The Quick Read: Asset-based cash-out refinancing is offered through select lenders, and the right provider depends on your assets, the property, your credit and the leverage you need, so no single name fits every borrower. Lendmire is a mortgage broker, so this page explains how those lenders underwrite instead of ranking companies. The program works on two paths, and a borrower is qualified on one path at a time.
- On the asset depletion path, usable assets divided by 60 months become qualifying income, and cash-out tops out at 60% of value, subject to underwriting.
- On the asset qualifier path, eligible assets must cover the whole loan, and no employment or income is documented.
- Privately held company stock is not an eligible asset on either path.
- Every file is fully underwritten, and the assets are documented with statements.
Why This Page Does Not Rank Providers
A list of the “top” lenders would be wrong for you. The lender that fits depends on the property type, credit profile, leverage need and how your assets are held. A broker that shops several wholesale lenders can match the scenario to the program. The best program for your situation is the one whose asset rules fit what you actually hold.
Lendmire works with a network of wholesale lenders and does not lend, fund or approve anything. Across that network, the asset-based mortgage programs share a common structure. This page walks through it.
Key Terms Defined
Asset qualifier path: the loan is qualified on assets alone, with no income or employment documented.
Asset depletion path: usable assets are divided by 60 months to create monthly qualifying income, which then runs through the debt-to-income test.
Usable assets: the share of each balance that counts after the program’s percentages.
Haircut: the part of a balance that does not count. If securities count at 80%, the haircut is 20%.
Seasoning: how long funds must sit in an account, shown by statements, before they count.
What an Asset-Based Cash-Out Refinance Is
It is a refinance that pulls equity out of a property, qualified on what you own instead of what you earn. It suits retirees, people who sold a business, heirs, early-retired professionals and households living off a portfolio. Balances are large. Documented income is small or irregular.
The word “asset-based” covers two different things. A rental loan can be underwritten on the property’s own rent. That is a separate route, and it is not what this page covers. Here the borrower’s liquid assets do the qualifying.
Asset depletion is an underwriting method, not a government program. The OCC’s Bulletin 2019-36 describes it as using an applicant’s assets to calculate a hypothetical cash annuity stream. You do not sell anything. The income is notional.
The same bulletin points out that policies should cover verification of eligible assets, discounts applied to asset values and the dissipation period. In other words, each lender sets its own formula. No federal rule fixes the divisor or the haircuts.
How Underwriting Treats the Assets, Step by Step
1. Classify the transaction. The file is either a rate-and-term refinance or a cash-out. That label sets the leverage ceiling.
2. Choose the path. If your eligible assets can cover the whole loan, the asset qualifier path fits. If they cannot, but they can produce enough monthly income, the depletion path fits.
3. Build the asset pool. Statements show what you hold. Each account type counts at a set percentage.
4. Apply the path’s math. On the qualifier path, the usable total must equal or exceed the entire loan amount. On the depletion path, the usable total is divided by 60 months.
5. Run the overlays. Credit, leverage, property type and appraisal all apply. Programs differ, and every file is underwritten individually.
6. Reconcile net proceeds. Payoff, costs and any reserves come out before cash reaches you.
The Two Paths Side by Side
| Factor | Asset qualifier | Asset depletion |
|---|---|---|
| How assets are used | Must cover the full loan | Divided by 60 months into income |
| Income documented | None | Derived income, DTI test |
| Loan amounts | Up to $4,000,000 | $125,000 to $3,500,000 |
| Purchase leverage | Up to 80% | Up to 80% (65% investment) |
| Refinance leverage | Up to 75% | 80% rate-and-term, 60% cash-out |
| Seasoning | 60 days, two statements | Statements 120 days old plus one within 45 days |
These are ceilings and floors from select programs, subject to underwriting. They are not offers. The refinance leverage of up to 75% in the qualifier column applies to a refinance on that path, but whether cash-out proceeds are allowed there, and at what leverage, is set by the lender and is not published. Do not assume a figure for it.
On the depletion path, a principal residence or second home can reach 60% on a cash-out refinance. An investment property tops out at 60% on a cash-out as well, and 65% on a purchase or rate-and-term refinance. A depletion-path investment property loan is business-purpose.
Which Assets Count
| Asset | Qualifier path | Depletion path |
|---|---|---|
| Brokerage accounts | 100% | Securities at 80% |
| Cash, savings, money market | 100% | Cash at 100% |
| Certificates of deposit | 100% | 100% |
| Retirement accounts | 90% under 59½, 100% after | 70% at any age |
| Real-estate equity | Not listed | 60% |
Each percentage is the share that counts. Securities counting at 80% means 20% does not count. Retirement accounts counting at 70% means 30% does not.
Several things never count 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. Cryptocurrency, precious metals, collectibles and borrowed or pledged funds are not published as eligible on either path.
The route for those holdings is conversion. Sell the asset, move the cash into a regulated account and let it season. The lender then reviews the source.
Privately held company stock deserves its own line. It does not count at any percentage, because it is not an eligible asset on either path. A founder or shareholder qualifies through documented liquid assets: seasoned proceeds from a sale or buyout, cash, public securities and retirement accounts at their percentages.
A Worked Example
Take an $800,000 loan on the qualifier path. The borrower holds $330,000 in brokerage accounts, which count at 100%, so $330,000 is usable. A 401(k) of $300,000 under age 59½ counts at 90%, which is $270,000. Savings of $200,000 count at 100%. The usable total is $800,000, which equals the loan, so the file is reviewed on assets alone, subject to underwriting.
Now the depletion path. A borrower holds $1,500,000 in securities, counting at 80%, so $1,200,000 is usable. Add $300,000 in cash at 100%. Usable assets total $1,500,000. Divide by 60 months and you get $25,000 of monthly qualifying income. That income must carry the housing payment and other debts through the debt-to-income test.
