The Quick Read: Neither channel counts your assets “more” by default. The guideline book counts them, and the channel decides how many guideline books you can reach. A bank applies one book. A broker can compare several lenders’ books, each with its own percentages and rules.
- A bank fits when you hold large balances there and its single book happens to treat your mix of assets well.
- A broker fits when your assets are mixed (retirement, securities, cash) and you want more than one rulebook to test.
- The two paths work differently: the asset qualifier path uses assets to cover the whole loan, while the asset depletion path turns assets into monthly income.
- Both paths document your assets in full. Skipping income documents never means skipping asset documents.
The honest answer is who each option is for. A bank suits a borrower whose assets sit mostly with one institution and fit its guidelines cleanly. A broker suits a borrower whose assets are spread out or unusual and who wants the same portfolio measured against several rulebooks. Neither one changes the math on your balances. It changes which math gets applied.
This page is written for the cash-heavy, income-light borrower: a retiree, someone who sold a business, an heir, or a household living off a portfolio. The figures below are ceilings and floors from select programs in Lendmire’s wholesale network, subject to underwriting. They are not offers.
Side-by-Side
The “bank” column reflects published industry norms. A bank is a lender that makes direct loans. A broker does not lend. A broker places your file with lenders. Lendmire’s network places both kinds of files, so nothing here means a route is unavailable.
| Factor | Bank (published norms) | Broker (wholesale network) |
|---|---|---|
| Who writes the rules | One institution | Several lenders, each different |
| Review basis | Varies by the bank’s own product shelf | Assets alone, or assets turned into income |
| Documentation | Bank’s own statements and forms | Statements for every qualifying account |
| Property types | Set by the bank’s guidelines | Varies by lender; some allow investment property |
| Entity vesting | Often personal name | Program-dependent; confirm per lender |
| Reserve expectations | Set by the bank | Qualifier path: none at 75% LTV or less |
| If one lender declines | You start over | Broker can test another lender |
| Relationship factor | Deposits held there may matter | Not a factor in wholesale placement |
Ask the specific bank what it offers rather than assuming either way.
Two Paths, Two Ways Assets Count
Before choosing a channel, know which path your file needs. You are on one path at a time.
Asset qualifier path. Eligible assets, after the percentages below, must equal or exceed the entire loan. No employment or income is documented. Through select programs in the network, leverage goes up to 80% on a purchase and 75% on a refinance, on a principal residence or second home. Loans reach $4,000,000, with a 600 minimum credit score, subject to underwriting.
On this path, brokerage accounts, CDs, money market and savings count at 100%. A 401(k) or IRA counts at 90% under age 59½ and 100% at 59½ or older. Accounts combine.
Here is an illustrative case. Take an $800,000 loan. You hold $330,000 in brokerage accounts (100% counts $330,000), $300,000 in a 401(k) under 59½ (90% counts $270,000), and $200,000 in savings (100% counts $200,000). That totals $800,000 of usable assets, which covers the loan on assets alone. The lender’s own calculation governs.
Asset depletion path. Usable assets are divided by 60 months to produce monthly qualifying income. That income must carry the housing payment and your other debts through the debt-to-income test. Cash and CDs count at 100%, securities at 80%, private stock at 75%, retirement accounts at 70% at any age, and real-estate equity at 60%.
Another illustrative case. You hold $1,500,000 in securities (80% counts $1,200,000) plus $300,000 in cash (100% counts $300,000). That is $1,500,000 usable, divided by 60 months, which gives $25,000 of monthly qualifying income. That income then has to carry your housing payment and other debts.
The two tables never blend. A 401(k) counts at 90% or 100% on the qualifier path, but at 70% on the depletion path. Mixing them up is a common mistake in this space.
