Each figure is subject to lender guidelines and a complete review of property type, leverage, and credit.
The Quick Read: The best asset-based program for a cash-out refinance at half your home’s value depends on one choice: whether your assets cover the loan outright (the asset qualifier path) or are converted into monthly income (the asset depletion path), and half-value leverage sits comfortably under the depletion path’s 60% cash-out ceiling. No program is built around 50% as a tier. Half is a sizing choice you make inside a larger ceiling, and it makes the file easier to qualify. Everything below is subject to underwriting, and every file is reviewed individually. Leverage, reserves, and pricing vary by lender and program; the final terms follow the full file review.
- Asset qualifier path: your eligible assets, after the credit percentages, must equal or exceed the entire loan. No employment or income is documented. The published ceiling is 75% on a refinance of a principal residence or second home.
- Asset depletion path: usable assets divided by 60 months become qualifying income, which then runs through the debt-to-income test. The ceiling is 60% on a cash-out refinance of a principal residence, second home or investment property.
- At 50% leverage: you sit below both ceilings. A smaller loan means a smaller asset balance to prove and a lighter payment to carry.
- Two firm rules: cash-out proceeds never count as qualifying assets, and privately held company stock is not eligible on either path.
- Documentation: you provide no traditional personal-income documentation, pay stubs or employment verification, but your assets are documented with statements. Terms vary by lender guidelines, property type, leverage, credit profile, and full file review.
What Is an Asset-Based Cash-Out Refinance?
An asset-based cash-out refinance replaces your current mortgage with a larger one and returns the difference as cash. The borrower is reviewed on what they own rather than on paycheck income. It suits people with large balances and little documented income.
That describes retirees, people who sold a business, heirs, recipients of a settlement, early-retired professionals and households living off a portfolio. A lender looking only at last year’s tax return sees little income for these borrowers. A lender looking at the brokerage statement sees something very different.
Lendmire is a mortgage broker, not a lender. It places these files through select lenders in its wholesale network, and the asset-based mortgage programs it arranges are consumer mortgages on a principal residence or second home. An investment property is eligible only on the depletion path. Consumer mortgage lending runs in 16 states: Alabama, California, Colorado, Florida, Georgia, Indiana, Michigan, Montana, New Mexico, North Carolina, Ohio, Pennsylvania, Tennessee, Texas, Virginia and Washington.
Why 50% Leverage Is a Choice, Not a Program
Exact terms depend on the lender’s guidelines, property type, leverage, and a full review of the borrower’s file.
Leverage limits are ceilings that lenders set by transaction type. Asking for half the home’s value is simply a conservative way to use the ceiling.
Many borrowers go looking for a “50% program” and find nothing. The reason is simple. A lender that allows 60% will happily write a loan at 50%. You do not need a special product to borrow less.
Borrowing less changes the file in three practical ways:
- A smaller loan. On the qualifier path, your assets must cover the whole loan, so a lower loan amount lowers the balance you have to show.
- A smaller payment. On the depletion path, the housing payment must fit inside the income your assets produce, so a lighter payment leaves more room.
- A bigger cushion. If an appraisal comes in soft, a 50% request leaves more room before the loan-to-value ratio becomes the problem.
One floor to remember: on the depletion path, loans start at $125,000. A very small cash-out request can fall below that.
Which Path Fits You: Assets Cover the Loan, or Assets Become Income
The paths work differently, and a borrower is qualified on one path at a time. Never mix their numbers.
| Factor | Asset Qualifier | Asset Depletion |
|---|---|---|
| How assets are used | Must cover the whole loan | Divided by 60 into income |
| Income documented | None | Derived income, DTI tested |
| Refinance leverage | Up to 75% on a refinance | 60% on cash-out |
| Loan amounts | Up to $4,000,000 | $125,000 to $3,500,000 |
| Credit | 600 minimum score | The lender’s matrix |
The qualifier path suits a borrower whose liquid assets are large compared with the loan. At a 50% request, that often describes the retiree or business seller with a paid-down home. The depletion path suits a borrower whose assets are large but whose loan is also large, because the loan is carried by monthly income rather than covered by a balance.
One caution on the qualifier path: the lender sets whether cash-out proceeds are allowed and at what leverage. That setting is not published. A cash-out request on this path is therefore a conversation with the lender, not a figure to count on.
