The Quick Read: Jumbo cash-out refinance lenders with asset depletion income are the wholesale and portfolio lenders that turn a borrower’s investment and retirement balances into a monthly qualifying figure, then test the new loan against it. Fannie Mae and Freddie Mac programs generally don’t allow this on a full cash-out refinance, so the work moves to jumbo and non-QM programs. Each lender sets its own rules, and the best program for your situation depends on which assets you hold, how much equity you want to reach, and the file around it.
Key Terms Defined
Asset depletion. A method that divides eligible assets by a set number of months to produce a monthly income figure for qualifying. It assumes you draw the balance down over that period.
Cash-out refinance. A new, larger mortgage that pays off the old one and hands you the difference in cash.
Jumbo loan. A mortgage above the county’s conforming loan limit, which means Fannie Mae and Freddie Mac cannot buy it.
Divisor. The number of months the lender divides your counted assets by. A shorter divisor produces more monthly income.
Debt-to-income ratio (DTI). Your monthly debts, including the new housing payment, measured against your monthly income.
Continuance. Proof that the income will last. For asset-based income, that means the assets support the loan beyond the early years.
Reserves. Liquid funds left after closing, measured in months of the full housing payment.
Jumbo cash-out estimate
Enter the value, the balance, and the cash wanted; choose the occupancy and the structure; the lanes, the payment, and the reserves follow.
Editable benchmark: 7.24% as of October 29, 2026 · Freddie Mac 30-year average via FRED®. A conventional market reference, not a jumbo cash-out refinance quote.
Illustrative starting assumptions: a $2,000,000 home value in the jumbo range, a $1,000,000 current balance, a principal residence on a thirty-year fixed structure at the current Freddie Mac conforming benchmark, and property taxes and insurance estimated at typical national rates. Every field is editable.
Illustrative estimate only — not a Loan Estimate, approval, quote, or commitment to lend. The rate field carries the weekly Freddie Mac thirty-year conforming benchmark, a market reference and not a jumbo cash-out refinance quote; a jumbo loan is priced by the lender at lock. The lanes shown are the wholesale cash-out lanes behind this page as of the snapshot date; the calculator reads each lane’s leverage, loan maximum by occupancy, cash-in-hand cap, and reserves as the lane table states them, and a Lendmire loan officer confirms the lane on the file. The cash available is the loan the lane allows less the balances paid off, before closing costs, which are not included; on most lanes a jumbo cash-out begins one dollar above the conforming limit for the county, and two lanes start at a stated dollar floor instead. The HELOC line is the line program’s combined loan-to-value ceiling applied to the same value and balance. Taxes and insurance are editable estimates. Licensed in sixteen states for consumer mortgages.
Why Do Standard Programs Stall on This Loan?
The agency programs were not built for a full cash-out refinance that rests on assets alone. A loan above the county limit is jumbo by definition. The FHFA announces the conforming limit values each year, with a higher ceiling in high-cost counties. Check your county’s current limit rather than relying on a number you saw last year.
The second stall is on the asset side. “Asset depletion” is a market term. Fannie Mae’s version sits in its Selling Guide under employment-related assets as qualifying income. It counts only certain employment-related assets, such as accessible retirement accounts and severance. Ordinary brokerage accounts generally fall outside it. Treat those details as points to confirm on the official guides.
Put the two together. A homeowner with a large balance, thin documented income and a wish to pull equity out lands outside the agency lane. That is where jumbo programs come in. The wholesale programs Lendmire places files with write their own asset rules, so the same portfolio can be treated differently from one lender to the next.
For a look at the program itself, see Lendmire’s jumbo cash-out refinance program page.
How Is the Loan Underwritten, Step by Step?
Here is the sequence a file moves through. The order matters, because a problem at step two changes everything after it.
1. Choose the path. The loan is above the county limit, or the borrower needs a full cash-out that agency asset rules don’t allow. Either one points to jumbo.
