The Quick Read: Lenders that write this loan are mostly non-QM portfolio lenders and wholesale investors, not large retail banks, and the leverage ceiling depends on which asset path the borrower uses. Through select programs in Lendmire’s network, the asset depletion path allows up to 60% loan-to-value on a cash-out refinance of a principal residence, subject to underwriting.
- Asset depletion converts usable assets into monthly income by dividing them by 60 months.
- The asset qualifier path covers the whole loan with assets and documents no income, but its cash-out terms are set by the lender and not published.
- On the depletion path, securities count at 80% and retirement accounts at 70%.
- Privately held company stock is not an eligible asset on either path.
- Cash-out proceeds never count toward qualifying assets.
Lendmire is a mortgage broker, not a lender. A useful answer is more practical than a list of names: which kind of lender writes this loan, what sets the maximum, and which borrowers fit. The best program for your situation depends on your assets, your credit, and how much cash you want out of the home.
Which Lenders Actually Write This Loan?
Asset-based cash-out on a primary home comes mostly from non-QM portfolio lenders and wholesale investors. Which lenders write it depends on the property, the credit profile, and how much leverage you need.
This is why a broker matters here. Lendmire shops a scenario across multiple wholesale lenders and matches it to the program whose rules fit. Each lender sets its own formula, so the same statements can produce very different results from one program to the next. Naming institutions would not help you. Matching your assets to a program does.
The borrowers who fit best are cash-heavy and income-light: retirees, people who sold a business, recipients of an inheritance or settlement, early-retired professionals, and households living on a portfolio. Their balances are large. Their documented income is not. A traditional bank sees the second fact and stops there.
What Is an Asset-Based Cash-Out Refinance?
It is a consumer mortgage on your own home that is reviewed around assets instead of employment income. You take a new loan larger than the one you owe and receive the difference in cash. The lender does not ask for tax returns, pay stubs or employment verification. It does fully underwrite the file, and it documents your assets with statements.
That last point matters. This is not a no-doc loan. Your ability to repay still has to be shown, and the assets are the proof. The CFPB’s ability-to-repay guide lists income or assets other than the home itself as an acceptable basis for that determination.
Two paths exist, and a borrower is reviewed on one at a time.
Two Paths: Asset Qualifier or Asset Depletion
The asset qualifier path asks whether your eligible assets cover the entire loan. If they do, no employment or income is documented. The asset depletion path asks a different question. It divides your usable assets by 60 months to create a monthly qualifying income, and that income has to carry the housing payment and other debts through the debt-to-income test.
| Factor | Asset Qualifier | Asset Depletion |
|---|---|---|
| Core test | Assets cover whole loan | Assets become monthly income |
| Refinance leverage | Up to 75% LTV | 80% rate-and-term |
| Cash-out leverage | Lender-set, not published | 60% LTV |
| Loan amounts | Up to $4,000,000 | $125,000 to $3,500,000 |
| Credit | 600 minimum | Lender’s matrix |
All figures are ceilings on a principal residence or second home, subject to underwriting. They are not offers. On the qualifier path, the 75% refinance figure applies to refinances generally. How much cash a borrower can take out on that path is decided by the lender, so no number is stated here.
Where Maximum LTV Really Lands on a Primary Home
On the depletion path, the cash-out ceiling on a principal residence is 60% of appraised value. That is well below the 80% allowed on a purchase or rate-and-term refinance on the same path. Many borrowers confuse the headline purchase figure with the cash-out cap.
Two things follow. First, a lower appraisal shrinks your available cash directly, because the cap is a percentage of value. Second, a paid-off home is still a cash-out when you take money against it, so the lower ceiling applies.
Is 60% enough? Consider a borrower with a home worth $1,000,000 and no mortgage. At 60%, the loan ceiling is a fraction of value, and the assets still have to generate enough income to carry it. Here the asset test, not the LTV cap, is often the binding limit. A borrower can sit under the leverage ceiling and still fall short on income derived from assets.
How Underwriting Treats It, Step by Step
1. Occupancy comes first. You live in the home, so the file is a consumer-purpose loan on an owner-occupied program.
2. The path is chosen. Assets that cover the loan outright point to the qualifier path. Assets that work better as income point to depletion.
3. Assets are documented. The lender counts only accounts it can verify through statements, and each account type counts at a set percentage.
4. The test is run. On the qualifier path, usable assets must equal or exceed the loan. On the depletion path, usable assets divided by 60 months become income, which runs through the debt-to-income test.
5. The appraisal sets the cap. The maximum loan is the appraised value times the program’s cash-out percentage.
6. The file is classified. Cash-out or rate-and-term status is set by how much cash you receive, and each program draws its own line.
7. Disclosures and closing. Because it is a consumer mortgage, TRID disclosures apply.
Each lender sets its own formula, since federal rules do not prescribe one comprehensive underwriting standard. That is why programs differ.
What Counts as an Asset, and at What Percentage
On the asset qualifier path, brokerage accounts, certificates of deposit, money market and savings count at 100%. Retirement accounts count at 90% if you are under 59½ and at 100% from 59½ on. Accounts combine.
On the asset depletion path, cash accounts and certificates of deposit count at 100%, securities at 80%, retirement accounts at 70% at any age, and real-estate equity at 60%. The 70% retirement rate belongs to the depletion path only and never applies to the qualifier path.
