The Quick Read: Yes, a Florida home can be cashed out on the asset depletion path, through select programs in Lendmire’s wholesale network, at up to 60% loan-to-value on a cash-out refinance of a principal residence, second home, or investment property, subject to underwriting. The cash you pull out never counts as an asset used to qualify. The other asset-based path, which is reviewed around assets alone, does not publish a cash-out figure, so it depends on the lender.
- Asset depletion turns your eligible assets into monthly qualifying income by dividing them by 60 months.
- Cash-out leverage on that path is 60% on a principal residence, second home, or investment property, well below the purchase and rate-and-term ceilings.
- Depletion borrowers typically need qualified assets of at least the lesser of $1,000,000 or 1.25 times the loan balance, and never less than $250,000 liquid when assets are the only income source.
- If the Florida home is a rental, a DSCR cash-out loan that is reviewed on the property’s rent is often the cleaner fit.
Why Do Some Lenders Say Yes and Others Say No?
Because “asset depletion” describes how you qualify, not one product with one rulebook. Whether cash-out is allowed depends on the program path, how you occupy the home, and the lender’s guidelines. Across our wholesale network, those three variables explain nearly every conflicting answer you will read.
| Your situation | Can assets qualify you? | What to know |
|---|---|---|
| Primary or second home, depletion path | Yes, cash-out at up to 60% LTV | Income comes from the 60-month divisor |
| Investment property, depletion path | Yes, cash-out at up to 60% LTV | Lower leverage than other occupancies on a purchase |
| Asset qualifier path, cash-out | Set by the lender, not published | Ask the lender before you plan around it |
| Rental you want to cash out | Maybe, but DSCR often fits better | Rent carries the loan, not your portfolio |
Loan-to-value (LTV) is the loan balance divided by the home’s appraised value. A 60% cash-out LTV means the new loan can be no more than 60% of what the home appraises for. All figures here are ceilings from select programs, not offers, and every file is underwritten individually.
What Do the Key Terms Mean?
Asset depletion is a qualifying method that converts your usable assets into a monthly income figure. Nothing is sold, drained, or pledged.
Asset qualifier is a separate path in which your eligible assets must equal or exceed the entire loan amount. No employment or income is documented.
Cash-out refinance replaces your current mortgage with a larger one and hands you the difference in cash.
Rate-and-term refinance replaces your mortgage without taking extra cash, beyond covering costs.
Haircut is the share of an account’s balance that a lender refuses to count, because the asset can lose value or carry penalties.
Seasoning is how long funds must have sat in your account before the lender counts them.
Debt-to-income (DTI) compares your monthly debts, including the new housing payment, with your monthly income.
How Do the Two Asset-Based Paths Differ?
You qualify on one path at a time, and the figures never blend. The asset qualifier path asks whether your assets cover the loan outright. The asset depletion path asks whether your assets, converted to income, can carry the payment.
| Feature | Asset qualifier | Asset depletion |
|---|---|---|
| Core test | Assets cover the whole loan | Assets ÷ 60 months = income |
| Loan amounts | Up to $4,000,000 | $125,000 to $3,500,000 |
| Purchase leverage | Up to 80% LTV | Up to 80% (65% on investment property) |
| Refinance leverage | Up to 75% LTV | Up to 80% rate-and-term (65% on investment property) |
| Cash-out leverage | Lender-set, not published | Up to 60% LTV |
| Statements | 60 days seasoning, two months each account | 120 days old, plus one within 45 days |
Qualifier-path leverage applies to a principal residence or second home. Depletion-path purchase and rate-and-term figures are 80% on a principal residence or second home and 65% on an investment property.
Credit works differently too. The qualifier path has a 600 minimum score. The depletion path follows the lender’s score and loan-amount matrix, and a first-time investor on that path needs a 700 score. Housing history is typically 0x30x12, and 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 on the depletion path.
How Does the Depletion Math Work on a Cash-Out Refinance?
The lender counts only the share of each account it allows, adds the results, and divides by 60. The monthly figure must then carry the new housing payment and your other debts through the DTI test. Here is the sanctioned shape of the arithmetic, which is illustrative only, since the lender’s own calculation governs.
1. List your accounts. Cash, certificates of deposit, securities, private stock, retirement accounts, and real-estate equity may count.
