The Quick Read: The right provider for this loan depends on how your assets are held and which path your file fits. Select wholesale lenders in Lendmire’s network qualify borrowers on documented assets, not tax returns, pay stubs or employment verification. Every file is still fully underwritten, and your statements are the proof.
- Two paths. On the asset qualifier path, your eligible assets must cover the entire loan. On the asset depletion path, your assets become monthly income.
- Cash-out leverage. On the asset depletion path, cash-out tops out at 60% loan-to-value on a principal residence, second home or investment property, subject to underwriting.
- Qualifier-path cash-out is lender-set. The cash-out allowance and leverage on the qualifier path are not published, so ask before you plan around them.
- Documentation. You document the assets, not the income. Statements need seasoning, which means the money must sit in your accounts for a set period.
- Provider choice. A broker that shops several wholesale lenders matches your balances, property and credit to the program that fits. Lendmire does not lend, and no ranked list of companies can do that matching for you.
What Is an Asset-Based Cash-Out Refinance?
An asset-based cash-out refinance replaces your current mortgage with a larger one and pays you the difference. The lender reviews your file on what you own instead of what you earn. You skip the traditional personal-income documentation, pay stubs and employment verification. You do not skip underwriting.
People use “asset-based” loosely, and that causes confusion. Here, it means qualifying on your documented liquid assets. It does not mean hard-money lending against property equity. It also does not mean DSCR lending, which is reviewed on a rental’s income covering its payment.
This approach suits a specific reader. Think of retirees living off a portfolio, business sellers, and people who received an inheritance or settlement. Early-retired professionals fit too. Their balances are large and their documented income is small. Lendmire’s asset-based mortgage program is built for exactly that profile. Lendmire is a broker and arranges these loans through select lenders. All figures below are program ceilings and floors, not offers, and each is subject to underwriting.
Which Path Fits You: Asset Qualifier or Asset Depletion?
A borrower is reviewed on one path at a time. Never blend the two sets of numbers.
| Factor | Asset qualifier | Asset depletion |
|---|---|---|
| How assets work | Cover the whole loan | Divided by 60 into monthly income |
| Income documented | None | Derived income runs through debt-to-income |
| Occupancy | Principal residence, second home | Residence, second home, investment property |
| Loan amounts | Up to $4,000,000 | $125,000 to $3,500,000 |
| Credit | 600 minimum | The lender’s score and loan-amount matrix |
The qualifier path is the cleaner fit when your assets are large relative to the loan. The depletion path fits when your assets are big but would not cover the full balance. It also works when you want to count real-estate equity.
How Underwriting Treats Your File, Step by Step
Here is how the process runs on the asset side of the table.
1. Choose the path. A broker compares your balances to the loan amount and picks the path that fits. This choice drives everything else.
2. Gather statements. On the qualifier path, you need 60 days of seasoning and 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.
3. Apply the credit percentages. Each asset counts at a set share of its balance. The tables below show those shares.
4. Check the minimums. The depletion path has asset minimums, covered in the edge cases below.
5. Run credit and housing history. Housing history is typically 0x30x12, and one 30-day late in the past twelve months is considered case by case.
6. Underwrite the whole file. The lender reviews the appraisal, credit, assets and property. The asset review replaces the income review. It does not replace underwriting.
What Counts, and How Much
On the qualifier path, the percentage shows how much of each balance counts toward the loan amount.
| Asset (qualifier path) | Counts at |
|---|---|
| Brokerage accounts | 100% |
| Certificates of deposit | 100% |
| Money market | 100% |
| Savings | 100% |
| 401(k) or IRA, under age 59½ | 90% |
| 401(k) or IRA, 59½ or older | 100% |
Accounts combine. You can stack them toward the loan amount.
The depletion path uses a harsher haircut, because it turns assets into income.
| Asset (depletion path) | Counts at |
|---|---|
| Cash accounts | 100% |
| Certificates of deposit | 100% |
| Securities | 80% |
| Retirement accounts, any age | 70% |
| Real-estate equity | 60% |
Cash-out proceeds from the new loan never count as qualifying assets. Several items are not eligible on the depletion path, including custodial accounts, deferred compensation and escrow accounts. Foreign funds, cash on hand, stock options and non-vested restricted stock units are also out.