Who Counts More, Asset by Asset
Here is where the bank-versus-broker question gets concrete. The figures in the broker column come from programs Lendmire places files with. The bank column is general industry description, not a promise about any one institution.
| Asset | Qualifier path | Depletion path | A single bank’s book |
|---|---|---|---|
| Cash, savings, CDs | 100% | 100% (cash, CDs) | Varies by bank |
| Brokerage / securities | 100% | 80% | Varies by bank |
| Retirement accounts | 90% under 59½; 100% after | 70% at any age | Often discounted |
| Private stock | Not published | 75% | Varies by bank |
| Real-estate equity | Not published | 60% | Varies by bank |
Notice what the table shows. The same brokerage account counts at 100% on one path and 80% on the other. The path moves the number more than the channel does. A broker’s real advantage is choosing the path and the lender whose rulebook fits your portfolio. A bank’s advantage is that it already holds some of your assets and may treat them as familiar.
There is also a practical point about relationship. A bank can sometimes weigh deposits held with that institution. It is a possibility worth asking about. It is not a guaranteed benefit, and it differs by institution.
When a Bank Is the Better Fit
A bank can be the right call in a few situations. Be honest with yourself about whether yours matches.
- Most of your wealth already sits there. If your balances are concentrated at one institution, that institution can see them directly. Documentation may be simpler.
- Your portfolio is plain. If you hold mostly cash and CDs, nearly every rulebook counts you at or near 100%. Shopping more rulebooks gains little.
- You value one point of contact. A bank with a private-client team can handle the whole relationship under one roof.
- You already know its product shelf includes asset-based lending. Ask directly. Some do. Some do not.
The tradeoff is simple. If the bank’s one rulebook fits, you save effort. If it does not, you have nowhere else to go inside that building.
When a Broker Is the Better Fit
A broker earns its place when your file is not plain.
- Your assets are mixed. Retirement accounts, securities, private stock and cash get different percentages in different rulebooks. Testing several books can show which one treats your mix best.
- You are buying an investment property on assets. On the depletion path, investment property is available through select programs, up to 65% on a purchase or rate-and-term refinance and 60% on a cash-out. Cash-out proceeds never count as qualifying assets.
- You were declined, or expect to be. A broker can re-place a declined file with a different lender. That depends on the second lender’s rules, not on the broker’s influence over any underwriter.
- You want to compare structures. The qualifier path and the depletion path suit different borrowers. A broker can run both against your statements.
Brokers are paid a loan-specific fee, which the CFPB explains in its guidance on the difference between lenders and brokers. The same page notes some firms act as both, so ask whether a broker is involved. Compare the full terms on whichever quote you receive. The consumer disclosures on an asset-based mortgage on a home you live in work like any other consumer mortgage.
A fair warning: a broker does not control any lender’s underwriter. More rulebooks means more chances, not a guarantee.
What Reduces Your Counted Assets
Whichever channel you pick, some things shrink the balance a lender will count.
- Borrowed or pledged funds. Margin balances and pledged accounts are not published as eligible on either path.
- Crypto, precious metals, collectibles. Not published as eligible on either path. The documented route is converting them to a seasoned cash balance in a regulated account, with the source reviewed by the lender.
- 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 are not eligible on the depletion path.
- Business accounts. Only your ownership share is considered.
Entity papers matter too if you buy through an LLC. Under investment-property rules, personal guarantees are common, and entity files commonly stall on mismatched names and stale documents. Eligibility for entity vesting depends on program guidelines.
Documentation and Seasoning
“No income documentation” never means “no documentation.” Your assets are documented on both paths.
- Qualifier path: 60 days of seasoning and two months of statements for each qualifying account.
- Depletion path: statements 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.
- Depletion minimums: qualified assets of at least the lesser of $1,000,000 or 1.25 times the loan balance, and never below $250,000 liquid when depletion is your only income source.
- Credit: the qualifier path has a 600 minimum score. The depletion path follows the lender’s matrix, and a first-time investor needs 700. Housing history is 0x30x12, and one 30-day late in the last twelve months is considered case by case.
