The Quick Read: Yes, through select asset-based programs, a California homeowner with large verified balances and little or no current paycheck can refinance a primary residence or second home on assets instead of employment income, subject to underwriting. One path counts eligible assets against the whole loan. The other turns assets into a monthly qualifying income. The borrower uses one path at a time.
- 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 that must carry the payment and other debts.
- Leverage: the qualifier path goes up to 75% on a refinance; the depletion path goes up to 80% on a rate-and-term refinance and 60% on a cash-out.
- Equity in the home itself does not count as the source of repayment.
- Assets are documented. Skipping income documents never means skipping documents.
How Does Asset-Based Qualifying Work When the Paycheck Stops?
The answer is that the lender looks at what you own, not what you earn. Federal ability-to-repay language lets a creditor rely on “current or reasonably expected income or assets,” and the assets must be something other than the home securing the loan, per 12 CFR 1026.43. Income does not have to be salaried or full-time either, according to the ability-to-repay small entity compliance guide.
Across the wholesale network, two products cover this. They are not interchangeable, and a borrower is qualified on one at a time. Never blend their tables.
Asset qualifier path. Eligible assets, after the credit percentages below, must equal or exceed the whole loan amount. No employment or income is documented. Loans run up to $4,000,000, with up to 80% leverage on a purchase and 75% on a refinance of a principal residence or second home. Whether cash-out is allowed on this path, and at what leverage, is set by the lender and not published, so treat cash-out here as a question for the file, not an assumption. Final terms depend on lender guidelines, property type, leverage, and the borrower’s complete credit picture.
Asset depletion path. Eligible assets, after haircuts, are divided by 60 months. That figure is the monthly qualifying income. It then runs through a debt-to-income test with the housing payment and other debts. Loans run from $125,000 to $3,500,000.
All figures here are typical program ceilings and floors through select programs, subject to underwriting. They are not offers.
Which Assets Count, and At What Percentage?
Brokerage, CDs, money market and savings count at full value on the qualifier path. Retirement money counts at 90% under age 59½ and 100% after. On the depletion path the haircuts are steeper and apply to everything. Here is the side-by-side.
| Asset | Qualifier path | Depletion path |
|---|---|---|
| Brokerage / securities | 100% | 80% |
| Cash, savings, money market | 100% | 100% |
| Certificates of deposit | 100% | 100% |
| 401(k) / IRA | 90% under 59½, 100% at 59½+ | 70% at any age |
| Private stock | Not published | 75% |
| Real-estate equity | Not published | 60% |
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.
Crypto, precious metals, collectibles, pledged funds and borrowed funds are not published as eligible on either path. The documented route is converting them into a seasoned cash balance in a regulated account, with the source reviewed by the lender. Do not plan on them counting at a percentage.
Two edge cases trip people. First, the same dollars cannot be spent twice. Money used for the down payment, closing costs or reserves is not also qualifying assets. Second, cash-out proceeds never count as qualifying assets on the depletion path.
What Does the Math Look Like?
Run the numbers on two illustrative cases. The lender’s own calculation governs.
Qualifier path. An $800,000 loan with $330,000 in brokerage accounts (100% counts, so $330,000), $300,000 in a 401(k) for a borrower under 59½ (90% counts, so $270,000) and $200,000 in savings (100%, so $200,000) shows $800,000 of usable assets. That equals the loan, so it can qualify on assets alone, subject to underwriting. No income is documented.
Depletion path. $1,500,000 in securities at 80% is $1,200,000. Add $300,000 in cash at 100%. Usable assets total $1,500,000. Divide by 60 months and the monthly qualifying income is $25,000. That figure then has to carry the housing payment and other debts through the debt-to-income test.
Notice what the second case does. It does not drain the account. It treats the portfolio as if it paid out evenly, and then measures that against your debts. Some lenders outside this network use other divisors. Network programs use 60.
What Seasoning and Documents Do the Files Need?
Every asset is documented. That is the point most borrowers miss. These programs mean no traditional personal-income documentation, pay stubs or employment verification, not no paper.
On the qualifier path, funds need 60 days of seasoning, with 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 on the depletion path.
Large recent deposits are the usual snag. A transfer between your own accounts is easy to trace. A deposit from an unknown source is not. Keep the paper trail: the sale agreement, the estate distribution letter, the settlement statement. A lender that cannot source a deposit will simply not count it.
Beyond statements, expect a credit pull, an appraisal and title work. A consumer mortgage like this one also carries the usual consumer mortgage disclosures. Federal rules require the lender to keep documentation showing how it considered income or assets, per the CFPB rule text. Your statements are that record.
What Credit and Leverage Does This Require?
Credit still matters. The qualifier path publishes a 600 minimum score. The depletion path follows the lender’s matrix, which scales with score and loan amount. A first-time investor on the depletion path needs 700. Housing history is 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.
Leverage on the depletion path depends on the transaction and the property:
| Transaction | Primary / second home | Investment property |
|---|---|---|
| Purchase | Up to 80% | Up to 65% |
| Rate-and-term refinance | Up to 80% | Up to 65% |
| Cash-out refinance | Up to 60% | Up to 60% |
The depletion path also has asset minimums. Qualified assets must be at least the lesser of $1,000,000 or 1.25 times the loan balance, and never below $250,000 liquid when asset depletion is the only income source. If asset-derived income supplements documented income, it can do so up to a 45% debt-to-income ratio, and the minimum-assets rule is waived.
