The Quick Read: A retiree qualifies by documenting large liquid balances instead of a paycheck, and the assets can be used in one of two ways: to cover the loan outright, or to be converted into a monthly qualifying income. Pick the path first. Then gather statements, choose the leverage, and submit the file for full underwriting, subject to lender guidelines and not a commitment to lend.
- Asset qualifier path: eligible assets must equal or exceed the entire loan, and no employment or income is documented.
- Asset depletion path: usable assets divided by 60 months become qualifying income, which then runs through the debt-to-income test.
- You are qualified on one path at a time, never a blend of the two.
- Cash-out proceeds never count as qualifying assets.
- You skip traditional personal-income documentation, pay stubs and employment verification. The assets are documented with statements, and the file is fully underwritten.
Retirement does not stop you from borrowing. Many retirees hold seven-figure portfolios and show little taxable income, and a standard income-based underwriter reads that as weak. Asset-based programs read it differently. Across Lendmire’s wholesale network, select lenders review the balances you hold instead of the paycheck you no longer draw. This article walks through how that works, step by step.
What Is an Asset-Based Cash-Out Refinance?
An asset-based cash-out refinance replaces your current mortgage with a larger one and hands you the difference in cash. The lender reviews your file on your liquid assets, not on employment income. Lendmire is a broker, so it arranges these loans through select lenders in its network. The lenders review and approve the file.
Lendmire’s asset-based mortgage programs are consumer mortgages on a principal residence or second home. The asset depletion path also reaches investment property, where the loan is business-purpose. Consumer lending is licensed in 16 states: Alabama, California, Colorado, Florida, Georgia, Indiana, Michigan, Montana, New Mexico, North Carolina, Ohio, Pennsylvania, Tennessee, Texas, Virginia and Washington.
Age is not the obstacle people fear. Federal credit rules say a lender may not use retirement or reaching a particular age to trigger a request for updated information. Your assets still have to be eligible, documented and seasoned. That is where files are won or lost.
Which Path Fits You?
Choose the path that matches how your wealth is held. The table shows the structural differences, subject to underwriting.
| Factor | Asset qualifier | Asset depletion |
|---|---|---|
| How assets are used | Cover the whole loan | Become monthly income |
| Income documented | None | Derived from assets |
| Debt-to-income test | Not used | Applies |
| Loan amounts | Up to $4,000,000 | $125,000 to $3,500,000 |
| Refinance leverage | 75% | Rate-and-term up to 80% (65% on investment property) |
| Cash-out leverage | Set by lender, not published | 60% on all occupancies |
The asset qualifier path fits a retiree whose accounts add up to more than the loan. A household with $800,000 of usable assets seeking an $800,000 loan is the shape it was built for. The lender sets whether cash-out is allowed on this path and at what leverage. That detail is not published, so ask early.
The asset depletion path fits a retiree whose assets are large but smaller than the loan. It also fits someone who wants a cash-out at a stated, published leverage. The lender converts your balances into income and checks that the income carries the new housing payment and your other debts.
A third option is a supplement. Asset-derived income can sit alongside a pension or Social Security, up to a 45% debt-to-income ratio. When it supplements documented income, the minimum-assets rule is waived.
Which Assets Count, and How Much of Each?
Each account counts at a share of its balance. The part that does not count is the haircut. Never blend the two tables below.
| Asset | Counts at |
|---|---|
| Brokerage accounts | 100% |
| Certificates of deposit | 100% |
| Money market and savings | 100% |
| 401(k) and IRA, under 59½ | 90% |
| 401(k) and IRA, 59½ or older | 100% |
Accounts combine. An $800,000 loan backed by $330,000 in brokerage accounts (100%), $300,000 in a 401(k) under 59½ (90%, so $270,000) and $200,000 in savings (100%) counts $800,000 of usable assets. That is reviewed on assets alone, as an illustration. The lender’s own calculation governs.
| Asset | Counts at |
|---|---|
| Cash accounts and CDs | 100% |
| Securities | 80% |
| Retirement accounts, any age | 70% |
| Real-estate equity | 60% |
Take $1,500,000 in securities (80%, so $1,200,000) plus $300,000 in cash (100%). That is $1,500,000 usable, divided by 60 months, or $25,000 of monthly qualifying income. That income then has to carry the housing payment and other debts through the debt-to-income test.
Some holdings do not count on either path. Cryptocurrency, precious metals, collectibles, pledged or borrowed funds, and business accounts beyond your ownership share are not eligible as listed. The documented route is to convert them to a seasoned cash balance in a regulated account, with the source reviewed by the lender. A founder who sold a company would follow the same route using the sale proceeds.
On the depletion path, 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 are also ineligible.
What Do Lenders Look For Beyond Assets?
Credit matters on both paths. The qualifier path publishes a 600 minimum score. The depletion path follows the lender’s matrix, and a first-time investor on that path needs 700. Housing history of 0x30x12 is the target. 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.
