The Quick Read: The cash you receive depends on your payoff, your closing costs and which qualification path your file runs on, because the maximum loan-to-value on the new loan is a ceiling, not the cash you receive, and cash appears only after the old mortgage, any other liens, closing costs and prepaids are subtracted from that ceiling.
- Net cash equals the new loan, minus every payoff, minus closing costs and prepaids.
- On the asset qualifier path, 75% is the refinance ceiling. Whether cash-out proceeds are allowed there, and at what leverage, is set by the lender and is not published.
- On the asset depletion path, cash-out is capped at 60% on a principal residence, a second home or an investment property, subject to underwriting.
- Cash only exists when the appraised value comfortably exceeds your payoff plus costs at that ceiling.
- On the asset depletion path, cash from the new loan does not count as an eligible asset for qualifying.
What the 75% Actually Caps
The 75% figure caps the loan, so it limits the total you can owe after the refinance. It does not promise you 75% of your home’s value in your pocket. If you owe a mortgage today, that balance gets paid off first from the same 75%.
An asset-based mortgage is reviewed around what you own instead of what you earn. Across the wholesale network Lendmire works through, there are two paths, and a borrower is qualified on one at a time. Under the asset qualifier path, your eligible assets must equal or exceed the entire loan, and no employment or income is documented. Under the asset depletion path, your usable assets are divided by 60 months into a monthly qualifying income. That income then runs through a debt-to-income test.
The paths carry different leverage. The qualifier path allows up to 80% on a purchase and 75% on a refinance. The depletion path allows 60% on a cash-out refinance, whether the property is a principal residence, a second home or an investment property, subject to underwriting. If your title number is 75%, you are looking at the qualifier path’s refinance ceiling, and the lender decides how that ceiling treats cash taken out.
Lendmire is the broker here. It arranges these loans through select lenders in its network, and the lender underwrites and approves every file. The program’s consumer lending is licensed in 16 states.
Key Terms Defined
Loan-to-value (LTV): the new loan balance divided by the appraised value of the property.
Cash-out refinance: a new mortgage that pays off the old one and hands you the leftover as cash.
Rate-and-term refinance: a new mortgage that replaces the old one and returns little or no cash.
Payoff: the amount needed to retire an existing loan or lien at closing, including any accrued interest.
Prepaids: items such as insurance and tax deposits collected at closing, which come out of your proceeds.
Asset qualifier path: qualification where eligible assets must cover the whole loan.
Asset depletion path: qualification where usable assets are divided by 60 months to create monthly income.
Haircut: the part of an asset balance that does not count toward qualifying.
How the 75% Cap Becomes Cash
Start with the formula. Net cash equals appraised value times 75%, minus the payoff of every existing loan, minus closing costs, prepaids and any prepayment charge on the old loan.
Run the steps in order:
1. Value. An appraisal sets the value. On a property with rental income, appraisers commonly add a rent schedule or an operating income form.
2. Apply the cap. Multiply that value by the leverage your path allows.
3. Subtract payoffs. This covers the first mortgage, any home equity line or second lien, and any bridge or hard-money debt. Payoffs can include interest that has accrued since your last statement.
4. Subtract costs. Lender and title fees, prepaids and escrow deposits all come out of the same pool.
5. Check the asset test. The assets that qualify you must cover the whole new loan on the qualifier path, so a bigger cash-out raises the assets you need to show.
Here is what that looks like in percentages of value. Treat the table as an illustration of the arithmetic, not an offer.
| Payoff (% of value) | Room under 75% cap | Cash before costs |
|---|---|---|
| 40% | 35% of value | Largest cushion |
| 55% | 20% of value | Solid |
| 65% | 10% of value | Thin after costs |
| 70% | 5% of value | Costs may erase it |
| 75% | 0% | — |
Costs then reduce the middle column. A payoff at 70% of value leaves five points of room, and closing costs and prepaids can consume most of that. Plan around net cash, never headline equity.
