The Quick Read: The limit is set by loan-to-value, not by how large your portfolio is. On the asset depletion path, through select programs, a cash-out refinance on a principal residence or second home is capped at 60% of appraised value, and an investment property is also capped at 60%, subject to underwriting. Your assets prove you can repay the loan. They do not raise the ceiling.
- Cash to you equals the new loan minus the payoff of your first mortgage, any second lien and closing costs.
- The 60% cash-out cap on the depletion path applies to principal residences, second homes and investment property alike.
- Cash-out proceeds never count as qualifying assets on the depletion path.
- Whether the asset qualifier path allows cash-out at all is set by the individual lender and is not published, so no figure is stated for it here.
- Depletion-path loans run from $125,000 to $3,500,000, subject to underwriting. These specifics are subject to lender guidelines and a full review of property, leverage, and credit.
Ohio does not change these numbers. The program figures are the same in every state where Lendmire, a broker, arranges consumer mortgages (Ohio is one of 16). Ohio facts matter for context only.
Which Path Fits an Asset-Heavy, Income-Light Borrower?
There are two asset-based paths, and a borrower is on one at a time. Naming the path matters because the numbers differ. Lendmire’s asset-based mortgage program covers both.
Asset qualifier path. Eligible assets, after the credit percentages, must equal or exceed the entire loan amount. No employment or income is documented. Leverage runs up to 80% on a purchase and 75% on a refinance, on a principal residence or second home, through select programs. Loans go up to $4,000,000. Cash-out on this path is a lender-level decision that is not published. Don’t plan a cash-out around it without a quote from the network.
Asset depletion path. Eligible assets, after haircuts, are divided by 60 months. The result is monthly qualifying income. That income must carry the full housing payment and other debts through the debt-to-income test. This is the path with a published cash-out ceiling.
The typical borrower here is a retiree, someone who sold a business, an heir, or a household living off a portfolio. Balances are large. Documented income is small. Across the wholesale network, this is the profile these programs are built for.
How Is the Cash-Out Amount Calculated?
The cash-out amount comes from a short sequence. Take the appraised value, multiply by the program’s cash-out LTV, then subtract what must be paid off. What’s left is yours. Asset totals never enter that math. The asset side is a separate test that the new payment has to pass.
1. Classify the loan. A refinance that only pays off liens is rate-and-term. One that returns cash is cash-out and carries the lower ceiling. Paying off a non-purchase-money second lien generally counts as cash-out even if no money reaches you.
2. Apply the LTV cap. On the depletion path, rate-and-term on a principal residence or second home runs up to 80%. Cash-out drops to 60%. On an investment property, rate-and-term runs up to 65% and cash-out is 60%.
3. Subtract payoffs and costs. First mortgage balance, second lien balance, then closing costs. The remainder is net cash.
4. Check the income side. Your usable assets, divided by 60, must still carry the new payment and your other debts. A larger loan means a larger payment.
Here is the shape of it in words. Say your home appraises at $1,000,000 and you owe a first mortgage. At the 60% cash-out cap, the new loan can reach 60% of that value. Cash to you is that figure less your payoff and costs. If your payoff already sits near 60% of value, you get little or nothing back. Equity-rich owners with small balances get the most. The lender’s own calculation governs, and the figures here are illustrative. Terms depend on the lender’s guidelines, the property type, the leverage, and a full review of the credit profile.
Two Ceilings, One Answer
Two limits apply, and the lower one binds. The equity ceiling is the LTV cap. The income ceiling is what your assets support through the debt-to-income test.
Most borrowers hit the equity ceiling first on a modest balance. A borrower with a large new loan and thin usable assets can hit the income ceiling first. A bigger loan raises the payment, and the payment has to fit inside the income your assets produce.
Run the sanctioned example. Suppose you hold $1,500,000 in securities, which count at 80%, or $1,200,000, plus $300,000 in cash at 100%. Usable assets total $1,500,000. Divided by 60 months, that gives $25,000 of monthly qualifying income. That income then carries the housing payment and other debts through the debt-to-income test, which is where a very large cash-out can fail even with plenty of equity.
What Assets Count, and at What Percentage?
On the depletion path, the share of each balance that counts is set by haircuts.
| Asset (depletion path) | 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% |
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 on this path.
Cryptocurrency, precious metals, collectibles and pledged or borrowed funds are not published as eligible on either path. The documented route is to convert them to a seasoned cash balance in a regulated account, with the source reviewed by the lender.
The qualifier path uses different credit. Brokerage, CDs, money market and savings count at 100%. 401(k) and IRA balances count at 90% under age 59½ and 100% at 59½ or older. Don’t mix the two tables.
Qualifying assets are also the money that must stay put. Funds that go to closing costs or the deal come out of the pool first, so confirm what is left after that.
Minimums, Credit and Seasoning
Depletion-path files need qualified assets of 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. If asset-derived income only supplements documented income, it can do so up to a 45% debt-to-income ratio, and the minimum-assets rule is waived.
Credit follows the lender’s score and loan-amount matrix on the depletion path. A first-time investor on this path needs 700. Housing history is 0x30x12, and one 30-day late in the last twelve months is considered case by case. Multiple bankruptcies are not eligible. A housing event needs four years of seasoning. On the qualifier path, the published floor is a 600 score.
