The Quick Read: A brokerage account can support a cash-out refinance through select programs, but the path matters: on the asset depletion path cash-out is available up to 60% loan-to-value on a principal residence, second home or investment property, subject to underwriting, while the asset qualifier path treats cash-out as a lender-by-lender question. You do not sell the account. You document it with statements.
- The asset qualifier path counts your eligible assets against the entire loan amount and documents no employment or income.
- The asset depletion path divides usable assets by 60 months to create qualifying income, which then runs through the debt-to-income test.
- A brokerage account counts at 100% on the qualifier path and at 80% on the depletion path.
- Cash-out proceeds never count as qualifying assets on the depletion path.
- Privately held company stock is not an eligible asset on either path.
What Does Asset-Based Qualifying Mean on a Cash-Out Refinance?
Asset-based qualifying means the lender looks at what you own instead of what you earn. A cash-out refinance replaces your current mortgage with a new, larger one and hands you the difference in cash. Normally the lender wants pay stubs or tax returns to show you can repay it. Here, your balances do that job.
This approach suits people whose balances are large and whose documented income is small. Think of a retiree living off a portfolio, someone who just sold a business, an heir, or an early-retired professional. The qualifying income on paper looks thin. The account statements look strong.
The program has two separate paths. You are underwritten on one at a time. Never mix their numbers.
One point trips up many readers. A rental investor who is reviewed on property rent coverage is using a different product, a business-purpose rental loan where the brokerage account only proves reserves. This article covers qualifying on the assets themselves, through asset-based mortgage programs that Lendmire arranges through select lenders in its wholesale network. Every file is fully underwritten. The assets are documented. What you skip is tax returns, pay stubs and employment verification.
Key Terms Defined
- Asset qualifier path: the program route where eligible assets, after the 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.
- Debt-to-income ratio (DTI): your monthly debts, including the new housing payment, compared with your monthly qualifying income.
- Seasoning: how long the money has sat in your accounts before the lender will count it.
- Haircut: the discount a lender applies to an asset because its value can move or it is harder to reach.
- Loan-to-value (LTV): the loan amount as a percentage of the property’s appraised value.
- Cash-out refinance: a new mortgage larger than the old one, with the extra amount paid to you.
How Underwriting Treats a Brokerage Account, Step by Step
Underwriting follows a set order. Knowing it lets you gather the right papers before you apply.
1. Pick the path. The lender first decides whether your assets cover the loan outright or whether they need to become income. Your property type and leverage often settle this.
2. List every account. You show each account you plan to use, with titling in your name. Brokerage accounts, certificates of deposit, money market and savings accounts are the usual suspects.
3. Apply the credit percentages. Each asset counts for a share of its balance. A brokerage account counts for more on one path than on the other.
4. Check the seasoning and statements. Older, stable balances are easy to count. Fresh, unexplained deposits get questions.
5. Run the test for your path. On the qualifier path, usable assets must equal or exceed the loan. On the depletion path, derived income must carry the payment and your other debts.
6. Review credit, property and leverage. The appraisal sets the value. Your credit profile and housing history decide whether the file fits the lender’s matrix.
Underwriting is individual. The figures below are ceilings and floors, never offers. They are subject to lender guidelines and underwriting review.
Path One: The Asset Qualifier
The qualifier path is the simplest idea in the program. Your eligible assets must cover the whole loan. If they do, the lender documents no employment or income, and its ability-to-repay review rests on the assets.
Loan amounts run up to $4,000,000. Leverage on the qualifier path reaches up to 80% LTV on a purchase and 75% LTV on a refinance of a principal residence or second home. Whether cash-out proceeds are allowed on this path, and at what leverage, is set by the lender and is not published. Plan on asking before you build a strategy around it. These specifics are subject to lender guidelines and a full review of property, leverage, and credit.
Here is how each asset counts on the qualifier path:
| Asset | Share of balance counted |
|---|---|
| Brokerage account | 100% |
| Certificate of deposit | 100% |
| Money market | 100% |
| Savings | 100% |
| 401(k) or IRA, under age 59½ | 90% |
| 401(k) or IRA, 59½ or older | 100% |
Accounts combine. Consider a borrower seeking an $800,000 loan with $330,000 in brokerage accounts (counted at 100%, or $330,000), $300,000 in a 401(k) while under 59½ (counted at 90%, or $270,000) and $200,000 in savings (counted at 100%, or $200,000). That adds up to $800,000 of usable assets, which matches the loan. On this illustration the file is reviewed on assets alone. The lender’s own calculation governs.
