The Quick Read: The best program for most borrowers with a trust-held home and large balances is the asset depletion path, because its cash-out terms are published, with a 60% loan-to-value ceiling. The asset qualifier path can fit instead, depending on the lender, and the property type decides which one is open to you. A revocable trust changes the paperwork and who signs, but it does not change how the lender values your assets. Lendmire is a mortgage broker, and it matches your statements, property and trust documents to a program in its wholesale network, subject to underwriting.
- The asset qualifier path covers the whole loan with eligible assets. It does not document employment or income, and its cash-out terms are set by the lender and are not published.
- The asset depletion path turns usable assets into monthly qualifying income. Its cash-out ceiling is 60% loan-to-value on a principal residence, a second home or an investment property.
- A revocable trust is usually workable, but acceptance varies by program, so confirm it before you apply.
- Consumer asset-based lending through Lendmire’s network is licensed in 16 states.
Who This Is Built For
This is a niche product, and it fits a specific borrower: someone with large balances and little documented income. Think of a retiree living on a portfolio, someone who sold a business, or a household that received an inheritance or a settlement. Many of these borrowers also hold their home in a revocable living trust for estate-planning reasons.
An asset-based mortgage is reviewed around what you own instead of what you earn. The file still goes through full underwriting. You skip traditional personal-income documentation, pay stubs and employment verification, and you hand over statements instead.
This article walks through how the two paths work, what the trust changes, where the general rule breaks and how to choose. For the product itself, see Lendmire’s asset-based mortgage programs.
Key Terms Defined
Revocable trust: a living trust you can change or cancel, usually with you as trustee and beneficiary.
Vesting: the exact name in which title to the property is held, such as Jane Smith, Trustee of the Smith Family Trust.
Seasoning: how long money must sit in an account before the lender counts it.
Asset qualifier path: qualifying on assets alone, where eligible assets must equal or exceed the entire loan.
Asset depletion path: converting usable assets into monthly income by dividing them by 60 months.
Cash-out refinance: a new loan that pays off the old one and gives you extra cash from the equity.
The Two Paths, and Why You Pick One
You are qualified on one path at a time. The paths use different leverage limits, different asset percentages and different documents, so never blend their figures.
The asset qualifier path is the simpler of the two. Your eligible assets, after the credit percentages below, must equal or exceed the entire loan amount. Nothing about employment or income is documented. On the asset qualifier path, loans go up to $4,000,000, subject to underwriting.
The asset depletion path works differently. The lender takes your usable assets, divides them by 60 months and treats the result as monthly income. That income must carry the housing payment and your other debts through the debt-to-income test. Loans on this path run from $125,000 to $3,500,000, through select programs.
Here is the practical split:
| Factor | Asset qualifier path | Asset depletion path |
|---|---|---|
| Reviewed on | Assets cover the whole loan | Assets become monthly income |
| Income documented | None | Derived income, tested by DTI |
| Cash-out terms | Set by lender, not published | 60% LTV, all occupancies |
| Property types | Principal residence, second home | Also investment property |
| Loan range | Up to $4,000,000 | $125,000 to $3,500,000 |
Leverage on a refinance also differs. On the qualifier path, a refinance of a principal residence or second home goes up to 75% loan-to-value. On the depletion path, a rate-and-term refinance goes up to 80% on a principal residence or second home and 65% on an investment property. Those are ceilings for qualified files, never offers.
What Counts as an Asset
The two paths treat your accounts differently, so check your statements against the right column.
On the asset qualifier path, the following share of each balance counts:
- Brokerage accounts, certificates of deposit, money market and savings count at 100%.
- Retirement accounts (401(k) and IRA) count at 90% if you are under 59½ and at 100% from 59½ on.
- Accounts combine, so you can add them together toward the loan amount.
On the asset depletion path, the shares that count are lower:
- 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%.
Several things do not count 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. No percentage applies to it. If your wealth sits in a closely held company, the documented route is a sale or buyout that turns the proceeds into a seasoned cash balance.
Cryptocurrency, precious metals, collectibles and pledged or borrowed funds are also not published as eligible on either path. Converting them to cash in a regulated account, with the source reviewed by the lender, is the route.
