The Quick Read: On the asset depletion path, the new loan is capped at 60% of the property’s value on a cash-out refinance, so your cash is that ceiling minus your existing liens and costs. The ceiling does not rise because the loan is large, and the cash shrinks as your payoff balance grows. Everything below is subject to underwriting and select lender programs.
- Asset depletion path: cash-out tops out at 60% loan-to-value on a principal residence, a second home or an investment property, on loans from $125,000 to $3,500,000.
- Asset qualifier path: loans run to $4,000,000, but the cash-out leverage is set by the lender and is not published, so a firm figure comes only from a lender review.
- Cash is net: the new loan minus your payoff, costs and any other liens you clear.
- Cash-out proceeds never count as qualifying assets on either path.
- One path at a time: the figures from the two paths are never blended.
What Does “Above $1 Million” Change?
Above $1 million, the practical change is that your assets must carry more of the file. The leverage ceiling stays the same, but a bigger loan needs bigger documented balances behind it. Large loans also sit outside the agency world. Conforming loan limits are set annually, with a higher ceiling in high-cost areas, and past that ceiling you are in jumbo territory. Scotsman Guide reports that non-QM programs often exceed conforming limits and that a non-QM jumbo loan can reach $3 million or more.
Asset-based financing is one of those non-QM routes. It is built for borrowers with large balances and little documented income: retirees, people who sold a business, inheritance recipients and households living on a portfolio. Lendmire brokers asset-based mortgage programs through select lenders in its network and does not lend directly. Every file is fully underwritten. The assets are documented with statements, and the difference is that you provide no traditional personal-income documentation, pay stubs or employment verification.
The Formula Behind Your Cash
Your cash comes from one subtraction. Take the new loan, then remove the payoff of your existing first mortgage and any second liens, then remove closing costs. What remains is paid to you.
The new loan is limited by the lower of two things:
1. The leverage ceiling. Appraised value times the path’s cash-out percentage.
2. The qualifying test. Your assets must satisfy the path you are on.
Here is a way to see the effect without dollar figures. Say your existing mortgage equals 45% of the property’s value. On the asset depletion path at a 60% cash-out ceiling, the gap is 15% of value before costs. If your existing mortgage is already 55% of value, the gap is only 5% of value. A larger payoff leaves less room, no matter how large the home is. Terms vary by lender guidelines, property type, leverage, credit profile, and full file review.
The Two Paths, Side by Side
The asset qualifier path covers the whole loan with eligible assets and documents no employment or income. The asset depletion path divides usable assets by 60 months to produce a qualifying income, which then runs through the debt-to-income test. A borrower is qualified on one path at a time, and the cash-out answer differs on each.
| Factor | Asset qualifier | Asset depletion |
|---|---|---|
| Loan amounts | Up to $4,000,000 | $125,000 to $3,500,000 |
| Refinance leverage | 75% | 60% on cash-out |
| Cash-out leverage | Lender-set, not published | 60% on all three occupancy types |
| Investment property | Not offered | Offered, 60% cash-out |
| Seasoning | 60 days, two statements per account | Statements 120 days old plus one within 45 days |
On the qualifier path, 75% is the refinance ceiling for a principal residence or second home. Whether a cash-out is allowed within that, and at what percentage, is the lender’s decision. That is why this article states no qualifier-path cash-out figure. A broker can find out which lenders in the network allow it for your file, but no honest page can promise it.
On the depletion path, the answer is firm: 60% on a cash-out refinance, whether the home is a principal residence, a second home or an investment property. All of it is subject to underwriting.
Why Large Loans Leave Less Cash Than Equity Suggests
Equity is the value minus what you owe. Cash is the equity left after the leverage ceiling, the payoff and the costs. On the depletion path, 40% of value must stay as equity in the property. That is true whether the home is worth a little over $1 million or several million.
So an owner with a large home and a large mortgage can discover that the equity they see on paper is mostly unavailable. Someone who owns a property free and clear has the most room. Someone already near 60% of value has almost none, and the refinance becomes more of a restructuring than a cash event.