Two Worked Examples
These are illustrations. The lender’s own calculation governs your file.
The qualifier path. Picture a borrower seeking an $800,000 loan. She holds $330,000 in brokerage accounts, which count at 100%. She holds $300,000 in a 401(k) and is under 59½, so it counts at 90%, or $270,000. She also has $200,000 in savings at 100%. Usable assets total $800,000, which matches the loan. She is reviewed on assets alone, subject to underwriting. No employment or income is documented.
The depletion path. Now take a retiree with $1,500,000 in securities and $300,000 in cash. The securities count at 80%, or $1,200,000. The cash counts at 100%. Usable assets are $1,500,000. Divide by 60 months and you get $25,000 of monthly qualifying income. That income must then carry the housing payment and other debts through the debt-to-income test. Whether it does depends on the loan size and your other debts.
Where the General Rule Breaks
Several situations change the answer. Each has a plain rule.
Privately held stock. Privately held company stock is not an eligible asset on either path. A founder or shareholder has a documented route instead. Convert the stock through a sale or buyout into a seasoned cash balance. Public securities and retirement accounts count at their normal percentages.
Crypto, metals and collectibles. Cryptocurrency, precious metals and collectibles are not published as eligible on either path. Business accounts beyond your ownership share and pledged or borrowed funds are not eligible either. The route is the same. Convert them to cash in a regulated account, and the lender reviews the source of the funds.
Cash-out on the qualifier path. Whether cash-out is allowed on this path, and at what leverage, is set by the lender and is not published. If cash-out is your goal, ask your broker to confirm it before you apply.
Cash-out on the depletion path. Leverage is lower on cash-out than on a purchase. On a principal residence or second home, the ceiling is 80% on a purchase or rate-and-term refinance and 60% on a cash-out refinance. On an investment property, it is 65% on a purchase or rate-and-term refinance and 60% on a cash-out refinance.
Minimum assets on the depletion path. 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 asset depletion is your only income. If you also have documented income, asset-derived income may supplement it up to a 45% debt-to-income ratio. In that case, the minimum-assets rule is waived.
First-time investors. A first-time investor on the depletion path needs a 700 credit score. Multiple bankruptcies are not eligible. A housing event needs four years of seasoning on the depletion path. Terms depend on the lender’s guidelines, the property type, the leverage, and a full review of the credit profile.
Funds that skip seasoning. On the depletion path, sale-of-business, inheritance and legal-settlement funds are excused from the 120-day statement rule. That helps recent sellers and heirs.
Investment property. Investment property is eligible only on the depletion path, and that loan is business-purpose. The CFPB’s Regulation Z treats credit for a non-owner-occupied rental as business-purpose. The ability-to-repay rule applies to loans taken mainly for personal, family or household purposes. Loans on a principal residence or second home are consumer mortgages, so standard federal mortgage disclosures apply. Business-purpose status also does not mean a loan is free of rules. A law firm’s analysis of business-purpose lending notes that other federal and state requirements can still apply.
How to Pick a Provider When the Best Depends on Your Situation
You will not find a trustworthy ranked list of the top providers, and Lendmire does not publish one. The best program for your situation depends on your assets, property, credit and leverage need. The lenders that write this loan differ on those points. A broker that shops several wholesale lenders can match you to the right one. The key is knowing what separates them.
| What to compare | Why it matters |
|---|---|
| Accepted asset types | Some lenders weigh retirement or securities differently |
| Cash-out allowance | Qualifier-path cash-out is set by the lender |
| Occupancy | Investment property is depletion-path only |
| Seasoning rules | Statement age can sink an otherwise strong file |
| Loan size | The qualifier path goes higher than the depletion path |
| Broker or lender | A broker compares many programs; a lender sells one |
Across Lendmire’s wholesale network, the seasoning rules and the treatment of retirement accounts are where files most often stall. The strictest overlays want statements untouched and sourced. Move money between accounts before you apply and you can create a paper trail that costs time to explain.