Statements are documented on both paths. “No income documentation” never means no documentation. The program asks for no traditional personal-income documentation, pay stubs or employment verification, but every file is fully underwritten. Depletion files need 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 files need 60 days of seasoning and two months of statements per qualifying account.
Reserves have no published month count on the depletion path. On the qualifier path none are required at or below 75% LTV. The exact numbers vary by lender and program and follow a full review of property, leverage, and credit.
Where Cash-Out Proceeds Can’t Help
Cash-out proceeds never count as qualifying assets on the depletion path. You can’t pull cash from the house and then use that cash to prove you can afford the house.
The reverse also trips files. Assets that carry your income can’t also be your closing funds and reserves. One pool does one job. Count the pool after the deal has taken its share.
Is This a Consumer Loan or a Business Loan?
An owner-occupied cash-out is a consumer loan, so TRID disclosures apply. The lender must make a reasonable determination that you can repay, using verified records. The Federal Register final rule on ability to repay lists the minimum factors a lender weighs, including assets, debt-to-income or residual income, and credit history. It also treats investment-purpose loans as business purpose, which sits outside that rule.
Asset depletion itself is an underwriting method. The OCC describes it as using an applicant’s assets to build a hypothetical annuity stream, often for high-net-worth applicants with liquid assets but little cash flow. Nothing is liquidated or frozen. It’s a calculation, not a pledge.
Which Route Fits an Investor?
Asset depletion helps when liquid wealth is big and tax-return income is thin. For the owner-occupied home, it taps equity without W-2 or tax-return income. The cash can then fund down payments or reserves on rentals, though the 60% cap still limits the draw.
For the rentals themselves, the property-income route is a DSCR loan. It qualifies primarily on property-level rental income covering the payment, subject to lender guidelines, and the review rests on the property rather than on your personal income. For a rental sitting on a large equity position, Lendmire’s piece Can an Equity-Rich Homeowner Take a Large Cash-Out Refinance? covers how big equity draws work.
Compare three routes by where the equity sits and where the liquid money sits:
| Route | Best when | What limits cash |
|---|---|---|
| Asset depletion, home | Large assets, thin income | 60% cash-out LTV |
| DSCR, rental | Rent covers the payment | Program LTV on the rental |
| Asset qualifier, home | Assets cover the whole loan | Lender-set cash-out terms |
Ohio Context
Program figures don’t change by state. One Ohio fact matters for refinance cost. Ohio Revised Code § 1343.011 limits prepayment penalties on residential mortgages. A penalty is allowed only within five years of the mortgage’s execution date and cannot exceed 1% of the original principal. Check your current note before refinancing.
Sizing the Draw
Taking the maximum is rarely the best move. A larger cash-out raises the payment, and that payment must fit inside the income your assets produce. The derived income comes from a pool that stays on the statement. Spending cash-out proceeds on things that don’t earn income leaves you with a bigger payment and the same asset base.
A sensible sizing check has three parts. Confirm the number after payoffs and costs. Confirm the new payment still fits the 60-month income figure. Confirm you aren’t draining the liquid reserves the file relies on.
Key Terms Defined
Asset depletion: A way to turn usable assets into monthly qualifying income by dividing them by 60 months.
Cash-out refinance: A new mortgage larger than the old payoff, with the difference paid to you.
LTV (loan-to-value): The new loan as a share of appraised value.
Haircut: The share of an asset’s balance the lender will not count.
Seasoning: The period funds must sit in an account before they count.
Frequently Asked Questions
Is there a dollar limit on cash-out under asset depletion?
No fixed dollar limit exists. The limit is the 60% cash-out LTV on the depletion path, and loans run from $125,000 to $3,500,000, subject to underwriting. Cash to you is whatever remains after payoffs and costs. Final terms depend on the lender’s guidelines, the property type, and the borrower’s complete credit picture.
Do more assets mean more cash-out?
No. More assets raise the income you can show, which helps the payment fit. They don’t raise the LTV cap. Equity and payoffs decide the cash.
Can cash-out proceeds count as my reserves or qualifying assets?
No. On the depletion path, cash-out proceeds never count as qualifying assets.
Does the asset qualifier path allow cash-out?
That is set by the lender and is not published. Ask for a quote on your specific file before assuming it works.
Does Ohio change the program?
Not the figures. The leverage, haircuts and minimums are the same. State law matters for items such as prepayment penalties, covered above.
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.
Lendmire’s asset-based mortgage in Ohio page presents the program for Ohio 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.
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References
1. Federal Register: Ability-to-Repay and Qualified Mortgage Standards
This article is part of Lendmire’s asset-based mortgage program — full qualification details, guidelines, and scenarios live on the program page.
Related reading: Asset Depletion vs DSCR for an Ohio Rental Purchase · How Much of Mutual Funds Counts Toward Asset Depletion Income? · How Long Does Asset Seasoning Take After an Inheritance?
Guides: Asset-Based Mortgage in Ohio
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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Disclosure information. Lendmire is a state-licensed mortgage brokerage under NMLS# 2371349. Lendmire is not a depository institution, direct lender, or financial advisor — all loans referenced are placed through wholesale lender partners and are subject to each lender's underwriting standards. This article is provided for general informational purposes and is not a commitment to lend, nor does it constitute financial, legal, or tax advice. Loan programs, terms, rates, and qualification standards change without notice and depend on borrower profile, property type, and the state in which the subject property is located. Equal Housing Opportunity provider. NMLS Consumer Access: nmlsconsumeraccess.org.