The Quick Read: Banks as a category rarely advertise this loan, but select lenders in a wholesale network do offer it, and it lets eligible assets either cover the whole loan or convert into qualifying income, so the file skips traditional personal-income documentation, pay stubs and employment verification while every asset is documented with statements.
- Two paths exist. The asset qualifier path covers the entire loan with eligible assets. The asset depletion path turns usable assets into monthly income over 60 months.
- Cash-out depends on the path. On the asset depletion path, cash-out tops out at 60% loan-to-value on a principal residence, a second home or an investment property. On the asset qualifier path, the lender sets cash-out terms, and they are not published.
- Assets are fully documented. Statements, seasoning and credit still apply, and every file is underwritten individually.
- A broker is the practical route. Lendmire is a mortgage broker that compares wholesale lenders and matches your statements to the right program.
What an Asset-Based Cash-Out Refinance Actually Is
An asset-based cash-out refinance replaces your current mortgage with a larger one and pays you the difference. The qualifying story comes from your balance sheet, not your paycheck. That fits retirees, people who sold a business, heirs, early-retired professionals and households living on a portfolio. Their balances are large and their documented income is small.
The phrase “no income verification” needs careful handling. The lender does not ask for tax returns, pay stubs or employment verification. It still underwrites the file. It reviews credit, the appraisal, the property, the liens and every qualifying account. Think of it as swapping one proof for another. Income proof goes out. Asset proof comes in.
Lendmire’s asset-based mortgage programs are placed through select lenders in its network, and the figures below reflect those programs. They are ceilings and floors, not offers. Each is subject to underwriting.
So Which Banks Offer It?
No bank-by-bank list can be trusted here, and this article does not offer one. Programs change, each lender sets its own guidelines, and the lenders that write this loan depend on the property, the assets and the borrower’s profile.
Here is how the lender channels differ in general.
| Channel | How it tends to treat asset-based files |
|---|---|
| Big banks and large retail lenders | Often built around income documents and set cash-out limits |
| Private banks and portfolio lenders | May weigh the whole relationship and your deposits |
| Wholesale non-bank lenders through a broker | Publish asset-based guidelines and write them directly |
Wholesale lenders are the channel that publishes asset-based guidelines. A broker shops that channel. A borrower who walks into one retail lender gets one set of guidelines. A broker compares several and picks the program that fits your accounts, your property and your leverage needs. The best program for your situation depends on those details.
The Two Paths, Side by Side
Underwriting starts with one choice. You qualify on one path at a time, and the two paths’ figures are never combined. Documented income can supplement depletion income, but that is a use of the depletion path, not a blend of the two.
| Factor | Asset qualifier | Asset depletion |
|---|---|---|
| Core idea | Assets cover the whole loan | Assets become monthly income |
| Income documented | None | Derived income, run through DTI |
| Refinance leverage | Up to 75% | Cash-out up to 60% |
| Loan amounts | Up to $4,000,000 | $125,000 to $3,500,000 |
| Best fit | Very large balances | Balances that must carry a payment |
The depletion path also covers investment property. On a purchase or rate-and-term refinance, the maximum is 65% on an investment property. On a cash-out refinance, it is 60%. Principal residences and second homes reach 80% on a purchase or rate-and-term refinance on the depletion path.
How Underwriting Treats the Asset Qualifier Path
The asset qualifier path asks one question. Do your eligible assets, after the credit percentages, equal or exceed the entire loan amount? If they do, no employment or income is documented.
Leverage on this path goes up to 80% on a purchase and 75% on a refinance, on a principal residence or second home. Whether cash-out proceeds are allowed on this path, and at what leverage, is the lender’s call. Ask before you assume.
Each asset counts at a share of its balance.
- Brokerage accounts, certificates of deposit, money market and savings: these count at 100%.
- 401(k) and IRA balances: these count at 90% under age 59½ and at 100% at 59½ or older.
- Accounts combine: you can stack several to reach the loan amount.
Here is an illustration. Take an $800,000 loan. A borrower holds $330,000 in brokerage accounts (100% counts, so $330,000), $300,000 in a 401(k) under 59½ (90% counts, so $270,000) and $200,000 in savings (100% counts, so $200,000). That totals $800,000 of usable assets, which covers the loan on assets alone. The lender’s own calculation governs.
