Stocks Are At Record Highs: Leverage Your Portfolio to Buy a House

Stocks are at record highs, and the Magnificent 7—Apple, Microsoft, Amazon, Alphabet (Google), Meta, Tesla, and Nvidia—have minted millions of new millionaires. Nvidia alone has skyrocketed more than 1,000x since its early days, while the others continue to dominate the market. For many Texans and new arrivals alike, that paper wealth is no longer just sitting in brokerage accounts—it can now be used to unlock homeownership.

The key is the asset depletion mortgage (also known as asset dissipation mortgages)Instead of relying solely on W‑2 income or tax returns, lenders can look at your stocks, ETFs, and even 401(k) balances, convert them into a qualifying income stream, and use that number to approve you for a mortgage. For many buyers, it’s the difference between being locked out of the market and getting approved for the home they really want.

And unlike margin loans or selling off stock, asset depletion doesn’t mean you part ways with your investments or trigger a tax bill. Your portfolio keeps working for you, while also opening the door to Texas real estate.

Why Big Tech Wealth Matters for Homebuying in 2025

Texas is attracting money and talent from every corner of the country. Shareholders in the “Magnificent 7”—Apple, Microsoft, Amazon, Alphabet (Google), Meta, Tesla, and Nvidia—have seen their portfolios swell over the last decade. Many of them are now looking to diversify by planting roots in Austin, Dallas, Houston, and San Antonio. And plenty of ordinary investors with big 401(k) balances or long-term ETF holdings are asking the same question: Can my investments help me buy a home?

The answer is yes. If you’ve built wealth in the market, you don’t need to sell shares and trigger capital gains just to buy property. An asset depletion mortgage lets you use your account value as qualifying income. That means you can buy real estate without walking away from future stock growth.

What Is an Asset Depletion Mortgage?

Think of it this way: instead of asking, “How much do you earn each year from work?” lenders ask, “How much could you reasonably draw from your assets if you needed to?”

Here’s how it works:

• Lenders take the total value of your eligible assets—brokerage accounts, retirement accounts, mutual funds, ETFs, or even cash savings.

• They apply a formula that divides the balance by a set number of months (usually 360 for a 30-year mortgage).

• The result is treated as qualifying monthly income.

For example, a $2 million stock portfolio divided over 360 months equals $5,555 in monthly qualifying income. Add that to W‑2 wages, bonuses, or RSUs, and suddenly you can qualify for a much larger mortgage than you expected.

Unlike traditional underwriting, asset depletion doesn’t depend on tax returns or adjusted gross income—which often understates the true financial strength of investors, retirees, or entrepreneurs.

Real-World Asset Depletion Mortgage Scenarios

The Engineer with Stock and Salary
Imagine a software engineer in Austin making $250,000 a year in W‑2 salary. On paper, that’s enough for a modest home, but not for the $3 million they’ve been eyeing in Westlake. However, they also have $4 million in Microsoft and Amazon stock that’s been held for over a decade. Using asset depletion, that stock translates to an extra $50,000 in monthly qualifying income. Combined with salary, they’re now approved for the higher loan amount without selling a single share.

The Retiree with ETFs
A retiree in Houston has $3 million in ETFs spread across Vanguard and Fidelity accounts, but only $60,000 in annual pension income. Traditional underwriting wouldn’t qualify them for a jumbo loan. Asset depletion changes the game: their portfolio value creates more than $35,000 a month in qualifying income, enough to buy a second home in Galveston without liquidating holdings.

The Entrepreneur with a 401(k)
A small business owner in Dallas reports minimal taxable income because of deductions and reinvestments. But their 401(k) balance is over $1 million, and their brokerage account holds another $500,000 in index funds. An asset depletion mortgage turns that into qualifying income, bridging the gap between being “under-qualified” on paper and being fully approved for a conventional loan.

The Benefits of Using Stocks and Retirement Accounts to Buy a House

No Capital Gains Hit
Selling shares to buy a house often triggers a tax bill, especially for long-term holders of Magnificent 7 stocks or ETFs. Asset depletion avoids that by keeping your investments intact.

Stay Invested
Your portfolio keeps compounding. Instead of cashing out and missing the next rally in Tesla or Nvidia—or the steady rise of the S&P 500—your money remains in the market.

