The Quick Read: Yes. Money market balances count toward an asset-based mortgage on both paths the network offers, and on the asset qualifier path they count at 100% of the balance, subject to underwriting and the lender’s own review of the statements.
- On the asset qualifier path, eligible assets must equal or exceed the entire loan, and no employment or income is documented.
- On the asset depletion path, usable assets are divided by 60 months into a qualifying income that runs through the debt-to-income test.
- A money market fund is a securities product, not a bank deposit, so the statement type and the account title get a closer look.
- Statements are required on both paths. Assets are documented even when income is not.
- Consumer asset-based lending is licensed in 16 states, and a pure rental purchase usually belongs on a DSCR loan instead.
The rest of this piece covers how each path treats these balances, what trips files up, and when a different loan fits better.
What Counts as a Money Market Fund Here?
A money market fund is a mutual fund that holds short-term debt and cash equivalents. Investor.gov, the SEC’s investor education site, describes these funds as carrying relatively low risk compared with most other investments. That is why underwriters tend to read them as cash-like.
The name causes confusion, though. A money market account is a bank deposit. A money market fund sits in a brokerage or fund-company account. Vanguard’s investor education page draws the same line and adds that funds are not FDIC insured and aim to hold a $1.00 share price without guaranteeing it.
Why does that matter on a file? Because the paperwork differs. A deposit account shows up on a bank statement. A fund shows up on a brokerage statement with the fund name, the owner, and the balance. Across the wholesale network, the fund usually gets sorted with brokerage-held assets, so processors want the full statement, not a screenshot.
| Product | Where it sits | Statement to provide |
|---|---|---|
| Money market fund | Brokerage or fund company | Brokerage statements |
| Money market account | Bank or credit union | Bank statements |
| Brokerage sweep cash | Brokerage account | Brokerage statements |
How the Asset Qualifier Path Treats Money Market Balances
Brokerage accounts, certificates of deposit, and savings are eligible assets on this path. Retirement balances count at 90% under age 59½ and 100% at 59½ or older. The accounts combine.
The test is simple. After those percentages, the usable total must equal or exceed the entire loan amount. No employment or income is documented. Leverage runs up to 80% on a purchase and 75% on a refinance for a principal residence or second home, with loans up to $4,000,000, subject to underwriting. The credit floor is 600.
Here is an illustration. Picture a borrower seeking an $800,000 loan. They hold $330,000 in brokerage accounts (counted at 100%, so $330,000), $300,000 in a 401(k) under age 59½ (counted at 90%, so $270,000), and $200,000 in savings (counted at 100%, so $200,000). That counts $800,000 of usable assets and meets the test on assets alone. A money market fund balance would slot in the same way as the brokerage line. The lender’s own calculation governs.
Reserves are light on this path. None are required at or below 75% loan-to-value. Above that, the lender sets them.
How the Asset Depletion Path Treats Them
On the asset depletion path, the money market treatment depends on how the lender classifies the account. Cash accounts and certificates of deposit count at 100%. Securities count at 80%. A bank money market account reads as cash. A fund held at a brokerage can be read as a security.
That gap is the single biggest swing on depletion files. Some programs in the network put the fund with cash. Others haircut it with the brokerage assets. The program guidelines are not uniform, so the fund-versus-account question gets confirmed per lender before the numbers are built. A published depletion haircut specific to money market funds does not exist in the network guidelines, and no one should assume one.
The math converts assets into income. Usable assets are divided by 60 months. Take $1,500,000 in securities (counted at 80%, so $1,200,000) plus $300,000 in cash (counted at 100%, so $300,000). That is $1,500,000 usable, or $25,000 of monthly qualifying income. That income then carries the housing payment and other debts through the debt-to-income test. This is illustrative, and the lender’s calculation controls.
Other depletion-path terms:
- Leverage on a principal residence or second home is up to 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.
- Loan amounts run from $125,000 to $3,500,000.
- Qualified assets must be at least the lesser of $1,000,000 or 1.25 times the loan balance. When asset depletion is the only income source, liquid assets can never be below $250,000.
- Asset-derived income can supplement documented income up to a 45% debt-to-income ratio. When it supplements, the minimum-assets rule is waived.
- Credit follows the lender’s matrix, and a first-time investor needs a 700 score.
- Cash-out proceeds never count as qualifying assets.
All of these are subject to underwriting and select program terms.
Rules That Can Disqualify a Balance
A large balance does not always count in full. These are the usual reasons it does not.
Seasoning. On the qualifier path, funds need 60 days of seasoning and two months of statements for each 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.
Recent moves. A borrower who sold stock last month and parked the proceeds in a fund has a seasoning problem on the qualifier path. The fix is waiting out the window, not rewording the file.
Ownership. The account has to belong to the borrower. Business accounts count only for the borrower’s ownership share, and custodial accounts are not eligible on the depletion path.
Pledged or borrowed money. Pledged assets and borrowed funds are not published as eligible on either path.
Down payment overlap. Funds going to the purchase come out first. The same balance cannot be counted as the down payment and again as the pool.
Excluded asset types. On the depletion path, escrow accounts, foreign funds, cash on hand, stock options, non-vested restricted stock units, and funds from non-regulated financial companies do not count.
Crypto, precious metals, and collectibles are not published as eligible. The documented route is converting them to a seasoned cash balance in a regulated account, with the source reviewed by the lender.
The most common stall on these files is a stale or partial statement. A statement missing pages, or one that shows only the fund summary, draws a request for the full document. Pull complete statements, with every page, before the file goes in.
