The Quick Read: The check equals the new loan minus your payoff, closing costs, any prepayment charge and any junior lien, and no fixed dollar cap sits on top of that. The amount depends on your appraised value, your payoff and the path you qualify on. On the asset depletion path, cash-out stops at 60% of value on a principal residence, a second home or an investment property, subject to underwriting.
- The new loan is value times the leverage cap. Everything you owe or pay comes out of that number.
- “Under $150,000” can mean the cash you receive or the new loan balance. The first is common. The second runs into a loan-size floor.
- Cash-out proceeds cannot be counted toward your qualifying assets.
- On the asset qualifier path, whether cash-out is allowed, and at what leverage, is set by the lender and is not published.
- Small loans leave less room, because fixed costs take a bigger bite of a smaller check.
This article is for people with large balances and little documented income: retirees, business sellers, inheritance recipients and households living off a portfolio. Lendmire is a broker. It arranges these loans through select lenders in its network, and the figures here are ceilings and floors, never offers.
What Does “Under $150,000” Actually Mean?
The phrase has two readings, and they lead to different answers.
Reading one: the cash you receive is under $150,000. This is the typical case. Most cash-out checks on modest properties land below that line without any special effort. The formula in the next section handles it.
Reading two: the new loan balance is under $150,000. This is the harder case. On the asset depletion path, loans run from $125,000 to $3,500,000. A loan between $125,000 and $150,000 sits right at the bottom of that window. At 60% cash-out leverage, the property must appraise at about 1.67 times the loan. That is a lot of value for a small loan, and it is the reason this size band is narrow. Terms depend on the lender’s guidelines, the property type, the leverage, and a full review of the credit profile.
The asset qualifier path covers loans up to $4,000,000. Its low end is not published, and lenders set their own loan-size floors. A very small cash-out can therefore fail on size alone, before the cash math even matters.
The One Formula That Answers the Question
The check is the maximum new loan, minus what you owe and what you spend. Here it is in order:
1. Appraised value times the cash-out leverage cap gives the maximum new loan.
2. Subtract your payoff: principal, accrued interest, any second lien or home equity line, and any prepayment charge on the old loan.
3. Subtract closing costs that are not rolled into the new balance.
4. What remains is your net cash.
The CFPB’s research blog on cash-out refinance borrowers describes the same mechanics. The new loan replaces the old mortgage and exceeds the payoff, and the borrower keeps the difference. The CFPB’s guide to using home equity adds the part people forget: a bigger loan means a higher payment afterward.
An asset-based loan changes how you qualify. It does not change this subtraction.
Worked Example: Cash as a Share of Value
The table below uses shares of appraised value instead of dollars, because your numbers will differ. It assumes the asset depletion path at 60% cash-out leverage. These are modeled assumptions, not quotes, and the lender’s own calculation governs. Final terms depend on the lender’s guidelines, the property type, and the borrower’s complete credit picture.
| Payoff (share of value) | New loan (60% of value) | Left before costs | Result |
|---|---|---|---|
| 30% | 60% | 30% of value | Meaningful check |
| 45% | 60% | 15% of value | Moderate check |
| 55% | 60% | 5% of value | Costs may eat most of it |
| 62% | 60% | Negative | You bring cash to closing |
Read it from the bottom. When your payoff plus costs exceeds 60% of value, there is no cash-out at all. Your break-even appraisal is your payoff plus costs, divided by 0.60.
Now apply the second reading of “under $150,000.” If the new loan must be at least $125,000, you need enough value to support it at 60%. A property that supports only a loan below that floor does not fit this program, however large the equity looks on paper.
Two Paths, Two Different Caps
Asset-based mortgages come in two forms, and a borrower is reviewed on one at a time.
The asset qualifier path covers the whole loan with eligible assets. You document no employment or income. The eligible assets, after the credit percentages below, must equal or exceed the entire loan amount.
The asset depletion path divides your usable assets by 60 months to create a monthly qualifying income. That income carries the housing payment and your other debts through the debt-to-income test. Debt-to-income is the share of monthly income that goes to debt payments.