How Underwriting Treats the File, Step by Step
Every file is fully underwritten. “Asset-based” means the assets are the income documentation, not that documentation disappears.
1. Classify the transaction. If you receive cash beyond the payoff and closing costs, it is a cash-out refinance. The classification sets the leverage ceiling.
2. Pick the path. The broker compares your balances to the loan. If usable assets cover the loan, the qualifier path is available. If not, the depletion path may fit.
3. Apply the credit percentages. Each account counts for a share of its balance, as the tables below show.
4. Check seasoning. The lender confirms the funds have sat in your accounts long enough (details below).
5. Run the credit review. The lender reviews your score against the path’s requirements and your housing payment history.
6. Order the appraisal. Value sets the loan-to-value ratio. A 50% request has the most room if value comes in lower than expected.
7. Net out the cash. The new loan, less your payoff and closing costs, is the cash you receive. That cash does not count toward qualifying.
Which Assets Count on the Asset Qualifier Path
| Asset | Share counted |
|---|---|
| Brokerage accounts | 100% |
| Certificates of deposit | 100% |
| Money market | 100% |
| Savings | 100% |
| 401(k) and IRA, under 59½ | 90% |
| 401(k) and IRA, 59½ or older | 100% |
Accounts combine. Say you are modeling an $800,000 loan on this path, and you hold $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). Together that is $800,000 of usable assets, and the file is reviewed on assets alone. The lender’s own calculation governs.
Which Assets Count on the Asset Depletion Path
| Asset | Share counted |
|---|---|
| Cash accounts | 100% |
| Certificates of deposit | 100% |
| Securities | 80% |
| Retirement accounts, any age | 70% |
| Real-estate equity | 60% |
Here the usable total is divided by 60 months to create monthly qualifying income. Take $1,500,000 in securities (80% counts, so $1,200,000) plus $300,000 in cash (100% counts, so $300,000). That is $1,500,000 usable. Divided by 60 months, it produces $25,000 of monthly qualifying income. That income must then carry the housing payment and other debts through the debt-to-income test.
The depletion path also carries a minimum. Qualified assets must be at least the lesser of $1,000,000 or 1.25 times the loan balance. They can never fall below $250,000 liquid when depletion is the only income source. If asset income only supplements documented income, it may count up to a 45% debt-to-income ratio, and the minimum-assets rule is waived.
Seasoning, Statements and Credit
Seasoning is the waiting period that shows your money is really yours. Lenders do not want deposits that appeared last week.
- Qualifier path: 60 days of seasoning and two months of statements for each qualifying account.
- Depletion path: statements 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.
On credit, the qualifier path publishes a 600 minimum score. The depletion path follows the lender’s score and loan-amount matrix. A first-time investor on the depletion path needs a 700. Housing history is 0x30x12, though one 30-day late in the last twelve months is considered case by case. Multiple bankruptcies are not eligible. After a housing event, the depletion path wants 4 years of seasoning. None of this promises approval.
Reserves help a 50% request. On the qualifier path, none are required at or below 75% loan-to-value, so a refinance at 50% leverage clears that line, subject to underwriting. The depletion path publishes no reserve months. Every figure here varies by lender and program — guidelines, property type, leverage, and credit profile all apply.
Where the General Rule Breaks
Privately held company stock. Privately held company stock is not an eligible asset on either path. It does not count at a discount, and it does not count as a bonus. A founder or shareholder’s documented route is liquid assets: seasoned proceeds from a sale or buyout converted to cash, public securities and retirement accounts at their credit percentages.
Other asset classes. Cryptocurrency, precious metals, collectibles, business accounts beyond your ownership share, and pledged or borrowed funds 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.
Ineligible 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 do not count.
The cash you take out. The cash from this refinance never counts as a qualifying asset on the depletion path, and it cannot be used to qualify itself. The assets that qualify you must exist before the loan.
Investment property. Only the depletion path covers an investment property. The ceilings are 65% on a purchase or rate-and-term refinance and 60% on a cash-out refinance. Because it is a business-purpose investor loan, it is reviewed differently from a standard owner-occupied mortgage. The CFPB’s examination procedures treat credit to acquire or improve non-owner-occupied rental property as business purpose. The OCC’s Truth in Lending handbook adds that a checked business-purpose box alone may not be enough without documentation of the intended use of funds. Keep your records clear.