Other requirements are plain. Assets need 60 days of seasoning and two months of statements for each qualifying account. The credit floor is 600. Reserves are not required at or below 75% loan-to-value. Above that, the lender sets them.
How Underwriting Treats the Asset Depletion Path
The depletion path divides usable assets by 60 months. The result is monthly qualifying income. That income then carries the housing payment and your other debts through the debt-to-income test.
Assets count at lower shares here.
- Cash accounts and certificates of deposit: these count at 100%.
- Securities: these count at 80%, so 20% does not count.
- Retirement accounts: these count at 70% at any age, so 30% does not count.
- Real-estate equity: this counts at 60%.
Take this illustration. A borrower holds $1,500,000 in securities (80% counts, so $1,200,000) and $300,000 in cash (100% counts, so $300,000). That is $1,500,000 usable, divided by 60 months, which 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.
Several minimums apply. You need qualified assets of at least the lesser of $1,000,000 or 1.25 times the loan balance. When depletion is your only income source, you need at least $250,000 liquid. If asset income only supplements documented income, it can go up to a 45% debt-to-income ratio, and the minimum-assets rule is waived.
Statement rules differ too. Statements must be at least 120 days old at application, and the most recent must fall within 45 days. Funds from the sale of a business, an inheritance or a legal settlement are excused from that seasoning.
Credit follows the lender’s score and loan-amount matrix. A first-time investor on this 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. A housing event needs four years of seasoning.
What Does Not Count, and the Route Around It
Some assets are not eligible, and some founders and crypto holders learn that late.
Privately held company stock is not an eligible asset on either path. It never counts at any percentage. A founder or shareholder with most of their wealth in a closely held company has a documented route. That route is a sale or buyout, converted to a seasoned cash balance. Cash, public securities and retirement accounts then count at their shares.
On the depletion path these are also not eligible:
- custodial accounts
- deferred compensation
- escrow accounts
- foreign funds
- cash on hand
- stock options
- non-vested restricted stock units
- funds from non-regulated financial companies
Cryptocurrency, precious metals and collectibles are not published as eligible on either path. Neither are pledged or borrowed funds, or business accounts beyond your ownership share. The route is the same: convert to cash in a regulated account and let the lender review the source.
Cash-out proceeds never count as qualifying assets. Do not plan to use the money you pull out to meet the requirement that lets you pull it out.
Why This Is Not a Loophole
Skipping income review is allowed because of how the loan is classified, not because rules are bent. Credit extended for business purposes falls outside certain consumer lending rules, and federal regulations treat credit to acquire, improve or maintain a non-owner-occupied rental as business purpose. The investment-property lane on the depletion path rests on that classification.
Principal residences and second homes are different. That loan is a consumer mortgage, and consumer disclosures apply. The lender’s ability-to-repay review rests on your documented assets.
Classification matters. A law firm’s guide gives this example: a cash-out refinance of a single-family rental to a natural person, used to pay personal taxes, is consumer purpose. If the proceeds go to personal use, the business-purpose label becomes risky. Another law firm notes that misclassifying a loan can bring penalties. Be honest with the lender about what the money is for.
What You Skip and What You Still Provide
Skipped: personal tax returns, pay stubs and employment verification.
Still required:
- statements for every qualifying account, aged to the path’s rules
- a credit review
- an appraisal of the property
- a review of the existing mortgage and any other liens
- proof of identity and occupancy
- the source of any large recent deposit
This is why “no documentation” is the wrong label. The documentation is just different. Underwriting looks at the assets instead of the paycheck.
Which Path Fits Which Borrower
The deciding variable is how the balance sheet compares with the loan. A decision table makes it concrete.
| Your situation | Likely path |
|---|---|
| Eligible assets equal or exceed the whole loan | Asset qualifier |
| Large portfolio, but loan exceeds usable assets | Asset depletion |
| Income-light investor refinancing an investment property | Asset depletion at 60% cash-out |
| Founder holding private company stock | Neither, until stock converts to seasoned cash |
| Some documented income plus a portfolio | Depletion as a supplement, up to a 45% debt-to-income ratio |
Here is how to think through it. If your assets cover the entire loan, the qualifier path is the cleaner file. There is no income math. But cash-out terms there are set by the lender and unpublished, so a borrower who needs a specific cash amount often finds the depletion path more predictable. It has a published 60% cash-out ceiling.