What a Low Appraisal Does to the Cash
A low appraisal hurts more than most owners expect, because the cap is applied to the lower value while your payoff stays the same.
Say you expect a value of 100 and owe 50. Room under the 75% cap is 25 points. If the appraisal lands 10% lower, at 90, the cap drops to 67.5 and the room falls to 17.5 points, so a 10% miss in value cuts your cash by 30% in this example.
The effect is harsher near the edge. Owe 65 and miss by 10%, and room under the cap shrinks from 10 points to 2.5, a 75% cut. At that point the file may become a payoff-only refinance with nothing left over.
Working Backward From the Cash You Need
You can solve for the value required. Add your payoff, your estimated closing costs and prepaids, and the cash you want. Divide that total by 0.75, which is the same as multiplying by about 1.33.
If the appraisal is likely to come in under that number, the target is unrealistic at 75%. At the depletion path’s 60% cap, divide by 0.60 instead, which multiplies the total by about 1.67. The same cash target needs a much higher value there, so pick the path before you pick the number.
Where the Asset-Based Structure Changes the Answer
The loan-to-value math is the same arithmetic on either path. What changes is how you prove you can carry the loan, and that changes how much cash is worth taking.
| Factor | Asset qualifier | Asset depletion |
|---|---|---|
| Refinance leverage | Up to 75% | 80% on a rate-and-term refinance of a principal residence or second home (65% on investment property), 60% on a cash-out refinance |
| Cash-out leverage | Lender-set, not published | 60% on all property types |
| How you qualify | Assets cover the whole loan | Assets ÷ 60 months = income |
| Loan amounts | Up to $4,000,000 | $125,000 to $3,500,000 |
On the depletion path, an investment property is capped lower than a home on a rate-and-term refinance (65% versus 80%), but the cash-out ceiling is 60% for all three. Lendmire’s piece How Lenders Underwrite an Asset-Based Cash-Out Refinance at 60% Loan-to-Value covers that lower tier in detail.
The qualifier path in numbers
Assets are credited at a share of their balance. Brokerage accounts, certificates of deposit, money market and savings count at 100%. A 401(k) or IRA counts at 90% under age 59½ and at 100% from 59½ on. Accounts combine.
Take an $800,000 loan. Say you hold $330,000 in brokerage accounts (100% counts, so $330,000), $300,000 in a 401(k) under 59½ (90% counts, so $270,000) and $200,000 in savings (100%, so $200,000). That is $800,000 of usable assets, which covers the loan on assets alone. The lender’s own calculation governs, subject to underwriting.
The catch for cash-out is plain. The assets must cover the whole new loan, including any amount you borrow to take cash. A bigger cash-out means a bigger loan and a bigger asset requirement.
The depletion path in numbers
Here, securities count at 80%, retirement accounts at 70%, real-estate equity at 60%, and cash and certificates of deposit at 100%. Imagine $1,500,000 in securities (80% counts, so $1,200,000) plus $300,000 in cash (100%). That is $1,500,000 of usable assets. Divided by 60 months, it produces $25,000 of monthly qualifying income, which then has to carry the housing payment and other debts through the debt-to-income test.
The depletion path asks for qualified assets of at least the lesser of $1,000,000 or 1.25 times the loan. It never goes below $250,000 in liquid assets when asset depletion is your only income source.
What does not count
Stock options and non-vested restricted stock units are not eligible on the depletion path. Cryptocurrency, precious metals, collectibles and borrowed or pledged funds 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.
Cash-out proceeds never count as qualifying assets on the depletion path. You cannot borrow against the house and then use that cash to prove you can afford the house. This is why the cash you take out does not make the next loan easier to qualify for.
When You Get Less Than You Expect, or Nothing
Four situations shrink or erase proceeds:
- Your payoff is already close to the cap. At 70% to 75% of value, little or nothing remains once costs come out.
- The appraisal comes in low. The file can shrink to a payoff-only refinance.
- You bought recently. Programs differ on how long you must own a property before an appraisal replaces your purchase price as the value basis. Inside that window, loans are sometimes sized on cost, not appraisal.
