The Quick Read: An asset-based cash-out refinance can raise the lump sum for a large gift when your balances, not your paycheck, carry the loan, and the right program depends on your assets, your property, your credit, and the leverage the file can support. Every program runs through select lenders, and every file is underwritten individually.
- Asset-based programs have two paths. One covers the whole loan with eligible assets. The other turns assets into a monthly qualifying income.
- On the asset depletion path, a cash-out refinance on a primary residence, second home or investment property reaches up to 60% loan-to-value, subject to underwriting.
- Cash-out proceeds do not count as qualifying assets on the depletion path, and money that leaves your accounts stops supporting the loan.
- Company shares that are not publicly traded are a separate problem, and the article covers them where it discusses which assets count.
- No honest list can name one best provider, because the right program depends on your file.
Why a List of Top Providers Does Not Exist Here
The best program for your situation depends on the property, your balances, your credit and how much leverage you need. A ranked list of companies would hide all of that. It would also go stale, since programs change and each lender reads a file its own way.
A broker works differently. Lendmire shops a file across the wholesale lenders in its network and matches the scenario to a program. The useful question is not which company ranks first. It is which program type fits a donor who holds large balances and wants cash for a gift.
Here are the provider types a donor usually compares. These are categories, not companies.
| Provider type | Best fit | Main trade-off |
|---|---|---|
| Asset-based mortgage through a broker | Large balances, little documented income | Leverage caps and asset rules |
| Securities-backed credit line | Large brokerage account you want to keep | Your portfolio is the collateral |
| Home equity loan or line | Documented income and moderate cash need | Income-based review |
| Conventional cash-out refinance | Steady W-2 or tax-return income | Debt-to-income limits |
| Business-purpose rental cash-out | Rental property with strong rent coverage | Reviewed on rent, not on your assets |
The rest of this article focuses on the first row.
Key Terms Defined
Cash-out refinance: a new, larger mortgage that pays off the old one and hands you the difference as a lump sum.
Asset-based mortgage: a home loan where the lender looks at your documented assets, not your pay stubs or tax returns, to judge repayment ability.
Asset qualifier path: the route where eligible assets, after the credit percentages, must equal or exceed the entire loan amount.
Asset depletion path: the route where usable assets divided by 60 months become a monthly qualifying income, which then runs through the debt-to-income test.
Debt-to-income (DTI): your monthly debts divided by your monthly qualifying income.
Seasoning: how long money must sit in an account before a lender counts it.
Donor-advised fund: a charitable account you fund now and use to make grants to charities later.
How Underwriting Treats an Asset-Based File
This is a fully underwritten consumer mortgage. The assets are documented with statements. What you skip is tax returns, pay stubs and employment verification. A borrower is qualified on one path at a time, so the first decision is which path fits.
Path one: assets cover the whole loan
On the asset qualifier path, your eligible assets after the credit percentages must equal or exceed the entire loan. No employment or income is documented. Through select programs, loans reach up to $4,000,000, and the credit floor is a 600 score, subject to underwriting.
Leverage on this path is up to 80% loan-to-value on a purchase and 75% on a refinance, on a primary 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. Do not plan a gift around a qualifier-path cash-out figure until a lender confirms it in writing.
On the qualifier path, seasoning is 60 days, with two months of statements for each qualifying account. Reserves are not required at or below 75% loan-to-value. Above that, the lender sets them.
Path two: assets become income
On the asset depletion path, usable assets are divided by 60 months. The result is a qualifying income that must carry the housing payment and other debts through the debt-to-income test. Loans run from $125,000 to $3,500,000.
This path is the one that matters most for a gift funded by cash-out. It allows cash-out refinances on a primary residence, second home or investment property. Investment property is a business-purpose loan on this path. Leverage on a primary residence or second home is up to 80% on a purchase or rate-and-term refinance and 60% on a cash-out refinance. On an investment property it is up to 65% on a purchase or rate-and-term refinance and 60% on a cash-out refinance.
On the depletion path, statements must be at least 120 days old at application, plus a recent statement within 45 days. Funds from the sale of a business, an inheritance or a legal settlement are excused from that seasoning. The lender’s score and loan-amount matrix sets the credit requirement. A first-time investor on this path needs a 700 score.
When asset depletion is your only income source, minimum assets are the lesser of $1,000,000 or 1.25 times the loan balance, and never below $250,000 liquid. Asset income can also supplement documented income, up to a 45% debt-to-income ratio. In that case the minimum-assets rule is waived.
