The Quick Read: Large retail banks rarely advertise asset-based income for a big cash-out loan, so the programs that accept it sit mostly with private banks, specialty non-bank lenders, and the wholesale lenders a broker can reach, and each one sets its own rules for which assets count and whether cash-out is allowed. Asset depletion means a lender converts your eligible liquid assets into a notional monthly income. You do not sell or pledge those assets.
- Cash-out ceilings across the programs Lendmire places files with top out at 75% loan-to-value (LTV, the loan as a share of the home’s appraised value) on a primary residence, a second home, and an investment property.
- The asset-depletion path on a primary residence falls within those limits, though some lenders set a lower cash-out limit on it.
- Occupancy decides which path fits. A rental property usually points toward a rent-based DSCR loan instead.
- Loan sizes in the network run roughly $125,000 to $3,500,000, with reserves commonly around six months of the housing payment. All of this is subject to lender guidelines.
Key Terms Defined
Asset depletion: a lender method that divides eligible liquid assets over a set number of months to produce a monthly income figure for qualifying.
Jumbo loan: a mortgage larger than the annual conforming limit, which is the size cap for loans the big mortgage agencies can buy.
Cash-out refinance: a new, larger loan that pays off the old mortgage and hands you the difference.
Debt-to-income ratio (DTI): your monthly debts, including the new housing payment, divided by your monthly income.
Reserves: liquid money left over after closing, usually counted in months of the housing payment.
Non-QM: a loan that falls outside the standard agency mortgage box, so each lender writes its own guidelines.
Business-purpose loan: credit used to buy, improve, or maintain a rental property rather than a home you live in.
DSCR loan: a rental-property loan that qualifies primarily on property-level rental income covering the payment, subject to lender guidelines.
Which Banks Offer a Jumbo Cash-Out Refinance on Asset Depletion Income?
No single list of banks answers this, because availability depends on the lender, the program path, and the occupancy type rather than on the institution’s name. A program may allow asset depletion for a purchase but bar it on cash-out. Another may allow cash-out only on one asset path.
That is why the useful question is who writes this kind of loan, not which brand does. Four lender types come up.
| Lender type | Asset-depletion cash-out? | What to ask |
|---|---|---|
| Large retail banks | Seldom advertised | Do you write jumbo cash-out on assets? |
| Private banks | Often for existing clients | Is a relationship or deposit required? |
| Specialty non-bank lenders | Program-specific | Which asset path allows cash-out? |
| Wholesale lenders via a broker | Varies by lender | Which program fits my file? |
Wholesale lenders, the last type in the table, sell their programs through brokers.
Lendmire is a mortgage broker, not a lender. It works with a network of wholesale lenders, so one application can be matched to the program whose rules fit your assets, property, and goals. The best program for your situation depends on your occupancy, credit profile, leverage need, and how your assets are held. Owner-occupied alt-doc programs through Lendmire are available in 16 states.
Why jumbo changes the picture
Jumbo means the loan is above the conforming limit. Per Orrick’s summary of the annual limit announcement, the one-unit baseline is $832,750, and the high-cost ceiling is $1,249,125. Calculated Risk notes that ceiling is 150 percent of the baseline and puts the four-unit limit at $1,601,750.
Above those lines there is no agency fallback. Each lender writes its own asset rules, so guidelines differ more from one lender to the next than they do on smaller loans.
How Underwriting Treats Asset Depletion, Step by Step
A lender picks which of your assets count, trims them, subtracts what the deal will consume, spreads the rest over a set number of months, and tests the result against your debts. The divisor and the trims drive the outcome more than anything else. Here is the sequence.
1. Transaction check. The lender confirms the new loan is jumbo and that it is a cash-out, meaning the loan pays off the old lien and returns the difference.
2. Occupancy check. Primary home, second home, or rental. This sets the whole path, and the occupancy section below covers it.
3. Asset inventory. You provide recent statements. Cash, brokerage accounts, and retirement accounts are the usual candidates. Equity in real estate is generally not an eligible asset.
4. Haircuts and deductions. Lenders commonly discount some asset types, such as volatile or restricted holdings. They also commonly subtract the down payment, closing costs, and required reserves from the pool.
5. Divide by the depletion period. The remainder over the lender’s chosen number of months is your notional monthly income. A longer period produces less income, and a shorter one produces more. There is no universal divisor. Each lender sets its own.
6. Add other income and run DTI. Pension, Social Security, or documented business income can sit alongside the asset income. The lender then tests your debts, including the new housing payment, against the total.
7. Check the cash-out interplay. Some programs count proceeds left after payoffs as eligible assets, subject to program and reserve rules. Others bar cash-out on the depletion path altogether.
