The Quick Read: The program that fits depends on your assets and your property, but for cash out the asset depletion path is the one with published leverage, because it turns your eligible savings and investments into a monthly qualifying income through select programs, subject to underwriting. You do not hand over tax returns, pay stubs or employment verification, but every file is still fully underwritten, and your assets are documented with statements.
- Two paths exist. The asset qualifier path covers the whole loan with assets. The asset depletion path divides usable assets by 60 months to create income.
- Cash-out leverage is published for depletion. It is up to 60% loan-to-value on a principal residence, a second home or an investment property, subject to underwriting.
- Assets are discounted. On the depletion path, securities count at 80%, retirement accounts at 70% and real-estate equity at 60%.
- Cash-out proceeds never count as qualifying assets, and privately held company stock is not eligible on either path.
What Is an Asset-Based Cash-Out Refinance?
An asset-based cash-out refinance replaces your current mortgage with a larger one and pays you the difference in cash. The lender judges the loan on your assets instead of your paycheck. It suits people whose balances are large and whose documented income is small or gone.
That describes retirees, people who just sold a business, and people who received an inheritance or a legal settlement. It also describes early-retired professionals and households that live off a portfolio. A tax return for these borrowers often shows little income, even though the borrower is financially strong.
Lendmire is a mortgage broker. It does not lend. It places files with select lenders in a wholesale network and matches the scenario to the program. Lendmire’s asset-based mortgage programs are consumer mortgage lending licensed in 16 states, and the figures here are ceilings and floors, never offers.
How Underwriting Treats a Borrower With No Paycheck
The lender does not skip underwriting. It swaps the evidence. Here is the sequence, step by step.
1. You choose a path. You qualify on one path at a time, never a blend of the two.
2. You document assets. Statements replace pay stubs, W-2s and tax returns.
3. The lender applies credit percentages. Each account counts at a share of its balance, and some accounts do not count at all.
4. The lender tests the result. On the qualifier path, usable assets must equal or exceed the entire loan. On the depletion path, derived monthly income must carry the housing payment and your other debts.
5. The lender reviews the rest of the file. Credit, housing history, appraisal and title all still apply.
So a missing paycheck is not an automatic no. The question becomes whether your assets can stand behind the debt, and the lender answers it from statements instead of employment records.
The Two Paths Side by Side
The two paths work differently, and the figures below belong to each path separately. Do not mix them. All of it is through select programs and subject to underwriting.
| Factor | Asset Qualifier Path | Asset Depletion Path |
|---|---|---|
| How it works | Assets alone cover the entire loan | Usable assets ÷ 60 months = income |
| Income documented | None | Derived income, tested against debts |
| Loan amounts | Up to $4,000,000 | $125,000 to $3,500,000 |
| Refinance leverage | Up to 75% on a principal residence or second home | 80% rate-and-term on a primary or second home |
| Cash-out leverage | Set by the lender, not published | 60% on a primary or second home; 60% on an investment property |
| Property types | Principal residence, second home | Principal residence, second home, investment property |
| Seasoning | 60 days; two months of statements per account | Statements 120+ days old, plus one within 45 days |
| Credit | 600 minimum score | The lender’s score and loan-amount matrix |
On the depletion path, an investment property also allows up to 65% on a rate-and-term refinance. The rest of this article leans on the rows that matter most for cash-out.
Which Path Fits a Cash-Out?
For a cash-out, the depletion path is the cleaner fit. It publishes a cash-out ceiling of 60% loan-to-value on a principal residence, a second home or an investment property. The qualifier path’s cash-out terms are set lender by lender and are not published, so no one can quote you a figure for them in advance.
The qualifier path still matters. If your assets are large enough to equal the whole loan, it removes the income calculation entirely. That works best when you want a rate-and-term refinance or a purchase, where the published leverage is higher. For a cash-out, a broker asks the network whether any lender will write it on that path and at what leverage.
The tradeoff is simple. The qualifier path needs assets equal to the full loan. The depletion path needs assets large enough to produce income that clears a debt-to-income test. Which one is easier depends on how large your loan is compared to your balances.
How Each Account Is Counted
Lenders do not take your balances at face value. Each type of account counts at a percentage. The two schedules are different, so read them as two separate tables.
Asset qualifier path: share of the balance that counts.
| Account type | Counts at |
|---|---|
| Brokerage accounts | 100% |
| Certificates of deposit | 100% |
| Money market | 100% |
| Savings | 100% |
| 401(k) and IRA, under age 59½ | 90% |
| 401(k) and IRA, 59½ or older | 100% |
Accounts combine, so you can add them together toward the total loan.
