The Quick Read: For a retiree on Social Security, a pension and a portfolio, the best program is the one that matches how your assets are held. The asset qualifier path covers the whole loan with eligible balances, and the asset depletion path turns those balances into qualifying income, with a published cash-out ceiling of 60% loan-to-value on the depletion path. The right fit depends on your balances, credit, property and how much cash you need, and every file is fully underwritten, subject to lender guidelines.
- Asset qualifier path: eligible assets must equal or exceed the entire loan, and no employment or income is documented. Leverage is up to 80% on a purchase and 75% on a refinance of a principal residence or second home.
- Asset depletion path: usable assets divided by 60 months become monthly income that runs through the debt-to-income test. Cash-out is 60% loan-to-value on a principal residence, second home or investment property.
- Cash-out proceeds never count as assets on the depletion path, so the cash you take cannot be used to qualify.
- Documentation is lighter on income, not on assets. The file needs no traditional personal-income documentation, pay stubs or employment verification, but it does need account statements.
- Pension and Social Security do not hurt. On the qualifier path they are not documented at all. On the depletion path they can supplement the asset income.
Which Path Fits a Retiree Who Wants Cash Out?
Most retirees ask for cash out, so start with the path rules. Across the wholesale network, the answer splits by leverage and by what the lender publishes.
On the asset qualifier path, the loan must be covered by eligible assets. Refinance leverage runs up to 75% on a principal residence or second home. Whether cash-out proceeds are allowed on that path, and at what leverage, is set by each lender and is not published. A retiree should not assume cash-out is available there until a lender confirms it for the file.
The asset depletion path is where cash-out is spelled out. Leverage is 60% on a cash-out refinance, for a principal residence, second home or investment property. A rate-and-term refinance runs higher: up to 80% on a principal residence or second home, and 65% on an investment property. Loan amounts run from $125,000 to $3,500,000, subject to underwriting.
A borrower is qualified on one path at a time. Figures from the two paths are never blended.
What the Best Asset-Based Cash-Out Refinance Program Depends On
There is no single winner. Which program is best for your situation depends on four things: how much of the portfolio is liquid, how old you are, what the property is, and how much cash you want.
A retiree with seven figures in brokerage accounts and a modest balance on the house tends to fit the qualifier path for a rate-and-term or plain refinance. A retiree who wants a meaningful cash draw usually looks at the depletion path, because the cash-out ceiling is published. A retiree with a rental can compare depletion against a property-income loan, covered below.
A broker that shops several wholesale lenders can match these facts to the program that writes them. Lendmire arranges this as a broker, placing the file with select lenders in its network. It does not lend or approve anything itself.
How the Underwriting Treats Your Assets
Both paths document assets with statements, so neither is a no-documentation loan. The lender looks at what each account is, how long it has been there, and what share of the balance counts.
Qualifier path credit. Brokerage accounts, certificates of deposit, money market and savings count at 100%. A 401(k) or IRA counts at 90% if you are under 59½ and 100% at 59½ or older. Accounts combine.
Here is an illustration. An $800,000 loan is backed by $330,000 in brokerage accounts (100%, so $330,000), $300,000 in a 401(k) held by a borrower under 59½ (90%, so $270,000) and $200,000 in savings (100%, so $200,000). That counts $800,000 of usable assets and covers the loan on assets alone. The lender’s own calculation governs.
Depletion path haircuts. Cash accounts and certificates of deposit count at 100%. Securities count at 80%. Retirement accounts count at 70% at any age. Real-estate equity counts at 60%.
Take $1,500,000 in securities (80%, so $1,200,000) plus $300,000 in cash (100%, so $300,000). That is $1,500,000 of usable assets. Divided by 60 months, it produces $25,000 of monthly qualifying income. That income then has to carry the housing payment and other debts through the debt-to-income test.
The depletion path also sets a floor on assets. 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 asset depletion is the only income source. If asset income supplements documented income, such as Social Security or a pension, the debt-to-income limit is 45% and the minimum-assets rule is waived.
Seasoning, Statements and Credit
Seasoning is where files slow down for avoidable reasons. On the qualifier path, funds need 60 days of seasoning, with two months of statements for each qualifying account. On the depletion path, statements must be 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.
Credit starts at a 600 minimum score on the qualifier path. The depletion path follows the lender’s matrix for score and loan amount, and a first-time investor on that 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 on the depletion path. None of this promises approval.
Reserves are simple. The qualifier path requires none at or below 75% loan-to-value, and above that the lender sets them. The depletion path has no published reserve months.
What Does Not Count
Several asset types fail on every file, and retirees with concentrated holdings run into them.
Privately held company stock is not an eligible asset on either path. A founder or shareholder’s route 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 your ownership share are not published as eligible on either path. The documented route is converting them to a seasoned cash balance in a regulated account, with the source reviewed by the lender.
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
If the Property Is a Rental
A retiree who owns a rental has a second option, and it is not an asset-based loan. A property-income loan, known as DSCR, qualifies primarily on rental income covering the payment, subject to lender guidelines. The ratio is the property’s income divided by its debt service, and a result at or below 1.0 means the rent does not cover the payment, as the debt service coverage ratio formula describes.
Pulling cash out raises the balance and the payment, so coverage shrinks. A rental that passed on its old loan can miss on a larger one. Your pension and Social Security neither help nor hurt that ratio.
