The Quick Read: Asset-based cash-out refinancing tends to come from select non-bank and portfolio lenders rather than big retail banks, and the published cash-out leverage in Lendmire’s network sits on the asset depletion path, where usable assets divided by 60 months become qualifying income, subject to underwriting. The file is still fully underwritten. You document your balances with statements, and the lender collects no personal-income documents, pay stubs or employment verification.
- Two paths exist. On the asset qualifier path, your eligible assets must cover the entire loan, and no income is documented. On the asset depletion path, your assets are converted into monthly income.
- Cash-out leverage is published only for the depletion path, through select programs, and it covers a principal residence, a second home or an investment property.
- Cash-out proceeds never count as qualifying assets.
- Privately held company stock is not eligible on either path.
- A broker matters here because the programs sit with different lenders, and each one fits a different borrower.
This article is written for people whose balances are large and whose reportable income is small. That includes retirees, business sellers, heirs, people who settled a lawsuit, early-retired professionals and households that live off a portfolio. A bank’s income test can turn those borrowers down even when their net worth is strong.
Banks That Offer an Asset-Based Cash-Out Refinance: Who Actually Writes It?
Large retail banks mostly run income-and-debt underwriting built on pay stubs, tax returns and a debt-to-income test. Asset-based loans sit in the non-QM world, meaning mortgages that fall outside standard agency rules. Select non-bank lenders and a few portfolio banks write them. A portfolio bank keeps the loan on its own books instead of selling it.
Which lender writes your loan depends on your situation. The deciding factors are the property type, your credit profile, how much leverage you need, how your assets are held, and whether the money comes from cash, securities or retirement accounts. A broker shops several wholesale lenders and matches the scenario to the program. Lendmire is that kind of broker. It arranges these loans through select lenders in its network, and it does not lend. Its asset-based mortgage programs cover both paths described below.
Lendmire’s consumer mortgage lending is licensed in 16 states: Alabama, California, Colorado, Florida, Georgia, Indiana, Michigan, Montana, New Mexico, North Carolina, Ohio, Pennsylvania, Tennessee, Texas, Virginia and Washington. This program is limited to those 16 states.
If you vet any lender yourself, ask these questions:
- Does the program have two paths or only one, and which one is your file being run on?
- What share of each account type counts toward your qualifying assets?
- Does it allow cash-out on your property type, and at what leverage?
- How old must the statements be?
- What does it do with retirement accounts, and does age matter?
Key Terms Defined
Asset-based mortgage. A home loan qualified on the borrower’s documented assets instead of employment income.
Asset qualifier path. The loan is approved on assets alone. Eligible assets, after the credit percentages, must equal or exceed the entire loan amount.
Asset depletion path. Usable assets are divided by 60 months to produce monthly qualifying income. That income then runs through the debt-to-income test.
Debt-to-income (DTI). The share of your monthly income that goes to housing and other debts.
Seasoning. The period your money must have sat in the account before the lender counts it.
Cash-out refinance. A new, larger mortgage that pays off the old one and hands you the difference in cash.
Rate-and-term refinance. A refinance that changes the loan’s terms without taking cash out.
The Two Paths Side by Side
Both paths are asset-based. They test different things, and a borrower is qualified on one path at a time. The figures below apply to select programs and are subject to underwriting.
| Factor | Asset qualifier path | Asset depletion path |
|---|---|---|
| Core test | Assets cover the whole loan | Assets become monthly income |
| Income documented | None | Derived from assets |
| Property types | Principal residence, second home | Also investment property |
| Loan size | Up to $4,000,000 | $125,000 to $3,500,000 |
| Credit | 600 minimum score | The lender’s matrix |
| Seasoning | 60 days, two months of statements | Statements 120+ days old, plus one within 45 days |
The qualifier path suits a borrower whose balances equal or exceed the loan. The depletion path suits a borrower whose assets are large but fall short of the full loan. It also suits anyone who needs a cash-out loan with published leverage.
How Underwriting Treats an Asset-Based Cash-Out, Step by Step
Step 1: Pick the path. The broker compares your total usable assets to the loan amount. If usable assets equal or exceed the loan, the qualifier path is open. If not, depletion may fit.
Step 2: Apply the credit percentages. Each account counts at a share of its balance. A brokerage account on the qualifier path counts at 100%. A securities account on the depletion path counts at 80%. The part that does not count is the haircut.