Seasoning, Credit and Minimums
Each path has its own seasoning rules. On the qualifier path, funds need 60 days of seasoning and two months of statements for each qualifying account. On the depletion path, statements must be at least 120 days old at application, plus one statement within 45 days. Funds from the sale of a business, an inheritance or a legal settlement are excused from that seasoning on the depletion path.
Credit starts with a 600 minimum score on the qualifier path. The depletion path follows the lender’s matrix. A first-time investor on the depletion path needs a 700 score. Housing history is generally 0x30x12, and one 30-day late payment 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.
The depletion path also has asset minimums. You need qualified assets of at least the lesser of $1,000,000 or 1.25 times the loan balance. When asset depletion is your only income source, qualified assets can never fall below $250,000 in liquid form. If asset-derived income only supplements documented income, it can be used up to a 45% debt-to-income ratio, and the minimum-assets rule is waived.
On the qualifier path, no reserves are required at or below 75% loan-to-value. Above that, the lender sets them. The depletion path has no published reserve months. All of this is subject to underwriting and the lender’s own calculation.
How a Revocable Trust Changes the File
Underwriting is on you and your assets, not on the trust. The trust changes five practical things.
Who signs. The trustee signs the note and the security instrument. For most people with a self-managed living trust, that is the same person who is borrowing.
Documents. Expect to provide a certification of trust, which summarizes the trust’s existence and the trustee’s authority. Some programs ask for the full trust agreement, plus trustee identification. The lender needs to see that the trustee has authority to borrow against the property.
Vesting. The name on the deed, the note, the title policy and the hazard insurance should match exactly. A mismatch can stall a closing.
Trust type. Across the network, a revocable trust is widely accepted but not universal. Irrevocable trusts and land trusts are harder, and many programs will not take them as the borrowing entity. A revocable trust that becomes irrevocable at death may also be treated differently, so ask first.
Trust-held assets. If your brokerage or savings accounts also sit in the trust, the lender needs to confirm you have access to them and, for the qualifier path, that the statements show the account ownership. Bring the account titles along with the trust certification.
A broker who works with several lenders can pre-clear your trust type and asset mix before you apply.
Why Primary Homes and Rentals Differ
The occupancy of the property drives which path is open to you.
On a principal residence or second home, both paths are available. The asset qualifier path is a consumer mortgage. The asset depletion path also works here, with cash-out up to 60% loan-to-value. Final terms depend on lender guidelines, property type, leverage and your credit profile.
On an investment property, only the asset depletion path applies, and the loan is business-purpose. A purchase or rate-and-term refinance is limited to 65% loan-to-value, while a cash-out stays at the 60% ceiling. If your property is a rental and you would rather qualify on its rent, Lendmire’s piece on a best DSCR cash-out refinance program on a property held in a revocable trust covers that route instead.
The occupancy also matters because of the transfer rules on your existing mortgage.
Do You Need to Move the Property Into or Out of the Trust?
Often the answer is no, because the refinance pays off your old loan at closing. Once the old loan is gone, there is no old lender left to call it due. If the property is already in your trust, a cash-out refinance can usually close in the trust without a new deed, provided the program accepts that trust.
The trouble comes if you plan to move the property into a trust while a mortgage is still outstanding. A federal regulation limits when lenders may act on due-on-sale clauses. It protects a transfer into a living trust only where the borrower is and remains the beneficiary and occupant of the property. That protection fits a home you live in. It does not safely cover a tenant-occupied rental, which is another reason a payoff at the refinance closing is the cleaner path.
Some lenders will ask you to deed the property out of the trust before closing and back in afterward. That can disrupt your estate plan and your title coverage, so raise it with your estate attorney before agreeing.
Title Insurance and the Trust
If you deeded the property into the trust after you bought it, your original owner’s title policy may or may not follow. The standard ALTA owner’s policy form extends insured status to a trustee or beneficiary of an estate-planning trust that the insured created. Older policy forms are less certain.
A trust endorsement, according to a title insurer’s education piece on trust endorsements, adds the trust as an additional named insured without replacing the original. It carries no premium, though a title update fee may apply. Your refinance also gets a new lender’s policy that follows the vesting at closing. Ask your title company early.
