The Quick Read: A brokerage statement qualifies you in one of two ways. Either your eligible assets cover the entire loan, or they are converted into monthly qualifying income. Which one applies depends on the property and on how you hold your wealth.
- On the asset qualifier path, eligible assets must equal or exceed the whole loan, and no employment or income is documented.
- On the asset depletion path, usable assets are divided by 60 months to create qualifying income, which then runs through the debt-to-income test.
- You are qualified on one path at a time, and the paths use different asset percentages.
- Your assets are always documented. Skipping income documents never means skipping documents.
- On a rental-property DSCR loan, the statement only shows reserves. Rent carries that loan.
Which Job Is the Statement Doing?
A brokerage statement can do three different jobs, and most confusion comes from mixing them. Each job answers a different lender question. Each has different rules.
| Job | What the lender measures | Fits |
|---|---|---|
| Asset qualifier path | Total eligible assets vs. the whole loan | Home or second home |
| Asset depletion path | Assets ÷ 60 months, then DTI | Home, second home, investment property |
| DSCR reserves | Liquid funds left after closing | Rental purchase |
The first two are consumer mortgages, so they fit a cash-heavy, income-light borrower. Think of a retiree, someone who sold a business, an heir, or a household living off a portfolio. Balances are large. Documented income is small.
The third is a different animal. DSCR loans are designed for non-owner-occupied investment properties. Because they are business-purpose investor loans, they are reviewed differently from a standard owner-occupied mortgage. On those files, the loan is reviewed primarily on property-level rental income covering the payment, subject to lender guidelines. The statement supports the file but does not carry it.
Lendmire’s complete DSCR loans guide covers the rental side in full.
Key Terms Defined
- Seasoning: the minimum time money must sit in an account before a lender counts it.
- Haircut: the share of a balance a lender subtracts because the asset can fall in value or is hard to reach.
- Usable assets: your balances after the percentages for each asset type are applied.
- Reserves: liquid funds you still hold after the purchase closes.
- Qualifying income: a monthly figure the lender calculates from assets rather than a paycheck.
- Debt-to-income ratio (DTI): your monthly debts, including the new housing payment, divided by your monthly income.
- Margin balance: money borrowed against the securities in the account.
What a Lender Reads on a Brokerage Statement
An underwriter reads six things on the statement, and you can check each before you submit.
1. Account owner. The name must match you, or the entity or trust that is allowed to use the funds.
2. Statement period and every page. Partial statements get sent back.
3. Holdings versus cash. Shares are valued at market. A cash sweep balance is treated as cash.
4. Margin loans. Borrowed money sits against the same holdings. Pledged or borrowed funds are not published as eligible on either path.
5. Pending trades. Money that is unsettled can fall out of the usable balance.
6. Large deposits. A recent transfer in needs a paper trail to its source.
A common stall is a statement that looks rich but includes a margin balance or a stack of unvested awards. Read your own statement the way an underwriter would before you send it.
Path One: Assets Cover the Whole Loan
The asset qualifier path asks one question. After the credit percentages are applied, do your assets equal or exceed the entire loan amount? If yes, the file is reviewed on assets alone, subject to underwriting. No employment or income is documented.
Through select programs, leverage on this path runs up to 80% on a purchase and up to 75% on a refinance, on a principal residence or second home. Loans run up to $4,000,000. Whether cash-out proceeds are allowed on this path is set by the lender and is not published, so ask before you plan around it. The minimum credit score is 600. Reserves are not required at or below 75% loan-to-value, and above that the lender sets them.
Here is the sanctioned shape of the math, and it is illustrative only.
- Loan amount: $800,000.
- Brokerage accounts: $330,000 at 100% counts $330,000.
- 401(k) under age 59½: $300,000 at 90% counts $270,000.
- Savings: $200,000 at 100% counts $200,000.
- Total usable assets: $800,000, which equals the loan.
The accounts combine, so you can mix brokerage, savings and retirement balances. The lender’s own calculation governs.
Path Two: Assets Become Income
The asset depletion path converts your portfolio into notional monthly income. Nothing is sold, pledged or frozen. You keep the assets and their upside. The income is a calculation only.
The steps run in this order:
1. Total the eligible accounts and apply the haircut for each asset type. 2. Remove dollars you will spend on the purchase, because those dollars cannot also support income. 3. Divide the usable amount by 60 months. 4. Run the result through the debt-to-income test with the new housing payment and your other debts.
