The Quick Read: It depends on two separate limits: on the asset depletion path, cash-out typically tops out at 60% of the appraised value on a primary residence, second home or investment property, and your eligible assets must also convert into enough monthly qualifying income to carry the new payment, subject to underwriting. Your assets decide whether you qualify. The home’s value and the leverage cap decide how much cash you can take.
- On the asset depletion path, cash-out is typically capped at 60% loan-to-value (LTV) on a primary residence, second home or investment property, through select programs.
- Loan amounts on that path typically run from $125,000 to $3,500,000.
- Cash-out proceeds never count as qualifying assets or income.
- The asset qualifier path, where assets cover the whole loan, does not publish a cash-out figure, so confirm that before you plan around it.
- Pennsylvania adds no separate program ceiling. The figures are the same in every state where Lendmire’s consumer lending is licensed, and Pennsylvania is one of them.
Key Terms Defined
Loan-to-value (LTV) is the new loan balance divided by the home’s appraised value. A 60% LTV cap means the new loan cannot exceed 60% of what the appraiser says the home is worth. Terms vary by lender guidelines, property type, leverage, credit profile, and full file review.
Cash-out refinance replaces your current mortgage with a larger one and hands you the difference. A rate-and-term refinance replaces the mortgage without paying you cash.
Asset depletion is a qualifying method. The lender takes your usable assets, divides them over 60 months, and treats the result as monthly income. You do not sell or pledge the portfolio.
Asset qualifier is a different method. Your eligible assets must equal or exceed the entire loan amount, and no employment or income is documented.
Debt-to-income (DTI) compares your monthly debts, including the new housing payment, with your monthly income.
Seasoning is how long money has sat in an account before the lender will count it.
Which Path Fits You: Assets as the Loan, or Assets as Income?
A borrower is reviewed on one path at a time, and the two paths do not share a table of figures. Across the wholesale network where Lendmire places these files, the choice usually comes down to how big your balances are compared with the loan you want.
The asset qualifier path. Eligible assets, after the credit percentages, must cover the entire loan. The lender documents the assets, not your job or income. Leverage tops out at 80% on a purchase and 75% on a refinance for a principal residence or second home. Loans run up to $4,000,000, subject to underwriting.
The asset depletion path. Eligible assets become monthly income. Usable assets divided by 60 months must carry the full housing payment and your other debts through the DTI test. Because it is built around income, this is the path with published cash-out leverage.
For a retiree, a business seller, or someone living on an inheritance or settlement, the first question is simple. Do your balances cover the loan outright, or do they only support a payment? That answer picks the path before any cash-out math starts.
Two Limits, One Answer
A common mistake is treating the asset pool as the cash-out limit. It is not. Two ceilings apply, and the lower one wins.
The equity ceiling. The appraised value times the program’s cash-out LTV cap sets the maximum total loan. Subtract your current mortgage payoff and any financed costs. What remains is the most cash you could receive. On the depletion path, that cap is typically 60% for cash-out, against 80% on a primary residence or second home for a purchase or rate-and-term refinance.
The income ceiling. Your assets must produce enough derived income to carry the new, larger payment. A bigger loan means a bigger payment, so a larger cash-out can push you past the DTI limit even when the equity is there.
Which one binds first? In files we see, a borrower with a very large portfolio and a modest home value runs into the equity ceiling. A borrower with a high-value home and a thinner portfolio runs into the income ceiling.
One more point matters here. On the depletion path, cash-out proceeds never count as qualifying assets. You cannot take cash out and then use that same cash to qualify for the loan that produced it.
Can an Asset Depletion Refinance Take Cash Out at All?
Yes on the depletion path, with a lower leverage cap. On the qualifier path, the answer is set by the lender and is not published. Some products on the market are purchase and no-cash-out refinance only, so ask before you count on a number.
| Factor | Asset Depletion Path | Asset Qualifier Path |
|---|---|---|
| How assets are used | Become monthly income | Must cover whole loan |
| Cash-out LTV | Typically 60% | Lender-set; not published |
| Purchase / rate-and-term | 80% primary or second; 65% investment | 80% purchase; 75% refinance |
| Loan amounts | $125,000 to $3,500,000 | Up to $4,000,000 |
| Investment property | Eligible, 60% cash-out | Not part of this path |
All figures are typical ranges through select programs, subject to underwriting and the lender’s own calculation.
