The Quick Read: Usually all of it on the asset qualifier path, where brokerage accounts count at 100% toward covering the whole loan through select programs, subject to underwriting. On the asset depletion path, which turns assets into monthly income, securities count at 80% instead. Which path you use changes the answer more than any other factor.
- Asset qualifier path: brokerage, savings, money market and certificates of deposit each count at 100%, and the eligible total must cover the entire loan.
- Asset depletion path: securities count at 80%, cash and CDs at 100%, and the usable total is divided by 60 months to create qualifying income.
- Retirement accounts: these are discounted differently on each path, so do not lump them in with brokerage money.
- Documentation: the assets are fully documented, with 60 days of seasoning on the qualifier path and older statements on the depletion path.
- Alabama: program figures do not change by state, and Lendmire’s consumer lending is licensed in Alabama.
Which Path Fits You?
A brokerage account does not have one fixed value in a mortgage file. It has a value on each path, and a borrower is qualified on one path at a time.
Say you are a retired professional in Birmingham with a large portfolio and almost no documented income. Your first question is whether your assets can cover the whole loan outright, or whether they need to become income.
On the asset qualifier path, eligible assets must equal or exceed the entire loan amount. No employment or income is documented. On the asset depletion path, eligible assets are discounted, divided by 60 months, and the result is tested as income against the full housing payment and your other debts.
Both paths serve the same kind of borrower: asset-rich and income-light. That includes retirees, people who sold a business, and households living off a portfolio. They are consumer mortgages, so they work for a primary residence or second home. Investment property is available only on the depletion path.
This is a different lane from a rental-income loan. A DSCR loan looks at whether a property’s rent covers its payment, as the complete DSCR loans guide explains. An asset-based mortgage looks at your balance sheet instead.
How Much Counts on the Asset Qualifier Path?
Across the wholesale network Lendmire works with, the qualifier path gives full credit to liquid money, including brokerage accounts. Through select programs, the credit looks like this, subject to underwriting.
| Asset | Share that counts |
|---|---|
| Brokerage accounts | 100% |
| Savings | 100% |
| Money market | 100% |
| Certificates of deposit | 100% |
| 401(k) or IRA, under age 59½ | 90% |
| 401(k) or IRA, at 59½ or older | 100% |
Accounts combine. You can stack brokerage, savings and retirement balances into one pool.
Here is a worked illustration. A borrower seeks an $800,000 loan. She holds $330,000 in brokerage accounts (counted at 100%, so $330,000), $300,000 in a 401(k) while under 59½ (counted at 90%, so $270,000), and $200,000 in savings (counted at 100%, so $200,000). That is $800,000 of usable assets against an $800,000 loan, so the file is reviewed on assets alone. The lender’s own calculation governs, and this example is illustrative.
Notice what the 401(k) did. Her statement balance was $300,000, but only $270,000 counted. The brokerage account lost nothing.
How Much Counts on the Asset Depletion Path?
On the depletion path, a brokerage account is treated as securities and counts at 80%. Cash and certificates of deposit count at 100%. Private stock counts at 75%, retirement accounts at 70% at any age, and real-estate equity at 60%.
The haircut is only the first step. The usable total is then divided by 60 months to produce monthly qualifying income.
Take a household with $1,500,000 in securities and $300,000 in cash. The securities count at 80%, which is $1,200,000. The cash counts at 100%, which is $300,000. That makes $1,500,000 usable, and dividing by 60 months gives $25,000 of monthly qualifying income. That income then has to carry the housing payment and your other debts through the debt-to-income test.
Notice the gap. The household’s statement total was $1,800,000, but the usable figure is $1,500,000. Then the 60-month divisor shrinks it again into income.
A few minimums apply on this path, subject to underwriting. Qualified assets generally 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 must also be at least $250,000. Asset income can also supplement documented income up to a 45% debt-to-income ratio, and in that case the minimum-assets rule is waived.
Why the Same Statement Gives Two Answers
The two paths ask different questions. The qualifier path asks whether your assets are big enough to cover the loan. The depletion path asks whether your assets can produce enough income to carry the payment.
Three levers drive the difference:
- The haircut. It is 100% on brokerage under the qualifier path and 80% on securities under the depletion path.
- The divisor. It applies only to the depletion path, where 60 months turns a pool into income.
- The leverage cap. This decides how large a loan the pool can support.
| Factor | Asset qualifier path | Asset depletion path |
|---|---|---|
| Brokerage credit | 100% | 80% (securities) |
| Income documented | None | Derived from assets |
| Divisor | None | 60 months |
| Purchase leverage | Up to 80% | Up to 80% (primary or second home); 65% (investment) |
| Refinance leverage | Up to 75% | 80% rate-and-term, 60% cash-out (primary or second home) |
| Loan amounts | Up to $4,000,000 | $125,000 to $3,500,000 |
Investment property leverage on the depletion path is 65% on a purchase or rate-and-term refinance and 60% on a cash-out refinance. Cash-out proceeds never count as qualifying assets. Whether cash-out is allowed on the qualifier path is set by the lender and is not published, so ask before assuming.
Credit also differs. 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. These are typical figures from select programs, never offers.
What Is Subtracted Before Anything Counts?
Your balance on the statement is the starting point, not the finish line. Several things reduce it.
First, money you are using elsewhere in the deal. Some programs do not let the same dollar both qualify the loan and satisfy another requirement. If you plan to pay a down payment from the same brokerage account, ask the lender how it treats that money before you count it twice.
Second, borrowed funds. Pledged or borrowed money is not published as eligible on either path. A margin balance is borrowed money, so expect the lender to look hard at it.