If you also have some documented income, asset-derived income can supplement it up to a 45% debt-to-income ratio. When it supplements, the minimum-assets rule is waived, subject to underwriting.
How to Compare Two Quotes Fairly
Place the bank’s offer and a broker’s option side by side using the same inputs.
1. Use the same balances and the same statement dates.
2. Ask which path each quote assumes, qualifier or depletion.
3. Ask what percentage each counts for every asset type, including retirement accounts.
4. For depletion, ask what divisor is used. A shorter divisor produces higher qualifying income. The 60-month divisor is the one used in the network figures here.
5. Compare what is left after the down payment and closing funds, not the headline balance.
6. Compare total terms, not one number.
A Short Note on Regulation
Asset-based mortgages on a home you live in are consumer loans. Business-purpose rental financing is a separate category. Regulation Z exempts credit extended primarily for a business purpose. That is why DSCR loans, which qualify primarily on property-level rental income covering the payment, are reviewed differently. The distinction matters for owner-occupied two- to four-unit properties, which may not qualify as business-purpose.
Tax treatment varies; consult a qualified professional.
The Verdict
Pick the bank when your assets are plain, concentrated there, and the bank confirms it offers asset-based lending. Pick a broker when your portfolio is mixed, you want investment property, or you want a second rulebook if the first says no. Many borrowers ask both and compare the results using the checklist above.
Key Terms Defined
- Asset qualifier path: eligible assets, after percentages, cover the entire loan with no income documented.
- Asset depletion path: usable assets divided by 60 months become monthly income for the debt-to-income test.
- Haircut: the share of a balance a lender does not count.
- Seasoning: the time funds must sit in an account before they count.
- Debt-to-income (DTI): monthly debts divided by monthly income.
Frequently Asked Questions
Do banks offer asset-based mortgages?
Some do and some do not. Offerings vary by institution, so ask the specific lender which path, if any, it offers and how it counts each asset type.
Do I have to sell my investments?
No. You do not pledge or liquidate qualifying assets on these paths. They are documented and counted, subject to underwriting.
Are retirement accounts counted?
Yes, at a discount. On the qualifier path they count at 90% under age 59½ and 100% at 59½ or older. On the depletion path they count at 70% at any age.
Is crypto counted?
Not directly. It is not published as eligible on either path. The documented route is converting it to a seasoned cash balance in a regulated account, with the source reviewed by the lender.
Can I use both channels?
Yes. Ask for each option in writing, then compare them using the same balances and the same path assumptions.
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 mortgage broker, and these programs are placed through select lenders in its network, not a commitment to lend.
About Lendmire
As a mortgage broker (NMLS# 2371349), Lendmire helps self-employed and high-net-worth borrowers in 16 states qualify on bank statements, a profit-and-loss statement, 1099s or liquid assets instead of traditional personal-income documentation, through wholesale lenders. Lendmire is never the lender; program terms are set by the lender and its guidelines. Scotsman Guide named Lendmire a Top Mortgage Workplace in both 2025 and 2026.
Investors who want the broader program framework can review how DSCR loans work.
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References
1. CFPB: What is the difference between a mortgage lender and a mortgage broker?
2. CFPB: Regulation Z § 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 Mortgage vs Home Equity Investment for Retirees Who Need Cash · Reserves vs Qualifying Assets on an Asset Qualifier Mortgage · Can a Business Owner Use Company Cash to Qualify for an 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
Required disclosures. Lendmire (NMLS# 2371349) operates as a licensed mortgage broker, not a direct lender or depository. The discussion in this article is general in nature and should not be relied upon as financial, legal, or tax advice — every investment scenario is unique and should be reviewed by a qualified professional. Any loan inquiry is subject to lender underwriting, and this article is not a commitment to lend or a guarantee of approval. Mortgage rates, loan terms, and program guidelines vary by borrower, property, and state, and may change without notice. Equal Housing Opportunity. Verify licensure at NMLS Consumer Access.