The Quick Read: The best program for your situation depends on whether your brokerage balance can cover the whole loan or only convert into monthly income. Through select programs, subject to underwriting, brokerage accounts can qualify a borrower on either of two paths. Cash-out leverage is far tighter on one path than the other.
- Asset qualifier path: eligible assets must equal or exceed the entire loan, and no employment or income is documented.
- Asset depletion path: usable assets divided by 60 months become qualifying income, which then runs through the debt-to-income test.
- Cash-out leverage on the depletion path: up to 60% on a principal residence, second home or investment property. The qualifier path’s cash-out terms are set by the lender and not published.
- Cash-out proceeds never count as qualifying assets.
- Your assets stay in place. They are documented with statements, not sold or pledged.
Retirees, business sellers, inheritance recipients and early-retired professionals often hold large balances with little documented income. Banks built around pay stubs struggle with that profile. Lendmire is a mortgage broker, not a lender, and it matches this profile to the programs in its wholesale network.
What Is an Asset-Based Cash-Out Refinance?
An asset-based cash-out refinance replaces your current mortgage with a larger one and pays you the difference. You qualify with your assets instead of a paycheck. You provide no traditional personal-income documentation, pay stubs or employment verification. Every file is still fully underwritten, and the assets are documented with statements.
You will see other names for this: asset depletion loan, asset qualifier loan, asset-utilization mortgage. They all mean the same family of programs. Lendmire’s asset-based mortgage program page lays out the product line.
Two things it is not. It is not a loan secured by your brokerage account. And it is not a withdrawal plan. Your portfolio keeps its market exposure and keeps working.
Key Terms Defined
Asset qualifier path: a qualification route where eligible assets, after credit percentages, must equal or exceed the entire loan amount.
Asset depletion path: a route that divides usable assets by 60 months to create monthly qualifying income.
Haircut: the share of an account’s value the lender does not count, because the asset can lose value or is harder to reach.
Seasoning: how long funds must sit in your account before the lender trusts them.
Debt-to-income (DTI): your monthly debts divided by your monthly income, here including the derived income.
Cash-out refinance: a new, larger mortgage that pays off the old one and hands you the difference in cash.
How Does Underwriting Treat a Brokerage Account?
Underwriting treats a brokerage account as the strongest non-cash asset you can bring, and one path counts it at full value. On the qualifier path it counts at 100%. On the depletion path securities count at 80%. A borrower sits on one path at a time, so never blend the two sets of figures.
Here is the sequence on most files we place:
1. Pick the path. The question is whether your assets can cover the full loan or need to become income.
2. List the accounts. Brokerage, savings, money market, certificates of deposit and retirement accounts all go on the list.
3. Apply the percentages. Each account type counts at its path’s percentage.
4. Run the test. The qualifier path compares usable assets to the loan. The depletion path divides by 60 months, then runs DTI.
5. Verify with statements. Underwriters want account ownership in your name and a clear source for large deposits.
No regulator defines asset depletion. Each lender sets its own eligible-asset list and divisor, which is why programs differ so much from one lender to the next.
The Two Paths Side by Side
| Factor | Asset Qualifier | Asset Depletion |
|---|---|---|
| Core test | Assets cover the entire loan | Assets ÷ 60 months, then DTI |
| Brokerage/securities | 100% | 80% |
| Retirement accounts | 90% under 59½, 100% after | 70% at any age |
| Cash-out | Lender-set, not published | 60% on all occupancies |
| Loan amounts | Up to $4,000,000 | $125,000 to $3,500,000 |
| Properties | Principal residence, second home | Also investment property |
All figures are typical network ranges, subject to underwriting and lender guidelines. They are ceilings and floors, never offers.
What Counts, and at What Percentage?
Cash and certificates of deposit count at 100% on both paths. Beyond that, the paths split.
Qualifier path: 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.
Depletion path: securities count at 80%, retirement accounts at 70% at any age, and real-estate equity at 60%. Custodial accounts, deferred compensation, escrow accounts, foreign funds, cash on hand, stock options and non-vested restricted stock units are not eligible.
A few asset classes are not published as eligible on either path. That includes cryptocurrency, precious metals, collectibles and pledged or borrowed funds. The documented route is converting them to a seasoned cash balance in a regulated account, with the source reviewed by the lender.