2. Apply the haircuts. Cash and CDs count at 100%, securities at 80%, private stock at 75%, retirement accounts at 70% at any age, and real-estate equity at 60%.
3. Add the usable total. The lender sums the haircut balances.
4. Divide by 60. That produces your monthly qualifying income.
5. Run the DTI test. The new payment on the larger cash-out loan goes into the test along with every other debt.
Example: $1,500,000 in securities at 80% counts as $1,200,000.
Example: $300,000 in cash at 100% counts as $300,000.
Example: usable assets of $1,500,000 divided by 60 months equal $25,000 of monthly qualifying income.
That income then has to carry the housing payment and other debts. A cash-out raises the loan balance, so it raises the payment you must show. This is why depletion borrowers often find the cash-out leverage limit matters less than the DTI result.
Cash-out proceeds from the loan itself never count as qualifying assets. You cannot borrow against the home and then use that cash to qualify for the same loan.
Asset-derived income may also supplement documented income, up to a 45% DTI. When it supplements, the minimum-assets rule is waived. That helps a borrower with a modest pension or part-time earnings plus a sizable portfolio.
Which Assets Count, and Which Do Not?
Cash, CDs, and brokerage balances carry the most weight. On the depletion path, the following are not eligible: 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.
On the qualifier path, brokerage, CDs, 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.
Suppose you want an $800,000 loan. You hold $330,000 in brokerage accounts (100% counts as $330,000), a $300,000 401(k) while under 59½ (90% counts as $270,000), and $200,000 in savings (100% counts as $200,000). That adds up to $800,000 of usable assets, so you qualify on assets alone, subject to underwriting. Remember that the qualifier path does not publish a cash-out figure.
Cryptocurrency, precious metals, collectibles, pledged or borrowed funds, and business accounts beyond your ownership share 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 source reviewed by the lender. Sale-of-business, inheritance, and legal-settlement funds are excused from the depletion path’s 120-day statement age.
The assets are always documented. What you skip is income documentation, not paperwork.
What Counts as Cash-Out Versus Rate-and-Term?
A rate-and-term refinance pays off your old loan and its costs, and you walk away with nothing extra. A cash-out refinance puts money in your hands beyond that. The lender’s definition governs, but your use of the funds and the loan structure decide which label your file gets.
On the depletion path, the difference is large. A principal residence or second home can go to 80% LTV on a rate-and-term refinance and 60% on a cash-out. An investment property can go to 65% and 60%. Final terms depend on lender guidelines, property type, leverage, and the borrower’s complete credit picture.
If you only need to swap a loan or drop a co-borrower, ask the lender whether the file can be structured as rate-and-term. Pulling even modest extra cash can move the whole loan into the lower cash-out tier.
What Is Different About a Florida Home?
The program figures do not change by state. Florida facts shape the file around them. Consumer mortgage lending through Lendmire is licensed in 16 states, Florida among them.
Homestead status changes the file for an owner-occupied home, and the title company and lender will review it. Insurance cost and coverage can affect both your payment and the appraisal. Condos and homes in HOA communities add dues and association requirements that lenders weigh.
Whether the home is your residence, a seasonal second home, or a rental decides which row of the leverage table applies. Say so up front, because it changes the leverage ceiling and the path.
Should You Use DSCR Instead If the Home Is a Rental?
Often, yes. If the property rents, a DSCR cash-out loan may fit better than asset depletion. 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.
DSCR qualifies primarily on property-level rental income covering the payment, subject to lender guidelines. Your personal portfolio matters mainly for reserves. Select lenders in the network also review coverage below 1.00, although leverage and terms adjust. Lendmire’s complete DSCR loans guide walks through how that works.
| Path | What carries the loan | Best fit |
|---|---|---|
| Asset depletion cash-out | Your usable assets, ÷ 60 | Asset-rich, income-light owner |
| DSCR cash-out | The rental’s income | Rental with solid rent coverage |
| Bank statement program | Deposits you document | Active self-employed borrower |
| HELOC (a bank’s second lien) | Your income per bank rules | Keeping a first loan intact |
Asset depletion on an investment property caps at 60% LTV on a cash-out, so run both paths on your own numbers before choosing. A large portfolio does not lower the coverage a DSCR property must show. The two paths measure different things. These specifics are subject to lender guidelines and a full review of property, leverage, and credit.
Where Do the Rules Come From?
