The Quick Read: The best program for your situation depends on whether your assets can cover the whole loan or only turn into monthly income, and that choice decides how much cash you can pull out. Programs placed through select lenders in Lendmire’s network qualify you on documented assets instead of tax returns, pay stubs or employment verification, subject to underwriting.
- Assets cover the loan outright (asset qualifier path): eligible assets must equal or exceed the entire loan, and no income is documented.
- Assets become income (asset depletion path): usable assets divided by 60 months become qualifying monthly income, and that income runs through the debt-to-income test.
- Cash-out is tighter than other refinances: on the depletion path, cash-out tops out at 60% loan-to-value, and the cash you receive never counts as a qualifying asset.
- Partial income still works: on the depletion path, asset income can supplement the income you still document, up to a 45% debt-to-income ratio.
This is Lendmire’s own read of how these files work. Lendmire is a mortgage broker, not a lender, and consumer mortgage lending is licensed in 16 states. Everything below is subject to underwriting and is not a commitment to lend.
Why Lower Income Does Not Automatically Close the Door
When income drops, a conventional lender looks at the drop. An asset-based program looks at what you own. A retiree, a business seller, a household living on a portfolio, or a professional who stepped back from work can have large balances and thin paychecks. Those borrowers are who these programs were built for.
Lower income and no income are different situations, and the program treats them differently. If you have no documented income, you qualify on assets alone or on assets converted to income. If you still have some income, the depletion path can add asset income to it. Either way, every file is fully underwritten. The assets are documented with statements, and the lender reviews credit, the property and the source of funds.
Lendmire’s asset-based mortgage programs are built around that idea. The program checks whether your assets can carry the loan. It does not check whether this year’s paycheck can.
Key Terms Defined
- Asset qualifier path: the route where eligible assets, after credit percentages, equal or exceed the entire loan amount, with no income or employment documented.
- Asset depletion path: the route where usable assets divided by 60 months become monthly qualifying income.
- Cash-out refinance: a new loan larger than your old payoff, where you receive the difference as cash.
- Rate-and-term refinance: a new loan that replaces the old one without paying you meaningful cash.
- Loan-to-value (LTV): the loan amount as a percentage of the property’s appraised value.
- Debt-to-income (DTI): your monthly debts, including the new housing payment, as a percentage of qualifying monthly income.
- Haircut: the share of an account’s balance a lender refuses to count, because the asset can lose value or carries penalties.
- Seasoning: how long funds have sat in your account, shown on statements, before the lender counts them.
The Two Paths, Side by Side
You qualify on one path at a time. Never blend the two sets of numbers. Here is how they compare, with each figure tied to its path.
| Factor | Asset qualifier path | Asset depletion path |
|---|---|---|
| How assets are used | Must cover the full loan | Divided by 60 months into income |
| Income documented | None | Derived income, run through DTI |
| Loan amounts | Up to $4,000,000 | $125,000 to $3,500,000 |
| Credit | 600 minimum score | The lender’s matrix |
| Seasoning | 60 days, two months of statements | Statements 120+ days old, one within 45 days |
On the qualifier path, leverage reaches 80% LTV on a purchase and 75% on a refinance of a principal residence or second home. Whether cash-out proceeds are allowed on that path is set by the lender and is not published. Ask before you assume. Each figure is subject to lender guidelines and a complete review of property type, leverage, and credit.
The depletion path publishes its cash-out leverage. On a principal residence or second home, it allows up to 80% LTV on a purchase or rate-and-term refinance and 60% on a cash-out refinance. Investment property is available only on the depletion path. Figures are ceilings through select programs, never offers. Leverage, reserves, and pricing vary by lender and program; the final terms follow the full file review.
What Counts as an Asset?
Eligible assets count at a percentage of balance, and the percentage depends on your path.
Asset qualifier path: brokerage accounts, certificates of deposit, money market and savings count at 100%. Retirement accounts such as a 401(k) or IRA count at 90% if you are under 59½ and 100% at 59½ or older. Accounts combine.