Documentation Checklist
“No income documentation” never means “no documentation.” The assets are documented on both paths.
1. Full statements for every qualifying account, all pages, showing the owner’s name. 2. Two months of statements per account on the qualifier path. 3. On the depletion path, a statement at least 120 days old plus the most recent one within 45 days. 4. Source documents for any large recent deposit. 5. Proof of the account’s title if it is joint or held in a trust. 6. Credit information for the lender’s matrix review.
For trust-held balances, Lendmire’s piece How to Use Trust Assets to Qualify on an Asset Depletion Mortgage covers the titling questions.
Do You Have to Sell the Fund?
No. The balance counts as an asset on the statement. Nothing in the program requires liquidating it to qualify. On the qualifier path the balance is counted toward the loan amount. On the depletion path it is divided into income. Funds you need for the down payment and closing costs are a separate matter and come out of the pool first. Lendmire’s guide How to Qualify for an Asset Depletion Mortgage Without Selling Investments walks through that.
The Investor Question: When DSCR Is the Better Fit
This asset-based mortgage is a consumer loan for a principal residence, a second home, or, on the depletion path only, an investment property. For a pure rental purchase, the better tool is usually a DSCR loan.
DSCR loans are designed for non-owner-occupied investment properties. Because they are business-purpose investor loans, they are reviewed differently from a standard owner-occupied mortgage. The Federal Register’s final rule treats loans with a business purpose as outside the consumer ability-to-repay provisions, and investment-purpose loans count as business-purpose.
A DSCR file qualifies primarily on property-level rental income covering the payment, subject to lender guidelines. Here the money market fund does a different job. It shows up as documented liquid reserves, not as income. Programs below a 1.00 coverage ratio are available through select lenders in the network, though leverage and terms adjust. The complete DSCR loans guide covers those mechanics.
| Situation | Better fit |
|---|---|
| Cash-heavy, income-light, buying a home | Asset qualifier or depletion path |
| Cash-heavy, buying a rental | DSCR loan |
| Documents income with deposits | Bank statement program |
| Wants income from assets plus pay | Depletion path, supplementing income |
Tax treatment varies; consult a qualified professional before relying on any deduction.
Common Mistakes
- Treating a fund like a bank account. It is a securities product. Expect brokerage statements.
- Double-counting. Down payment dollars cannot also be the asset pool.
- Mixing the paths. A borrower is qualified on one path at a time. The qualifier path’s percentages do not apply on the depletion path.
- Assuming the fund is insured. Funds are not FDIC insured. The SEC notes that swept cash may carry SIPC protection, which covers broker failure, not losses in the fund.
- Skipping the full statement. Partial pages draw conditions.
If the numbers are tight, a different mix of accounts or a lower loan amount can change the result.
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 broker arranging financing through select lenders in its wholesale network, and consumer asset-based lending is available in 16 states, subject to underwriting. This is not a commitment to lend.
Frequently Asked Questions
Do money market funds count at full value?
On the asset qualifier path, money market balances count at 100%. On the depletion path, cash accounts count at 100% and securities at 80%, so the fund’s classification matters. Confirm how the lender reads a brokerage-held fund before building the numbers.
Is a money market account treated the same as a money market fund?
Not always. The account is a bank deposit and reads as cash. The fund is a securities product held at a brokerage, which may be sorted with securities on the depletion path. Both count at 100% on the qualifier path.
How many months of statements are needed?
The qualifier path asks for two months per qualifying account and 60 days of seasoning. The depletion path needs statements at least 120 days old plus the most recent one within 45 days.
Can the same balance cover the down payment and the asset pool?
No. Down payment and closing funds come out first. Only what remains counts toward the pool, so build the numbers after setting aside the cash for closing.
Do I need a 600 credit score?
On the qualifier path, 600 is the published minimum. The depletion path follows the lender’s score and loan-amount matrix, and a first-time investor there needs 700. Approval is never assured and every file is underwritten individually. The exact numbers vary by lender and program and follow a full review of property, leverage, and credit.
Can I use this for a rental property?
Only on the depletion path, with investment-property leverage of 65% on a purchase and 60% on a cash-out. For most rental purchases, a DSCR loan is the more direct fit.
About Lendmire
Lendmire — NMLS# 2371349 — is a mortgage broker that arranges bank statement, P&L-only, 1099-only and asset-based home financing in 16 states through wholesale lenders, on primary residences, second homes and investment properties. Every option is subject to the lender’s guidelines and full underwriting. Scotsman Guide named Lendmire a Top Mortgage Workplace in both 2025 and 2026.
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References
1. SEC Investor.gov – Money Market Funds Investor Bulletin
2. Vanguard – What Are Money Market Funds
3. Federal Register – Ability-to-Repay and Qualified Mortgage Standards Final Rule
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 Asset Qualifier Income Is Calculated for a Jumbo Mortgage · How Big Can an Asset Qualifier Mortgage Be? · Asset Qualifier Mortgage vs Bank Statement Mortgage
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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Compliance and disclosures. Lendmire (NMLS# 2371349) is a licensed mortgage broker and is not a direct lender, depository institution, financial advisor, or tax professional. Content in this article is general market analysis and educational information — not financial, legal, or tax advice for any specific situation. Lendmire does not guarantee loan approval; every transaction is subject to underwriting by the funding lender. Mortgage pricing and loan program guidelines are subject to change at any time without notice and vary by borrower characteristics, property type, and state regulations. Lendmire complies with Equal Housing Opportunity. Licensure verification: NMLS Consumer Access.