The Quick Read: Yes, bonds held in a brokerage account count toward the asset qualifier path, and on the program parameters for this network a brokerage account is credited at 100% of its current market value, subject to underwriting. Bonds inside a retirement account take that account’s percentage instead. Lenders in the wider market may discount bonds differently, so the same portfolio can produce different results from one program to the next.
- Brokerage accounts, including the bonds in them, count at 100% on the qualifier path.
- On the asset depletion path, securities (bonds included) count at 80%, then get divided by 60 months.
- Bonds inside retirement accounts take the account’s percentage, not a separate bond percentage.
- Bonds do not become the down payment unless they are sold, and the proceeds season as cash.
- Pledged, margined, or borrowed holdings generally fall out of the pool.
Here is the part most bond owners want to know. You do not have to sell the bonds to qualify. But the path you choose and the account the bonds sit in both change what they are worth to the file.
What Is an Asset Qualifier Mortgage?
An asset qualifier mortgage qualifies a borrower on assets alone. Eligible assets, after the credit percentages below, must equal or exceed the entire loan amount. No employment or income is documented. It is a consumer mortgage for principal residences and second homes, placed through select lenders in Lendmire’s network, and every file is underwritten individually.
It sits next to a cousin, the asset depletion path, and a borrower is qualified on one path at a time. Depletion converts usable assets into monthly qualifying income by dividing by 60 months. That income then carries the housing payment and other debts through a debt-to-income test. The two paths use different percentages, so never blend the tables. The figures below always name the path.
For the full program overview, see Lendmire’s asset-based mortgage programs page.
How Bonds Are Counted on Each Path
On the qualifier path, a brokerage account counts at 100%. Bonds in that account count with the rest of the balance. Certificates of deposit, money market, and savings also count at 100%. Accounts combine, so a portfolio spread across several institutions adds up.
On the depletion path, securities count at 80%. Bonds fall into that securities tier, along with stocks and funds. Cash accounts and CDs count at 100%. Retirement accounts count at 70% at any age. Real-estate equity counts at 60%.
| Holding | Qualifier path | Depletion path |
|---|---|---|
| Bonds in a brokerage account | 100% | 80% (securities) |
| Savings, money market, CDs | 100% | 100% (cash, CDs) |
| Bonds in a 401(k) or IRA | 90% under 59½; 100% at 59½+ | 70% any age |
| Privately held stock | Not eligible | Not eligible |
Why the gap between the paths? The qualifier path asks assets to cover the whole loan outright, so the lender wants the loan covered by seasoned balances. The depletion path turns assets into an income stream for years, so it discounts anything exposed to market swings. Market volatility is the usual reason for a haircut.
Outside this network, guidelines differ from program to program. That is why the same portfolio can produce different results at different lenders, and why a broker who sees several sets of guidelines can matter. Haircuts are a lender and investor overlay, not a federal rule.
Which Kinds of Bonds Count?
Plainly: the program parameters published for this network speak in asset classes, not bond types. They list brokerage accounts, CDs, money market, savings, and retirement accounts. They do not break out Treasuries, agency bonds, corporates, or municipals. For the short-dated end of the market, Lendmire’s piece Do Treasury Bills Count on an Asset Qualifier Mortgage? goes deeper.
What that means in practice:
- Publicly traded bonds and bond funds in a brokerage account are the cleanest case. They show a market value on a statement, and they sit in an account the borrower owns.
- Bonds inside a retirement account take the retirement percentage listed above. The account’s treatment overrides any bond treatment.
- Savings bonds, municipal bonds, and private or unlisted bonds are reviewed case by case. No published rule here says they count at a set percentage, so do not assume one.
- Bonds with a lockup or penalty may be treated differently from bonds you can sell any day. Expect the lender to ask about access.
Value is current market value on the statement, not purchase price or face value. A bond that has dropped in price counts at what it is worth today.
