The Quick Read: Usually all of it on the asset qualifier path, where a brokerage account counts at 100% of its balance toward covering the whole loan, and 80% on the asset depletion path, where assets are converted into monthly qualifying income, subject to underwriting and the lender’s own calculation. The two paths use different tables, and a borrower is reviewed on one path at a time.
- Asset qualifier path: brokerage, CDs, money market and savings count at 100%, through select programs.
- Asset depletion path: securities count at 80%, and the balance is divided by 60 months into income.
- Nothing is sold or pledged. The account stays invested, and the lender counts it.
- Statements are required. “No income documentation” never means no documentation.
- Rental buyers: the investment-property route is narrower, and DSCR is usually the better fit.
Which Path Fits You?
The asset qualifier path fits you if your assets can cover the entire loan. The asset depletion path fits you if your assets are large but you want them to act as income. Pick the path first, because every percentage here depends on it.
Most borrowers who ask this question have large balances and small documented income. Think of a retiree living off a portfolio, someone who just sold a business, or a household that received an inheritance or settlement. A salaried borrower with a big brokerage account can use these programs too, but they usually have simpler options.
Here is how the two paths work, based on what we see across the wholesale network.
On the asset qualifier path, your eligible assets, after the credit percentages below, must equal or exceed the entire loan amount. No employment or income is documented. The lender’s review rests on the assets.
On the asset depletion path, your eligible assets, after haircuts, are divided by 60 months. The result is a monthly qualifying income. That income must carry the full housing payment and your other debts through the debt-to-income test.
Washington borrowers use the same program figures as everyone else. These figures do not change by state. Local prices and insurance costs affect the deal, but they do not change how a brokerage account is counted.
The Brokerage Question, Path by Path
A brokerage account counts at 100% on the asset qualifier path and 80% on the asset depletion path. The gap exists because the two paths ask different questions. One asks whether your assets cover the loan. The other asks whether your assets can produce income.
Here is how each account type is treated, subject to underwriting:
| Asset type | Qualifier path | Depletion path |
|---|---|---|
| Brokerage / securities | 100% | 80% |
| Certificates of deposit | 100% | 100% |
| Money market and savings | 100% | Cash accounts at 100% |
| 401(k) and IRA | 90% under 59½; 100% at 59½+ | 70% at any age |
| Private stock | Not listed | 75% |
| Real-estate equity | Not listed | 60% |
On the qualifier path, accounts combine. Your brokerage, savings and retirement balances add together into one pool.
A taxable brokerage account is the most efficiently counted asset on the qualifier path. It gets full credit, with no age cutoff and no income conversion. On the depletion path, it takes a 20% haircut because market values move.
The Same Brokerage Statement, Two Results
Put the same balance through both paths and you get two different answers. Say you hold $330,000 in brokerage accounts. This is an illustration only, and the lender’s own calculation governs.
| Item | Qualifier path | Depletion path |
|---|---|---|
| Credit applied | 100% | 80% |
| Usable amount | $330,000 | $264,000 |
| What it is used for | Counts toward the whole loan | Divided by 60 months into income |
| Income documented? | No | Derived income, run through DTI |
The first number answers a coverage question: does the pool reach the loan amount? The second answers an income question: does the monthly figure carry the payment?
That difference is why the path matters more than the account balance. A balance that is plenty on one path can fall short on the other.
A Mixed-Portfolio Example, Qualifier Path
Most people hold more than one kind of account. Consider a borrower seeking an $800,000 loan on a primary residence. These are modeled assumptions, not a quote.
- Brokerage accounts: $330,000 at 100% counts $330,000.
- A 401(k) held by a borrower under 59½: $300,000 at 90% counts $270,000.
- Savings: $200,000 at 100% counts $200,000.
That totals $800,000 of usable assets, which matches the loan amount. On this path, that is reviewed on assets alone, subject to underwriting. At 59½ or older, the same 401(k) would count at 100%.
Now the depletion version. Suppose a borrower holds $1,500,000 in securities and $300,000 in cash. Securities count at 80%, which is $1,200,000. Cash counts at 100%, which is $300,000. The usable total is $1,500,000. Divided by 60 months, that is $25,000 of monthly qualifying income. That income then carries the housing payment and other debts through the debt-to-income test.
Retirement money takes a bigger cut on this path. Under the depletion table, $1,500,000 in retirement accounts counts at 70%, or $1,050,000.