Other terms on this path are short. Credit starts at a 600 minimum score. The assets need 60 days of seasoning and two months of statements for each qualifying account. No reserves are required at or below 75% LTV. Above that level the lender sets them. Terms depend on the lender’s guidelines, the property type, the leverage, and a full review of the credit profile.
Path Two: The Asset Depletion Income Route
The depletion path turns your assets into an income number. The lender counts usable assets after the haircuts, divides by 60 months, and treats the result as monthly qualifying income. That income must carry the full housing payment and your other debts through the debt-to-income test.
This path is where cash-out is clearly available. Leverage works like this:
| Property | Purchase or rate-and-term refinance | Cash-out refinance |
|---|---|---|
| Principal residence or second home | Up to 80% LTV | Up to 60% LTV |
| Investment property | Up to 65% LTV | Up to 60% LTV |
Loan amounts run from $125,000 to $3,500,000. Cash-out proceeds never count as qualifying assets. You cannot borrow the money and then use it to prove you have enough.
The haircuts on the depletion path are steeper for market assets:
| Asset | Share of balance counted |
|---|---|
| Cash accounts | 100% |
| Certificates of deposit | 100% |
| Securities (brokerage holdings) | 80% |
| Retirement accounts, any age | 70% |
| Real-estate equity | 60% |
Run the math on an example. Say a borrower holds $1,500,000 in securities, counted at 80% for $1,200,000, plus $300,000 in cash, counted at 100%. Usable assets total $1,500,000. Divided by 60 months, that is $25,000 of monthly qualifying income. That income then carries the housing payment and other debts through the debt-to-income test. Again, the lender’s own calculation governs.
The depletion path has minimums. Qualified assets must reach at least the lesser of $1,000,000 or 1.25 times the loan balance. When depletion is your only income source, you also need no less than $250,000 liquid. If you have documented income, asset-derived income can supplement it up to a 45% debt-to-income ratio. In that case the minimum-assets rule is waived.
Credit follows the lender’s score and loan-amount matrix. A first-time investor on this path needs a 700 score. Housing history is 0x30x12, though one 30-day late in the last twelve months is considered case by case. Multiple bankruptcies are not eligible, and a housing event needs four years of seasoning.
Statements must be at least 120 days old at application, plus 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.
Can You Use It on an Investment Property?
Yes, but only on the depletion path. The qualifier path covers a principal residence or second home. An investment property qualifies through depletion at the 65% and 60% leverage shown above. The exact numbers vary by lender and program and follow a full review of property, leverage, and credit.
The investment-property version is a business-purpose loan. A business-purpose loan is made for a commercial reason, such as owning rental property, rather than for personal or household use. Because of that, it is reviewed differently from a standard owner-occupied mortgage. The CFPB’s Regulation Z, section 1026.3 exempts credit extended primarily for a business purpose, and the OCC’s Comptroller’s Handbook on truth in lending confirms that exemption. The loan’s purpose controls, not the property type. Loans on a principal residence or second home are consumer mortgages, and standard consumer disclosures apply to them.
If you want a rental purchase underwritten on the property’s rent instead of your assets, that is a different business-purpose rental program, and your brokerage account would serve as reserves rather than as the qualifier.
Where the General Rule Breaks
Rules look tidy until your file has a wrinkle. These are the common ones.
Privately held company stock. It is not an eligible asset on either path. A founder or shareholder qualifies by documenting liquid assets: seasoned proceeds from a sale or conversion, cash, public securities and retirement accounts at their haircuts. A buyout that lands as a seasoned cash balance works. The shares themselves do not.
Crypto, metals and collectibles. Cryptocurrency, precious metals, collectibles, business accounts beyond your ownership share, and pledged or borrowed funds are not published as eligible on either path. The documented route is converting them to a seasoned cash balance in a regulated account, with the source reviewed by the lender.
