The Quick Read: You qualify on one of two paths, the asset qualifier path, where documented assets cover the whole loan, or the asset depletion path, where assets are divided into monthly income, and Lendmire arranges both through select lenders, subject to underwriting. Neither path asks for tax returns, pay stubs or employment verification. Both still require full statements and a full appraisal.
- Asset qualifier path: eligible assets must equal or exceed the entire loan, and no income is documented.
- Asset depletion path: usable assets are divided by 60 months into qualifying income, and that income goes through the debt-to-income test. Cash-out on a principal residence is capped at 60% loan-to-value.
- Your home’s equity never counts as the asset. Neither do the cash-out proceeds.
- Privately held company stock is not an eligible asset on either path.
Why a Primary Home Isn’t a DSCR Loan
Searches for this topic often say “DSCR.” A DSCR loan is a different product, and it can’t be used on the home you live in.
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.
A cash-out refinance on your primary home is a consumer mortgage. Rental coverage of the home’s payment is irrelevant. The lender looks at your assets, your credit and the property.
That is where asset-based programs fit. They suit people whose balances are large and whose documented income is small. Think retirees, business sellers, inheritance recipients, and households living off a portfolio. Lendmire’s asset-based mortgage programs are placed with select lenders in 16 states: Alabama, California, Colorado, Florida, Georgia, Indiana, Michigan, Montana, New Mexico, North Carolina, Ohio, Pennsylvania, Tennessee, Texas, Virginia and Washington.
Key Terms Defined
Asset qualifier: a path where eligible assets, after credit percentages, must cover the entire loan amount. No income is documented.
Asset depletion: a path where usable assets are divided by 60 months to create monthly qualifying income.
Cash-out refinance: a new, larger mortgage that pays off the old one and hands you the difference in cash.
Haircut: the share of an asset’s balance a lender refuses to count. A 70% credit means a 30% haircut.
Seasoning: how long money has sat in your account, shown by statements. It proves the funds are really yours.
Debt-to-income (DTI): your monthly debts divided by your monthly income. On the depletion path, the derived income goes in the bottom of that fraction.
How Underwriting Treats the Request, Step by Step
Every file runs through the same sequence. Skipping a step is how files stall.
1. Occupancy is confirmed. You live in the home, or expect to. That makes it a consumer loan.
2. You pick a path. You qualify on one path at a time, never a blend of both.
3. Assets are listed and discounted. Each account is counted at its percentage for that path.
4. The subject home is excluded. The equity in the house securing the loan cannot be your qualifying asset. The federal ability-to-repay standard counts only assets other than the dwelling’s value.
5. Statements are checked. The lender needs third-party records. Your own spreadsheet won’t do.
6. Credit and housing history are reviewed. Underwriting uses the lender’s matrix.
7. An appraisal sets the value. Leverage limits apply to that value.
8. Cash-out is sized. The loan can’t exceed the leverage cap for the path and occupancy.
Cash-out proceeds never count toward qualifying assets. You can’t borrow against the house to prove you can afford the house.
The Two Paths Side by Side
Here are the program figures, subject to underwriting and through select programs. They are ceilings and floors, never offers.
| Factor | Asset qualifier | Asset depletion |
|---|---|---|
| How you qualify | 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 |
| Principal-residence refinance LTV | Up to 75% | Rate-and-term up to 80% |
| Principal-residence cash-out LTV | Set by lender, not published | Up to 60% |
| Statements | Two months per account | 120 days old, plus one within 45 days |
| Seasoning | 60 days | Via the statement ages |
| Credit | 600 minimum | Lender’s matrix |
Read the cash-out row carefully. On the qualifier path, the lender decides whether cash-out is allowed and at what leverage. That figure isn’t published, so don’t assume one. Ask for it before you plan around it.
The depletion path is clearer. A cash-out refinance on a principal residence or second home is capped at 60% loan-to-value. A rate-and-term refinance can go to 80% there.
Which Assets Count
Percentages differ by path, so never mix the two lists.
Asset qualifier path (share of the balance that counts):
- Brokerage accounts, certificates of deposit, money market and savings: 100%.
- 401(k) and IRA balances: 90% if you’re under 59½, 100% at 59½ or older.
- Accounts combine.
Asset depletion path:
- Cash accounts and certificates of deposit: 100%.
- Securities: 80%.
- Retirement accounts: 70% at any age.
- Real-estate equity in other property: 60%.
The depletion path excludes 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.
Cryptocurrency, precious metals, collectibles, pledged or borrowed funds and business accounts beyond your ownership share are not published as eligible on either path. If that’s where your wealth sits, the documented route is converting it to a seasoned cash balance in a regulated account. The lender reviews the source.
A Worked Example
These figures are illustrative. The lender’s own calculation governs.
Qualifier path. Say the loan is $800,000. You hold $330,000 in brokerage accounts (100% counts, so $330,000). You hold $300,000 in a 401(k) and you’re under 59½ (90% counts, so $270,000). You hold $200,000 in savings (100%, so $200,000). Usable assets total $800,000, matching the loan. You qualify on assets alone, subject to underwriting.
