The Quick Read: Yes, on a principal residence or second home, a cash-out is possible through select asset depletion programs placed through Lendmire’s network, subject to underwriting, but only up to 60% loan-to-value, and the cash you pull out never counts toward your qualifying assets. An investment property can also go through this path at the same 60% ceiling on a cash-out. A rental usually fits a property-income loan better, though.
- Asset depletion path, cash-out: up to 60% loan-to-value on a principal residence, second home or investment property, through select programs.
- Asset depletion path, loan size: $125,000 to $3,500,000, with qualified assets of at least the lesser of $1,000,000 or 1.25 times the loan.
- Asset qualifier path: assets must cover the entire loan. Cash-out terms on this path are set by the lender and are not published.
- Your home’s state does not change the figures. New Mexico borrowers see the same program numbers as everyone else.
- Assets are documented. Statements are required on both paths. Only personal income documentation is skipped on one of them.
Every figure here is a ceiling or floor on select programs, not an offer. Each file is underwritten individually.
Which Path Fits You: Assets Cover the Loan, or Assets Become Income?
You qualify on one path at a time, never both. The asset qualifier path counts your eligible assets against the entire loan amount. The asset depletion path turns your assets into a monthly qualifying income and tests it against your housing payment and other debts.
Seasoning means how long money has sat in an account before the lender will count it. Leverage means the loan-to-value ratio, or LTV: the loan as a share of the home’s value. Here is how the two paths compare.
| Factor | Asset Qualifier Path | Asset Depletion Path |
|---|---|---|
| How assets are used | Must cover the whole loan | Divided by 60 months into income |
| Income documented | None | Derived income runs through DTI |
| Max loan | $4,000,000 | $125,000 to $3,500,000 |
| Refinance leverage | Up to 75% | 60% cash-out on all occupancies |
| Credit | 600 minimum | Lender’s matrix |
Asset qualifier files in a few lines: brokerage, certificates of deposit, money market and savings accounts count at 100%. Retirement accounts count at 90% under age 59½ and 100% after. The pooled total has to equal or exceed the loan.
Depletion path files work differently. The pool is smaller after haircuts, and it is then converted to income. DTI, or debt-to-income, compares your monthly debts, including the new housing payment, to your monthly income.
Which path fits? If your liquid balances are larger than the loan you want, the qualifier path is cleaner. If your assets are large but not that large, the depletion path stretches them into income. Not sure which side you fall on? A broker can run both against your statements.
What the Depletion Path Allows on a Cash-Out
On the asset depletion path, a cash-out refinance tops out at 60% loan-to-value, whether the home is your residence, a second home or an investment property. That is well below the 80% ceiling the same path offers on a purchase or rate-and-term refinance for a principal residence or second home.
A cash-out refinance replaces your current mortgage with a larger one and hands you the difference. A rate-and-term refinance replaces the loan without taking extra cash out. Lenders price the risk differently, which is why the ceiling drops.
Here is the full leverage picture on the depletion path, through select programs.
| 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% |
One rule catches many borrowers. Cash-out proceeds never count as qualifying assets on the depletion path. You cannot pull $300,000 out of the house and then count that cash toward qualifying for the same loan.
That rule matters most for a home that is already paid off. A new first loan on a free-and-clear home is still a cash-out. It follows the 60% ceiling, and your balance sheet still has to carry it.
How Assets Become Income
The lender adds up your eligible assets, applies a percentage to each type, and divides the total by 60 months. The result is a monthly qualifying income. This path also requires qualified assets of at least the lesser of $1,000,000 or 1.25 times the loan balance. When asset depletion is your only income source, the minimum never drops below $250,000 in liquid assets.
A haircut is the share of an account’s value the lender subtracts because the asset can lose value or is harder to convert to cash. Here is what counts on the depletion 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. Examples include 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 pledged or borrowed funds are not published as eligible on either path. The documented route is to convert them to cash in a regulated account and let the lender review the source of funds. Never assume they count at some percentage.
A worked example
This is an illustration. The lender’s own calculation governs. Say you hold $1,500,000 in securities and $300,000 in cash.
- Securities count at 80%, so $1,200,000 is usable.
- Cash counts at 100%, so $300,000 is usable.
- Total usable assets: $1,500,000.
- Divide by 60 months: $25,000 of monthly qualifying income.
That $25,000 then carries the new housing payment and your other debts through the DTI test. A big balance sheet does not automatically mean a big loan. The haircuts shrink it, and the 60-month divisor spreads it thin.
Asset-derived income can also supplement documented income, up to a 45% DTI. When it supplements, the minimum-assets rule is waived. That fits a borrower with modest pension income and a large portfolio.