Both examples are illustrative. The lender’s own calculation governs.
Who Fits Which Path
The qualifier path fits a borrower whose liquid holdings are large relative to the loan. Think of a retiree with a large brokerage account and a modest balance to refinance. No income is documented, and the credit floor is 600.
The depletion path fits a borrower whose assets are large but not large enough to cover the loan outright. The assets become income. It also allows asset-derived income to supplement documented income up to a 45% debt-to-income ratio. When it supplements, the minimum-assets rule is waived.
The depletion path has minimums. Qualified assets must be at least the lesser of $1,000,000 or 1.25 times the loan balance. They must never fall below $250,000 liquid when depletion is the only income source. Credit follows the lender’s matrix. A first-time investor on this path needs a 700 score.
Housing history is 0x30x12 on the depletion path, and 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.
What Is Still Documented
This is not a no-doc loan. Every file is fully underwritten. What drops away is the paperwork around income: no traditional personal-income documentation, pay stubs or employment verification.
What stays is the asset trail. The qualifier path wants 60 days of seasoning and two months of statements for each qualifying account. The depletion path wants 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 on the depletion path.
Credit is pulled. Housing history is reviewed. The property is appraised. Because the loan is a consumer mortgage on a principal residence or second home, TRID disclosures apply.
On the qualifier path, no reserves are required at or below 75% loan-to-value. Above that, the lender sets them. The depletion path publishes no reserve months.
How to Evaluate a Provider Through a Broker
Because the right lender varies, use a checklist. A broker matching your file to a program should be able to answer each of these.
- Does the program allow cash-out on your chosen path, and at what leverage?
- Does it accept your specific account types at the percentages above?
- How does it treat retirement accounts at your age?
- What seasoning and statement rules apply to your funds?
- Does it cap loan amount below what you need?
- What credit score and housing history does it require?
Direct lenders show you one program. A broker shops several wholesale lenders and matches the scenario. That is the practical advantage. It is not a promise of approval.
Where the General Rule Breaks
Cash-out proceeds do not count. On the depletion path, money you pull from the refinance cannot be used as qualifying assets.
A bigger loan means a bigger payment. Pulling more cash raises the housing payment. On the depletion path that payment runs through the debt-to-income test, so more cash-out can push a file past the limit.
Market-linked assets move. Securities and retirement balances can fall. The percentages that count already discount them, but a drop between application and underwriting changes the math.
Investment property changes the leverage. Leverage limits for an investment property differ from those for a primary residence, so do not apply a primary-residence figure to it.
Prepayment and costs. Payoff, closing costs and reserves come out of proceeds first. Cash-out does not mean the full figure reaches you.
Business-purpose loans sit outside some consumer rules. The CFPB’s Regulation Z, section 1026.3 exempts credit extended primarily for a business purpose. Its consumer protections apply to loans made primarily for personal, family or household purposes. That is why investment property financing on the depletion path is treated as business-purpose. A principal residence or second home is a consumer loan.
Alternatives Worth Weighing
A home equity line draws on equity without refinancing the first mortgage. A securities-backed line borrows against a portfolio without selling it. Selling assets avoids new debt altogether. Each trades flexibility against cost and risk. A cash-out refinance replaces the first mortgage, so it makes the most sense when the new loan terms are acceptable on their own.
What to Prepare
Gather two months of statements for every account you plan to use. Confirm each account type against the percentages above. Convert anything ineligible, such as crypto or private shares, to cash well ahead of time so it seasons. Know your credit score and housing history. Decide whether you need the asset to cover the loan or to produce income.
Program details change, and every file is underwritten individually. Nothing here is a commitment to lend.
Frequently Asked Questions
Does privately held company stock count as an asset?
A founder or shareholder qualifies through documented liquid assets instead. That means seasoned proceeds from a sale or buyout, cash, public securities and retirement accounts at their percentages.
Is this a no-income-verification loan?
No traditional personal-income documentation, pay stubs or employment verification are used on the qualifier path. The loan is still fully underwritten. Assets are documented with statements, credit is reviewed and the property is appraised.
Which path is better for a retiree?
It depends on the balances. If eligible assets cover the entire loan, the qualifier path fits. If they do not, the depletion path turns them into monthly income. Retirement accounts count at 90% under 59½ and 100% after on the qualifier path, and at 70% on the depletion path.
Can I use this on an investment property?
Only on the depletion path. Leverage is 65% on a purchase or rate-and-term refinance and 60% on a cash-out. Loans on that path run from $125,000 to $3,500,000, subject to underwriting.
Do I need to sell my investments?
No. On the depletion path, the income is notional. The assets stay where they are. They must be documented and seasoned, though.
A deeper walk-through of investment-property equity extraction lives in 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
2. CFPB Regulation Z, section 1026.3
This article is part of Lendmire’s asset-based mortgage program — full qualification details, guidelines, and scenarios live on the program page.
Related reading: Asset-Based Cash-Out Refinance Lenders on a Condo · Can You Get Approved for an Asset-Based Cash-Out Refinance With No Income Verification?
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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Legal disclosures. Lendmire (NMLS# 2371349) is a state-licensed mortgage brokerage that arranges financing through wholesale lender relationships. Lendmire is not a direct lender, depository institution, or registered financial advisor. The discussion above is general informational content about real estate financing — it is not financial, legal, or tax advice, and readers should consult licensed professionals for guidance on their individual circumstances. Loan inquiries are subject to lender underwriting; this article does not represent a commitment to lend. Loan terms, rates, and qualification standards vary by borrower, property, and state, and are subject to change at any time. Equal Housing Opportunity. NMLS Consumer Access: nmlsconsumeraccess.org.