The Quick Read: A pledged asset line is a separate credit line secured by your brokerage portfolio, and an asset qualifier mortgage is a home loan that counts your assets without pledging them. The line suits a buyer who wants cash-offer strength and can live with market risk on the portfolio. The mortgage suits a buyer who wants a normal amortizing loan and no collateral call.
- A pledged asset line sits outside the mortgage and can be called if the portfolio falls.
- The asset qualifier path counts eligible assets against the whole loan and documents no employment or income.
- The asset depletion path divides usable assets by 60 months to create qualifying income.
- Both paths document your assets closely, so this is never a no-documentation loan.
- Program figures below are ceilings and floors through select programs, subject to underwriding.
Florida only describes where the home sits. Neither product changes by state, so this article does not invent Florida-specific rules.
Terms First: Three Products Share These Names
Start with vocabulary, because the market blurs it.
A pledged asset line (also called a securities-backed line of credit) is a stand-alone credit line from a bank, secured by a taxable brokerage portfolio. It carries no lien on the house.
A pledged-asset mortgage is a different product. The securities become extra collateral inside the property loan itself.
An asset qualifier mortgage never pledges anything. It counts your eligible assets toward qualifying, and you keep full control of them.
Practitioners also use “asset qualifier” and “asset depletion” loosely. On the files Lendmire places, they are two distinct paths, and a borrower is qualified on one path at a time. That distinction runs through everything below.
Side-by-Side
The pledged asset column reflects published industry norms, not Lendmire guidelines. The asset-based mortgage column reflects the programs Lendmire’s wholesale network places.
| Factor | Pledged Asset Line | Asset-Based Mortgage |
|---|---|---|
| Review basis | Value of pledged portfolio | Assets alone, or assets turned into income |
| Documentation | Line agreement, pledged statements | Asset statements; no employment on qualifier path |
| Collateral | Securities, not the home | The home only |
| Control of assets | Restricted while pledged | Full control, nothing pledged |
| Property types | Any, since proceeds are cash | Primary, second home; investment on depletion path |
| Entity vesting | Line is held personally | Varies by program |
| Reserve expectations | Pledged securities generally can’t count | None at or below 75% LTV on qualifier path |
| Risk if market falls | Possible call or forced sale | No collateral call |
| Structure | Revolving, demand-based line | Standard amortizing mortgage |
How Each One Works
The line. You apply to a bank or broker-dealer affiliate. Eligible taxable securities move into a pledged account, and you keep ownership. The lender sets a borrowing limit as a percentage of pledged value. Per Schwab’s published FAQ, proceeds cannot buy securities but can fund a home purchase, and the line has no maturity date. You draw cash and wire it at closing, so the seller sees a cash buyer.
The catch is the demand feature. Schwab describes its line as uncommitted, meaning the bank can ask for more collateral or repayment if values drop.
The qualifier path. Eligible assets, after credit percentages, must equal or exceed the entire loan amount. No employment or income is documented. Brokerage accounts, CDs, money market and savings count at 100%. Retirement accounts count at 90% under age 59½ and 100% at 59½ or older. Accounts combine.
Here is the illustrative math, and the lender’s own calculation governs. An $800,000 loan with $330,000 in brokerage accounts, $300,000 in a 401(k) under 59½ (counted at 90%, or $270,000) and $200,000 in savings counts $800,000 of usable assets. That is reviewed on assets alone, subject to underwriting.
The depletion path. Usable assets are divided by 60 months to produce monthly qualifying income. That income then carries the housing payment and other debts through the debt-to-income test. Take $1,500,000 in securities (counted at 80%, or $1,200,000) plus $300,000 in cash (100%). That is $1,500,000 usable, divided by 60 months, for $25,000 of monthly qualifying income.
Leverage, Seasoning and Credit on the Mortgage Side
Through select programs, the figures look like this:
- Qualifier path: up to 80% LTV on a purchase and 75% on a refinance, with loans to $4,000,000. Minimum credit score is 600. Assets need 60 days of seasoning, with two months of statements per account.