What Else Shapes the Pool
On the qualifier path, eligible assets must cover the entire loan. Reserves are none at or below 75% loan-to-value, and above that the lender sets them. Leverage on this path runs up to 80% on a purchase and 75% on a refinance, on a principal residence or second home, through select programs and subject to underwriting.
On the depletion path, no reserve months are published. But there is a floor. Qualified assets must reach at least the lesser of $1,000,000 or 1.25 times the loan balance, and never less than $250,000 liquid when depletion is the only income source. Asset-derived income may also supplement documented income up to a 45% debt-to-income ratio, and when it does, the minimum-assets rule is waived.
The point for bond owners is simple: bonds can support the pool without being sold. Cash for closing is a different question, covered below.
A Worked Example With Bonds
The arithmetic below is illustrative, and the lender’s own calculation governs. It follows the qualifier path.
Say a borrower seeks an $800,000 loan. Their balances look like this:
- Brokerage accounts holding bonds and funds: $330,000 at 100% counts $330,000.
- A 401(k) under age 59½: $300,000 at 90% counts $270,000.
- Savings: $200,000 at 100% counts $200,000.
Usable assets total $800,000 once the credit percentages are applied. That equals the loan amount, so the file is reviewed on assets alone, subject to underwriting. The bonds in the brokerage account did real work here, and none were sold.
Now the depletion path. Take $1,500,000 in securities, bonds included. At 80%, that counts $1,200,000. Add $300,000 in cash at 100%, and usable assets are $1,500,000. Divide by 60 months and you get $25,000 of monthly qualifying income. That income then has to carry the housing payment and other debts through the debt-to-income test.
Notice what each path rewards. If the loan is modest relative to your balances and you want no income documentation, the qualifier path tends to fit. If your balances are large and the loan is sizable, converting assets to income can work, but the haircuts bite harder.
Seasoning and Documentation for Bonds
The assets are documented on both paths. “No income documentation” never means “no documentation.” Plan on providing asset statements; traditional personal-income documentation, such as pay stubs or employment verification, is not part of the file.
- 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.
Moving money matters. If you shift cash into bonds, expect underwriting to look at where the money came from and when. Large recent deposits draw questions. Keep the paper trail clean, and avoid shuffling balances between accounts just before applying.
Credit still counts. The qualifier path has a 600 minimum score. The depletion path follows the lender’s matrix, and a first-time investor on that path needs 700. A 0x30x12 housing history is the standard, with a single recent 30-day late considered case by case. None of this is a promise of approval.
Bonds and Cash to Close
Here is a distinction that catches people. A brokerage statement proves you own assets, but a down payment has to arrive as cash. Unsold bonds do not turn into cash to close. If the plan needs a down payment, those bonds have to be sold, and the proceeds then season in a regulated account.
Pledged or margined holdings are a related trap. Bonds securing a line of credit are encumbered. Underwriters may exclude them or count them at a reduced value, and borrowed funds usually fall out of the pool altogether.
Across the files our network sees, the cleaner path is often a hybrid. Keep the bonds in place to carry the qualifying math, and sell only what closing needs. That avoids a forced sale of the whole position. But it is not always right. If the bonds are near a sale anyway, or the market value has dipped below what you paid, selling a slice may be the better financial move regardless of the loan.
What Does Not Count
Several asset classes are not published as eligible on either path. Plainly: cryptocurrency, precious metals, collectibles, business accounts beyond the borrower’s ownership share, and pledged or borrowed funds. Privately held stock is not eligible on either path. The documented route is converting these to a seasoned cash balance in a regulated account, with the source reviewed by the lender. Do not expect them to count at a percentage.
On the depletion path, these are also not eligible: 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.
Equity in the property you are buying never counts as an asset for repayment purposes. The CFPB’s official commentary, hosted by the Federal Reserve, says the value of the dwelling securing the loan is not evidence of repayment ability. Equity in other real estate counts only on the depletion path, at 60%.