Watch for red flags too. Be wary of anyone who promises approval before reviewing your statements. Be wary of anyone who calls the loan a no-paperwork deal. Be wary of anyone who offers a rate or payment before they know your credit and assets. Real programs review credit, appraisal and assets every time.
Lendmire’s 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. Outside those states, this program is not available.
Other Ways to Pull Cash Out, Compared
An asset-based cash-out refinance is not the only tool. Each alternative has its own rules.
| Option | Who it fits | Tradeoff |
|---|---|---|
| Home equity line | Borrowers with documented income | Program reviews income |
| Bank statement loan | Self-employed with strong deposits | Documents income through deposits |
| DSCR loan | Rental owners | It is reviewed on the property’s rent |
| Selling assets | Those who can absorb the sale | Gives up the holdings |
Selling assets also raises a tax question. Tax treatment varies, so consult a qualified professional.
The asset-based path wins when your balances are strong and your documented income is not. Retirees often fit this profile.
Key Terms Defined
Asset qualifier path: the path where eligible assets, after credit percentages, must equal or exceed the entire loan amount.
Asset depletion path: the path that divides usable assets by 60 months to create monthly qualifying income.
Seasoning: the period your money must sit in an account before a lender counts it.
Cash-out refinance: a new, larger mortgage that pays off the old loan and gives you the difference in cash.
Debt-to-income ratio: your monthly debts divided by your monthly income, which the depletion path uses to test affordability.
Haircut: the share of an asset’s value a lender will not count.
Frequently Asked Questions
Do any lenders skip income entirely?
Lenders skip income documents, not underwriting. On the qualifier path, no employment or income is documented, and the review rests on your assets. On the depletion path, assets are converted into income and tested against your debts. Either way, the file is fully underwritten, and statements prove the assets.
Can I get cash-out without a job?
Yes, through the depletion path, subject to underwriting. Cash-out reaches 60% loan-to-value there, and you need at least $250,000 in liquid assets if depletion is your only income. Retirees and early-retired households often fit. The qualifier path may allow cash-out too, but the lender sets that and it is not published.
Do my retirement accounts count?
Yes, at a discount. On the qualifier path, a 401(k) or IRA counts at 90% under age 59½ and 100% at 59½ or older. On the depletion path, retirement accounts count at 70% at any age. Statements and seasoning rules still apply.
Does privately held company stock count?
No. Founders and shareholders can use proceeds from a sale or buyout once they sit as seasoned cash. Public securities, cash and retirement accounts count at their normal percentages.
Is this the same as hard money?
No. Hard-money loans lean on property equity and the deal itself. This program reviews your file on documented liquid assets and fully underwrites the file. It also differs from DSCR lending, which is reviewed on a rental’s income covering its payment.
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.
For the mechanics of pulling equity out of a rental property, see Lendmire’s guide to cash-out refinance on an investment property.
About Lendmire
Lendmire (NMLS# 2371349) is a mortgage broker licensed for consumer lending in 16 states. Bank statement, P&L-only, 1099-only and asset-based mortgages for self-employed and high-net-worth borrowers are arranged through wholesale lenders on primary residences, second homes and investment properties; every file is underwritten by the lender under its program guidelines. 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
1. CFPB Regulation Z, Section 1026.3, Exempt transactions
2. Federal Register, Ability-to-Repay and Qualified Mortgage Standards
3. Hunton, Beware of Business Purpose
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 Take Cash Out of a Texas Homestead on an Asset Depletion Loan? · How to Refinance a Virginia Mortgage After Retiring With No W-2 Income · Asset Seasoning Rules for a Colorado Asset-Based Mortgage
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
Disclosure information. Lendmire is a state-licensed mortgage brokerage under NMLS# 2371349. Lendmire is not a depository institution, direct lender, or financial advisor — all loans referenced are placed through wholesale lender partners and are subject to each lender's underwriting standards. This article is provided for general informational purposes and is not a commitment to lend, nor does it constitute financial, legal, or tax advice. Loan programs, terms, rates, and qualification standards change without notice and depend on borrower profile, property type, and the state in which the subject property is located. Equal Housing Opportunity provider. NMLS Consumer Access: nmlsconsumeraccess.org.