The depletion path also sets asset floors. You need qualified assets of at least the lesser of $1,000,000 or 1.25 times the loan balance. When asset depletion is your only income source, you need no less than $250,000 liquid. These are floors and ceilings, never offers, and each is subject to underwriting.
Reserves are simple on the qualifier path: none at or below 75% loan-to-value, and the lender sets them above that. The depletion path publishes no reserve months.
How Does Seasoning Work?
Seasoning is how long funds have sat in your accounts. On the qualifier path, expect 60 days and two months of statements for each qualifying account. On the depletion path, statements must be at least 120 days old at application, plus a recent statement within 45 days. Sale-of-business, inheritance and legal-settlement funds are excused from that seasoning on the depletion path.
A fresh transfer between your own accounts is a common stall point. Move money before you apply, not during.
How to Apply, Step by Step
1. Run the self-check. Decide how much cash you need and what for. Confirm you can carry the new payment without a paycheck. A cash-out raises the balance you owe, and that matters on a fixed budget.
2. Pick the path. If usable assets cover the whole loan, look at the qualifier path. If they do not, or you want a published cash-out leverage, look at depletion.
3. Gather statements. Pull two months for each account. For depletion, add the older statement that meets the 120-day test.
4. Source large deposits. Be ready to explain any recent big deposit with a sale record, estate paperwork or settlement documents.
5. Submit the file. The broker reviews it against the programs in the network and places it with a lender whose guidelines fit.
6. Underwriting. The lender verifies assets, credit and property. An appraisal sets the value that leverage is measured against.
7. Closing. Your old loan is paid off and the new loan funds. Disclosures apply because this is a consumer mortgage.
What Documents Should You Gather?
- Assets: statements for every qualifying account, plus sourcing for large or recent deposits.
- Property: your current mortgage statement, homeowners insurance and tax information.
- Credit and identity: photo ID and credit authorization.
- Not needed: tax returns, pay stubs or employment verification.
Where the General Rule Breaks
A paid-off home. A loan on a home with no mortgage is still a cash-out refinance. It uses the cash-out leverage for the path you pick.
Investment property. Only the depletion path covers it, at up to 60% on a cash-out and 65% on a purchase or rate-and-term. Business-purpose investor loans are treated differently under federal lending rules than a mortgage on your home. A rental owner who instead wants property cash flow to decide the loan is a DSCR borrower, which is a separate program.
Documented-income borrowers. If you prefer to show deposits, a bank statement program is built for that. This asset-based product is for borrowers who qualify on balances.
Using proceeds to qualify. Cash-out proceeds never count as qualifying assets, and an account cannot be counted twice.
Is It the Right Move?
Pulling cash from a home adds debt in retirement. Weigh it against alternatives. A HELOC may cost less if you need modest, flexible access. A reverse mortgage works differently and has its own rules. Selling and downsizing removes debt entirely. A cash-out makes sense when the use of funds justifies a larger balance and the payment fits comfortably inside your budget. Tax treatment can depend on how the funds are used and how the property is held; borrowers should keep clear records and speak with a qualified tax professional before relying on any deduction.
Key Terms Defined
- Cash-out refinance: a new, larger mortgage that pays off the old one and gives you the difference in cash.
- Haircut: the part of an account balance that does not count toward qualifying.
- Seasoning: how long funds have been in your accounts, shown by statements.
- Debt-to-income ratio: your monthly debts divided by your monthly qualifying income.
- Loan-to-value (LTV): the loan amount divided by the home’s appraised value.
Frequently Asked Questions
Do I need a job to qualify?
No. On the asset qualifier path no employment or income is documented. On the depletion path, income is derived from your assets. Either way, the file is fully underwritten, subject to lender guidelines.
Can I use my IRA or 401(k) without withdrawing?
Yes. Retirement balances count without being liquidated. On the qualifier path they count at 90% under 59½ and 100% at 59½ or older. On the depletion path they count at 70% at any age.
Can cash-out proceeds count toward qualifying?
No. Proceeds from the new loan never count as qualifying assets. Qualification rests on assets you already hold.
Can I combine a pension or Social Security with asset income?
Yes, on the depletion path. Asset-derived income can supplement documented income up to a 45% debt-to-income ratio, and the minimum-assets rule is waived when it does.
What if my stock is in a private company?
Privately held company stock is not an eligible asset on either path. The route is documented liquid assets, such as seasoned sale proceeds, cash, public securities and retirement accounts at their counted percentages.
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
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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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
This article is part of Lendmire’s asset-based mortgage program — full qualification details, guidelines, and scenarios live on the program page.
Related reading: Can You Get Approved for an Asset-Based Cash-Out Refinance Using a 529 Plan? · Best Asset-Based Cash-Out Refinance Program on One Income
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.