The Quick Read: The best program for your situation is the one that matches how your wealth is actually held. If you have large balances but little documented income, a mortgage qualified on assets can refinance your home and clear card balances at closing, subject to underwriting.
- Two paths exist. On the asset qualifier path, your eligible assets must cover the entire loan. On the asset depletion path, your assets are converted into monthly income.
- Cash-out terms differ by path. The depletion path publishes cash-out leverage of 60%. On the qualifier path, the lender sets cash-out terms and does not publish them.
- Proceeds cannot qualify you. You cannot refinance and then use the new cash to meet the asset test.
- You document assets, not paychecks. That means no traditional personal-income documentation, pay stubs or employment verification, but every file is fully underwritten.
- Card payoff is a trade, not an erasure. Paying off cards with this loan replaces unsecured debt with debt secured by your home, so balances that refill leave you worse off. Each figure is subject to lender guidelines and a complete review of property type, leverage, and credit.
What Does “Best” Mean for an Asset-Based Cash-Out?
“Best” depends on three things: how your assets are held, how much you need to pull, and what the home is (primary residence, second home or investment property). No single program wins for everyone.
Lendmire is a mortgage broker. It does not lend. It places files with select lenders in its wholesale network and matches your statements to the program that fits. The lenders that write this loan differ on cash-out limits, so the match matters more than any ranking.
This loan suits a specific borrower. Think of a retiree living on a portfolio, someone who just sold a business, an heir with a settlement or inheritance, or an early-retired professional. These borrowers have six- or seven-figure balances and thin documented income. A bank that only reads W-2s and tax returns sees almost nothing. Asset-based mortgage programs read the balances instead.
How Do the Two Asset Paths Compare?
The two paths answer different questions. The qualifier path asks whether your assets cover the loan. The depletion path asks whether your assets, turned into income, carry the payment. You are qualified on one path at a time, never a blend. All figures below are ceilings and floors, subject to underwriting, not offers.
| Factor | Asset Qualifier | Asset Depletion |
|---|---|---|
| Test | Eligible assets ≥ whole loan | Assets ÷ 60 months = income |
| Income documented | None | Derived income runs through DTI |
| Purchase leverage | Up to 80% | Up to 80% (65% investment) |
| Refinance leverage | Up to 75% | 80% rate-and-term (65% investment) |
| Cash-out leverage | Set by lender, not published | 60% (primary, second, investment) |
| Loan amounts | Up to $4,000,000 | $125,000 to $3,500,000 |
| Seasoning | 60 days, two months of statements | Statements 120 days old plus one within 45 days |
The depletion path’s 80% and 65% figures apply to a purchase or rate-and-term refinance on a primary residence or second home and on an investment property respectively. Its 60% applies to a cash-out on all three. The qualifier path’s 75% refinance figure is not a cash-out figure, and the lender decides whether cash-out is allowed on that path and at what leverage.
How Does Underwriting Treat a Card Payoff, Step by Step?
The underwriter treats a card payoff as one more use of a cash-out refinance, but the path you are on changes what that payoff does for you. Here is the sequence across files in the network.
1. Pick the path. If your usable assets equal or exceed the whole loan, the qualifier path fits. If not, but your portfolio is large, depletion may fit.
2. Apply the credit percentages. Each asset type counts at a set share of its balance, covered below.
3. Run the test. The qualifier path compares usable assets with the loan. The depletion path divides usable assets by 60 months and runs the result through the debt-to-income test.
4. Check credit. The qualifier path has 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 a single 30-day late in the last year is considered case by case.
5. Document the assets. You provide statements, not pay records. Underwriting still reviews the whole file.
6. Close with a payoff waterfall. The new loan pays off the old first mortgage first. Then the card balances named on the closing paperwork are paid, and any remainder goes to you.
Here is the useful part of step 3. On the qualifier path, no income is documented, so the card payoff does not change the qualifying test. It simply restructures your debt.
Net cash is always less than the gross cash-out. The old mortgage, closing costs and any card payoffs come out first.
Which Assets Count, and How Much?
Each asset counts at a percentage of its balance, and the percentages differ by path. Never blend the two tables.
Qualifier path, share that counts:
- Brokerage accounts, certificates of deposit, money market and savings: 100%.
- 401(k) and IRA balances: 90% under age 59½ and 100% at 59½ or older.
- Accounts combine.
Depletion path, share that counts:
- Cash accounts and certificates of deposit: 100%.
- Securities: 80%.
- Retirement accounts: 70% at any age.
- Real-estate equity: 60%.
Here is an illustrative qualifier example, and the lender’s own calculation governs. Say you want an $800,000 loan. You hold $330,000 in brokerage accounts (100% counts as $330,000), $300,000 in a 401(k) while under 59½ (90% counts as $270,000) and $200,000 in savings (100% counts as $200,000). That is $800,000 of usable assets, which equals the loan, so the file is reviewed on assets alone, subject to underwriting.
Here is the depletion version. You hold $1,500,000 in securities (80% counts as $1,200,000) plus $300,000 in cash (100% counts as $300,000). That is $1,500,000 usable. Divided by 60 months, it is $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.
The depletion path also sets minimums. When asset depletion is your only income source, you need qualified assets of at least the lesser of $1,000,000 or 1.25 times the loan, and never below $250,000 liquid. The other case is different: asset income can supplement documented income up to a 45% debt-to-income ratio, and when it supplements rather than stands alone, the minimum-assets rule is waived.
Where the Rules Break: Edge Cases
Most surprises come from assets that look valuable but are not eligible, and from the property type. These are the named cases.
