The Quick Read: On the asset depletion path, a North Carolina homeowner can typically take cash out up to 60% of appraised value on a principal residence, second home or investment property, minus the existing payoff and costs, and only up to the loan size the borrower’s asset-derived income supports. Assets are divided by 60 months to create qualifying income, and that income runs through the debt-to-income test. All figures are subject to underwriting and to the lender’s own calculation.
- Cash-out ceiling on the asset depletion path is 60% of value on every occupancy type, through select programs.
- Loans on this path run from $125,000 to $3,500,000.
- The borrower needs the lesser of $1,000,000 or 1.25 times the loan in qualified assets, and never less than $250,000 liquid when assets are the only income.
- Home equity does not count as the qualifying asset on a cash-out, and cash-out proceeds never count either.
- The asset qualifier path is a separate route, and its cash-out terms are not published.
Two Paths, and You Are On One at a Time
The brokerage places asset-based mortgage programs through select lenders in its wholesale network, and every file runs on one of two paths. Keep them apart.
The asset qualifier path covers the entire loan with eligible assets. No employment or income is documented. The asset depletion path turns usable assets into monthly income by dividing them by 60 months, then tests that income against the housing payment and other debts.
Cash-out lives mostly on the depletion path. On the qualifier path, the lender sets whether cash-out proceeds are allowed and at what leverage, and that is not published. Plan a cash-out around the depletion numbers unless a lender confirms otherwise on your file.
Consumer lending is licensed in 16 states, North Carolina among them. The program figures do not change by state.
What Are the Two Ceilings on Your Cash?
Two limits cap the check, and the lower one wins.
Ceiling one is equity. On the asset depletion path, a cash-out refinance tops out at 60% loan-to-value. That is the same on a principal residence, a second home and an investment property. The maximum new loan is appraised value times 60%. Your cash is that number minus the payoff on the current mortgage and closing costs.
Ceiling two is income. The new payment, plus your other debts, has to fit the debt-to-income test using the income your assets generate. A larger loan means a larger payment, and a larger payment needs more qualifying income, which means more assets.
For comparison, a rate-and-term refinance (no cash taken) on this path goes up to 80% on a principal residence or second home and 65% on an investment property. That gap shows how much the program tightens when cash leaves the deal.
Which ceiling binds depends on the file. Owners with big balances and little income often hit the income ceiling first. Owners with a large mortgage balance and a big portfolio hit the equity ceiling first. Run both before you assume.
How Is Qualifying Income Built From Assets?
Usable assets divided by 60 months. That is the whole formula. Nothing is sold, and nothing is pledged for the loan.
The haircuts come first. On the depletion path, this share of each balance counts:
| Asset | Share that counts |
|---|---|
| Cash accounts | 100% |
| Certificates of deposit | 100% |
| Securities | 80% |
| Private stock | 75% |
| Retirement accounts | 70% at any age |
| Real-estate equity (other property, never the home being refinanced) | 60% |
Not eligible on this 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. Cryptocurrency, precious metals, collectibles and borrowed or pledged funds are not published as eligible on either path. The documented route is converting them to a seasoned cash balance in a regulated account, with the lender reviewing the source.
Here is the illustrative arithmetic. A borrower holds $1,500,000 in securities, which counts at 80% for $1,200,000, plus $300,000 in cash at 100%. That is $1,500,000 usable. Divided by 60 months, it produces $25,000 of monthly qualifying income. That income then carries the housing payment and other debts through the debt-to-income test. The lender’s own calculation governs.
Why Your Home Equity Doesn’t Count as the Asset
Owners are often surprised here. The home you are refinancing cannot serve as the qualifying asset. Federal ability-to-repay rules direct lenders to weigh income or assets other than the dwelling that secures the loan, as the CFPB’s Regulation Z § 1026.43 and the eCFR text of the rule lay out. That is why the real-estate equity line in the table above refers only to other property you own. Cash-out proceeds also never count as qualifying assets in this program.
So an equity-rich, cash-poor owner has a problem. A paid-off $1,200,000 house in the mountains or on the coast does not, by itself, qualify anyone. The borrower needs separate liquid holdings that clear the minimums.
What Minimums Does the Asset Pool Have to Clear?
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 the only income source, liquid assets never fall below $250,000.
Run it on a smaller loan. A 1.25 multiple on a $600,000 loan is $750,000, which is less than $1,000,000, so $750,000 is the floor. On a $1,000,000 loan, the multiple is $1,250,000, so the floor is capped at $1,000,000. Those are illustrative and subject to underwriting.
There is one exception worth knowing. Asset-derived income can supplement documented income, up to a 45% debt-to-income ratio. When it supplements, the minimum-assets rule is waived. A retiree with a pension and a portfolio may fit here better than a pure depletion file.
Credit also matters. The depletion path follows the lender’s matrix for score and loan amount. A first-time investor on this path needs a 700 score. Housing history is 0x30x12, though one 30-day late in the last twelve months is considered case by case. Multiple bankruptcies are not eligible, and a housing event needs four years of seasoning.
Three Illustrative North Carolina Scenarios
Run the numbers on three owners, each on the depletion path. These show shape, not offers.
| Owner | Equity ceiling | Income ceiling |
|---|---|---|
| Paid-off home, big portfolio | 60% of value, no payoff to subtract | Large pool supports a big loan |
| Moderate balance, mid portfolio | 60% of value less payoff | Depends on the size of the pool |
| High balance, thin portfolio | 60% of value may sit near payoff | Pool may fall below minimums |
Paid-off home. Picture a retiree with a fully owned house and the $1,500,000 pool above. The equity ceiling gives the largest check, since no payoff comes out. The question is whether $25,000 of monthly income carries the new payment. Often it does at moderate loan sizes.
