The Quick Read: An underwriter sizes the loan from the property’s appraised value first, then checks your assets, and a low value can cap the loan below the program’s minimum before your assets ever matter. Through select programs in Lendmire’s wholesale network, the leverage ceiling times the value sets the loan. The loan floor then decides whether the file exists at all.
- On the asset depletion path, a cash-out refinance tops out at 60% loan-to-value, and loans start at $125,000, subject to underwriting.
- The cash-out ceiling on the asset qualifier path is set by the lender and is not published, so no figure is promised.
- Cash-out proceeds never count as qualifying assets.
- Your assets are fully documented with statements. What you skip is tax returns, pay stubs and employment verification.
- When the value is low, a rental-income loan, a bank statement loan or a home equity line may fit better.
This page is written for people with large balances and little documented income: retirees, business sellers, heirs, and households living on a portfolio. The honest answer for a property under $150,000 is that the math is tight. The sections below show exactly where.
Key Terms Defined
Asset-based mortgage: A home loan where approval rests on your documented assets rather than your paycheck or tax returns.
Asset qualifier path: Your eligible assets, after credit percentages, must equal or exceed the entire loan. No employment or income is documented.
Asset depletion path: Usable assets are divided by 60 months to create a monthly qualifying income. That income then runs through the debt-to-income test.
Cash-out refinance: A new, larger loan that pays off the old one and hands you the difference in cash.
Loan-to-value (LTV): The loan amount divided by the property’s appraised value.
Haircut: The part of an asset that does not count. If securities count at 80%, the haircut is 20%.
Seasoning: How long funds must sit in your account, shown by statements, before the lender counts them.
Loan floor: The smallest loan a program will write.
What Does Asset-Based Cash-Out Actually Mean?
It means the lender looks at your balance sheet instead of your income. You still go through full underwriting. The assets are documented line by line. The property is appraised. Credit is reviewed.
Two paths exist, and a borrower is qualified on one path at a time. On the qualifier path, your eligible assets must cover the whole loan amount. On the depletion path, your assets become monthly income, and that income must carry the housing payment and your other debts.
Which one fits depends on how much you hold relative to the loan. If your assets exceed the loan outright, the qualifier path is cleaner. If your assets are large but you want to keep them invested, the depletion path turns them into income on paper. You do not have to sell anything.
Consumer mortgage lending through this program is licensed in 16 states: Alabama, California, Colorado, Florida, Georgia, Indiana, Michigan, Montana, New Mexico, North Carolina, Ohio, Pennsylvania, Tennessee, Texas, Virginia and Washington. Lendmire is a mortgage broker. It places files with select lenders in its network and does not lend or approve. The asset-based mortgage programs page lays out the product in full. Every file is underwritten individually, and nothing here is a commitment to lend.
What Is the Underwriter’s Sequence, Step by Step?
Underwriters work the file in a set order: property and collateral first, then asset eligibility, then the path math, then loan sizing, then credit and reserves. Low-value properties fail early, at sizing, which is why this order matters more than the asset count.
1. Property and occupancy screen. The underwriter confirms what the property is. A principal residence or second home can use either path. An investment property is available only on the depletion path, where the loan is business-purpose.
2. Appraisal. The appraised value sets the ceiling for everything that follows. On a low-value home, a thin set of comparable sales and condition issues can move the number noticeably.
3. Asset eligibility. Each account is checked against the list of eligible asset types. Ineligible holdings drop out entirely.
4. Credit percentages or haircuts. Eligible balances are reduced to the share that counts. The path you are on decides which table applies.
5. Path test. On the qualifier path, usable assets are compared to the full loan amount. On the depletion path, usable assets are divided by 60 months and the result is tested against the housing payment and other debts.
6. Loan sizing. The lender applies the leverage ceiling to the appraised value and checks the result against the loan floor.
7. Credit and housing history. The lender reviews the score, recent mortgage payments, and any housing event.
8. Final file review. Statements, title and insurance are matched to the loan. The lender’s own calculation governs throughout.
Steps two and six carry the weight for this topic. Most of the surprise on small-value files shows up there.
Why Does a Property Under $150,000 Change the Answer?
Because leverage is capped as a percentage of value, and loans have minimum sizes. A low value times a cash-out ceiling gives a small loan. If that loan falls below the floor, the file stops regardless of how large your assets are.
On the depletion path, the cash-out ceiling is 60% LTV for a principal residence, a second home, or an investment property. Loans on that path run from $125,000 up to $3,500,000. Apply 60% to any value under $150,000, and the maximum loan lands below the $125,000 minimum. Even a perfect appraisal at the top of the range cannot close that gap. Terms vary by lender guidelines, property type, leverage, credit profile, and full file review.
Read that plainly: on the depletion path, a cash-out refinance on a property valued under $150,000 does not fit the program’s loan size range. Assets of any size do not change that. This is the “big assets, small loan” paradox. Assets prove you can repay. They do not move the loan floor.
