The Quick Read: On the asset qualifier path, a brokerage account counts at 100% of its statement balance through select programs in Lendmire’s wholesale network, subject to underwriting. That balance, combined with your other eligible accounts, must equal or exceed the entire loan amount. On the separate asset depletion path, securities count at 80% and the total is divided by 60 months to create qualifying income.
- Qualifier path: brokerage, CDs, money market and savings count at 100%. Retirement accounts count at 90% under age 59½ and 100% after.
- Depletion path: cash and CDs count at 100%, securities at 80%, retirement accounts at 70% at any age.
- Seasoning: 60 days and two months of statements per account on the qualifier path.
- Leverage: up to 80% on a purchase and 75% on a refinance on the qualifier path.
- One path at a time: a borrower is reviewed on one path, never a blend of the two.
Here is the part most people miss. The percentage is not the whole answer. What you count, what you subtract for the purchase, and which path you pick all change the outcome. This article walks through each piece for a California borrower. The program figures do not change by state.
Which Path Fits Your Situation?
The qualifier path fits if your assets can cover the whole loan outright. The depletion path fits if your assets are large but fall short of the loan amount. In that case, the lender turns them into monthly income instead.
Both paths suit a cash-heavy, income-light borrower. Think of a retiree living off a portfolio, someone who just sold a business, or an early-retired professional with a large taxable account. Your balances are big. Your documented income is small. A standard mortgage reads that as weak. An asset-based program reads it as strong.
Here is how the two paths compare.
| Factor | Asset Qualifier | Asset Depletion |
|---|---|---|
| How assets are used | Must cover the full loan | Converted to monthly income |
| Brokerage credit | 100% | 80% (securities) |
| Income documented | None | Derived from assets |
| Debt-to-income test | Not applied | Applied |
| Loan amounts | Up to $4,000,000 | $125,000 to $3,500,000 |
| Purchase leverage | Up to 80% | Up to 80% primary or second home; 65% investment |
These figures describe select programs in Lendmire’s network. Everything is subject to underwriting. They are ceilings, not offers.
One note on the term “asset qualifier.” Across the industry, people use asset depletion, asset utilization and asset qualifier loosely. Some treat them as one product. This article keeps them separate because the math differs. Always ask a lender which method it means.
How Much of a Brokerage Account Counts on the Qualifier Path?
On the qualifier path, a brokerage account counts at 100% of its balance, through select programs and subject to underwriting. Your eligible assets, after those credit percentages, must equal or exceed the entire loan. No employment or income is documented.
This is the strongest treatment available for a taxable brokerage account. Here is the same logic for other account types on this path:
| Asset | Share That Counts |
|---|---|
| Brokerage accounts | 100% |
| Certificates of deposit | 100% |
| Money market | 100% |
| Savings | 100% |
| 401(k) / IRA, under 59½ | 90% |
| 401(k) / IRA, 59½ or older | 100% |
Accounts combine. You can stack a brokerage account, savings and a retirement account to reach the loan amount.
Here is a worked example. Say you want an $800,000 loan. You hold $330,000 in brokerage accounts, which counts at 100%, or $330,000. You also hold $300,000 in a 401(k) and you are under 59½, so it counts at 90%, or $270,000. Add $200,000 in savings at 100%. The total is $800,000 of usable assets. That equals the loan, so the file is reviewed on assets alone. The numbers are illustrative, and the lender’s own calculation governs.
Notice what the retirement discount does. It trims $30,000 off the 401(k) balance. The brokerage account takes no trim at all. For a borrower under 59½, brokerage money is usually the better first asset to lean on. The IRS notes that a 10% additional tax generally applies to IRA distributions taken before age 59½, which is part of why retirement balances are treated more cautiously.
How Much Counts on the Depletion Path?
On the depletion path, securities in a brokerage account count at 80%. The lender adds your eligible assets, divides the total by 60 months, and treats the result as monthly income. That income then runs through the debt-to-income test with your housing payment and other debts.
Here are the haircuts on this path, through select programs:
| Asset | Share That Counts |
|---|---|
| Cash accounts | 100% |
| Certificates of deposit | 100% |
| Securities | 80% |
| Private stock | 75% |
| Retirement accounts | 70% at any age |
| Real-estate equity | 60% |
Now the worked example. You hold $1,500,000 in securities, which counts at 80%, or $1,200,000. You also hold $300,000 in cash at 100%. That is $1,500,000 usable. Divide by 60 months and you get $25,000 of monthly qualifying income. That income then has to carry the housing payment and other debts under the program’s debt-to-income test.