Moderate balance. Say you owe about half of a home’s value. A 60% cap leaves modest room after payoff. Here the equity ceiling is usually the one that binds, and costs shrink the check further.
High balance. An owner who borrowed to 70% a few years ago has nothing to take. At 60% cash-out leverage, the new loan would be smaller than the old one. Check this before paying for an appraisal. Terms depend on the lender’s guidelines, the property type, the leverage, and a full review of the credit profile.
Every scenario also loses cash to closing costs and, in North Carolina, to the attorney-led closing process. Funds typically disburse after recording.
Why Do Some Sources Say Asset Depletion Can’t Cash Out?
Because programs differ. Non-agency programs through a wholesale network write their own rules, and some allow cash-out at lower leverage than a plain refinance.
Market surveys describe some asset depletion programs elsewhere as not allowing cash-out, and some as allowing it. That split is real. In the brokerage’s network, the depletion path allows cash-out at 60%. That figure is a ceiling, not an offer, and it applies only through select programs. The exact numbers vary by lender and program and follow a full review of property, leverage, and credit.
Primary Residence, Second Home or Investment Property
Occupancy changes the leverage. This table covers the asset depletion path only.
| Occupancy | Purchase or rate-and-term | Cash-out |
|---|---|---|
| Principal residence | Up to 80% | Up to 60% |
| Second home | Up to 80% | Up to 60% |
| Investment property | Up to 65% | Up to 60% |
An investor cashing out of a rental has another option to weigh. 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. A DSCR cash-out qualifies primarily on property-level rental income covering the payment, subject to lender guidelines, so no personal asset pool sets the size.
What the File Needs
Assets are documented on both paths. Qualifying on assets is not the same as skipping documentation.
On the depletion path, statements must be at least 120 days old at application, plus the most recent statement within 45 days. Sale-of-business, inheritance and legal-settlement funds are excused from that seasoning. Expect the credit report, the appraisal and title work too.
The usual file stumbles are mundane. A retirement balance counted at 100% when the program counts 70%. A brokerage account opened last month. A statement that is 46 days old. Lump deposits that need a source letter. Cleaning these up before submission keeps the file reviewable.
Reserves matter on the qualifier path only in a narrow way: none are required at or below 75% loan-to-value. The depletion path publishes no reserve months. The same dollars cannot count twice, though, as both the income pool and a cushion.
Costs, Risks and Who Should Skip This
Cash-out resets the loan. A larger balance means a larger payment, and the new money has to earn its keep. For an investor, that means the added carrying cost should be covered by what the cash buys.
Market swings also matter. Securities count at 80%, so a drop in the portfolio shrinks the qualifying income, and that shows up at application, not after.
Skip this route if you have income that documents easily under standard programs, if your liquid assets are below the minimums, or if your mortgage already sits above 60% of value. Tax treatment varies; consult a qualified professional.
Key Terms Defined
Asset depletion: a method that divides usable assets by 60 months to create monthly qualifying income.
Asset qualifier: a path where eligible assets must equal or exceed the whole loan, with no income documented.
Haircut: the share of an asset’s balance the program discounts.
Loan-to-value (LTV): the new loan divided by the appraised value.
Debt-to-income (DTI): monthly debts, including the new housing payment, compared with qualifying income.
Frequently Asked Questions
Is there a dollar cap on cash-out?
No fixed cash amount exists. The limits are 60% of value on the depletion path and the loan size your asset income supports, within a $125,000 to $3,500,000 range. Subject to underwriting.
Do I have to sell my investments?
No. The assets stay where they are. They are documented and counted toward income, and they are not liquidated or pledged to the loan.
Do retirement accounts count?
Yes, on both paths, at different credit. On the depletion path they count at 70% at any age. On the qualifier path they count at 90% under age 59½ and 100% at 59½ or older.
Can I cash out a paid-off North Carolina home?
Yes, through select programs, if the asset minimums and debt-to-income test are met. With no payoff, the 60% ceiling applies to the whole appraised value, less costs.
Can I use this for an investment property?
Yes on the depletion path, at up to 60% on a cash-out. Investors with strong rent should compare it against a DSCR cash-out, which is sized on the property’s income.
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’s asset-based mortgage in North Carolina page presents the program for North Carolina borrowers.
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.
Get Started
Ready to find the right loan for you?
In about 30 seconds you can review financing options available for your home or investment property. No commitment required.
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 § 1026.43
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 North Carolina Mortgage After Retiring With No W-2 Income · How Much of Mutual Funds Counts Toward Asset Depletion Income? · Can You Cash Out a Colorado Home on an Asset Depletion Refinance?
Guides: Asset-Based Mortgage in North Carolina
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
- Mortgage Loan Originator · NMLS# 1129696 · Verify on NMLS Consumer Access
- North Carolina Real Estate Broker · License# 343312 · Verify on NCREC
- North Carolina Insurance Producer · License# 19053198 · Property, Casualty, Life, Health · Verify on NAIC SBS
- Lendmire LLC · Firm NMLS# 2371349 · Verify firm licensure
Compliance and disclosures. Lendmire (NMLS# 2371349) is a licensed mortgage broker and is not a direct lender, depository institution, financial advisor, or tax professional. Content in this article is general market analysis and educational information — not financial, legal, or tax advice for any specific situation. Lendmire does not guarantee loan approval; every transaction is subject to underwriting by the funding lender. Mortgage pricing and loan program guidelines are subject to change at any time without notice and vary by borrower characteristics, property type, and state regulations. Lendmire complies with Equal Housing Opportunity. Licensure verification: NMLS Consumer Access.