Reserves are simple. The qualifier path requires none at or below 75% loan-to-value; above that the lender sets them. The depletion path publishes no reserve months.
Which Path Fits Which Situation?
Pick the path by who you are and what you hold.
| Situation | Likely fit | Watch for |
|---|---|---|
| Retiree with large brokerage and savings | Either path | Retirement haircuts |
| Business seller with cash | Depletion path often fits | Source documents for the sale |
| Inheritance or settlement recipient | Either path | Sourcing and title |
| Laid-off professional with a large portfolio | Depletion path | Asset minimums, credit |
| Rental owner whose paycheck stopped | DSCR refinance on the rental | Rent must cover the payment |
That last row matters. If the property is a rental, the better route is often a business-purpose DSCR refinance. It qualifies primarily on property-level rental income covering the payment, subject to lender guidelines, and your personal paycheck is not the test. Programs below 1.00 coverage are available through select lenders in the network, though leverage and terms adjust. Credit is still reviewed. Asset-based qualifying is the tool for a primary residence or second home.
Should You Refinance Before the Income Stops?
If the stop is foreseeable, apply first. A retirement date, a planned business sale or a known layoff gives you time to line up statements and sourcing while documented income still exists. Once income ends, you can still use assets, but the file loses the option of combining documented income with asset income.
Lenders judge present ability. A plan that depends on future income or on selling assets later to make payments is not what these programs underwrite. If the numbers only work after a future event, they do not work today.
Also be honest about the tradeoff. These are non-QM mortgages. They are built for borrowers with big balances and thin documented income, and they are priced and structured accordingly. Compare the result against doing nothing, selling, or other tools. A home equity line is a different product with its own rules, and a freeze or reduction on an existing line when income drops is a real risk to price in.
What Is Different for a California Home?
The program figures do not change by state. California is where the property sits, not a different rulebook. What changes is scale. High California values push many loans toward the upper range, so the depletion path’s minimum-assets test, the lesser of $1,000,000 or 1.25 times the loan, can bind. Check it early.
Title can matter too. If the home sits in a trust, tell the lender up front. Ownership and vesting need to line up before the deal works. Property tax and insurance are part of the housing payment on the depletion path, so they flow into the debt-to-income test. Tax treatment varies; consult a qualified professional.
Consumer lending through Lendmire’s mortgage operations is licensed in 16 states, including California. Lendmire is a broker, arranging these loans through select lenders in its wholesale network.
Key Terms Defined
Asset qualifier: a path where eligible assets, after credit percentages, equal or exceed the entire loan, with no income documented.
Asset depletion: a path that divides usable assets by 60 months to create a monthly qualifying income.
Haircut: the share of an asset’s balance a lender will not count.
Seasoning: how long funds have sat in your account before they count.
Debt-to-income: monthly debts, including the new housing payment, measured against monthly income.
Common Mistakes
- Counting home equity as an asset for repayment. It cannot be the repayment source.
- Assuming a full retirement balance counts. Haircuts apply, and the qualifier path’s age line at 59½ changes the percentage.
- Moving money right before applying. Fresh deposits fail seasoning.
- Treating this as no documentation. Statements, credit, appraisal and title are all required.
- Mixing the two paths in one worksheet. Pick one and run it clean.
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 or request a quote. For current guidelines and terms, see Lendmire’s asset-based mortgage programs page.
Frequently Asked Questions
Do I need any employment income to refinance on assets?
No, not on the qualifier path, where eligible assets cover the whole loan and no income is documented. On the depletion path your assets become the income. Federal ability-to-repay language allows a creditor to base its repayment finding on income, assets other than the dwelling, or both, as laid out in the Federal Register final rule. Credit and documents are still reviewed.
Can I take cash out on an asset-based refinance?
It depends on the path. On the depletion path, cash-out is available up to 60% on a primary residence, second home or investment property, and the proceeds never count as qualifying assets. On the qualifier path, cash-out terms are set by the lender and not published, so confirm them for your file.
Does my 401(k) or IRA count?
Yes, at a reduced percentage. On the qualifier path it counts at 90% under 59½ and 100% at 59½ or older. On the depletion path it counts at 70% at any age. Tax and penalty effects of drawing on it are separate; speak with a qualified professional.
Can I use this on a rental property?
Only on the depletion path, with investment property leverage of up to 65% on a rate-and-term refinance and 60% on a cash-out. For most rentals, a DSCR refinance is simpler because it qualifies primarily on property-level rental income, subject to lender guidelines.
Is there a credit check?
Yes. The qualifier path publishes a 600 minimum score, and the depletion path follows the lender’s score and loan-amount matrix. Approval is never promised and is subject to underwriting.
Lendmire’s asset-based mortgage in California page presents the program for California borrowers.
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 traditional personal-income documentation understates their income, and each application is reviewed individually by the lender. Scotsman Guide named Lendmire a Top Mortgage Workplace in both 2025 and 2026.
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References
2. CFPB Ability-to-Repay/Qualified Mortgage Small Entity Compliance 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: How to Refinance a Mortgage After Retiring With No W-2 Income · How to Get Pre-Approved in Florida on Assets Instead of Income · Can You Use an Asset-Based Mortgage to Buy a California Home for Your Parents?
Guides: Asset-Based Mortgage in California
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.