The Quick Read: On the asset qualifier path, a brokerage account counts at 100% of its balance, subject to underwriting. That is the share Lendmire’s network publishes for the qualifier path, and it is not the same on the other asset-based path. On the asset depletion path, securities count at 80%.
- Qualifier path: brokerage, CDs, money market and savings count at 100%.
- Depletion path: securities count at 80%, cash and CDs at 100%.
- Retirement accounts: 90% under age 59½ and 100% after on the qualifier path; 70% at any age on the depletion path.
- Statements: two months per account and 60 days of seasoning on the qualifier path.
- Borrowers are qualified on one path at a time. Figures are ceilings and floors, not offers, and every file is underwritten individually.
Montana is one of the 16 states where Lendmire’s consumer mortgage lending is licensed. The program figures do not change by state. Montana only changes the property, the taxes and the local market around the loan.
Which Path Fits a Montana Borrower With a Big Brokerage Account?
The path decides the percentage, so choose the path first. Across the wholesale network, two structures cover most cash-heavy, income-light borrowers: assets that cover the whole loan, or assets that become monthly income.
The asset qualifier path asks one question. After the credit percentages are applied, do eligible assets equal or exceed the entire loan amount? No employment or income is documented. Leverage goes up to 80% on a purchase and 75% on a refinance, with loan amounts up to $4,000,000, through select programs. Exact terms depend on the lender’s guidelines, property type, leverage, and a full review of the borrower’s file.
The asset depletion path turns assets into income. Usable assets are divided by 60 months, and the result must carry the housing payment and other debts through the debt-to-income test. Leverage on a principal residence or second home goes up to 80% on a purchase or rate-and-term refinance and 60% on a cash-out. Loan amounts run from $125,000 to $3,500,000.
This usually suits retirees, people who sold a business, recipients of an inheritance or settlement, and early-retired professionals. Their balances are large and their documented income is small. A Montana buyer picking up a primary home in Bozeman or a second home near Whitefish fits the profile well.
How Much of a Brokerage Account Counts on Each Path?
On the qualifier path a brokerage account counts at 100%. On the depletion path, securities count at 80%. The gap exists because the depletion path turns a market-exposed balance into long-term income, and the lender discounts for volatility.
| Asset | Qualifier path | Depletion path |
|---|---|---|
| Brokerage / securities | 100% | 80% |
| Cash, savings, money market | 100% | 100% (cash accounts) |
| Certificates of deposit | 100% | 100% |
| Privately held stock | Not eligible | Not eligible |
| 401(k) / IRA | 90% under 59½; 100% at 59½+ | 70% at any age |
| Real-estate equity | Not published | 60% |
Accounts combine. A borrower can pool brokerage, savings and retirement balances to reach the number, subject to underwriting.
Some assets do not count on the depletion path at all: custodial accounts, deferred compensation, escrow accounts, foreign funds, cash on hand, stock options and non-vested restricted stock units. 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 lender reviewing the source.
A Worked Example on Each Path
Both examples are illustrative. The lender’s own calculation governs.
Qualifier path. Take an $800,000 loan. The borrower holds $330,000 in brokerage accounts (100% = $330,000), $300,000 in a 401(k) while under 59½ (90% = $270,000) and $200,000 in savings (100% = $200,000). Usable assets total $800,000. That equals the loan, so the file is reviewed on assets alone, subject to underwriting.
Depletion path. Take $1,500,000 in securities (80% = $1,200,000) plus $300,000 in cash (100% = $300,000). Usable assets are $1,500,000. Divided by 60 months, that is $25,000 of monthly qualifying income. It then has to carry the housing payment and other debts through the debt-to-income test.
Notice what the brokerage account does in each case. On the qualifier path it is a dollar-for-dollar block against the loan. On the depletion path it is a discounted source of income. Never blend the two tables in one calculation.
Is There a Double-Count Trap?
Yes. The same dollars cannot do two jobs. On the depletion path, cash-out proceeds never count as qualifying assets, and the funds you spend on a down payment or closing costs are no longer in the account.
A Montana buyer with $1,000,000 in a brokerage account who wants to put a large share of it into the down payment has not kept $1,000,000 of qualifying assets. What the account holds after the purchase is what matters. Lenders look at the post-transaction picture, so run the test on the balance that remains.
The depletion path also sets floors. Qualified assets must be at least the lesser of $1,000,000 or 1.25 times the loan balance. And when depletion is the only income source, at least $250,000 must be liquid. If asset-derived income only supplements documented income, it can be used up to a 45% debt-to-income ratio, and the minimum-assets rule is waived.
What Are the Brokerage Edge Cases?
Edge cases are where files stall, so check these before applying.
- Ownership. Funds must be the borrower’s own. A business account counts only to the borrower’s ownership share, and nothing beyond it is published as eligible.
- Margin and pledged securities. Borrowed or pledged funds do not count. A margin loan against the account is a reason to talk to a broker before applying.
- Recent deposits. Money moved in last month has not seasoned. The qualifier path wants 60 days. Sale-of-business, inheritance and legal-settlement funds are excused from seasoning on the depletion path, but the lender still reviews the source.
