The Quick Read: The best asset-based program for you depends on which of two paths fits your balance sheet: assets that cover the whole loan, or assets that convert into monthly qualifying income. Both qualify you on documented liquid assets rather than tax returns, pay stubs or employment verification, and every file is still fully underwritten. Cash-out is where the two paths split sharply, so that is where most of the choosing happens.
- 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: the depletion path publishes 60% on a principal residence, second home or investment property. The qualifier path’s cash-out terms are set by the lender and are not published.
- Cash-out proceeds never count as qualifying assets on the depletion path.
- Privately held company stock is not eligible on either path.
All figures here are ceilings and floors through select programs, subject to underwriting. They are not offers.
What Is an Asset-Based Cash-Out Refinance?
An asset-based cash-out refinance is a way of qualifying, not a type of property. The new loan pays off your current mortgage and any other liens, and you receive the net proceeds. The lender looks at your documented cash, brokerage accounts, certificates of deposit and retirement balances in place of employment income.
Your assets are not sold and not pledged. They are counted. The loan is still secured by the property.
The industry uses “asset qualifier,” “asset depletion,” “asset utilization” and “asset-based” loosely, and often interchangeably. This article uses two names only. “Asset qualifier” means assets cover the loan. “Asset depletion” means assets are converted into income. Lendmire’s asset-based mortgage program is built around that same split. Lendmire is a broker: it places these files with select lenders in its wholesale network, and the lenders review and approve.
The program fits borrowers whose balances are large and whose documented income is not. That includes retirees, people who sold a business, recipients of an inheritance or settlement, early-retired professionals and households living off a portfolio.
How Do the Two Paths Compare?
The qualifier path asks whether your eligible assets are at least as large as the loan. The depletion path asks whether your assets, turned into monthly income, can carry the payment and your other debts. You are qualified on one path at a time, and the tables never blend.
| Factor | Asset qualifier | Asset depletion |
|---|---|---|
| Core test | Usable assets ≥ full loan | Usable assets ÷ 60 months = income |
| Income documented | None | Derived income, run through DTI |
| Loan amounts | Up to $4,000,000 | $125,000 to $3,500,000 |
| Refinance leverage | Up to 75% | 80% rate-and-term on a primary or second home |
| Cash-out leverage | Lender-set, not published | 60% on all three occupancy types |
| Investment property | Not published | Up to 65% purchase or rate-and-term, 60% cash-out |
| Credit | 600 minimum | The lender’s score and loan-amount matrix |
Investment property is available only on the depletion path, and the loan is business-purpose. That is the usual route for an investor whose liquidity is stronger than the rent or the tax returns.
Which Liquid Assets Count, and for How Much?
On both paths, the share of each balance that counts depends on the account type. The percentages differ by path, so the path comes first.
| Asset | Qualifier path | Depletion path |
|---|---|---|
| Brokerage accounts | 100% | Securities at 80% |
| Certificates of deposit | 100% | 100% |
| Money market, savings | 100% | Cash accounts at 100% |
| 401(k) or IRA | 90% under 59½, 100% at 59½ or older | 70% at any age |
| Real-estate equity | Not listed | Not listed |
Accounts combine. A borrower can stack brokerage, savings and retirement balances to reach the loan amount.
Some assets do not count at all. 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 are not eligible. Cryptocurrency, precious metals, collectibles and borrowed or pledged funds are not published as eligible on either path. The documented route for those holdings is converting them to a seasoned cash balance in a regulated account, with the source reviewed by the lender.
Privately held company stock is not an eligible asset on either path. A founder or shareholder qualifies through documented liquid assets: seasoned proceeds from a sale or buyout, cash, public securities and retirement accounts at their percentages.
Home equity cannot serve as the qualifying asset on a federal ability-to-repay basis. Per the CFPB’s Qualified Mortgage explainer, a lender must consider and verify income or assets, other than the value of the property securing the loan.
What Does the Math Look Like on Each Path?
Both examples below are illustrative. The lender’s own calculation governs.
Qualifier path. Picture an $800,000 loan. The borrower holds $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 equals the loan, so the file is reviewed on assets alone, subject to underwriting.
Depletion path. Take $1,500,000 in securities (80% counts, so $1,200,000) plus $300,000 in cash (100% counts, so $300,000). Usable assets are $1,500,000. Divided by 60 months, that is $25,000 of monthly qualifying income. That income then carries the housing payment and other debts through the debt-to-income test.
Notice what the depletion example does not do. It does not actually use up or sell your securities. The assets stay where they are.
How Does Cash-Out Actually Work on This Path?
Cash-out is where most files go wrong, so read this section twice. On the depletion path, cash-out tops out at 60% loan-to-value for a principal residence, second home and investment property alike. Purchases and rate-and-term refinances run higher: 80% on a primary or second home, 65% on an investment property.
On the qualifier path, the published refinance ceiling is 75%. Whether cash-out proceeds are allowed there, and at what leverage, is set by the lender. Do not assume a number. A broker shopping the network can tell you which lenders write it.
The trap is the proceeds. Cash-out proceeds never count as qualifying assets on the depletion path. A borrower who plans to pull $300,000 out and then use it as the asset pool has the sequence backwards. The pool has to exist, seasoned, before the refinance.
Business-purpose treatment matters on an investment property. Because the loan is for a rental, it is reviewed differently from a standard owner-occupied mortgage. Principal residence and second-home loans are consumer mortgages, and the usual consumer disclosures apply to those.
What Are Seasoning and Statement Rules?