A Worked Example
Say you want an $800,000 loan on the qualifier path. You hold $330,000 in brokerage accounts (100% counts, so $330,000), $300,000 in a 401(k) at age 55 (90%, so $270,000) and $200,000 in savings (100%, so $200,000). That adds up to $800,000 of usable assets, which matches the loan, so you qualify on assets alone.
Now the depletion path. You hold $1,500,000 in securities (80% counts, so $1,200,000) and $300,000 in cash (100%). Usable assets are $1,500,000. Divide by 60 months and you get $25,000 of monthly qualifying income. That income must carry the housing payment and your other debts through the debt-to-income test.
The lender’s own calculation governs. These numbers show the shape of the math, not an offer.
Where Does Cash-Out Fit?
Cash-out is the tightest part of the depletion path. On the depletion path, cash-out tops out at 60% loan-to-value on a principal residence, a second home or an investment property. A purchase or rate-and-term refinance on a principal residence or second home can reach 80% on that same path. On an investment property it is 65%.
On the qualifier path, leverage reaches 80% on a purchase and 75% on a refinance. Whether cash-out proceeds are allowed there, and at what leverage, is set by the lender and not published. That is why some pages say cash-out is allowed and others say it is not. Both can be right. They describe different paths and different lenders.
One rule holds on every file: cash-out proceeds never count as qualifying assets. The money you pull from the house cannot be the money that qualifies you for the house. Likewise, the home’s equity in the subject property is not evidence you can repay. Federal rules for consumer mortgages say the dwelling’s value is not evidence of ability to repay, per the eCFR official interpretations of Regulation Z.
How Do You Pick the Best Program for Your Situation?
No single program wins for everyone. Use if/then logic.
- If your liquid assets cover the whole loan, the qualifier path is usually cleaner. No income test, no 60-month division.
- If your assets are large but fall short of the loan, the depletion path may work, since assets become income.
- If you want maximum cash-out leverage, compare carefully. The depletion path publishes a 60% cash-out ceiling, while qualifier-path cash-out is lender-set.
- If the property is an investment property, only the depletion path applies, at 65% on a purchase or rate-and-term refinance and 60% on a cash-out.
- If you are under 59½ with mostly retirement money, the qualifier path’s 90% credit helps. The depletion path’s 70% is harsher.
- If your income is documented and decent, asset-derived income can supplement it up to a 45% debt-to-income ratio, and the minimum-assets rule is waived when it does.
A broker that shops several wholesale lenders can match your statements, property and credit to the program that fits. That matters more than any “best” label. The lenders that write this product vary in their overlays and in what they publish on cash-out.
What Disqualifies or Limits a File?
Most problems fall into a few buckets.
- Unseasoned funds. 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 latest statement within 45 days. Sale-of-business, inheritance and legal-settlement funds are excused from that depletion-path seasoning.
- Minimum assets on the depletion path. You need the lesser of $1,000,000 or 1.25 times the loan balance. When assets are your only income source, you also need at least $250,000 liquid.
- Credit. The qualifier path’s floor is a 600 score. The depletion path follows the lender’s matrix. A first-time investor on the depletion path needs 700. Housing history is 0x30x12, with one 30-day late in the last twelve months considered case by case.
- Credit events. Multiple bankruptcies are not eligible. A housing event needs 4 years of seasoning on the depletion path.
- Privately held company stock. No. Privately held company stock is not an eligible asset on either path. A founder’s route is documented liquid assets, such as seasoned sale or conversion proceeds, cash, public securities and retirement accounts at their haircuts.
- Moving money around. Large recent transfers need a paper trail. Pledged or borrowed funds do not qualify.
Brokerage balances also move. A market drop before underwriting shrinks your usable pool, so a thin margin can vanish.
Why Not Just Sell the Portfolio?
Many borrowers with big portfolios prefer to borrow. Selling can trigger gains and takes you out of the market. Borrowing against the house keeps your holdings invested. That is a personal call, and tax treatment varies; consult a qualified professional.
The tradeoff is real. You take on a mortgage payment, and the depletion path wants the derived income to carry it. Only you can weigh that.
Three Borrower Profiles
The retiree with a big brokerage account. Picture a 62-year-old with brokerage, savings and a 401(k) that together exceed the loan. She has no paycheck. The qualifier path fits, since her assets can cover the entire loan outright.
The business seller. Say you sold a company and the proceeds sit in a brokerage account. Those funds are excused from depletion-path seasoning, but the sale proceeds still need documentation. If you held shares in a private company that you have not yet sold, that stock does not count. Convert it first.
