The Quick Read: This page does not rank providers, because the right program depends on your statements, your property, your credit and your leverage, but the mechanics are the same everywhere: eligible assets either cover the whole loan outright or convert into monthly qualifying income, and cash-out proceeds never count as qualifying assets. Lendmire is a mortgage broker, not a lender. It shops select wholesale lenders in its network and matches the file to the program that fits.
- The asset qualifier path covers the loan with eligible assets and documents no employment or income.
- The asset depletion path divides usable assets by 60 months to create qualifying income.
- On the depletion path, cash-out is limited to 60% loan-to-value, subject to underwriting.
- Every file is fully underwritten, and assets are proven with statements.
- Privately held company stock is not an eligible asset on either path.
What Is an Asset-Based Cash-Out Refinance?
An asset-based cash-out refinance replaces your current mortgage with a larger one and pays you the difference. The loan is qualified on your savings and investments instead of a paycheck. Lendmire arranges these loans through asset-based mortgage programs placed with select lenders in its wholesale network.
The term “asset-based” gets used for two different things, so it helps to separate them. Here it means the borrower’s own assets carry the file. Some lenders also use it for rental loans where the property’s rent carries the payment. That is a different product with different rules, and it is not what this page covers.
This program is built for a cash-heavy, income-light reader. Think of a retiree living on a portfolio, someone who sold a business, or a household that received an inheritance or settlement. Balances are large and documented income is modest. Consumer lending under 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.
Programs change, and every file is underwritten individually. Nothing here is a commitment to lend.
Which Path Fits a Retiree on a Fixed Income?
The first decision is which of two paths your file runs on. A borrower is qualified on one path at a time, and the two paths use different asset percentages, so the tables never blend.
| Factor | Asset qualifier path | Asset depletion path |
|---|---|---|
| Core test | Assets cover the entire loan | Assets become monthly income |
| Income documented | None | Derived from assets |
| Loan amounts | Up to $4,000,000 | $125,000 to $3,500,000 |
| Refinance leverage | Up to 75% on a refinance; cash-out set by the lender and not published | 60% on a cash-out |
| Credit | 600 minimum | The lender’s matrix |
The qualifier path suits a retiree whose liquid assets equal or exceed the whole new loan. The loan is sized to the assets, so a modest balance on a large house will not clear it. The 75% figure is the qualifier path’s refinance leverage. Whether cash-out proceeds are allowed on this path, and at what leverage, is set by the lender and is not published. Ask your broker before you build a plan around it.
The depletion path suits a retiree whose assets are large but do not cover the entire loan. Here the assets are turned into income, and that income has to carry the full housing payment and other debts. A fixed income helps on this path. Asset-derived income may supplement documented income such as Social Security or a pension, up to a 45% debt-to-income ratio. When it supplements, the minimum-assets rule is waived, subject to underwriting.
How Underwriting Treats Your Assets, Step by Step
1. Pick the path. The broker reviews your balances and the loan amount you need, then decides which path fits.
2. Apply the percentages. Each account type counts at a set share of its balance. Accounts of the same kind combine.
3. Season the funds. The statements must show the money has been sitting in your accounts.
4. Test the result. On the qualifier path, usable assets must equal or exceed the loan. On the depletion path, usable assets divided by 60 months become income that runs through the debt-to-income test.
5. Review credit, property and leverage. The lender checks the score, housing history, appraised value and the loan-to-value ceiling for your transaction.
Seasoning differs by path. On the qualifier path, funds 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. Funds from the sale of a business, an inheritance or a legal settlement are excused from that seasoning on the depletion path.
Credit rules apply too. The qualifier path has a 600 minimum score. The depletion path follows the lender’s score and loan-amount matrix, 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 four years of seasoning on the depletion path.
What Counts, and at What Percentage
The percentage shows the share of the balance that counts. The rest is the haircut, the part lenders set aside. These are ceilings and floors from select programs, not offers.
Qualifier path:
- Brokerage accounts, certificates of deposit, money market and savings count at 100%.
- 401(k) and IRA balances count at 90% under age 59½ and at 100% at 59½ or older.
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%.
Some holdings do not count at any percentage. 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 are not eligible. On both paths, cryptocurrency, precious metals, collectibles, and pledged or borrowed funds are not published as eligible, and privately held stock is not eligible either. The documented route for those holdings is to convert them to a seasoned cash balance in a regulated account, and for privately held stock that means a sale or buyout. The lender reviews the source of those funds.