Here is how the cash-out cap works on each:
| Factor | Asset qualifier path | Asset depletion path |
|---|---|---|
| Cash-out leverage | Lender-set, not published | 60% on residence, second home or investment property |
| Refinance ceiling | 75% on a refinance | 80% on a rate-and-term on a residence or second home; 65% on a rate-and-term on an investment property |
| Loan amounts | Up to $4,000,000 | $125,000 to $3,500,000 |
| Occupancy | Principal residence or second home | Also investment property |
Never assume a figure from one column applies to the other. The qualifier path’s 75% refinance ceiling is not a cash-out promise. If you want cash out on the qualifier path, the lender decides whether it is available, and the honest answer comes only from a file review.
The depletion path is where cash-out has a published number. It is also the only path where an investment property fits. A loan on a principal residence or second home is a consumer mortgage. A loan on an investment property is a business-purpose loan, and lenders review it differently from an owner-occupied mortgage.
Why Your Own Proceeds Don’t Count
A common trap: borrowers assume the cash they pull out can serve as qualifying money. On the depletion path, it cannot. Cash-out proceeds never count as qualifying assets.
You must qualify on assets you already hold, documented with statements. The new check is not one of them. Plan the file so your existing balances carry the loan, and treat the proceeds as spendable money rather than part of the qualification.
What Counts as an Asset (and at What Percentage)
The percentages below are the share of each balance that counts. The haircut is the part that does not count.
Asset qualifier path:
- Brokerage accounts, certificates of deposit, money market and savings count at 100%.
- Retirement accounts count at 90% under age 59½ and 100% at 59½ or older.
- Accounts combine.
Asset depletion path:
- Cash accounts and certificates of deposit count at 100%.
- Securities count at 80%, so 20% of the balance is the haircut.
- Retirement accounts count at 70% at any age, leaving a 30% haircut.
- Real-estate equity counts at 60%.
Several other holdings are not eligible on the asset depletion path: stock options, non-vested restricted stock units, custodial accounts, deferred compensation, escrow accounts, foreign funds and cash on hand. Cryptocurrency, precious metals and collectibles are not published as eligible either.
If your wealth sits in one of those, the route is documented liquid assets. A sale or buyout converted to a seasoned cash balance in a regulated account works, and the lender reviews the source.
Two illustrations show the shape of the math, and the lender’s calculation governs:
- Qualifier path: an $800,000 loan, supported by $330,000 in brokerage accounts (100% = $330,000), $300,000 in a 401(k) under 59½ (90% = $270,000) and $200,000 in savings (100% = $200,000). The counted amounts add up to $800,000 of usable assets, which equals the loan, so it qualifies on assets alone.
- Depletion path: $1,500,000 in securities (80% = $1,200,000) plus $300,000 in cash (100% = $300,000) is $1,500,000 of usable assets. Divided by 60 months, that is $25,000 of monthly qualifying income. That income then carries the housing payment and other debts through the debt-to-income test.
Seasoning and Minimums That Hit Small Loans
Seasoning is how long money must sit in your account before the lender counts it.
On the qualifier path, expect 60 days of seasoning and 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. Funds from the sale of a business, an inheritance or a legal settlement are excused from that seasoning.
The depletion path also sets a minimum on assets: the lesser of $1,000,000 or 1.25 times the loan balance. That minimum is never below $250,000 liquid when asset depletion is your only income source. On a loan in the $125,000 to $150,000 band, 1.25 times the loan is less than $250,000, so the $250,000 liquid floor is the number that actually binds. Asset-derived income can also supplement documented income up to a 45% debt-to-income ratio, and the minimum-assets rule is waived when it does.
Credit matters too. The qualifier path has a 600 minimum score. The depletion path follows the lender’s matrix for scores and loan amounts. Housing history runs 0x30x12, and one 30-day late in the last twelve months is considered case by case. Multiple bankruptcies are not eligible. A housing event needs 4 years of seasoning on the depletion path.
What Shrinks Your Check
Most of the gap between the gross loan and your net comes from a short list.
- Payoff. This is the biggest item. It includes accrued interest and any junior liens.
- Prepayment charge. A prepayment penalty is a fee some loans charge for paying them off early. Check your old note before you assume your payoff number.
- Closing costs. These come off proceeds or get rolled into the loan. They are a fixed-size bite, which weighs more on a smaller check. Pricing and fee detail comes with a file review.
- An appraisal that lands low. A modest miss in value can turn a small cash-out into cash due at closing. At 60% leverage, every dollar of lost value costs you 60 cents of loan. Each figure is subject to lender guidelines and a complete review of property type, leverage, and credit.
The reserve picture differs by path. On the qualifier path, none are required at or below 75% loan-to-value, and above that the lender sets them. The depletion path publishes no reserve months.