How Much Gets Used Up? Counting Once
A single brokerage account can serve as your down payment, your reserves and your qualifying assets. The underwriter counts each dollar once. You cannot use the same dollar twice.
On the depletion path, lenders in the network typically take down payment, closing costs and any required reserves out of the pool first. What remains is what gets divided into income. On the qualifier path, the post-percentage total is tested against the loan amount.
Reserves differ by path. On the qualifier path, none are required at or below 75% loan-to-value, and above that the lender sets them. The depletion path has no published reserve months. For more on the cash side of the deal, see Lendmire’s piece How Much Down Payment Does an Asset Qualifier Mortgage Need?.
Do You Have to Sell the Account?
The lender counts your balance as evidence of capacity, and the account stays invested.
That said, spending is a separate matter. Cash you use for a down payment leaves the pool. Funds you pledge or borrow against are not published as eligible on either path.
Tax treatment varies by situation; consult a qualified professional before moving holdings.
What Reduces or Excludes Brokerage Value
Not every dollar in a brokerage window is a countable dollar. These are the common problem areas.
Borrowed or pledged money. Pledged or borrowed funds are not published as eligible on either path. A margin balance or securities pledged to another lender cuts into what you can show as yours.
Unvested equity compensation. On the depletion path, stock options and non-vested restricted stock units are not eligible. This matters for Washington borrowers paid heavily in company stock. Vested shares sitting in a brokerage account are treated as securities. Unvested grants are not.
Concentrated positions. A portfolio that is mostly one stock still counts at the same percentage in the published tables. The lender reviews the statements, though, and a concentrated position is a fair thing for an underwriter to ask about.
Other asset classes. 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 a seasoned cash balance in a regulated account. The lender reviews the source of those funds.
Ineligible account types on the depletion path. Custodial accounts, deferred compensation, escrow accounts, foreign funds, cash on hand and funds from non-regulated financial companies do not count there.
Home equity. Equity in the home you are buying does not count as an asset toward qualifying. Equity in another property counts on the depletion path at 60%.
Ownership. Some programs require that anyone on an account used to qualify also sign the loan documents. Check this before you count a joint account.
Market moves. The balance that counts is the one on the statements the lender reviews. A drop between application and closing can change the math.
Statements and Seasoning
Both paths document the assets, though the qualifier path does not document income. Seasoning is the waiting period an asset must sit in your account before the lender will count it.
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 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.
The practical advice is simple. Do not shuffle money between accounts right before you apply. Large transfers raise questions, and each new account restarts the paper trail. Keep your statements complete, with every page.
Why No Single Percentage Applies Everywhere
No federal rule says what percentage of a brokerage account counts. The lender must verify the assets it relies on using reliable third-party records, which is why statements are the core documents. The CFPB’s ability-to-repay rule describes that verification duty. The eCFR text of the rule lists financial institution records among the acceptable documents.
The rule does not set a haircut or a divisor. Each program sets its own.
What About a Rental Property?
Asset-based programs are mainly built for primary residences and second homes. On the depletion path, investment property is allowed, but at lower leverage. Everything here is subject to underwriting and lender guidelines.
| Program | Occupancy | Purchase / rate-and-term | Cash-out |
|---|---|---|---|
| Depletion path | Primary or second home | Up to 80% | Up to 60% |
| Depletion path | Investment property | Up to 65% | Up to 60% |
| Qualifier path | Primary or second home | Up to 80% on a purchase; 75% on a refinance | Set by lender, not published |
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.
For a pure rental buyer, DSCR is usually the more natural fit. It qualifies primarily on property-level rental income covering the payment, subject to lender guidelines. Your brokerage account then does a different job: it supplies the down payment and the reserves. Select lenders in the network will look at sub-1.00 coverage, but leverage and terms adjust when they do.
Our complete DSCR loans guide explains how that route works. In short, use the asset path when assets must carry the qualification. Use DSCR when the property can.
Key Terms Defined
Haircut: The share of an asset’s balance a lender will not count, shown as a percentage credit. An 80% credit means a 20% haircut.
Seasoning: The time an asset must sit in your account, shown on statements, before it counts.
Divisor: The number of months a usable asset pool is divided by to produce monthly income. On the depletion path it is 60.
Debt-to-income (DTI): Your monthly debts as a share of your monthly income. The depletion path runs derived income through this test.