Asset depletion path: share of the balance that counts.
| Account type | Counts at |
|---|---|
| Cash accounts | 100% |
| Certificates of deposit | 100% |
| Securities | 80% |
| Retirement accounts, any age | 70% |
| Real-estate equity | 60% |
Several asset types do not count on the depletion path. These are 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.
Two Worked Examples
These examples use the program’s own percentages. The lender’s calculation governs, and every file is subject to underwriting.
Qualifier path. Say you want an $800,000 loan. You hold $330,000 in brokerage accounts, which counts at 100%, or $330,000. You hold $300,000 in a 401(k) and are under 59½, which counts at 90%, or $270,000. You hold $200,000 in savings, which counts at 100%, or $200,000. Together that is $800,000 of usable assets, which equals the loan. The file is reviewed on assets alone, with no income documented.
Depletion path. Say you hold $1,500,000 in securities, which counts at 80%, or $1,200,000. You also hold $300,000 in cash, which counts at 100%, or $300,000. Usable assets come to $1,500,000. Divided by 60 months, that is $25,000 of monthly qualifying income. That income then has to carry the new housing payment and your other debts through the debt-to-income test.
That second step is where a cash-out is judged. A larger loan means a larger payment, so the derived income has to cover more. The math can pass on your current loan and fail on the bigger one.
Minimum Assets and Credit on the Depletion Path
The depletion path sets a floor on assets. You need qualified assets of at least the lesser of $1,000,000 or 1.25 times the loan balance. When asset depletion is your only income source, you also need at least $250,000 in liquid assets.
There is one useful exception. Asset-derived income can supplement documented income, such as a pension, up to a 45% debt-to-income ratio. When it supplements, the minimum-assets rule is waived.
Credit matters on both paths. The qualifier path publishes a 600 minimum score. The depletion path follows the lender’s score and loan-amount matrix. A first-time investor on the depletion path needs a 700 score. Housing history is expected at 0x30x12, meaning no 30-day lates in twelve months, and one late in that window is considered case by case. Multiple bankruptcies are not eligible. A housing event needs four years of seasoning on the depletion path. No program here promises approval.
Investment Property: Where Business Purpose Comes In
Only the depletion path covers an investment property, and that loan is business-purpose. Business-purpose means the money is for a rental, not for your own home. The CFPB’s Truth in Lending exam summary treats credit to acquire or improve non-owner-occupied rental property as business-purpose credit. The Federal Register text of the ability-to-repay rule likewise treats investment-purpose loans as business-purpose.
Do not read that as a free pass. Loans on a principal residence or second home are consumer mortgages, and standard consumer mortgage disclosures apply. On an investment property, cash-out leverage is 60% on this path, and the lender still reviews your credit, assets and the appraisal.
Edge Cases Where the General Rule Breaks
Privately held company stock. It is not eligible 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 credit percentages.
Crypto, metals, collectibles and pledged funds. These are not published as eligible on either path. The documented route is converting them to a seasoned cash balance in a regulated account. The lender reviews the source of those funds.
Sale-of-business, inheritance and settlement money. On the depletion path, these funds are excused from the 120-day statement seasoning. This helps a seller who just closed a deal. The funds still have to be documented in a regulated account.
Cash-out proceeds. They never count as qualifying assets on the depletion path. You cannot borrow the cash and then count it as the reserve that justifies the loan.
Stock options and unvested RSUs. These do not count on the depletion path, even if they are worth a lot on paper. They become useful only after they are exercised or vested and converted to a seasoned balance.
Borrowed funds. Money from a loan or a pledged account is not published as eligible on either path.
Which Borrower Fits Which Path
- Retiree with a large portfolio and a modest loan. The qualifier path may work if the combined credit percentages reach the full loan amount. A retiree over 59½ gets 100% credit on retirement balances there.
- Retiree who wants cash out against a home. The depletion path fits better, since its cash-out leverage is published.
- Business seller with a fresh cash balance. The depletion path’s seasoning exception for sale proceeds helps, and the minimum-assets test is usually easy with that much cash.
- Early-retired professional living on a portfolio. Securities count at 80% on the depletion path, so the income math often decides the file.
- Between jobs, with strong savings. Either path can fit. The size of the loan against your liquid balances decides.
- Borrower with a part-time pension. Derived income can supplement documented income up to a 45% debt-to-income ratio.
What to Prepare
You skip traditional personal-income documentation, pay stubs and employment verification. You do not skip paper. Expect these items:
- Statements for every account you want counted, with the seasoning the path requires.
- A credit report review and your housing payment history.
- Property documents, including insurance and title.
- A source-of-funds explanation for any large recent deposit.
- An appraisal, which sets value for the loan-to-value test.
Pull statements early. Seasoning is where files stall, because an account that is too new may not count yet.
