The Quick Read: The best program depends on the borrower, the property and the asset mix, because no single program wins for every file. Six months of ownership is a lender policy clock, not a law, and passing it only makes a file eligible to apply. On the asset depletion path, cash-out is capped at 60% loan-to-value on a principal residence, a second home or an investment property, subject to underwriting.
- Two paths exist. The asset qualifier path uses assets to cover the whole loan. The asset depletion path turns assets into monthly income.
- The qualifier path’s published refinance ceiling is 75%. Its cash-out terms are set by the lender and are not published.
- Cash-out proceeds never count as qualifying assets on the depletion path.
- The property clock and the statement clock are separate tests. A file has to pass both.
- Lendmire is a broker. It matches the file to a program in its wholesale network. It does not lend.
The borrowers who ask this question often hold large balances, document little income, and own a property bought about six months earlier. Retirees, business sellers, inheritance recipients and portfolio households can all fit that description.
What Does “After Six Months of Ownership” Actually Mean?
Six months is a seasoning rule, and seasoning is set by each lender or program. No regulator sets it for non-agency loans. The clock usually runs from the recorded deed, not from contract signing, rehab completion or a tenant moving in.
Across the wholesale network, the programs that place these files do not all draw the line in the same spot. Some want a few months on title. Some want six. Some tie the answer to the value basis rather than to a hard cutoff.
For contrast, the agency world is stricter. Fannie Mae’s SEL-2023-01 announcement added a rule that an existing first mortgage being paid off must be at least 12 months old, on top of a six-month title requirement. That is agency policy. It does not govern asset-based files, though the longer agency waits are one reason some borrowers look at non-agency paper.
Asset-based files carry three separate clocks:
1. Property clock. Time on title since the deed recorded. This is the six months.
2. Statement clock. Age of the asset statements. This is separate from the property clock.
3. Existing-loan clock. If you are paying off a loan on the property, some programs look at that loan’s age too.
Passing one does not pass the others. A borrower can clear six months on title and still be short on statements.
Which Asset-Based Path Fits You?
The asset qualifier path fits borrowers whose eligible assets can cover the entire loan. The asset depletion path fits borrowers whose assets are large but who still want income-style underwriting. A borrower is qualified on one path at a time, never a blend.
On the qualifier path, no employment or income is documented. The lender’s ability-to-repay review rests on the assets. On the depletion path, usable assets divided by 60 months become a monthly qualifying income. That income then carries the housing payment and other debts through the debt-to-income test.
| Factor | Asset Qualifier | Asset Depletion |
|---|---|---|
| Core test | Assets cover the whole loan | Assets ÷ 60 months = income |
| Occupancy | Principal residence, second home | Plus investment property |
| Refinance leverage | Up to 75% | Cash-out 60% |
| Loan amounts | Up to $4,000,000 | $125,000 to $3,500,000 |
| Credit | 600 minimum score | The lender’s matrix |
All figures are subject to underwriting and apply through select programs in the network. Treat them as ceilings and floors, not offers.
Here is the leverage detail by path. On the qualifier path, leverage reaches 80% on a purchase and 75% on a refinance. Whether cash-out proceeds are allowed there, and at what leverage, is set by the lender and is not published. So a borrower who wants cash back after six months usually needs to look hard at the depletion path, where cash-out is defined.
On the depletion path, a principal residence or second home reaches 80% on a purchase or rate-and-term refinance and 60% on a cash-out refinance. An investment property reaches 65% on a purchase or rate-and-term and 60% on a cash-out. The investment property version is business-purpose lending. Principal residence and second-home loans are consumer mortgages.
What Counts as an Asset, and at What Percentage?
Each path credits assets differently, so it helps to keep the two tables separate when sizing a loan.
On the qualifier path, brokerage accounts, CDs, money market and savings count at 100%. Retirement accounts count at 90% under age 59½ and 100% at 59½ or older. Accounts combine.
On the depletion path, cash accounts and CDs count at 100%. Securities count at 80%. Retirement accounts count at 70% at any age. Real-estate equity counts at 60%.
Some assets do not count on the depletion path at all. That list includes 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. The route for a founder or shareholder is documented liquid assets: seasoned proceeds from a sale or buyout, cash, public securities and retirement accounts at their credit percentages.
Cryptocurrency, precious metals, collectibles, pledged or borrowed funds and business accounts beyond the borrower’s ownership share are not published as eligible on either path. Converting them to a seasoned cash balance in a regulated account, with the source reviewed by the lender, is the documented route.
