The Quick Read: It depends on two limits: on the asset depletion path, cash-out is capped at 60% loan-to-value on a principal residence, second home or investment property, and the new payment must also fit the debt-to-income test using income built from your assets, so the lower of the two limits sets your cash, subject to underwriting.
- The equity limit comes first. Take 60% of the home’s value, subtract what you owe, then subtract closing costs.
- The income limit can come first for some borrowers. Your usable assets are divided by 60 months to create qualifying income, and a bigger loan needs more of it.
- Cash-out proceeds never count as qualifying assets on the depletion path.
- Georgia adds no leverage cap of its own. Its main twist is a recording tax on the full new loan.
- Every figure here is a ceiling or floor through select programs, never an offer.
The Two Limits Behind Your Cash Number
Your cash is the smaller of two numbers. The first is the equity ceiling. The second is the income ceiling. Most online calculators show only the first, which is why their answers often miss what a lender will actually approve.
Start with the equity ceiling. Across the wholesale network Lendmire works with, the asset depletion path allows up to 60% loan-to-value on a cash-out refinance. That applies to a principal residence, a second home or an investment property, through select programs. Loan-to-value (LTV) is the new loan divided by the home’s appraised value. Your cash-out is that new loan minus your payoff, minus closing costs and prepaid items.
The income ceiling works differently. The lender converts your eligible assets into a monthly income figure. Then it checks whether that income carries the new housing payment plus your other debts. A larger cash-out means a larger loan and a larger payment. So the income test can stop you before the equity test does.
Loan amounts on the depletion path run from $125,000 to $3,500,000, subject to underwriting. A small payoff on a high-value home can leave room under the equity cap and still run into the income cap.
How Assets Become Income
Asset depletion is a qualifying convention, not a withdrawal plan. You keep your accounts. The lender counts a share of each balance, adds the results, and divides by 60 months.
Each asset type counts at a different percentage on this path:
| Asset type | Share that counts |
|---|---|
| Cash accounts | 100% |
| Certificates of deposit | 100% |
| Securities | 80% |
| Private stock | 75% |
| Retirement accounts | 70% at any age |
| Real-estate equity | 60% |
Some assets do not count at all on this path. These include custodial accounts, deferred compensation, escrow accounts, foreign funds, cash on hand, stock options and non-vested restricted stock units. Cryptocurrency, precious metals and collectibles are not published as eligible either. The documented route is converting them into a seasoned cash balance in a regulated account, with the lender reviewing the source.
Here is the illustrative arithmetic. Say you hold $1,500,000 in securities, which count at 80%, or $1,200,000. Add $300,000 in cash at 100%. That is $1,500,000 of usable assets. Divided by 60 months, you get $25,000 of monthly qualifying income. That income must then carry the housing payment and your other debts. The lender’s own calculation governs, not this example.
The qualifying pool has a floor. On the depletion path, qualified assets must be at least the lesser of $1,000,000 or 1.25 times the loan balance. When asset depletion is your only income source, the pool must never fall below $250,000 in liquid assets. Asset-derived income can also supplement documented income, up to a 45% debt-to-income ratio. In that case, the minimum-assets rule is waived.
Documentation is real. Statements must be at least 120 days old at application, plus one statement dated within 45 days. Funds from the sale of a business, an inheritance or a legal settlement are excused from that seasoning. “No income documentation” never means no documentation.
Which Limit Binds First? Two Scenarios in Percentages
Run the equity ceiling in percentages, not dollars. Say your Georgia home carries an existing mortgage equal to 45% of its value. The depletion cap is 60%. That leaves 15% of the home’s value as gross room, before closing costs and prepaid items come out. Your net cash is smaller than that 15%.
Now change one thing. Say your existing mortgage equals 58% of value. The gap to the 60% cap is just 2% of value. Closing costs can erase most or all of it. The cash-out may be too small to justify the refinance.
Next, the income side. Picture a household with usable assets near the $1,500,000 shape from the example above. That produces $25,000 of qualifying income. A modest cash-out might fit easily under the debt-to-income limit. A large one, pushed toward the 60% cap on an expensive home, adds payment and eats the room. Here the income limit binds first, even though equity is plentiful.
