The Quick Read: The best program for a file with six months on title depends on which asset-based path you use and how the lender sets the loan amount. Six months of ownership is a title clock. Asset-based programs run separate clocks on your statements, and the two do not replace each other.
- Six months on title is a lender policy question, not a law, and each program writes its own rule.
- On the asset depletion path, cash-out tops out at 60% loan-to-value on a principal residence, second home or investment property.
- The asset qualifier path covers the whole loan with assets, but its cash-out leverage is set by the lender and is not published.
- Statements carry their own seasoning: 60 days on the qualifier path, and 120 days plus a recent statement on the depletion path.
- Cash-out proceeds never count as qualifying assets.
This is a consumer-style program for borrowers with large balances and light documented income. It is placed through select lenders in Lendmire’s wholesale network, and every file is fully underwritten.
Two Clocks, Two Meanings of “Seasoning”
Seasoning means two different things on an asset-based file, and it helps to keep them separate when planning. Title seasoning measures how long you have owned the property.
| Clock | What it measures | Where it starts |
|---|---|---|
| Title seasoning | Time owning the property | Recorded deed date |
| Asset seasoning, qualifier path | Funds in the account | 60 days, two months of statements |
| Asset seasoning, depletion path | Statement age | 120 days old, plus one within 45 days |
A borrower with six months on title can be clear on the first clock and blocked on the second. A recent inheritance, business sale or settlement is excused from asset seasoning on the depletion path. A fresh transfer between your own accounts is not.
Is There a Universal Six-Month Rule?
No. Title seasoning for cash-out is lender policy, and it varies by program. Federal regulation does not set it for these loans. Across the wholesale network, the short answer is that six months on title is often enough to be considered, but the value basis and the leverage still depend on the program.
Market-wide, the picture is mixed. An SEC-filed loan-review document shows one investor guide counting three months of title seasoning on a “note to note” basis. Another SEC-filed review shows a guide that listed six months for cash-out on an investment property. These are market surveys of other programs, not Lendmire’s network figures. What they show is that definitions differ, so confirm how a given program counts the clock before you commit to a plan.
How Underwriting Treats a Six-Month File, Step by Step
Here is how a file like this moves through review.
1. Establish the clock. Seasoning runs from the recorded deed date, not from the day rehab ended. Some programs count note to note instead. Get the definition in writing before you plan around it.
2. Classify the transaction. Cash-out and rate-and-term are treated differently. Paying off a hard-money or bridge loan with no cash back is usually viewed more kindly than taking cash out. Most of the seasoning pressure sits on cash-out.
3. Pick the path. The asset qualifier path asks whether eligible assets cover the entire loan amount. The asset depletion path asks whether assets, converted to monthly income, carry the payment through the debt-to-income test. A borrower is reviewed on one path at a time.
4. Set the value basis. Inside a lender’s seasoning window, loans are often sized on the lower of appraised value or cost, meaning the purchase price plus documented improvements. Past the window, appraised value usually drives the loan. Six months does not always unlock full appraised value, so ask.
5. Size the loan. The loan is the smallest of the value basis times the leverage cap, the amount your assets support, and any program loan-amount limit.
6. Document. Expect the purchase settlement statement, improvement receipts, a payoff statement on any existing loan, and the asset statements.
Assets are documented on both paths. The program means no traditional personal-income documentation, pay stubs or employment verification. It does not mean no documentation, and it does not mean no underwriting.
The Qualifier Path at Six Months on Title
The asset qualifier path fits a borrower whose balances alone exceed the loan. Eligible assets, after credit percentages, must equal or exceed the entire loan amount, and no employment or income is documented. Loans run up to $4,000,000, with leverage up to 80% on a purchase and 75% on a refinance, subject to underwriting. The credit floor is 600. Terms depend on the lender’s guidelines, the property type, the leverage, and a full review of the credit profile.
Whether cash-out proceeds are allowed on this path, and at what leverage, is set by the lender and is not published. Do not plan a cash-out on this path without a lender confirming it for your file.