- Depletion path: up to 80% on a purchase of a principal residence or second home, and 65% on a purchase of an investment property. Loans run from $125,000 to $3,500,000. Credit follows the lender’s matrix, and a first-time investor needs 700. Statements must be at least 120 days old, plus one within 45 days.
- Depletion minimums: qualified assets of at least the lesser of $1,000,000 or 1.25 times the loan, and never below $250,000 liquid when assets are the only income source. Terms depend on the lender’s guidelines, the property type, the leverage, and a full review of the credit profile.
Depletion-path haircuts are heavier: securities count at 80%, retirement at 70%, and real-estate equity at 60%. Cryptocurrency, precious metals and borrowed funds are not published as eligible. The documented route is converting them to a seasoned cash balance in a regulated account.
When a Pledged Asset Line Is the Better Fit
Pick the line when speed of offer and keeping appreciated holdings matter more than long-term stability.
It fits a buyer with a large, diversified taxable portfolio who wants to bid like a cash buyer without selling. It also fits a bridge: buy first, then sell the prior home or refinance into a mortgage. Schwab’s own bridge examples describe this use. Take-out into a mortgage is a separate loan on a separate collateral pool, and pledged securities generally can’t count as reserves while pledged.
Now the honest downside. The SEC’s investor education office and FINRA jointly warned in an investor alert on these lines that borrowers can face unintended tax consequences and may have to sell holdings anyway. Investment Executive’s coverage notes the alert listed 10 questions to ask, including how the broker is paid.
Margin-account rules give a useful analogy. FINRA’s margin disclosure rule says a firm can sell securities without contacting you, and you cannot choose which ones. A bank line follows its own agreement, so read it. The point is that a market drop and a forced sale can arrive together.
Two more cautions. The line is a personal credit relationship, so the account owner must match the signer. Buying through an LLC then needs the cash passed to the entity, and that is a question for counsel.
When an Asset Qualifier Mortgage Is the Better Fit
Pick the mortgage when you want a plain home loan and an untouched portfolio.
It fits a cash-heavy, income-light buyer: a retiree, someone who sold a business, an inheritance or settlement recipient, an early-retired professional, or a household living on a portfolio. Documented income is thin, but balances are large.
Choose the qualifier path when your assets cover the entire loan outright. Choose the depletion path when your assets are better used as income, or when you are buying an investment property, which the qualifier path does not cover. Depletion can also supplement documented income up to a 45% debt-to-income ratio, and the minimum-assets rule is waived when it does.
The tradeoffs are real. Haircuts shrink the usable pool. On the depletion path, down payment and closing funds come out of the same assets. You also accept the overlays of an alternative-documentation loan. In return, nothing is pledged, no lender can call your portfolio, and the loan amortizes like any mortgage. On the qualifier path, no reserves are required at or below 75% LTV, and above that the lender sets them. The exact numbers vary by lender and program and follow a full review of property, leverage, and credit.
Neither product underwrites rent. If the home is a pure rental, a DSCR loan, which qualifies primarily on property-level rental income covering the payment, subject to lender guidelines, is usually the better lane. Assets then matter mostly as reserves. Lendmire’s complete DSCR loans guide walks through that path.
What If the Market Drops?
Run it as a thought experiment, with no figures attached.
With a line, a portfolio decline shrinks your borrowing capacity against a balance you already drew. The bank may demand cash, more securities, or repayment. If the housing side also wobbles, you are stacking market risk on top of vacancy or repair risk. Lendmire’s piece Pledged Asset Line vs Super Jumbo Mortgage in a Market Crash covers that stress case.
With an asset-based mortgage, the portfolio is only evidence at application. After closing, the loan is a regular payment schedule, and a falling market does not trigger a call. You still have to make payments from somewhere, so a plan for ongoing cash flow matters.
Tax treatment can depend on how the funds are used and how the property is held; borrowers should keep clear records and speak with a qualified tax professional before relying on any deduction.
