The Quick Read: Usually not, because a lender wants complete, consecutive account statements that show the balance, the ownership and the history of your money, and a one-date letter from your brokerage shows none of that, although a lender may still add a letter or a direct verification as a condition on a specific file. The statements are the baseline. The letter is a lender-specific add-on. Your lender’s condition list has the final word.
- Plan on complete statements for every account you want counted, with every page, even the blank ones.
- A letter only proves a balance on one date. It does not prove the funds have been sitting there.
- Asset-qualifier files and asset-depletion files both lean on statements, but the time windows differ.
- Asking for a letter before anyone requests it can add work with no payoff.
- Eligibility and documentation are separate questions. A statement proves what you hold. The program decides how much of it counts.
What Counts as an Asset-Based Mortgage Here?
An asset-based mortgage is reviewed around what you own instead of what you earn. Lendmire arranges these loans as a broker, through select lenders in its wholesale network. The program is built for cash-heavy, income-light households: retirees, people who sold a business, heirs, early retirees, and families living off a portfolio.
There are two paths, and a borrower is reviewed on one path at a time.
The asset qualifier path. Your eligible assets must equal or exceed the entire loan amount. No employment or income is documented. Subject to underwriting, loans run up to $4,000,000, with leverage up to 80% on a purchase and 75% on a refinance of a principal residence or second home. The exact numbers vary by lender and program and follow a full review of property, leverage, and credit.
The asset depletion path. Your eligible assets are discounted, added up, and divided by 60 months. The result is a monthly qualifying income that runs through the debt-to-income test. Loan amounts run from $125,000 to $3,500,000 through select programs. On a principal residence or second home, leverage reaches 80% on a purchase or rate-and-term refinance and 60% on a cash-out. On an investment property, it reaches 65% on a purchase or rate-and-term refinance and 60% on a cash-out.
Either way, the assets are documented. Skipping income paperwork never means skipping asset paperwork.
What this is not
Several search results blur these products, so here is the line. An asset-based mortgage is not a margin loan against your portfolio. It is not a securities-backed line of credit. It is not a business loan secured by company assets. You are not borrowing against your brokerage account. The lender is simply counting the account as proof you can carry the loan.
Key Terms Defined
Statement of value letter. A letter from a financial institution that confirms an account’s balance as of one date. Some call it a proof-of-funds letter.
Account statement. The periodic document the institution issues showing balances, holdings and activity over a period. It carries your name, the institution and the account number.
Verification of deposit. A form the lender sends straight to the institution. The institution confirms ownership, balance and account history.
Seasoning. The length of time funds have been in your account. Consecutive statements show it. A one-date letter does not.
Usable assets. The share of each balance that the program counts after its credit percentages or haircuts.
Large deposit. A recent, unusual deposit that the underwriter wants explained and sourced.
Which Document Is Which?
People mix up four documents. They do different jobs.
| Document | Who issues it | What it proves | When it shows up |
|---|---|---|---|
| Account statement | Your brokerage or bank | Balance, ownership, history | Nearly every file |
| Statement of value letter | Your brokerage | Balance on one date | Lender-specific add-on |
| Verification of deposit | Lender sends it to the institution | Ownership, balance, history | Gaps or doubts in statements |
| Preapproval letter | A lender | A lender’s initial review | Shopping for a home |
The preapproval letter is the odd one out. It comes from a lender, not your brokerage, and it says nothing about your assets. If someone asks for a letter, find out which document they mean.
Freddie Mac’s guide lists the data points a direct account verification must carry. That is an agency rulebook, and asset-based loans through select lenders follow program guidelines instead. The contrast is still useful. A verification form exists for institutions to confirm facts directly, and lenders reach for it when statements fall short. LegalClarity’s explainer on the verification of deposit notes that most lenders now rely on statements and use the form when statements are incomplete.
What Each Path Wants to See
The qualifier path is the simpler paper trail. Subject to underwriting, it asks for 60 days of seasoning and two months of statements for each qualifying account. Credit counts at these shares of the balance:
- Brokerage accounts, certificates of deposit, money market and savings count at 100%.
