The Quick Read: Asset-based programs do not reliably push cash-out leverage past the usual ceiling. On the asset depletion path, a cash-out refinance tops out at 60% loan-to-value on a principal residence, second home or investment property, while a rate-and-term refinance of a principal residence or second home reaches 80%, subject to underwriting and select programs. The best program for your file depends on your assets, your property and whether you need cash back at all.
- The cap is a lender and program overlay, not a single national number.
- The asset qualifier path covers the whole loan with eligible assets and documents no employment or income. Its cash-out leverage is set by the lender and is not published.
- The asset depletion path turns assets into monthly income. Cash-out there is 60% on a cash-out refinance, and cash-out proceeds never count as qualifying assets.
- Many borrowers who want more leverage are better served by a refinance with no cash back.
What “Above the Usual Cap” Actually Means
The phrase covers three different things, and mixing them up leads to bad expectations. A cash-out refinance pays you cash and carries the lowest leverage. A rate-and-term refinance changes the loan but pays no cash, so it usually carries more leverage. A purchase carries the most.
Most borrowers asking this question want one of two things. They want more cash than a standard cash-out ceiling allows, or they want to keep a higher loan balance without cash back. Those are different requests with different answers.
Here is the honest broker read. No asset-based program in the wholesale network reliably goes well above the usual cash-out cap. What asset-based underwriting changes is how you qualify, not how much of the home’s value a lender will lend against on a cash-out. If you hold large balances and little documented income, the program can make a refinance possible. It rarely makes a bigger cash-out possible.
Two Paths, One at a Time
A borrower is reviewed on one path at a time. Never blend the two tables.
| Factor | Asset qualifier | Asset depletion |
|---|---|---|
| How assets are used | Cover the entire loan | Become monthly income |
| Income documented | None | Derived from assets |
| Purchase leverage | Up to 80% | Up to 80% (primary/second home) |
| Refinance leverage | Up to 75% | 80% rate-and-term (primary/second home) |
| Cash-out leverage | Lender-set, not published | 60% on all occupancies |
| Loan amounts | Up to $4,000,000 | $125,000 to $3,500,000 |
On an investment property, the depletion path runs 65% on a purchase or rate-and-term refinance and 60% on a cash-out. Qualifier-path figures apply to a principal residence or second home. Every figure is a ceiling, subject to underwriting, and never an offer.
The qualifier path is the cleaner file. Eligible assets, after the credit percentages, must equal or exceed the entire loan amount. Nobody documents a paycheck. The assets are documented with statements, and the lender still underwrites the file in full: no traditional personal-income documentation, pay stubs or employment verification, but plenty of paper.
The depletion path divides usable assets by 60 months. The result is a monthly qualifying income that carries the housing payment and other debts through the debt-to-income test. It fits borrowers whose assets are big but fall short of the whole loan.
How Underwriting Treats a Cash-Out File, Step by Step
Here is the order a lender works through on an asset-based cash-out.
1. Pick the path. The file is built for the qualifier path or the depletion path. The broker decides this first because the leverage, credit and seasoning rules differ.
2. Count the assets. Each account is reduced by its credit percentage or haircut. Only the usable balance counts.
3. Check seasoning. The qualifier path wants 60 days of seasoning and two months of statements per account. The depletion path wants statements at least 120 days old plus one within 45 days. Sale-of-business, inheritance and legal-settlement funds are excused from that seasoning on the depletion path.
4. Order the appraisal. Value sets the leverage cap. A 60% cash-out ceiling is applied to appraised value, so a short appraisal cuts the loan directly. These specifics are subject to lender guidelines and a full review of property, leverage, and credit.
5. Run the credit review. The qualifier path has a 600 minimum score. The depletion path follows the lender’s matrix. Housing history is reviewed at 0x30x12, and one 30-day late in the last twelve months is considered case by case.
6. Subtract what the loan has to do. The new loan pays off the old one first. Closing costs come out next. What is left is your cash.
Appraisal forms are worth a note. Rental files often carry a rent opinion on Fannie Mae’s Form 1007 or Form 1025, forms those agency guides name for single-family and 2–4 unit properties. Asset-based files do not qualify on rent. Rent coverage does not size the loan here, assets do.
Which Assets Count (and at What Percentage)
The two paths treat the same account differently. That is where files go wrong.
| Asset | Qualifier path | Depletion path |
|---|---|---|
| Brokerage / securities | 100% | 80% |
| CDs | 100% | 100% |
| Money market, savings | 100% | 100% (cash accounts) |
| Retirement accounts | 90% under 59½, 100% after | 70% at any age |
| Real-estate equity | Not listed | 60% |
Accounts combine. 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. Cryptocurrency, precious metals, collectibles and pledged or borrowed funds are not published as eligible on either path either. The route for all of these is the same. Convert them to a seasoned cash balance in a regulated account, and the lender reviews the source of the funds.
Where the General Rule Breaks
Five edge cases come up on real files.
The qualifier path has no published cash-out figure. The lender sets it. A broker can ask the network for a quote on your file, but nobody should promise you a qualifier-path cash-out percentage in advance.
Cash-out proceeds do not count as assets. On the depletion path, money you pull from the property cannot be used to qualify the same loan. Borrowers sometimes plan to refinance, then count the cash toward the minimum. It does not work.