2. Count the eligible assets. The lender decides which accounts count, what share of each counts, and which are excluded. Bank, brokerage and retirement accounts are the usual candidates. Retirement money typically has to be reachable without penalty. Cash-out proceeds from the new loan are generally not counted, because that would count the same dollars twice.
3. Convert assets to monthly income. The counted balance is divided by a number of months. A shorter divisor produces more income. Some non-QM lenders use shorter divisors or count a higher share of assets than the agencies do. That is why shopping the file matters.
4. Run the ratio. The new housing payment, taxes, insurance and other debts are measured against the asset-derived income plus any other income. Across the wholesale jumbo lanes Lendmire works with, the ceiling is 50% on the fixed lanes, 45% on the adjustable lane and 43% on the interest-only lane. Those figures are subject to lender guidelines and full file review.
5. Check that the income lasts. Fannie Mae’s rules on general income information require income that depends on a depleting asset to continue for at least three years. When assets are the main source, the lender also looks at your ability to keep repaying after the asset is used up. Jumbo lenders apply their own tests, but they ask the same question.
6. Document everything. Expect recent account statements, proof of ownership, a source-of-funds review on large deposits, and the usual credit, payoff and title items. Asset-based files mean different documents, not fewer.
7. Appraise the home. Value sets the maximum loan, and the maximum loan sets how much cash can come out. On the larger lanes, a second appraisal is required above the lane’s threshold amount.
8. Sign, then wait out the cancellation window. On a refinance of your primary home, you have three business days to cancel after signing, per the CFPB’s right of rescission guidance. Funds are generally released after it ends.
What Does the Jumbo Program Envelope Look Like?
The program parameters below are the ones Lendmire’s wholesale network works within. All of them are subject to lender guidelines, full file review and borrower qualification. None is a commitment to lend.
| Feature | What the wholesale lanes show |
|---|---|
| Credit | 660 decision score on the headline lane |
| Leverage | Up to 90% on the top lane; several reach 89.99% CLTV; others stop at 80% |
| Loan size | Up to $5,000,000 on the largest lanes |
| Ratio ceiling | Varies by structure: fixed, adjustable and interest-only each carry their own ceiling |
| Structures | Fixed, adjustable and interest-only |
| Reserves | Months of full payment; rise with the loan amount |
| Appraisals | Two above a lane’s threshold amount |
Two things to keep straight. Those leverage figures are the lanes’ outer limits. Cash-out sits at lower leverage than a purchase, and the largest lanes put a cash cap on how much comes out. Your actual limit will be lower than the headline number.
Occupancy matters too. Primary, second-home and investment occupancy each carry their own leverage on a given lane. This article assumes the home you live in.
Which Assets Count, and How Are They Treated?
Lenders agree on the idea and differ on the details. Think of it as a sorting exercise.
| Asset type | General treatment direction |
|---|---|
| Checking and savings | Usually counted; seasoning of recent deposits is reviewed |
| Brokerage accounts | Often counted, sometimes at a reduced share |
| Retirement accounts | Often counted if accessible; may be discounted |
| Stock options, unvested stock | Generally excluded |
| Real estate sale proceeds, inheritance in transit | Treatment varies; often excluded until seasoned |
| Cash-out proceeds from this loan | Generally not counted |
At the agencies, Fannie Mae’s guide lists lawsuits, lottery winnings and similar items as ineligible. Jumbo lenders aren’t bound by that list, but they carry a similar logic: money has to be yours, documented and reachable.
Funds moved recently are a common snag. A large deposit with no paper trail pulls the file into a source-of-funds review. Moving money between accounts the month before applying creates the same question. Leave accounts where they are and let the statements show the history.
Depletion or Assets-Only: What’s the Difference?
