The Quick Read: Above $1 million, the loan runs on one of two paths through select lenders. The asset depletion path turns your usable assets into monthly income and allows cash-out up to 60% loan-to-value on a principal residence, second home or investment property. The asset qualifier path leaves cash-out terms to the lender. Every figure here is subject to underwriting, and the lender’s own calculation governs. Every figure here varies by lender and program — guidelines, property type, leverage, and credit profile all apply.
- Asset qualifier path: your eligible assets, after the credit percentages, must equal or exceed the entire loan, up to $4,000,000, subject to underwriting. The file does not ask for tax returns, pay stubs or employment verification.
- Asset depletion path: usable assets divided by 60 months become qualifying income. Loans run from $125,000 to $3,500,000 through select programs.
- Cash-out proceeds never count as qualifying assets on the depletion path. Plan to qualify on what you already hold.
- Privately held company stock is not eligible on either path.
- Every file is fully underwritten. The assets are documented with statements, and the lender’s own calculation governs.
This page is for people with large balances and thin documented income. Think retirees, business sellers, heirs, settlement recipients and households living off a portfolio. The figures below are ceilings and floors, not offers.
Which Path Fits a Loan Above $1 Million?
Pick the path before you look at any other number. A borrower is qualified on one path at a time, and the two do not blend.
The asset qualifier path asks one question: do your eligible assets cover the whole loan? If they do, the file is reviewed on assets alone. The asset depletion path asks a different one: can the income your assets generate on paper carry the housing payment and your other debts? That answer runs through a debt-to-income test.
| Factor | Asset qualifier path | Asset depletion path |
|---|---|---|
| Core idea | Assets cover the entire loan | Assets divided by 60 months become income |
| Max loan | Up to $4,000,000 | $125,000 to $3,500,000 |
| Occupancy | Principal residence or second home | Also investment property |
| Debt-to-income | No income documented | Derived income runs through the test |
| Best fit | Very large balances, modest loan | Large balances, loan bigger than assets |
Here is how most files sort. Say your liquid assets equal or exceed the loan. The qualifier path is usually the cleaner route. Say your assets are smaller than the loan but still substantial. The depletion path lets them work as income instead.
Key Terms Defined
Asset qualifier path: the route where eligible assets, after credit percentages, must equal or exceed the whole loan.
Asset depletion path: the route where usable assets divided by 60 months become monthly qualifying income.
Cash-out refinance: a new loan that pays off the old one and returns the leftover equity to you as cash.
Loan-to-value (LTV): the loan amount divided by the property’s appraised value.
Seasoning: how long funds have sat in your accounts before the lender counts them.
Haircut: the share of an account’s balance a lender refuses to count, such as the 20% that does not count on securities on the depletion path.
Debt-to-income (DTI): your monthly debts, including the new housing payment, compared with your monthly income.
How Cash-Out Works on the Asset Depletion Path
The depletion path publishes a clear cash-out ceiling. On a principal residence or second home, leverage 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. All of this is subject to underwriting and the lender’s matrix.
Notice what happens at the top of the range. A 60% cash-out ceiling is the same on all three occupancy types. So a larger loan above $1 million does not unlock more leverage. It simply needs a bigger asset pile behind it. Final terms depend on lender guidelines, property type, leverage, and the borrower’s complete credit picture.
That pile has a minimum. The depletion path wants qualified assets of at least the lesser of $1,000,000 or 1.25 times the loan balance. When asset depletion is your only income source, you also need at least $250,000 liquid. Asset-derived income can instead supplement documented income, up to a 45% debt-to-income ratio. In that case, the minimum-assets rule is waived.
One rule catches people. Cash-out proceeds never count as qualifying assets. You cannot pull the equity out and then count it toward the assets that justified pulling it. The assets that qualify you must already exist, in your name, before closing.
What the Qualifier Path Does With Cash-Out
The qualifier path allows up to 80% loan-to-value on a purchase and 75% on a refinance of a principal residence or second home. It does not publish a cash-out figure. Whether cash-out proceeds are allowed, and at what leverage, is set by the lender.
So treat any promised qualifier-path cash-out number as unverified until a lender in the network puts it in writing. A broker who sees many lenders’ guidelines can tell you which ones entertain it. That conversation happens before you pay for an appraisal, not after.