Retirement accounts deserve one more note. A withdrawal to fund a down payment or reserves can have tax consequences. Tax treatment varies; consult a qualified professional.
Two Worked Examples
These examples show the arithmetic shape. The lender’s own calculation governs, and every figure is subject to underwriting.
Qualifier path. Say a borrower wants an $800,000 loan. She holds $330,000 in brokerage accounts, which count at 100% for $330,000. She also has $300,000 in a 401(k) while under 59½, which counts at 90% for $270,000. Her savings of $200,000 count at 100%. That totals $800,000 of usable assets, which equals the loan, so she is reviewed on assets alone with no income documented.
Depletion path. Consider a retired couple with $1,500,000 in securities and $300,000 in cash. After the haircut, the securities count at 80%, or $1,200,000, while the cash counts at 100%, or $300,000. Together that is $1,500,000 of usable assets. Divided by 60 months, the qualifying income is $25,000 a month. That income then has to carry the housing payment and other debts through the debt-to-income test. If depletion is their only income source, the couple also has to meet the depletion minimums. Qualified assets must be at least the lesser of $1,000,000 or 1.25 times the loan balance, and never below $250,000 liquid. If the asset income instead supplements documented income, such as Social Security or a pension, the minimum-assets rule is waived, subject to underwriting.
Taking cash out does not make you look wealthier on paper.
Where the General Rule Breaks
Several situations fall outside the normal pattern. Each one changes the plan.
Privately held company stock. Privately held company stock is not an eligible asset on either path. A founder or shareholder qualifies through documented liquid assets instead. That means seasoned proceeds from a sale or conversion, cash, public securities and retirement accounts at their percentages.
Crypto, metals and business accounts. These follow the same logic. The route is a conversion to a seasoned cash balance in a regulated account.
Fixed income from Social Security or a pension. Documented income of this kind can sit alongside asset income on the depletion path, up to the 45% debt-to-income limit. It does not help the qualifier path, which tests assets only.
Investment property. The depletion path can finance an investment property at up to 65% on a purchase or rate-and-term refinance and 60% on a cash-out. Because the loan is business-purpose, it is reviewed differently from a standard owner-occupied mortgage. The OCC’s Comptroller’s Handbook on the Truth in Lending Act lists credit extended primarily for a business purpose among the transactions exempt from Regulation Z. How you plan to use the proceeds still matters. A law firm’s guide on the business-purpose exemption notes that a cash-out taken for personal purposes can fall under consumer rules even when the collateral is a rental. Confirm your situation with counsel.
Principal residence or second home. These are consumer loans. The CFPB’s ability-to-repay final rule requires a good-faith determination of repayment ability on these loans. On the qualifier path that review rests on the assets. On the depletion path it rests on the derived income. TRID disclosures apply to this consumer mortgage.
The no-income misconception. No traditional personal-income documentation, pay stubs or employment verification are needed on these paths. That is not the same as no documentation. Every file is fully underwritten, and assets are proven with statements.
Cash-out leverage versus purchase leverage. The depletion path allows 80% on a principal residence or second-home purchase or rate-and-term refinance. A cash-out on the same property stops at 60%. A retiree with a paid-off house has the most room. A retiree with a large existing balance may find the 60% ceiling leaves little or nothing to pull.
How to Judge a Provider Without a Ranking
A ranked list would mislead you. The lenders that write this product vary by property type, credit profile, leverage need and documentation. The program that fits you may not fit your neighbor. A broker shops multiple wholesale lenders and matches the scenario, which is the practical reason to start there instead of with a single lender’s page.
Use this checklist when you compare any provider or broker:
- Path clarity. Does the provider say which path your file runs on and why?
- Asset percentages. Do they show how each of your accounts will count before you apply?
- Leverage for your transaction. Do they name the ceiling for a cash-out on your occupancy type, instead of quoting a purchase figure?
- Seasoning fit. Do your statements meet the seasoning rules, or does a recent sale of a business need the excused treatment?
- Underwriting honesty. Do they describe the file as fully underwritten, and avoid promises of approval?
- Role. Is the firm a lender or a broker, and does it say which?
Is Cash-Out Safe on a Fixed Income?
Cash-out raises your balance, and a fixed income cannot grow to meet it. Before you commit, run a stress test. Ask what the larger payment does to your monthly budget if investment returns drop and your portfolio shrinks. Assets that qualify you today can be worth less at renewal, and the loan does not shrink with them.