- A 401(k) or IRA counts at 90% under age 59½ and 100% at 59½ or older.
- Accounts combine.
Credit starts at a 600 minimum score on this path. No reserves are required at or below 75% loan-to-value. Above that, the lender sets them.
Here is an illustration. Picture an $800,000 loan. The borrower holds $330,000 in brokerage accounts (100%, so $330,000), $300,000 in a 401(k) under 59½ (90%, so $270,000) and $200,000 in savings (100%, so $200,000). That counts $800,000 of usable assets, which can qualify on assets alone. The lender’s own calculation governs.
The depletion path asks for more history. The 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. Haircuts look like this:
- Cash accounts and certificates of deposit count at 100%.
- Securities count at 80%.
- Privately held stock: not eligible on either path.
- Retirement accounts count at 70% at any age.
- Real-estate equity counts at 60%.
Another illustration: $1,500,000 in securities (80%, so $1,200,000) plus $300,000 in cash (100%) is $1,500,000 usable. 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.
Never mix the two tables. A brokerage balance counts at 100% on one path and 80% on the other. On the depletion path, you also need qualified assets of at least the lesser of $1,000,000 or 1.25 times the loan balance, and never below $250,000 liquid when depletion is your only income source. The credit score follows the lender’s matrix, and a first-time investor needs 700.
Notice what a letter would add to either path: nothing about seasoning, and nothing about two months of history. That is why statements carry the weight.
Why Statements Win
A lender must rely on records it can trust. The CFPB’s small-entity compliance guide on ability-to-repay sets a third-party record standard: where a lender relies on assets, it verifies them with reasonably reliable records from outside the borrower. Account statements issued by the institution fit that standard in plain terms. They come from the brokerage, not from you, and they show activity over time.
That explains the practical pattern. Across the wholesale network, the default is complete statements from every account you want counted. A letter, when it appears, usually fills a specific gap, such as a statement that is stale or an account the lender cannot read clearly. Most programs the brokerage places files with treat the letter as optional. A few lenders may ask for one as a condition, and the strictest overlays tend to want more history, not more letters.
When a Lender Might Ask for a Letter
The lender decides. Here is how to read the situation before anyone asks.
1. Your statements are complete and current. Expect no letter. Upload them with every page.
2. A statement is stale or a page is missing. Expect a request for a fresh statement first. A letter or direct verification comes later, if at all.
3. A large deposit or transfer is unexplained. Expect a request for sourcing documents. A letter from your brokerage will not replace the statement showing the withdrawal.
4. The account is in a trust, a joint name or a business name. Expect ownership paperwork. A letter confirming titling can help if the lender asks.
5. Values move before closing. Expect an updated statement. Market swings change what a retirement or securities balance counts for.
If none of those fits, hold off. Asking your brokerage for a letter nobody requested is busywork.
The Statement Checklist
Put these together before you apply:
- Every page of every statement, including pages that look blank.
- Your name, the institution’s name and the account number visible on each statement.
- The required number of consecutive statements for your path.
- Ownership proof for joint, trust or custodial accounts.
- A written explanation and a paper trail for any large or recent deposit.
- Retirement statements showing the balance and your age-related access.
Download the PDFs from your brokerage portal instead of taking screenshots. A partial screen capture is a common cause of conditions.
How to Ask Your Brokerage If a Letter Is Required
Wait for the lender’s written condition. Then follow these steps:
1. Read the condition exactly. Note the account, the date and the details it wants.
2. Contact your brokerage’s client services or the advisor who handles your account, and ask for a statement of value letter or a proof-of-funds letter.
3. Confirm that the letter names the account holder exactly as the statement does, and that it lists the institution, the balance and the as-of date.
4. Check every detail against your statement before you upload it. If something does not match, ask the brokerage to correct it. Never edit the document yourself.
If your brokerage only offers statements, tell the lender. Most lenders accept that, because the statements usually satisfy the same purpose. A direct verification from the lender to the institution is another fallback, at the lender’s discretion.