Asset-Based Versus Other Ways to Reach Your Equity
Each of these other options follows its own rules. The descriptions below are about those programs, not this one.
| Option | How it qualifies you | Fit |
|---|---|---|
| HELOC | Lender’s own income and debt review | Needs documented income |
| Reverse mortgage | Age and equity under that program’s rules | Older homeowners only |
| Agency conventional (Fannie Mae, Freddie Mac) | Documented income, including retirement distributions | Works if income is documented |
| Bank statement loan | Deposits show income | For borrowers with business deposits |
| DSCR loan | Property-level rental income covering the payment | Business-purpose rentals only |
| Selling assets | No loan at all | Avoids debt, may trigger taxes |
Agency conventional can be the simpler route when your retirement income is documented and steady. Asset-based programs make sense when it is not, or when your assets are far larger than your income.
Risks and When Not to Do It
A cash-out raises your debt. If you have no paycheck, the portfolio is the only thing paying that debt. Consider these risks before you apply.
- Market drops. A portfolio-funded household can see its balances fall when markets do. A bigger mortgage payment does not shrink with them.
- Drawdown order. If you pay the loan from the same accounts that qualified you, balances decline over time. Plan which accounts you will draw first.
- Selling may be simpler. If you only need the cash once, selling an asset could cost less than carrying a larger mortgage for years.
- Real-estate equity counts at only 60%. On the depletion path, home equity is a weak source of qualifying assets.
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.
How to Choose the Right Program
There is no single winner. The best program for your situation depends on your assets, your credit, the property type, how much cash you need and how much leverage you can accept. Different lenders in a wholesale network write this differently.
A broker earns its place here. Lendmire shops multiple wholesale lenders, checks which one will accept your account types, and matches your scenario to the program. Ask about these five things first:
1. Which path the lender treats as the right fit for a cash-out.
2. How each of your accounts is credited.
3. The seasoning rules for your statements.
4. The leverage ceiling for your property type and occupancy.
5. Whether the lender’s matrix fits your credit score.
Key Terms Defined
Asset qualifier path: The route where your eligible assets, after credit percentages, equal or exceed the entire loan, so no income is documented.
Asset depletion path: The route where usable assets are divided by 60 months to create a monthly qualifying income that runs through the debt-to-income test.
Cash-out refinance: A new, larger mortgage that pays off the old one and returns the difference to you as cash.
Loan-to-value (LTV): The loan amount divided by the property’s value, shown as a percentage.
Seasoning: The period an account must show on statements, or the age of the funds, before a lender will count it.
Debt-to-income (DTI): Your monthly debts divided by your monthly income, which the depletion path applies to derived income.
Business-purpose loan: A loan made to buy, improve or refinance a rental, not to finance your own home.
Frequently Asked Questions
Does stock in my private company count toward qualifying?
The route is documented liquid assets. If you sell or are bought out, the proceeds become a seasoned cash balance in a regulated account. On the depletion path, sale-of-business funds are excused from the 120-day statement seasoning, and the lender reviews the source.
Can I use the cash I pull out to meet the asset requirement?
No. On the depletion path, cash-out proceeds never count as qualifying assets. Your assets have to qualify you before the cash is paid out. That keeps the loan from supporting itself.
What leverage can I expect on a cash-out without a job?
On the asset depletion path, up to 60% loan-to-value on a cash-out of a principal residence, a second home or an investment property, subject to underwriting. On the asset qualifier path, whether cash-out is allowed, and at what leverage, is set by the lender and is not published.
Which states is this available in?
The program’s consumer mortgage lending is licensed in 16 states: Alabama, California, Colorado, Florida, Georgia, Indiana, Michigan, Montana, New Mexico, North Carolina, Ohio, Pennsylvania, Tennessee, Texas, Virginia and Washington. Availability on a given file still depends on the property, the lender and underwriting.
Is this a no-documentation loan?
No. You skip traditional personal-income documentation, pay stubs and employment verification, but the file is fully underwritten. The assets are documented with statements, and credit, housing history, appraisal and title are all reviewed.
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. Programs change, every file is underwritten individually, and nothing here is a commitment to lend.
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 (NMLS# 2371349) is a mortgage brokerage serving self-employed and high-net-worth borrowers in 16 states. Bank statement, P&L-only, 1099-only and asset-based mortgages are arranged through wholesale lending channels; Lendmire brokers the financing and the lender underwrites each application. 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 – Truth in Lending Act/Regulation Z exam summary
2. Federal Register – Ability-to-Repay and Qualified Mortgage Standards final rule
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 Cash Out a Texas Home on an Asset Depletion Refinance? · How Much Cash Can a New Mexico Homeowner Take Out on an Asset Depletion Refinance? · How to Document a Wire From a Sale Before an Asset-Based Mortgage
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.