The flip point is the loan size relative to assets. On the depletion path, a bigger loan needs bigger assets (1.25 times the loan, or $1,000,000 if less). A borrower whose assets fall short on both paths may need a smaller loan or a different program entirely.
When Another Product Fits Better
Asset-based financing is not always the right tool. A borrower who documents income with bank deposits belongs on a bank statement program instead. Business-purpose rental financing that qualifies primarily on property-level rental income covering the payment, subject to lender guidelines, is DSCR. A home equity line is another option for someone who wants to keep a low existing first mortgage. Each has its own rules, and none of those rules apply to this program.
Asset-based makes sense when your documented income is thin and your liquid balances are heavy. If your income fills out a standard application, a conventional path may carry a lower cost. If you qualify for it, use it.
Key Terms Defined
Asset qualifier: a path where eligible assets, after credit percentages, equal or exceed the entire loan.
Asset depletion: a path that divides usable assets by 60 months to create monthly qualifying income.
Usable assets: the share of each account that counts after the program’s percentages.
Haircut: the part of an asset’s balance that does not count, such as the 20% that does not count on securities.
Seasoning: the time funds must sit in an account or on statements before they qualify.
Debt-to-income test: the check that compares monthly debts, including the new housing payment, with qualifying income.
Questions to Put to Any Lender
Before you commit, ask:
- Which path will my file run on?
- Which of my accounts count, and at what percentage?
- Are cash-out proceeds allowed on this path, and at what leverage?
- How old must my statements be?
- Does any existing home equity line or second lien affect eligibility?
- What will the lender ask about use of proceeds?
Be careful with anyone who promises approval before reviewing statements. Asset-based loans are fully underwritten, and no honest lender can promise an outcome.
Frequently Asked Questions
Do big banks offer an asset-based cash-out refinance?
Some may, but this loan is more commonly written by wholesale lenders and select private lenders. A bank’s appetite depends on its own guidelines, which change. A broker that works with several wholesale lenders can compare programs for your statements and property. Ask each lender which path it uses and whether cash-out is allowed.
Can retirement accounts help me qualify?
Yes. On the asset qualifier path, 401(k) and IRA balances count at 90% under age 59½ and at 100% at 59½ or older. On the asset depletion path, retirement accounts count at 70% at any age. Rules differ by path, so name the path whenever you quote a figure.
Does privately held company stock count toward the assets?
No. The documented route is a sale or buyout, with the proceeds seasoned as cash. Public securities and retirement accounts count at their own percentages.
Can I count the cash-out money as one of my assets?
No. Cash-out proceeds never count as qualifying assets. The assets that qualify you must be documented in your accounts and seasoned before the loan funds.
Is there really no underwriting on a loan like this?
Every file is fully underwritten. The lender reviews credit, the property appraisal, the existing liens and each qualifying account statement. What drops out is income documentation: tax returns, pay stubs and employment verification. The loan is subject to underwriting and the lender’s own calculation governs.
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, and 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. This is not a commitment to lend. Reach the team at 828-256-2183.
The cleanest asset-based files are the ones where the investor already knows which account balances will carry the loan and which will not.
Investors weighing their equity options can start with Lendmire’s guide to cash-out refinance on an investment property.
About Lendmire
Lendmire — NMLS# 2371349 — is a mortgage broker that arranges bank statement, P&L-only, 1099-only and asset-based home financing in 16 states through wholesale lenders, on primary residences, second homes and investment properties. Every option is subject to the lender’s guidelines and full underwriting. 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 §1026.3 exemptions
2. Doss Law, Business Purpose Exemption Simplified
3. Hunton, Beware of Business Purpose
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 With No Income Other Than Assets · Asset-Based Cash-Out Refinance Lenders on a Condo · Asset-Based Cash-Out Refinance Lenders When Traditional Income Verification Is a Barrier
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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Important disclosures. Lendmire (NMLS# 2371349) is a licensed mortgage brokerage. Lendmire is not a direct lender, depository institution, or financial advisor. All loan inquiries are subject to lender underwriting; this article does not constitute a commitment to lend. Rates, terms, and program guidelines are subject to change without notice and vary by borrower profile, property type, and state. Information in this article is general in nature and is not financial, legal, or tax advice. Equal Housing Opportunity. NMLS Consumer Access: nmlsconsumeraccess.org.