The 60% rate-and-term gap. On a principal residence or second home, the depletion path allows 80% on a rate-and-term refinance and 60% on a cash-out. That 20-point gap is the biggest lever on the grid. If your real goal is to hold a larger balance, drop the cash-out.
Minimum assets. The depletion path wants qualified assets of at least the lesser of $1,000,000 or 1.25 times the loan balance. It also wants no less than $250,000 liquid when depletion is your only income source. If asset income only supplements documented income, up to a 45% debt-to-income ratio, the minimum-assets rule is waived.
Investor status. A first-time investor on the depletion path needs a 700 credit score. A housing event needs four years of seasoning on that path, and multiple bankruptcies are not eligible. Terms depend on the lender’s guidelines, the property type, the leverage, and a full review of the credit profile.
A short business-purpose note belongs here. When the collateral is an investment property, the depletion-path loan is business-purpose credit, and Regulation Z’s business-purpose exemption covers credit extended primarily for a business or commercial purpose. That affects how the loan is documented, not how much leverage the lender allows. Leverage limits come from the lender’s own guidelines.
A Practitioner Observation on Where Files Stall
Asset-based files can stall on a statement problem rather than a credit problem. A retiree holds the right balance, but the money moved between accounts inside the seasoning window. Lenders then want the source of every deposit traced. Files that arrive with full statements, a clear paper trail and the right path chosen up front give the lender fewer preventable gaps to review. Clean paper does not guarantee approval, but it removes the avoidable delays.
Worked Example: One Borrower, Two Paths
Qualifier path, as an illustration. A borrower wants an $800,000 loan. Brokerage accounts of $330,000 count at 100%, which is $330,000. A 401(k) of $300,000, held under age 59½, counts at 90%, which is $270,000. Savings of $200,000 count at 100%, which is $200,000. Usable assets total $800,000, which covers the loan on assets alone. This is a purchase or standard refinance shape, not a cash-out, because the qualifier path’s cash-out rules come from the lender.
Depletion path, as an illustration. A borrower holds $1,500,000 in securities and $300,000 in cash. Securities count at 80%, which is $1,200,000. Cash counts at 100%, which is $300,000. Usable assets are $1,500,000. Divided by 60 months, that is $25,000 of monthly qualifying income. That income then carries the housing payment and other debts through the debt-to-income test. The lender’s own calculation governs, and this is not a quote.
The cash-out lesson: on this path, a cash-out refinance is held to 60% of appraised value. The borrower’s securities and cash do the qualifying. The home’s equity does not add to it, and the cash taken out cannot be counted back in.
Key Terms Defined
Cash-out refinance: A new loan that pays off the old one and pays you the difference in cash.
Rate-and-term refinance: A new loan that changes the terms but pays no cash back.
Loan-to-value (LTV): The loan amount divided by the appraised value of the property.
Asset qualifier: A path where eligible assets cover the entire loan and no income is documented.
Asset depletion: A path where eligible assets are divided by 60 months to create qualifying income.
Haircut: The share of an account’s balance that does not count toward qualifying.
Seasoning: How long the money has sat in your account before the lender will count it.
Which Path Fits? A Decision Table
| Your situation | Likely fit |
|---|---|
| Assets cover the whole loan | Asset qualifier |
| Assets fall short of the loan but are large | Asset depletion |
| You want cash back above a 60% cash-out ceiling | Lender-set qualifier cash-out |
| You document income through deposits | A bank statement program instead |
| You want the most leverage, no cash back | Rate-and-term on a primary or second home |
Making the Call
The decision is usually simple once the file is laid out. If your assets cover the loan, the qualifier path is the cleaner fit and the question becomes what the lender allows on cash back. If your assets are large but fall short, depletion gets you to income. If you need leverage more than cash, skip the cash-out and refinance rate-and-term.
Lendmire is a mortgage broker, not a lender. It places files with select lenders in its wholesale network and matches the scenario to the program. The consumer lending behind this product is licensed in 16 states: Alabama, California, Colorado, Florida, Georgia, Indiana, Michigan, Montana, New Mexico, North Carolina, Ohio, Pennsylvania, Tennessee, Texas, Virginia and Washington. The asset-based mortgage program page covers the structure in more detail.
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
Can privately held company stock count toward qualifying?
No. The route for a founder or shareholder is documented liquid assets. That means seasoned proceeds from a sale or buyout converted to cash, public securities and retirement accounts at their haircuts.
Can I use my cash-out proceeds to qualify?
No. On the depletion path, cash-out proceeds never count as qualifying assets. The assets that qualify you must already be in your accounts and seasoned before the loan.
Is an asset-based loan the same as a no-doc loan?
No. Every file is fully underwritten, and the assets are documented with statements. What you skip is tax returns, pay stubs and employment verification. Statements are required on both paths: two months per account on the qualifier path, and statements at least 120 days old plus one within 45 days on the depletion path.
What credit score do I need?
The qualifier path has a 600 minimum. The depletion path follows the lender’s matrix, and a first-time investor there needs 700. Other items, such as housing history, are reviewed too, and approval is never promised.
Does the loan go above $4,000,000?
No. The qualifier path runs up to $4,000,000 and the depletion path runs $125,000 to $3,500,000, subject to underwriting and select programs. Anything larger belongs in a different program and a different conversation.
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
1. Fannie Mae’s Form 1007 or Form 1025
2. CFPB Regulation Z, § 1026.3 — Exemptions
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 for Retirees Living on Fixed Income
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.