The Quick Read: A condo cash-out refinance on assets passes two separate reviews, one on the borrower’s documented balances and one on the building, and the lenders that write it vary on both. Lendmire is a mortgage broker, so it matches the file to a program. It does not lend. The borrower is reviewed on one path at a time, and every file is fully underwritten.
- The asset qualifier path covers the whole loan with eligible assets and documents no employment or income. Whether it allows cash-out, and at what leverage, is set by the lender and is not published.
- The asset depletion path turns usable assets into monthly income over 60 months. It publishes a 60% ceiling on a cash-out refinance, on a principal residence, second home or investment condo.
- Cash-out proceeds never count as qualifying assets, so you cannot borrow against the condo and use that cash to qualify.
- The building is a second file. A borrower can qualify on assets and still lose the deal on the condo project.
What Does Asset-Based Mean on a Condo Cash-Out?
Asset-based means the borrower’s documented balances carry the loan instead of tax returns, pay stubs or employment verification. The term gets blended with two other products, so the line needs drawing.
- Asset-based mortgage (this article): eligible accounts either cover the loan outright or become qualifying income. The assets are documented with statements.
- DSCR loan: a business-purpose investor loan that qualifies primarily on the rent covering the payment, subject to lender guidelines. It does not look at the borrower’s balances the same way.
- Hard money: short-term lending secured by the property itself. It is a different product with a different purpose.
This page covers the first one. The reader it fits has large balances and light documented income: retirees, people who sold a business, heirs, early retirees and households living off a portfolio. Lendmire’s asset-based mortgage programs are placed through select lenders in its network, in the 16 states where its consumer mortgage lending is licensed. The figures below are ceilings and floors, subject to underwriting, not offers.
How Do the Two Asset Paths Work?
The qualifier path asks whether usable assets equal or exceed the entire loan amount. The depletion path asks whether usable assets, divided by 60 months, produce enough income to carry the housing payment and other debts. A borrower is on one path at a time, so the tables never blend.
| Factor | Asset qualifier | Asset depletion |
|---|---|---|
| What it tests | Assets cover the whole loan | Assets become monthly income |
| Income documented | None | Derived from assets |
| Refinance leverage | Up to 75% | Up to 60% on cash-out |
| Cash-out | Set by lender, not published | 60% ceiling |
| Loan amounts | Up to $4,000,000 | $125,000 to $3,500,000 |
| Occupancy | Principal residence, second home | Also investment property |
On the depletion path, the 60% cash-out ceiling applies to a principal residence, a second home and an investment condo alike. A rate-and-term refinance on that path runs higher: up to 80% on a principal residence or second home, and 65% on an investment property. Every figure here varies by lender and program, and guidelines, property type, leverage and credit profile all apply.
The qualifier path’s 75% figure is its refinance ceiling. Because cash-out terms on that path are lender-specific, anyone who needs cash back should ask for a written answer before ordering anything.
Which Assets Count, and at What Percentage?
Each path credits balances differently, and the gap between them is large. On the qualifier path, brokerage accounts, certificates of deposit, money market and savings count at 100%. Retirement accounts count at 90% under age 59½ and 100% at 59½ or older. Accounts combine.
On the depletion path, cash and certificates of deposit count at 100% and securities at 80%. Retirement accounts count at 70% at any age, and real-estate equity counts at 60%.
Several things do not count at all:
- Privately held company stock is not an eligible asset on either path. A founder’s documented route is a sale or buyout converted into a seasoned cash balance.
- On the depletion path, stock options, non-vested restricted stock units, custodial accounts, deferred compensation, escrow accounts, foreign funds and cash on hand are ineligible.
- Cryptocurrency, precious metals, collectibles and borrowed or pledged funds are not published as eligible on either path. The route is converting them to a seasoned cash balance in a regulated account, with the source reviewed by the lender.
Seasoning is the quiet friction point. The qualifier path wants 60 days of seasoning and two months of statements per account. The depletion path wants statements at least 120 days old at application plus the latest statement within 45 days. Funds from a business sale, inheritance or legal settlement are excused from that depletion seasoning.
Credit follows the path. The qualifier path publishes a 600 minimum score. The depletion path follows the lender’s matrix, and a first-time investor on that path needs 700. Housing history is 0x30x12, with one recent 30-day late considered case by case. Underwriting decides every file.
The Circularity Trap on Cash-Out
Cash-out proceeds and the equity you are about to borrow do not count as qualifying assets. A borrower who plans to pull cash from the condo and then use it to meet an asset test will fail the test, because the cash does not exist until the loan funds.