What counts, and how much
The percentages below are the share of each balance that counts toward qualifying.
| Asset | Qualifier path counts | Depletion path counts |
|---|---|---|
| Brokerage accounts / securities | 100% | 80% |
| Certificates of deposit | 100% | 100% |
| Money market and savings / cash accounts | 100% | 100% |
| Retirement accounts | 90% under 59½, 100% at 59½ or older | 70% at any age |
| Real-estate equity | Not listed | 60% |
On the qualifier path, accounts combine. Picture an $800,000 loan backed by $330,000 in brokerage accounts (100% counts, so $330,000), $300,000 in a 401(k) held under age 59½ (90% counts, so $270,000) and $200,000 in savings (100% counts, so $200,000). That is $800,000 of usable assets, which is reviewed on assets alone, subject to underwriting.
The depletion path runs on different math. Take $1,500,000 in securities (80% counts, so $1,200,000) plus $300,000 in cash (100% counts, so $300,000). That is $1,500,000 usable, divided by 60 months, which is $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. These are illustrations. The lender’s own calculation governs.
How Much Cash Can the Refinance Produce?
The cash is smaller than your equity, and the loan-to-value cap is the main reason. On a cash-out refinance under the depletion path, the new loan tops out at 60% of the appraised value. Your payoff, closing costs and any required reserves come out before you see a dollar.
So the first question for a donor is not how much equity the home holds. It is how much cash the capped loan leaves after the old mortgage is paid. A home with a large existing balance may leave little. A home with a small balance leaves more, though the cap still stops well short of full equity.
Two rules shape the plan:
- You cannot borrow cash, park it in an account and use it to qualify, because cash-out proceeds are excluded from qualifying assets.
- Pledged or borrowed funds are not eligible assets on either path. The lender reviews where every dollar came from.
The new payment also matters. A larger loan means a larger payment, and the donated dollars produce no income. On the depletion path, the payment has to fit inside the qualifying income your assets generate. Size the gift to that limit, not to the charity’s goal.
Order of Operations: Qualify First, Give Second
Statements decide what counts. If you move assets out of a qualifying account before the lender reviews it, that balance stops supporting the loan. Seasoned funds also have to stay documented through the review.
The cleaner sequence for most donors looks like this:
1. Choose the path and run the qualifying math on the balances you will keep.
2. Gather the statements that meet the seasoning rule for that path.
3. Get the lender’s written review of the loan before you promise a gift date to anyone.
4. Take the cash-out proceeds and give from those, so the accounts that qualified you stay intact.
The charity side needs its own paperwork. Per IRS Publication 526, a donor needs a written acknowledgement from the charity for a cash gift. A noncash gift above $5,000 generally also needs an appraisal. Tax treatment varies; consult a qualified professional.
Borrow, Sell or Give the Property: Three Routes
A cash-out refinance is one way to fund a gift. Most donors with real estate and large balances should price all three.
| Route | What happens | Main trade-off |
|---|---|---|
| Cash-out refinance, then cash gift | You keep the property and give cash | Permanent new debt and a larger payment |
| Give the property or a share of it | The charity receives real estate | Debt on the property complicates the gift |
| Sell, then give | You convert the property to cash | You lose the asset and its rent |
Giving appreciated property directly is a well-known strategy. Fidelity Charitable explains how donors can give appreciated assets instead of selling them. The catch is debt. DAFgiving360 notes that a gift of property that still carries a mortgage can trigger bargain-sale treatment, which can create some capital gain and reduce the deduction. That is the main reason many donors refinance first and give cash.
The trade-off is real. Refinancing keeps the property, but you carry the payment for the life of the loan. Gifting the property ends the payment but also ends the asset. Neither wins in every case, so the donor’s tax picture and goals decide it.
Where the General Rule Breaks
Privately held company stock is not an eligible asset on either path. The documented route is liquid assets: seasoned proceeds from a sale or conversion, cash, public securities and retirement accounts at the percentages above. On the depletion path, sale-of-business proceeds are excused from the usual seasoning.
Crypto, metals and collectibles. These 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.
Retirement accounts and age. On the qualifier path, a 401(k) or IRA counts at 90% under age 59½ and 100% at 59½ or older. On the depletion path, retirement accounts count at 70% at any age.
Credit and housing history. The housing history standard is 0x30x12. 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.
Rental property as collateral. If the property you would borrow against is a rental, the depletion path treats it as an investment property at up to 60% on a cash-out refinance. A separate business-purpose rental loan is reviewed primarily on property-level rental income covering the payment, subject to lender guidelines. That is a different program with different rules.
