The Quick Read: You qualify by showing that your liquid assets, not a paycheck, can support the loan. Those assets either cover the whole loan outright or get converted into monthly qualifying income. You then apply with account statements, a credit report, and an appraisal through select programs. Cash-out leverage is lower than on a purchase, and every file is fully underwritten, subject to lender guidelines. This is not a commitment to lend.
- Two paths, and you use only one. On the asset qualifier path, eligible assets must equal or exceed the entire loan, and no employment or income is documented. On the asset depletion path, usable assets divided by 60 months become qualifying income.
- Leverage drops on cash-out. On the depletion path, a principal residence or second home tops out at 60% loan-to-value on a cash-out refinance. On the qualifier path, the lender sets cash-out leverage, and it is not published.
- Only some assets count. Brokerage, savings, CDs, and money market balances count most fully. Retirement accounts are discounted, and privately held company stock is not eligible on either path.
- Documents are the whole file. Plan on seasoned statements, a credit report, an appraisal, title work, and insurance.
- Cash-out proceeds never count as qualifying assets on the depletion path.
Key Terms Defined
Cash-out refinance: A new mortgage that pays off the old one and hands you the difference in cash. A home with no mortgage still counts as a cash-out refinance.
Asset-based mortgage: A loan qualified on the assets you hold instead of the paycheck you earn. You document the assets with statements.
Asset qualifier path: Your eligible assets, after the credit percentages, must equal or exceed the whole loan amount.
Asset depletion path: Your eligible assets, after haircuts, are divided by 60 months to create a monthly qualifying income.
Haircut: The part of an asset balance that does not count. Securities count at 80%, so the haircut is the other 20%.
Seasoning: How long money must sit in an account, with statements to prove it, before a lender will count it.
Loan-to-value (LTV): The loan amount divided by the home’s appraised value.
Debt-to-income (DTI): Your monthly debts, including the new housing payment, compared with your monthly qualifying income.
Can Assets Alone Qualify You for a Cash-Out on Your Own Home?
Yes, but leverage is the catch. Lendmire’s asset-based mortgage programs place consumer mortgages on a principal residence or second home through select lenders. These programs are built for readers with large balances and thin documented income: retirees, people who just sold a business, inheritance or settlement recipients, early-retired professionals, and households living off a portfolio.
On the asset depletion path, cash-out on a principal residence or second home goes up to 60% loan-to-value. A purchase or rate-and-term refinance on that same path can reach 80%. The gap is the price of taking equity out.
On the asset qualifier path, the published ceilings are 80% on a purchase and 75% on a refinance. Whether cash-out is allowed on that path, and at what leverage, is set by the lender. Ask before you assume.
Many borrowers expect a high headline leverage figure to apply to their cash-out. It usually belongs to a purchase or a rate-and-term refinance. Check the cash-out number first.
The Two Ways to Qualify
Both paths use your assets, but they ask different questions. The qualifier path asks whether your assets can pay off the loan. The depletion path asks whether your assets can produce enough income to carry the payment. A borrower is reviewed on one path at a time, and the two never blend.
| Factor | Asset qualifier | Asset depletion |
|---|---|---|
| Core test | Usable assets ≥ whole loan | Usable assets ÷ 60 = income |
| Income documented | None | Derived from assets, run through DTI |
| Loan amounts | Up to $4,000,000 | $125,000 to $3,500,000 |
| Credit | 600 minimum | Lender’s matrix |
| Cash-out leverage | Set by lender | 60% on primary or second home |
The qualifier path suits someone whose balances dwarf the loan. The depletion path suits someone whose balances are large but would not cover the loan, and who needs the payment to pencil against income.
Asset-based underwriting sits inside the broader non-QM market. Scotsman Guide, citing CoreLogic, reports non-QM was about 5% of mortgage originations in the most recent full year it covered. It describes asset-depletion programs as a way for retirees and wealth-based borrowers to qualify on liquid or investment assets.
What Counts as an Asset?
The percentages differ by path, so never mix the two tables below. Each figure is the share of the balance that counts. Anything that does not count is the haircut.
Asset qualifier path: share of the balance that counts.
| Asset | Counts at |
|---|---|
| Brokerage accounts | 100% |
| CDs, money market, savings | 100% |
| 401(k) or IRA, under age 59½ | 90% |
| 401(k) or IRA, 59½ or older | 100% |
Accounts combine on this path. You can stack several to reach the loan amount.
