The Quick Read: Pull complete, unaltered statements for every brokerage and retirement account you plan to use, show your name, account number, balance and statement period on every page, and decide in advance whether the assets will cover the whole loan or be converted into qualifying income. The rules differ by path, so the same account can count at different percentages. Everything below is subject to underwriting and the lender’s own calculation.
- Pick your path first: assets that cover the entire loan, or assets that become monthly income.
- Download every page of every statement, blank pages included. Do not send screenshots.
- Only the vested part of a retirement balance counts, and the lender applies a percentage to it.
- Keep money still. Transfers, liquidations and large deposits create items you will have to explain.
- Check statement age against the path you are using before you submit.
Which Path Are You On?
Your statements serve a different job depending on the path. On the asset qualifier path, eligible assets must equal or exceed the entire loan amount, and no employment or income is documented. On the asset depletion path, usable assets are divided by 60 months to create a qualifying income, and that income runs through the debt-to-income test.
A borrower is qualified on one path at a time. Never mix the two tables when you plan. A balance that counts at 100% on one path may count at 80% or 70% on the other.
This matters most for the reader these programs fit: a retiree, someone who sold a business, an heir, or a household living off a portfolio. Balances are large and documented income is small. Both paths still document the assets in full. Skipping income paperwork never means skipping asset paperwork.
These are consumer mortgages, mainly for principal residences and second homes. Investment property is available only on the depletion path. If you plan to buy a rental and want it to qualify on the property’s rent, the complete DSCR loans guide covers that separate business-purpose route.
Why the Lender Wants These Statements
A statement is third-party proof that the money exists and belongs to you. The federal repayment-capacity rule requires lenders to verify the income or assets they rely on using third-party records. On the qualifier path, the file rests on your assets alone. That makes the statements the entire case.
Underwriters look for four things on each page:
- Ownership. Your name appears on the account.
- Identity of the account. The account number and custodian are visible.
- Value. The ending balance and the holdings behind it are shown.
- Period. The statement dates are clear and the pages run in order.
If any of those is missing, expect a condition and a delay in the back-and-forth. Most of that is avoidable.
Step-by-Step Preparation
Work in this order. Each step removes a common reason files get sent back.
1. List every account and its purpose. Write down which accounts you want counted toward the loan and which you want kept as a personal cushion. A single balance counts once. If a retirement account helps you qualify, it cannot also be counted as a separate cushion.
2. Pick the statement set. On the qualifier path, expect two months of statements for each qualifying account. On the depletion path, expect a statement at least 120 days old at application, plus the most recent statement within 45 days. Download both ends of that window.
3. Download every page. Use the custodian’s portal and export the full PDF. Include blank pages and disclosure pages. Screenshots, cropped images and edited files invite rejection.
4. Check the names. The borrower’s name should match the application. If an account is shared with someone who is not on the loan, ask early what extra letter the lender will want.
5. Find the vested balance. For a workplace plan, the statement or plan portal shows the vested amount. Employee contributions are generally vested at once, while employer contributions may follow a schedule. Only the vested portion is usable.
6. Subtract plan loans. An outstanding loan against a 401(k) lowers the usable balance. Show the loan on the statement so the lender does not find it later.
7. Review recent activity. Scan for transfers, large deposits and withdrawals. Write a short explanation and gather proof for anything out of pattern, before the underwriter asks.
8. Build one folder per account. Name files by account and period. A tidy file is easier to read, and readable files draw fewer follow-up requests.
How the Lender Reads a Statement
Think of the page as an underwriter does. The balance line is only the start. The lender checks whether the money has sat in the account, whether it is vested, and whether anything on the page lowers what you can actually use.
For a brokerage account, the holdings matter. Cash and money market balances are simple. Stocks and funds move with the market, so the figure on the statement date is the figure that counts. A balance that looked larger last week does not help you if the statement shows less.
For a retirement account, the lender looks for the vested balance, any outstanding loan, and any rule that limits access. A plan that releases money only on termination, retirement or death can leave those funds out of the picture.
What Counts, and How Much
The percentages below are ceilings from select programs in the wholesale network Lendmire places files with. They are subject to underwriting.
Asset qualifier path
Loans run up to $4,000,000. Eligible assets, after the percentages below, must equal or exceed the entire loan amount.
| Account | Share that counts |
|---|---|
| Brokerage accounts | 100% |
| Certificates of deposit | 100% |
| Money market | 100% |
| Savings | 100% |
| 401(k) or IRA, under age 59½ | 90% |
| 401(k) or IRA, age 59½ or older | 100% |
Accounts combine. Take an $800,000 loan with $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). Usable assets total $800,000, which equals the loan, so the file is reviewed on assets alone. That is an illustration, and the lender’s own calculation governs.