The $3,500,000 loan ceiling on the depletion path adds a second limit. A very high-value property can reach the loan-size cap before it reaches the leverage cap. The qualifier path runs higher, to $4,000,000, but its cash-out terms depend on the lender.
Your Appraisal Moves the Number Faster Than You Expect
The appraisal sets the value used in the leverage test, and the loan ceiling moves with it. Your payoff balance does not move. Every dollar of ceiling lost to a low appraisal therefore comes straight out of your cash.
| Appraisal vs. your expectation | Effect on 60% ceiling | Effect on your cash |
|---|---|---|
| Matches | None | None |
| 5% lower | Falls by 3% of expected value | Falls by that same 3% |
| 10% lower | Falls by 6% of expected value | Falls by that same 6% |
If you expected a ceiling that left room equal to 8% of value, a 10% appraisal miss would cut that room to 2%. Costs still come out of what remains. Many borrowers treat the appraisal as a formality, but on a cash-out it decides the outcome.
Which Assets Count Toward Qualifying?
Your assets determine whether you qualify, even though they are not the cash you receive. The two paths treat them differently, so keep the tables separate.
On the asset qualifier path, the share of each balance that counts is:
- Brokerage accounts, certificates of deposit, money market and savings: 100%.
- Retirement accounts: 90% under age 59½ and 100% at 59½ or older.
On the asset depletion path, the share that counts is:
- Cash accounts and certificates of deposit: 100%.
- Securities: 80%, so 20% does not count.
- Retirement accounts: 70% at any age, so 30% does not count.
- Real-estate equity: 60%.
That matters for founders and shareholders whose net worth sits mostly in their own company. The route that works is documented liquid assets: seasoned proceeds from a sale or buyout, cash, public securities and retirement accounts at the percentages above. Cryptocurrency, precious metals and collectibles follow a similar logic. They are not published as eligible, and the documented route is converting them to a seasoned cash balance in a regulated account.
What the Depletion Math Looks Like
On the depletion path, usable assets are divided by 60 months to create monthly qualifying income. Consider an illustration only: $1,500,000 in securities counts at 80%, which is $1,200,000. Add $300,000 in cash at 100%. That is $1,500,000 of usable assets, and 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.
The path also has asset minimums. Qualified assets must be at least the lesser of $1,000,000 or 1.25 times the loan balance. On a loan above $1 million, 1.25 times the loan is more than $1,250,000, so the $1,000,000 figure is the one that applies. When asset depletion is your only income source, the minimum is also never below $250,000 in liquid assets, which the $1,000,000 requirement already exceeds on a loan of this size. If you also have documented income, asset-derived income may supplement it up to a 45% debt-to-income ratio, and in that case the minimum-assets rule does not apply.
Key Terms Defined
Cash-out refinance: A new, larger mortgage that pays off the old one and sends you the difference. The Consumer Financial Protection Bureau describes it as a way to tap home equity.
Loan-to-value (LTV): The loan amount divided by the property’s appraised value.
Asset qualifier path: Eligible assets must equal or exceed the whole loan, and no income is documented.
Asset depletion path: Usable assets divided by 60 months become qualifying income.
Seasoning: How long funds have sat in an account before the lender will count them.
Net cash: The new loan minus payoffs, costs and any other deductions.
What Limits Your Cash Beyond Leverage
Several smaller rules shape the final number.
- Credit. 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. Programs look for no late payments in the last twelve months, and one 30-day late is considered case by case. A housing event needs four years of seasoning on the depletion path.
- Reserves. The qualifier path requires none at or below 75% loan-to-value. The depletion path publishes no reserve months. Because cash-out proceeds never count as assets, any reserves a lender asks for must come from your existing balances.
- Statements. The qualifier path wants 60 days of seasoning and two months of statements per account. The depletion path wants statements at least 120 days old plus the most recent within 45 days. Funds from the sale of a business, an inheritance or a legal settlement are excused from that depletion-path seasoning.
