The Quick Read: The answer often sits with a mortgage broker and its wholesale lenders rather than with a bank’s retail menu, because asset-based cash-out terms above $1 million are set program by program, and a broker can compare several programs against one set of statements.
- Two paths exist. On the asset qualifier path, eligible assets must cover the whole loan and no income is documented. On the asset depletion path, usable assets divided by 60 months become qualifying income.
- Cash-out is tighter than purchase. On the depletion path, a cash-out refinance on a principal residence or second home is capped at 60% loan-to-value, subject to underwriting. On the qualifier path, cash-out terms are set by the lender and are not published.
- Loan size is not the barrier. Loans run to $4,000,000 on the qualifier path and $125,000 to $3,500,000 on the depletion path, through select programs.
- Privately held company stock does not count. It is not an eligible asset on either path.
Lendmire is a mortgage broker. It does not lend. It places asset-based mortgages with select lenders in its wholesale network, and its consumer mortgage lending is licensed in 16 states. Every file is fully underwritten. The assets are documented with statements. The borrower provides no traditional personal-income documentation, pay stubs or employment verification.
Why Banks Is the Wrong Frame
Large banks and other depository institutions each write their own rules for asset-based lending. Some run relationship programs in-house. Those terms belong to the institution, they change, and a borrower sees only one menu at a time.
A broker sees many menus. The lenders that write asset-based cash-out loans above $1 million depend on the scenario: the property, the asset mix, the credit profile and the amount of cash needed. The best program for your situation is a matching exercise, not a name on a list.
That is why this article does not rank lenders. It explains how these programs work, so you can judge any offer you see.
What “Above $1 Million” Means for an Asset-Based Loan
The $1 million line is a market label for a larger loan. It is not a rule that switches on a special program. What matters is the new loan amount, because the new loan is what your assets must support.
A loan above $1,000,000 fits inside the ranges of both paths. Here is how the two paths compare. All figures are ceilings and floors through select programs, subject to underwriting, never offers.
| Factor | Asset qualifier path | Asset depletion path |
|---|---|---|
| How assets are used | Cover the entire loan | Become monthly income |
| Income documented | None | Derived from assets |
| Loan range | Up to $4,000,000 | $125,000 to $3,500,000 |
| Purchase leverage | Up to 80% | Up to 80% (primary or second home) |
| Refinance leverage | Up to 75% | 80% rate-and-term; 60% cash-out |
| Credit | 600 minimum | The lender’s matrix |
A borrower is reviewed on one path at a time. The two tables never blend. Name the path every time you see a figure.
The Asset Qualifier Path, Step by Step
This path asks one question: do your eligible assets equal or exceed the entire loan? If yes, the lender documents the assets and does not document employment or income.
The steps run in order:
1. Gather statements for every account you plan to use. Two months of statements are needed for each qualifying account. 2. Confirm that each account is seasoned for 60 days. 3. Apply the credit percentages to each balance. 4. Add the usable balances. The total must meet or exceed the loan amount. 5. Check credit. The published floor on this path is a 600 score.
Take an $800,000 loan. Say you hold $330,000 in brokerage accounts, which count at 100%. Add $300,000 in a 401(k) while under age 59½, which counts at 90%, or $270,000. Add $200,000 in savings at 100%. The usable total is $800,000, so the loan is reviewed on assets alone. This is illustrative, and the lender’s own calculation governs.
Leverage on this path is up to 80% on a purchase and up to 75% 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, so it has to be confirmed program by program. Reserves are not required at or below 75% loan-to-value. Above that, the lender sets them.
The Asset Depletion Path, Step by Step
This path turns assets into income. Usable assets are divided by 60 months. The result is a monthly qualifying income. That income must carry the housing payment and your other debts through the program’s debt-to-income test.
Consider $1,500,000 in securities, which count at 80%, or $1,200,000. Add $300,000 in cash at 100%. Usable assets total $1,500,000. Divided by 60 months, that is $25,000 of monthly qualifying income. That income then has to carry the housing payment and other debts. Again, this is illustrative, and the lender’s calculation governs.
Cash-out proceeds never count as qualifying assets. You cannot take cash out and then use it to qualify for the same loan.
Three program rules matter on this path:
- Qualified assets must be at least the lesser of $1,000,000 or 1.25 times the loan balance. Separately, when asset depletion is the only income source, the liquid portion can never fall below $250,000.
- Asset income can supplement documented income, up to a 45% debt-to-income ratio. When it supplements, the minimum-assets rule is waived.
- On the depletion path, 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.
A first-time investor on this path needs a 700 score. Housing history is 0x30x12. One 30-day late in the last twelve months is reviewed case by case. Multiple bankruptcies are not eligible, and a housing event needs four years of seasoning.
How Cash-Out Limits Work on a Large Loan
On the depletion path, the cash-out numbers are firm. A cash-out refinance on a principal residence or second home is capped at 60% loan-to-value. A cash-out on an investment property is also capped at 60%. A purchase or rate-and-term refinance gets more room: up to 80% on a principal residence or second home, and up to 65% on an investment property. An investment property loan is business-purpose and runs only on the depletion path.
A 60% ceiling on a loan above $1,000,000 means the property value has to be well above that loan. Equity is the first test, and the asset total is the second. Both must work at the same time.