The file has to qualify on balances that already sit in statements. The same logic applies to the condo’s own equity. Real-estate equity earns a 60% credit on the depletion path, but the equity in the subject condo cannot be used to qualify for the loan that extracts it.
A retiree with a free-and-clear condo and modest savings holds a lot of wealth in the unit, but little of it counts. That borrower usually needs a different route, or more documented liquidity first.
What Does the Lender Review on the Building?
The building gets its own review, separate from the borrower. Lenders collect project data through a condo questionnaire, usually completed by the HOA or its management company. Fannie Mae’s Selling Guide describes Form 1076 as a way to help determine project eligibility, optional but encouraged for lenders. Freddie Mac’s full condo questionnaire has sections for completion details, reserves, commercial use and insurance.
Those agency forms are a model, not the rulebook here. The lenders in a broker’s network set their own project guidelines. The questionnaire shows the kind of information every reviewer wants.
The HOA Guide lists the questionnaire topics: developer control, ownership concentration, delinquencies, litigation, commercial space, insurance, deferred maintenance and reserves. Those are the places a condo file stalls.
Three habits keep these files cleaner:
1. Request the questionnaire early. The HOA’s management company completes it, and it can lag behind everything else on the file.
2. Ask about litigation and special assessments before applying. A building can fail while the borrower qualifies.
3. Have current insurance evidence ready. Gaps in master-policy coverage are a common review item.
Non-warrantable usually means closer scrutiny and often lower leverage, not an automatic decline. It describes the building, not the borrower. Lendmire’s guide Asset-Based Cash-Out Refinance Requirements on a Non-Warrantable Condo lists what to expect.
Condo-hotel features and daily rental operations are a separate category and narrow the lender pool further. Short-term rental rules can vary by city, county, HOA and property type, so investors should confirm local rules before relying on projected rental income.
What Kind of Lenders Write This?
The lenders that write asset-based cash-outs on condos are non-QM and portfolio lenders reached through wholesale channels. Large retail lenders mostly do not offer it. A borrower rarely finds the right one by calling around, because each lender sets its own project review, its own cash-out policy and its own overlays.
This is where a broker earns its place. Lendmire works with a network of wholesale cash-out refinance lenders, shops the scenario across them and matches it to the program that fits. This article does not name or rank lenders. The best program for your situation depends on the property type, credit profile, leverage need, the building and how your assets are held.
When a broker or lender walks you through options, these questions separate real programs from vague ones:
1. Which path is this file on, qualifier or depletion?
2. Is cash-out available on that path, and at what leverage for a condo?
3. How does the lender treat the condo project, and does it accept a non-warrantable building?
4. Which of my accounts count, and at what percentage?
5. What seasoning and statement dates apply?
6. Does the program cover my occupancy type: principal residence, second home or investment?
Red flags include a promise of approval before statements are reviewed, a quoted leverage figure with no mention of the building, and any suggestion that assets will not be documented. Every file is fully underwritten.
Which Route Fits Which Borrower?
Pick the route from the borrower’s situation, not the other way around.
| Situation | Likely route | Main hurdle |
|---|---|---|
| Large balances, wants to cover the loan outright | Qualifier path | Cash-out is lender-set |
| Large portfolio, wants income from assets | Depletion path | 60% cash-out ceiling |
| Investment condo, owner has big balances | Depletion path | 700 score if first-time investor |
| Equity-heavy, little liquid cash | Likely neither | Equity cannot qualify its own loan |
| Rent covers the payment, assets are thin | DSCR instead | Different product |
Business-purpose rental financing is DSCR. Bank statement programs serve borrowers who document income through deposits.
Cash-Out Versus a HELOC, Second Lien or Hard Money
These products solve different problems. Each is described here by its own general structure, not as this program’s rules.
| Product | Lien position | Structure |
|---|---|---|
| Cash-out refinance | Replaces the first mortgage | Lump sum, one new loan |
| HELOC | Second lien | Revolving line |
| Second mortgage | Second lien | Lump sum, first stays in place |
| Hard money | Short-term, secured by property | Bridge for a specific need |
A cash-out refinance replaces the existing first mortgage. That matters for borrowers who value the loan they already hold. A second lien leaves that loan alone but adds a separate payment and a separate review of the building.
A Worked Example With Illustrative Arithmetic
Illustrative only. The lender’s own calculation governs.
Qualifier path. An $800,000 loan is supported by $330,000 in brokerage accounts (100% = $330,000), $300,000 in a 401(k) held under 59½ (90% = $270,000) and $200,000 in savings (100% = $200,000). Together that counts $800,000 of usable assets, which covers the loan on assets alone.