Which Assets Count, and How Much
On the depletion path, each account type counts at a percentage of its balance. Think of the percentage as a safety margin for price swings and withdrawal costs.
| Asset | Share Counted |
|---|---|
| Cash accounts | 100% |
| Certificates of deposit | 100% |
| Securities | 80% |
| Private stock | 75% |
| Retirement accounts | 70% at any age |
| Real-estate equity | 60% |
On the qualifier path the percentages are friendlier. Brokerage, certificates of deposit, money market and savings count at 100%. Retirement accounts count at 90% under age 59½ and 100% at 59½ or older. Accounts combine.
Several things do not count on the depletion path: custodial accounts, deferred compensation, escrow accounts, foreign funds, cash on hand, stock options and non-vested restricted stock units. Cryptocurrency, precious metals, collectibles and borrowed or pledged funds are not published as eligible on either path. The documented route is to convert them into a seasoned cash balance in a regulated account, with the source reviewed by the lender.
A Pennsylvania Example, Step by Step
Take a retired couple in the Philadelphia suburbs. This is an illustration built from the program shapes above, not a quote or a typical result. Their numbers are modeled assumptions, and the lender’s own calculation governs.
Step 1: Assets to income. They hold $1,500,000 in securities, which count at 80%, or $1,200,000. They also hold $300,000 in cash, which counts at 100%. Usable assets total $1,500,000. Divided by 60 months, that is $25,000 of monthly qualifying income.
Step 2: The income test. That $25,000 must carry the new housing payment and their other debts through the DTI test. Because their income is derived entirely from assets, they also need qualified assets of at least the lesser of $1,000,000 or 1.25 times the loan balance, and never below $250,000 in liquid funds. This pool clears that bar.
Step 3: The equity ceiling. Say their current mortgage equals 30% of the appraised value. A cash-out loan capped at 60% LTV leaves room for new borrowing equal to about 30% of the home’s value, before costs and payoff adjustments. They get the cash only if the larger payment still fits the DTI test. Exact terms depend on the lender’s guidelines, property type, leverage, and a full review of the borrower’s file.
Step 4: What the cash cannot do. None of that cash goes back into the qualifying pool. If they plan to use some of it for reserves or as the base for the next purchase, they should count it only after closing, not during qualification.
Notice the order. The portfolio proved they could carry the loan. The home’s value capped the loan. Neither limit alone gave the answer.
What Pennsylvania Changes (and What It Does Not)
Pennsylvania does not change the program figures. The 60% cash-out cap, the haircuts and the seasoning rules are the same for a borrower in Pittsburgh or Lancaster. One home-equity explainer from Proper Home Equity says the state has no Texas-style limit on equity borrowing. It describes the binding limits as program rules, such as lender LTV caps, credit requirements and appraised value. Treat that as general context, not legal advice. Every figure here varies by lender and program — guidelines, property type, leverage, and credit profile all apply.
What does vary locally is the appraisal. Rowhouses, two-to-four-unit buildings and rural properties often draw tighter treatment under investor guidelines. A conservative appraisal lowers the equity ceiling directly, because the cap applies to the appraised value, not to what you hope the home is worth.
The Rule Behind Asset-Based Qualifying
Federal ability-to-repay rules let a lender base its decision on income, on assets other than the home securing the loan, or on both, per CFPB Regulation Z § 1026.43. That is the footing for asset depletion. It also explains why the equity in the home you are borrowing against cannot be the asset that proves repayment.
The same rule requires the lender to verify any assets it relies on using third-party records, as the full text at Cornell’s Legal Information Institute shows. That is why statements are never optional. The rule does not set the 60-month divisor, the haircuts or the cash-out cap. Those come from the lender’s program.
Investment Property: Where DSCR May Fit Better
The depletion path can finance an investment property, at a 60% cash-out cap and 65% on a purchase or rate-and-term refinance. A first-time investor on this path needs a 700 credit score, subject to the lender’s matrix. But it is a consumer-style loan that tests your personal income. Final terms depend on lender guidelines, property type, leverage, and the borrower’s complete credit picture.