Credit percentages are straightforward. Brokerage accounts, certificates of deposit, money market and savings count at 100%. Retirement accounts count at 90% under age 59½ and 100% at 59½ or older. Accounts combine.
Run the numbers on an illustrative file. An $800,000 loan with $330,000 in brokerage accounts (100% = $330,000), $300,000 in a 401(k) under 59½ (90% = $270,000) and $200,000 in savings (100% = $200,000) counts $800,000 of usable assets and is reviewed on assets alone. The lender’s own calculation governs.
The Depletion Path at Six Months on Title
The asset depletion path fits a borrower whose assets should be treated as income. Usable assets are divided by 60 months to produce a qualifying income, and that income has to carry the housing payment and other debts through the debt-to-income test.
This is the path where cash-out figures are published. On a principal residence or second home, cash-out goes up to 60% loan-to-value. On an investment property, cash-out also goes up to 60%, and the loan is business-purpose. Loans run from $125,000 to $3,500,000. Cash-out proceeds never count as qualifying assets.
Haircuts apply. Cash and certificates of deposit count at 100%, securities at 80%, retirement accounts at 70% at any age, and real-estate equity at 60%. Not eligible: 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.
An illustrative file: $1,500,000 in securities (80% = $1,200,000) plus $300,000 in cash (100% = $300,000) is $1,500,000 usable. Divided by 60 months, that is $25,000 of monthly qualifying income, which then carries the housing payment and other debts through the debt-to-income test.
Minimums matter. Qualified assets must be at least the lesser of $1,000,000 or 1.25 times the loan balance, and never below $250,000 liquid when asset depletion is the only income source. Asset income may also supplement documented income up to a 45% debt-to-income ratio, and then the minimum-assets rule is waived. Credit follows the lender’s matrix, a first-time investor on this path needs 700, and a housing event needs four years of seasoning.
What Does Not Count
Privately held 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 haircuts.
Cryptocurrency, precious metals, collectibles, business accounts beyond your ownership share, and pledged or borrowed funds are not published as eligible on either path. The route is converting them to a seasoned cash balance in a regulated account, with the source reviewed by the lender.
Where the Six-Month Rule Breaks
Several cases change the picture.
Delayed financing for cash buyers. This is a seasoning exception, not a separate loan. It ties proceeds to your documented cost instead of appraised value. An SEC-filed review finding describes the mechanics in one market program: the loan is based on the lower of current appraised value or purchase price plus documented improvements, and the new loan cannot exceed the borrower’s documented initial investment. Agency loans have their own delayed financing exception, with other cash-out requirements and pricing still applying. That is agency contrast only. It does not govern asset-based files.
Hard-money or bridge purchases. Payoff is usually easy. Cash back is what the seasoning window limits. One market program allows a narrow hard-money exception when the loan is paid from proceeds, and others do not, so verify per program.
Inheritance and legal awards. Some programs allow cash-out inside the window for inheritance or a property awarded in divorce. Evidence is required.
Entity mismatch. If the purchase was made by an LLC and the refinance is in another name, files can stall. Vesting and source of funds should match, subject to program eligibility. On the depletion path, an investment property loan is business-purpose, so entity questions come up early.
Waivers. Originators sometimes waive seasoning with compensating factors. Do not plan around one.
Decision Path: Which Route Fits Your File
Think through the branches in order.
- Assets exceed the loan and you do not need cash back. The qualifier path may fit as a purchase or refinance. It is the cleanest path.
- You need cash back and want published leverage. The depletion path, at 60% cash-out, is the path with published figures.
- You paid cash and have about six months on title. Compare a delayed-financing treatment against waiting for appraised value. If the property has appreciated, waiting can return more.
- You financed with a hard-money lender. A payoff-only or rate-and-term refinance now, with cash-out later, can beat forcing a cash-out inside the window.
- Your wealth is in a private company. Convert it first. Privately held stock is not an eligible asset on either path. Sale proceeds, held as seasoned liquid funds, are what the program reads.