Can the Asset Qualifier Path Do Cash-Out?
The asset qualifier path is built to cover the entire loan with assets alone, and it documents no employment or income. Whether cash-out proceeds are allowed on that path, and at what leverage, is set by the individual lender and is not published. Treat any specific figure you see for it with suspicion.
On a refinance, this path allows up to 75% LTV on a principal residence or second home. Reserves are not required at or below 75% LTV, and above that the lender sets them. Final terms depend on lender guidelines, property type, leverage, and the borrower’s complete credit picture.
Here is the qualifier math. Say you want an $800,000 loan. You hold $330,000 in brokerage accounts (100% counts, so $330,000), $300,000 in a 401(k) while under age 59½ (90% counts, so $270,000) and $200,000 in savings (100%, so $200,000). Your usable total is $800,000, which matches the loan. You would qualify on assets alone, subject to underwriting.
Accounts combine, so you can mix them. The condition is that eligible assets, after the percentages, equal or exceed the whole loan.
Does a New Mexico Home Change Anything?
Not on the program figures. The LTV ceilings, haircuts, seasoning rules and loan ranges are the same for a home in Albuquerque or a ranch outside town. Lendmire’s consumer mortgage business is licensed in 16 states, New Mexico among them, so a New Mexico borrower is inside its consumer footprint.
State details do matter on the property side. Appraisal, title and insurance work all depend on the house itself. A home on acreage or with unusual construction can draw extra appraisal attention, so budget for that conversation early. Lendmire’s piece Does a Cash-Out Refinance Require a New Home Appraisal? covers what to expect.
Property tax and insurance vary by county and property. Treat them as inputs to the monthly payment, not as program rules.
What If the Home Is a Rental?
Most rental cash-outs go through a DSCR loan, not asset depletion. DSCR stands for debt service coverage ratio: the property’s rent compared with its monthly payment. The loan is reviewed primarily on property-level rental income covering the payment, subject to lender guidelines. Your personal balance sheet is not the test.
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.
Depletion math fits a rental poorly for a simple reason. It turns your assets into a modest income figure, which caps the loan size and adds a DTI test. A DSCR cash-out ties qualification to the property, so one investor can refinance several rentals without each loan competing for the same pile of assets. Lendmire’s complete DSCR loans guide walks through that structure.
If the rent does not cover the payment at the standard 1.00 coverage level, select lenders in the network have programs below 1.00, but leverage and terms adjust. Either way, occupancy decides the product. The same house cannot be both your residence and a rental.
One more trap. A cash-out on a rental is meant for business uses. If the plan is to spend the proceeds on personal expenses, a lender may treat the file differently, so say so up front.
An entity is another snag. Asset depletion files are typically written to an individual. Assets held inside an LLC can complicate a file, and treatment varies by program.
What Else You Need: Credit, Seasoning, Documents
Credit is the first gate. The qualifier path publishes a 600 minimum score. The depletion path follows the lender’s score and loan-amount matrix. A first-time investor on the depletion path needs 700. Housing history is 0x30x12, meaning no 30-day lates on a mortgage or rent in the past twelve months, though one late in that window is considered case by case. Multiple bankruptcies are not eligible, and a housing event on the depletion path needs 4 years of seasoning.
Next is statement age. Each path handles it differently.
- Qualifier path: 60 days of seasoning and two months of statements for each qualifying account.
- Depletion path: statements at least 120 days old at application, plus the most recent statement within 45 days.
- Exception: sale-of-business, inheritance and legal-settlement funds are excused from the depletion-path seasoning.
Nothing here is undocumented. Your assets are verified on both paths. Under the federal ability-to-repay rule, a lender may base its decision on income, on assets other than the dwelling that secures the loan, or on both. The same rule requires assets to be verified with reasonably reliable third-party records, which is why bank and brokerage statements are the backbone of the file. Because this is a consumer mortgage, TRID disclosures apply.
Expect these documents:
- Statements for every qualifying account.
- Proof of ownership and, for retirement accounts, the plan statement.
- A source-of-funds explanation for any large recent deposit.
- A property appraisal, title work and a payoff of existing liens.
- Homeowners insurance and any HOA details.
Where Files Get Stuck
These are the usual problems.
- Counting the proceeds. Cash from the refinance cannot be counted toward qualifying assets on the depletion path.
- Fresh money. Large deposits inside the statement window need a documented source. Statements must meet the 120-day and 45-day rules.
- Thin depletion cushion. Falling short of the minimum-assets rule, the lesser of $1,000,000 or 1.25 times the loan, ends the depletion path.