Sizing this correctly is partly a matter of choosing the path. A borrower with a mortgage balance well below 60% of value and big securities holdings may favor depletion. A borrower with enough liquid balances to cover the whole loan outright may favor the qualifier path, though its cash-out terms depend on the lender. A lender’s review of its cash-out terms is what settles the choice.
Common Mistakes on Large Cash-Out Files
- Counting equity as cash. Net proceeds come after payoff, costs and any other liens.
- Using the purchase ceiling on a cash-out. The depletion path allows 80% on a purchase of a principal residence or second home but 60% on a cash-out. Mixing them overstates your cash.
- Assuming private stock helps. Privately held company stock is not an eligible asset on either path.
- Overlooking the second lien. Paying one off counts as cash-out, so the lower ceiling applies to that file as well.
- Mixing the tables. The two paths use different percentages and different tests, and a file is qualified on one at a time.
Getting Your File Ready
Gather the following before talking to a lender:
1. Recent statements for every account you want to use, kept in your name.
2. A payoff statement for each lien on the property.
3. Your estimate of the property’s value, with the understanding that the appraisal decides it.
4. A clear read on whether the home is a principal residence, a second home or an investment property.
5. Documentation of the source of any recent large deposit, such as a sale or settlement.
If the property is an investment property, only the depletion path applies, and the loan is business-purpose. Tax treatment can depend on how the funds are used and how the property is held, so keep clear records and speak with a qualified tax professional before relying on any deduction.
Frequently Asked Questions
Is there a dollar limit on the cash I can take out?
The published limits are on loan size, not on proceeds. The depletion path runs from $125,000 to $3,500,000, and the qualifier path goes to $4,000,000. Within those, your cash is limited by the leverage ceiling and your payoff. Specific cash-out terms on the qualifier path are set by the lender.
Can I take cash out on the asset qualifier path?
Possibly, but the cash-out leverage there is set by the lender and is not published. The published qualifier-path ceilings are 80% on a purchase and 75% on a refinance. A broker can ask lenders in the network whether your file fits, subject to underwriting.
Does the cash I receive count as an asset for qualifying?
No. Cash-out proceeds never count as qualifying assets on either path, and they do not satisfy reserve requirements. Plan qualifying balances separately from the cash you expect to receive. Exact terms depend on the lender’s guidelines, property type, leverage, and a full review of the borrower’s file.
Can I use shares in my own private company?
No. If you have sold or bought out part of the company, the proceeds can count once they are documented as seasoned cash in a regulated account.
Does a bigger loan get me a higher leverage ceiling?
No. On the depletion path the cash-out ceiling is 60% regardless of loan size. A bigger loan mainly raises the documentation burden, since your assets must cover more.
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. Asset-based mortgage lending is available in 16 states: Alabama, California, Colorado, Florida, Georgia, Indiana, Michigan, Montana, New Mexico, North Carolina, Ohio, Pennsylvania, Tennessee, Texas, Virginia and Washington. All terms are subject to underwriting and are 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.
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. Scotsman Guide: One out of 20 mortgages are non-QM
2. CFPB: CFPB Report Finds Cash Out Mortgage Refinance Borrowers Improve Credit Scores
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 Much Cash Comes Out of an Asset-Based Cash-Out Refinance on a Non-Warrantable Condo? · Best Asset-Based Cash-Out Refinance Program When the Appraisal Comes in Low · How Much Cash Comes Out of an Asset-Based Cash-Out Refinance With Six Months of Reserves?
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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Important disclosures. Lendmire (NMLS# 2371349) is a licensed mortgage brokerage. Lendmire is not a direct lender, depository institution, or financial advisor. All loan inquiries are subject to lender underwriting; this article does not constitute a commitment to lend. Rates, terms, and program guidelines are subject to change without notice and vary by borrower profile, property type, and state. Information in this article is general in nature and is not financial, legal, or tax advice. Equal Housing Opportunity. NMLS Consumer Access: nmlsconsumeraccess.org.