The Quick Read: Yes, but only on the asset depletion path, only on a home you live in or use as a second home, and only at lower leverage. Through select programs, a primary residence or second home can take a cash-out refinance up to 60% loan-to-value, subject to underwriting. A rental is a different story, and the asset-qualifier path does not publish a cash-out figure at all.
- Asset depletion cash-out on a principal residence or second home tops out at 60% loan-to-value, subject to underwriting.
- Investment property on the same path also caps at 60% on a cash-out, but most rental owners are better served by a DSCR loan.
- Cash-out proceeds never count as qualifying assets or reserves.
- Usable assets are divided by 60 months to create qualifying income, which then runs through the debt-to-income test.
- Pennsylvania changes the closing process, not the program figures.
Picture a Pennsylvania homeowner with a seven-figure portfolio, a modest pension, and a home with plenty of equity. Documented income looks thin. Assets look strong. That is exactly the profile this product exists for, and the cash-out question comes up constantly. The honest answer has a few moving parts, so here they are in order.
Which Path Fits You: Assets as the Loan, or Assets as Income?
Across the wholesale network, asset-based mortgages come in two forms, and a borrower is qualified on one at a time. Mixing them up is a common source of confusion.
The asset qualifier path covers the entire loan with eligible assets. No employment or income is documented. If your usable assets equal or exceed the loan amount, the file rests on the assets alone. Loans run up to $4,000,000, with leverage up to 80% on a purchase and 75% on a refinance. Whether a lender allows cash-out proceeds on this path, and at what leverage, is set by the lender and not published. Treat any claim of a qualifier-path cash-out figure with suspicion. Leverage, reserves, and pricing vary by lender and program; the final terms follow the full file review.
The asset depletion path turns assets into income. Usable assets are divided by 60 months, and that monthly figure must carry the housing payment and other debts through the debt-to-income test. Loans run from $125,000 to $3,500,000. This is the path where cash-out has a published ceiling.
If your question is “can I pull cash out of my Pennsylvania home,” the depletion path is the one with a real answer. If you want the broader picture of how these programs fit together, Lendmire’s complete DSCR loans guide covers the investor side of the house.
What Leverage Does a Cash-Out Allow?
On the asset depletion path, a cash-out refinance on a principal residence or second home goes up to 60% loan-to-value. The same path allows up to 80% on a purchase or rate-and-term refinance for those occupancies. That gap is the whole story. Taking cash out costs you 20 points of leverage compared with a plain rate-and-term refinance.
Investment property on the depletion path is tighter still: up to 65% on a purchase or rate-and-term refinance, and 60% on a cash-out. These are ceilings, never offers. Credit, reserves in the file, property type, and loan size all pull the real number lower.
Here is the catch for many Pennsylvania homeowners. A paid-off or lightly mortgaged home looks like it has enormous room. At 60%, though, the cash you can extract is capped well below the equity you might assume. A home with a long-held, low balance may still leave you with less liquidity than you hoped.
Cash-Out Proceeds Do Not Count as Assets
This rule trips people up. Cash that comes out of the refinance cannot be counted toward your qualifying assets. You cannot borrow against the house, park the proceeds in a brokerage account, and then use those proceeds to qualify for the same loan.
The practical consequence: your file must qualify on assets that already exist and are already seasoned. On the depletion path, statements need to 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, which helps recent sellers and heirs.
If you are weighing this against a similar route for an inherited property, Lendmire’s piece on whether an asset-rich retiree can cash-out refinance an inherited home walks through that situation.
How the Asset Depletion Math Works
The shape is simple. Take eligible assets after haircuts, divide by 60 months, and treat the result as monthly income. Then test that income against the housing payment and other debts.
Haircuts 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% |
Here is the sanctioned illustration. Say you hold $1,500,000 in securities, which count at 80%, or $1,200,000. Add $300,000 in cash, which counts at 100%. That is $1,500,000 of usable assets. Divided by 60 months, it produces $25,000 of monthly qualifying income. That income then has to carry the housing payment and your other debts through the debt-to-income test. The lender’s own calculation governs, and this is illustration only.
Several asset types are 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, and collectibles 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.
There are also minimums. Qualified assets must be at least the lesser of $1,000,000 or 1.25 times the loan balance, and never below $250,000 liquid when asset depletion is your only income source. If asset income only supplements documented income, it can do so up to a 45% debt-to-income ratio, and the minimum-assets rule is waived.
Who Gets Approved, and Who Struggles?
Credit matters. The qualifier path publishes a 600 minimum score. The depletion path follows the lender’s score and loan-amount matrix, so the number moves with the size of the loan. A first-time investor on the depletion path needs 700. Housing history is typically 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 on the depletion path.
Strong assets do not erase a weak credit file. Underwriting reviews both.
What About a Rental Property in Pennsylvania?
Asset depletion technically reaches investment property, at 60% on a cash-out. For most rental owners, though, it is the wrong tool. A first-time investor on this path needs a 700 score, and 60% leverage leaves little cash to extract.
The usual cash-out lane for a rental is a DSCR loan. 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. The file qualifies primarily on property-level rental income covering the payment, subject to lender guidelines, rather than on your assets. Under the federal rule for business-purpose credit, Regulation Z’s business-purpose exemption separates these loans from consumer mortgages, and the eCFR text of 12 CFR 1026.3 also covers credit extended to something other than a natural person.