Why the Best Program Depends on Your File
The best program for your situation depends on property type, credit profile, leverage need, and how your assets are held. Lendmire is a mortgage broker, not a lender. It shops asset-based mortgage programs across select lenders in its wholesale network and matches the scenario to the guidelines. Consumer mortgage lending here is limited to 16 states: Alabama, California, Colorado, Florida, Georgia, Indiana, Michigan, Montana, New Mexico, North Carolina, Ohio, Pennsylvania, Tennessee, Texas, Virginia, and Washington.
The lenders that write these loans differ on how they count the title clock, which value basis they use at six months, and what extra conditions they add to short-seasoned files. A broker’s value on a file like this is knowing which guideline reads your timeline correctly before you spend money on an appraisal. Every figure above is a ceiling or floor, never an offer, and is subject to underwriting. As a consumer mortgage, the loan carries standard consumer disclosures.
Common Mistakes
- Assuming six months unlocks full appraised value. Some programs still limit value inside a longer window.
- Planning around cash-out proceeds as assets. They never count toward qualifying assets.
- Moving money at the wrong time. Fresh transfers can break asset seasoning.
- Confusing the two paths. Never blend the qualifier and depletion tables.
- Skipping the receipts. A cost-based sizing needs documented improvements.
- Using a program for the wrong reader. If you document income with deposits, a bank statement program is the better fit. If the property earns rent and you want to qualify on it, business-purpose rental financing is DSCR.
Key Terms Defined
Title seasoning: the length of time you have owned the property, counted from the recorded deed date or, in some programs, note to note.
Asset seasoning: the length of time funds have been in the accounts you qualify on, shown by statements.
Haircut: the percentage of an asset’s balance that the program does not count.
Delayed financing: a seasoning exception that sizes a cash-out loan to documented cost for a cash buyer.
Value basis: the number the lender applies leverage to, either appraised value or the lower of value and cost.
Frequently Asked Questions
How soon after buying can I take cash out on an asset-based loan?
It depends on the program and the path. Some count three months, some six, and some require longer for full appraised value. The qualifier path sets cash-out terms by lender and does not publish them, while the depletion path publishes 60% cash-out leverage. Ask which clock the program uses before you apply. Final terms depend on the lender’s guidelines, the property type, and the borrower’s complete credit picture.
Does a strong asset profile waive title seasoning?
No. Large balances satisfy asset requirements, not the ownership clock. A lender may waive seasoning for compensating factors, or allow it for inheritance, a divorce award or a delayed-financing case, but a waiver is not something to plan on.
Can I use an LLC?
Possibly, depending on program guidelines. The depletion path covers business-purpose investment property, and vesting and source of funds should match across the purchase and the refinance.
What if I paid cash for the property?
A delayed-financing treatment may let you take cash out sooner, tied to your documented cost. If the property has appreciated, waiting for appraised value can return more. Compare both before choosing.
Can I count my private company shares?
No. Privately held company stock is not an eligible asset on either path. Sell or convert the shares, let the proceeds season in a regulated account, and qualify on the cash.
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.
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 broker that arranges bank statement, P&L-only, 1099-only and asset-based home financing in 16 states through wholesale lenders, on primary residences, second homes and investment properties. Every option is subject to the lender’s guidelines and full underwriting. 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. SEC ABS-15G, APF II RESI loan-review findings
2. SEC ABS-15G, GS Mortgage Securities Corp loan-review findings
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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Important disclosures. Lendmire (NMLS# 2371349) is a licensed mortgage brokerage. Lendmire is not a direct lender, depository institution, or financial advisor. All loan inquiries are subject to lender underwriting; this article does not constitute a commitment to lend. Rates, terms, and program guidelines are subject to change without notice and vary by borrower profile, property type, and state. Information in this article is general in nature and is not financial, legal, or tax advice. Equal Housing Opportunity. NMLS Consumer Access: nmlsconsumeraccess.org.