The two get blurred in online guides. They test different things.
| Item | Asset depletion | Assets-only |
|---|---|---|
| What it tests | Debt against notional monthly income | Whether assets cover the loan itself |
| Income used | Assets divided by the divisor | None or minimal |
| Ratio | Calculated on converted income | Often not the main test |
| Typical fit | Borrowers with assets and modest income | Very large balances relative to the loan |
Which lane a file fits depends on the lender. A broker’s job here is to match the structure to the borrower, not the other way around.
How Does a Worked Example Run?
This is a hypothetical walk-through with modeled assumptions. It is not a quote and not a promise of any outcome.
Picture a retired homeowner with a primary residence, little documented income and a portfolio spread across a brokerage account and an accessible retirement account. The lender does four things:
- Adds the eligible balances and subtracts anything excluded, such as unvested holdings.
- Applies the lender’s counted share to each account type.
- Divides the counted total by the lender’s divisor to get monthly income.
- Compares the full new housing payment and other debts to that income and checks the result against the lane’s ratio ceiling.
If the ratio lands over the ceiling, there are usually three levers. Cut the cash-out amount, which lowers the payment. Add other documented income, such as a pension or Social Security. Or move to a lender that counts more of the same assets or uses a shorter divisor. Which lever helps depends on the file.
Notice what isn’t in that list: spending the portfolio down. Assets that qualify the loan generally need to stay in place, since they also support reserves and continuance.
What Else Limits the Cash You Can Take Out?
Four things set the ceiling, and the lowest one wins.
- Leverage. Cash-out runs at lower leverage than a purchase on the same lane.
- Cash cap. Two of the largest lanes limit how much cash can come out.
- Ratio. A bigger loan raises the payment, which pushes the ratio toward its ceiling.
- Reserves. The lender wants months of the full payment left over after closing, and the number rises with the loan amount.
Condominiums add a wrinkle. Two lanes accept non-warrantable condos, which suits buyers whose building fails standard agency review. Other property types follow the lane’s own rules.
State rules can add limits on cash-out as well. Some states restrict how much equity you can pull from a primary home, so the state where you live is part of the screen.
How Should You Compare Lenders Without a Ranked List?
There’s no honest way to rank lenders in the abstract. The best program for your situation depends on your assets, your credit profile, your leverage need and your property. What you can do is ask the right questions of any lender, or of a broker who shops several.
- Does the program allow asset depletion on a full cash-out, or only on a purchase or limited cash-out?
- Which of my accounts count, and at what share?
- What divisor does the lender use?
- Can asset income combine with pension, Social Security or other documented income?
- Are cash-out proceeds excluded from the asset count?
- What is the cash cap, if any, and what reserves apply at my loan size?
- Does the lender require one appraisal or two?
- Does the state I live in change the cash-out limits?
A broker that places files with several wholesale lenders can run the same asset picture against more than one rule set. That is where the difference shows up. One lender may count a brokerage account at a reduced share. Another may count more of it but cap the cash. Matching the borrower to the program is most of the job.
Who Fits This Loan, and Who Doesn’t?
- A retiree with large balances and little taxable income.
- A founder who sold a business and holds the proceeds in accounts, with no current paycheck.
- An equity-rich homeowner with irregular income who wants to reach cash without selling.
- A borrower with some documented income who wants assets added to it.
- A borrower whose wealth sits in illiquid holdings, such as private company stock, that lenders won’t count.
- Someone planning to spend the qualifying assets right after closing.
- A borrower who needs more cash than the leverage, cash cap and ratio will allow.
If the home is a second home or investment property, one sentence covers it: occupancy changes the leverage on each lane, and the rules differ from a primary residence.
What Should You Gather Before Applying?
Clean paperwork removes the preventable gaps. Pull these together:
- Recent statements for every account you want counted, with all pages.
- Proof of ownership, including titling on each account.
- Documentation for any large or recent deposit.
- Retirement account terms showing whether you can withdraw without penalty.
- Pension, Social Security or annuity award letters, if any.
- Current mortgage statement and homeowners insurance declaration.
- Property tax bill and any HOA or condo documents.