- Concentrated positions and private stock. Publicly traded securities count at 80% on the depletion path. Lenders weigh a single large position differently, so ask early. Privately held company stock is not eligible on either path. A founder’s route is a sale or buyout converted to a seasoned cash balance.
- Joint accounts and trusts. Expect the lender to want to see that the borrower has access and ownership. Treatment varies by program.
- Cryptocurrency inside a brokerage. It is not published as eligible. Converting it to a seasoned cash balance in a regulated account is the documented route.
Do You Have to Sell the Stocks?
No. The lender counts the assets. It does not require you to liquidate them. Counting is only a calculation, so nothing is sold and no taxable event is triggered by the count itself. Tax treatment varies; consult a qualified professional.
Liquidation matters in a different place. If you plan to fund the down payment from the brokerage account, those funds do leave the account, and the lender will want to see where the money came from.
What Documents Prove the Balance?
Assets are documented even when income is not. “No income documentation” never means no documentation. The borrower provides no traditional personal-income documentation, pay stubs or employment verification, but the statements are reviewed in full.
- Qualifier path: two months of statements for each qualifying account and 60 days of seasoning. The credit floor is 600, subject to underwriting.
- Depletion path: statements at least 120 days old at application, plus the most recent statement within 45 days. Credit follows the lender’s score and loan-amount matrix. A first-time investor on this path needs 700. Housing history is 0x30x12, and one 30-day late in the last twelve months is considered case by case. A housing event needs 4 years of seasoning.
Federal ability-to-repay rules explain why accounts are listed individually. A lender verifies only the income or assets it relies on, so the file names specific accounts. The CFPB’s compliance guide also treats assets other than the value of the secured property as a repayment factor. Because this is a consumer mortgage, TRID disclosures apply.
What If the Number Comes Up Short?
A shortfall is common and usually fixable. Work through the levers in order.
1. Check the path. A borrower who falls short on the depletion path, where securities count at 80%, may do better on the qualifier path, where brokerage counts at 100%. The reverse can hold for a borrower who wants income-based qualification.
2. Add eligible accounts. Combining brokerage, savings and retirement balances can close the gap.
3. Lower the loan. A larger down payment reduces what the assets must cover, though it also draws down the account.
4. Lower leverage. On the qualifier path, no reserves are required at or below 75% loan-to-value. Above that, the lender sets them.
5. Season the money. Funds that arrived recently may qualify after the seasoning period.
Where Does an Investment Property Fit?
The qualifier path covers principal residences and second homes. Investment property is available only on the depletion path, at up to 65% on a purchase or rate-and-term refinance and 60% on a cash-out.
For a pure rental purchase, a business-purpose DSCR loan often fits better. It qualifies primarily on property-level rental income covering the payment, subject to lender guidelines. Asset-based qualification looks at the borrower’s liquidity. DSCR looks at the property.
Agency rules differ. Mortgage-insurance training material shows only 70% of market-based assets counting toward reserves under agency policy. That is an agency rule, not this program’s. Comparing against it shows why the percentage depends on the program and not on the asset itself.
Key Terms Defined
Haircut: the discount a lender applies to an asset’s balance before counting it.
Seasoning: the length of time money must sit in an account before it counts.
Divisor: the number of months, 60 on the depletion path, used to turn assets into monthly income.
Qualifying income: the monthly figure derived from assets on the depletion path.
Debt-to-income test: the comparison of monthly debts, including housing, to monthly income.
Eligible assets: balances that meet the program’s ownership, access and documentation rules.
Frequently Asked Questions
Do ETFs and mutual funds count the same as individual stocks?
Both are treated as securities on the depletion path, so they count at 80%. On the qualifier path they sit in a brokerage account at 100%. Treatment of unusual holdings is set by the lender, so confirm before relying on them.
Does margin debt reduce the number?
Borrowed or pledged funds are not published as eligible on either path. Margin borrowing against the account can therefore reduce what counts, and a lender will review it. Raise it with a broker before you apply.
Can I use a joint account?
Often, if the borrower can show ownership and access. Treatment varies by program, and a lender may require that others on the account be on the loan. Underwriting decides.
Can the same money cover the down payment and count as qualifying assets?
No. Money spent on the down payment or closing costs leaves the account, so it cannot also count. Run the test on the balance that remains after the purchase.
What if the market drops before the loan is final?
The lender works from the statements in the file, and a large drop in value can change the count. On the depletion path, the most recent statement within 45 days is the one that matters. Talk to your broker about timing if your account is volatile.
Next Step
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 programs based on your statements, the property, credit profile, leverage, and your goals. Program terms change, and every file is underwritten individually. This is not a commitment to lend.
Lendmire’s asset-based mortgage in Montana page presents the program for Montana 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
1. Federal Register ATR final rule
2. CFPB ATR/QM compliance guide
3. Enact MI asset training deck
This article is part of Lendmire’s asset-based mortgage program — full qualification details, guidelines, and scenarios live on the program page.
Related reading: Does a Montana Asset-Based Mortgage Require Tax Returns? · Can a Montana Landlord in Retirement Get a Mortgage on Rents and Savings? · How Much of a Brokerage Account Counts Toward a Texas Asset Qualifier Mortgage?
Guides: Asset-Based Mortgage in Montana
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.