Business-purpose loans are reviewed differently from a standard owner-occupied mortgage. The Federal Register’s ability-to-repay final rule treats investment-purpose loans as business-purpose. A rental loan therefore runs on the property, while a loan on your home runs on the borrower, which is why assets matter there.
The depletion path also covers investment property, at 60% on a cash-out refinance. That suits a retiree whose rental rent is thin but whose portfolio is deep. The two routes can produce different leverage and different documents for the same house, so a broker compares both. Lendmire’s asset-based mortgage programs are the place to start for the home-loan side.
Is It Safe on a Fixed Income?
A larger loan means a larger monthly obligation, and a fixed income cannot absorb surprises. Before asking for the maximum, run a budget test.
1. List fixed monthly income from Social Security, pension and annuities.
2. Add the planned draw from the portfolio.
3. Subtract the new housing payment, taxes, insurance and ordinary living costs.
4. Ask what happens if a market drop cuts the portfolio.
On the depletion path, the lender’s qualifying income is derived from your balances, not from what you actually withdraw. A loan can qualify and still strain your budget. Taking less cash than the ceiling allows is often the safer choice.
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.
Alternatives Compared
| Option | Reviews | Retiree note |
|---|---|---|
| Asset qualifier | Assets vs. whole loan | No income documented |
| Asset depletion | Assets as income | 60% cash-out ceiling |
| DSCR (rentals) | Rent vs. payment | Pension not counted |
| Bank statement | Deposits | Needs income deposits |
| HELOC | Lender’s own review | Keeps first mortgage |
A HELOC leaves the first mortgage in place, while a cash-out replaces it. If your existing first loan is one you want to keep, that difference matters. The bank statement program is for borrowers who document income with deposits, which most retirees living off a portfolio cannot do.
Key Terms Defined
Asset qualifier path: the route where eligible assets, after credit percentages, must equal or exceed the entire loan amount.
Asset depletion path: the route where usable assets are divided by 60 months to produce monthly qualifying income.
Haircut: the share of an account balance the lender will not count, such as the 20% reduction on securities.
Seasoning: the time funds must sit in an account before they count as yours.
Cash-out refinance: a new loan larger than the payoff, with the difference paid to the borrower.
Documents to Gather
Pull these before the file goes in:
- statements for every qualifying account, with the required age and count
- a source record for any large recent deposit
- a payoff statement for the existing loan
- the property insurance declaration
- ID and housing history
- for a sale or buyout, the settlement statement showing proceeds in a regulated account
Missing statement pages cause more delays than the program rules do.
Where This Program Is Available
Consumer mortgage lending on this program 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 figures here are ceilings and floors, not offers, and programs change.
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
Does Social Security or a pension help me qualify?
It can, but it is not required. On the qualifier path no income is documented at all. On the depletion path, asset-derived income may supplement documented income such as a pension, up to a 45% debt-to-income ratio, and the minimum-assets rule is then waived.
Can I use a retirement account like an IRA or 401(k)?
Yes. On the qualifier path, a 401(k) or IRA counts at 90% under age 59½ and 100% at 59½ or older. On the depletion path it counts at 70% at any age. You do not have to withdraw the money.
Does my privately held company stock count?
No. The route is documented liquid assets, such as seasoned proceeds from a sale or buyout held in a regulated account.
Is this a no-documentation loan?
No. There are no traditional personal-income documentation, pay stubs or employment verification, but the assets are documented with statements and the file is fully underwritten.
Is cash-out allowed on this kind of loan?
It depends on the path. The depletion path publishes a 60% cash-out ceiling, while the qualifier path leaves cash-out to the lender’s discretion. Knowing which path your file is on settles most of the confusion. The exact terms vary by lender and program and follow a full review of property, leverage, and credit.
A deeper walk-through of investment-property equity extraction lives in Lendmire’s guide to cash-out refinance on an investment property.
About Lendmire
As a mortgage broker (NMLS# 2371349), Lendmire helps self-employed and high-net-worth borrowers in 16 states qualify on bank statements, a profit-and-loss statement, 1099s or liquid assets instead of tax returns, through wholesale lenders. Lendmire is never the lender; program terms are set by the lender and its 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. Wikipedia – Debt service coverage ratio
2. Federal Register – CFPB ability-to-repay final rule
This article is part of Lendmire’s asset-based mortgage program — full qualification details, guidelines, and scenarios live on the program page.
Related reading: Can You Take Cash Out of a Texas Homestead on an Asset Depletion Loan? · How to Refinance a Virginia Mortgage After Retiring With No W-2 Income · Asset Seasoning Rules for a Colorado Asset-Based Mortgage
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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- Lendmire LLC · Firm NMLS# 2371349 · Verify firm licensure
Disclosure information. Lendmire is a state-licensed mortgage brokerage under NMLS# 2371349. Lendmire is not a depository institution, direct lender, or financial advisor — all loans referenced are placed through wholesale lender partners and are subject to each lender's underwriting standards. This article is provided for general informational purposes and is not a commitment to lend, nor does it constitute financial, legal, or tax advice. Loan programs, terms, rates, and qualification standards change without notice and depend on borrower profile, property type, and the state in which the subject property is located. Equal Housing Opportunity provider. NMLS Consumer Access: nmlsconsumeraccess.org.