The Quick Read: The best program for your situation is the asset depletion path, because it is the route that supports cash-out through select programs. It turns eligible assets into monthly income, which then runs through the debt-to-income test. On a principal residence or second home, cash-out leverage tops out at 60%, and on an investment property it also tops out at 60%, subject to underwriting.
- Asset qualifier path: eligible assets must cover the entire loan, and no employment or income is documented. Cash-out terms on this path are set by the lender and are not published.
- Asset depletion path: usable assets divided by 60 months become qualifying income. That income carries the housing payment and your other debts.
- Cash-out proceeds never count as qualifying assets on either path.
- Statements are required. There are no traditional personal-income documentation, pay stubs or employment verification, but every file is fully underwritten and assets are documented.
Most people searching for this are asset-rich and income-light. They may be retirees, people who sold a business, heirs, or early-retired professionals. A conventional lender looks at their income, sees a high debt-to-income ratio, and stops there. An asset-based file asks a different question: what do the balances support?
The answer depends on the borrower, the property, and the lender. Lendmire is a mortgage broker, not a lender. It matches a file to the select programs in its wholesale network that fit. The sections below explain how those programs work.
What Does “Asset-Based” Mean for a Cash-Out Refinance?
Asset-based means the lender reviews your file on what you own instead of what you earn. Across the wholesale network, two paths exist. A borrower is qualified on one path at a time, and the figures never blend.
The asset qualifier path requires eligible assets, after the credit percentages, to equal or exceed the whole loan amount. Loans run up to $4,000,000, and leverage tops out at 80% on a purchase and 75% on a refinance, on a principal residence or second home. Whether cash-out proceeds are allowed here, and at what leverage, is the lender’s call. No one should quote you a figure on that point.
The asset depletion path converts usable assets into income. Loans run from $125,000 to $3,500,000. The sections below cover its leverage in detail. You can explore Lendmire’s asset-based mortgage programs for the full overview.
Why Does a High DTI Block a Standard Cash-Out?
Debt-to-income compares your monthly debts to your monthly income. A cash-out refinance makes the mortgage balance larger, so the payment rises. If your documented income is low or irregular, the ratio climbs fast.
Self-employed owners with heavy write-offs run into this often. So do retirees living on a portfolio. Their tax returns show little income even though their balances are large.
There is also a trap. Paying off debts with the proceeds lowers your other obligations. But the larger mortgage payment can cancel that gain.
Which Path Supports a Cash-Out With High DTI?
The asset depletion path is the one with published cash-out leverage. Here is how the two compare.
| Factor | Asset Qualifier | Asset Depletion |
|---|---|---|
| What is tested | Assets cover whole loan | Assets become income |
| DTI test | No income documented | Derived income runs DTI |
| Cash-out leverage | Set by lender, unpublished | 60% on all occupancies |
| Loan amounts | Up to $4,000,000 | $125,000 to $3,500,000 |
| Investment property | Not published | Yes, business purpose |
The depletion path is also the only one that reaches investment property. That loan is business-purpose, while a principal residence or second home is a consumer mortgage.
The qualifier path leaves cash-out to the lender’s own guidelines, while the depletion path publishes its cash-out rules.
How Does Asset Depletion Math Work?
Each eligible asset counts at a set share of its balance. Add the results, then divide by 60 months. That figure is your monthly qualifying income.
Take this illustration, which is not a quote. Say a borrower holds $1,500,000 in securities, counted at 80% for $1,200,000. They also hold $300,000 in cash, counted at 100%. Usable assets total $1,500,000. Divided by 60 months, that is $25,000 of monthly qualifying income. That income then has to carry the housing payment and other debts through the debt-to-income test. The lender’s own calculation governs.
Asset-derived income can also supplement documented income, up to a 45% debt-to-income ratio. When it supplements, the minimum-assets rule is waived.
What Does the Qualifier Path Look Like?
The qualifier path is simpler, since there is no income conversion. Consider an $800,000 loan. Say the borrower holds $330,000 in brokerage accounts (counted at 100%), $300,000 in a 401(k) while under 59½ (counted at 90%, or $270,000), and $200,000 in savings (100%). Usable assets total $800,000, which covers the loan on assets alone. Accounts combine. No reserves are required at or below 75% loan-to-value, and above that the lender sets them.
Which Assets Count?
Credit percentages differ by path. Never mix the two tables.
| Asset | Qualifier Path | Depletion Path |
|---|---|---|
| Brokerage / securities | 100% | 80% |
| Certificates of deposit | 100% | 100% |
| Cash, savings, money market | 100% | 100% (cash accounts) |
| Retirement accounts | 90% under 59½, 100% after | 70% at any age |
| Real-estate equity | Not listed | 60% |
Several assets do not count at all on the depletion path. These include 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. Cryptocurrency, precious metals, collectibles, and pledged or borrowed funds are not published as eligible either. The documented route for all of these is converting them to a seasoned cash balance in a regulated account. The lender reviews the source of those funds.
