The Quick Read: The best program for a borrower with large home equity and little documented income is the one that matches where the wealth sits: liquid balances that cover the loan, balances that can be converted into monthly income, or neither. Through select programs, and subject to underwriting, the two paths work very differently.
- 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, and this is the path where cash-out is clearly published, at up to 60% loan-to-value.
- Equity sets the ceiling, not the qualification. Home equity decides how much you can borrow. Your statements decide whether you qualify.
- Documentation still applies. The program skips traditional personal-income documentation, pay stubs and employment verification. It does not skip statements, an appraisal or credit review.
Why High Equity and Low Income Get Declined Elsewhere
Income-based underwriting asks one question: does your reported income carry the payment? A retiree living on a portfolio, a founder who just sold a business, or someone who received an inheritance may have seven figures in the bank and a small number on a tax return. The debt-to-income test sees only the small number.
The home itself may be nearly paid off, which is the high-equity half of the story. That equity does not help much with a lender who needs income. It lowers the lender’s collateral risk, but it does not prove the borrower can carry a payment.
Asset-based mortgages fix the mismatch. They qualify the borrower on what is in the accounts and set aside the question of paychecks. Across our wholesale network, this is the main reason income-light, asset-rich borrowers get matched to these programs. Lendmire’s asset-based mortgage programs are built for that borrower profile.
One scope note: Lendmire arranges this consumer program through select lenders in states where it is licensed for consumer lending: Alabama, California, Colorado, Florida, Georgia, Indiana, Michigan, Montana, New Mexico, North Carolina, Ohio, Pennsylvania, Tennessee, Texas, Virginia and Washington.
What Does “Best” Mean for This Borrower?
No single program is best for everyone. The best program for your situation depends on five variables, and a broker who sees many lenders’ guidelines can weigh them together:
1. Where your wealth sits. Cash, brokerage and savings point one way. Retirement accounts and real estate point another.
2. How much cash you want out. Cash-out leverage is lower than purchase leverage on every published path.
3. Loan size. The two paths have different ceilings and floors.
4. Credit and housing history. The floors differ by path.
5. Whether you have any documented income. Even a small amount changes the options.
If an article ranks lenders for you, it is answering a different question. The lenders that write these loans, and the terms they offer, vary by file. What stays fixed is the structure of the two paths, which the next section compares.
The Two Paths Compared
A borrower is qualified on one path at a time, and the figures never blend. Every number below is a ceiling or a floor, never an offer, and all of it is subject to underwriting.
| Factor | Asset Qualifier | Asset Depletion |
|---|---|---|
| How you qualify | Assets cover the whole loan | Assets become monthly income |
| Income documented | None | Derived from assets |
| Refinance leverage | Up to 75% on a refinance | 80% rate-and-term, 60% cash-out |
| Cash-out | Set by lender, not published | 60% on primary, second home or investment |
| Loan amounts | Up to $4,000,000 | $125,000 to $3,500,000 |
| Credit | 600 minimum | Lender’s matrix |
| Retirement accounts | 90% under 59½, 100% after | 70% at any age |
The leverage figures in the table need their occupancy attached. On the qualifier path, up to 80% applies to a purchase and 75% to a refinance, on a principal residence or second home. An investment property is limited to 65% on a purchase or rate-and-term refinance and 60% on a cash-out refinance.
Two points deserve emphasis. First, cash-out proceeds never count as qualifying assets on either path. Second, the qualifier path’s cash-out terms are set lender by lender and are not published, so any quoted figure for that case should be treated as a question for the broker rather than a promise.
How the Asset Qualifier Path Works, Step by Step
This path suits the borrower whose liquid balances are large enough to cover the entire loan. It is the cleanest fit for a retiree or a recent seller of a business with a pile of seasoned cash.
Step one: count the assets. Brokerage accounts, certificates of deposit, money market and savings count at 100%. A 401(k) or IRA counts at 90% under age 59½ and at 100% at 59½ or older. Accounts combine.
Step two: compare the total to the loan. The usable total must equal or exceed the whole loan amount. Here is the illustrative shape: an $800,000 loan, with $330,000 in brokerage accounts (100% counts $330,000), $300,000 in a 401(k) held under 59½ (90% counts $270,000), and $200,000 in savings (100% counts $200,000). That is $800,000 of usable assets, so the loan is reviewed on assets alone. The lender’s own calculation governs.