Bigger Approvals by Combining Income
Asset depletion isn’t an either/or. It works alongside W‑2 income, bonuses, commissions, and RSUs. The more income streams you can document, the stronger your approval.

Flexibility Across Property Types
These mortgages aren’t just for primary residences. You can use them to buy a vacation home in Port Aransas, a second home in the Hill Country, or an investment property in Dallas.

Who Asset Depletion Mortgages Help Most

• Tech Professionals: Austin and Dallas are filled with employees who’ve been granted RSUs from Apple, Meta, Tesla, or other Magnificent 7 companies. Asset depletion turns those holdings into income without waiting to sell.

• Retirees: Texans who’ve built strong 401(k) or IRA balances can buy retirement homes without relying solely on Social Security or pensions. We also offer specialized retirement mortgage programs that help retirees use their assets efficiently to qualify without draining their nest egg.

• Entrepreneurs: Self-employed borrowers often show low taxable income, but asset depletion gives them credit for the wealth they’ve built in accounts. We also help entrepreneurs through bank statement mortgage programs, which use deposits rather than tax returns to qualify—making it easier to buy even when traditional underwriting says no.

• High-Net-Worth Families: Even if you’re still working, a $2–5 million portfolio can help you stretch into higher-value homes while keeping investments intact.

Why This Matters in Texas Right Now

The Texas housing market in 2025 looks very different from the frenzy of 2021. Inventory is higher, prices in Austin have cooled, and sellers are offering concessions. In Houston and San Antonio, builders are delivering new homes at record pace. Even Dallas suburbs like Celina and Frisco are adding thousands of units to meet demand. Buyers with strong financing power can negotiate more aggressively, pick from better options, and secure homes in neighborhoods that would have been out of reach just a few years ago.

It’s also a market where creativity counts. Many sellers are more open to rate buydowns, repair credits, or extended timelines, but only for buyers who can prove their financial strength upfront. Having the ability to qualify with assets—rather than waiting for the “perfect” tax return or showing inflated W‑2 income—gives Texas buyers an edge in a market that rewards flexibility and speed. In today’s climate, the more ways you can demonstrate income and stability, the more leverage you have in getting your offer accepted.

Why Mortgage Brokers Like LendFriend Are Key

Not all lenders know how to handle asset depletion properly. Big banks often have rigid rules that exclude retirement balances or haircut stock values unnecessarily. As a mortgage broker, LendFriend works with multiple lenders who understand these programs and shop for the most favorable structure.

That means we can:

• Pair W‑2 income with asset depletion for maximum approval power.

• Help you document RSUs, bonuses, and 401(k) balances in ways that pass underwriting.

• Find lenders that allow broader asset classes—including ETFs and mutual funds—not just cash savings.

• Navigate unique borrower profiles, whether you’re an early retiree, a business owner, or someone whose wealth is concentrated in Big Tech stock.

We’ve also built deep expertise in asset depletion mortgage programs, which means we know how to structure deals that traditional lenders often fumble. From jumbo loans to investment properties, we position your assets in the most favorable light so you can maximize your buying power.

When your financial picture doesn’t fit neatly into a W‑2 box, having the right broker matters even more. With LendFriend, you get the flexibility of multiple lending partners combined with the strategy to present your portfolio in the best possible way.

Final Thoughts: Let Your Stocks Work Twice as Hard

Buying a home in Texas doesn’t mean abandoning your investment strategy. With an asset depletion mortgage, your stocks, ETFs, and retirement accounts can do double duty—continuing to grow in the market while helping you qualify for the home you want.

Whether you’re holding Nvidia and Amazon, a retiree with a Vanguard-heavy 401(k), or an entrepreneur balancing business deductions with big brokerage accounts, you don’t have to choose between staying invested and buying real estate. You can do both.

At LendFriend, we’ve helped clients across Austin, Dallas, Houston, and San Antonio unlock homeownership using asset depletion mortgages. If you’ve built wealth in the market and are ready to put it to work in real estate, we’re here to guide you through every step.

Want to learn how your portfolio can qualify you for a Texas home? Schedule a call today or get in touch with me by completing this quick form and we’ll show you how to leverage your assets—without giving them up.