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 loan is reviewed primarily on property-level rental income covering the payment, subject to lender guidelines. If a rental covers its own payment, DSCR is usually the first look. Lendmire’s complete DSCR loans guide walks through that route.
Asset depletion makes more sense when the rent does not cover the payment, or when you would rather keep the property out of the qualification. The tradeoff is liquidity. Your pool is the qualifier, so closing costs and any reserves come out of it, leaving less cash for the next acquisition.
If Cash-Out Is Not on the Table
Sometimes the program, the occupancy or the numbers say no. Common alternatives include:
- A rate-and-term refinance, which allows higher leverage on the depletion path (80% on a primary residence or second home) but pays you no cash.
- A purchase-money loan on the next property, using the depletion path’s purchase leverage.
- A larger-balance route. If your loan will sit above conforming size, Lendmire’s article Can a Homeowner Take Cash Out on a Jumbo Refinance? covers the full-documentation side.
- Waiting. Statements must be at least 120 days old at application, plus one within 45 days, and some funds need that age before they count.
Retirement accounts deserve a pause. They count at 70% on the depletion path, and borrowing against your home may cost less than withdrawing from them. Tax treatment varies; consult a qualified professional.
Documents and Seasoning
Asset-based does not mean undocumented. Both paths document every account, and the lender reviews them closely.
- 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.
- Qualifier path: 60 days of seasoning, with two months of statements for each qualifying account.
- Credit: a 600 minimum on the qualifier path. The depletion path follows the lender’s score and loan-amount matrix.
- Housing history: 0x30x12, meaning no late payments of 30 days or more in the last 12 months. One 30-day late is considered case by case. A housing event needs four years of seasoning on the depletion path, and multiple bankruptcies are not eligible.
- Large deposits: expect to source anything unusual. A clean paper trail prevents delays in review.
Plan around the balance you will have after closing costs and any required reserves, not the number on today’s statement.
Frequently Asked Questions
How much cash can I actually take out?
On the asset depletion path, the new loan is typically capped at 60% of the appraised value, and you receive what is left after your current payoff and costs. The loan must also fall between $125,000 and $3,500,000, and your derived income must carry the new payment. Your lender’s own calculation governs.
Do retirement accounts qualify me?
Yes. On the depletion path, retirement accounts count at 70% of the balance at any age. On the qualifier path, they count at 90% under age 59½ and 100% at 59½ or older. You are not withdrawing the money. The lender is only measuring it.
Does the cash I take out count toward my assets?
No. Qualification is measured on what you held before the loan.
Do I need to show income?
It depends on the path. The qualifier path documents assets, not employment or income. The depletion path turns assets into qualifying income and runs it through the DTI test. Assets are documented on both. Asset-derived income can also supplement documented income up to a 45% DTI, subject to underwriting.
Can I use this for an investment property in Pennsylvania?
Yes, on the depletion path, at a 60% cash-out cap, and a first-time investor needs a 700 score. If the rent covers the payment, a DSCR loan is often the cleaner fit.
Ready to See How the Numbers Work?
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 broker that places these loans through select lenders in its network, so every figure above is a typical range and a ceiling, not an offer. Pennsylvania borrowers should also look at Lendmire’s article Can an Equity-Rich Homeowner Take a Large Cash-Out Refinance? if equity is the main goal.
For most Pennsylvania homeowners, the appraisal and the 60% cap, not the size of the portfolio, will decide how much cash comes out.
For current guidelines and terms, see Lendmire’s asset-based mortgage programs page.
About Lendmire
Lendmire — NMLS# 2371349 — is a mortgage broker that arranges bank statement, P&L-only, 1099-only and asset-based home financing in 16 states through wholesale lenders, on primary residences, second homes and investment properties. Every option is subject to the lender’s guidelines and full underwriting. Scotsman Guide named Lendmire a Top Mortgage Workplace in both 2025 and 2026.
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References
1. Proper Home Equity, Pennsylvania Home Equity Options
2. CFPB Regulation Z § 1026.43
3. Cornell Legal Information Institute, 12 CFR § 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 Asset Depletion Income Is Calculated From Your Portfolio · 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?
Guides: Asset-Based Mortgage in Pennsylvania
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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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.