A worked illustration with the same percentages: $1,500,000 in securities at 80% counts $1,200,000. Add $300,000 in cash at 100%. Usable assets are $1,500,000. Divided by 60 months, that is $25,000 of monthly qualifying income. That figure must then carry the housing payment and other debts.
Leverage here is lower and varies by occupancy. On a principal residence or second home, the ceiling is 80% on a purchase or rate-and-term refinance and 60% on a cash-out refinance. On an investment property, it is 65% on a purchase or rate-and-term refinance and 60% on a cash-out. Cash-out proceeds never count as qualifying assets. Loans run from $125,000 to $3,500,000.
The minimums are real. You need qualified assets of at least the lesser of $1,000,000 or 1.25 times the loan balance. When asset depletion is your only income source, you also need at least $250,000 in liquid assets. Asset income can instead supplement documented income up to a 45% DTI, and in that case the minimum-assets rule is waived. A first-time investor on this path needs a 700 score. Otherwise credit follows the lender’s matrix.
This is where the divisor decides everything. Programs across the market use very different depletion periods, so confirm which one applies before you compare offers.
Which Holdings Count, and How Much
The share of each balance that counts differs by path. Never carry a percentage from one column to the other.
| Asset | Qualifier path | Depletion path |
|---|---|---|
| Brokerage / securities | 100% | 80% |
| Cash, savings, money market | 100% | Cash accounts 100% |
| Certificates of deposit | 100% | 100% |
| 401(k) / IRA | 90% under 59½, 100% after | 70% at any age |
| Private stock | Not published | 75% |
| Real-estate equity | Not published | 60% |
On the depletion path, these are not eligible at all: custodial accounts, deferred compensation, escrow accounts, foreign funds, cash on hand, stock options, non-vested restricted stock units, and funds from non-regulated financial companies.
Cryptocurrency, precious metals, collectibles, and pledged or borrowed funds are not published as eligible on either path. The documented route is to convert them to a seasoned cash balance in a regulated account. The lender then reviews where the money came from. Do not assume they count at any percentage.
A taxable brokerage account has no early-withdrawal penalty, unlike a retirement account, though NerdWallet notes you may have to sell investments to reach cash. That access gap is why retirement balances usually carry a bigger haircut on the depletion path.
Seasoning, Large Deposits, and Moving Money
Seasoning rules differ by path, and both revolve around statement dates.
- Qualifier path: 60 days of seasoning, and two months of statements for each qualifying account.
- Depletion path: statements at least 120 days old at application, plus the most recent statement within 45 days.
- Depletion exception: sale-of-business, inheritance and legal-settlement funds are excused from that seasoning.
Before you move money, ask how the program treats the account. A transfer can create a sourcing question that did not exist before. If you must move funds, keep the record: the outgoing statement, the incoming statement, and a short written explanation for any large deposit.
Selling shares to build a cash balance works, but the proceeds must be traceable. Selling shares can have tax consequences, and tax treatment can depend on how the funds are used and how the property is held; keep clear records and speak with a qualified tax professional before relying on any deduction.
Ownership Edge Cases
Ownership is where one statement gets different answers from different lenders. Across Lendmire’s wholesale network, the strictest overlays focus on who is on the account.
- Joint accounts. Some programs require everyone on an account used to qualify to also sign the note and mortgage.
- Trust accounts. Trust-held assets can work, but titling and access matter. Lendmire’s piece How to Use Trust Assets to Qualify on an Asset Depletion Mortgage covers that setup.
- Custodial accounts. These are not eligible on the depletion path.
- Business accounts. Entity operating funds belong to the entity. Only your ownership share is reviewed.
- Several custodians. Each account needs its own statements, and the accounts combine.
Fix titling problems before you apply. Retitling later can reset the seasoning clock.
Market Movement Between Statement and Closing
Your credited balance is a snapshot. Securities move. A balance that clears the requirement by a thin margin on the statement date may not clear it later.
The lender may ask for an updated statement as the deal works forward, and the credited number can shrink. That is why the cushion matters more than the pass. On the depletion path, a lower usable balance also lowers the qualifying income, because the divisor stays at 60 months. Plan for a margin of safety above the minimums rather than aiming for the exact line.
A stable cash-heavy mix also reads cleaner than a concentrated, leveraged one. Positions funded with margin carry more risk in the lender’s eyes than the same balance held free and clear.