Why Do These Files Get Declined or Stalled?
Most of the trouble is predictable.
- Assets don’t count the way the borrower expected. A balance looked big, but part of it was excluded or discounted.
- Unseasoned funds. Recent transfers or deposits without a paper trail trigger a source-of-funds review.
- Ratio over the ceiling. The new payment is too large against the converted income.
- Cash-out too large for the lane. Leverage or a cash cap holds the number down.
- Appraisal comes in light. Lower value means lower maximum loan.
- Thin reserves. Months of payment left after closing fall short of the lane’s requirement.
Most fixes are structural. Lower the cash-out amount, add other income, switch lenders, or provide the missing documents. A lower appraisal can sometimes be addressed through a documented reconsideration request, though the lender decides.
What Does This Mean for the Rest of Your Finances?
A cash-out refinance replaces your existing mortgage. That resets the loan term and changes the payment. Closing costs apply, including appraisal, title, origination and prepaid escrows, and you will see them on the Loan Estimate and Closing Disclosure. Converting other debt into mortgage debt can also raise risk, since the home secures the new balance.
Tax treatment can depend on your situation; borrowers should speak with a qualified tax professional before relying on any deduction or credit.
Frequently Asked Questions
Can asset depletion be used on a jumbo cash-out refinance?
Yes, on some jumbo and non-QM programs. The agency rules generally don’t extend it to a full cash-out, which is why jumbo lenders matter here.
Do lenders all use the same formula?
No. Lenders differ on which accounts count, what share of each counts and what divisor they use. The same portfolio can produce different qualifying income at different lenders. That’s the main reason to compare programs before choosing one.
Are tax returns and employment verification required?
Not in the usual way. Lenders still verify everything they rely on, though. The CFPB’s ability-to-repay guide says a lender must consider and verify income or assets, and that income does not have to be employment income.
Is there a fixed 43% debt-to-income cap?
No. The federal rule doesn’t set a specific DTI threshold, and each lender sets its own limit. On the wholesale jumbo lanes Lendmire works with, the ceiling is 50% on fixed, 45% on adjustable and 43% on interest-only, subject to lender guidelines.
Do cash-out proceeds count as assets for qualifying?
Generally not. Counting the new cash would count the same dollars twice. Lenders typically exclude those proceeds from the asset total, though treatment can vary by program.
For your own numbers, request a scenario review with Lendmire.
About Lendmire
Lendmire, NMLS# 2371349, is a mortgage brokerage with consumer lending licenses in 16 states. FHA, VA, conventional and jumbo purchase and refinance loans are arranged through wholesale lending partners, and each application is reviewed individually by the lender. Scotsman Guide named Lendmire a Top Mortgage Workplace in both 2025 and 2026.
For the program’s current guidelines, see jumbo loan programs.
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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. FHFA Conforming Loan Limit Values announcement
2. Fannie Mae Selling Guide B3-3.4-06, Employment Related Assets as Qualifying Income
3. Fannie Mae Selling Guide B3-3.1-01, General Income Information
4. CFPB: Right of rescission on a refinance
5. CFPB ATR/QM Small Entity Compliance Guide
This article is part of Lendmire’s jumbo cash-out refinance program — full qualification details, guidelines, and scenarios live on the program page.
Related reading: Can a Jumbo Cash-Out Refinance Buy Out a Co-Owner’s Share? · Jumbo Cash-Out Refinance Requirements and Limits for a Primary Home · How to Decide If a Jumbo Loan Refinance Is Worth It
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
- Mortgage Loan Originator · NMLS# 1129696 · Verify on NMLS Consumer Access
- North Carolina Real Estate Broker · License# 343312 · Verify on NCREC
- North Carolina Insurance Producer · License# 19053198 · Property, Casualty, Life, Health · Verify on NAIC SBS
- Lendmire LLC · Firm NMLS# 2371349 · Verify firm licensure
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.