Step three: season the money. The program looks for 60 days of seasoning and two months of statements for each qualifying account. The lender reviews where the funds came from.
Step four: credit and the property. A 600 minimum score applies, with a housing history of 0x30x12. One 30-day late in the last twelve months is considered case by case. An appraisal sets the value, and title review follows.
Reserves are not required at or below 75% loan-to-value. Above that, the lender sets them. No employment or income is documented, and the ability-to-repay review rests on the assets.
How the Asset Depletion Path Works
This path turns assets into a monthly income number. The program divides usable assets by 60 months. The result then carries the housing payment and your other debts through the debt-to-income test.
The haircuts are steeper here than on the qualifier path. Cash accounts and certificates of deposit count at 100%. Securities count at 80%. Retirement accounts count at 70% at any age. Real-estate equity counts at 60%.
Here is the allowed example. Suppose $1,500,000 sits in securities (80% counts $1,200,000) and $300,000 sits in cash (100% counts $300,000). The usable total is $1,500,000. Divided by 60 months, that is $25,000 of monthly qualifying income. That figure then has to carry the housing payment and other debts through the debt-to-income test. The illustration is simplified, and the lender’s own math governs.
There are minimums. Qualified assets must be at least the lesser of $1,000,000 or 1.25 times the loan balance. When asset depletion is the only income source, assets can never be below $250,000 liquid. Statements must be at least 120 days old at application, plus the most recent statement within 45 days. Funds from the sale of a business, an inheritance or a legal settlement are excused from that seasoning.
On this path, credit follows the lender’s score and loan-amount matrix. A housing event needs 4 years of seasoning, and multiple bankruptcies are not eligible. A first-time investor on this path needs a 700 score. No reserve months are published.
Where Home Equity Fits (and Where It Does Not)
Equity does two jobs in a cash-out refinance. It sets the maximum loan, and it determines how much cash can come out. It does not, by itself, qualify you.
The math is simple. On a cash-out refinance of a principal residence or second home on the depletion path, the loan can reach 60% of the appraised value. That means you need to keep at least 40% equity after the refinance. The same 60% ceiling applies to an investment property on a cash-out refinance on this path. Existing mortgage balances come out of that ceiling first, and what remains is the cash you receive.
That is why a high-equity borrower often gets the most from this program when the property is lightly mortgaged. A home with a small balance leaves more room under the cap. A home with a large balance leaves little, no matter how big the portfolio is.
Home equity on a property you own can also count as an asset at 60%, but only on the depletion path and only as real-estate equity. It does not substitute for liquid balances.
Low Income Versus No Income
Many articles treat these as the same case. They are not. If you have no documented income, qualification rests on assets alone. If you have some, the assets can add to it.
On the depletion path, asset-derived income may supplement documented income up to a 45% debt-to-income ratio. When it supplements, the minimum-assets rule is waived. So a borrower with modest pension income and a mid-size portfolio, who falls short of the asset minimums, may still be reviewed on a supplemental basis.
Where the Rule Breaks: Edge Cases
Most files follow the percentages above. These do not.
Privately held stock. A founder’s route is documented liquid assets: seasoned proceeds from a sale or conversion, cash, public securities and retirement accounts at their haircuts.
Crypto, metals and collectibles. These are not published as eligible on either path. The documented route is converting them into a seasoned cash balance in a regulated account, with the lender reviewing the source of funds.
Other ineligible items on the depletion path. 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. Pledged or borrowed funds do not count on either path.
Business accounts. Only the borrower’s ownership share is considered, and the rest is not published as eligible.
Cash-out proceeds as assets. They never count toward qualifying. A borrower cannot refinance, then use the cash to qualify for the same loan.
Investment property. The depletion path can finance an investment property, with a lower leverage ceiling. Those loans are business-purpose. Under Regulation Z, credit extended primarily for a business purpose is exempt from the consumer-credit rules. How that exemption plays out varies across rules, as an ABA Banking Journal compliance discussion points out, because the purpose of the credit is the deciding question. The official Regulation Z commentary adds that the creditor decides case by case, with no precise test. In practice, the lender will document how the property is used.