Mistakes That Make the Number Look Bigger Than It Is
Treating cash-out as value minus payoff. It is the new loan minus payoff and costs. The leverage cap sits in the middle.
Using your own value estimate. The lender orders the appraisal. Your estimate or an after-repair guess does not set the loan.
Assuming asset-based means no paperwork. The loan is fully underwritten and the assets are documented with statements. What you skip is tax returns, pay stubs and employment verification.
Mixing the two paths. A 75% figure from one path and a 60% figure from the other do not combine into a single answer.
Chasing the maximum. More cash means a bigger loan and a higher payment afterward. On the depletion path, that payment must still fit the debt-to-income test.
When It Doesn’t Pencil Out
The honest answer for many small properties is that cash-out does not make sense.
A low-value property with a healthy payoff leaves a thin margin at 60%. Fixed costs then take a large share of what is left. If the loan would fall below the $125,000 floor on the depletion path, the program is not the right fit.
You have alternatives. A rate-and-term refinance on the depletion path allows higher leverage, 80% on a residence or second home and 65% on an investment property, though it returns no cash. A home equity line may fit a small draw better. And if your need is small, selling or drawing down a liquid asset may cost less than a refinance.
For a deeper look at how a file moves through review, see Lendmire’s piece How Lenders Underwrite an Asset-Based Cash-Out Refinance Under $150,000 Property Value. For help picking among programs, see Lendmire’s article on the best asset-based cash-out refinance program on a property worth under $150,000.
The short version of the strategy question is this. If equity is large and the payoff is small, cash-out at 60% can produce a real check even on a modest property. If the payoff already sits near the cap, the better move is usually to skip the cash-out. Lendmire’s asset-based mortgage program is built for the first case, and a file review shows which one you are in.
Key Terms Defined
Asset-based mortgage: a loan where eligible assets, not employment income, support the qualification.
Cash-out refinance: a new loan larger than your payoff, where you keep the difference as cash.
Loan-to-value (LTV): the new loan divided by the appraised value, shown as a percentage.
Payoff: the full amount needed to retire your current mortgage and any junior liens.
Net proceeds: the cash you receive after payoff, costs and charges come out.
Seasoning: the time money must sit in an account before the lender counts it.
Prepayment penalty: a fee some loans charge if you pay them off early.
Frequently Asked Questions
Is there a dollar cap on cash-out under this program?
No fixed dollar cap exists. The ceiling is the leverage percentage on the appraised value, minus your payoff and costs. On the asset depletion path that percentage is 60% for cash-out, and the loan must also stay within the $125,000 to $3,500,000 window, subject to underwriting.
Can I take cash out on the asset qualifier path?
Whether cash-out proceeds are allowed on that path, and at what leverage, is set by the lender and is not published. The qualifier path covers the whole loan with eligible assets and documents no income. A file review is the only way to get a real answer on cash-out there.
Do I need to show income on a cash-out refinance like this?
On the qualifier path, you document no employment or income, because assets cover the full loan. On the depletion path, your assets are converted into a monthly qualifying income by dividing usable assets by 60 months. In both cases the file is fully underwritten and your assets are documented with statements.
Does my cash-out money count toward qualifying?
No. On the depletion path, cash-out proceeds never count as qualifying assets. You qualify on balances you already hold, documented with statements and meeting the seasoning rules.
What if my stock is in a private company I own?
Privately held company stock is not an eligible asset on either path, and it appears on neither path’s list of counted assets. The route is documented liquid assets: seasoned proceeds from a sale or conversion, cash, and public securities and retirement accounts at their counted percentages.
If You Are Qualifying on Assets, Not Income
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.
The cleanest cash-out files tend to be the ones where the payoff stays far below 60% of value, so run that single comparison before anything else.
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.
A deeper walk-through of investment-property equity extraction lives in Lendmire’s guide to cash-out refinance on an investment property.
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References
1. CFPB: Office of Research Blog, A Look at Cash-Out Refinance Mortgages and Their Borrowers
2. CFPB: Using Home Equity Guide
This article is part of Lendmire’s asset-based mortgage program — full qualification details, guidelines, and scenarios live on the program page.
Related reading: Asset-Based vs Bank Statement Cash-Out Refinance With a 660 Credit Score · Can You Get Approved for an Asset-Based Cash-Out Refinance With No Income Verification?
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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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.