- Wrong asset assumptions. Crypto, gold and business accounts beyond your ownership share do not count until converted to seasoned cash.
- Leverage confusion. Borrowers quote the 80% purchase figure and expect it on a cash-out. The depletion cash-out ceiling is 60%.
- Wrong path. A borrower with plenty of assets but a high DTI may fit the qualifier path better, if the loan is smaller than the asset pool.
Credit slips also derail files. A recent late payment on housing debt gets reviewed hard. Pull your credit before you apply.
Borrow Against the Home or Sell Investments?
Many portfolio-heavy borrowers prefer borrowing to selling, because selling can trigger a taxable event and pull money out of a strategy that is working. That motive is common, and it is a fair reason to ask about cash-out. Tax treatment can depend on how the funds are used and how the property is held; borrowers should keep clear records and speak with a qualified tax professional before relying on any deduction.
The tradeoff is real. A cash-out refinance adds debt to the property, which raises the carrying cost and trims cash flow, as one BiggerPockets discussion on using a cash-out refinance to buy another investment property lays out. So the money you pull out should go somewhere that out-earns the added debt. Another BiggerPockets thread on cash-out refinancing free-and-clear rentals shows investors pointing to DSCR for that job, while noting that appraisal, insurance and credit paperwork still apply.
If the equity is the goal but the cash-out ceiling is too low, a smaller loan on the qualifier path, if your assets cover it, may leave more flexibility.
Whichever way you go, the ranking is simple. Occupancy picks the product, the product sets the ceiling, and your statements decide the loan amount. Skip the guesswork and bring the statements.
Key Terms Defined
Asset qualifier path: a way to qualify where eligible assets, after credit percentages, must equal or exceed the entire loan. No income is documented.
Asset depletion path: a way to qualify where eligible assets, after haircuts, are divided by 60 months into a monthly qualifying income that runs through the DTI test.
Haircut: the share of an account’s value the lender subtracts when counting it.
Seasoning: how long funds must sit in an account, or how old statements must be, before they count.
Cash-out refinance: a new loan larger than the one it replaces, with the difference paid to you.
Rate-and-term refinance: a refinance that replaces the existing loan without taking extra cash.
DSCR: debt service coverage ratio, which compares a rental’s income to its monthly debt payment.
Frequently Asked Questions
Can I use retirement accounts to qualify?
Yes, on both paths, though they are counted differently. On the qualifier path they count at 90% under age 59½ and 100% after. On the depletion path they count at 70% at any age. Statements and ownership proof are required, subject to underwriting.
Do I need income to qualify?
Not on the qualifier path, which documents no employment or income and rests on assets alone. On the depletion path, derived income from your assets is tested against your housing payment and other debts. It can also supplement documented income up to a 45% DTI.
What is the highest cash-out I can take on the depletion path?
The ceiling is 60% LTV on a principal residence, second home or investment property. Loan amounts range from $125,000 to $3,500,000. The existing mortgage payoff comes out of that ceiling before you receive cash, and the lender’s own calculation governs. These specifics are subject to lender guidelines and a full review of property, leverage, and credit.
Can I cash out a rental on asset depletion?
It is possible on select programs at 60% LTV on a cash-out, but a DSCR refinance is usually the better fit. DSCR is reviewed on the property’s rent, not your portfolio, which makes it easier to repeat across several rentals. Terms depend on the property, the program and the lender.
Does New Mexico have its own cash-out limits?
The program figures do not change by state. A New Mexico borrower sees the same leverage, haircuts and seasoning rules. Local factors such as county taxes, insurance and the home itself affect the file, so plan for them separately.
Your 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. Reach the team at 828-256-2183 or request a quote.
A paid-off New Mexico home with a large portfolio behind it often fits more than one path, and the path you pick sets how much equity you can reach.
For the mechanics of pulling equity out of a rental property, see Lendmire’s guide to cash-out refinance on an investment property.
For current guidelines and terms, see Lendmire’s asset-based mortgage programs page.
Lendmire’s asset-based mortgage in New Mexico page presents the program for New Mexico borrowers.
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.
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
2. Cornell Legal Information Institute, 12 CFR 1026.43
3. BiggerPockets, cash-out refinance to buy another investment property
4. BiggerPockets, cash-out refinance on free-and-clear investment properties
This article is part of Lendmire’s asset-based mortgage program — full qualification details, guidelines, and scenarios live on the program page.
Related reading: Does an Asset Depletion Loan Require Any Income? · Asset Qualifier vs Asset Depletion for a Cash-Out Refinance · How Jumbo Loan Asset Depletion Rules Work for a Second Home
Guides: Asset-Based Mortgage in New Mexico
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
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.