Two illustrations, using the program’s own shapes. They are illustrative only, and the lender’s own calculation governs.
- Qualifier example. An $800,000 loan with $330,000 in brokerage accounts (100% counts, so $330,000), $300,000 in a 401(k) held under age 59½ (90% counts, so $270,000) and $200,000 in savings (100% counts, so $200,000) shows $800,000 of usable assets. That equals the loan, so the file is reviewed on assets alone, subject to underwriting.
- Depletion example. $1,500,000 in securities at 80% is $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, which then carries the housing payment and other debts through the debt-to-income test.
How Underwriting Treats the File, Step by Step
Underwriting reads the file in a fixed order. Knowing it tells you what to gather first.
1. Confirm the property clock. The reviewer checks the recorded deed date against the program’s ownership requirement.
2. Pick the path. Assets cover the loan outright, or assets become income. This choice sets everything after it.
3. Set the value basis. Inside a program’s seasoning window, many lenders size on the lower of appraised value or cost, meaning purchase price plus documented improvements. Past the window, they size on appraised value. Each program sets its own tiering.
4. Review the assets. The qualifier path wants 60 days of seasoning and two months of statements for each qualifying account. The depletion path wants statements at least 120 days old at application, plus the most recent statement within 45 days. Sale-of-business, inheritance and legal-settlement funds are excused from that seasoning on the depletion path.
5. Check credit. The qualifier path publishes a 600 minimum score. The depletion path follows the lender’s matrix. 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.
6. Order the appraisal. The appraisal sets value. On rental collateral, the appraiser’s market-rent opinion is often supported by Fannie Mae’s Form 1007 and Form 1025, which are common vehicles for those opinions. They are forms, not the program’s rules.
7. Test the minimums. On the depletion path, qualified assets must be at least the lesser of $1,000,000 or 1.25 times the loan balance, and never below $250,000 liquid when asset depletion is the only income source. 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.
Reserves are simple on the qualifier path: none required at or below 75% loan-to-value, and above that the lender sets them. The depletion path has no published reserve months.
Note what is and is not documented. These files are fully underwritten. The assets are documented with statements. What the borrower skips is tax returns, pay stubs and employment verification.
How the Six-Month Timeline Plays Out
A worked timeline helps, because the statement clock catches more borrowers than the property clock does.
Picture a borrower who closed a purchase in month zero. They paid cash from a brokerage account. They want cash-out once the property is seasoned, and they plan to use the asset depletion path.
- Month zero to two. Keep the asset statements clean and intact. Avoid moving large balances between accounts without a paper trail, because transfers invite sourcing questions.
- Month three. Pull the settlement statement from the purchase. Log any documented improvements, because cost-based sizing uses them.
- Month four. Check statement age. Depletion-path statements must be at least 120 days old at application, plus a recent one within 45 days. This is the step borrowers miss.
- Month five. Talk to a broker about which programs in the network match the scenario, so the file is ready when the six-month minimum is met.
- Month six and later. Submit the application. The lender orders the appraisal and sizes the loan.
If a borrower is a month short, waiting is usually the cleanest answer. The alternative is a program with a shorter window, which usually trades away proceeds because the lender sizes on cost rather than appraised value.
Where the General Rule Breaks
Six months is a benchmark, and several situations bend it.
All-cash buyer under six months. Agency policy treats delayed financing as a cash-out with cash-out pricing that waives only the waiting period, under Fannie Mae’s rules for cash-out refinance transactions. In non-agency practice, proceeds are generally tied to documented cost rather than the new appraised value. Whether a given program offers it depends on the lender.
Bridge or hard-money exit. If the new loan only pays off the bridge loan and returns no cash, many programs treat it as a rate-and-term refinance, which has no seasoning requirement. If cash comes back beyond a small tolerance, it becomes cash-out and seasoning applies. The tolerance varies by lender.
Renovation plans. The classic mistake is sizing the cash-out on after-repair value too early. Inside the window, the lender looks at cost. Wait for the appraisal to carry the value.
Inheritance and divorce transfers. Treatment is lender-specific. Get the program’s position in writing before building a plan around an exception.
Rate-and-term as a way around the wait. A refinance that returns no cash avoids the cash-out clock. It also gives no cash. It only helps a borrower who wants a restructure.
More cash out can break the test. On the depletion path, a larger loan raises the housing payment and lowers the derived income’s cushion. A property can have equity room and still fail the debt-to-income test at the bigger balance. Run both before choosing the amount.
Which Program Fits Which Situation?