8. Appraisal and leverage cap. The property is appraised, and the LTV ceiling for your occupancy type caps the loan.
9. Documentation. Expect recent statements, source records for large deposits, and proof of ownership.
The federal repayment-ability rule sets no depletion divisor and no debt-ratio cap. The CFPB’s compliance guide says a lender must weigh DTI or residual income, but it sets no thresholds, and it requires reasonably reliable third-party records. So your statements carry real weight, and the divisor is a lender choice rather than a national number.
What Cash-Out Adds to the File
Cash-out narrows leverage and adds scrutiny. Across the programs Lendmire places files with, owner-occupied cash-out on a primary residence goes up to 75% LTV with a fixed expense ratio on bank-statement documentation. An accountant-prepared ratio reaches the same 75% ceiling on cash-out. A second home goes up to 75% LTV on a cash-out. Investment-property cash-out tops out around 75% LTV. Final terms depend on the lender’s guidelines, the property type, and the borrower’s complete credit picture.
The 90% figure you may see for primary-residence programs applies to purchases and rate-and-term refinances, not to cash-out. Asset-depletion programs generally follow the same pattern. They often sit at or below the program ceiling on cash-out, and lender sheets decide the exact number.
Two cash-out questions deserve a direct answer before you apply.
Does the cash you receive count as an asset? On some programs it does, after payoffs, subject to reserve rules. On others it does not. Ask this before you size the loan, because it changes how much asset income the file can show.
How much cash can you actually take? The appraisal sets the value, the LTV ceiling sets the cap, and the existing payoff comes off the top. Reserves still have to remain after closing.
Think of reserves as a second test. The six-month reserve figure commonly seen on these programs is measured against the new housing payment. A borrower with plenty of assets but most of them earmarked for the pool may find the same dollars cannot serve as both income and reserves.
Occupancy Decides Which Rules Apply
Asset depletion is built for owner-occupied homes, meaning a primary residence or second home. Owner-occupied files are consumer mortgages, so consumer disclosure rules (TRID) apply to them. A cash-out on a non-owner-occupied rental, including a short-term rental, is a different animal.
DSCR loans are designed for non-owner-occupied investment properties. Because they are business-purpose investor loans, they are reviewed differently from a standard owner-occupied mortgage, and they are exempt from TRID. The CFPB’s rule on exempt transactions treats credit to acquire, improve, or maintain a non-owner-occupied rental as business purpose, whatever the unit count. The same page sets different unit thresholds when you plan to live in the property, so a small multi-unit home you occupy follows other rules.
Keep the two regimes separate in your planning. A file is one or the other, and mixing them is how borrowers end up chasing a program that does not fit the property.
A few edge cases sit inside the owner-occupied lane.
- Retirement accounts. Some programs treat these differently from brokerage accounts. Age, access, and how the lender counts the balance vary by lender.
- Vesting. Depletion paths usually qualify you as an individual and offer limited flexibility for LLC ownership. DSCR programs often allow entity vesting, subject to lender program eligibility.
- Home equity. The equity in the home you are refinancing does not count as an asset. Equity is what you are borrowing against.
- Combined income. Asset income can sit next to documented income on many programs, so a borrower with a pension and a brokerage account is not forced to pick one.
When a Rental Cash-Out Points to DSCR Instead
A rental owner with a large portfolio and modest taxable income may fail a personal debt-ratio test, even with serious wealth behind the file.
DSCR also scales differently. Asset depletion draws on your personal balance sheet, and existing mortgages on other rentals feed into your debt ratio. A DSCR loan looks at one property at a time, comparing monthly rent with the full monthly obligation. Your assets still matter, but they show up as reserves and liquidity rather than as income. Lendmire’s complete DSCR loans guide walks through that test in detail.
On leverage, investment-property cash-out through Lendmire’s network tops out around 75% LTV. Some programs in the network review properties with coverage below 1.00, though LTV and terms adjust when they do. Extended-term and interest-only structures belong to the DSCR side. Alt-doc terms follow each lender’s own program sheet, so do not assume a long-term or interest-only bank-statement loan exists. Each figure is subject to lender guidelines and a complete review of property type, leverage, and credit.
If your assets are the story, Lendmire’s piece Banks That Offer an Asset-Based Cash-Out Refinance With No Income Other Than Assets covers the asset-only side of this topic.
Which Path Fits Your File?
| Path | Reviewed on | Best fit |
|---|---|---|
| Asset depletion | Liquid assets spread over months | Asset-rich, income-light owner-occupant |
| Bank-statement loan | 12 months of deposits | Self-employed owner-occupant |
| DSCR loan | Property rent vs. payment | Non-owner-occupied rental |
| Conventional jumbo | Tax returns and W-2s | Steady, fully documented income |
The bank-statement path is reviewed on documented income under the applicable program, subject to lender guidelines. Lenders average 12 months of business or personal deposits and apply their own expense factors. No one should promise you a specific factor or formula in advance. The same applies to asset depletion.
