The Quick Read: Usually all of it. On the asset qualifier path, brokerage balances count at 100%, and the combined eligible assets must equal or exceed the entire loan amount, subject to underwriting and select lender programs. The asset depletion path is different: securities count at 80% and are then converted into monthly income.
- Qualifier path: brokerage, CDs, money market and savings all count at 100%.
- Depletion path: securities count at 80%, and cash and CDs at 100%.
- Nothing is sold: the assets are documented, not liquidated.
- Texas changes nothing: program figures are the same in every state where Lendmire arranges consumer loans, Texas included.
- Rental purchases: these usually run on property income instead, not on assets.
Two different tests hide behind the phrase “asset-based mortgage.” Mixing them up is how borrowers end up with the wrong expectation about their statement balance. This piece separates them, walks through the math, and flags where a big brokerage account can still fall short.
Which Path Fits a Texas Borrower With a Large Portfolio?
The asset qualifier path fits a borrower whose eligible assets cover the whole loan. The asset depletion path fits a borrower whose assets are large but fall short of the loan, so the lender turns them into income. A borrower is qualified on one path at a time, never a blend of the two.
Picture a retiree in the Texas Hill Country, a founder who just sold a business, or an early-retired engineer living off a portfolio. Balances run large. Documented income does not. These are the readers both paths were built for.
Lendmire is a broker. It arranges these consumer mortgages through select lenders in its wholesale network and does not lend directly. Its consumer mortgage lending is licensed in 16 states, Texas among them. Every figure below is a ceiling or floor, not an offer, and every file is underwritten individually.
How Much of a Brokerage Account Counts on the Asset Qualifier Path?
On the asset qualifier path, brokerage accounts count at 100% of the statement balance. Certificates of deposit, money market and savings also count at 100%. A 401(k) or IRA counts at 90% under age 59½ and at 100% at 59½ or older. Accounts combine, and the total must equal or exceed the entire loan.
No employment or income is documented on this path. The assets are documented, though. That difference matters. Skipping income documentation never means skipping documentation: the file still needs statements, and traditional personal-income documentation, pay stubs and employment verification are the items left out.
Here is how the math runs. Say the loan is $800,000. The borrower holds:
- $330,000 in brokerage accounts, counted at 100%, which is $330,000.
- $300,000 in a 401(k) under age 59½, counted at 90%, which is $270,000.
- $200,000 in savings, counted at 100%, which is $200,000.
Usable assets total $800,000. That equals the loan, so the file is reviewed on assets alone, subject to underwriting. The lender’s own calculation governs, and this is illustrative only.
Leverage on this path runs up to 80% on a purchase and up to 75% on a refinance, for a principal residence or second home. Loan amounts run up to $4,000,000. Credit starts at a 600 minimum score. Reserves are not required at or below 75% loan-to-value, and above that the lender sets them. All of this is through select programs.
How Much of a Brokerage Account Counts on the Asset Depletion Path?
On the asset depletion path, securities in a brokerage account count at 80%. Cash and CDs count at 100%. The usable total is divided by 60 months to produce monthly qualifying income. That income then has to carry the full housing payment and other debts through the debt-to-income test.
Take an example: $1,500,000 in securities counts at 80%, which is $1,200,000. Add $300,000 in cash at 100%. Usable assets come to $1,500,000. Divide by 60 months and you get $25,000 of monthly qualifying income. The lender’s calculation governs, and the example is only a sketch.
Here is the catch. The haircut applies to the asset, and the divisor then spreads what is left across 60 months. A statement balance and a qualifying income are very different numbers. A dollar of brokerage value is worth less than a dollar of income capacity.
Other haircuts on this path: private stock at 75%, retirement accounts at 70% at any age, and real-estate equity at 60%. Minimums apply too. Qualified assets must be at least the lesser of $1,000,000 or 1.25 times the loan balance, and never below $250,000 liquid when depletion is the only income source. Asset-derived income can also supplement documented income up to a 45% debt-to-income ratio, and in that case the minimum-assets rule is waived.
Side by Side: Brokerage, Cash and Retirement Accounts
The same statement balance counts differently depending on the account type and the path. The table below puts the two paths in adjacent columns so the contrast is clear. Read each column on its own and never blend them.
| Asset | Qualifier path | Depletion path |
|---|---|---|
| Brokerage / securities | 100% | 80% |
| Cash, savings, money market | 100% | 100% (cash accounts) |
| Certificates of deposit | 100% | 100% |
| Retirement account | 90% under 59½; 100% at 59½+ | 70% at any age |
| Real-estate equity | Not listed | 60% |
Both columns are subject to underwriting and the lender’s guidelines.
What Inside a Brokerage Account Counts?
Anything that has to be converted, borrowed against or proven is where files get slow or fail. Anything outside the published lists should be treated as not counting until a lender says otherwise.
On the depletion path, several items are not eligible at all: 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. Unvested employer stock is the one that surprises people most. It looks large on a statement and counts for nothing until it vests.
Cryptocurrency, precious metals, collectibles, pledged or borrowed funds, and business accounts beyond your ownership share are not published as eligible on either path. Plainly: they do not count at a percentage. The documented route is to convert them to a seasoned cash balance in a regulated account, with the source reviewed by the lender.
Margin deserves a mention. Borrowed funds do not count, so a brokerage account carrying a margin balance or pledged against a credit line has a smaller countable pool than its headline value. Ask the lender how it treats any such account before you build a plan around it.