Not every lender reads it the same way. Some asset types, property types and loan sizes fit only certain lenders. This is why a broker that sees several guidelines can match a file faster than one lender’s rules can, though no outcome is promised.
What the Decision Looks Like in Practice
Picture a retired couple living on a portfolio. They hold substantial brokerage balances and a home with modest debt, and they want to fund a pledge to a hospital. Their documented income is small. Their balances are not.
They have two questions. First, do their assets carry the loan outright, or do they need the depletion path? Second, does the payment on a loan capped at 60% of the home’s value fit inside the income their assets generate? If the answer to the second question is tight, the pledge may need to be smaller, spread over years or paid partly by selling assets.
Now consider a founder who sold a company. The proceeds sit in cash, which counts at 100% on either path. If the sale was recent, depletion-path rules excuse that money from the usual seasoning. The founder’s biggest question is whether to borrow against the home at all, or simply give from the cash.
Three checks help any donor:
- Run the math on what you keep. Strip out the gift and the proceeds, then see what the remaining assets support.
- Match the gift to the payment. A gift that strains the new payment is a risk that lasts as long as the loan.
- Talk to your tax professional and the charity first. They should agree on the gift form before the loan application goes in.
Who should skip this? Donors with ample cash who can give without borrowing, and anyone whose balances sit mostly in private stock or other ineligible assets.
Many income-light borrowers also ask how these programs relate to alternatives built on income. Lendmire’s piece Top Asset-Based Cash-Out Refinance Providers With Non-Traditional Income covers that comparison. Details on how the loan is structured sit in Lendmire’s asset-based mortgage programs.
Your 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. Consumer mortgage lending through Lendmire is licensed in 16 states: Alabama, California, Colorado, Florida, Georgia, Indiana, Michigan, Montana, New Mexico, North Carolina, Ohio, Pennsylvania, Tennessee, Texas, Virginia and Washington. Programs change, and nothing here is a commitment to lend.
Frequently Asked Questions
Can I use a cash-out refinance to fund a large charitable gift?
Yes, the loan itself places no limit on what you do with the cash, subject to underwriting. Under the asset depletion path, a cash-out refinance reaches up to 60% loan-to-value on a primary residence, second home or investment property. The practical limit is whether your assets support the new payment. Tax treatment varies by donor, so the gift structure should be settled with a qualified professional first.
Do I need income to qualify?
Not in the usual sense. The asset qualifier path documents no employment or income, and the asset depletion path converts assets into qualifying income. Both paths still require full underwriting, with statements for every qualifying account, and your credit profile still counts.
Can my private company stock count toward qualifying?
No. If you hold a stake in a closely held business, the documented route is a sale or buyout converted into a seasoned cash balance. Cash then counts at 100% on either path.
Do retirement accounts count?
Yes, at reduced percentages. On the qualifier path, 401(k) and IRA balances count at 90% under age 59½ and 100% at 59½ or older. Withdrawals you make before applying lower the balance the lender can count.
Why not just give the property instead?
Giving the property keeps you out of new debt, but it ends your ownership. A property that still carries a mortgage can complicate the gift, since DAFgiving360 notes bargain-sale treatment can apply. Many donors compare the cash-out route against a direct gift before choosing, ideally with a tax professional.
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
As a mortgage broker (NMLS# 2371349), Lendmire helps self-employed and high-net-worth borrowers in 16 states qualify on bank statements, a profit-and-loss statement, 1099s or liquid assets instead of tax returns, through wholesale lenders. Lendmire is never the lender; program terms are set by the lender and its guidelines. Scotsman Guide named Lendmire a Top Mortgage Workplace in both 2025 and 2026.
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References
2. Fidelity Charitable: Charitable contributions tax strategies
3. DAFgiving360: Donating Real Estate
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 Lenders Underwrite an Asset-Based Cash-Out Refinance to Fund a Business Expansion · Best Asset-Based Cash-Out Refinance Program to Fund a New Construction Project · Can You Get Approved for an Asset-Based Cash-Out Refinance With No Income Verification?
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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Required disclosures. Lendmire (NMLS# 2371349) operates as a licensed mortgage broker, not a direct lender or depository. The discussion in this article is general in nature and should not be relied upon as financial, legal, or tax advice — every investment scenario is unique and should be reviewed by a qualified professional. Any loan inquiry is subject to lender underwriting, and this article is not a commitment to lend or a guarantee of approval. Mortgage rates, loan terms, and program guidelines vary by borrower, property, and state, and may change without notice. Equal Housing Opportunity. Verify licensure at NMLS Consumer Access.