The qualifier path has some real advantages above $1 million. There are no reserves required at or below 75% loan-to-value. The file has no income to calculate. And loans reach $4,000,000. The tradeoff is that your assets must equal or exceed the entire loan, not a slice of it. Exact terms depend on lender guidelines, credit profile, reserves, and property review.
How Each Asset Gets Counted
Not every dollar counts at face value. Here is the share of each balance that counts, by path.
| Asset | Qualifier path | Depletion path |
|---|---|---|
| Brokerage accounts / securities | 100% | 80% |
| Cash, savings, money market | 100% | Cash accounts 100% |
| Certificates of deposit | 100% | 100% |
| Retirement accounts | 90% under 59½, 100% at 59½+ | 70% at any age |
| Real-estate equity | Not listed | 60% |
On the qualifier path, accounts combine. That matters if your money sits in several places.
Several assets are not eligible on the depletion path at all. They include custodial accounts, deferred compensation, escrow accounts, foreign funds, cash on hand, stock options, non-vested restricted stock units, and funds from non-regulated financial companies.
Other asset classes are not published as eligible on either path. That covers cryptocurrency, precious metals, collectibles, business accounts beyond your ownership share, and pledged or borrowed funds. The documented route is converting them to a seasoned cash balance in a regulated account. The lender then reviews the source of those funds.
Two Worked Examples
These shapes are illustrative. The lender’s own calculation governs.
Qualifier path. Picture an $800,000 loan. You hold $330,000 in brokerage accounts, which count at 100%, or $330,000. You hold $300,000 in a 401(k) and are under 59½, so it counts at 90%, or $270,000. You hold $200,000 in savings, which counts at 100%, or $200,000. Together that is $800,000 of usable assets. They equal the loan, so the file is reviewed on assets alone, subject to underwriting.
Depletion path. Say you hold $1,500,000 in securities, which count at 80%, or $1,200,000. You also hold $300,000 in cash, which counts at 100%, or $300,000. That is $1,500,000 of usable assets. Divided by 60 months, it produces $25,000 of monthly qualifying income. That income then carries the housing payment and your other debts through the debt-to-income test.
Notice the difference. The first example never calculates income. The second never needs the assets to equal the loan. For a loan above $1 million, that is often the deciding factor.
Seasoning, Statements and What Goes in the File
Both paths document your assets with statements. Asset-based does not mean undocumented. It means the documents prove assets rather than income.
On the qualifier path, funds need 60 days of seasoning. The lender asks for two months of statements for each qualifying account. On the depletion path, statements must be at least 120 days old at application. You also need 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.
Expect the file to include the appraisal, statements for every qualifying account, a credit report, and an explanation for any large deposit. Large recent deposits draw questions on every path. Move money into the account before you apply, not during the file.
Credit and Housing History
The qualifier path publishes a 600 minimum score. The depletion path follows the lender’s score and loan-amount matrix, so the number you need can rise as the loan grows. A first-time investor on the depletion path needs 700.
Housing history is measured at 0x30x12, meaning no 30-day lates in the last twelve months. One 30-day late in that window is considered case by case. Multiple bankruptcies are not eligible. On the depletion path, a housing event such as a foreclosure needs 4 years of seasoning.
Nothing here removes the credit check. Every file includes one, and no score guarantees approval.
Where the General Rule Breaks
Most of the surprises on loans above $1 million come from a handful of edge cases.
Privately held company stock. It is not an eligible asset on either path. The documented route is a sale or buyout, converted to a seasoned cash balance.
Cryptocurrency, metals and borrowed funds. They follow the same rule: convert them to a seasoned cash balance in a regulated account first.
Cash-out as reserves or assets. Proceeds never count as qualifying assets on the depletion path. Reserves work differently by path. The qualifier path requires none at or below 75% loan-to-value. The depletion path publishes no reserve months. Neither rule lets proceeds fund the qualifying pile.
A shrinking asset base. Say you use $400,000 of brokerage assets for a down payment or closing funds on another deal. Those dollars no longer qualify you on this one. Map every planned use of cash against the assets the file needs.
Loans above the path ceilings. The depletion path stops at $3,500,000, and the qualifier path stops at $4,000,000. Nothing above $4,000,000 is available. If you need more, the practical options are a smaller loan or staging the equity pull.
