The Quick Read: The ceiling depends on the path, but it is clear: on the asset depletion path, the new loan can reach 60% of the home’s value on a cash-out refinance, whether the home is a principal residence, a second home or an investment property, and your cash is that loan minus your payoff and closing costs. The other path, asset qualifier, lets the lender set cash-out terms, and those are not published.
- Your cash is the new loan minus the old mortgage payoff and closing costs.
- Lenders review every file in full, so the cap is subject to underwriting.
- Cash-out proceeds never count toward the assets you qualify with.
- You skip traditional personal-income documentation, pay stubs and employment verification, but your statements are fully documented.
- Both your equity and your assets set limits on the check, and the smaller limit wins.
What “No Income Verification” Actually Means Here
You are not handing over tax returns, pay stubs or an employment letter. That is the whole meaning. Every file is still fully underwritten, and your assets are documented with statements.
Think of a retiree living off a brokerage account, a founder who sold a company, or a household that received an inheritance. Their balances are large and their paychecks are small or absent. The asset-based mortgage program exists for that borrower. Lendmire is a mortgage broker, so it arranges these loans through select lenders in its network. The lenders review and approve each file.
There are two paths, and you qualify on one at a time:
- Asset qualifier: your eligible assets must equal or exceed the entire loan amount. No employment or income is documented.
- Asset depletion: your eligible assets are divided by 60 months to create a monthly qualifying income. That income must carry the housing payment and your other debts.
Every figure below names its path. Do not blend them.
The Formula: How the Cash Is Calculated
Cash out equals the maximum new loan, minus the payoff of existing liens, minus closing costs. The maximum new loan is the home’s appraised value times the leverage cap for your path and property.
Here are the steps:
1. The home is appraised. That value drives the cap.
2. The lender multiplies value by the cash-out cap.
3. The new loan pays off your current first mortgage and any other liens, such as a HELOC.
4. Closing costs come out.
5. What remains is yours.
The Consumer Financial Protection Bureau explains the same mechanics: a new, larger loan pays off the old mortgage, and the rest comes to you as cash. A larger loan also means a larger payment, which matters on the depletion path because the payment runs through a debt-to-income test.
Percentages show the effect better than dollars. Say your current loan equals 35% of the home’s value. At a 60% cash-out cap, the new loan can be 60% of value. The gap, about 25% of value, is the most you could receive before closing costs. If your current loan already equals 60% of value or more, a cash-out has nothing to release.
That arithmetic is illustrative, and the lender’s own calculation governs.
What Each Path Allows
On the asset depletion path, cash-out is capped at 60% of value. On the asset qualifier path, the program publishes a refinance cap but not a cash-out cap. Whether cash-out proceeds are allowed there, and at what leverage, is the lender’s call. Treat any qualifier-path cash-out number you hear as unconfirmed until a lender puts it in writing.
| Path and property | Purchase | Rate-and-term refinance | Cash-out refinance |
|---|---|---|---|
| Qualifier, principal or second home | 80% | 75% (refinance) | Set by lender, not published |
| Depletion, principal or second home | 80% | 80% | 60% |
| Depletion, investment property | 65% | 65% | 60% |
All figures are loan-to-value ceilings, subject to underwriting and available through select programs. They are ceilings, not offers. Your credit, loan size and property can all pull the cap lower.
Loan sizes differ too. The qualifier path runs up to $4,000,000. The depletion path runs from $125,000 to $3,500,000.
An investment-property cash-out on the depletion path is a business-purpose loan. That changes how the file is reviewed compared with a standard owner-occupied mortgage.
Why Cash-Out Proceeds Cannot Qualify You
Cash you pull out never counts as a qualifying asset. This is a hard rule on the depletion path. It closes a loophole that would otherwise let a borrower borrow cash, then use that cash to prove ability to repay the same loan.
The practical effect is simple. Your portfolio must support the loan on its own, before any proceeds. If you plan to cash out and then use that cash as your asset base, the file does not work.
Will Your Assets Support the Loan You Want?
Equity sets the cash ceiling. Your assets decide whether you qualify for the loan at all. Both limits apply, and the smaller one wins.
What counts on the qualifier path
The share of each balance that counts looks like this:
- Brokerage accounts, certificates of deposit, money market and savings count at 100%.
- Retirement accounts (401(k) and IRA) count at 90% if you are under 59½, and 100% at 59½ or older.
- Accounts combine.
Here is an illustration. Take an $800,000 loan with $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). Usable assets total $800,000, which covers the loan and is reviewed on assets alone, subject to underwriting.
What counts on the depletion path
The share that counts is lower:
- Cash accounts and certificates of deposit count at 100%.
- Securities count at 80%.
- Retirement accounts count at 70% at any age.
- Real-estate equity counts at 60%.
Total the usable assets, divide by 60 months, and you have monthly qualifying income. Take $1,500,000 in securities (80% counts, so $1,200,000) plus $300,000 in cash (100% counts, so $300,000). Together that 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.
The depletion path’s minimums
You need qualified assets of at least the lesser of $1,000,000 or 1.25 times the loan balance. When assets are your only income source, you also need at least $250,000 in liquid assets. Because a cash-out enlarges the loan, it raises the asset bar too.
Asset income can instead supplement documented income, up to a 45% debt-to-income ratio. In that case the minimum-assets rule is waived.
What Does Not Count (Including Privately Held Stock)
Founders and shareholders ask about privately held stock, so here is the plain answer: privately held shares are not eligible on either path, at any percentage. The route is documented liquid assets. That means seasoned proceeds from a sale or buyout, cash, public securities and retirement accounts, each at its percentage.