The qualifier path is different in structure. Loans run up to $4,000,000, and the refinance ceiling is 75% on a principal residence or second home. Whether cash-out proceeds are allowed on that path, and at what leverage, is set by the lender and is not published. So the honest approach is to ask about your specific property before assuming anything. A broker can test the file against several lenders’ rules, and the answer can differ from lender to lender.
Smaller loans also carry a fixed-cost problem. Appraisal, title, and processing costs do not shrink with the balance, so they take a bigger bite out of a small cash-out. Compute your net cash after the payoff and costs before you order an appraisal, because the gross loan overstates what you receive.
How Does the Appraisal Work on a Low-Value Home?
The appraisal gives the lender the value that the leverage ceiling multiplies. Appraisers use standard report forms. The Fannie Mae Selling Guide lists Form 1025, the Small Residential Income Property Appraisal Report, for two- to four-unit properties. It also lists Form 1007, the Single-Family Comparable Rent Schedule, which pairs with a one-unit appraisal. Fannie Mae’s appraiser and property underwriting page names the same forms. These are agency form names, and they do not make this an agency loan.
The contrast matters. A rental-income loan leans on the rent schedule to qualify the property. Here, qualification runs on your assets, so the rent schedule is not the deciding figure. Value is.
A low appraisal hurts small properties more in relative terms, because the equity cushion is thin to begin with. A modest drop in value can shave the cash-out to almost nothing once the payoff is subtracted. Cash to you is the new loan minus your payoff, costs, and prepaid items. It is not the LTV percentage of value.
How Are Your Assets Counted?
Counting depends on the path, and the two tables never blend. The figures below show the share of each balance that counts, through select programs and subject to underwriting.
| Asset type | Qualifier path | Depletion path |
|---|---|---|
| Brokerage accounts | 100% | Securities at 80% |
| CDs | 100% | 100% |
| Money market, savings | 100% | Cash accounts at 100% |
| 401(k), IRA | 90% under 59½, 100% at 59½+ | 70% at any age |
| Real-estate equity | Not listed | 60% |
On the qualifier path, accounts combine, and the total must equal or exceed the whole loan. Here is a worked illustration. An $800,000 loan is supported by $330,000 in brokerage accounts (100% counts, so $330,000), $300,000 in a 401(k) held under age 59½ (90% counts, so $270,000), and $200,000 in savings (100% counts, so $200,000). Usable assets total $800,000, and the file is reviewed on assets alone.
On the depletion path, the same logic turns into income. Say you hold $1,500,000 in securities (80% counts, so $1,200,000) plus $300,000 in cash (100% counts). That is $1,500,000 usable, divided by 60 months, for $25,000 of monthly qualifying income. That income then carries the housing payment and other debts through the debt-to-income test. This is illustrative arithmetic, and the lender’s own calculation governs.
Not eligible on the depletion path: custodial accounts, deferred compensation, escrow accounts, foreign funds, cash on hand, privately held stock, stock options, non-vested restricted stock units, and funds from non-regulated financial companies. Cash-out proceeds from this very loan never count as qualifying assets either, so you cannot borrow against the property and use that cash to qualify.
What About Private Stock, Crypto, and Other Odd Assets?
Privately held company stock is not an eligible asset on either path. That is the rule, with no partial credit. If you own a closely held business, the route is a documented sale or buyout. Once the proceeds sit as cash in a regulated account and are seasoned, they count at their normal percentage.
Cryptocurrency, precious metals, collectibles, pledged or borrowed funds, and business accounts beyond your ownership share are not published as eligible on either path. The same route applies: convert to a seasoned cash balance in a regulated account, and the lender reviews the source of the funds.
Founders and shareholders should plan for this early. A sale that closed last month has not necessarily passed seasoning, though sale-of-business, inheritance, and legal-settlement funds are excused from the 120-day statement-age requirement on the depletion path.
What Seasoning, Credit, and Reserves Apply?
Seasoning is the paperwork test. On the qualifier path, funds need 60 days of seasoning, with two months of statements for each qualifying account. On the depletion path, statements must be at least 120 days old at application, plus the most recent statement within 45 days.
Credit is reviewed alongside the assets. The qualifier path publishes a 600 minimum score. The depletion path follows the lender’s matrix, which pairs score with loan amount. A first-time investor on the depletion path needs 700. Housing history is held to 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 4 years of seasoning on the depletion path.
The depletion path also sets minimum assets: the lesser of $1,000,000 or 1.25 times the loan balance. When asset depletion is your only income source, you need at least $250,000 liquid. Asset income can instead supplement documented income, up to a 45% debt-to-income ratio, and then the minimum-assets rule is waived.
Reserves are simple on the qualifier path: none required at or below 75% loan-to-value, and above that the lender sets them. The depletion path has no published reserve months.
Where Does the General Rule Break?
Several edge cases change the outcome, and each is worth checking before you apply.
- Two- to four-unit property. The appraisal uses the unit-by-unit Form 1025, but the value-times-ceiling sizing still governs.
- Low appraisal. The cap falls with value. If your value comes in under the estimate, the floor problem gets worse, not better.
