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Mbanc NMLS #38232 | Equal Housing Opportunity Lender
Qualifying Assets: 100% Eligible
These assets count at full face value toward the eligible asset total:
Checking accounts: All checking accounts held in the borrower’s name or jointly. Business checking accounts where the borrower is the sole owner may also qualify with documentation.
Savings accounts: Standard savings, high-yield savings, money market savings accounts.
Money market funds: Both money market mutual funds (investment accounts) and money market deposit accounts (bank accounts). The distinction is irrelevant for qualification purposes — both count at 100%.
Taxable brokerage accounts: This is typically the largest eligible asset category for wealthy borrowers. Individual and joint taxable brokerage accounts at Fidelity, Vanguard, Schwab, TD Ameritrade, E*TRADE, and similar platforms. All publicly traded securities held in these accounts: stocks, bonds, ETFs, mutual funds.
The account value used is the current market value at the time of application — not the cost basis, not the highest historical value.
Certificates of deposit (CDs): Current market value of all CDs, regardless of maturity date. A CD maturing in 2 years is still eligible today.
Treasury securities and I-Bonds: US government securities held directly or in a TreasuryDirect account.
Municipal bonds: Held in taxable brokerage accounts.
Qualifying Assets: 70% Eligible (Retirement Accounts)
Retirement accounts are eligible but at a 30% discount to account for early withdrawal taxes and penalties that might reduce accessible value:
Traditional IRA: 70% of current account balance. If the borrower is over 59½ (no early withdrawal penalty) and in a lower tax bracket, the true accessible value may be higher — but the program applies the standard 70% regardless.
Roth IRA: 70% of current account balance. Contributions (basis) in a Roth IRA can actually be withdrawn penalty-free and tax-free at any age — but the program applies the blanket 70% factor.
401(k) and 403(b): 70% of vested balance. Not total balance — vested balance. Unvested employer matching contributions that haven’t yet vested do not count.
SEP-IRA and SIMPLE IRA: 70% of account balance. Common for self-employed borrowers who have maximized these over their careers.
Inherited IRA: Depends on structure and required minimum distribution status. Confirm with loan officer.
Solo 401(k): 70% of vested balance. Common for solo self-employed who built these alongside their business.
Not Qualifying: Assets Excluded From Calculation
Down payment and closing costs:
The funds being deployed for the purchase cannot also qualify the purchase. If you need $350,000 for down payment and $45,000 for closing costs, $395,000 of your portfolio is excluded from qualifying assets.
This is the most common calculation error. A borrower who has $2,500,000 in a brokerage account and is making a $350,000 down payment has only $2,150,000 eligible (after excluding the deployed portion), not $2,500,000.
Home equity:
The equity in your current home or investment properties is illiquid — it cannot be converted to cash without selling or refinancing. Illiquid assets are not eligible for asset utilization.
Business interests and equity:
Ownership interests in private companies, LLCs, partnerships, and closely held businesses are illiquid and difficult to value precisely. Not eligible.
Unvested RSUs and stock options:
Restricted stock units that have not yet vested — and options that cannot yet be exercised — are contingent assets. Not eligible. Vested RSUs that have been sold and the proceeds deposited into a brokerage account: eligible (they’ve become liquid assets at that point).
Collectibles, art, precious metals, cryptocurrency:
Non-standard assets with valuation uncertainty and liquidity concerns. Generally not eligible. Some exceptions may apply for exchange-traded digital assets — confirm with loan officer.
529 college savings accounts:
Restricted purpose assets. Not eligible for asset utilization.
UTMA/UGMA accounts in a minor’s name:
These are the child’s assets legally, not the borrower’s. Not eligible.
Special Situations: Assets in Trust
Assets held in trusts can qualify but require additional documentation:
Revocable living trust (grantor trust):
The borrower as grantor/trustee typically has full access to trust assets. These qualify as if the borrower holds them directly. Trust document required for underwriting.
Irrevocable trust where borrower is beneficiary:
Access depends on trust terms. If the borrower can access trust principal or receives distributions with clear documentation: eligible. If access is restricted by trustee discretion or specific conditions: may not qualify. Trust document review required.
Testamentary trust (inherited):
Depends on terms. Borrowers receiving distributions from a trust may qualify those distributions as income rather than using asset utilization. Confirm structure with loan officer.
For any trust-held assets, submit the complete trust document. The loan officer and underwriter will determine eligibility based on actual trust terms.
The Asset Verification Process
For the application, borrowers submit the most recent 2 months of statements for all eligible accounts:
What statements must show:
Account holder name matching the borrower’s legal name.
Account number (at least partial).
Current account balance.
All pages of each statement.
Account aggregation:
If using an aggregation service (Plaid, Yodlee, etc.), the loan officer may accept a single aggregated portfolio report. Confirm acceptable format.
Large recent transactions:
If a large deposit occurred in the most recent statement period (sale of investment, inheritance receipt, business distribution), source documentation may be required. Prepare: brokerage confirmation of asset sale, wire transfer records, or other documentation tracing the funds to a verifiable source.
Frequently Asked Questions
Can I use brokerage assets that are currently in a margin account?
Assets in a margin account are eligible, but the margin loan balance (what you’ve borrowed against the assets) may be subtracted. The eligible amount is typically the equity (assets minus margin balance).
Does my spouse’s IRA qualify?
If your spouse is a co-borrower on the loan, their retirement assets (at 70%) are eligible alongside yours.
Can a revocable living trust hold eligible assets?
Yes — revocable living trust assets where the borrower is grantor and trustee are typically fully eligible. Submit the trust document for underwriting review.
Not a commitment to lend. Mbanc NMLS #38232 | Equal Housing Opportunity Lender
The Taxable vs Retirement Account Trade-off
For borrowers who have a choice about how to hold their assets (for example, a business seller deciding where to deploy sale proceeds), the eligibility factors create a meaningful difference in qualifying income:
$1,000,000 deployed to taxable brokerage: $1,000,000 × 100% ÷ 84 = $11,905/month.
$1,000,000 deployed to traditional IRA rollover: $700,000 × 100% ÷ 84 = $8,333/month.
For a business seller deploying $5,000,000 in proceeds: maximizing taxable vs retirement account allocation directly impacts qualifying income.
This is not investment advice — retirement accounts offer significant tax advantages that may outweigh the mortgage qualification consideration. But borrowers who anticipate using asset utilization for mortgage qualification within 5 years should factor the taxable account advantage into their financial planning discussions.
Vested vs Unvested RSUs: The Sequence Matters
For technology executives who receive RSU grants:
Unvested RSUs: Not eligible. The shares haven’t been transferred yet.
Vested, unsold RSUs (in employer’s plan): May be eligible at market value — depends on how quickly they can be converted to cash. Confirm with loan officer.
Vested RSUs sold, proceeds in brokerage: 100% eligible. The moment vested RSUs are sold and cash is in the brokerage account, they become standard liquid assets.
The practical implication: a tech executive planning to use asset utilization should sell vested RSUs to cash before applying, rather than holding them in the unvested/vested-unsold state. The post-sale cash in the brokerage qualifies at 100%; the unsold RSUs may qualify at a discount or not at all.
Not a commitment to lend. Mbanc NMLS #38232 | Equal Housing Opportunity Lender
Not a commitment to lend. Mbanc NMLS #38232 | FL #MLD1287 | CA DBO #60DBO45280 | TX SML | NC #L-183446 | IL #MB.6761396 | GA #48090 | TN #178934 | Equal Housing Opportunity Lender | Asset utilization loan requires 640+ credit score | Eligible assets ÷ 84 = monthly qualifying income | Programs and rates subject to change