The depletion path also excludes 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, collectibles, pledged or borrowed funds, and business-account balances beyond your ownership share are not published as eligible on either path. The workable route is converting them to a seasoned cash balance in a regulated account. The lender reviews where that money came from.
Seasoning, Statements and Credit
The assets are documented on both paths. The rules differ:
- Qualifier path: 60 days of seasoning and two months of statements for each qualifying account. The credit floor is 600.
- Depletion path: statements 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. Credit follows the lender’s score and loan-amount matrix. A first-time investor needs 700.
Housing history is read as 0x30x12. One 30-day late in the last twelve months is considered case by case. Multiple bankruptcies are not eligible. A housing event needs four years of seasoning on the depletion path.
Reserves also differ. The qualifier path requires none at or below 75% loan-to-value, and above that the lender sets them. The depletion path has no published reserve months.
What Shrinks Your Check
Leverage is only the first limit. Several things take cash away before it reaches you:
- Your existing balance. A paid-off home releases the most. A home with a large first mortgage releases little.
- A second lien or open HELOC. It must be paid off from the new loan, which reduces proceeds.
- Closing costs. They come out of the gross amount.
- The appraisal. A lower value lowers the cap in direct proportion.
- Your asset base. On the depletion path, asset minimums and the debt-to-income test can cap the loan below the equity limit.
The CFPB’s cash-out research draws the line between a cash-out refinance and a rate-and-term refinance. The difference is whether you take money out. It also separates a cash-out from a HELOC or home equity loan, which sit behind your first mortgage instead of replacing it.
Which Path Fits You?
Pick the qualifier path when your liquid assets cover the whole loan and you want no income documented. Its published refinance cap is 75% of value, but the cash-out terms are the lender’s. If you need a firm cash-out number, ask before you plan around it.
Pick the depletion path when your assets are large but do not cover the loan outright. Converting them to income lets you borrow against a portfolio you would rather not liquidate. The price is a 60% cash-out cap and the debt-to-income test. Final terms depend on the lender’s guidelines, the property type, and the borrower’s complete credit picture.
For many borrowers the real question is simpler. If you want a modest amount of cash and have meaningful equity, equity is rarely the barrier. Your asset base and the size of the new payment are. A strong equity position on a smaller request gives the file more room.
When a Cash-Out Is the Wrong Tool
Three situations call for a second look:
- A small cash need against a large existing mortgage. Replacing the whole loan to release a small slice can be an expensive way to borrow. A second-lien product may fit better. Compare options before you commit.
- Little or no equity under the cap. On the depletion path, if your balance is at or near 60% of value, there is nothing to release.
- A plan to use the proceeds as your qualifying assets. That does not work on the depletion path.
If you need the money soon and the home is a rental, ask whether a different structure suits you better. Every program has trade-offs, and programs change.
Frequently Asked Questions
Can I get more cash by using the qualifier path?
Possibly, but no cash-out figure is published for the qualifier path. The lender decides whether cash-out proceeds are allowed and at what leverage. The depletion path has a published 60% cash-out cap. Ask for the qualifier-path terms in writing before you plan around them. Leverage, reserves, and pricing vary by lender and program; the final terms follow the full file review.
Does this skip all documentation?
No. You skip traditional personal-income documentation, pay stubs and employment verification, but the file is fully underwritten. You document assets with statements, plus the appraisal, current mortgage and property details. Programs change, and each file is reviewed individually.
Can I use my 401(k) or IRA?
Yes, at a percentage. On the qualifier path, retirement balances count at 90% under age 59½ and 100% at 59½ or older. On the depletion path, they count at 70% at any age.
Is my business equity or private company stock eligible?
No. If you sold or converted the business, the seasoned cash from that sale can count, subject to documentation and review.
What happens to a HELOC on the property?
It is paid off from the new loan, which reduces your net cash. Plan for that payoff when you estimate proceeds.
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 options based on your statements, the property, credit profile, leverage, and your goals. Lendmire’s consumer lending is licensed in 16 states. Every file is subject to lender guidelines and underwriting, and nothing here is a commitment to lend.
Key Terms Defined
Cash-out refinance: a new, larger mortgage that pays off the old one and gives you the difference as cash.
Loan-to-value (LTV): the loan amount as a percentage of the home’s appraised value.
Seasoning: the time assets must sit in your accounts, documented by statements, before they count.
Debt-to-income (DTI): your monthly debts as a share of your monthly qualifying income.
Asset depletion: a method that divides eligible assets by 60 months to create qualifying income.
For the mechanics of pulling equity out of a rental 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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Informational only. Not a Loan Estimate, approval, or commitment to lend. Program availability and eligibility are subject to lender guidelines, credit approval, property review, and underwriting.
References
1. CFPB: Using Home Equity guide
2. CFPB Office of Research: A Look at Cash-Out Refinance Mortgages and Their Borrowers
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 vs Bank Statement Cash-Out Refinance for Retirees
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
- Mortgage Loan Originator · NMLS# 1129696 · Verify on NMLS Consumer Access
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Disclosure information. Lendmire is a state-licensed mortgage brokerage under NMLS# 2371349. Lendmire is not a depository institution, direct lender, or financial advisor — all loans referenced are placed through wholesale lender partners and are subject to each lender's underwriting standards. This article is provided for general informational purposes and is not a commitment to lend, nor does it constitute financial, legal, or tax advice. Loan programs, terms, rates, and qualification standards change without notice and depend on borrower profile, property type, and the state in which the subject property is located. Equal Housing Opportunity provider. NMLS Consumer Access: nmlsconsumeraccess.org.