Depletion path. $1,500,000 in securities counts at 80%, which is $1,200,000. Add $300,000 in cash at 100%. The total is $1,500,000 usable. Divided by 60 months, that is $25,000 of monthly qualifying income. That income then has to carry the housing payment and other debts through the debt-to-income test.
The sequence on a real file runs in this order:
1. Choose the path and confirm occupancy.
2. Gather statements for each qualifying account, and confirm seasoning.
3. Order the condo questionnaire and HOA documents.
4. Confirm the payoff on the existing first mortgage.
5. Appraisal and underwriting review of the borrower and the building.
Risks and Exit Planning
A cash-out on a condo, especially a non-warrantable one, is later repaid by sale or another refinance into a thinner buyer pool. That narrows exit options. HOA dues and special assessments raise the cost of carrying the unit, and a building with litigation or deferred maintenance can limit leverage at any future refinance.
Depletion-path depth is real. The program requires 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 assets are the only income source. Asset-derived income may supplement documented income up to a 45% debt-to-income ratio, and when it does, the minimum-assets rule is waived.
Think about it honestly: for some borrowers the better move is a smaller cash-out, or none, if the building’s issues will make the next refinance harder.
What to Gather Before You Ask
- Two months of statements for each qualifying account (qualifier path), or statements 120 days old plus one within 45 days (depletion path).
- Documentation for any sale, inheritance or settlement funds.
- The current mortgage statement and HOA dues information.
- Insurance evidence and the HOA contact for the questionnaire.
- A clear answer on how you will use the funds.
Key Terms Defined
Asset qualifier path: the route where eligible assets, after credit percentages, equal or exceed the whole loan.
Asset depletion path: the route where usable assets divided by 60 months become qualifying income.
Non-warrantable condo: a condo whose project features fall outside standard agency project rules, which brings closer lender review.
Condo questionnaire: the project form a lender sends to the HOA to collect finances, litigation, insurance and ownership data.
Seasoning: the period funds must sit in an account before they count.
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. Reach the team at 828-256-2183.
Frequently Asked Questions
Can I cash out a condo on assets alone?
It depends on the path and the lender. On the asset depletion path, cash-out is published at up to 60% leverage. On the qualifier path, cash-out terms are set by the lender and not published, so ask for a written answer first. Final terms depend on lender guidelines, property type, leverage, and the borrower’s complete credit picture.
Can cash-out proceeds count toward the asset test?
No. Cash-out proceeds never count as qualifying assets on either path. The file has to qualify on balances already documented in statements.
What if most of my wealth is private company stock?
None of it counts: privately held company stock is not an eligible asset on either path. The documented route is a sale or buyout converted into seasoned cash, plus any public securities and retirement accounts at their credit percentages.
Does this work for an investment condo?
Yes, on the depletion path only, where the loan is business-purpose. Cash-out is capped at 60% there, and a first-time investor needs a 700 score, subject to underwriting.
Do I need a broker?
It helps. Each lender sets its own condo project review and cash-out policy, and a broker shops the scenario across several programs. Lendmire does not lend, and the lenders it places files with approve each loan.
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.
Investors weighing their equity options can start with Lendmire’s guide to cash-out refinance on an investment property.
Get Started
Ready to find the right loan for you?
See your offer in seconds. No credit pull, no obligation.
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. Fannie Mae Selling Guide, B4-2.1-01 General Information on Project Standards
2. Freddie Mac Condominium Project Questionnaire, full form
3. The HOA Guide, Fannie Mae condo questionnaire
This article is part of Lendmire’s asset-based mortgage program — full qualification details, guidelines, and scenarios live on the program page.
Related reading: Can You Get Approved for an Asset-Based Cash-Out Refinance After Selling a Business? · Asset-Based Cash-Out Refinance Requirements on a Non-Warrantable Condo · Best Asset-Based Cash-Out Refinance Program to Go Fixed
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
Legal disclosures. Lendmire (NMLS# 2371349) is a state-licensed mortgage brokerage that arranges financing through wholesale lender relationships. Lendmire is not a direct lender, depository institution, or registered financial advisor. The discussion above is general informational content about real estate financing — it is not financial, legal, or tax advice, and readers should consult licensed professionals for guidance on their individual circumstances. Loan inquiries are subject to lender underwriting; this article does not represent a commitment to lend. Loan terms, rates, and qualification standards vary by borrower, property, and state, and are subject to change at any time. Equal Housing Opportunity. NMLS Consumer Access: nmlsconsumeraccess.org.