Leverage on this path runs up to 80% on a purchase and 75% on a refinance, for a principal residence or second home. Cash-out terms on this path are set by the lender and are not published, so ask before you plan around them. The credit floor is a 600 score. Reserves are not required at or below 75% loan-to-value, and above that the lender sets them.
Asset depletion path
Loans run from $125,000 to $3,500,000. Usable assets, divided by 60 months, become monthly qualifying income.
| Account | Share that counts |
|---|---|
| Cash accounts | 100% |
| Certificates of deposit | 100% |
| Securities | 80% |
| Private stock | 75% |
| Retirement accounts, any age | 70% |
| Real-estate equity | 60% |
Take $1,500,000 in securities (80%, so $1,200,000) plus $300,000 in cash (100%, so $300,000). Usable assets are $1,500,000. Divided by 60 months, that is $25,000 of monthly qualifying income. That income then has to carry the housing payment and your other debts through the debt-to-income test.
Leverage here is up to 80% on a purchase or rate-and-term refinance and 60% on a cash-out refinance for a principal residence or second home. Cash-out proceeds never count as qualifying assets. Credit follows the lender’s matrix, and a first-time investor needs a 700 score.
The minimums are real. Qualified assets must be at least the lesser of $1,000,000 or 1.25 times the loan balance. When asset depletion is your only income source, liquid assets can never be below $250,000. If assets only supplement documented income, up to a 45% debt-to-income ratio, the minimum-assets rule is waived.
Timing and Statement Age
Statement age is where good files stumble. The two paths use opposite logic.
On the qualifier path, the key idea is 60 days of seasoning with two monthly statements per account. Funds that have sat in your account that long are treated as yours. Money that arrived last week is not.
On the depletion path, a statement must be at least 120 days old at application, and the most recent one must fall within 45 days. Funds from the sale of a business, an inheritance or a legal settlement are excused from that seasoning, though they are still documented.
If your plan issues quarterly statements, ask the custodian for a monthly account history so you can show two months. The lender decides what it accepts. If a new statement posts while the file is open, send it right away.
Retirement Accounts: Where the Rules Bend
Retirement money is the part most borrowers misjudge. Four points matter.
Vesting. Your total balance and your vested balance are not the same number. Use the vested one.
The 59½ line. On the qualifier path, a 401(k) or IRA counts at 90% under age 59½ and 100% at 59½ or older. On the depletion path, retirement accounts count at 70% at any age. The age line changes the answer on one path and not the other.
Plan loans. Per the IRS, a plan loan is generally capped at 50% of the vested balance, up to $50,000. It must be repaid within five years unless it is used to buy a main home, and the plan document must permit loans. A loan that lowers your balance also adds a repayment obligation, so test it against program rules before you take one. Tax treatment varies, so consult a qualified professional before borrowing against a plan.
Access limits. A plan that releases funds only on termination, retirement or death may be excluded. Ask the plan administrator for written confirmation of your withdrawal rights if the statement is silent.
Moving Money Without Creating a Problem
The safest approach is to leave qualifying funds where they are. Each transfer adds a line the underwriter has to trace.
If you must move money, keep the trail clean. A transfer between your own accounts needs both the sending and the receiving statement. A liquidation needs the trade confirmation and the deposit that follows. A rollover needs the paperwork from both custodians.
A large deposit that does not match your pattern needs a letter of explanation and proof of source. Typical proof is a sale closing statement, an inheritance or settlement document, or business records. On the qualifier path, remember that new money restarts the seasoning clock.
Do not sell stock the week you apply just to look tidy. You can lower the percentage that counts, create a deposit to explain, and trigger taxes. Lendmire’s piece How to Prepare Your Bank Statements Before Applying for a Mortgage covers the same habits for cash accounts.
Where the General Rule Breaks
Some assets never behave like a normal statement balance.
- Stock options and non-vested restricted stock units. These are not eligible on the depletion path.
- Custodial accounts, deferred compensation and escrow accounts. These are not eligible on the depletion path either.
- Foreign funds and cash on hand. Neither is eligible on the depletion path.
- Funds from non-regulated financial companies. These are not eligible on the depletion path.
- Cryptocurrency, precious metals and collectibles. Neither path publishes these as eligible. The documented route is converting them to a seasoned cash balance in a regulated account, with the source reviewed by the lender.
- Business accounts. These are not published as eligible beyond your ownership share. Pledged or borrowed funds are not published as eligible either.
- Cash-out proceeds from the same loan. These never count as qualifying assets on the depletion path.
If one of these is a large share of your wealth, convert early and give it time to season.
A Worked File: One Borrower, Three Accounts
Picture a retired borrower with a brokerage account, a 401(k) and a savings account. The goal is to buy a principal residence with loan proceeds that the assets can cover outright.