Where the Rules Come From
The lender is not guessing when it asks for statements. Under the federal ability-to-repay rule, a lender making a consumer mortgage must make a reasonable, good-faith determination that you can repay. That rule, found in Regulation Z § 1026.43, lists income or assets other than the value of the home as factors. It also requires that whatever the lender relies on be verified with reasonably reliable third-party records. A brokerage statement is exactly that kind of record.
Business-purpose loans sit outside that rule. Regulation Z § 1026.3 exempts credit extended primarily for a business purpose, so a true investor loan follows the lender’s own guidelines instead. Status is judged transaction by transaction. That is one reason occupancy and purpose certifications matter, and why a rental-property DSCR loan is a separate product from the two asset-based paths above.
Using the Statement on a DSCR Rental Loan
If you are buying a pure rental and want a DSCR loan, three rules apply.
First, rent drives qualification. A strong statement does not rescue a weak rent-to-payment ratio. Programs below 1.00 coverage are available through select lenders in the network, but leverage and terms adjust.
Second, a statement is not cash to close. Your down payment must arrive as cash. Unsold shares usually count, if at all, as post-closing reserves, often at a discount that varies by lender. Selling shares or borrowing against them is a separate step, and borrowing against shares brings margin-call risk.
Third, reserves are weighed alongside the coverage ratio and other file factors. They are not graded pass or fail in isolation.
A large portfolio can make a DSCR file stronger on liquidity without selling a share. It cannot turn a property that does not cover its payment into one that does.
Choosing Your Route
Match the route to the question your file needs answered.
| Your situation | Likely route |
|---|---|
| Assets exceed the whole loan | Asset qualifier path |
| Big portfolio, buying an investment property | Asset depletion path |
| Rental that covers its own payment | DSCR, with statement as reserves |
| Income shown through business deposits | Bank statement program |
The bank statement program suits borrowers who document income through deposits. It is a different tool from asset-based qualification.
Before you submit, run this self-audit:
1. Every page of every statement is included.
2. The account owner matches the borrower or approved entity.
3. No margin balance, pledged holdings or unvested awards are in the total.
4. Large deposits have a documented source.
5. The balance clears the requirement with room to spare.
Frequently Asked Questions
Do I have to sell my brokerage account to qualify?
No. On both asset-based paths the assets are counted, not liquidated. The depletion calculation is math only, and you keep the account. You would sell only if you want shares converted to cash for the down payment or a cash balance.
Can I use a brokerage statement as my down payment?
Not directly. A statement proves you own assets, but the down payment arrives as cash. Unsold shares can count toward the asset test on the asset-based paths, subject to underwriting. On a DSCR rental loan, they usually count only toward reserves.
Does a retirement account count the same as a brokerage account?
No, and the treatment depends on the path. 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.
Can I use this for an investment property?
Only on the asset depletion path, with leverage up to 65% on a purchase or rate-and-term refinance and 60% on a cash-out. The qualifier path covers principal residences and second homes. A rental that covers its own payment may fit a DSCR loan instead. Exact terms depend on the lender’s guidelines, property type, leverage, and a full review of the borrower’s file.
What if I have a low credit score?
The qualifier path has a 600 minimum score, subject to underwriting. The depletion path follows the lender’s score and loan-amount matrix. A first-time investor on the depletion path needs 700. Multiple bankruptcies are not eligible.
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’s consumer mortgage lending is licensed in 16 states, and every figure above is a ceiling or floor through select programs, subject to underwriting.
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 tax returns understate their income, and each application is reviewed individually by the lender. Scotsman Guide named Lendmire a Top Mortgage Workplace in both 2025 and 2026.
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References
1. NerdWallet, brokerage account explainer
2. CFPB Regulation Z § 1026.43, Minimum Standards for Transactions Secured by a Dwelling
3. CFPB Regulation Z § 1026.3, Exempt Transactions
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 an Asset Depletion Mortgage Works · How to Document an Assets-Only Mortgage
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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- Lendmire LLC · Firm NMLS# 2371349 · Verify firm licensure
Required disclosures. Lendmire (NMLS# 2371349) operates as a licensed mortgage broker, not a direct lender or depository. The discussion in this article is general in nature and should not be relied upon as financial, legal, or tax advice — every investment scenario is unique and should be reviewed by a qualified professional. Any loan inquiry is subject to lender underwriting, and this article is not a commitment to lend or a guarantee of approval. Mortgage rates, loan terms, and program guidelines vary by borrower, property, and state, and may change without notice. Equal Housing Opportunity. Verify licensure at NMLS Consumer Access.