The Quick Read: On the asset qualifier path, a brokerage account usually counts at 100% of its verified balance, subject to underwriting and select lender programs. On the asset depletion path, securities in that same account count at 80% before the balance is turned into income. A borrower is reviewed on one path at a time, so the right number depends on which path the file uses.
- Qualifier path: brokerage at 100%, and the total of eligible assets must cover the entire loan amount.
- Depletion path: securities at 80%, with usable assets divided by 60 months to create qualifying income.
- Margin debt, the down payment, and closing costs shrink what is usable.
- Statements are required on both paths, so “no income documentation” never means “no documentation.”
- Virginia borrowers see the same program figures as everyone else; the state changes the property, not the percentages.
Lendmire is a mortgage broker. It places these files with select lenders in its wholesale network, and every figure here is subject to underwriting and is never a commitment to lend. The mechanics below come from how the brokerage sees these files day to day.
Which Path Fits a Brokerage-Heavy Borrower?
The answer depends on whether your assets can cover the whole loan or whether they need to become income.
The asset qualifier path is the simpler one. Eligible assets, after the credit percentages, must equal or exceed the entire loan amount. No employment or income is documented. The lender’s ability-to-repay review rests on the assets themselves.
The asset depletion path works differently. It converts usable assets into a monthly qualifying income, and that income carries the housing payment and other debts through a debt-to-income test. This path fits a borrower whose assets are large but not large enough to cover the loan outright.
Picture a retired executive in Northern Virginia with a large taxable portfolio and almost no reportable income. If the portfolio is bigger than the loan, the qualifier path is cleaner. If the portfolio is smaller than the loan but still substantial, the depletion path may still work. Which one pencils depends on the loan size, the property, and the lender’s review.
What Percentage Counts on Each Path?
Here is the side-by-side, using the program figures from select lenders in Lendmire’s network.
| Asset | Qualifier path | Depletion path |
|---|---|---|
| Brokerage accounts | 100% | 80% (securities) |
| Cash, savings, money market | 100% | 100% (cash accounts) |
| Certificates of deposit | 100% | 100% |
| Retirement accounts | 90% under 59½, 100% at 59½+ | 70% at any age |
| Privately held stock | Not eligible | Not eligible |
| Real-estate equity | Not published | 60% |
Never blend the two columns. A brokerage account at 100% on one path becomes 80% on the other, and a borrower sits on only one path at a time.
The gap exists because the two paths ask different questions. The qualifier path asks whether the assets cover the loan. The depletion path asks whether the assets can carry a payment for years, so it discounts anything whose value can fall.
Why Is Brokerage Discounted at All?
Market-based assets can lose value, and cash cannot. That is the whole logic.
A lender sizing income from a portfolio has to assume the portfolio can drop. Cash and certificates of deposit hold steady, so they count in full. Securities swing, so the depletion path counts 80%. On the qualifier path, the lender is not stretching the balance over years, so the brokerage balance counts in full.
One point surprises people. No federal rule sets these percentages. The CFPB’s ability-to-repay rule asks only for a reasonable, good-faith, verified determination that the borrower can repay. The rule’s text allows a lender to consider assets other than the dwelling securing the loan, and it requires third-party records to verify them. The percentages are credit policy, set by each program. That is also why two lenders can credit the same statement differently.
How Does the Math Work, Step by Step?
On both paths, the usable pool is the verified balance after the percentages, less anything already spoken for. These examples are illustrative, and the lender’s own calculation governs.
Qualifier path example. 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 amount, so the file is reviewed on assets alone, subject to underwriting.
Depletion path example. 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. That income then carries the housing payment and other debts through the debt-to-income test.
The order matters, and borrowers often miss it. The down payment, closing costs, and any required reserves come out of the same pool. The same dollar cannot qualify the loan and also satisfy a reserve requirement. Brokerage money used for the purchase is gone from the count.
What Edge Cases Change the Number?
Several account features reduce what counts, and a few assets do not count at all.
Margin loans. If the account carries a margin balance, the underwriter nets the account down to equity, meaning market value minus the margin debit. Only then do the percentages apply. A $500,000 account with a large margin loan may count for far less than its headline.
Joint and shared accounts. Other people on an account can affect how much is eligible. Lenders look at who owns the funds and whether the borrower has access to them. Sort out ownership before you apply, not after.
Restricted or unusual holdings. On the depletion path, stock options and non-vested restricted stock units are not eligible. Neither are custodial accounts, deferred compensation, escrow accounts, or foreign funds. Privately held company stock is not eligible on either path. A founder’s route is documented liquid assets, such as seasoned proceeds from a sale or buyout. Vested shares in a regulated brokerage account are the cleaner path.
Crypto, metals, and collectibles. These are not published as eligible on either path. The documented route is to convert them to a seasoned cash balance in a regulated account, with the lender reviewing the source of funds.
Pledged or borrowed funds. These do not count. A pledged-asset loan is a different product from an asset qualifier mortgage, and mixing them up leads to bad plans.
Retirement accounts held in the brokerage. Retirement balances take their own treatment. On the qualifier path, they count at 90% under 59½ and 100% after. On the depletion path, they count at 70% at any age, which is a bigger discount than taxable securities get.
What Documents and Seasoning Does Brokerage Need?
Both paths document the assets. Only the income documentation goes away: no traditional personal-income documentation, pay stubs or employment verification.
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, which helps recent liquidity events.
Seasoning is about proving the money is yours and has been stable. Large, unexplained deposits draw questions. Moving funds between your own accounts is usually fine, but the paper trail should be clean.
What If the Market Drops Before Closing?
The balance on the final statement is what the lender counts, so a drop reduces the usable pool.