Now flip the case. A borrower holds a large, liquid, cash-heavy pool and owes almost 60% of value. Income is plentiful, but the equity cap leaves almost nothing. Different borrower, different binding limit.
Many borrowers expect the opposite. They assume large assets mean large cash-out. Assets raise your income ceiling. They do nothing for the equity ceiling.
What Shrinks Your Cash
Several items come off before you see a dollar. Check this list before you plan around a number:
- Your payoff and any second liens. A HELOC or second mortgage paid at closing returns no cash to you.
- Closing costs and prepaid items. These come out of the proceeds or get financed within the loan.
- Appraised value. A lower appraisal lowers the 60% ceiling directly.
- Occupancy. The depletion-path cash-out cap is 60% on a principal residence, second home or investment property. The purchase and rate-and-term ceilings are higher, so the cash-out figure is the one to plan around.
- Credit. The depletion path follows the lender’s score and loan-amount matrix. A first-time investor on this path needs a 700 score. A housing event such as a foreclosure needs 4 years of seasoning, and multiple bankruptcies are not eligible. Housing history is reviewed at 0x30x12, with one late payment in twelve months considered case by case.
- The debt-to-income test. Non-QM lenders set their own thresholds. For context, the CFPB ATR/QM compliance guide covers the Ability-to-Repay and Qualified Mortgage rules. Ability-to-Repay generally applies to consumer-purpose mortgages, including non-QM loans, while business-purpose loans are generally exempt, so confirm with a qualified professional how the rules apply to your loan’s purpose.
- Georgia’s recording tax. Georgia levies an intangible recording tax on the full new note, not just the cash you take, so ask for that line early; tax treatment varies, so consult a qualified professional. The Georgia rules for the intangible recording tax set out the rate and cap mechanics, and the tax is administered by the Georgia Department of Revenue.
One more rule matters for planning. Cash-out proceeds never count as qualifying assets on the depletion path. You cannot take cash out and then use that cash to qualify for the same loan. Sequencing also matters. If you move or spend funds before application, the balance the lender counts shrinks, and so does your income figure.
The Other Path: Asset Qualifier
The asset qualifier path asks a different question. It does not convert assets into income. It asks whether your eligible assets cover the entire loan amount, with no employment or income documented.
Credit percentages differ here. Brokerage accounts, certificates of deposit, money market and savings count at 100%. A 401(k) or IRA counts at 90% under age 59½ and 100% at 59½ or older. Accounts combine.
Take the sanctioned shape. An $800,000 loan is supported by $330,000 in brokerage accounts, $270,000 from a $300,000 401(k) held under 59½, and $200,000 in savings. That counts $800,000 of usable assets, enough to qualify on assets alone.
On this path, refinances run up to 75% loan-to-value on a principal residence or second home, and loans reach $4,000,000. Whether cash-out proceeds are allowed here, and at what leverage, is set by the lender and is not published. So the honest answer is to ask for a file-specific review. This path requires 60 days of seasoning and two months of statements per qualifying account, and the credit floor is 600.
A borrower is qualified on one path at a time. Mixing the two tables is how people end up with wrong expectations.
Asset Depletion vs. DSCR for Investors
Asset depletion qualifies you, the borrower. A DSCR loan is reviewed for the property. Investors with strong portfolios and thin tax-return income may fit asset depletion. Investors whose rental income covers the payment may fit DSCR better.
DSCR loans are designed for non-owner-occupied investment properties. Because they are business-purpose investor loans, they are reviewed differently from a standard owner-occupied mortgage. Lendmire’s complete DSCR loans guide explains how coverage is measured. A DSCR file qualifies primarily on property-level rental income covering the payment, subject to lender guidelines. Programs below 1.00 coverage are available through select lenders in the network, though leverage and terms adjust.
Which fits depends on the property, occupancy, your goals and current lender guidelines. If the cash-out is on a rental you own, ask whether the DSCR route can supply more room than your assets can. If it is your own home and your income is mostly portfolio-based, asset depletion is likelier to fit. Large-balance borrowers weighing the same choice can also read Lendmire’s piece Can a Homeowner Take Cash Out on a Jumbo Refinance?.