Statements are how the assets are documented. The loan is not “no-doc”: you skip traditional personal-income documentation, pay stubs and employment verification, and you supply account statements instead.
- Qualifier path: 60 days of seasoning and two months of statements for each qualifying account. Reserves are not required at or below 75% loan-to-value. Above that, the lender sets them.
- Depletion path: statements 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. No reserve months are published.
Large recent deposits are the usual snag. Money that appeared last month from an unexplained source triggers a sourcing request. Gather the paper trail before the file goes in, not after.
What Credit and Minimum Assets Do You Need?
The qualifier path publishes a 600 minimum score. The depletion path follows the lender’s matrix, which ties score to loan amount. A first-time investor on the depletion path needs 700.
Housing history is 0x30x12. One 30-day late in the past twelve months is considered case by case. Multiple bankruptcies are not eligible. A housing event needs four years of seasoning on the depletion path.
The depletion path also sets minimum assets: the lesser of $1,000,000 or 1.25 times the loan balance, and never below $250,000 liquid when depletion is your only income source. Asset-derived income may supplement documented income up to a 45% debt-to-income ratio, and when it supplements, the minimum-assets rule is waived. That helps a retiree with a pension and a mid-sized portfolio.
How Do You Judge the Best Program for Your Situation?
The best program for your situation is the one whose cash-out terms, asset rules and seasoning fit your actual statements. Across a wholesale network, lenders differ on exactly the points that decide a cash-out file, so a broker that shops several can match the scenario instead of forcing it.
Use this checklist:
1. Path fit. Do your eligible assets cover the whole loan, or are they better used as income?
2. Cash-out treatment. Does the lender allow cash-out on the path you need, and at what leverage?
3. Asset mix. Is your wealth in brokerage, cash and CDs, or in categories that do not count?
4. Seasoning. Are your accounts old enough, or do recent deposits need sourcing?
5. Occupancy. Principal residence, second home or investment property changes the available path and leverage.
6. Credit and housing history. Check your score against the lender’s matrix and your late-payment history.
Who Should Look Elsewhere?
Asset-based is not the answer for everyone. The lender’s matrix and your own balance sheet decide.
- A borrower whose strength is the property. If rent comfortably covers the debt, DSCR financing qualifies primarily on property-level rental income covering the payment, subject to lender guidelines. Select programs go below 1.00 coverage, with adjusted leverage and terms.
- A borrower whose strength is deposits. A self-employed owner with strong business cash flow may fit a bank statement program, which documents income through deposits.
- A borrower with thin liquidity. The depletion minimums rule out files below the asset floors.
- A borrower whose wealth is private company stock, crypto or collectibles. Convert to seasoned cash first.
Investor discussions show the same sorting. On BiggerPockets, investors without traditional employment income ask about options for people with no income but a lot of cash, and the answers point toward DSCR and asset-based structures, with trade-offs in pricing and appraisal method.
Key Terms Defined
Asset qualifier: a path where eligible assets, after percentages, must equal or exceed the whole loan.
Asset depletion: a path where usable assets divided by 60 months become monthly qualifying income.
Seasoning: the time funds have sat in an account, shown by statements.
Haircut: the share of a balance that does not count, such as the 20% off securities on the depletion path.
Debt-to-income (DTI): monthly debts, including the new housing payment, compared with qualifying income.
Cash-out refinance: a new loan that pays off existing liens and returns the net difference to you.
Frequently Asked Questions
Do I have to sell my investments to use this program?
No. The assets are counted, not sold or pledged. They stay in your accounts, though you must keep them there through underwriting, and the lender will want current statements.
Can I take cash out on the asset qualifier path?
It depends on the lender. The qualifier path’s published refinance ceiling is 75%, but whether cash-out is allowed and at what leverage is set by the lender and is not published. A broker can ask the network which lenders write it.
Can I use my retirement accounts?
Yes, at a reduced share. On the qualifier path, 401(k) and IRA balances count at 90% under age 59½ and 100% at 59½ or older. On the depletion path, retirement accounts count at 70% at any age. All of it is subject to underwriting.
Is this a no-doc loan?
No. You skip traditional personal-income documentation, pay stubs and employment verification, but the assets are fully documented with statements, and credit, title and the property are reviewed like any other loan.
Can I use it for a rental property?
Yes, on the depletion path only. Investment property is available up to 65% on a purchase or rate-and-term refinance and 60% on a cash-out, and the loan is business-purpose. A business-purpose loan is generally treated differently from a standard consumer mortgage, and Regulation Z’s business-purpose exemption spells out how that classification works. Tax treatment varies; consult a qualified professional.
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. The program is available for consumer mortgage lending in 16 states: Alabama, California, Colorado, Florida, Georgia, Indiana, Michigan, Montana, New Mexico, North Carolina, Ohio, Pennsylvania, Tennessee, Texas, Virginia and Washington. This is not a commitment to lend.
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 broker licensed for consumer lending in 16 states. Bank statement, P&L-only, 1099-only and asset-based mortgages for self-employed and high-net-worth borrowers are arranged through wholesale lenders on primary residences, second homes and investment properties; every file is underwritten by the lender under its program guidelines. 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’s Qualified Mortgage explainer
2. BiggerPockets – No income but a lot of cash
3. CFPB – Regulation Z § 1026.3, Exempt transactions
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 Much Cash Can a New Mexico Homeowner Take Out on an Asset Depletion Refinance? · Can You Buy a Second Home in Indiana on Assets Instead of Income? · Can You Get an Asset-Based Mortgage on a Pennsylvania Condo?
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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- 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.