Tricky Account Setups
| Setup | What to expect | What to prepare |
|---|---|---|
| Joint account | Ownership questions | Statements showing both names |
| Trust account | Titling review | Trust documents and statements |
| Several custodians | Separate statements | Two months from each, same dates |
| Retirement account | Balance and age review | Full statement, no withdrawal needed |
| Digital-only statements | Full PDF needed | Download complete files |
| Recent transfer | Sourcing request | Statements showing both ends |
Retirement accounts do not need to be drained. A recent statement showing the balance and terms is usually enough for these programs. Moving money between accounts creates sourcing work, so keep funds where they are and seasoned. If you must sell securities to build cash, remember the sale itself creates a new paper trail. Tax treatment varies; consult a qualified professional.
Some assets do not count at all. On the depletion path, custodial accounts, deferred compensation, escrow accounts, foreign funds, cash on hand, privately held stock, stock options, non-vested restricted stock units and funds from non-regulated financial companies are not eligible. Cryptocurrency, precious metals, collectibles and pledged or borrowed funds are not published as eligible on either path. The documented route is converting them to a seasoned cash balance in a regulated account, with the source reviewed by the lender. Whether that route works on your file is the lender’s call. Lendmire’s piece Do You Have to Liquidate Assets to Reserve an Asset Qualifier Mortgage? goes deeper on that choice.
Mistakes That Create Conditions
- Sending part of a statement. Missing pages stall files.
- Moving money right before applying. Fresh deposits invite sourcing questions.
- Counting brokerage balances at full face value. Securities count at 80% on the depletion path, and retirement accounts count at 70%.
- Confusing a preapproval letter with proof of assets. They are different documents.
- Treating a letter as proof of seasoning. Only consecutive statements show that.
- Waiting too long to gather statements. Stale statements force a second round of uploads.
What About a DSCR Loan on an Investment Property?
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. The loan is reviewed primarily on property-level rental income covering the payment, subject to lender guidelines. Your assets still get checked on every file. They just serve a different job: down payment, closing costs and reserves.
The same document rule applies. Lenders generally want the most recent two months of statements for the accounts holding your reserves, and a letter is an optional add-on at the lender’s discretion. Since the rent carries the qualification, scrutiny moves to your liquidity. A rental that covers its own payment still needs a cash cushion behind it, and the lender wants proof from the institution that the cushion is real. Brokerage balances may be discounted, so plan around what counts, not what the screen shows. The complete DSCR loans guide covers the full qualification picture.
Frequently Asked Questions
Can my brokerage’s letter replace statements?
No, not on its own. A letter confirms a balance on one date. A lender also needs ownership, history and seasoning, and consecutive statements show those. Some lenders may accept a letter alongside statements, never in place of them.
Do I need a letter if my brokerage only gives online statements?
Usually not. Download the complete statements as PDFs, with every page and your name and account number visible. If the lender cannot read them, it will say so in a condition, and a letter or direct verification becomes the fallback.
What if my brokerage refuses to issue a letter?
Tell the lender, and offer complete statements instead. Most lenders can proceed on statements, and some can send a verification form directly to the institution. The lender decides which route it accepts.
Does the lender count my full brokerage balance?
Not necessarily. On the asset qualifier path, brokerage accounts count at 100%. On the asset depletion path, securities count at 80%. Retirement accounts count at 90% or 100% depending on age on the qualifier path, and 70% on the depletion path. Subject to underwriting.
Is a securities-backed line of credit the same thing?
No. A securities-backed line borrows against your portfolio. An asset-based mortgage counts your assets as qualifying strength and does not pledge the account. Keep the two products separate when you talk to a lender.
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. Consumer mortgage lending is licensed in 16 states, and the programs are subject to underwriting and are not a commitment to lend. Your statements, not a letter, are where the whole file starts.
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
2. LegalClarity: What Is a Verification of Deposit for a Mortgage
3. CFPB ATR/QM Small Entity Compliance Guide
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 Asset Qualifier Income Is Calculated for a Jumbo Mortgage · How Lenders Count Assets Toward an Asset Depletion Mortgage · How to Qualify for an Asset Qualifier 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
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.