Compare the main ways to reach the same cash:
| Option | How it works | Fixed-income caution |
|---|---|---|
| Asset-based cash-out refinance | Replaces the loan, qualified on assets | Larger balance, 60% ceiling on depletion path |
| Home equity line of credit | A second lien on the home | Adds a second payment |
| Reverse mortgage | Draws equity with no monthly payment under that program’s rules | Balance grows over time |
| Portfolio withdrawal | Sell assets for cash | May trigger a tax bill and shrink future income |
| Documented-income cash-out | Reviewed on pension and Social Security | Income must meet that program’s tests |
The reverse mortgage and home equity line of credit are described here by their own rules, not this program’s. A conventional or full-documentation jumbo cash-out may fit a retiree whose pension and Social Security already pass a standard income test. In that case the asset route adds little. If your fixed income is modest against the payment, an asset path is more likely to fit.
What to Prepare
Gather these before you talk to a broker:
- Two months of statements for every account you plan to use, and statements at least 120 days old if you are on the depletion path.
- A recent statement within 45 days of application.
- Documentation of any sale, inheritance or settlement proceeds that fund the accounts.
- Property details and your current mortgage statement.
- A short note on how you plan to use the proceeds.
- Documented pension or Social Security income if you want it to supplement asset income.
Key Terms Defined
Asset qualifier path: The route where eligible assets, after the credit percentages, must equal or exceed the entire loan.
Asset depletion path: The route where usable assets are divided by 60 months to create monthly qualifying income.
Haircut: The part of an asset balance that does not count toward qualifying.
Seasoning: The length of time funds must have been in your accounts, shown on statements.
Cash-out refinance: A new, larger mortgage that pays off the old loan and gives you the difference.
Debt-to-income ratio: The share of monthly income that goes to the housing payment and other debts.
Next Steps
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 to talk it through.
Frequently Asked Questions
Can a retiree use a 401(k) or IRA to qualify?
Yes, through select programs. On the asset qualifier path, retirement balances count at 90% under age 59½ and at 100% at 59½ or older. On the asset depletion path they count at 70% at any age. Eligibility is subject to underwriting.
Does the cash I take out help me qualify?
No. Proceeds from a cash-out refinance are never counted among your qualifying assets, so the new cash does not strengthen the file.
How much can I pull out on the depletion path?
On the asset depletion path, cash-out leverage tops out at 60% loan-to-value on a principal residence, second home or investment property. The ceiling comes from the program, and your payoff balance and appraised value decide how much room remains. Underwriting sets the final amount.
Do I need to show pay stubs or tax returns?
No traditional personal-income documentation, pay stubs or employment verification are required on either path. The file is still fully underwritten, and you prove your assets with account statements. The lender reviews credit, the property and the source of your funds.
Can I use a retirement-income stream and assets together?
On the depletion path, yes. Asset-derived income may supplement documented income such as a pension or Social Security, up to a 45% debt-to-income ratio.
About Lendmire
Lendmire (NMLS# 2371349) is a mortgage broker licensed for consumer lending in 16 states. Bank statement, P&L-only, 1099-only and asset-based mortgages for self-employed and high-net-worth borrowers are arranged through wholesale lenders on primary residences, second homes and investment properties; every file is underwritten by the lender under its program guidelines. Scotsman Guide named Lendmire a Top Mortgage Workplace in both 2025 and 2026.
For how equity extraction works on an investment property, see Lendmire’s guide to cash-out refinance on an investment property.
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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. OCC Comptroller’s Handbook, Truth in Lending Act
2. Doss Law: Business Purpose Exemption Simplified
3. CFPB Ability-to-Repay final rule
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 With High Equity and Low Income · Top Asset-Based Cash-Out Refinance Providers to Pay College Tuition
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
Compliance and disclosures. Lendmire (NMLS# 2371349) is a licensed mortgage broker and is not a direct lender, depository institution, financial advisor, or tax professional. Content in this article is general market analysis and educational information — not financial, legal, or tax advice for any specific situation. Lendmire does not guarantee loan approval; every transaction is subject to underwriting by the funding lender. Mortgage pricing and loan program guidelines are subject to change at any time without notice and vary by borrower characteristics, property type, and state regulations. Lendmire complies with Equal Housing Opportunity. Licensure verification: NMLS Consumer Access.