Step 3: Season and document the money. The lender reads the statements and checks where the funds came from. On the qualifier path that means 60 days of seasoning and two months of statements for each account. The depletion path wants statements at least 120 days old at application, plus the most recent one within 45 days. Funds from a business sale, an inheritance or a legal settlement are excused from that 120-day seasoning on the depletion path, though the lender still reviews their source with documents.
Step 4: Compute the qualifying figure. On the qualifier path, the test is whether usable assets cover the loan. On the depletion path, usable assets are divided by 60 months, and that income carries the housing payment and other debts through the DTI test.
Step 5: Review credit and housing history. 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 700. Housing history is 0x30x12, although 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.
Step 6: Underwrite the property. The appraisal, title and occupancy are all reviewed as on any mortgage. Leverage limits come from the path and the property type.
This is not a no-documentation loan. The lender documents your assets and your credit. It does not collect tax returns, pay stubs or employment verification.
Which Assets Count, and Which Do Not
Each path uses its own table, so never mix them. The numbers below are the share of the balance that counts, subject to underwriting.
| Asset | Qualifier path | Depletion path |
|---|---|---|
| Brokerage accounts | 100% | Securities at 80% |
| Cash, savings, money market | 100% | Cash accounts at 100% |
| Certificates of deposit | 100% | 100% |
| 401(k) and IRA | 90% under 59½; 100% at 59½+ | 70% at any age |
| Real-estate equity | Not published | 60% |
On the qualifier path, accounts combine. On the depletion path, these are not eligible: 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.
Cryptocurrency, precious metals, collectibles, pledged or borrowed funds, and business accounts beyond your ownership share are not published as eligible on either path. The documented route is to convert them into a seasoned cash balance in a regulated account. The lender then reviews the source of the money.
A founder or shareholder qualifies by documenting liquid assets. That means seasoned proceeds from a sale or buyout, cash, public securities and retirement accounts, each at its own share.
Cash-Out on Assets: Leverage, Proceeds and Occupancy
Cash-out leverage depends on the path, so be precise.
On the asset depletion path, a cash-out refinance of a principal residence or second home goes up to 60% loan-to-value, through select programs. A cash-out refinance of an investment property also goes up to 60%. A purchase or rate-and-term refinance of a principal residence or second home goes up to 80%. For an investment property it goes up to 65%.
On the asset qualifier path, a purchase of a principal residence or second home goes up to 80% loan-to-value, and a refinance goes up to 75%. Whether cash-out proceeds are allowed on that path, and at what leverage, is set by the lender and is not published. Ask for it by name rather than assuming.
The equity you already own is the limit. A 60% ceiling means a borrower who owes more than 60% of the home’s value has no cash-out room on the depletion path.
Investment property has two special features. It is eligible only on the depletion path. The loan is also business-purpose. Business-purpose investor loans are reviewed differently from a standard owner-occupied mortgage. The federal ability-to-repay rule treats investment-purpose loans as business-purpose, as the Federal Register notice explains. Business purpose does not mean exempt from every rule, though. A law-firm analysis from Hunton Andrews Kurth notes that some states still require licensing regardless of purpose.
A loan on a principal residence or second home is a consumer mortgage, and consumer disclosure rules apply to it.
Two Worked Examples
These are illustrative only. The lender’s own calculation governs.
Qualifier path. Say the loan is $800,000. You hold $330,000 in brokerage accounts, which count at 100% for $330,000. You hold $300,000 in a 401(k) and you are under 59½, so it counts at 90% for $270,000. You hold $200,000 in savings, which counts at 100% for $200,000. Together that is $800,000 of usable assets, which covers the whole loan, so the file is reviewed on assets alone, subject to underwriting. No reserves are required at or below 75% loan-to-value.
Depletion path. Say you hold $1,500,000 in securities, which count at 80% for $1,200,000, plus $300,000 in cash at 100%. Usable assets total $1,500,000. 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.
The depletion path also has minimums. Qualified assets must be at least the lesser of $1,000,000 or 1.25 times the loan balance. They can never fall below $250,000 liquid when asset depletion is your only income source. If you also have documented income, asset-derived income may supplement it up to a 45% debt-to-income ratio, and the minimum-assets rule is waived.
The depletion is a calculation, not a withdrawal. Your assets stay invested.
