The Quick Read: Yes, in some cases: on the asset qualifier path, eligible assets must cover the entire loan and no income is documented, and on the asset depletion path your assets are converted into monthly qualifying income, so a brokerage account can carry a mortgage on a primary residence or second home, subject to underwriting. For a rental purchase, the picture changes. A DSCR loan tests the property’s rent, and your brokerage account supplies the down payment and reserves.
- Asset qualifier path: brokerage balances count at 100%, and eligible assets must equal or exceed the whole loan.
- Asset depletion path: securities count at 80%, and usable assets divided by 60 months become your qualifying income.
- You never sell anything. Both paths are qualification methods, so your portfolio stays invested.
- Documentation still applies. Skipping income paperwork is not the same as skipping asset paperwork.
- Rentals usually go DSCR. The account funds the deal, and the rent has to pass its own test.
Which Question Are You Really Asking?
There are two different questions hiding in this one, and mixing them up is a common mistake investors make here.
The first question is whether your brokerage account can be the basis for approval on a consumer mortgage. That means a home you live in or a second home. In this case the account is the qualification.
The second question is whether your account helps you buy a rental. Here the answer is different. A rental purchase is usually financed with a DSCR loan, which is built around the property’s income and not yours. DSCR stands for debt service coverage ratio, and it compares monthly rent to the full monthly housing obligation. Your brokerage account does not become income on that loan. It becomes cash to close and cash in reserve.
Most of this article covers the first question, because that is where “brokerage account alone” has a real mechanism. The DSCR path gets its own section further down. For the full picture on rental financing, Lendmire’s complete DSCR loans guide covers it end to end.
What Does “Alone” Actually Mean?
“Alone” means you document no employment and no tax-return income. It does not mean you document nothing. The lender still verifies your identity, pulls credit, reviews the property, and checks every account you list.
Across the wholesale network Lendmire places asset-based files with, two structures exist. Each one treats assets differently, and a borrower is qualified on one path at a time. You never blend them.
| Factor | Asset qualifier path | Asset depletion path |
|---|---|---|
| Core test | Assets cover the entire loan | Assets become monthly income |
| Income documented | None | Derived from assets |
| Divisor | Not used | 60 months |
| Loan amounts | Up to $4,000,000 | $125,000 to $3,500,000 |
| Credit | 600 minimum score | The lender’s matrix |
| Statements | Two months per account | 120 days old plus one within 45 days |
These are ceilings and floors offered through select programs, not offers. Every file is underwritten individually, and the lender’s own calculation governs.
How the Asset Qualifier Path Works
The qualifier path asks one question: do your eligible assets equal or exceed the entire loan amount? If they do, the file is reviewed on assets alone. No income calculation happens, and no employment is documented.
Leverage on this path is up to 80% loan-to-value on a purchase and 75% on a refinance, for a principal residence or second home. Loan-to-value, or LTV, is the loan amount divided by the property’s value. Whether cash-out proceeds are allowed on this path is set by the lender and is not published, so ask before you plan around it.
Accounts combine, and each type counts at a set share of its balance:
- Brokerage accounts, certificates of deposit, money market and savings count at 100%.
- A 401(k) or IRA counts at 90% if you are under age 59½, and at 100% at 59½ or older.
Here is the sanctioned shape of the math. Say you want an $800,000 loan. You hold $330,000 in brokerage accounts (counts at 100%, so $330,000), $300,000 in a 401(k) while under 59½ (counts at 90%, so $270,000), and $200,000 in savings (counts at 100%, so $200,000). That adds up to $800,000 of usable assets, which covers the loan. The file is reviewed on assets alone, subject to underwriting.
Reserves are simple on this path. None are required at or below 75% loan-to-value. Above that, the lender sets them.
Seasoning is the waiting period an account must show before it counts. On the qualifier path it is 60 days, with two months of statements for each qualifying account.
How the Asset Depletion Path Works
The depletion path turns your portfolio into income. The lender totals your usable assets after haircuts, divides by 60 months, and treats the result as monthly qualifying income. A haircut is the share of a balance the lender discounts because the asset can swing in value or is harder to reach.
That income then runs through the debt-to-income test, or DTI. DTI compares your monthly debts, including the new housing payment, to your monthly income. The derived income has to carry the full housing payment and your other debts.
The sanctioned example: $1,500,000 in securities counts at 80%, which is $1,200,000. Add $300,000 in cash at 100%. That gives $1,500,000 of usable assets. Divide by 60 months and you get $25,000 of monthly qualifying income, which then carries the housing payment and other debts through the DTI test.
Haircuts on this path run as follows:
- Cash accounts and certificates of deposit: 100%.
- Securities, including brokerage holdings: 80%.
- Private stock: 75%.
- Retirement accounts: 70% at any age.
- Real-estate equity: 60%.
Leverage depends on what you are buying. On a principal residence or second home, it 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 up to 65% on a purchase or rate-and-term refinance and 60% on a cash-out refinance. Cash-out proceeds never count as qualifying assets.