The decision turns on what you are solving. Asset depletion solves a borrower-income problem. DSCR solves a property cash-flow problem. A rental investor with big balances and thin tax-return income should usually look at DSCR first. The exception is a rental with weak coverage, where the assets can carry the file and DSCR cannot. Select lenders in the network offer programs below 1.00 coverage, but loan-to-value and terms adjust accordingly.
Decision Table: Your Situation, Likely Route, Watch-Out
| Your situation | Likely route | Watch-out |
|---|---|---|
| Live in the home, big portfolio, low documented income | Asset depletion cash-out, up to 60% | Proceeds do not count as assets |
| Want to cover the whole loan with assets | Asset qualifier path | Cash-out terms are lender-set, not published |
| Rental with strong rent coverage | DSCR cash-out | Business-purpose use of proceeds |
| Rental with thin rent, strong assets | Asset depletion, up to 60% | 700 score if first-time investor |
| Mostly crypto or metals | Convert to seasoned cash first | Source is reviewed by the lender |
Does Pennsylvania Change Anything?
Not the program figures. The 60% cash-out ceiling, the 60-month divisor, and the haircuts do not change by state. Pennsylvania is one of the 16 states where Lendmire’s consumer mortgage lending is licensed, so a Pennsylvania borrower can work with the brokerage on this product, subject to underwriting. Terms vary by lender guidelines, property type, leverage, credit profile, and full file review.
What changes is the closing process. Pennsylvania’s 2% realty transfer tax, split between the state and the locality, applies to property sales. It is a tax on conveyances, so it generally does not bite on a refinance mortgage. Property types common in the state, such as rowhomes, rural properties, and second homes in vacation areas, can affect appraisal and property review.
Borrow or Sell? The Real Tradeoff
The appeal of this loan is simple: you keep your assets invested instead of selling them. Assets are documented, not liquidated, to qualify.
The risk is just as simple. The qualifying figure depends on balances at the time of review. Securities count at 80% of their value and retirement accounts at 70%, so a portfolio drop before application shrinks your usable assets. After closing, the loan does not pledge your portfolio, but your debt obligation continues whatever the market does.
Selling can be better if the sale triggers little tax and you want no new debt. Borrowing can be better if you would owe meaningful tax on a sale, or if you expect your holdings to keep growing. It depends on your cost basis, your time horizon, and how comfortable you are carrying a mortgage into retirement.
Mistakes That Sink These Files
- Counting equity as an asset at full value. Real-estate equity counts at 60% on the depletion path.
- Assuming “no income documentation” means no documentation. The assets are documented on both paths.
- Moving money in a hurry. Fresh deposits without seasoning or a clear source create delays in review.
- Expecting the qualifier path to allow cash-out. The figure is lender-set and not published.
- Using the rental path for a home you live in. Occupancy decides which product applies.
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 cover the entire loan amount and no income is documented.
Cash-out refinance: a new loan larger than the payoff, with the difference paid to the borrower.
Haircut: the share of an asset’s balance that is discounted before it counts.
Seasoning: the time funds must sit in an account before they count.
Debt-to-income (DTI): monthly debts divided by monthly qualifying income.
Frequently Asked Questions
Can I take cash out if my Pennsylvania home is paid off?
Yes, on the asset depletion path for a principal residence or second home, up to 60% loan-to-value, subject to underwriting. A paid-off home is still a cash-out transaction. The 60% ceiling, not your equity, sets the maximum.
Does the cash I receive count toward reserves or qualifying assets?
No. Cash-out proceeds never count as qualifying assets on the depletion path. Qualification must rest on assets that already exist and have been seasoned.
Can I use my IRA or 401(k)?
Yes. On the depletion path, retirement accounts count at 70% at any age. On the qualifier path, 401(k) and IRA balances count at 90% under age 59½ and 100% at 59½ or older. You do not have to withdraw the money.
Do I have to sell any investments?
No. Assets are documented through statements, not liquidated. Statements must meet the seasoning rules, which are 60 days on the qualifier path and 120-day-old statements plus one within 45 days on the depletion path.
Is this different in Pennsylvania?
The program figures are the same in every state. Pennsylvania affects the closing process and property review, not the leverage, haircuts, or divisor.
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, and every file is underwritten individually. This is not a commitment to lend.
Investors weighing their equity options can start with Lendmire’s guide to cash-out refinance on an investment property.
About Lendmire
Lendmire, NMLS# 2371349, is a mortgage brokerage with consumer lending licenses in 16 states. Bank statement, P&L-only, 1099-only and asset-based mortgages are arranged through wholesale lending partners for borrowers whose tax returns understate their income, and each application is reviewed individually by the lender. Scotsman Guide named Lendmire a Top Mortgage Workplace in both 2025 and 2026.
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References
1. CFPB – Regulation Z §1026.3
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 Big Can an Asset Depletion Jumbo Loan Be? · How Asset Depletion Income Differs on a Primary Home vs Rental · How an Asset Depletion Mortgage Works
Guides: Asset-Based Mortgage in Pennsylvania
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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Legal disclosures. Lendmire (NMLS# 2371349) is a state-licensed mortgage brokerage that arranges financing through wholesale lender relationships. Lendmire is not a direct lender, depository institution, or registered financial advisor. The discussion above is general informational content about real estate financing — it is not financial, legal, or tax advice, and readers should consult licensed professionals for guidance on their individual circumstances. Loan inquiries are subject to lender underwriting; this article does not represent a commitment to lend. Loan terms, rates, and qualification standards vary by borrower, property, and state, and are subject to change at any time. Equal Housing Opportunity. NMLS Consumer Access: nmlsconsumeraccess.org.