Asset depletion is also not a single product. Trade explainers such as Benzinga’s asset depletion overview note it appears across conventional, jumbo and non-QM channels. Each channel sets its own divisor, haircuts and cash-out rules.
Who Fits and Who Doesn’t
Asset depletion tends to fit these borrowers:
- Retirees living on a portfolio rather than a paycheck.
- Sellers of a business with large cash balances.
- Recipients of an inheritance or legal settlement.
- Early-retired professionals with large brokerage accounts.
- Households whose balances are large and whose documented income is not.
It tends to fit poorly for these borrowers:
- Anyone whose wealth sits mostly in the home itself.
- Anyone whose balances are mostly in ineligible assets such as stock options or foreign funds.
- Anyone relying on pledged or borrowed funds.
- Anyone who needs the cash-out proceeds to qualify.
A bank statement program suits borrowers who document income with deposits. That is a different path from either asset-based one.
Key Terms Defined
Loan-to-value (LTV): The new loan amount divided by the home’s appraised value.
Haircut: The share of an asset’s balance a lender will not count, because the asset can lose value or is harder to liquidate.
Seasoning: The length of time funds have sat in your account, shown on statements, before a lender will count them.
Qualifying income: The monthly income figure a lender uses to test whether you can carry the payment, here derived from assets divided by 60 months.
Debt-to-income ratio (DTI): Your monthly debts, including the new housing payment, divided by your qualifying income.
Payoff: The balance of your existing mortgage and any other liens that must be cleared at closing.
Next Steps
Gather the documents first. You need statements for every account you plan to use, aged 120 days plus one within 45 days. Add your current mortgage statement, a list of other debts, and proof of ownership for any business or inheritance funds.
Then ask for a path-specific review. The same borrower can look strong on one path and borderline on the other. Georgia borrowers should also budget the recording tax on the entire new note, not just the cash-out.
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. Lendmire is a mortgage broker, and any placement is subject to underwriting through select lenders in its network. Call 828-256-2183 or request a quote.
Frequently Asked Questions
Can I take cash out and then use that cash to qualify?
No. On the depletion path, cash-out proceeds never count as qualifying assets. The lender counts only seasoned assets documented by statements. Cash that arrives at closing is not seasoned and does not raise your income figure.
Does my home’s equity count as an asset?
Not as the cash you take. Equity sets your leverage ceiling, which is 60% loan-to-value on a depletion-path cash-out. The qualifying pool is built from eligible accounts. Real-estate equity does appear on the depletion list at 60%, and underwriting decides how it applies to your file.
Do I have to sell or withdraw my investments?
No. The lender uses a calculation, not a withdrawal plan. You keep the accounts and the lender divides the counted balance by 60 months. Statements still must be documented and seasoned.
Does Georgia limit how much cash I can take out?
Georgia sets no cash-out leverage cap on this product that Lendmire is aware of. The practical Georgia item is the recording tax on the full new note, which raises your closing costs on a larger loan. Program ceilings, not state law, decide your cash.
Can I use this for cash-out on a rental property?
Yes, in some cases. The depletion path allows up to 60% loan-to-value on a cash-out for an investment property, subject to underwriting. Many rental owners find DSCR financing fits better, because it is reviewed on the property’s rental income rather than your personal assets.
For current guidelines and terms, see Lendmire’s asset-based mortgage programs page.
About Lendmire
Lendmire (NMLS# 2371349) is a mortgage broker licensed for consumer lending in 16 states. Scotsman Guide named Lendmire a Top Mortgage Workplace in both 2025 and 2026.
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References
1. CFPB ATR/QM compliance guide
2. Georgia Secretary of State, Rules 560-11-8
3. Benzinga, asset depletion mortgage overview
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 Do a Cash-Out Refinance on an Asset Depletion Loan? · How Much Can a Retiree Borrow on a Jumbo Loan Using Asset Depletion? · How Asset Depletion Income Is Calculated From Your Portfolio
Guides: Asset-Based Mortgage in Georgia
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.