What Credit, Seasoning and Minimums Apply?
Credit is where files often stall. The qualifier path publishes a 600 minimum score. The depletion path follows the lender’s matrix by score and loan amount. A first-time investor on the depletion path needs 700.
Housing history should be clean, at 0x30x12. One 30-day late in the last twelve months is considered case by case. Multiple bankruptcies are not eligible. A housing event needs four years of seasoning on the depletion path.
Seasoning rules differ by path:
- Qualifier path: 60 days of seasoning, with two months of statements for each qualifying account.
- Depletion path: statements at least 120 days old, plus the most recent statement within 45 days. Sale-of-business, inheritance and legal-settlement funds are excused from that seasoning.
Depletion also has minimum assets. You need the lesser of $1,000,000 or 1.25 times the loan balance. When assets are your only income source, you need at least $250,000 in liquid assets.
All of this is subject to underwriting and lender guidelines.
Who Fits Which Path?
The right path depends on your profile. A rough decision guide:
- Retiree living on a portfolio: depletion is usually the fit if you want cash-out. Qualifier works if your assets cover the whole loan and you do not need cash.
- Seller of a business: documented sale proceeds, once converted to cash, can count. Those funds are excused from depletion-path seasoning.
- Investor with a high personal DTI: depletion reaches investment property, at 60% on a cash-out. Rental-based financing may fit better, so ask a broker to compare.
- Moderate DTI, solid income: you may not need non-QM at all. Conventional can carry a lower cost, and it flips only when documentation or ratios block it.
Leverage on the Depletion Path
On a principal residence or second home, depletion goes up to 80% on a purchase or rate-and-term refinance, and 60% on a cash-out refinance.
Sixty percent is low. That is the honest tradeoff. Asset-based cash-out suits borrowers with substantial equity, and it will not unlock cash from a thin-equity home. If you are borrowing against your home to cover monthly cash flow, stop and reconsider. Equity erosion is a real cost.
Can Cash-Out Proceeds Be Used Any Way I Like?
On a principal residence or second home, the loan is a consumer mortgage, and the use of funds is your business. On an investment property, the loan is business-purpose. Business-purpose investor loans are reviewed differently from a standard owner-occupied mortgage. CFPB Regulation Z is the source of that distinction. Credit to buy or improve non-owner-occupied rental property counts as business purpose, per CFPB examination material. Using investment-property proceeds for consumer spending can jeopardize that status, so keep clear records.
Tax treatment varies; consult a qualified professional.
Key Terms Defined
Debt-to-income (DTI): your monthly debts divided by your monthly income.
Loan-to-value (LTV): the loan amount divided by the property’s appraised value.
Seasoning: the time assets must sit in your accounts before they count.
Usable assets: the balance that counts after each account’s credit percentage.
Cash-out refinance: a new, larger mortgage that pays off the old one and returns the difference.
What Should You Prepare?
1. Statements for every qualifying account, in the seasoning windows above.
2. Proof of where large deposits came from.
3. Your current mortgage statement and a credit report review.
4. For an investment property, entity documents if the property sits in an LLC, subject to program terms.
The program is not no-doc. Every file is underwritten. The difference is that the paperwork is statements instead of tax returns, pay stubs or employment verification.
Frequently Asked Questions
Can I qualify with no job?
Yes, through select programs. On the qualifier path, no employment or income is documented, and eligible assets must cover the whole loan. On the depletion path, assets become your qualifying income. Both remain subject to underwriting, credit review and lender guidelines.
Do cash-out proceeds count as assets?
No. Cash-out proceeds never count as qualifying assets on the depletion path. The assets used to qualify must already be in your accounts and seasoned. Counting borrowed funds is not allowed.
Can I use an IRA or 401(k)?
Yes. On the qualifier path, retirement balances count at 90% under age 59½ and 100% at 59½ or older. On the depletion path, they count at 70% at any age. Statements are still required.
Does it work on an investment property?
Only on the depletion path. Investment property tops out at 60% on a cash-out and 65% on a purchase or rate-and-term refinance. First-time investors need a 700 score. Qualification is subject to lender guidelines.
Will paying off debts with proceeds lower my DTI?
It can, but the larger mortgage payment may offset the gain. Test the new payment against your derived income before choosing an amount. A broker can run both versions across several programs before you commit.
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 one more angle, see Lendmire’s piece Can You Get a Cash-Out Refinance With a High Debt-to-Income Ratio?. Programs, availability and terms change, and this is 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
2. CFPB Truth in Lending Act examination material
This article is part of Lendmire’s asset-based mortgage program — full qualification details, guidelines, and scenarios live on the program page.
Related reading: How to Refinance a Virginia Mortgage After Retiring With No W-2 Income · Can You Cash Out a Texas Home on an Asset Depletion Refinance? · Asset-Based Mortgage vs Full-Doc Jumbo for a High-Net-Worth Tennessee Buyer
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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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.