The Quick Read: Large depository banks rarely write this loan. The programs that qualify a borrower on liquid assets mostly sit with non-bank and non-QM lenders, and a broker can shop several of them at once. Through select programs, a borrower is qualified on documented assets rather than pay stubs or tax returns, subject to underwriting and lender guidelines.
- Two paths exist: assets cover the whole loan, or assets are converted into monthly qualifying income.
- Brokerage, CD, money market and savings balances count at 100% on the asset qualifier path.
- On the asset depletion path, securities count at 80% and retirement accounts at 70%.
- Cash-out leverage on the depletion path is 60%, whatever the occupancy. On the qualifier path, the lender sets cash-out terms and does not publish them.
- Privately held company stock is not an eligible asset on either path.
Lendmire is a mortgage broker. It arranges these loans through select lenders in its wholesale network and does not lend itself.
Do Banks Actually Offer This?
Big banks and large retail lenders mostly do not. Their cash-out products lean on tax returns, pay stubs and a debt-to-income test built on employment income. Asset-based qualifying is a non-QM method, and the lenders that write it depend on the program, the property and the borrower.
That is why a list of banks is the wrong tool here. No honest list exists, and any ranking would go stale or mislead. The better question is which wholesale lenders run an asset-based program that fits your scenario. A broker that shops several lenders can match your statements, property and credit to the right guidelines.
Lendmire’s asset-based mortgage programs are placed through select lenders in its network. Consumer 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.
Key Terms Defined
- Asset qualifier: a path where eligible assets, after credit percentages, must equal or exceed the entire loan amount. No employment or income is documented.
- Asset depletion: a path where usable assets are divided by 60 months to produce monthly qualifying income. That income runs through the debt-to-income test.
- Usable assets: the share of each account balance that counts after the lender applies its credit percentage.
- Haircut: the part of a balance that does not count. If securities count at 80%, the haircut is 20%.
- Seasoning: how long funds have sat in an account, shown by statements.
How Underwriting Treats It, Step by Step
Every file is fully underwritten. Nothing about this is a no-documentation loan. What changes is the evidence: statements replace tax returns, pay stubs and employment verification.
1. Pick the path. A borrower is qualified on one path at a time. The qualifier path asks whether assets cover the loan. The depletion path asks whether assets, converted to income, carry the payment.
2. Document the assets. The assets are the evidence, and the lender relies on statements. The qualifier path wants 60 days of seasoning and two months of statements per qualifying account. The depletion path wants statements at least 120 days old at application, plus the latest statement within 45 days. Funds from a business sale, inheritance or legal settlement are excused from that seasoning.
3. Apply the credit percentages. Each account type counts at a set share of its balance. The next section lays these out.
4. Compare or convert. On the qualifier path, usable assets are compared to the loan amount. On the depletion path, usable assets are divided by 60 months.
5. Check the property and credit. The appraisal and the cash-out leverage cap set the maximum loan. Credit also matters. The qualifier path publishes a 600 minimum score, and the depletion path follows the lender’s matrix. Housing history is 0x30x12, though one 30-day late in the last twelve months is considered case by case.
6. Review the source of funds. Cash-out proceeds never count as qualifying assets. A down payment or borrowed money is not a substitute for the borrower’s own seasoned funds.
This is a non-QM method, and it still involves a repayment review. The lender must verify the assets it relies on using third-party records, as Lexology’s summary of the non-QM rules explains.
Which Assets Count, and at What Share
On the qualifier path, brokerage accounts, CDs, money market and savings count at 100%. Retirement accounts (401(k) and IRA) count at 90% under age 59½ and 100% at 59½ or older. Accounts combine.
On the depletion path, the percentages are lower:
| Asset | Qualifier path | Depletion path |
|---|---|---|
| Cash and savings | 100% | 100% |
| Certificates of deposit | 100% | 100% |
| Brokerage / securities | 100% | 80% |
| Retirement accounts | 90% under 59½, 100% after | 70% at any age |
| Real-estate equity | Not published | Not counted |
Never read across the columns. A borrower on one path uses that path’s table.
Some holdings are not eligible at all. Privately held company stock is not an eligible asset on either path. Cryptocurrency, precious metals, collectibles and pledged or borrowed funds are not published as eligible either. The route for those holders is documentation: convert the holding to cash in a regulated account, let the funds season, and let the lender review the source. The depletion path also 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.
A founder with closely held shares should plan around the sale or buyout. Seasoned proceeds from a sale or conversion, plus cash, public securities and retirement accounts at their percentages, are what the file is built from.
The Two Paths, Side by Side
| Factor | Asset qualifier | Asset depletion |
|---|---|---|
| How it works | 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 |
| Purchase leverage | Up to 80% | Up to 80% principal residence or second home; 65% investment property |
| Refinance leverage | Up to 75% | Rate-and-term at 80% principal residence or second home, 65% investment property |
| Cash-out leverage | Set by the lender, not published | 60% on all occupancies |
| Credit | 600 minimum | Lender’s matrix |
All figures are ceilings and floors, not offers, and they are subject to underwriting and lender guidelines.
The qualifier path states no cash-out figure because the lender sets it. A borrower should ask the broker what the lender’s program allows before assuming a number.
A Worked Example
Take a qualifier-path file with an $800,000 loan. The borrower holds $330,000 in brokerage accounts (100% counts, so $330,000), $300,000 in a 401(k) while under 59½ (90% counts, so $270,000) and $200,000 in savings (100% counts, so $200,000). Usable assets total $800,000: $330,000 plus $270,000 plus $200,000. That matches the loan, so the file is reviewed on assets alone, subject to the lender’s review.
