The Quick Read: A borrower with large balances and no documented paycheck can qualify for a cash-out refinance, but only on the asset depletion path. That path turns usable assets into monthly income and caps cash-out at 60% loan-to-value on a principal residence, second home or investment property, subject to underwriting. The asset qualifier path covers the whole loan with assets, but the lender sets whether cash-out is allowed there. Each figure is subject to lender guidelines and a complete review of property type, leverage, and credit.
- The asset qualifier path documents no employment or income, and eligible assets must equal or exceed the entire loan.
- The asset depletion path divides usable assets by 60 months to create qualifying income for the debt-to-income test.
- Cash-out proceeds never count as qualifying assets.
- Privately held company stock is not an eligible asset on either path.
- The program requires no traditional personal-income documentation, pay stubs or employment verification. It is not undocumented: statements are required.
This is written for people with large balances and little documented income: retirees, business sellers, inheritance or settlement recipients, early-retired professionals and households living off a portfolio. Everything below is a ceiling or a floor, never an offer. Every file is underwritten individually, and the lender’s own calculation governs.
What Does “Asset-Based” Actually Mean for a Cash-Out?
Two different structures share this label, and mixing them up is a common mistake. A borrower is qualified on one path at a time.
The asset qualifier path asks one question: do your eligible assets, after the credit percentages, equal or exceed the entire loan amount? If so, no employment or income is documented. The asset depletion path converts eligible assets, after haircuts, into imputed monthly income. That income must carry the full housing payment and other debts through a debt-to-income test.
| Factor | Asset Qualifier | Asset Depletion |
|---|---|---|
| Core test | Assets ≥ entire loan | Assets ÷ 60 = income |
| Income documented | None | Imputed from assets |
| Cash-out | Lender-set, not published | 60% LTV ceiling |
| Loan amounts | Up to $4,000,000 | $125,000–$3,500,000 |
| Best fit | Asset-heavy, loan modest | Asset-heavy, income-light |
The market uses other names for the same ideas: asset utilization, asset-based, no-income-verification. Across our wholesale network, the sharper distinction is the one above. Does the loan get covered by assets, or do assets become income? Those two answers lead to different files.
Lendmire arranges these loans as a broker. Its asset-based mortgage programs place files with select lenders in its network, in the 16 states where its consumer mortgage lending is licensed.
How Does Underwriting Treat a Cash-Out With No Income?
Underwriting treats it as a fully documented file where the documents are statements, not pay stubs. The lender must still decide you can repay. Federal repayment-capacity rules let a lender rest that decision on income, on assets other than the home, or on both, as the CFPB’s Regulation Z ability-to-repay provision describes.
Two consequences matter for the investor. First, the equity in the property being refinanced cannot be your repayment asset, since the rule looks to assets other than the dwelling that secures the loan. Second, the lender must verify what it relies on with third-party records. The eCFR text of the rule is explicit on both points. In practice that means statements.
Here is the sequence on the depletion path:
1. Inventory the assets. List brokerage, savings, CDs, retirement accounts and any real-estate equity you want counted.
2. Apply the haircuts. Cash and CDs count at 100%, securities at 80%, retirement accounts at 70% at any age, and real-estate equity at 60%.
3. Divide by 60 months. The usable total becomes monthly qualifying income.
4. Run the debt-to-income test. That income must carry the new housing payment plus other debts.
5. Check the loan size gate. Qualified assets must be at least the lesser of $1,000,000 or 1.25 times the loan balance. Where depletion is the only income source, you must also hold no less than $250,000 in liquid assets.
6. Size the loan. Leverage is capped at 60% on a cash-out, and the lender’s collateral review still applies.
Here is a worked illustration, using only the program’s own shapes. A borrower holds $1,500,000 in securities, counted at 80%, or $1,200,000. Add $300,000 in cash at 100%. That is $1,500,000 in usable assets. Divided by 60 months, it produces $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 lender’s calculation governs, subject to underwriting.