- High assets, low balance on an existing loan. If you already owe very little, the payoff is small and more of the new loan is cash. The loan floor is still the gate.
- Mixed income. Asset-derived income can supplement a paycheck or pension. This sometimes rescues a borderline debt-to-income ratio and waives the minimum-assets rule, subject to the lender’s review.
- Credit blemishes. A recent housing event or multiple bankruptcies can end the file on the depletion path regardless of assets.
- Timing of asset moves. Moving funds between accounts resets seasoning. Large deposits need a documented source.
One practitioner pattern deserves a plain mention. Borrowers with real wealth often assume a small loan is easier than a large one. In practice, small loans run into program floors and fixed costs that large loans never touch, so the work is in finding a lender whose guidelines fit the size.
Which Route Fits a Sub-$150,000 Property?
If the asset-based cash-out cannot reach your loan size, you have other choices. Each trades something.
| Option | Reviewed on | Choose this if |
|---|---|---|
| Asset-based cash-out | Your documented assets | Value and loan size clear the program |
| DSCR rental loan | The property’s rent | The home is an investment rental |
| Bank statement loan | Deposits as income | You have business deposits to show |
| HELOC or second lien | The lender’s own rules | You want to keep your first loan |
For a rental, business-purpose financing that qualifies primarily on the property’s income covering the payment is a separate product. Eligibility is subject to lender guidelines, and loan floors vary by program.
The best program for your situation depends on the property type, your credit profile, how much leverage you need, and how your wealth is held. A broker that shops several wholesale lenders can test those variables against each lender’s guidelines before you pay for an appraisal. As a consumer mortgage, the loan carries TRID disclosures, which a broker walks you through.
What Should You Have Ready?
Bring these items, and the deal works through each step without stalls:
- Two months of statements for every qualifying account (qualifier path), or statements 120 days old plus one within 45 days (depletion path).
- A source explanation for any large deposit.
- Proof of ownership share on any joint or business account.
- Your current mortgage statement for the payoff.
- A rough view of the property’s condition and recent nearby sales.
- For sale proceeds or settlement funds, the closing statement or settlement papers.
Frequently Asked Questions
Can the cash I take out count as a qualifying asset?
No. Cash-out proceeds never count as qualifying assets on the depletion path. The lender looks at assets you hold before the loan, not money created by it. If you need those funds counted, they must already be seasoned in your accounts.
Do I have to sell my investments?
No. On the depletion path, assets convert to income on paper only, by dividing the usable balance by 60 months. You keep the portfolio invested. The statements still have to show the balances and meet the seasoning rules, subject to underwriting.
What if my property value is too low for the loan floor?
Then the asset-based cash-out likely does not fit. On the depletion path, loans start at $125,000, and 60% of a value under $150,000 cannot reach that. The qualifier path publishes no cash-out figure, so a lender-by-lender check is the next step. Other products, such as a rental-income loan or a home equity line, may fit better.
Do I need to show tax returns or pay stubs?
No traditional personal-income documentation, pay stubs, or employment verification are needed. The file is still fully underwritten. Your assets are documented with statements, and credit, property, and title are reviewed like any other mortgage.
Does privately held stock count if I own part of a company?
No. The route is a documented sale or buyout, converted to a seasoned cash balance in a regulated account. After that, the cash counts at its normal percentage.
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.
For how equity extraction works on an investment property, see Lendmire’s guide to cash-out refinance on an investment property.
About Lendmire
As a mortgage broker (NMLS# 2371349), Lendmire helps self-employed and high-net-worth borrowers in 16 states qualify on bank statements, a profit-and-loss statement, 1099s or liquid assets instead of tax returns, through wholesale lenders. Lendmire is never the lender; program terms are set by the lender and its guidelines. Scotsman Guide named Lendmire a Top Mortgage Workplace in both 2025 and 2026.
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References
2. Fannie Mae, Appraisers and Property Underwriting
This article is part of Lendmire’s asset-based mortgage program — full qualification details, guidelines, and scenarios live on the program page.
Related reading: Best Asset-Based Cash-Out Refinance Program After Your Home Value Jumps · Asset-Based Cash-Out Refinance Lenders With Nontraditional Income Proof · Best Asset-Based Cash-Out Refinance Program Right After Buying the Property With Cash
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
- Mortgage Loan Originator · NMLS# 1129696 · Verify on NMLS Consumer Access
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- North Carolina Insurance Producer · License# 19053198 · Property, Casualty, Life, Health · Verify on NAIC SBS
- Lendmire LLC · Firm NMLS# 2371349 · Verify firm licensure
Compliance and disclosures. Lendmire (NMLS# 2371349) is a licensed mortgage broker and is not a direct lender, depository institution, financial advisor, or tax professional. Content in this article is general market analysis and educational information — not financial, legal, or tax advice for any specific situation. Lendmire does not guarantee loan approval; every transaction is subject to underwriting by the funding lender. Mortgage pricing and loan program guidelines are subject to change at any time without notice and vary by borrower characteristics, property type, and state regulations. Lendmire complies with Equal Housing Opportunity. Licensure verification: NMLS Consumer Access.