Asset depletion path: share of the balance that counts.
| Asset | Counts at |
|---|---|
| Cash accounts and CDs | 100% |
| Securities | 80% |
| Retirement accounts (any age) | 70% |
| Real-estate equity | 60% |
Several things are not eligible 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.
Privately held company stock is not an eligible asset on either path. Cryptocurrency, precious metals, collectibles, pledged or borrowed funds, and business accounts beyond your ownership share are not published as eligible either. The documented route for any of these is converting them to a seasoned cash balance in a regulated account. The lender then reviews the source of that money.
Two Worked Examples
These numbers are illustrative. The lender’s own calculation governs.
Qualifier path. Say you want an $800,000 loan. You hold $330,000 in brokerage accounts, which count at 100%, so $330,000 counts. You also hold $300,000 in a 401(k) while under 59½, which counts at 90%, so $270,000 counts. Finally, you hold $200,000 in savings at 100%, so $200,000 counts. Total usable assets are $800,000, which matches the loan. You qualify on assets alone, with no income documented, subject to underwriting.
Depletion path. Say you hold $1,500,000 in securities, which count at 80%, so $1,200,000 counts. You also hold $300,000 in cash at 100%, so $300,000 counts. Together, usable assets are $1,500,000. Divided by 60 months, that is $25,000 of monthly qualifying income. That income must then carry the housing payment and your other debts through the debt-to-income test.
Net cash. Cash-out math is simple in shape. Take the appraised value and multiply it by the allowed cash-out percentage. Subtract your current loan payoff, then subtract closing costs. What remains is your cash. A home already carrying a mortgage near the ceiling yields little. A paid-off home yields the most.
Why the Home Itself Doesn’t Count as Your Asset
Pulling cash from a home you live in is consumer credit. Lenders must make a reasonable, good-faith judgment that you can repay. The Consumer Financial Protection Bureau’s ability-to-repay rule allows that judgment to rest on income, on assets other than the dwelling securing the loan, or on both. That is the footing for asset-based qualifying. It is also why your home’s own equity cannot serve as the repayment source.
The same rule requires the lender to verify the assets it relies on. The eCFR text of 12 CFR 1026.43 calls for third-party records with reasonably reliable evidence. For you, that means statements. The loan is a consumer mortgage, and consumer disclosure requirements apply.
DSCR loans are designed for non-owner-occupied investment properties. Because they are business-purpose investor loans, they are reviewed differently from a standard owner-occupied mortgage. DSCR does not apply to the home you live in.
What Lenders Check Before You Apply
Run this self-check first. The figures are program ceilings and floors, never offers, and all are subject to underwriting.
- Occupancy. The home must be your principal residence or second home. You sign an owner-occupancy declaration.
- Credit. The qualifier path has a 600 minimum score. The depletion path follows the lender’s score and loan-amount matrix.
- Housing history. The program looks for 0x30x12, meaning no 30-day lates in twelve months. One late in that window is considered case by case. Multiple bankruptcies are not eligible. On the depletion path, a housing event needs 4 years of seasoning.
- Seasoning, qualifier path. Assets need 60 days of seasoning and two months of statements for each qualifying account.
- Seasoning, depletion path. Statements must be at least 120 days old at application, plus the most recent statement within 45 days. Sale-of-business, inheritance, and legal-settlement funds are excused from that seasoning.
- Minimum assets, depletion path. 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 also need at least $250,000 in liquid assets.
- Supplemental income. Asset-derived income may supplement documented income up to a 45% debt-to-income ratio. When it supplements, the minimum-assets rule is waived.
- Reserves. The qualifier path requires none at or below 75% loan-to-value. The depletion path has no published reserve months.
For a deeper walk through reserves, see Lendmire’s piece How to Qualify and Apply for an Asset-Based Cash-Out Refinance With Six Months of Reserves.
A borrower with plenty of assets can still miss seasoning by shuffling accounts the month before applying. Leave the accounts alone while you prepare.
How to Apply, Step by Step
1. Choose your path. Add up your balances at the qualifier percentages. If the total meets or exceeds the loan you want, the qualifier path is a fit. If not, test the depletion path with its haircuts and the 60-month divisor.
2. Gather statements. Pull the required months for every account you plan to use. Check each date against the seasoning rules for your path.
3. Trace large deposits. Any big or recent deposit needs a documented source. Sale proceeds, an inheritance, or a settlement should come with paperwork.
4. Pull your credit. Check your score and housing history before you apply.
5. Collect property documents. You need homeowners insurance, current mortgage information, and title and lien details.
6. Submit the application. A broker places the file with a lender in the network whose guidelines fit your path, assets, and leverage.