This is a real risk on the depletion path, where securities already count at 80%. A borrower with thin margin over the minimum should expect the lender to look at the most recent statement, not the one used at application. A cushion between the pool you need and the pool you have is the simplest protection. If a drop would sink the file, converting part of the portfolio to cash, which counts at 100% on both paths, is one option to weigh against taxes and portfolio goals.
Do You Have to Sell Your Investments?
No. The assets are documented, not liquidated, and they are not pledged as collateral. The property remains the collateral.
That is a major draw for a household living on a portfolio. You keep your positions invested and still turn them into qualifying capacity.
The tradeoff runs the other way too. If you hold concentrated positions that could swing hard, selling some to build a cash buffer may make the file sturdier. Tax treatment varies, so consult a qualified professional before selling anything.
How Much Leverage and Credit Does Each Path Allow?
Leverage differs by path and by property use, and the figures are ceilings, never offers.
| Item | Qualifier path | Depletion path |
|---|---|---|
| Purchase | Up to 80% | Up to 80% (primary/second home); 65% (investment property) |
| Rate-and-term refi | Up to 75% (refinance) | Up to 80% (primary/second home); 65% (investment property) |
| Cash-out refi | Set by lender, not published | Up to 60% |
| Loan amount | Up to $4,000,000 | $125,000 to $3,500,000 |
Credit starts at a 600 minimum score on the qualifier path. The depletion path follows the lender’s matrix, and a first-time investor on that path needs 700. A housing history of 0x30x12 is the standard, with one 30-day late in the past twelve months considered case by case. On the depletion path, qualified assets must be at least the lesser of $1,000,000 or 1.25 times the loan balance, and never below $250,000 liquid when depletion is the only income source. These are typical ranges across select programs, subject to underwriting.
Virginia: What Changes and What Doesn’t
The program figures stay the same for a Virginia borrower, because they do not change by state. Lendmire’s consumer mortgage lending is licensed in 16 states, and Virginia is one of them.
What changes is the property side: local prices, taxes, and insurance. Those are context for your budget, not program parameters. A buyer in Northern Virginia, where balances tend to be large, may find that the qualifier path covers the loan outright. A retiree buying in a lower-priced part of the state may need far less. The percentages do not move either way.
Common Mistakes With Brokerage Accounts
Most problems come from assuming the headline balance is the usable balance.
1. Counting the whole statement. Margin debt, the down payment, and closing costs all reduce it.
2. Mixing the two paths. Quoting 100% from one path and 60 months from the other builds a number no lender will use.
3. Ignoring ineligible holdings. Non-vested RSUs, stock options, privately held stock, and foreign funds sit in many portfolios and do not count.
4. Moving money late. Transfers right before applying can break seasoning.
5. Assuming no documentation. Statements are required. Only personal income documentation is dropped, and the lender’s ability-to-repay review rests on the assets.
Asset-based programs fit when personal income is the bottleneck and the borrower needs a consumer purchase, such as a primary residence. Rental-property financing is a separate, business-purpose route that qualifies primarily on property-level rental income covering the payment, subject to lender guidelines.
Frequently Asked Questions
Can I use stocks without selling them?
Yes. The assets are documented with statements and are not sold or pledged. They stay invested while the lender counts the eligible portion toward qualifying, subject to underwriting.
Does my down payment come out of the brokerage account first?
Yes, in effect. The down payment, closing costs, and any required reserves come out of the usable pool. Only what remains counts toward qualifying, so plan to hold more than the down payment alone.
Is the 100% figure the same as the 80% figure?
They belong to different paths. Brokerage counts at 100% on the asset qualifier path, where assets must cover the whole loan. Securities count at 80% on the asset depletion path, where assets become monthly income over 60 months.
Does a retirement account count the same as a brokerage account?
No. On the qualifier path, retirement balances count at 90% under 59½ and 100% at 59½ or older. On the depletion path, they count at 70% at any age, while securities in a brokerage account count at 80%.
Can I include a joint account?
Often, but it depends on ownership. Lenders review who owns the funds and whether you have access. Confirm the account’s titling before you apply so the balance you expect is the balance that counts.
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.
Lendmire’s asset-based mortgage in Virginia page presents the program for Virginia borrowers.
About Lendmire
Lendmire, NMLS# 2371349, is a mortgage brokerage with consumer lending licenses in 16 states. Bank statement, P&L-only, 1099-only and asset-based mortgages are arranged through wholesale lending partners for borrowers whose traditional personal-income documentation understates their income, and each application is reviewed individually by the lender. Scotsman Guide named Lendmire a Top Mortgage Workplace in both 2025 and 2026.
Get Started
Ready to find the right loan for you?
In about 30 seconds you can review financing options available for your home or investment property. No commitment required.
Informational only. Not a Loan Estimate, approval, or commitment to lend. Program availability and eligibility are subject to lender guidelines, credit approval, property review, and underwriting.
References
2. Cornell LII, 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: Can an Inheritance Qualify You for a Virginia Mortgage Before It Is Seasoned? · Does a Pennsylvania Asset-Based Mortgage Require Tax Returns? · How a 401(k) Counts Toward a Tennessee Asset Qualifier Mortgage Under Age 59½
Guides: Asset-Based Mortgage in Virginia
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
Important disclosures. Lendmire (NMLS# 2371349) is a licensed mortgage brokerage. Lendmire is not a direct lender, depository institution, or financial advisor. All loan inquiries are subject to lender underwriting; this article does not constitute a commitment to lend. Rates, terms, and program guidelines are subject to change without notice and vary by borrower profile, property type, and state. Information in this article is general in nature and is not financial, legal, or tax advice. Equal Housing Opportunity. NMLS Consumer Access: nmlsconsumeraccess.org.