A conventional jumbo remains worth comparing if your tax returns show strong income. It simply asks for a different kind of file. Lendmire’s piece Banks That Offer an Asset-Based Cash-Out Refinance With Liquid Assets Instead of Income goes deeper on how the asset side compares.
Three Borrower Pictures
The retiree. Picture a homeowner with a large retirement and brokerage balance, a paid-down home, and little current earned income. Asset depletion fits the profile because the balance sheet is the strength. The open questions are how the lender treats the retirement accounts and whether cash-out is allowed on that path.
The business seller. Say you recently sold a company and hold the proceeds in liquid accounts. Your tax returns show a sharp drop in income, but your assets are large. A lender that accepts asset depletion can qualify the file on those holdings, subject to seasoning and reserve rules.
The equity-rich, income-light rental owner. Consider an investor whose depreciation and write-offs shrink taxable income on paper. If the cash-out is on the home they live in, asset depletion can fill the gap. If it is on a rental, the file usually belongs on the DSCR side, with assets serving as reserves.
What to Gather and What to Ask
Statements are the center of the file. Gather the following before a conversation:
- Recent statements for every account you want counted, with all pages included.
- Source records for any large deposit.
- Proof of ownership and a current mortgage statement on the property.
- A list of your other monthly debts.
- Records of any other income, such as a pension.
Then ask each lender or broker the same questions:
- Does this program allow cash-out on the asset path?
- Which assets count, and at what discount?
- What depletion period do you use?
- Do cash-out proceeds count toward the asset pool?
- How many months of reserves must remain?
- What is the leverage ceiling for my occupancy type?
The answers vary by program, so asking the same list of every option is the cleanest way to compare.
Frequently Asked Questions
Can a jumbo cash-out refinance really be qualified on assets alone?
On some programs, yes. Others require the asset path to be paired with documented income, or they bar cash-out on the asset path entirely. Check cash-out eligibility on the specific program, not at the institution level.
Does asset depletion mean I have to sell my investments?
No. The depletion is notional. The lender uses your assets to calculate an income figure for qualifying, and you keep the accounts. Assets are not liquidated or pledged as collateral.
Why do big banks not list this option?
Large retail banks usually run jumbo cash-out through standard income documentation, and they do not market the asset-based variation widely. Private banks, specialty lenders, and wholesale programs are where it more often appears. A broker can compare several of those at once.
Can I use this to pull cash out of a rental property?
Usually not through asset depletion. A rental cash-out is typically a business-purpose loan that qualifies primarily on property-level rental income covering the payment, subject to lender guidelines.
How much cash can I take out on a primary residence?
Cash-out on a primary residence goes up to 75% LTV on the network’s alt-doc programs, whether they use a fixed expense ratio or an accountant-prepared ratio. A second home also goes up to 75% LTV. Asset-depletion programs may sit below those ceilings, and every file is underwritten individually. Leverage, reserves, and pricing vary by lender and program; the final terms follow the full file review.
If Your Assets Are Bigger Than Your Paycheck
If you hold substantial liquid assets and want to see how the numbers work, Lendmire can help you compare asset-based and bank-statement options based on your assets, the property, credit profile, leverage, and your goals. You can reach the team at 828-256-2183. Lendmire is a mortgage broker that arranges financing through select lenders in its wholesale network. Qualification is subject to lender guidelines, and nothing here is a commitment to lend.
Whether asset depletion applies to your file depends first on occupancy: whether the home is one you live in or a rental.
Investors weighing their equity options can start with Lendmire’s guide to cash-out refinance on an investment property.
For current guidelines and terms, see Lendmire’s self-employed mortgage programs page.
About Lendmire
Lendmire (NMLS# 2371349) is a mortgage brokerage serving self-employed and high-net-worth borrowers in 16 states. Bank statement, P&L-only, 1099-only and asset-based mortgages are arranged through wholesale lending channels; Lendmire brokers the financing and the lender underwrites each application. 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. Orrick’s summary of the annual limit announcement
3. CFPB – Ability-to-Repay and Qualified Mortgage Small Entity Compliance Guide
4. CFPB – Regulation Z §1026.3, exempt transactions
This article is part of Lendmire’s self-employed mortgage guides — full qualification details, guidelines, and scenarios live on the program page.
Related reading: Top Bank Statement Cash-Out Refinance Providers to Renovate a Condo
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.