The federal ability-to-repay rule lets a lender rely on income or assets other than the home that secures the loan, per CFPB Regulation Z. That is the legal footing for asset-based qualifying, and it also explains why home equity does not count as a qualifying asset on a loan secured by that same home.
Agency loans work differently. Fannie Mae’s employment-related asset rule covers purchases and limited cash-out refinances only, on principal residences and second homes only, at up to 70% LTV, or 80% when the asset owner is 62 or older. That is Fannie Mae’s rule, not this program’s. It leaves out cash-out on a rental, which is a big reason asset-based non-QM programs exist. Terms depend on the lender’s guidelines, the property type, the leverage, and a full review of the credit profile.
What Are the Risks and Tradeoffs?
A cash-out replaces your existing loan with a larger one. You give up your current loan’s terms, and the new balance means a bigger payment that your income figure has to carry.
Your qualifying income depends on market values. If your securities fall before the file is underwritten, the usable total and the monthly income fall with them. Retirement balances count at 70% on the depletion path, and withdrawing from them for any reason can create penalties of its own.
Also consider what you do with the cash. Cash used to buy another rental may fit a DSCR purchase better than a larger primary-home mortgage. Tax treatment varies; consult a qualified professional.
What Should You Gather Before You Apply?
- Statements for every account. Depletion-path statements should be at least 120 days old, plus one within 45 days. Qualifier-path files need two months of statements per account and 60 days of seasoning.
- A clear occupancy answer. State whether the home is a primary residence, second home, or rental.
- Your credit picture. Know your score and any housing event, since each path treats them differently.
- The purpose of the cash. Lenders ask what the funds are for.
- Source records for large deposits. Lenders verify assets with reliable third-party records and keep documentation of how they considered them, as Alston & Bird’s advisory on the ability-to-repay rule notes.
Then ask each lender four questions. How do you count the assets? Is cash-out allowed on this path and occupancy? What leverage applies? What seasoning do you require?
Frequently Asked Questions
Do I have to sell or withdraw my assets to use asset depletion?
No. Depletion is a qualifying calculation, not a liquidation. Your accounts stay in place, and the lender simply counts a portion of their value as monthly income. The lender will still document and verify them with statements.
Can I use the cash I pull out to help me qualify?
No. On the depletion path, cash-out proceeds never count as qualifying assets. Only seasoned assets that you already hold count, after the haircuts.
Does a second Florida home work the same way as a primary residence?
Mostly, yes. A second home carries the same depletion-path leverage as a principal residence: up to 80% on a purchase or rate-and-term refinance and 60% on a cash-out. An investment property is lower, at 65% and 60%. Program terms are subject to underwriting.
Can I qualify if most of my money is in a retirement account?
Possibly. On the depletion path, retirement accounts count at 70% at any age. On the qualifier path, they count at 90% under 59½ and 100% at 59½ or older. Lenders review the account type and statements.
What if I am declined for cash-out on asset depletion?
You still have options. Depending on the property and your documents, a DSCR cash-out loan, a bank statement program, or a smaller rate-and-term refinance may fit. Each uses a different qualifying test.
What Is the 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. Lendmire is a broker that arranges financing through select lenders in its network, and any loan is subject to underwriting and is not a commitment to lend.
For how equity extraction works on an investment property, see Lendmire’s guide to cash-out refinance on an investment property.
Lendmire’s asset-based mortgage in Florida page presents the program for Florida borrowers.
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. CFPB Regulation Z § 1026.43
2. Fannie Mae Selling Guide B3-3.4-06
3. Alston & Bird, revised qualified mortgage rules advisory
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 Qualifier vs Asset Depletion for a Cash-Out Refinance · How Jumbo Loan Asset Depletion Rules Work for a Second Home · Does an Asset Depletion Loan Require Any Income?
Guides: Asset-Based Mortgage in Florida
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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Disclosures. The information presented in this article is general market commentary, not financial, legal, or tax advice. Lendmire is a mortgage brokerage (NMLS# 2371349) — not a direct lender or depository institution — and loan placement is subject to lender underwriting. Nothing in this content represents a commitment to lend. Loan terms, pricing, and program availability vary based on borrower qualifications, property characteristics, and state of subject property, and are subject to change at any time. Lendmire complies with Equal Housing Opportunity requirements. Consumer access: nmlsconsumeraccess.org.