Notice the gap. You started with $1,800,000 in statements. The lender credited $1,500,000. Then it converted that into income. Your statement total is never your coverage figure.
A few other depletion-path rules matter:
- Minimum qualified assets are the lesser of $1,000,000 or 1.25 times the loan balance.
- If assets are your only income source, at least $250,000 must be liquid.
- Asset income can instead supplement documented income, up to a 45% debt-to-income ratio. In that case the minimum-assets rule is waived.
- Cash-out proceeds never count as qualifying assets.
Why Do Lenders Discount Brokerage Balances at All?
Lenders discount because a balance on paper is not the same as money in hand. Securities move with the market. They can fall between application and closing. Retirement accounts carry tax friction. Ownership and access also have to be clean.
Four reasons drive most discounts:
1. Volatility. A stock portfolio can drop. The 80% haircut on the depletion path is a cushion against that.
2. Tax and withdrawal friction. Retirement money costs more to reach, which is why those accounts take deeper discounts.
3. Access. Funds must be unrestricted and in your name.
4. Ownership. Joint accounts, trusts and business accounts raise questions about whose money it is.
Programs differ on these points. Across our wholesale network, some treat taxable brokerage accounts generously, while the strictest overlays trim more. That spread is why comparing programs matters. A lender that credits 100% of your account and a lender that credits less can produce very different loan sizes from the same statements.
The haircut and the divisor also move together. A softer haircut with a longer divisor can yield less income than a harsher haircut with a shorter one. Judge the pair, never the haircut alone.
What Gets Subtracted Before You Qualify?
Your down payment, closing costs and any lender-set reserves come out of the pool first. Qualification is then judged on what remains. Plan around your post-closing balance, not the statement total.
This catches many borrowers off guard. Suppose your brokerage account is also your source of down payment funds. Those dollars cannot count twice. If you put money down from the account, the counted balance shrinks by that amount.
On the qualifier path, no reserves are required at or below 75% loan-to-value. Above that, the lender sets them. On the depletion path, no reserve months are published. Either way, ask for the full picture before you commit to a purchase price.
What Doesn’t Count?
Several asset types are excluded or not published as eligible. Home equity in the property securing the loan does not count. The federal ability-to-repay rule itself says the assets considered must be other than the value of the dwelling securing the loan.
On the depletion path, these are not eligible:
- Custodial accounts
- Deferred compensation
- Escrow accounts
- Foreign funds
- Cash on hand
- Stock options
- Non-vested restricted stock units
- Funds from non-regulated financial companies
Cryptocurrency, precious metals, collectibles, pledged or borrowed funds, and business accounts beyond your ownership share are not published as eligible on either path. If you hold crypto, the documented route is to convert it to cash in a regulated account and let it season. The lender then reviews the source. Treat that as a plan, not a promise.
Margin debt is a related trap. A large brokerage balance financed by margin is not true equity. Lenders net out the margin balance first, so only your real equity reaches the formula.
Documentation and Seasoning
Both paths document your assets. “No income documentation” never means “no documentation.” You will provide statements, and the lender will review them closely.
| Requirement | Qualifier Path | Depletion Path |
|---|---|---|
| Seasoning | 60 days | Statements at least 120 days old |
| Statements | Two months per account | Plus one within 45 days |
| Credit floor | 600 minimum | The lender’s matrix |
Sale-of-business, inheritance and legal-settlement funds are excused from the depletion-path seasoning rule. That helps a borrower who just sold a company or received an estate payout. A first-time investor on the depletion path needs a 700 score.
Large recent deposits draw questions. So do transfers between accounts. If you moved money from a retirement account into a brokerage account last month, expect the lender to trace it. Keep clean records and avoid moving funds around before you apply.
If an account drops between application and closing, the lender recalculates on updated statements. A thin cushion can vanish. Build in room.
What About Joint, Trust and Concentrated Accounts?
Joint and trust accounts can count, but the paperwork has to show the funds are yours. Anyone on an account used to qualify may also need to sign the loan documents. This is a lender-by-lender call. A trust-held account often works when the trust documents support your access.
A brokerage account held inside an IRA or 401(k) is treated as a retirement account. It takes the retirement credit, not the taxable brokerage credit. That distinction matters. The same stocks can count at different percentages depending on the wrapper.
A single large stock holding may get case-by-case review rather than the standard treatment. That varies by lender. If most of your account sits in one company, raise it early.
California Considerations
California purchases often need large loan sizes, which is why the $4,000,000 qualifier ceiling and the $3,500,000 depletion ceiling matter here. A high-priced home can push the loan above what a single account covers. In that case, stacking accounts or moving to the depletion path may fit better. Trust ownership is also common in California estate planning, so have your trust documents ready.