No ranking of companies is possible here, and none would be honest. The right program depends on the file. This table matches situations to routes.
| Situation | Likely route | Trade-off |
|---|---|---|
| Owned 6+ months, large securities base | Asset depletion, cash-out | 60% cap on cash-out |
| Assets cover the full loan, no cash needed | Asset qualifier | Cash-out terms not published |
| Owned 3-5 months | Wait, or shorter-window program | Cost-based sizing |
| Founder holding private company stock | Sale proceeds seasoned as cash | Documentation takes effort |
| Thin income, mostly retirement funds | Depletion, at 70% credit | Smaller usable base |
Compare programs on what lands in your account, not on the seasoning line alone. Value basis, leverage ceiling, coverage on the larger payment and any prepayment structure together decide the net. Business-purpose loans on investment property often carry prepayment terms. Those terms lock in for a period, so model any later refinance against them.
Investors who qualify on rental income instead of assets can read Lendmire’s piece on the best DSCR cash-out refinance program after six months of ownership.
Common Mistakes That Stall These Files
- Assuming seasoning is law. It is program policy and it varies.
- Counting the wrong percentage. Applying 100% to retirement funds on the depletion path, when the credit is 70%.
- Blending the two paths. Using qualifier-path haircuts on a depletion-path file.
- Counting cash-out as an asset. Cash-out proceeds never count as qualifying assets on the depletion path.
- Counting private company stock. Privately held stock is not an eligible asset on either path.
- Moving money right before applying. Fresh transfers trigger sourcing letters and add review work.
- Ignoring statement age. The 120-day and 45-day tests on the depletion path are separate from the deed clock.
What to Gather Before You Apply
Preparing these in advance leaves fewer preventable gaps for the reviewer.
- Settlement statement from the purchase and the recorded deed
- Two months of statements for each qualifying account on the qualifier path
- Statements 120 days old plus one within 45 days on the depletion path
- Payoff statements for any existing liens
- Documentation of any improvements, if cost-based sizing applies
- Insurance and title information for the property
- Source documents for any sale, inheritance or settlement funds
Principal residence and second-home loans are consumer mortgages, so consumer disclosure rules apply. Investment property on the depletion path is business-purpose. Program details change, and every file is underwritten individually.
Frequently Asked Questions
Can I get an asset-based cash-out refinance before six months of ownership?
Sometimes, but usually with less cash. Programs with a shorter window often size the loan on cost, meaning purchase price plus documented improvements, instead of appraised value. All-cash buyers may qualify for delayed financing, which lenders treat as cash-out and size on documented cost. Availability depends on the program in the network.
Does the six-month clock start at contract or at closing?
It runs from the recorded deed. Contract signing, rehab completion and tenant move-in do not start it. Ask for the program’s exact language before planning around a date.
Can I pull cash out on the asset qualifier path?
Whether cash-out is allowed on the qualifier path, and at what leverage, is set by the lender and is not published. The qualifier path’s published figures are up to 80% on a purchase and 75% on a refinance. The depletion path defines cash-out at 60%. Exact terms depend on the lender’s guidelines, property type, leverage, and a full review of the borrower’s file.
Does my private 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 credit percentages.
Does cash-out count as taxable income?
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.
If you are qualifying on assets rather than income and want to see how the numbers work, Lendmire can help you compare options under asset-based mortgage programs based on your statements, the property, credit profile, leverage and your goals. Lendmire arranges these loans as a broker through select lenders in its wholesale network, and qualification stays subject to lender guidelines and underwriting.
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.
For the mechanics of pulling equity out of a rental property, see Lendmire’s guide to cash-out refinance on an investment property.
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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
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 When Title Seasoning Is Only Six Months · Best Asset-Based Cash-Out Refinance Program Without Restarting 30 Years
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
- Mortgage Loan Originator · NMLS# 1129696 · Verify on NMLS Consumer Access
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- North Carolina Insurance Producer · License# 19053198 · Property, Casualty, Life, Health · Verify on NAIC SBS
- Lendmire LLC · Firm NMLS# 2371349 · Verify firm licensure
Disclosures. The information presented in this article is general market commentary, not financial, legal, or tax advice. Lendmire is a mortgage brokerage (NMLS# 2371349) — not a direct lender or depository institution — and loan placement is subject to lender underwriting. Nothing in this content represents a commitment to lend. Loan terms, pricing, and program availability vary based on borrower qualifications, property characteristics, and state of subject property, and are subject to change at any time. Lendmire complies with Equal Housing Opportunity requirements. Consumer access: nmlsconsumeraccess.org.