The Combination Play, and a Caution
Some buyers use a line for a quick down payment and then a mortgage for the rest. That can work, but two questions decide it. First, does the lender count line borrowing as debt? Second, do pledged assets still count as qualifying assets or reserves? Across Lendmire’s network, pledged or borrowed funds are not published as eligible assets on either path. Pledging a portfolio can reduce its value as a qualifying asset, so sequence matters. Lendmire’s article, Pledged-Asset Mortgage vs. PAL vs. Margin Loan on a Purchase vs. Cash-Out, covers the choices in more depth.
One regulatory note belongs here. A state regulator’s rulemaking record in New Jersey describes pledged-asset mortgages as a down-payment alternative that exposes borrowers to some risk. It also records a commenter’s worry that seniors on fixed incomes could be enticed into pledging modest savings. Treat it as context, not a Florida rule.
Verdict
Choose the line if you have a deep, diversified taxable portfolio, a short bridge, and the stomach to be called. Choose the asset-based mortgage if you want a standard loan, an unpledged portfolio, and no margin-style surprise. Choose neither if the property is a rental that pays for itself; look at DSCR instead.
If your balances are large but your income is thin, the mortgage side is the steadier structure for most buyers. If speed and holding appreciated stock matter more, the line earns a look with eyes open.
Key Terms Defined
Pledged asset line: a credit line from a bank secured by a taxable brokerage portfolio.
Pledged-asset mortgage: a home loan that adds securities as extra collateral.
Asset qualifier: a path where eligible assets alone must cover the whole loan.
Asset depletion: a path that divides usable assets by 60 months to create qualifying income.
Haircut: the share of an asset’s value a lender will not count.
Seasoning: how long assets must have been in your accounts.
Frequently Asked Questions
Can I use a pledged asset line to buy a home in Florida?
Yes, proceeds can fund a home purchase, but not buy securities. The line is secured by your portfolio, not the house, so the seller sees cash. State rules do not change the structure, and Florida only describes the property’s location.
Does an asset qualifier mortgage require income documents?
On the qualifier path, no employment or income is documented, but your assets are. Expect two months of statements per account and 60 days of seasoning. The depletion path turns assets into income, so it runs through debt-to-income. Everything is subject to underwriting.
Do my retirement accounts count?
Yes, through select programs. On the qualifier path they count at 90% under age 59½ and 100% at 59½ or older. On the depletion path they count at 70% at any age.
Can I use either one for a rental property?
The depletion path allows investment property at up to 65% LTV on a purchase. The qualifier path does not cover it. Neither underwrites rent, so a DSCR loan is the usual rental answer. Final terms depend on the lender’s guidelines, the property type, and the borrower’s complete credit picture.
Can I buy through an LLC?
It varies by program on the mortgage side, and a line is held by the individual. Entity questions are legal and tax matters for counsel.
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 broker arranging financing through select lenders, and consumer mortgage lending is licensed in 16 states, including Florida.
Lendmire’s asset-based mortgage in Florida page presents the program for Florida 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
2. Schwab: Is an SBLOC right for you
3. Schwab: 3 ways to borrow against assets
4. Investor.gov: Investor Alert on Securities-Backed Lines of Credit
5. Investment Executive: FINRA, SEC issue investor alert on securities-backed lines of credit
6. FINRA Rule 2264: Margin Disclosure Statement
7. NJ Department of Banking and Insurance rule proposal
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 a Margin Balance Is Treated on an Asset Depletion Mortgage · Asset Depletion Mortgage vs HELOC on a Paid-Off Home · Asset Qualifier vs Asset Depletion for a Snowbird
Guides: Asset-Based Mortgage in Florida
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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Legal disclosures. Lendmire (NMLS# 2371349) is a state-licensed mortgage brokerage that arranges financing through wholesale lender relationships. Lendmire is not a direct lender, depository institution, or registered financial advisor. The discussion above is general informational content about real estate financing — it is not financial, legal, or tax advice, and readers should consult licensed professionals for guidance on their individual circumstances. Loan inquiries are subject to lender underwriting; this article does not represent a commitment to lend. Loan terms, rates, and qualification standards vary by borrower, property, and state, and are subject to change at any time. Equal Housing Opportunity. NMLS Consumer Access: nmlsconsumeraccess.org.