At a Glance: The best asset-based cash-out program for a retiree depends on whether savings and investments cover the whole loan or must be converted into monthly income, and select lenders in Lendmire’s wholesale network offer both routes, subject to underwriting and lender guidelines.
- The asset qualifier path requires eligible assets to equal or exceed the entire loan, with no employment or income documented.
- The asset depletion path divides usable assets by 60 months into qualifying income, which then runs through the debt-to-income test.
- Depletion-path cash-out leverage is published at 60%, while the qualifier path’s cash-out terms are set by the lender and not published.
- Retirement accounts count at 90% under age 59½ and 100% at 59½ or older on the qualifier path, and at 70% at any age on the depletion path.
- Cash-out proceeds never count as qualifying assets on the depletion path, and a new payment should be weighed against your withdrawal plan.
The Quick Read: The best program for a retiree living on savings and investments depends on one question: do your assets cover the whole loan, or do they have to be turned into monthly income? Both routes exist through select lenders in Lendmire’s wholesale network, and a borrower is qualified on one route at a time. Neither route asks for tax returns, pay stubs or employment verification, but both are fully underwritten and the assets are documented with statements.
- Asset qualifier path: eligible assets must equal or exceed the entire loan. No employment or income is documented.
- Asset depletion path: usable assets are divided by 60 months into qualifying income that runs through the debt-to-income test.
- Cash-out is where the paths split. Depletion-path cash-out leverage is published at 60%. The qualifier path’s cash-out terms are set by the lender and are not published.
- Cash-out proceeds never count as qualifying assets on the depletion path.
- Everything is subject to underwriting. Figures here are ceilings and floors, not offers.
Retirees often look wealthy on a balance sheet and poor on a tax return. Distributions are lumpy, pensions are modest, and conventional debt-to-income math sees little earned income. Asset-based programs read the balance sheet instead. This article walks through how that works on a cash-out, where it breaks, and how to pick a route. Lendmire is a mortgage broker, not a lender. It shops this scenario across wholesale lenders and matches the file to a program. 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.
What Does “Asset-Based” Mean on a Cash-Out Refinance?
Asset-based means the lender counts your assets, either as the repayment source or as the basis for a monthly income figure. It does not mean your portfolio is pledged. The house is still the collateral. Your brokerage account stays where it is, invested, in your name.
Three terms carry the whole topic:
- Cash-out refinance: a new loan larger than the payoff of the old one, with the difference paid to you.
- Asset qualifier path: the assets alone cover the loan.
- Asset depletion path: the assets are converted into a notional monthly income.
Many borrowers confuse this with other products. A bank statement program is for people who document income through deposits, such as self-employed borrowers. A DSCR loan is business-purpose rental financing that qualifies primarily on property-level rental income covering the payment, subject to lender guidelines. A retiree with no deposits to speak of and a large portfolio belongs in the asset-based lane. Lendmire’s asset-based mortgage programs are built for exactly that profile: large balances, light documented income.
Can Retirees Really Get a Cash-Out on Assets?
Yes, through select non-agency programs, and the confusion online comes from mixing agency rules with non-agency rules. Agency programs, meaning Fannie Mae and Freddie Mac, are stricter and narrower on asset-based income, and some explainers correctly report that agency rules do not let assets support a cash-out. Non-agency programs are written differently.
In Lendmire’s network, the depletion path allows cash-out at 60% loan-to-value on a principal residence, a second home, or an investment property, subject to underwriting. The qualifier path allows up to 75% on a refinance of a principal residence or second home. Whether cash-out proceeds are allowed on the qualifier path, and at what leverage, is set by the individual lender, so a broker has to ask before quoting it. Terms depend on the lender’s guidelines, the property type, the leverage, and a full review of the credit profile.
So both statements are true. The agency answer is usually no. The non-agency answer is yes, at lower leverage than a purchase, and with conditions.