Lendmire holds consumer mortgage licensing in California. The program figures are the same as in every state. Local taxes, insurance and prices are context for your budget, not program parameters.
Asset Qualifier Versus Other Paths
An asset-based loan is for borrowers whose balances are large and whose documented income is not. Other programs solve different problems.
| Program | Who It Fits |
|---|---|
| Asset qualifier | Assets cover the whole loan |
| Asset depletion | Assets become monthly income |
| Bank statement | Borrowers who document income with deposits |
| DSCR | Business-purpose rental financing |
Agency programs from Fannie Mae and Freddie Mac have their own, stricter methods for using assets as income. Those rules belong to those programs and do not govern the figures here. For investment property purchases, the asset depletion path allows up to 65% on a purchase and 60% on a cash-out. If you are buying a rental and want the property’s rent to carry the loan instead, that is a DSCR file. Lendmire’s complete DSCR loans guide explains how that works.
If your income is tied to a business, Lendmire’s piece How Much of Your Business Income Counts Toward a Mortgage? covers that route. If you are weighing leverage on the qualifier path, see Lendmire’s article How Much Down Payment Does an Asset Qualifier Mortgage Need?.
Key Terms Defined
Haircut: the share of an asset’s value a lender subtracts, so only the remaining percentage counts.
Divisor: the number of months used to turn a pool of assets into monthly income. On the depletion path it is 60.
Seasoning: the time funds must sit in your account, or statements must age, before a lender will count them.
Debt-to-income ratio: your monthly debts, including the new housing payment, divided by your monthly income.
Margin balance: money borrowed against a brokerage account, which is subtracted before the account is counted.
Questions to Ask Before You Apply
- Which path does this lender use, qualifier or depletion?
- What percentage does each of my accounts count at?
- Is my retirement account treated by age?
- What reserves apply at my leverage?
- How old must my statements be?
- What happens if my balance drops before closing?
These questions let you compare programs on equal terms. The ability-to-repay rule permits lenders to rely on income, assets, or both, and it requires verification of what they use. The percentages come from the programs, not the rule.
Frequently Asked Questions
Do I have to sell my brokerage account to qualify?
No. The assets are documented, not sold or pledged. On the depletion path, the “depletion” is a math convention that produces qualifying income. Your portfolio stays invested.
Does a brokerage account count at 100%?
On the asset qualifier path, yes, through select programs and subject to underwriting. On the depletion path, securities count at 80%. The two paths are never blended, so name the path before you compare any figure.
Can the same money cover the down payment and count toward qualifying?
No. Down payment, closing costs and any required reserves come out of the pool first. Only the remainder counts toward qualifying. Plan around your post-closing balance.
Does my retirement account count the same as brokerage?
No. On the qualifier path it counts at 90% under 59½ and 100% after. On the depletion path it counts at 70% at any age. Brokerage money usually carries the lighter discount.
What if my account value falls before closing?
The lender recalculates on updated statements. A drop can shrink your counted balance and, on the qualifier path, leave you short of the loan amount. Keep a cushion above the minimum.
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. Lendmire is a mortgage broker, not a lender, and programs are placed through select lenders in its network. Approval is subject to underwriting.
Tax treatment varies; consult a qualified professional.
Your statement total is only the starting line, so run your accounts through the credit percentages and subtract the purchase costs before you decide how much house your portfolio can carry.
Lendmire’s asset-based mortgage in California page presents the program for California 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. IRS Tax Topic 557 – Tax on Early Distributions
2. CFPB – Regulation Z §1026.43, Ability-to-Repay
This article is part of Lendmire’s asset-based mortgage program — full qualification details, guidelines, and scenarios live on the program page.
Related reading: Can Private Company Stock Count Toward an Asset Depletion Mortgage? · What Counts as an Asset Statement for a Mortgage? · How Much of a Pension Lump Sum Counts Toward Asset Depletion Income?
Guides: Asset-Based Mortgage in California
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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Compliance and disclosures. Lendmire (NMLS# 2371349) is a licensed mortgage broker and is not a direct lender, depository institution, financial advisor, or tax professional. Content in this article is general market analysis and educational information — not financial, legal, or tax advice for any specific situation. Lendmire does not guarantee loan approval; every transaction is subject to underwriting by the funding lender. Mortgage pricing and loan program guidelines are subject to change at any time without notice and vary by borrower characteristics, property type, and state regulations. Lendmire complies with Equal Housing Opportunity. Licensure verification: NMLS Consumer Access.