Usable assets: Your balances after the credit percentages are applied.
Limits, Credit and Loan Size
These are ceilings and floors, never offers, and each is subject to underwriting.
On the qualifier path, loans run up to $4,000,000 through select programs. Expect a 600 minimum credit score. Leverage runs up to 80% on a purchase and 75% on a refinance, for a principal residence or second home.
On the depletion path, loans run from $125,000 to $3,500,000. Credit follows the lender’s matrix. A first-time investor needs a 700 score. The minimum qualified assets are the lesser of $1,000,000 or 1.25 times the loan balance. They are never below $250,000 liquid when asset depletion is your only income source. Asset-derived income can also supplement documented income up to a 45% debt-to-income ratio. When it does, the minimum-assets rule is waived.
On both paths, a 0x30x12 housing history is the standard, and one 30-day late in the last twelve months is considered case by case. A housing event needs 4 years of seasoning on the depletion path. Multiple bankruptcies are not eligible.
Pre-Application Checklist
1. Decide which path fits: assets covering the loan, or assets producing income.
2. Pull full statements for every account you plan to count, with all pages.
3. Check who is on each account, and whether they will be on the loan.
4. Leave money where it is. Avoid transfers, new accounts and new deposits without a paper trail.
5. Separate eligible balances from ineligible ones: unvested stock, crypto, pledged funds.
6. Know your credit score and housing history before you apply.
Frequently Asked Questions
Does a brokerage account count at 100% on every asset-based mortgage?
No. It counts at 100% on the asset qualifier path. On the asset depletion path, securities count at 80%. Lenders outside the network use their own tables, so figures vary. Confirm which path a program uses before you compare numbers.
Do I have to sell stocks to qualify?
No. Nothing is sold or pledged to qualify. The account stays invested and the lender counts the balance on your statements. Money you use as a down payment or for reserves does leave the pool.
Can a Washington borrower count a retirement account too?
Yes, on both paths. On the qualifier path, a 401(k) or IRA counts at 90% under age 59½ and 100% at 59½ or older. On the depletion path, retirement accounts count at 70% at any age. Washington does not change those percentages.
Can I use this to buy a rental?
Only on the depletion path, at 65% on a purchase or rate-and-term refinance and 60% on a cash-out for an investment property. The qualifier path covers principal residences and second homes. Most rental buyers do better with DSCR, where rental income covers the payment and assets serve as down payment and reserves.
Do I need documents if no income is documented?
Yes. The assets are documented on both paths. The qualifier path needs two months of statements per qualifying account and 60 days of seasoning. The depletion path needs statements at least 120 days old plus one within 45 days.
Next Steps
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. You can reach the team at 828-256-2183 or request a quote through the quote form. Lendmire is a mortgage broker and arranges these loans through select lenders in its network. This is not a commitment to lend.
A large brokerage balance is a financing tool, and the first decision is which path turns that balance into the most usable credit.
For current guidelines and terms, see Lendmire’s asset-based mortgage programs page.
About Lendmire
Lendmire is a mortgage brokerage (NMLS# 2371349) licensed for consumer mortgage lending in 16 states, arranging bank statement and other alternative-documentation mortgages — P&L-only, 1099-only and asset-based paths — through a wholesale lending network. Eligibility is determined by the lender on each file. Scotsman Guide named Lendmire a Top Mortgage Workplace in both 2025 and 2026.
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References
1. CFPB, Ability-to-Repay Rule (12 CFR 1026.43)
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 Vested RSUs Counts Toward Asset Depletion Income? · Is an Asset Qualifier Mortgage Harder to Get Than an Asset Depletion Loan? · Asset Qualifier vs Asset Depletion for an Heir
Guides: Asset-Based Mortgage in Washington
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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Disclosure information. Lendmire is a state-licensed mortgage brokerage under NMLS# 2371349. Lendmire is not a depository institution, direct lender, or financial advisor — all loans referenced are placed through wholesale lender partners and are subject to each lender's underwriting standards. This article is provided for general informational purposes and is not a commitment to lend, nor does it constitute financial, legal, or tax advice. Loan programs, terms, rates, and qualification standards change without notice and depend on borrower profile, property type, and the state in which the subject property is located. Equal Housing Opportunity provider. NMLS Consumer Access: nmlsconsumeraccess.org.