Investment property. Only the depletion path covers it, at up to 60% on a cash-out refinance.
Why These Are Lender Rules, Not Law
None of the percentages above come from a statute. They come from lender and investor policy, and the lenders in the network set them. That is why two programs can treat the same account differently.
The legal frame explains why assets can carry a file at all. The CFPB’s Regulation Z page says credit to acquire, improve or maintain non-owner-occupied rental property is deemed business purpose. That matters for the investment property option on the depletion path. The Federal Register’s ability-to-repay rule covers loans made primarily for personal, family or household purposes. For a principal residence or second home, the lender must reasonably review repayment ability. Documented assets are one way to do that.
How This Compares With Other Routes
A full-documentation jumbo loan tests your personal income, and every debt feeds that debt-to-income test. A bank statement loan suits borrowers who document income through deposits. A DSCR loan is business-purpose rental financing that qualifies primarily on property-level rental income covering the payment, subject to lender guidelines. A home equity line borrows against the property as a second lien.
Asset-based is the right fit when your balances are large and your paper income is small.
Which Path Fits You?
Work through it in order.
1. Add up your eligible assets. Apply the percentages for each path. Leave out privately held stock and anything on the not-eligible lists.
2. Compare the total with the loan you want. If the usable assets equal or exceed the whole loan, start with the qualifier path.
3. If they fall short, run the depletion math. Divide usable assets by 60 and test the result against the housing payment and your other debts.
4. Check the property type. An investment property only runs on the depletion path.
5. Confirm seasoning. Make sure statements meet the 60-day or 120-day rule before applying.
6. Check credit. Housing history, score and any recent housing event decide whether the deal works forward.
Common Reasons These Files Stall
- Equity is mistaken for qualification. Large home equity does not qualify you. The assets or derived income must carry the loan.
- Assets are counted at face value. Securities, retirement accounts and real-estate equity all take haircuts on the depletion path.
- Funds are not seasoned. Recent transfers and unexplained deposits slow files down.
- Cash-out is expected to fund the minimums. Proceeds never count as qualifying assets.
- A first-time investor falls short on credit. The depletion path wants 700 for first-time investors.
- The loan is too large for the path. Above $3,500,000 on depletion, or above $4,000,000 on qualifier, the file needs restructuring.
Most of these are fixable before you apply. Seasoning, account consolidation and a smaller loan amount solve more than they should.
Frequently Asked Questions
Can privately held company stock count toward the assets?
The route for founders and shareholders is documented liquid assets: seasoned proceeds from a sale or buyout, cash, public securities and retirement accounts at their percentages.
Can I use the cash-out proceeds to meet the asset minimums?
No. On the depletion path, cash-out proceeds never count as qualifying assets. The assets that qualify you must exist before closing. The qualifier path also rests on assets you already hold, and any cash-out terms there are set by the lender.
Do I need to show tax returns or pay stubs?
Not for the qualifier path, which does not ask for tax returns, pay stubs or employment verification. The depletion path converts assets into income, which then runs through the debt-to-income test. Both paths document the assets with statements, and every file is fully underwritten.
What is the largest loan available?
The qualifier path goes up to $4,000,000, and the depletion path runs from $125,000 to $3,500,000. Both are ceilings, not offers. The lender’s matrix, your credit and the appraisal decide what a given file receives.
Does this work for a rental property?
Only on the depletion path. An investment property is capped at 65% on a purchase or rate-and-term refinance and 60% on a cash-out refinance, subject to underwriting. If the rental’s income should carry the loan instead, a DSCR loan is the better-fit program.
Talk Through Your Numbers
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. Lendmire is a broker, and the program is placed through select lenders in its network. 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. You can review asset-based mortgage programs online or call 828-256-2183. Programs change. This is not a commitment to lend.
For how equity extraction works on an investment 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. Federal Register, Ability-to-Repay and Qualified Mortgage Standards
This article is part of Lendmire’s asset-based mortgage program — full qualification details, guidelines, and scenarios live on the program page.
Related reading: Asset-Based Cash-Out Refinance Requirements With No Income Other Than Assets · Asset-Based Cash-Out Refinance Requirements With a 529 Plan Counted as Liquid Assets · Asset-Based Cash-Out Refinance Requirements With a 660 Credit Score
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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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.