Where the General Rule Breaks
Retirement accounts and age. On the qualifier path, a 401(k) or IRA counts at 90% if you are under 59½ and at 100% from 59½ on. On the depletion path it counts at 70% at any age. The same balance can therefore carry very different weight depending on the path.
Real-estate equity. Equity in other property counts only on the depletion path, at 60%. It is not published as eligible on the qualifier path.
First-time investors. Buying or refinancing an investment property on the depletion path needs a 700 score if you have never owned one.
Occupancy. A property you plan to occupy more than 14 days in the coming year is treated as consumer-purpose, with exceptions for properties of more than two units, according to Doss Law’s business-purpose guide. The same guide notes that your signed statement of purpose is one factor in that test. A loan on a principal residence or second home on the depletion path is a consumer loan. The lender must then document your repayment ability using the asset-derived income.
Funds that look like assets but are not. Pledged or borrowed money, crypto and collectibles are not published as eligible. Convert and season them first.
Small portfolios. The depletion path’s $250,000 liquid floor knocks out borrowers whose assets are real but modest.
Alternatives to an Asset-Based Cash-Out
Asset-based financing is not always the right tool. These are general descriptions of other products, not rules of this program.
| Option | What it does | Main trade-off |
|---|---|---|
| Sell assets | Raises cash with no new debt | May trigger gains, loses the holding |
| HELOC | Opens a line against home equity | Often needs personal-income and DTI review |
| Credit line secured by a portfolio | Borrows against investments | Collateral can be called if values fall |
| Asset-based cash-out | Converts assets into qualifying income | Lower cash-out leverage; assets must be documented |
Selling investments avoids borrowing but can create a taxable event. 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.
A cash-out refinance also replaces your existing mortgage with a larger one, so your monthly obligation will be larger. Weigh that before you choose it over a smaller, targeted draw.
What to Prepare Before You Apply
- Statements for every account you want counted, matching the seasoning of your path.
- Documentation of where large recent deposits came from, such as a sale, inheritance or settlement.
- Identification of any privately held stock or crypto, plus a plan to convert it to seasoned cash if you need it counted.
- A recent look at your credit and your housing payment history.
- A target loan amount and the leverage that your property type allows on the path you choose.
Bring those items early, and the broker can show you which path fits before you commit to an appraisal.
Frequently Asked Questions
Do I have to sell my investments to use them?
No. On the depletion path, the lender divides your usable assets by 60 months to produce qualifying income. That is a modeling step, not a withdrawal. Your investments stay in place and keep their market exposure, and the lender reviews them through statements.
Does privately held company stock count?
No. Privately held company stock is not an eligible asset on either path. If you own a company and want to use its value, the documented route is a sale or buyout. The proceeds become a seasoned cash balance, which counts at 100% as cash. Public securities and retirement accounts count at their own shares.
Can the cash I take out count toward qualifying?
No. Cash-out proceeds never count as qualifying assets on the depletion path. The loan must qualify on the assets you already hold. The cash is yours to use, but it does not count toward the test.
Can I combine asset income with other income?
Yes, on the depletion path. Asset-derived income may supplement documented income, such as a pension or Social Security, up to a 45% debt-to-income ratio. When it supplements, the minimum-assets rule is waived. The details depend on the program and on underwriting.
Which path should I choose?
If your eligible assets cover the whole loan, the qualifier path asks for no income documents at all. If they do not, the depletion path turns assets into income. Cash-out leverage is published only on the depletion path. Your broker can run both and show you where your file lands.
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 how equity extraction works on an investment property, see 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
1. Federal Register – Ability-to-Repay and Qualified Mortgage Standards Final Rule
2. Hunton Andrews Kurth – Beware: Business Purpose Regulatory Implications for Investment Mortgages
3. Doss Law – Business-Purpose Exemption Simplified
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 With No Income Verification · Best Asset-Based Cash-Out Refinance Program for a Retiree Without Employment Income · 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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Disclosure information. Lendmire is a state-licensed mortgage brokerage under NMLS# 2371349. Lendmire is not a depository institution, direct lender, or financial advisor — all loans referenced are placed through wholesale lender partners and are subject to each lender's underwriting standards. This article is provided for general informational purposes and is not a commitment to lend, nor does it constitute financial, legal, or tax advice. Loan programs, terms, rates, and qualification standards change without notice and depend on borrower profile, property type, and the state in which the subject property is located. Equal Housing Opportunity provider. NMLS Consumer Access: nmlsconsumeraccess.org.