The portfolio household with a rental. An investor holds $1.5 million in securities and cash and wants to pull cash from an investment property. The depletion path applies, with cash-out at 60% leverage. If you lack documented income or the rent does not carry the property, assets can fill the gap. Terms vary by lender guidelines, property type, leverage, credit profile, and full file review.
For a rental that cash-flows on its own, Lendmire’s DSCR route usually fits better, since it qualifies primarily on property-level rental income covering the payment, subject to lender guidelines. Asset-based qualification suits borrowers whose rent does not carry the loan or whose documented income is thin. Business-purpose rental loans are reviewed differently from owner-occupied mortgages. The CFPB’s Regulation Z commentary says the creditor must determine the primary purpose in each case, so the loan’s purpose drives the treatment, not the label “investment.”
Where the Rule Breaks
A few edge cases trip people up.
- Vesting. Asset-based loans often close in your personal name. If you need an LLC, DSCR may fit better. Entity vesting is subject to program terms.
- Short-term rental income. Asset depletion does not count STR income as a qualifying factor. Short-term rental rules can vary by city, county, HOA, and property type, so investors should confirm local rules before relying on projected rental income.
- Business accounts. Only your ownership share can count, and K-1 profit is a tax number, not an asset.
- Mixed purpose. If you plan to live in the property, consumer rules can apply even if you also rent part of it, as a trade-group summary notes in America’s Credit Unions’ guidance on business-purpose loans.
- Consumer protections. Because the principal-residence version is a consumer mortgage, consumer disclosures apply. That differs from business-purpose DSCR loans.
Pre-Application Checklist
- Two recent months of statements for every account you plan to use.
- Proof the accounts are in your name.
- A paper trail for any large deposit.
- A list of any account types the program excludes.
- Your credit report, checked for surprises.
- A plan to leave the accounts alone until the loan is done.
Do not move, borrow against or pledge the accounts beforehand.
Frequently Asked Questions
Can I do a cash-out using only my brokerage account?
Yes, through select programs, subject to underwriting. On the depletion path your securities count at 80% and become monthly income, with cash-out capped at 60% leverage. On the qualifier path, assets must cover the whole loan, and cash-out terms are lender-set. Exact terms depend on the lender’s guidelines, property type, leverage, and a full review of the borrower’s file.
Do I have to sell my investments?
No. The assets are documented with statements and stay where they are. They are not sold, liened or pledged. The calculation is on paper, though a market drop before underwriting can lower the usable balance.
Do cash-out proceeds count as my qualifying assets?
No. Cash-out proceeds never count as qualifying assets on either path. The loan’s own money cannot be what qualifies you for it.
Is this the same as a bank statement loan?
No. A bank statement program is for borrowers who document income with deposits. An asset-based loan is reviewed against balances instead. Each is a separate program with its own rules.
Can my privately held company stock count?
No. Privately held company stock is not an eligible asset on either path. Sell or convert it first, and the seasoned proceeds can then count as cash.
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. Reach the team at 828-256-2183 or request a quote at Lendmire’s quote page. Figures here are typical ranges through select programs, subject to underwriting and 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 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 reviewed individually by the lender. 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 Supplement I to Part 1026
3. America’s Credit Unions: Regulations and Business Loans
This article is part of Lendmire’s asset-based mortgage program — full qualification details, guidelines, and scenarios live on the program page.
Related reading: Asset-Based Cash-Out Refinance Requirements for a Founder Before a Liquidity Event · Can You Take Cash Out of a Texas Homestead on an Asset Depletion Loan? · Can You Get a Texas Asset-Based Mortgage With No Job?
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
- Mortgage Loan Originator · NMLS# 1129696 · Verify on NMLS Consumer Access
- North Carolina Real Estate Broker · License# 343312 · Verify on NCREC
- North Carolina Insurance Producer · License# 19053198 · Property, Casualty, Life, Health · Verify on NAIC SBS
- Lendmire LLC · Firm NMLS# 2371349 · Verify firm licensure
Required disclosures. Lendmire (NMLS# 2371349) operates as a licensed mortgage broker, not a direct lender or depository. The discussion in this article is general in nature and should not be relied upon as financial, legal, or tax advice — every investment scenario is unique and should be reviewed by a qualified professional. Any loan inquiry is subject to lender underwriting, and this article is not a commitment to lend or a guarantee of approval. Mortgage rates, loan terms, and program guidelines vary by borrower, property, and state, and may change without notice. Equal Housing Opportunity. Verify licensure at NMLS Consumer Access.