Depletion path. Say you hold $1,500,000 in securities (80% counts, so $1,200,000) and $300,000 in cash (100%). That’s $1,500,000 usable. Divide by 60 months for $25,000 of monthly qualifying income. That income must carry the housing payment and your other debts through the debt-to-income test.
The depletion path also has asset minimums. Qualified assets must be the lesser of $1,000,000 or 1.25 times the loan balance. When asset depletion is your only income source, they must never fall below $250,000 liquid. Asset-derived income can also supplement documented income up to a 45% debt-to-income ratio. When it does, the minimum-assets rule is waived.
Credit, Reserves and Housing History
Credit still matters. The depletion path follows the lender’s score and loan-amount matrix.
Housing history is typically 0x30x12. One 30-day late in the last twelve months is considered case by case. Multiple bankruptcies are not eligible. On the depletion path, a housing event needs 4 years of seasoning.
Reserves are simpler. On the qualifier path, none are required at or below 75% loan-to-value. Above that, the lender sets them. The depletion path has no published reserve months.
Where the General Rule Breaks
Privately held company stock. Privately held company stock is not an eligible asset on either path. The route is documented liquid assets: seasoned proceeds from a sale or conversion, cash, public securities and retirement accounts at their haircuts.
Money you just moved. Fresh deposits fail seasoning on the qualifier path. Sale-of-business, inheritance and legal-settlement funds are excused from the depletion path’s statement-age rule. They still need documentation. Lendmire’s piece Best Asset-Based Cash-Out Refinance Program on a Recently Bought Home covers the timing side.
The 14-day occupancy trap. Some owners try to call a second property a rental while staying in it. Under federal rules, if you expect to occupy a property more than 14 days in the coming year, it can’t be treated as non-owner-occupied. A signed affidavit doesn’t override the facts.
Using the cash to buy a rental. The loan on your primary home stays a consumer loan, whatever you do with the cash.
Other states’ rules. Some states add their own home-equity restrictions on top of lender guidelines. Ask early.
Agency rules differ. Fannie Mae and Freddie Mac generally limit assets-as-income to purchases and limited cash-out refinances. Some non-QM programs allow cash-out on the asset path, and others exclude it. That’s why you’ll see conflicting answers online.
Is This the Right Tool?
It fits when your assets are large and documented, your income is thin on paper, and you need cash from home equity without selling investments. A retiree, a business seller, or an early-retired professional living off a portfolio are typical examples.
It fits poorly in three cases:
- Your assets are mostly privately held stock, crypto, or other ineligible classes.
- Your income is strong and documented. A standard program may serve you better.
- The funds would be spent on something you could cover from the portfolio.
The decision usually comes down to which structure the file supports:
| Your situation | Likely route |
|---|---|
| Assets exceed the loan | Asset qualifier path |
| Assets are large, loan is moderate | Asset depletion path |
| Cash-out cap is too low | Smaller cash-out or rate-and-term |
| Wealth is in private stock | Convert to seasoned cash first |
Pre-Application Checklist
- Two months of statements per account (qualifier) or statements 120 days old plus one within 45 days (depletion).
- A credit report review for housing lates.
- Your current mortgage payoff and lien documents.
- A written source for any large deposit.
- A plan for any asset class that isn’t eligible.
Frequently Asked Questions
Can cash-out proceeds count as qualifying assets?
No. Cash-out proceeds never count toward qualifying assets on the depletion path. The same logic applies on the qualifier path, because borrowed money doesn’t prove ability to repay. Your assets must be in place before closing.
Can I use my home equity as the asset?
No. The home securing the loan can’t be the qualifying asset. On the depletion path, equity in other real estate counts at 60%. That equity belongs to a different property.
Does the qualifier path allow cash-out?
It depends on the lender. Whether cash-out is allowed and at what leverage isn’t published, so get it confirmed before you plan. The depletion path publishes a 60% loan-to-value cap on a cash-out refinance of a principal residence.
Is this a no-income mortgage?
Not exactly. On the qualifier path, no income is documented, but you still document your assets, credit and property. On the depletion path, your assets are converted into qualifying income that runs through the debt-to-income test. Every file is fully underwritten.
What credit do I need?
The qualifier path publishes a 600 minimum score. Housing history and any recent credit event are reviewed too. Nothing is promised until underwriting approves the file.
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. This is a consumer mortgage with consumer disclosures, and programs change.
A last practical point: the number that surprises most borrowers is the cash-out cap, not the asset test. Confirm that figure first and the rest of the file tends to fall into place. For the leverage side, see Lendmire’s piece Best Asset-Based Cash-Out Refinance Program at Maximum LTV on a Primary Home.
About Lendmire
Lendmire, NMLS# 2371349, is a mortgage brokerage with consumer lending licenses in 16 states. Bank statement, P&L-only, 1099-only and asset-based mortgages are arranged through wholesale lending partners for borrowers whose tax returns understate their income, and every file is fully underwritten by the lender. 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.
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
2. CFPB Reg Z § 1026.3 Exempt transactions
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 Lenders With Low Documentation Requirements · Asset-Based Cash-Out Refinance Requirements on a Non-Warrantable Condo · Asset-Based Cash-Out Refinance Requirements With a 529 Plan Counted as Liquid Assets
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
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.