Low appraisals. A value shortfall can shrink proceeds. Half-value leverage gives the most room before this matters.
Best Asset-Based Cash-Out Refinance Program at 50% LTV: What It Depends On
Final terms depend on lender guidelines, property type, leverage, and the borrower’s complete credit picture.
The best program for your situation depends on five things: which path your balances support, the property type and use, your credit profile, how much cash you actually need and what your statements show. Lendmire shops multiple wholesale lenders and matches your scenario to the program, because lenders differ in how they apply these parameters. The strictest overlays are tighter on seasoning and credit. Others are more flexible on documentation, but all of it remains subject to underwriting.
A practical way to decide:
- Assets exceed the loan by a comfortable margin: the qualifier path is the first conversation, especially at 50% leverage.
- Assets are large but the loan is larger: the depletion path is usually the fit.
- You have documented income that is not enough alone: asset income may supplement it, up to a 45% debt-to-income ratio.
- Your wealth sits in a private company: convert it to liquid, seasoned funds first.
Who This Does Not Fit
This route is not for borrowers whose wealth is mostly illiquid. It is not for someone whose statements show fresh, unexplained deposits. It is also not for borrowers who want to qualify using the very cash they plan to take out. If you document income through business deposits, a bank statement program may fit better, and if the property is a rental that covers its payment, DSCR financing is the usual answer.
Key Terms Defined
Loan-to-value (LTV): the new loan divided by the property’s appraised value. Half the value is 50% LTV. These specifics are subject to lender guidelines and a full review of property, leverage, and credit.
Cash-out refinance: a new, larger mortgage that pays off the old one and returns the difference to you.
Asset qualifier path: a way of qualifying where eligible assets equal or exceed the whole loan and no income is documented.
Asset depletion path: a way of qualifying where usable assets divided by 60 months become monthly income.
Credit percentage (haircut): the share of an account’s balance that counts toward qualifying.
Seasoning: the time funds must sit in your accounts, shown by statements, before they count.
Common Mistakes
- Counting the cash-out proceeds as an asset. They never count on the depletion path.
- Treating private stock as a balance. It is not an eligible asset on either path.
- Moving money right before applying. Fresh deposits break seasoning.
- Blending the paths. Use one path’s percentages with that path’s rules.
- Ignoring the loan-size floor. Small requests can fall below $125,000 on the depletion path.
Frequently Asked Questions
Is there a program built specifically for 50% LTV?
Terms depend on the lender’s guidelines, the property type, the leverage, and a full review of the credit profile.
No. LTV is a ceiling set by transaction type, and 50% is your choice inside it. On a cash-out refinance on the depletion path, the ceiling is 60%. Borrowing less means a smaller loan to cover with assets or carry with income. Whether a lender allows cash-out proceeds on the qualifier path is set by the lender and is not published.
Can I count privately held company stock?
The documented route is liquid assets: seasoned proceeds from a sale or buyout converted to cash, cash balances, public securities and retirement accounts at their credit percentages.
Does the cash I take out help me qualify?
No. Cash-out proceeds never count as qualifying assets. Your qualifying assets must already be in your accounts and seasoned before the new loan funds.
Which path suits a retiree with a large 401(k)?
It depends on the loan size. On the qualifier path, a 401(k) counts at 90% under age 59½ and 100% at 59½ or older, but the total must cover the entire loan. On the depletion path, retirement accounts count at 70% at any age and become income over 60 months. A 50% request improves the odds on either path, subject to underwriting.
Can I use this for a rental I own?
Yes, but only on the depletion path, where an investment property carries a 60% ceiling on a cash-out refinance. A first-time investor needs a 700 score. It is a business-purpose investor loan, so keep records of how the proceeds are used.
Next Step
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. Program figures are ceilings and floors, not offers, and none of this is a commitment to lend.
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 broker licensed for consumer lending in 16 states. Bank statement, P&L-only, 1099-only and asset-based mortgages for self-employed and high-net-worth borrowers are arranged through wholesale lenders on primary residences, second homes and investment properties; every file is underwritten by the lender under its program 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. CFPB Truth in Lending Act examination procedures
2. OCC Comptroller’s Handbook: Truth in Lending Act
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
- Mortgage Loan Originator · NMLS# 1129696 · Verify on NMLS Consumer Access
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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.