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.
Privately held company stock is not an eligible asset on either path. A founder or shareholder routes around that by documenting liquid assets: seasoned proceeds from a sale or buyout, cash, public securities and retirement accounts at their percentages. Cryptocurrency, precious metals, collectibles, pledged or borrowed funds and business accounts beyond your ownership share are not published as eligible either. Converting them to a seasoned cash balance in a regulated account, with the source reviewed, is the documented route.
Two Worked Examples
The arithmetic below is illustrative, and the lender’s own calculation governs.
Qualifier path. Take 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 the borrower is reviewed on assets alone.
Depletion path. A borrower holds $1,500,000 in securities (80%, so $1,200,000) and $300,000 in cash (100%, so $300,000). That is $1,500,000 usable, divided by 60 months, which gives $25,000 of monthly qualifying income. That income then carries the housing payment and other debts through the debt-to-income test.
Seasoning, Minimums and Credit
On the qualifier path, funds need 60 days of seasoning, with two months of statements for each qualifying account. Reserves are not required at or below 75% loan-to-value. Above that, the lender sets them.
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. Qualified assets must be at least the lesser of $1,000,000 or 1.25 times the loan balance. When asset depletion is the only income source, liquid assets can never be below $250,000. Asset income may also supplement documented income up to a 45% debt-to-income ratio, and in that case the minimum-assets rule is waived.
Credit follows a 600 minimum on the qualifier path and the lender’s matrix on the depletion path. A first-time investor on the depletion path needs 700. Housing history is 0x30x12, and 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.
Where the General Rule Breaks
The home is not a rental. A rent-based loan is a business-purpose product, and a home you live in does not fit it. A business-purpose loan generally has to serve a genuine business use, and Regulation Z’s business-purpose exemption turns on the purpose of the credit. An LLC label does not convert an owner-occupied home. If you want equity out of your own residence to buy a rental, you are in consumer territory, which is the loan described here.
Investment property is different. On the depletion path, an investment property is business-purpose, with 65% leverage on a purchase or rate-and-term and 60% on a cash-out. Exact terms depend on the lender’s guidelines, property type, leverage, and a full review of the borrower’s file.
Cash-out proceeds cannot qualify you. On the depletion path, the money you pull out never counts as an asset for the same loan.
Statements that are too new. Funds that do not meet the seasoning rules do not count, except the excused categories above.
A HELOC is a different tool. It is not counted among the debts the ability-to-repay rule covers, according to the CFPB’s compliance guide. Whether it beats a cash-out refinance depends on your first-lien terms and how much you need.
Choosing a Path by Borrower Profile
| Profile | Likely fit | Why |
|---|---|---|
| Retiree with large savings | Qualifier or depletion | Depends on loan size versus assets |
| Founder after a sale | Depletion, after proceeds season | Sale funds are excused from seasoning |
| Portfolio-heavy, modest cash | Depletion | Securities count at 80% |
| Need maximum cash out | Depletion at 60% | Cash-out ceiling is the limit |
If your assets exceed the whole loan, the qualifier path avoids the income test entirely, but its cash-out terms are lender-set. If you want a published cash-out ceiling, the depletion path gives one at 60%. Which route is better turns on how large the loan is relative to what you hold.
Key Terms Defined
Cash-out refinance: A new, larger mortgage that pays off the old one and gives you the difference in cash.
Loan-to-value (LTV): The loan amount divided by the home’s appraised value.
Asset qualifier: A path where eligible assets cover the entire loan and no income is documented.
Asset depletion: A path where usable assets divided by 60 months become qualifying monthly income.
Seasoning: The length of time funds must sit in an account before they count.
What to Prepare
Gather statements for every account you want counted, two months for each on the qualifier path and the dated set on the depletion path. Pull a current credit report. Know your payoff and the home’s likely value. Decide how much cash you actually need, since that sets the loan size and the path. Lendmire’s asset-based mortgage programs page lays out the program structure, and consumer lending runs in 16 states: Alabama, California, Colorado, Florida, Georgia, Indiana, Michigan, Montana, New Mexico, North Carolina, Ohio, Pennsylvania, Tennessee, Texas, Virginia and Washington.
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.
Frequently Asked Questions
Do large retail banks offer asset-based cash-out refinances?
Rarely. This product comes mostly from non-QM portfolio lenders and wholesale investors. A broker can compare programs across several of them and match the one whose rules fit your statements and your property.
Can privately held company stock count toward qualifying?
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.
What is the maximum cash-out LTV on a primary home?
On the asset depletion path, it is 60% of appraised value on a principal residence, subject to underwriting. The qualifier path’s cash-out leverage is set by the lender and is not published, so no figure applies there. Final terms depend on lender guidelines, property type, leverage, and the borrower’s complete credit picture.
Is this a no-doc loan?
No. Every file is fully underwritten, and your assets are documented with statements. What you skip is tax returns, pay stubs and employment verification.
Can I use cash-out proceeds to qualify?
No. On the depletion path, cash-out proceeds never count as qualifying assets. Only assets you already hold, at their eligible percentages, are used.
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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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 ATR/QM small entity compliance 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: Best Asset-Based Cash-Out Refinance Program to Fund Spec Home Construction · Asset-Based Cash-Out Refinance Requirements on a Primary Home · Best Asset-Based Cash-Out Refinance Program at 50% LTV
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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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.