Privately held company stock. Privately held company stock is not an eligible asset on either path. The route for a founder or shareholder is documented liquid assets. That means seasoned proceeds from a sale or buyout converted to cash, plus cash, public securities and retirement accounts at their credit percentages.
Crypto, metals and collectibles. 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.
Other ineligible depletion-path assets. 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.
Cash-out proceeds. Your qualifying balances need to stand on their own, because the new cash cannot be counted toward them.
Recent sale, inheritance or settlement money. On the depletion path, sale-of-business, inheritance and legal-settlement funds are excused from the 120-day statement-age requirement. That helps a borrower whose money arrived recently.
Investment property. This is the biggest fork. A primary residence or second home is a consumer mortgage, so TRID disclosures apply. An investment property is available only on the depletion path, at 65% on a purchase or rate-and-term refinance and 60% on a cash-out, and the loan is business-purpose.
Business-purpose status matters for card payoff. Under CFPB Regulation Z, credit to acquire, improve or maintain a non-owner-occupied rental is deemed business purpose, and that treatment is why lenders look hard at personal-debt payoff on such loans. Owner use changes the label too. Doss Law’s explainer describes a 14-day occupancy test, where a property you expect to use more than 14 days looks like consumer credit. If clearing personal cards is the goal, a primary residence or second home is usually the cleaner fit. Confirm the use-of-proceeds rule for your file before you plan around it.
Is This the Right Move for Your Cards?
An asset-based cash-out is the right tool only when the math and the behavior both work. The loan does not erase your debt. It converts unsecured card balances into debt secured by your home, so a missed payment now puts the house at risk.
Before you go further, check each of these.
- The balances are large enough to matter. Closing costs and a larger first mortgage have to be worth the swap. On small balances they often are not.
- You can stop the refill. If cards climb back, you will carry both debts, now with your home behind one of them.
- You are not spending the wrong assets. Money that qualifies you is money that stays documented. If cashing out securities creates a bigger problem than the cards, selling or borrowing against them may be the better trade.
- You have thought about how long you will stay. A longer mortgage term can cost more in total interest than paying cards down aggressively, even if the monthly outlay falls.
- The new terms apply to the whole mortgage. You are not borrowing just the card amount. The refinance replaces your entire first loan.
Skip this loan if your income is solid and conventional underwriting works. A conventional cash-out refinance reads income and debt-to-income, and it may fit personal debt more simply. The honest answer is that asset-based is for borrowers conventional underwriting misreads.
After the Payoff: Keeping the Cards From Refilling
A payoff only works if the balances stay at zero. Here is what holds up in practice.
- Keep the older accounts open but out of your wallet. Closing a long-standing card can shorten your credit history and cut your available credit. Freezing it is often smarter.
- Move recurring bills off the cards. Subscriptions and monthly costs are how balances creep back.
- Hold a cash buffer. Part of why cards refill is that an emergency has nowhere else to go. Keep a reserve in an account you do not count as a qualifying asset.
- Set one rule. Pay in full each month, or do not use the card.
Key Terms Defined
Asset qualifier path: The program route where eligible assets must equal or exceed the entire loan amount and no income is documented.
Asset depletion path: The route where usable assets divided by 60 months become qualifying monthly income.
Cash-out refinance: A new, larger mortgage that pays off the old one and gives you the difference, minus costs.
Seasoning: The length of time funds must sit in an account, shown by statements, before they count.
Debt-to-income ratio: Your monthly debts divided by your monthly income, which the depletion path tests using the derived income.
Haircut: The share of an asset’s balance that does not count toward qualifying.
Frequently Asked Questions
Can I use an asset-based cash-out refinance to pay off credit cards if I have no job?
Possibly, depending on the path and the lender. The qualifier path documents no employment or income, so assets must cover the whole loan, subject to underwriting. The depletion path turns assets into income instead. A lender reviews your credit, the property and your statements either way.
Does privately held stock from my company count toward qualifying?
No. If you have sold or converted shares, the proceeds count once they sit as seasoned cash in a regulated account. Public securities and retirement accounts count at their own percentages.
Can I count the cash I pull out to qualify?
No. Cash-out proceeds never count as qualifying assets on either path. Your existing, documented balances have to carry the file on their own.
Does paying off my cards raise my chance of approval?
It depends on the path. On the depletion path, debts paid at closing typically fall out of the debt-to-income test, which can help. On the qualifier path, no income is tested, so the payoff does not change the asset math. Credit score and housing history still matter on both.
Is this loan available in every state?
No. Consumer mortgage lending for 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.
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. Programs change and every file is underwritten individually, so nothing here is a commitment to lend.
About Lendmire
Lendmire, NMLS# 2371349, is a mortgage brokerage with consumer lending licenses in 16 states. Bank statement, P&L-only, 1099-only and asset-based mortgages are arranged through wholesale lending partners for borrowers whose tax returns understate their income, and each application is underwritten individually by the lender. 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
1. CFPB Regulation Z, Section 1026.3 (business-purpose exemption)
2. Doss Law, Business Purpose Exemption Simplified
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 Before Six Months on Title
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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Legal disclosures. Lendmire (NMLS# 2371349) is a state-licensed mortgage brokerage that arranges financing through wholesale lender relationships. Lendmire is not a direct lender, depository institution, or registered financial advisor. The discussion above is general informational content about real estate financing — it is not financial, legal, or tax advice, and readers should consult licensed professionals for guidance on their individual circumstances. Loan inquiries are subject to lender underwriting; this article does not represent a commitment to lend. Loan terms, rates, and qualification standards vary by borrower, property, and state, and are subject to change at any time. Equal Housing Opportunity. NMLS Consumer Access: nmlsconsumeraccess.org.