Asset depletion path: cash accounts and certificates of deposit count at 100%. Securities count at 80%, retirement accounts at 70% at any age, and real-estate equity at 60%.
Several things do not count on the depletion path. Those include custodial accounts, deferred compensation, escrow accounts, foreign funds, cash on hand, stock options, unvested restricted stock units and funds from non-regulated financial companies. Cryptocurrency, precious metals, collectibles, pledged or borrowed funds, and business accounts beyond your ownership share are not published as eligible on either path. Privately held company stock is not eligible on either path.
The route for assets that do not count is conversion. Sell or cash out the holding, let the proceeds season in a regulated account, and have the lender review the source. On the depletion path, sale-of-business, inheritance and legal-settlement funds are excused from the 120-day statement-age rule.
How Underwriting Treats Your File, Step by Step
1. You pick the path. The question is whether your eligible assets can cover the entire loan or whether they need to become income.
2. Statements go in. On the qualifier path, expect two months of statements for each qualifying account and 60 days of seasoning. On the depletion path, expect statements at least 120 days old at application plus the most recent one within 45 days.
3. Credit percentages or haircuts apply. Each account balance is reduced to its usable share.
4. The test runs. Qualifier path: usable assets must equal or exceed the loan. Depletion path: usable assets divided by 60 months become income that carries the housing payment and other debts.
5. The property gets reviewed. Appraised value sets the leverage cap, and the occupancy type decides which table applies.
6. The lender reviews credit and history. Housing history is generally 0x30x12, and one 30-day late in the last twelve months is considered case by case. Multiple bankruptcies are not eligible. On the depletion path, a housing event needs four years of seasoning.
Two Worked Examples
The lender’s own calculation governs. These show the shape of the math.
Qualifier path. Say you want an $800,000 loan. You hold $330,000 in brokerage accounts (100% counts, so $330,000), $300,000 in a 401(k) while under 59½ (90% counts, so $270,000) and $200,000 in savings (100% counts, so $200,000). Usable assets total $800,000. That matches the loan, so the file is reviewed on assets alone, with no income documented.
Depletion path. Say 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. Usable assets total $1,500,000. 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.
Notice the difference. The first file never needs an income number. The second one lives or dies on DTI.
Which Path Fits Which Situation?
The best program for your situation follows from where your wealth sits and how much income you still have.
| Your situation | Likely fit | Main tradeoff |
|---|---|---|
| Large liquid balances, loan is modest | Asset qualifier path | Assets must equal the whole loan |
| Large portfolio, no income at all | Asset depletion path | Needs $250,000+ liquid minimum |
| Reduced income, decent portfolio | Depletion path, supplementing income | Capped at 45% DTI |
| Wealth mostly in home equity | Often a poor fit | Equity counts at only 60% on depletion |
| Income documented by deposits | Bank statement program instead | Different program, different test |
The last two rows matter. Equity-rich borrowers with thin liquid savings often find that these programs count too little of what they own. Borrowers who document income through business deposits belong in a bank statement program, which is a different product.
Where the General Rule Breaks
Cash-out proceeds never count as assets. You cannot borrow against your home and then use that cash to qualify for the same loan. On the depletion path, the cash you receive does not become part of the usable total.
Supplementing income waives the minimum-assets rule. When asset income only supplements income you already document, the depletion path waives the minimum-assets rule. When depletion is your only income, you need qualified assets of at least the lesser of $1,000,000 or 1.25 times the loan balance, and never below $250,000 liquid. This is the edge case that matters most if your income fell but did not disappear.
First-time investors face a higher bar. On the depletion path, a first-time investor needs a 700 credit score. The path’s other credit requirements follow the lender’s matrix. Terms vary by lender guidelines, property type, leverage, credit profile, and full file review.