How Does the Asset Qualifier Path Work Differently?
On the qualifier path, there is no income calculation and no debt-to-income ratio. Usable assets simply have to equal or exceed the whole loan. The credit percentages are friendlier: brokerage accounts, CDs, money market and savings all count at 100%. A 401(k) or IRA counts at 90% under age 59½ and 100% at 59½ or older. Accounts combine.
Consider an $800,000 loan. A borrower holds $330,000 in brokerage accounts (100%, so $330,000), $300,000 in a 401(k) under 59½ (90%, so $270,000), and $200,000 in savings (100%, so $200,000). That counts $800,000 of usable assets and is reviewed on assets alone, subject to underwriting.
Leverage here is up to 80% loan-to-value on a purchase and 75% on a refinance, on a principal residence or second home. Here is the catch for a cash-out seeker: whether cash-out proceeds are allowed on this path, and at what leverage, is set by the lender and is not published. Do not plan around a number you have not been shown. If your goal is cash in hand, the depletion path is the one with a stated cash-out ceiling.
Credit has a 600 minimum score on the qualifier path. No reserves are required at or below 75% loan-to-value; above that, the lender sets them.
Which Assets Count, and at What Value?
Liquid, regulated, seasoned balances count. Everything else is either haircut or ineligible. The two paths treat the same asset differently, so read the table by column.
| Asset | Qualifier path | Depletion path |
|---|---|---|
| Brokerage / securities | 100% | 80% |
| Cash, savings, money market | 100% | 100% |
| Certificates of deposit | 100% | 100% |
| Retirement (401(k), IRA) | 90% under 59½, 100% after | 70% at any age |
| Real-estate equity | Not listed | 60% |
Not eligible 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.
What about privately held stock? A founder or shareholder qualifies through documented liquid assets: seasoned proceeds from a sale or buyout, cash, public securities and retirement accounts at their haircuts. Cryptocurrency, precious metals, collectibles, business accounts beyond your ownership share, and pledged or borrowed funds are likewise not published as eligible on either path. The route for these is conversion to a seasoned cash balance in a regulated account, with the source reviewed by the lender.
How Much Seasoning and Documentation Does the File Need?
Assets must sit in your accounts long enough to prove they are yours. The requirement differs by path.
- Qualifier path: 60 days of seasoning, with two months of statements for each qualifying account.
- Depletion path: statements 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.
The documentation checklist for an asset-only file is short but strict:
- Statements for every account you are counting
- Photo ID and credit authorization
- A source explanation for any large recent deposit
- Property documents and a standard appraisal
- Evidence of the loan being paid off
You do not supply tax returns, pay stubs or employment verification. Everything else is fully underwritten.
What Leverage and Credit Should You Expect?
Cash-out leverage on the depletion path tops out at 60% loan-to-value on a principal residence, second home or investment property. By contrast, a rate-and-term refinance on a principal residence or second home can reach 80%, and 65% on an investment property. The cash-out ceiling is the tightest number in the program, so test it before anything else.
Credit follows the lender’s score and loan-amount matrix on the depletion path. A first-time investor there needs a 700 score. Housing history is expected at 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 on the depletion path.
Investment property is available only on the depletion path, where the loan is business-purpose. Consumer-purpose loans on a principal residence or second home carry consumer mortgage disclosures. Business-purpose credit is treated differently under federal rules. That treatment turns on actual purpose, not on a label, so a borrower should expect to state how the funds will be used.
Where Does the General Rule Break?
Several edge cases change the answer.
- Cash-out proceeds cannot be recycled. They never count as qualifying assets. You cannot take cash out and then count it to qualify for the same loan.
- Real-estate equity is capped. It counts at 60% on the depletion path, and never the equity in the subject property.
- Asset income can supplement. If you have some documented income, asset-derived income may add to it up to a 45% debt-to-income ratio. When it supplements, the minimum-assets rule is waived.