The Cost Question and Who Should Skip This
Pricing is not covered here, because it depends on the lender, the file and the structure. What a borrower should weigh instead is the shape of the commitment.
A cash-out refinance replaces your current mortgage with a larger one. That raises the monthly obligation. If your documented income is thin, the portfolio has to keep supporting that payment for years, and a market drop that shrinks the portfolio can shrink your cushion. For a depletion-path borrower, the fact that securities count at only 80% of their value is a reminder that the lender already discounts for volatility.
This program is probably the wrong tool in a few cases:
- Your wealth is mostly illiquid, such as private company shares or real estate you cannot sell.
- You need more cash than 60% of value allows on the depletion path.
- You already hold a mortgage you value, and a cash-out would replace it on worse terms. In that case a separate second-lien product may suit you better, and a broker can compare it.
- The cash is for a purpose the portfolio could simply fund directly.
One practical note on proceeds: they are loan funds, not earnings. Tax treatment varies; consult a qualified professional.
What to Gather Before You Apply
Preparation is where most files are won or lost. Lenders in the network expect documents that prove assets, not income.
- Two months of statements for every account you plan to use (qualifier path).
- Statements at least 120 days old, plus the latest within 45 days (depletion path).
- Proof of age for retirement accounts, if you are relying on the 100% treatment at 59½ or older.
- Closing or settlement paperwork for a business sale, inheritance or legal settlement, if those funds are part of the picture.
- The current mortgage statement, hazard insurance and property details.
- A list of any accounts in a trust, company or another person’s name.
Which Route Fits Which Borrower?
| Borrower profile | Likely fit |
|---|---|
| Cash and brokerage cover the loan | Asset qualifier |
| Large portfolio, modest loan need | Asset depletion |
| Mostly retirement accounts, 59½ or older | Asset qualifier |
| Mixed assets plus some pension income | Depletion, supplemental |
| Mostly private stock or crypto | Convert to cash first |
Key Terms Defined
Asset qualifier: a path where eligible assets, after the credit percentages, must equal or exceed the whole loan.
Asset depletion: a path where usable assets divided by 60 months become a qualifying monthly income.
Haircut: the share of an account’s balance that does not count toward qualifying.
Seasoning: the time funds must sit in an account, or statements must age, before they count.
Cash-out refinance: a new mortgage that pays off the old one and returns the difference as cash.
Loan-to-value: the loan amount divided by the appraised value of the home.
Where to Go From Here
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.
Frequently Asked Questions
Can high equity alone qualify me for an asset-based cash-out refinance?
No. Equity sets how much the property can support, not whether you qualify. On either path, the lender looks at your documented assets and credit. The depletion path caps a cash-out refinance at 60% loan-to-value, so equity matters most for sizing.
Does privately held company stock count as an asset?
No. Privately held company stock is not an eligible asset on either path. If you sold your company, the route is to document the proceeds as a seasoned cash balance. The depletion path excuses sale-of-business funds from the usual statement seasoning, subject to underwriting.
How is a retirement account treated?
It depends on the path. The qualifier path counts a 401(k) or IRA at 90% under age 59½ and 100% at 59½ or older. The depletion path counts retirement accounts at 70% at any age. That difference can decide which path fits.
Do cash-out proceeds count toward qualifying?
No. Cash-out proceeds never count as qualifying assets on either path. The qualifying balances have to exist before the loan, and the lender’s own calculation governs.
Is this a no-documentation loan?
No. Every file is fully underwritten. The program asks for no traditional personal-income documentation, pay stubs or employment verification, but it requires statements, an appraisal and credit review. Approval is never promised, and every figure here is subject to underwriting.
Investors weighing their equity options can start with 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. CFPB, Regulation Z § 1026.3
2. ABA Banking Journal, compliance question of the month
3. eCFR, Regulation Z Supplement I
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 With a High Debt-to-Income Ratio · Best Asset-Based Cash-Out Refinance Program for Retirees Living on Fixed Income · Best Asset-Based Cash-Out Refinance Program Using a Brokerage Account to Qualify
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.