- Other liens sit on the property. A home equity line, second mortgage or bridge loan comes out of the same pool as your first mortgage.
A fifth situation hits people who plan to use the cash for a project. A cash-out refinance on a property you are still improving only works if the finished value is high enough that 75% of it exceeds your total cost.
Cash-Out, Rate-and-Term or a Home Equity Line?
| Option | What it does | Cash to you |
|---|---|---|
| Cash-out refinance | Replaces the loan, adds cash | After payoffs and costs |
| Rate-and-term refinance | Replaces the loan, little cash | Near zero by design |
| Home equity line | Adds a second lien | Draws against the line |
A home equity line leaves your first mortgage alone and adds a second lien under that product’s own rules. A cash-out refinance resets the whole loan.
Reading the Closing Statement
Because the asset-based mortgage is a consumer mortgage on a principal residence or second home, standard loan disclosures apply. The federal CFPB guide to the Loan Estimate and Closing Disclosure describes a Calculating Cash to Close table that shows whether money is due from you or paid to you. An investment property is available only on the depletion path, where the loan is business-purpose, so the closing paperwork may be a settlement statement instead.
Either way, your payoff, costs and prepaids appear as deductions from the loan amount. Compare that final number with your plan before you sign.
What to Do With the Cash
The new payment grows on the entire balance, not just the cash you pull out. Taking less cash leaves you a smaller loan and a smaller asset requirement. Check whether the new loan carries its own prepayment terms before you plan a near-term sale, because a quick exit can erase the gain.
For deeper background on the mechanics discussed here, see CFPB Reg Z § 1026.38.
Frequently Asked Questions
Does a maximum loan-to-value mean I receive that share of my home’s value in cash?
No. The maximum caps the new loan, and the old mortgage and all costs come out of it first. Whatever room remains between your current balance and the cap is what is available, before closing costs and prepaids.
Can I take cash out on the asset qualifier path?
Whether cash-out proceeds are allowed on the qualifier path, and at what leverage, is set by the lender and is not published, so the answer comes from the specific program reviewing your file. The depletion path publishes a 60% cash-out ceiling, subject to underwriting. Final terms depend on the lender’s guidelines, the property type, and the borrower’s complete credit picture.
Does the cash I take out count toward the assets I need to qualify?
No. Cash-out proceeds never count as qualifying assets on the depletion path, and borrowed or pledged funds are not published as eligible on either path. Your qualifying assets have to be your own seasoned balances, documented with statements.
I own a private company. Do those shares count as assets?
Privately held company stock is not an eligible asset on either path. A founder’s route is documented liquid assets: seasoned proceeds from a sale or buyout, cash, public securities and retirement accounts at the percentages that count.
What documents does an asset-based file need?
Expect no traditional personal-income documentation, pay stubs or employment verification, but the assets are fully documented. The qualifier path asks for 60 days of seasoning and two months of statements per account. The depletion path asks for statements at least 120 days old plus one within 45 days. Credit starts at a 600 minimum on the qualifier path, and the depletion path follows the lender’s matrix.
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 programs based on your statements, the property, credit profile, leverage, and your goals. All figures here are ceilings and floors, subject to underwriting through select programs, 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 is a mortgage brokerage (NMLS# 2371349) licensed for consumer mortgage lending in 16 states, arranging bank statement and other alternative-documentation mortgages — P&L-only, 1099-only and asset-based paths — through a wholesale lending network. Eligibility is determined by the lender on each file. Scotsman Guide named Lendmire a Top Mortgage Workplace in both 2025 and 2026.
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References
1. CFPB TILA-RESPA integrated disclosure guide to the Loan Estimate and Closing Disclosure
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 on One Income · Asset-Based Cash-Out Refinance Lenders on a Condo
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
- Mortgage Loan Originator · NMLS# 1129696 · Verify on NMLS Consumer Access
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- Lendmire LLC · Firm NMLS# 2371349 · Verify firm licensure
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.