Common Mistakes Bond Owners Make
1. Assuming bonds count at 100% everywhere. On the qualifier path brokerage balances do. On the depletion path securities take a haircut. Lenders differ again.
2. Forgetting the retirement overlay. Bonds inside an IRA take the IRA’s percentage, not the brokerage percentage.
3. Counting pledged bonds. If they secure a loan, they likely will not count at full value.
4. Using face value instead of market value. The statement’s current market value is what gets measured.
5. Believing asset-based means no underwriting. Credit, seasoning, and statements all get reviewed.
6. Assuming a bigger portfolio always means a bigger loan. Pledged and borrowed holdings may not count, and the percentages trim each balance.
Key Terms Defined
Haircut: the share of an asset’s value a lender ignores, to allow for price swings or limited access.
Divisor: the number of months used to turn usable assets into monthly income; this network uses 60 on the depletion path.
Seasoning: how long funds have sat in an account before the lender will count them.
Usable assets: the balance that remains after credit percentages are applied.
Asset depletion: the path that converts usable assets into qualifying income for the debt-to-income test.
Does Business-Purpose Lending Change the Answer?
One short point on scope. This article describes a consumer mortgage for a home you live in or a second home. Investment property is different. On the asset depletion path, investment property is allowed at lower leverage, up to 65% on a purchase or rate-and-term refinance and 60% on a cash-out, subject to underwriting. Pure rental purchases are usually better matched to business-purpose financing like a DSCR loan, which qualifies primarily on property-level rental income covering the payment, subject to lender guidelines. The Federal Register’s ability-to-repay final rule treats investment-purpose loans as business-purpose, and the commentary above sets no list of eligible assets or haircuts for any loan, so bond treatment comes from each program’s own guidelines.
Which path suits you? If your bonds and cash cover the loan and you want income left undocumented, the qualifier path is the direct fit. If you own a large portfolio but the loan is bigger than your usable assets, depletion lets the portfolio act as income. Retirees living on a portfolio often fit depletion. Someone who just sold a business may fit the qualifier path.
Tax treatment varies; consult a qualified professional before making decisions about selling bonds.
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 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. Not a commitment to lend.
Frequently Asked Questions
Do I have to sell my bonds to qualify?
No. Asset-based qualification is a calculation method, and selling is not required to qualify. The bonds can stay in your brokerage account and count toward the file. The exception is cash for the down payment and closing costs, which has to arrive as cash, so that portion would have to be sold and seasoned.
Do municipal bonds and savings bonds count?
They are reviewed case by case. The published parameters for this network list account types, not individual bond categories. Publicly traded bonds in a brokerage account are the clearest case. Savings bonds, municipals, and private or unlisted bonds should be shown to the lender up front rather than assumed eligible.
Do bond funds count the same as individual bonds?
In a brokerage account, both show up as a market value on the statement, and both fall under the account’s treatment. On the qualifier path that is 100%. Underwriting reviews the holdings, so confirm the specific fund before relying on the figure.
Can I count the interest my bonds pay?
The program parameters do not publish a rule for adding bond interest on top of asset-derived income. On the depletion path, asset income may supplement documented income up to a 45% debt-to-income ratio. Whether interest can also be counted is a question for the lender during review.
What if my bonds are in an IRA?
The retirement account’s percentage applies. On the qualifier path that is 90% under age 59½ and 100% at 59½ or older. On the depletion path it is 70% at any age. The bonds do not get a separate, higher treatment just because they are bonds.
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.
Get Started
Ready to find the right loan for you?
In about 30 seconds you can review financing options available for your home or investment property. No commitment required.
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. Federal Reserve – CFPB Official Staff Commentary on Regulation Z
2. Federal Register – CFPB Ability-to-Repay and Qualified Mortgage 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: When Should a North Carolina Buyer Choose the Asset Qualifier Path Over Asset Depletion? · Can Two Texas Retirees Buy a Home Together on an Asset Qualifier Mortgage? · Can a Pennsylvania Divorce Settlement Count as Assets for a 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
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.