Ineligible items on the depletion path. 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 do not count.
Cash-out proceeds as reserves. Some corners of the investor world believe proceeds can fill the reserve bucket. Across the programs in Lendmire’s network, proceeds never count as qualifying assets on the depletion path. Keep your proof of assets separate from the money you are pulling out.
Market drops. On the qualifier path, your usable assets must equal or exceed the entire loan. A brokerage account that falls before closing can leave you short. A cushion above the bare minimum protects you.
Double counting. Assets you already use to produce documented income cannot be used again without scrutiny. When asset income supplements documented income, the 45% debt-to-income ceiling applies.
Age and retirement accounts. On the qualifier path a 401(k) or IRA counts at 90% under 59½ and 100% after. On the depletion path retirement accounts count at 70% at any age.
Entity ownership. Consumer-purpose loans on a principal residence or second home close in your personal name. For investment property on the depletion path, vesting terms are set by the lender, subject to program terms. The account supporting the file needs to be reachable by the borrower.
Which Path Fits You?
Match the path to your profile.
- Assets cover the loan outright and you want the simplest file. Look at the qualifier path first. It documents no income at all. The tradeoff is that the assets must equal the entire loan, and cash-out terms are lender-specific.
- You need cash-out and have a principal residence or second home. The depletion path gives you a published 60% LTV cash-out ceiling.
- You own an investment property. Depletion is the route. Expect 65% on a purchase or rate-and-term refinance and 60% on a cash-out.
- You have a large balance but your account is mostly retirement money. The qualifier path counts it at 90% or 100%. The depletion path counts it at 70%. The same account can be worth far more on one path.
- You also have documented income. Asset-derived income can supplement it up to 45% debt-to-income, and the minimum-assets rule is waived.
Think about the return on the money, too. Pulling cash out is not free, and the new loan stays with you. Judge the cash-out by what you will earn on it, not just by the fact that it is available.
On how business-purpose lending is treated. America’s Credit Unions explains that business-purpose loans are also exempt from the mortgage-servicing and settlement rules that apply to consumer loans. That is the reason an investment-property file looks different from a primary-residence file.
Tax treatment varies; consult a qualified professional before deciding whether to borrow against investments or sell them.
Frequently Asked Questions
Do I have to sell my brokerage account to qualify?
No. The lender needs statements, not a sale. On the qualifier path you provide two months of statements for each qualifying account and 60 days of seasoning. On the depletion path you provide statements at least 120 days old plus the most recent one within 45 days. The account stays invested and in your name.
Does privately held company stock count as an asset?
If you own part of a company, the documented route is a sale or buyout converted into a seasoned cash balance, plus any cash, public securities and retirement accounts you hold. Those count at their stated percentages, subject to underwriting.
Can cash-out proceeds count toward my qualifying assets?
No. On the depletion path, cash-out proceeds never count as qualifying assets. The lender wants to see that you hold the assets independently of the loan itself. Keep the money you are borrowing separate from the account balances you use to prove strength.
What credit score do I need?
The qualifier path starts at a 600 minimum score. The depletion path follows the lender’s score and loan-amount matrix, and a first-time investor on that path needs 700. Housing history is expected to be 0x30x12, with one recent 30-day late considered case by case. Nothing here is an approval promise, and every file is reviewed individually.
Why does the same brokerage account count for more on one path than the other?
Each path answers a different question. The qualifier path asks whether your assets cover the whole loan, so a brokerage account counts at 100%. The depletion path turns assets into income, so securities are discounted to 80% to account for market movement. Choosing the path that treats your holdings most favorably is part of structuring 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. Lendmire is a mortgage broker, not a lender, and arranges these loans through select lenders. Its 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. Programs change. This is not a commitment to lend.
For the mechanics of pulling equity out of a rental 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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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. CFPB Regulation Z, section 1026.3
2. OCC Comptroller’s Handbook: Truth in Lending Act
3. America’s Credit Unions: Regulations and Business Loans
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 to Document a Wire From a Sale Before an Asset-Based Mortgage · Can You Take Cash Out of a Texas Homestead on an Asset Depletion Loan? · Can You Get a Texas Asset-Based Mortgage With No Job?
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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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.