The depletion path also has minimums. Qualified assets must be at least the lesser of $1,000,000 or 1.25 times the loan balance. When assets are your only income source, you also need at least $250,000 liquid. If you have other documented income, asset-derived income can supplement it up to a 45% DTI, and the minimum-assets rule is waived.
Credit follows the lender’s score and loan-amount matrix. A first-time investor on this path needs a 700 score. Housing history of 0x30x12 is the target, although one 30-day late in the last twelve months is considered case by case. Multiple bankruptcies are not eligible, and a housing event needs four years of seasoning.
Why a Brokerage Account Is Treated Differently Than Cash
A brokerage balance can fall tomorrow. A savings balance cannot. That one difference explains why the two paths treat the same account differently.
| Account type | Asset qualifier path | Asset depletion path |
|---|---|---|
| Brokerage and securities | 100% | 80% |
| Cash and savings | 100% | 100% |
| Certificates of deposit | 100% | 100% |
| Retirement accounts | 90% under 59½, 100% after | 70% at any age |
| Real-estate equity | Not listed | 60% |
Notice that the qualifier path is friendlier to a brokerage account. That path asks for a bigger cushion, though, because assets must cover the whole loan and not just support an income figure. The depletion path discounts securities but needs a smaller pile relative to a large loan, as long as the derived income clears the DTI test.
Many investors choose by running both calculations on their statements and comparing. Lendmire’s piece How to Qualify for a Mortgage on Liquid Assets Alone walks through that comparison.
What a Brokerage-Only File Still Needs
A brokerage account does not remove the other pieces of a mortgage file. Even with no income documented, the lender reviews:
- Credit. The qualifier path has a 600 minimum score, and the depletion path follows the lender’s matrix.
- The property. Occupancy, value, and type all affect leverage.
- Existing debts. On the depletion path they sit inside the DTI test.
- Source of funds. Large deposits and transfers between accounts get traced.
Occupancy matters most. These asset-based programs are consumer mortgages for principal residences and second homes. Investment property is allowed only on the asset depletion path, and at lower leverage than a home you live in.
Brokerage-Specific Complications
Brokerage files hit snags that savings files never do. Raise these early.
Titling. The account has to be in your name, or you need to prove access and ownership. Joint accounts and accounts held by an entity need extra verification. The program counts only your ownership share of a business account.
Concentrated positions. A portfolio that is mostly one stock still counts as a security on the depletion path, but a large single holding is a risk you should weigh yourself. Private stock counts at 75% on that path.
Ineligible holdings. On the depletion path, stock options, non-vested restricted stock units, custodial accounts, deferred compensation and escrow accounts do not count. Foreign funds, cash on hand, and funds from non-regulated financial companies also do not count.
Crypto, metals, and collectibles. Neither path publishes these as eligible. The documented route is converting them to a seasoned cash balance in a regulated account, with the source reviewed by the lender.
Borrowed or pledged funds. These are not published as eligible either. If you have a margin loan against the account, tell your broker at the start.
Multiple custodians. Accounts combine, but each one needs its own statements. Gaps in statements and unexplained transfers between accounts are common reasons files stall.
Market swings. Statement balances are what the lender reviews, and security prices move. Leave yourself a cushion above the minimum, because a thin file has no room to absorb a down month.
The Rental Property Path: DSCR
This is where most investors end up. 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.
A DSCR loan is reviewed primarily on property-level rental income covering the payment, subject to lender guidelines. The ratio is gross monthly rent divided by the full monthly housing obligation, which covers principal, interest, taxes, insurance, and any HOA dues. A ratio near 1.0 means rent roughly covers the payment. Programs below 1.00 coverage are available through select lenders in the network, but LTV and terms adjust.
Your brokerage account has a different job here. It funds the down payment, the closing costs, and the reserves the lender wants to see after closing. Reserves are the cash left over after closing. The account is necessary, but it is not sufficient, because the property still has to pass the rent test.
Picture an investor who sold a business and now holds a large brokerage balance and little reported income. That investor cannot use the brokerage balance to lift a weak rental’s coverage, but the weak income does not matter either, because DSCR never tests personal income. Property strength and liquidity carry the file. Reserve requirements vary by program and borrower experience, so ask for the specifics before you commit to a contract.
The same investor could technically use the asset depletion path on an investment property at 65% on a purchase. That route runs the derived income through DTI and does not give credit for the rent. Most investors compare both and pick the structure that fits.
Why Lenders Are Allowed to Do This
Lenders can use assets as the basis for repayment because the federal ability-to-repay rule allows it. The CFPB’s commentary on the rule says a creditor may base repayment ability on income, on assets other than the home securing the loan, or on both.
Two limits matter in practice. Lenders must verify assets with reasonably reliable third-party records, and the ABA’s Business Law Today overview notes that equity in the home itself cannot be counted. That is why your statements get scrutinized even when your income is not. A Federal Register summary of the final rule lists current or reasonably expected income or assets as the first of eight factors a creditor must consider and verify.