The Two Paths Side by Side
| Factor | Asset qualifier | Asset depletion |
|---|---|---|
| How assets are used | Cover the entire loan | Converted to monthly income |
| Income documented | None | Derived from assets |
| Debt-to-income test | Not applied | Applied |
| Refinance leverage | Up to 75% | Up to 80% rate-and-term |
| Cash-out leverage | Set by lender | 60% |
| Loan amounts | Up to $4,000,000 | $125,000 to $3,500,000 |
| Minimum assets | Assets at least equal the loan | Lesser of $1,000,000 or 1.25x the loan |
The depletion path also has a floor of $250,000 liquid when asset depletion is your only income source. Asset-derived income can supplement documented income, such as a pension, up to a 45% debt-to-income ratio. When it supplements, the minimum-assets rule is waived. All of it is subject to lender guidelines.
On an investment property, the depletion path caps a rate-and-term refinance at 65% and a cash-out at 60%. That loan is business-purpose. It is not a consumer mortgage, which is why Regulation Z’s business-purpose exemption applies to it. A cash-out on your own home is a consumer loan, and the lender has to make a reasonable, documented determination that you can repay. On the asset paths, that determination rests on your statements. The exact numbers vary by lender and program and follow a full review of property, leverage, and credit.
Which of Your Assets Count?
The two paths use different credit percentages. Do not blend them.
| Asset | Qualifier path | Depletion path |
|---|---|---|
| Brokerage and securities | 100% | 80% |
| Cash, savings, money market | 100% | 100% |
| Certificates of deposit | 100% | 100% |
| 401(k) and IRA | 90% under 59½, 100% at 59½+ | 70% at any age |
| Real-estate equity | Not listed | 60% |
Age matters on the qualifier path. A 58-year-old with a large IRA gets 90% credit. At 59½ it moves to 100%. On the depletion path, retirement accounts count at 70% no matter your age.
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.
Cryptocurrency, precious metals and collectibles are not published as eligible on either path. Neither are pledged or borrowed funds. The route for those holdings is converting them to a seasoned cash balance in a regulated account, with the source reviewed by the lender.
For privately held company stock, a founder’s route is documented liquid assets: seasoned proceeds from a sale or conversion, plus cash, public securities and retirement accounts at their credit percentages.
How Underwriting Treats a Cash-Out, Step by Step
1. Pick the path. If liquid assets at least equal the full loan amount, the qualifier path is the cleaner file. If assets are large but the loan is larger, depletion is the route.
2. Apply the credit percentages. The broker totals the usable value of each account using the table above. Accounts combine.
3. Check the leverage. The cash-out cap applies to the appraised value of the home. On the depletion path, that is 60%. A retiree with a paid-down house and heavy equity usually has room. A retiree with a thin equity position does not.
4. Season the assets. 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 most recent statement within 45 days. Sale-of-business, inheritance and legal-settlement funds are excused from that seasoning on the depletion path.
5. Run the credit review. The qualifier path has a 600 minimum score. The depletion path follows the lender’s matrix, and a first-time investor 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.
6. Appraise and clear title. Appraisal sets the value the cash-out percentage applies to. Title and insurance follow.
7. Keep proceeds separate. On the depletion path, cash-out proceeds never count as qualifying assets. You cannot borrow against the house and then count the cash to qualify for that same loan.
Two Worked Examples
These use the program’s own illustrative arithmetic. The lender’s calculation governs.
Qualifier path. Picture a retiree seeking an $800,000 loan. She holds $330,000 in brokerage accounts, which counts at 100%. She holds $300,000 in a 401(k) and is under 59½, so it counts at 90%, or $270,000. She holds $200,000 in savings at 100%. Usable assets total $800,000, which equals the loan. She is reviewed on assets alone, subject to underwriting. On her 59½ birthday the 401(k) counts in full.
Depletion path. Say a household holds $1,500,000 in securities and $300,000 in cash. Securities count at 80%, or $1,200,000. Cash counts at 100%, or $300,000. Usable assets are $1,500,000. Divided by 60 months, that is $25,000 of monthly qualifying income. That figure then carries the housing payment and other debts through the debt-to-income test. The assets also clear the minimum: the lesser of $1,000,000 or 1.25 times the loan.
Which Path Fits Which Retiree?
| Profile | Likely fit |
|---|---|
| Assets exceed the loan amount | Qualifier |
| Large portfolio, loan larger than liquid assets | Depletion |
| Pension plus portfolio | Depletion as a supplement |
| Recent business sale or inheritance | Either; seasoning excused on depletion |
| Early retiree under 59½ | Qualifier at 90% on retirement accounts, or depletion at 70% |
| Mostly home equity, little liquid | Neither is a strong fit |
Here’s the catch for the last row. Real-estate equity counts at only 60% on the depletion path, and the $250,000 liquid floor still applies. If your wealth sits in a house and a private company, this is not the product.