7. Order the appraisal. The appraisal sets the value that drives the loan-to-value test.
8. Answer underwriting conditions. The underwriter haircuts your assets, excludes the home’s value, and either tests asset coverage or runs the derived income through DTI. Expect requests for updated statements or explanations.
9. Review and sign. You review your consumer mortgage disclosures and sign at closing.
What Delays or Sinks a File
- Stale statements. On the asset depletion path, statements must be at least 120 days old at application, with the most recent one dated within 45 days. Statements outside that window reset the clock.
- Moved funds. Transfers between accounts shortly before applying create seasoning questions.
- Ineligible assets. Privately held stock, stock options, and unvested shares count for nothing, so budgeting around them breaks the math.
- Mixed paths. Quoting the qualifier percentages while using depletion leverage is a common error. Keep each path’s figures together.
- Cash-out assumptions. Counting on loan proceeds to boost your assets does not work on the depletion path.
- Thin credit file. A recent late payment on your housing history can change the answer.
When Another Path Fits Better
This is a genuine judgment call, and the answer depends on what you actually have. Asset-based qualifying fits a cash-heavy, income-light borrower. Someone with steady deposits but little tax-return income may do better on a bank statement program.
| Option | Best fit | Watch for |
|---|---|---|
| Asset-based cash-out | Large liquid assets, thin income | 60% depletion-path cash-out ceiling |
| Bank statement | Self-employed with strong deposits | Documents income through deposits |
| DSCR cash-out | Investment property only | Not available on your own home |
| HELOC | Existing low-cost first mortgage | Second lien; lender sets terms |
| No-cash-out refinance | Lower payment or term change | No cash to you |
Sometimes the better move is to cash out an investment property on DSCR and put the proceeds toward the next primary home.
Frequently Asked Questions
Do I need a job or tax returns to qualify?
No traditional personal-income documentation, pay stubs or employment verification are needed on the asset qualifier path. The loan is reviewed on assets alone. On the depletion path, your assets are converted into qualifying income, and that income can supplement documented income. Either way, the file is fully underwritten, and your assets are documented with statements.
Can I use retirement accounts?
Yes. On the qualifier path, a 401(k) or IRA counts at 90% under age 59½ or 100% at 59½ or older. On the depletion path, retirement accounts count at 70% at any age. Accounts combine, subject to underwriting.
Can I cash out a paid-off home?
Yes. A free-and-clear home still counts as a cash-out refinance. The cash-out leverage ceiling applies, which is 60% on a principal residence or second home on the depletion path. On the qualifier path, the lender sets cash-out leverage. A paid-off home generally yields the most cash.
How much cash will I actually get?
Multiply the appraised value by the allowed cash-out percentage. Subtract your current payoff and the closing costs. The remainder is your cash. A home that already carries a balance near the ceiling yields much less. Your own appraisal and lender determine the final number.
Does my privately held company stock count?
No. A founder’s or shareholder’s route is documented liquid assets. Examples are seasoned proceeds from a sale or buyout, cash, public securities, and retirement accounts at their counting percentages.
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 is a broker, and its consumer mortgage 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. Programs change, and every file is underwritten individually.
About Lendmire
Lendmire, NMLS# 2371349, is a mortgage brokerage with consumer lending licenses in 16 states. Bank statement, P&L-only, 1099-only and asset-based mortgages are arranged through wholesale lending partners for borrowers whose tax returns understate their income, and each application is reviewed individually by the lender. Scotsman Guide named Lendmire a Top Mortgage Workplace in both 2025 and 2026.
Investors weighing their equity options can start with Lendmire’s guide to cash-out refinance on an investment property.
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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. Scotsman Guide, One out of 20 mortgages are non-QM
2. Consumer Financial Protection Bureau, 12 CFR 1026.43
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 to Buy a New Primary Home · How to Qualify and Apply for an Asset-Based Cash-Out Refinance With Stock Holdings
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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Disclosures. The information presented in this article is general market commentary, not financial, legal, or tax advice. Lendmire is a mortgage brokerage (NMLS# 2371349) — not a direct lender or depository institution — and loan placement is subject to lender underwriting. Nothing in this content represents a commitment to lend. Loan terms, pricing, and program availability vary based on borrower qualifications, property characteristics, and state of subject property, and are subject to change at any time. Lendmire complies with Equal Housing Opportunity requirements. Consumer access: nmlsconsumeraccess.org.