Worked Example: Qualifier Path
These numbers are illustrative, and the lender’s own calculation governs. Say you want an $800,000 loan. You hold $330,000 in brokerage accounts, which count at 100% for $330,000. You also hold $300,000 in a 401(k) and are under 59½, so it counts at 90% for $270,000. Add $200,000 in savings at 100%, which is $200,000.
That totals $800,000 of usable assets, which equals the loan. You would qualify on assets alone, subject to underwriting. Whether cash-out is available on this path, and at what leverage, is set by the lender and is not published. A purchase or standard refinance is simpler to size.
Worked Example: Depletion Path
Suppose you hold $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. That is $1,500,000 usable.
Divide by 60 months, and you get $25,000 of monthly qualifying income. That income then has to carry the housing payment and your other debts through the debt-to-income test. Cash-out on this path runs at 60% loan-to-value. The cash you take out never counts as a qualifying asset.
Where the General Rule Breaks
A few edge cases trip people up.
- A trust-owned LLC. If the structure is trust, then LLC, then property, the LLC becomes the borrower. Acceptance is program-dependent, both layers need documents, and consumer asset-based loans generally need the borrower to be an individual or trust. Check before you plan around it.
- Irrevocable trusts and land trusts. Many programs will not accept them. Confirm first.
- Privately held company stock. Privately held company stock is not an eligible asset on either path, however much the shares are worth. The route is documented liquid assets, such as seasoned proceeds from a sale or buyout of the company.
- Property type. Ineligible property types stay ineligible no matter how title is held. Manufactured homes, log homes and barndominiums are examples that many programs do not take.
- A trust does not waive anything. Putting your home in a trust does not lower credit requirements, skip seasoning or add leverage.
- Real-estate equity. It counts at only 60% on the depletion path, so a portfolio of equity needs more total value to qualify than a portfolio of cash.
A revocable trust also does not shield you from lawsuits while you are alive. It helps with probate and incapacity. If liability protection matters, ask your attorney whether a different structure fits.
What the Decision Looks Like in Practice
Start with your assets and ask whether they cover the whole loan. If so, the qualifier path may fit. If they fall short but produce meaningful monthly income over 60 months, the depletion path may fit.
Next, check the property. A principal residence or second home opens both paths. An investment property limits you to the depletion path at 60% cash-out. Final terms depend on lender guidelines, property type, leverage, and the borrower’s complete credit picture.
Then check your trust type. A revocable trust is the easiest. Anything else needs pre-clearing.
Finally, line up documents. Gather statements, a certification of trust, trustee identification and your current title and insurance policies. Get names consistent across all of them.
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.
This article is general information, not legal or tax advice. Consult a qualified attorney or CPA about your own trust, title and tax situation before you act.
Frequently Asked Questions
Can I do an asset-based cash-out refinance if my home is in a revocable trust?
Often yes, through select programs. A revocable trust is widely accepted but not universal, so confirm acceptance before applying. The trustee signs, and the lender typically asks for a certification of trust. Terms are subject to underwriting.
Which path allows cash-out?
On the asset depletion path, cash-out runs up to 60% loan-to-value on a principal residence, second home or investment property. On the asset qualifier path, the lender sets cash-out availability and leverage, and those terms are not published. Ask your broker what a given lender allows.
Does the cash I take out count toward qualifying?
No. Cash-out proceeds never count as qualifying assets. Your qualifying assets must come from seasoned balances that exist before the loan.
Will my trust-held brokerage account count?
It can, if the lender confirms you have access to it. Expect to provide account statements and documents that show the trust’s ownership. The usual credit percentages apply to the balance.
Do I need to deed my home out of the trust?
Not always. Many programs close with the trust as the borrower, and a refinance pays off your old loan. Some lenders prefer a deed-out, so confirm the program first and talk to your estate attorney before agreeing.
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.
Investors weighing their equity options can start with Lendmire’s guide to cash-out refinance on an investment property.
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References
3. Title insurer education piece on trust endorsements
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 With a 40-Year Term · Best Asset-Based Cash-Out Refinance Program Right After Buying the Property With Cash
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
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.