Step one is the path. The assets are large and the borrower has no employment income, so the qualifier path fits. The borrower is under 59½, so the 401(k) counts at 90%.
Step two is the statement set. The borrower downloads two full monthly statements for each account, with every page. Next comes a check that each page shows the borrower’s name and account number.
Step three is activity review. A transfer from savings into brokerage appears on one statement. The borrower gathers both statements and writes a short note.
Step four is the plan. The borrower’s summary shows the 401(k) as vested, with no outstanding loan, and confirms no restrictions on access.
The result is a clean file. The lender still decides, and every file is underwritten individually.
Common Mistakes
- Sending screenshots or skipping pages.
- Counting the full 401(k) balance when only the vested part counts.
- Forgetting an outstanding plan loan.
- Moving money between accounts in the middle of the file.
- Using a statement that is too old for the path in use.
- Assuming a balance that counts at one percentage on one path counts the same on the other.
- Taking income paperwork off the table and assuming asset paperwork goes with it. It does not.
Pre-Submission Checklist
- Path chosen: asset qualifier or asset depletion.
- Every page of every statement downloaded, in order.
- Your name, account number, balance and period visible on each.
- Vested retirement balance confirmed, plan loans noted.
- Statement age checked against the path.
- Explanations and proof ready for unusual deposits and transfers.
- Ineligible assets identified and a conversion plan in place, if needed.
If you want a redaction rule, leave the owner’s name, account number, statement period and balances visible. Ask your loan officer before blacking out anything else.
Key Terms Defined
Asset qualifier path: A program path that drives lender review on assets alone, with eligible assets covering the entire loan amount.
Asset depletion path: A program path that divides usable assets by 60 months to create monthly qualifying income.
Seasoning: The period funds must sit in your account before the lender treats them as yours.
Vested balance: The portion of a retirement account that you own outright and can claim.
Haircut: The percentage by which a lender discounts an asset to reflect risk, taxes or access limits.
Debt-to-income ratio: Your monthly debts, including the new housing payment, compared with your monthly qualifying income.
Frequently Asked Questions
Do I need to send every page of my brokerage statement?
Yes, send every page, including blank ones and disclosure pages. A missing page can look like an edit, and the lender may send the file back. Export the complete PDF from the custodian’s portal rather than taking screenshots.
How many months of statements will I need?
It depends on the path. On the asset qualifier path, expect two months of statements for each qualifying account and 60 days of seasoning. On the asset depletion path, expect statements at least 120 days old at application plus the most recent one within 45 days. Both are subject to underwriting.
Does my whole 401(k) count?
No. Only the vested portion counts, and an outstanding plan loan lowers it. After that, the lender applies a percentage. On the qualifier path that is 90% under age 59½ and 100% at 59½ or older. On the depletion path it is 70% at any age.
Can I count cryptocurrency or a business account?
Not directly. Neither is published as eligible on either path. The documented route is converting the funds to a seasoned cash balance in a regulated account, with the source reviewed by the lender.
Should I sell investments before I apply?
Usually not. Selling creates a deposit you have to explain, can lower the share that counts, and can trigger taxes. Leave qualifying funds in place unless a lender tells you a specific conversion is needed.
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 options based on your statements, the property, credit profile, leverage, and your goals. Lendmire is a broker that places these consumer mortgages through select lenders in its network and is licensed for consumer mortgage lending in 16 states. Programs change. This is not a commitment to lend. Request a quote at Lendmire or call 828-256-2183.
For current guidelines and terms, see Lendmire’s asset-based mortgage programs page.
About Lendmire
Lendmire (NMLS# 2371349) is a mortgage brokerage serving self-employed and high-net-worth borrowers in 16 states. Bank statement, P&L-only, 1099-only and asset-based mortgages are arranged through wholesale lending channels; Lendmire brokers the financing and the lender underwrites each application. Scotsman Guide named Lendmire a Top Mortgage Workplace in both 2025 and 2026.
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References
1. Federal Register, CFPB Ability-to-Repay Rule (78 FR 6408)
2. IRS 401(k) Resource Guide, Distribution Rules
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 to Qualify for a Mortgage on Liquid Assets Alone · How Big Can an Assets-Only Mortgage Be? · How to Document an Assets-Only Mortgage
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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Disclosure information. Lendmire is a state-licensed mortgage brokerage under NMLS# 2371349. Lendmire is not a depository institution, direct lender, or financial advisor — all loans referenced are placed through wholesale lender partners and are subject to each lender's underwriting standards. This article is provided for general informational purposes and is not a commitment to lend, nor does it constitute financial, legal, or tax advice. Loan programs, terms, rates, and qualification standards change without notice and depend on borrower profile, property type, and the state in which the subject property is located. Equal Housing Opportunity provider. NMLS Consumer Access: nmlsconsumeraccess.org.