Now consider a depletion-path file. A borrower holds $1,500,000 in securities (80% counts, so $1,200,000) and $300,000 in cash (100% counts, so $300,000). Together, $1,200,000 and $300,000 make $1,500,000 of usable assets. Dividing by 60 months gives $25,000 of monthly qualifying income. That income then has to carry the housing payment and other debts through the debt-to-income test.
These examples are illustrative. The lender’s own calculation governs.
Depletion Minimums and When Income Supplements
The depletion path has a floor on assets. A borrower needs qualified assets of at least the lesser of $1,000,000 or 1.25 times the loan balance. When depletion is the only income source, liquid assets never fall below $250,000.
Asset-derived income can also supplement documented income, up to a 45% debt-to-income ratio. When it supplements, the minimum-assets rule is waived. That suits a borrower with some employment or pension income who needs a little more to clear the ratio.
First-time investors on the depletion path need a 700 score. Multiple bankruptcies are not eligible, and a housing event needs 4 years of seasoning on that path.
Where the General Rule Breaks
Consumer purpose versus business purpose. A loan on a non-owner-occupied rental is generally treated as business purpose. The CFPB’s Regulation Z page says credit to acquire, improve or maintain a non-owner-occupied rental is deemed business purpose, and credit to someone other than a natural person, such as an LLC, falls outside the scope too. The eCFR text of the rule sets out the same exemptions. Purpose is decided file by file, so the label on the property does not settle it.
Investment property on the depletion path. Investment property is financed only on the asset depletion path, which makes it the only route in the program for a rental. The loan is business-purpose, and leverage drops to 65% on a purchase or rate-and-term refinance and 60% on a cash-out. The asset qualifier path, by contrast, covers a principal residence or second home.
Cash-out proceeds. They never count toward qualifying assets. A borrower who plans to pull cash from the property and then count it as reserves will not get credit for it.
Thin or illiquid portfolios. Large net worth in real estate, a private company or crypto does not translate into usable assets. Statements show what counts.
Agency programs. Agency program rules are written for their own programs, and asset-based qualifying of this kind is not part of them, so the non-QM route is where this loan lives.
Tax treatment can depend on how the funds are used and how the property is held; borrowers should keep clear records and speak with a qualified tax professional before relying on any deduction.
How This Compares to a DSCR Cash-Out
A DSCR cash-out on a rental qualifies primarily on property-level rental income covering the payment, subject to lender guidelines. The ceiling on proceeds comes from the property’s own coverage. A larger balance lowers coverage, so thin rent can cap what the loan can be.
An asset-based file does not test the rent that way. It asks whether the borrower’s assets cover the loan or carry the debt-to-income test. For a rental with thin coverage and a borrower with large balances, that can matter. The trade-off is lower leverage on cash-out, and a wholesale network also offers select sub-1.00 coverage programs where LTV and terms adjust. A borrower with strong rent but few liquid assets may be better matched to DSCR, which looks to the rent. A bank statement program fits a borrower who documents income through deposits.
Lendmire’s piece How Lenders Underwrite an Asset-Based Cash-Out Refinance With No Income Other Than Assets goes deeper on the underwriting side.
Which Borrowers Fit
The program is built for a cash-heavy, income-light profile: retirees, sellers of a business, recipients of an inheritance or settlement, early-retired professionals, and households living on a portfolio. Balances are large and documented income is not.
The decision usually comes down to a few questions:
- Do your eligible assets equal or exceed the whole loan? That points to the qualifier path.
- Are your assets large but the loan bigger than they cover? That points to depletion, where the assets become income.
- Is the collateral a rental? Then the depletion path applies, at lower leverage.
- Are the assets mostly in private stock, crypto or real estate? Plan to convert them and season the funds first.
Lendmire’s piece Best Asset-Based Cash-Out Refinance Program Without a Job and Relying on Liquid Assets covers how to match a program to a situation.
What to Prepare Before Talking to a Broker
Gather the statements first. Two months for each account covers the qualifier path. For depletion, you need a statement at least 120 days old and a current one within 45 days. Add a credit report, the property address and an estimate of value, and any documentation of where large recent deposits came from.
A broker that shops several wholesale lenders can compare overlays on asset types, credit scores and leverage. The best program depends on your situation: property type, credit profile, leverage need and documentation. No single lender suits every file. Every program is subject to underwriting, and programs change.
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.
Frequently Asked Questions
Do regular banks offer asset-based cash-out refinances?
Large banks mostly do not. Their cash-out products rest on employment income and tax returns. The asset-based programs sit mainly with non-bank and non-QM lenders, and availability depends on the program. A broker shops that field for you.
Is this a no-documentation loan?
No. The file is fully underwritten and the assets are documented with statements. What you skip is tax returns, pay stubs and employment verification. The lender must verify the assets it relies on through third-party records.
Can retirement accounts count?
Yes. On the qualifier path, 401(k) and IRA balances count at 90% under age 59½ and 100% at 59½ or older. On the depletion path, retirement accounts count at 70% at any age. Both are subject to underwriting.
Does privately held company stock count?
No. The route is a sale or buyout that becomes a seasoned cash balance in a regulated account.
Can I use cash-out proceeds as my assets?
No. Cash-out proceeds never count as qualifying assets, and borrowed or pledged funds are not published as eligible. Only your own documented, seasoned assets count.
A deeper walk-through of investment-property equity extraction lives in 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. Lexology, non-QM ability-to-repay commentary
This article is part of Lendmire’s asset-based mortgage program — full qualification details, guidelines, and scenarios live on the program page.
Related reading: Top Asset-Based Cash-Out Refinance Providers With Non-Traditional Income · Can You Get Approved for an Asset-Based Cash-Out Refinance With No Income Verification? · Asset-Based Cash-Out Refinance Lenders With Nontraditional Income Proof
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.