Honestly, the pension-plus-portfolio case is a toss-up. Documented pension income might qualify the file conventionally. Depletion adds assets on top and can lift the debt-to-income picture. Run both before choosing.
Should You Do This at All?
A cash-out is a debt. A retiree on a portfolio is already drawing from assets, and a new payment competes with that draw. The decision is not only “can I qualify” but “does the payment fit my withdrawal plan if markets fall.” Sequence-of-returns risk is real: a down year early in retirement hurts more when a fixed payment is also coming out.
Compare the alternatives plainly:
| Option | Qualified on | Retiree watch-out |
|---|---|---|
| Asset-based cash-out | Assets | New lien, fixed payment |
| HELOC | Lender’s own rules | Variable structure, can be frozen |
| Reverse mortgage | Age and equity | Reduces estate equity |
| Portfolio withdrawal | None | May sell at a bad time |
| Full-doc cash-out | Documented income | Retirees often show too little |
Portfolio withdrawals may carry tax consequences. Tax treatment varies; consult a qualified professional.
Documentation That Stalls Retiree Files
The assets are documented. That is the whole point. These are the gaps that cause delays:
- Large deposits. A recent transfer between accounts needs a paper trail. Unexplained deposits get questioned.
- Name mismatches. Statements must match the borrower’s name and the vesting on the loan. Trust-held accounts need the trust documents.
- Stale statements. The depletion path needs one statement within 45 days of application and statements at least 120 days old. A file that misses either gets sent back.
- Counted twice. An account used for qualifying cannot also be the source of the down payment or closing funds. If you draw it down, it no longer counts.
- Ineligible holdings listed as assets. Crypto, metals and private stock do not count. Convert to cash first and let it season.
- Spouse and title. Co-borrowers, trust vesting and survivorship questions should be settled before the appraisal, not after.
Key Terms Defined
- Asset depletion: converting usable assets into monthly qualifying income by dividing by 60 months.
- Asset qualifier: qualifying when eligible assets equal or exceed the whole loan.
- Seasoning: the length of time funds have sat in an account, shown by statements.
- Haircut: the share of an asset’s balance that the program does not count.
- Rate-and-term refinance: a refinance that changes the loan terms without paying you cash.
- Debt-to-income ratio: monthly debts divided by monthly qualifying income.
Frequently Asked Questions
Can I get a cash-out refinance with no job?
Yes, through select asset-based programs, subject to underwriting. The depletion path allows cash-out at 60%. The qualifier path’s cash-out terms are set by the lender. Neither asks for tax returns, pay stubs or employment verification, but both fully underwrite your assets and credit. Final terms depend on the lender’s guidelines, the property type, and the borrower’s complete credit picture.
Can the cash I pull out count as an asset?
No. You have to qualify on what you already hold before the loan funds.
Do retirement accounts count?
Yes, at a discount. On the qualifier path they count at 90% under age 59½ and 100% at 59½ or older. On the depletion path they count at 70% at any age.
Does this work on an investment property?
Yes, on the depletion path, at up to 65% on a rate-and-term refinance and 60% on a cash-out. It is a business-purpose loan, and the lender underwrites your assets the same way. If the property’s rent is strong, a DSCR loan, which qualifies primarily on rental income covering the payment, may be worth comparing.
What if most of my wealth is in a private company?
Privately held company stock is not an eligible asset on either path. The route is a sale or buyout converted into a seasoned cash balance, plus any cash, public securities and retirement accounts you hold.
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. Reach the team at 828-256-2183 or request a quote through Lendmire’s quote page. Programs change and every file is underwritten individually. This is not a commitment to lend.
For how equity extraction works on an investment 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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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. eCFR: Regulation Z, Section 1026.3 (exempt transactions)
2. CFPB: Ability-to-Repay/QM Small Entity Compliance Guide
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 · Best Asset-Based Cash-Out Refinance Program Using a Brokerage Account to Qualify · Best Asset-Based Cash-Out Refinance Program in Retirement Without a Regular Paycheck
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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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.