Agency conventional programs are narrower on this topic. Their asset-depletion rules are aimed at primary and second homes, which is one reason they rarely help a rental purchase.
Sell, Borrow, or Qualify on Assets?
You have more than one way to turn a portfolio into a property. Each has a different cost.
| Option | What happens to the portfolio | Best fit |
|---|---|---|
| Qualify on assets | Stays invested | Large balances, light income |
| Sell and pay cash | Liquidated, gains may be realized | Wanting no mortgage at all |
| Standard income loan | Stays invested | Strong, documentable income |
| DSCR loan | Funds down payment and reserves | A rental that covers its payment |
Selling can trigger a tax bill and cuts future growth. Qualifying on assets keeps the portfolio working, but you take on a mortgage. Tax treatment varies; consult a qualified professional before relying on any outcome.
If you can qualify on conventional income and the rental pencils, that route may serve you well. DSCR makes more sense when income is hard to document or you have already hit conventional limits. Lendmire’s piece Can a Brokerage Account Qualify a Retiree for a Jumbo Loan? covers the larger-loan version of this decision.
Who This Fits and Who It Doesn’t
This route fits a few situations well:
- A retiree living on a portfolio with little reported income.
- A business seller holding proceeds. Sale-of-business, inheritance and legal-settlement funds are excused from the depletion path’s statement-age rule.
- An early-retired professional with a large taxable account.
- A household with equity-heavy pay and modest documented income.
It does not fit when:
- Your balances are mostly ineligible assets such as options, unvested units, or custodial accounts.
- Your portfolio is below the depletion path’s minimums.
- You need a cash-out on the qualifier path, because that figure is not published.
- You plan to buy a rental and expect the account to count as income. It will not on a DSCR loan.
Key Terms Defined
Asset qualifier path: a qualification method where eligible assets must equal or exceed the entire loan, with no income documented.
Asset depletion path: a qualification method that divides usable assets by 60 months to create monthly qualifying income.
Haircut: the discount a lender applies to a balance because the asset can fluctuate or is harder to reach.
Seasoning: the period an account must show on statements before it counts.
Debt-to-income ratio (DTI): your monthly debts divided by your monthly income.
DSCR: the ratio of a rental’s monthly rent to its full monthly housing obligation.
Reserves: cash left in your accounts after closing, held as a cushion.
Your Prep Checklist
Before you talk to a broker, do these things in order:
1. List every account and its owner. 2. Apply each path’s credit percentage to your brokerage and other balances. 3. Subtract the down payment, closing costs, and any reserves you want to keep. 4. Gather two full months of statements for each account, and confirm your oldest statement is 120 days old for the depletion path. 5. Trace any large deposit or transfer from the last two months. 6. Decide whether you are buying a home to live in or a rental, since that picks the path.
Frequently Asked Questions
Can I qualify with no income at all?
On the asset qualifier path, yes. You document no employment or income, and your eligible assets must equal or exceed the entire loan. On the asset depletion path, your assets become the income, and when they are your only income source you need at least $250,000 liquid. Both are subject to underwriting.
Do I have to sell my stocks?
No. Both paths are qualification methods, so nothing is sold or pledged. Your statements prove the balance, and the portfolio stays invested. Whether you liquidate anything for a down payment is a decision for you and your advisor.
Will my brokerage balance count as income on a rental loan?
No. A DSCR loan tests the property’s rent, not your personal income. The account supports your down payment, closing costs, and reserves. That is why a strong portfolio helps a rental purchase without replacing the rent test.
What if the market drops after I apply?
Statement balances drive the review, and security prices move. The lender’s own calculation governs how a changed balance is handled. Keeping a cushion above the minimum is the practical protection.
Does age matter?
It matters for retirement accounts on the qualifier path. A 401(k) or IRA counts at 90% under age 59½ and at 100% at 59½ or older. On the depletion path, retirement accounts count at 70% at any age.
Next Steps
Asset-based consumer mortgages through Lendmire’s network are available in 16 states: Alabama, California, Colorado, Florida, Georgia, Indiana, Michigan, Montana, New Mexico, North Carolina, Ohio, Pennsylvania, Tennessee, Texas, Virginia, and Washington. Lendmire is a broker, so it arranges these loans through select lenders in its wholesale network. It does not lend or approve them. This is not a commitment to lend.
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. Reach the team at 828-256-2183.
A brokerage account is the biggest asset many investors own and the least used, and the right path can put it to work without selling a share.
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 tax returns, 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.
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References
1. CFPB, Regulation Z § 1026.43 commentary
2. ABA Business Law Today, overview of the ability-to-repay and qualified mortgage rule
3. Federal Register, ability-to-repay 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 to Qualify for an Asset Qualifier Mortgage · How Big Can an Asset Qualifier Mortgage Be? · How to Open a HELOC on Assets Alone With No Paycheck
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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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.