Investment property changes the rules. Investment property is eligible only on the depletion path, and the cash-out ceiling there is 60% LTV. Because those loans are business-purpose, they are reviewed differently from a standard owner-occupied mortgage. Purpose is decided per transaction, and the CFPB’s rule on business-purpose credit turns on a factor-based test. The ABA Banking Journal likewise says the purpose of the credit is key. If the cash is headed for personal spending, expect the lender to treat the loan as a consumer loan. Exact terms depend on the lender’s guidelines, property type, leverage, and a full review of the borrower’s file.
Rent-based loans are a different animal. If the property rents out, business-purpose rental financing exists that qualifies primarily on property-level rental income covering the payment, subject to lender guidelines. The usual generic formula is net operating income divided by debt service, and AirDNA reports 1.25 to 1.5 as typical for real estate loans generally. That is a market-wide benchmark, not an asset-based program figure. If your property rents and your assets are modest, that route may fit better than anything on this page.
Is Cash-Out Even the Right Move?
Cash-out raises your balance, and a bigger loan means a bigger payment. If income has dropped, you are adding a bigger bill while earning less. Before you apply, ask four questions.
- Do I need the cash, or only the lower payment? A rate-and-term refinance allows up to 80% LTV on a principal residence or second home on the depletion path, which is far more leverage than cash-out.
- Does drawing on assets leave enough behind? The assets that qualify you must stay in place and seasoned.
- Will my income stay lower? A temporary dip and a permanent step down call for different cushions.
- Is there a cheaper source of cash, such as selling a holding? Every figure here varies by lender and program — guidelines, property type, leverage, and credit profile all apply.
Volatile portfolios deserve special care. Securities count at 80% on the depletion path, but the market decides what your balance is on the day the lender looks.
Documentation Checklist
- Statements for every qualifying account, meeting the path’s age and seasoning rules.
- A written explanation of the source of any large deposit.
- Proof of any sale, inheritance or settlement that funds the balance.
- Documentation for any income you want counted when assets only supplement it.
- Property information for the appraisal.
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.
Frequently Asked Questions
Can I use a lower income and my savings together?
Yes, on the asset depletion path. Asset-derived income may supplement the income you still document, up to a 45% debt-to-income ratio. When it only supplements, the minimum-assets rule is waived. Underwriting still reviews the whole file.
Does my privately held company stock count?
No. Privately held company stock is not an eligible asset on either path. The documented route is a sale or buyout converted to a seasoned cash balance. Public securities, cash and retirement accounts count at their path percentages.
How much can I pull out of my home?
On the depletion path, cash-out is capped at 60% LTV for a principal residence, second home or investment property. On the qualifier path, whether cash-out is allowed is lender-set and not published, so it has to be confirmed file by file. Final terms depend on lender guidelines, property type, leverage, and the borrower’s complete credit picture.
Is this a no-documentation loan?
No. Every file is fully underwritten and assets are documented with statements. What you skip is tax returns, pay stubs and employment verification.
Is there a program that works everywhere?
No. Consumer mortgage lending through Lendmire is licensed in 16 states: Alabama, California, Colorado, Florida, Georgia, Indiana, Michigan, Montana, New Mexico, North Carolina, Ohio, Pennsylvania, Tennessee, Texas, Virginia and Washington.
Your 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. Because the right program depends on where your wealth sits, a broker who can match the scenario across several wholesale lenders can save you from applying to the wrong one first.
A deeper walk-through of investment-property equity extraction lives in Lendmire’s guide to cash-out refinance on an investment property.
About Lendmire
Lendmire is a mortgage brokerage (NMLS# 2371349) licensed for consumer mortgage lending in 16 states, arranging bank statement and other alternative-documentation mortgages — P&L-only, 1099-only and asset-based paths — through a wholesale lending network. Eligibility is determined by the lender on each file. 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. CFPB, Regulation Z § 1026.3
2. ABA Banking Journal, compliance question of the month
3. AirDNA, debt service coverage ratio in real estate
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 Get an Asset-Based Mortgage on a Tennessee Condo? · Which Accounts Count on a Texas Asset-Based Mortgage? · How Much Cash Can a New Mexico Homeowner Take Out on an Asset Depletion Refinance?
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
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.