Seasoning, Statements and Market Moves
Both paths want your assets to sit in place and to be documented in statements. The qualifier path asks for 60 days of seasoning and two months of statements for each qualifying account. The depletion path asks for statements 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 depletion seasoning.
Large recent deposits draw questions. If you just moved money in from a sale or a rollover, expect the lender to want the source. Keep the paper trail.
Market drift is a real risk on either path. A securities balance is measured on a statement. If it drops before the file is finished, the pool shrinks with it. On the qualifier path, which needs assets to cover the full loan, a thin cushion can disappear. On the depletion path, an 80% haircut already builds some cushion into the count, though a large enough drop can still erode it. That is reasoning, not a rule, so ask your loan officer how recent statements will be used.
Do You Have to Sell Anything?
No. The portfolio stays invested. Assets are documented and verified, not liquidated or pledged. That addresses the worry many borrowers have about triggering capital gains. Down payment and closing costs still have to come from somewhere, so plan around the balance left after the transaction, not today’s balance. Tax treatment varies; consult a qualified tax professional.
Where This Path Stops Working: Rental Property
This is the flip point. An asset-based path is built for principal residences and second homes. Investment property is allowed only on the asset depletion path, and at lower leverage: 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.
For an investor buying a rental, the better question is often whether to qualify on the property instead. DSCR loans qualify primarily on property-level rental income covering the payment, subject to lender guidelines, and the brokerage account then matters mostly as reserves. 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 few things push the decision one way or the other:
- If you want a home to live in and your assets cover the loan outright, the qualifier path avoids income documentation altogether.
- If assets are large but short of the loan, depletion turns them into income, at the cost of the haircut and the debt-to-income test.
- If you are buying a rental with a rent roll that covers the payment, DSCR is often cleaner than either asset path.
Key Terms Defined
Haircut: the share of an asset’s value the lender does not credit, to allow for market swings or withdrawal costs.
Divisor: the number of months, 60 on the depletion path, used to turn usable assets into monthly income.
Seasoning: the length of time funds must sit in your accounts before they are counted.
Usable assets: the balance left after haircuts, which the lender tests against the loan or converts to income.
Debt-to-income (DTI): your monthly debts, including the new housing payment, divided by monthly qualifying income.
What the Lender Must Still Check
A mortgage to a consumer carries a regulatory frame, and it is brief. Under Regulation Z, the creditor must consider your current or reasonably expected income or assets, other than the value of the dwelling that secures the loan, and verify what it relies on with third-party records. CFPB Regulation Z §1026.43 sets that standard, and brokerage statements are exactly that kind of record. The 2013 final rule lists eight underwriting factors, including income or assets and, separately, debt-to-income or residual income. That is why the depletion path runs through a DTI test, while the qualifier path rests on the assets themselves.
A Short Pre-Application Checklist
1. Pull two months of statements for every account you want counted.
2. Separate vested from unvested holdings, and note any margin balance.
3. Trace any large deposit from the last few months to its source.
4. Decide which path fits: assets covering the loan, or assets converting to income.
5. Subtract down payment and closing costs first, then test what remains.
6. Ask each lender for its haircut and its credit matrix before you commit.
Texas context stays simple: large jumbo-size loans are common in the major metros, and the program supports loans up to $4,000,000 on the qualifier path and $125,000 to $3,500,000 on the depletion path, subject to underwriting. State taxes, insurance and local prices affect your budget but never the program parameters.
Frequently Asked Questions
Do ETFs and mutual funds count like stocks?
Held in a regulated brokerage account, they are generally treated as brokerage assets. On the qualifier path that means 100%, and on the depletion path securities count at 80%. The lender confirms treatment from your statements, subject to underwriting.
Does unvested stock or an option grant count?
No. Stock options and non-vested restricted stock units are not eligible on the depletion path. Once shares vest and sit in your brokerage account, they can be documented like other securities.
Can I use a brokerage account and a 401(k) together?
Yes, on the qualifier path accounts combine. A 401(k) counts at 90% under 59½ and at 100% at 59½ or older, added to brokerage balances at 100%. The total must equal or exceed the entire loan amount.
What if the market drops before I close?
Balances are measured on your statements, so a drop can shrink the usable pool. A thin cushion is the risk. Ask your loan officer which statement date will be used, and keep extra liquid funds if your margin is tight.
Is a credit check still part of the process?
Yes. The qualifier path has a 600 minimum score, and the depletion path follows the lender’s score and loan-amount matrix. A first-time investor on the depletion path needs 700. Nothing here is a promise of approval.
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. Whatever the path, the question that decides the file in Texas is the same as anywhere: how much of that statement survives the haircut, the transaction costs and the markets before closing.
Lendmire’s asset-based mortgage in Texas page presents the program for Texas borrowers.
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.
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References
2. Federal Register, 2013 ATR 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 Much of Mutual Funds Counts Toward Asset Depletion Income? · How to Document a Tennessee Asset Qualifier Mortgage Without an Employer · How a 401(k) Counts Toward an Alabama Asset Qualifier Mortgage Under Age 59½
Guides: Asset-Based Mortgage in Texas
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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Disclosures. The information presented in this article is general market commentary, not financial, legal, or tax advice. Lendmire is a mortgage brokerage (NMLS# 2371349) — not a direct lender or depository institution — and loan placement is subject to lender underwriting. Nothing in this content represents a commitment to lend. Loan terms, pricing, and program availability vary based on borrower qualifications, property characteristics, and state of subject property, and are subject to change at any time. Lendmire complies with Equal Housing Opportunity requirements. Consumer access: nmlsconsumeraccess.org.