A cash-out refinance, as the CFPB describes it, lets a homeowner tap equity, often to pay down other debt. The CFPB’s home equity guide covers the tradeoffs and why keeping some equity in the home matters. The point for an asset-based borrower is simple. The loan is bigger, and the assets that qualify you do not grow when the loan does.
Agency rules differ from these programs. Conforming loans follow their own limited cash-out definitions, and those rules apply to agency loans only. They are not the rules for the asset-based programs described here.
Which Assets Count
The percentages below show the share of each balance that counts. The haircut is the part that does not count.
| Asset | Qualifier path | Depletion path |
|---|---|---|
| Brokerage accounts | 100% | 80% (securities) |
| Certificates of deposit | 100% | 100% |
| Money market | 100% | 100% (cash accounts) |
| Savings | 100% | 100% (cash accounts) |
| Retirement accounts | 90% under 59½; 100% at 59½+ | 70% at any age |
| Real-estate equity | Not listed | 60% |
Accounts combine. A retirement balance on the qualifier path counts at 90% until age 59½, and then at 100%.
Privately held company stock is not an eligible asset on either path. A founder or shareholder qualifies through documented liquid assets. That means seasoned proceeds from a sale or buyout, cash, public securities and retirement accounts at the percentages above.
Several other asset types are not published as eligible on either path. These include cryptocurrency, precious metals, collectibles, business accounts beyond your ownership share, and pledged or borrowed funds. The documented route is to convert them to a seasoned cash balance in a regulated account. The lender then reviews the source of the funds.
Some other items are 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.
Why a Bank May Decline an Asset-Rich Borrower
A bank that underwrites on documented income will look at your tax returns and pay stubs. If your income is light and your balances are large, that review can miss the real picture.
The usual borrower here is a retiree, a business seller, an inheritance recipient or an early-retired professional. Their balances are large and their documented income is not. An asset-based program reads those files on assets, which is the strength they bring.
That is why the path matters. If a lender declines, ask which test it used and whether another path or program fits your statements.
Asset-Based vs. HELOC vs. Income-Based Jumbo
Each product reads a different part of your finances. These are the general designs of those products, not this program.
- A home equity line of credit is a second loan on the property. Its lender sets its own credit and income review.
- A full-documentation jumbo loan uses income, assets, credit and debt-load review. It suits borrowers whose documented income is strong.
- An asset-based mortgage rests on balances. The qualifier path documents no income. The depletion path converts assets to income.
The asset-based route fits when documented income understates what you hold. It does not fit when your statements are thin or your assets sit in categories that do not count.
Document Checklist and Questions to Ask Any Lender
Bring the following to a first conversation:
- Statements for every account you plan to use, with the dates visible.
- A list of which accounts are retirement, brokerage, cash or CDs.
- The property address and your estimate of its value.
- Payoff information for the current mortgage.
- Evidence of where large recent deposits came from, such as a sale or inheritance.
- A government-issued ID and your credit authorization.
Ask each lender these questions:
1. Is cash-out allowed on the path I am being offered, and at what leverage?
2. Which of my accounts count, and at what percentage?
3. How old do my statements need to be, and how many months does each account need?
4. Does the program allow my property type and occupancy?
5. What are the minimum-asset and credit rules at my loan size?
6. Can derived income supplement my other income?
A broker asks these same questions across several lenders and compares the answers against your file.
Key Terms Defined
Asset qualifier path: the route where eligible assets must cover the entire loan and no income is documented.
Asset depletion path: the route where usable assets divided by 60 months become monthly qualifying income.
Cash-out refinance: a new, larger mortgage that pays off the old one and returns the difference as cash.
Seasoning: the length of time funds have been in your account, shown on statements.
Loan-to-value: the loan amount divided by the property’s appraised value.
Haircut: the part of an asset balance that does not count toward qualifying.
Frequently Asked Questions
Do banks offer an asset-based cash-out refinance above $1 million?
Some do inside their own relationship programs, but terms are set by each institution and change. A mortgage broker compares select wholesale lenders instead, so one set of statements is read against several programs. Eligibility review depends on the property, assets, credit and loan amount, subject to underwriting.
Does privately held company stock count as an asset?
No. A founder’s route is documented liquid assets, such as seasoned proceeds from a sale or buyout, cash, public securities and retirement accounts at their percentages.
Can cash-out proceeds count as qualifying assets?
No. On the depletion path, cash-out proceeds never count as qualifying assets. Qualification rests on the balances you already hold.
Is this a no-documentation loan?
No. Every file is fully underwritten and the assets are documented with statements. What is not required are tax returns, pay stubs or employment verification on the qualifier path.
What if my assets are in crypto?
Cryptocurrency is not published as eligible on either path. The documented route is to convert it to a seasoned cash balance in a regulated account, with the source reviewed by the lender.
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 programs based on your statements, the property, credit profile, leverage, and your goals. Programs change and every file is underwritten individually. Nothing here is 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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References
1. CFPB: CFPB Report Finds Cash Out Mortgage Refinance Borrowers Improve Credit Scores
2. CFPB: Using Home Equity Guide
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 Lenders Underwrite an Asset-Based Cash-Out Refinance After Selling a Business · How to Qualify and Apply for an Asset-Based Cash-Out Refinance as a Retiree · Best Asset-Based Cash-Out Refinance Program Without a Mortgage
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.