Third, ownership. Only the portion of an account that belongs to you counts. A joint account or a business account raises ownership questions, and the lender decides how to handle them. The lender also needs records that show the account is actually yours.
On the reserve side, the qualifier path requires none at or below 75% loan-to-value. Above that, the lender sets them. The depletion path has no published reserve months.
What Does Not Count (and the Route Around It)
Some holdings inside or beside a brokerage account do not carry over at all.
On the depletion path, these are not eligible: non-vested restricted stock units, stock options, deferred compensation, custodial accounts, escrow accounts, foreign funds and cash on hand. If you hold vested shares in a standard brokerage account, those are ordinary securities. Unvested equity is a different matter.
Cryptocurrency, precious metals, collectibles, and business accounts beyond your ownership share are not published as eligible on either path. The documented route is converting them to cash in a regulated account and letting that balance season. The lender then reviews where the money came from.
A concentrated single-stock position is a fair thing to raise early. Lendmire’s team reviews these with the lender rather than assuming a standard percentage. Your underwriter makes the final call.
Statements and Seasoning
Both paths document the assets fully. No income documentation never means no documentation.
On the qualifier path, expect 60 days of seasoning and two months of statements for each qualifying account. On the depletion path, statements must be at least 120 days old at application, plus a recent statement within 45 days. Funds from the sale of a business, an inheritance or a legal settlement are excused from that seasoning on the depletion path.
Lenders must base the decision on assets they can verify. The CFPB’s Ability-to-Repay compliance guide lists income or assets, other than the property itself, among the factors a lender weighs. A Ballard Spahr analysis notes that a lender needs to verify only the income or assets it actually relies on. That is why statements get scrutiny, and why large unexplained deposits are the thing to avoid.
What Happens if the Market Drops?
A falling market can shrink your qualifying pool between application and closing. Brokerage balances move every day, and the lender works from documented values.
The qualifier path is the more exposed one. The eligible total has to cover the entire loan, so a drop in equities can open a gap. If most of your pool is stock, build a cushion above the loan amount.
On the depletion path, you already take an 80% haircut on securities. A decline lowers the pool before it is divided, which cuts the monthly income. In both cases, moving money into cash can protect eligibility, but only if the new cash balance is seasoned and documented.
Retirement Versus Brokerage
Retirement money gets a bigger discount than brokerage money for a reason. Early IRA distributions before age 59½ generally carry an additional 10% tax, per the IRS. Taxable brokerage accounts carry no such access penalty. Tax treatment varies, so consult a qualified professional before relying on any particular result.
Here is the practical result. On the qualifier path, brokerage counts at 100% while a 401(k) under 59½ counts at 90%. On the depletion path, securities count at 80% while retirement counts at 70% at any age. The taxable account is the stronger asset on both paths.
Mistakes That Shrink Your Eligible Balance
- Counting the statement balance. The usable figure is almost always smaller, especially on the depletion path.
- Using the same dollars twice. Money earmarked for the down payment may not also count toward qualifying.
- Moving money at the last minute. A fresh deposit has not seasoned. Move funds well ahead of applying.
- Mixing up the paths. The 100% figure belongs to the qualifier path only. Do not apply it to the depletion math.
- Assuming dividends count. Asset-based programs count the portfolio, not what it pays out.
- Ignoring credit and the property. Assets open the door, but credit, occupancy and the home still get reviewed.
If you also want to know how much cash you will need to put down, Lendmire’s piece How Much Down Payment Does an Asset Qualifier Mortgage Need? covers it.
Frequently Asked Questions
Do I have to sell my investments to use them?
No. The assets are documented through statements, and the lender looks at the balances you hold. Selling is not required just to qualify. Some borrowers do convert holdings that do not count, such as crypto, into a seasoned cash balance.
Can I combine brokerage, savings and retirement accounts?
Yes. On the qualifier path accounts combine, each at its own percentage. On the depletion path the credited amounts are added together and then divided by 60. Each path keeps its own percentages, so never blend the two tables.
Does Alabama change how much of my brokerage account counts?
No. The percentages are the same in every state. Lendmire’s consumer mortgage lending is licensed in Alabama, so an Alabama borrower can be reviewed under the same figures. State-level items such as taxes and insurance affect the budget, not the program parameters.
Can I buy an investment property with this?
Only on the depletion path. The qualifier path covers principal residences and second homes. Depletion leverage on investment property tops out at 65% on a purchase and 60% on a cash-out refinance, subject to underwriting. If the goal is a pure rental purchase and the rent covers the payment, a DSCR loan may fit better.
Will the lender still check my credit?
Yes. The qualifier path has a 600 minimum score, and the depletion path follows the lender’s matrix. Housing history matters too, since one 30-day late in the last twelve months is considered case by case. Approval is never promised.
Where to Go From Here
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 that arranges these loans through select lenders in its network, so programs and figures are subject to underwriting and are not a commitment to lend.
Lendmire’s asset-based mortgage in Alabama page presents the program for Alabama borrowers.
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. CFPB Ability-to-Repay and Qualified Mortgage Compliance Guide
2. Ballard Spahr, Consumer Finance Services Review: CFPB Addresses Non-QMs Under Ability-to-Repay Rule
3. IRS Topic No. 557, Additional Tax on Early Distributions
This article is part of Lendmire’s asset-based mortgage program — full qualification details, guidelines, and scenarios live on the program page.
Related reading: What Counts as an Asset Statement for a Mortgage? · How Much of a Pension Lump Sum Counts Toward Asset Depletion Income? · Can Private Company Stock Count Toward an Asset Depletion Mortgage?
Guides: Asset-Based Mortgage in Alabama
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.