, such as seasoned proceeds from a sale or buyout, cash, public securities, and retirement accounts at their percentages.
Can cash-out proceeds be used to qualify?
No. Proceeds are excluded from qualifying assets on both paths. You cannot borrow cash and then count it.
How much can I borrow on an investment property?
On the depletion path, up to 60% on a cash-out refinance and up to 65% on a purchase or rate-and-term refinance, subject to underwriting. Loan amounts run from $125,000 to $3,500,000 on that path.
How much do retirement accounts count?
On the qualifier path, 90% under age 59½ and 100% at 59½ or older. On the depletion path, 70% at any age.
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 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 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
1. HousingWire non-QM loan guide
2. 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: Asset-Based Cash-Out Refinance vs Bank Statement Cash-Out Refinance for Retirees · Asset-Based Cash-Out Refinance Requirements on a Primary Home · Best Asset-Based Cash-Out Refinance Program With a 529 Plan Counted as Liquid Assets
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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Important disclosures. Lendmire (NMLS# 2371349) is a licensed mortgage brokerage. Lendmire is not a direct lender, depository institution, or financial advisor. All loan inquiries are subject to lender underwriting; this article does not constitute a commitment to lend. Rates, terms, and program guidelines are subject to change without notice and vary by borrower profile, property type, and state. Information in this article is general in nature and is not financial, legal, or tax advice. Equal Housing Opportunity. NMLS Consumer Access: nmlsconsumeraccess.org.