- Retirement accounts are the swing asset. They count at 90% to 100% on the qualifier path but only 70% on the depletion path. A borrower under 59½ should model both.
- Entity-held property. Where a loan goes to an LLC, treatment is subject to program terms and lender eligibility.
- Thin assets, strong rent. If rent covers the payment but assets are modest, a DSCR structure may fit better. That qualifies primarily on property-level rental income covering the payment, subject to lender guidelines.
Two other options are worth noting. A bank statement program is for borrowers who document income with deposits, not assets. A HELOC, by contrast, is a different product with its own rules.
Which Path Fits Which Borrower?
The decision is a question about the binding constraint. If your usable assets cover the whole loan, the qualifier path avoids the income test. If they do not, but the income they produce can carry the payment, the depletion path is the fit.
- Assets exceed the loan, and you want a refinance. Start on the qualifier path, but confirm cash-out eligibility with the lender first.
- You want real cash out. The depletion path states a 60% ceiling. Model whether your cash needs fit inside it after payoff and costs.
- Large retirement balances, under 59½. Compare both paths, because the percentage differs.
- Business seller with fresh proceeds. The seasoning exception on the depletion path may help. Keep the sale documents.
- Strong rent, thin liquid assets. Look at DSCR instead of forcing an asset path.
Honestly, a tight file is often a signal about structure, not a reason to reach. If the numbers only work at the ceiling, lower leverage is usually the better choice.
Key Terms Defined
Asset qualifier: A path where eligible assets, after credit percentages, must equal or exceed the whole loan.
Asset depletion: A path that divides usable assets by 60 months to create monthly qualifying income.
Haircut: The percentage of an account’s balance that counts toward qualifying.
Seasoning: The length of time funds must sit in an account before they count.
Debt-to-income (DTI): Monthly debts divided by monthly income, tested on the depletion path.
Cash-out refinance: A new, larger loan that pays off the old one, with the difference paid to the borrower.
Frequently Asked Questions
Can I really get a cash-out refinance with no income other than assets?
Yes, through the asset depletion path, within a 60% loan-to-value ceiling on a principal residence, second home or investment property. The lender converts usable assets into monthly income and tests it against the payment. Qualification is subject to underwriting, credit and property review.
Does “no income” mean no documentation?
No. The program requires no traditional personal-income documentation, pay stubs or employment verification, but assets are documented with statements. Credit, property and identity are all reviewed. Federal rules require lenders to verify assets with third-party records.
Does my retirement account count?
Yes, at a haircut. On the qualifier path, it counts at 90% under 59½ and 100% at 59½ or older. On the depletion path, it counts at 70% at any age. You do not have to withdraw the funds, and the account is not pledged.
Can I use proceeds from a sale of my company?
Yes, once they sit in a regulated account as cash or securities. Sale-of-business funds are excused from the 120-day statement seasoning on the depletion path. Privately held company stock itself is not eligible on either path.
Can the cash I take out count toward qualifying?
No. Cash-out proceeds never count as qualifying assets on the depletion path. Only assets you already hold, other than the home’s value, are counted.
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.
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
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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References
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 Much Cash Can a New Mexico Homeowner Take Out on an Asset Depletion Refinance? · Can You Get an Asset-Based Mortgage on a Pennsylvania Condo? · How to Document a Wire From a Sale Before an Asset-Based Mortgage
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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Required disclosures. Lendmire (NMLS# 2371349) operates as a licensed mortgage broker, not a direct lender or depository. The discussion in this article is general in nature and should not be relied upon as financial, legal, or tax advice — every investment scenario is unique and should be reviewed by a qualified professional. Any loan inquiry is subject to lender underwriting, and this article is not a commitment to lend or a guarantee of approval. Mortgage rates, loan terms, and program guidelines vary by borrower, property, and state, and may change without notice. Equal Housing Opportunity. Verify licensure at NMLS Consumer Access.