# Pledged Asset Mortgage: Buy Without Selling Stock (2026)

> How a pledged asset mortgage works, how it compares with a securities-backed line or margin loan, and the risks. Get a free lender comparison.

Canonical: https://www.masalaloans.com/blog/pledged-asset-mortgage
Author: Apurva Sanghavi
Published: 2026-10-17T18:06:56.078Z
Tags: mortgage, personal finance, credit score, Down Payment, home buying

**Quick answer (updated October 2026):** A pledged asset mortgage lets you pledge part of your investment portfolio as extra collateral instead of selling it for a down payment. Your shares stay invested and you avoid a taxable sale, but if the portfolio falls, the lender can demand more collateral or a paydown. Availability, terms and visa-holder eligibility vary widely by lender.

Picture a Fremont or Bellevue engineer with $700,000 in company stock and index funds, most of it unrealized gain. They want a $1.1 million home. Selling $220,000 of stock for a 20% down payment means writing a big check to the IRS and the state, and giving up shares they expected to hold for decades.

A pledged-asset mortgage tries to solve that. It's a niche product, often from banks tied to brokerage platforms, with real risk. Here's how it works and how it compares with a securities-backed line or margin loan.

## How a pledged asset mortgage works

In a typical structure:

1. You open or keep an investment account with the lender or its affiliated brokerage.

2. Instead of bringing a large cash down payment, you pledge securities from that account as additional collateral. The house secures the mortgage; the pledged account secures the portion you didn't put down.

3. The pledged securities stay invested. You keep dividends and price movement, but you generally can't withdraw or sell them freely while pledged.

4. Once the loan balance falls enough relative to the home's value (through payments or appreciation), the lender may release the pledge.

With extra collateral, some programs allow little or no cash down and may avoid private mortgage insurance. How much must be pledged, which securities qualify and when the pledge is released are all lender-specific, so we don't quote terms here.

### This is usually a portfolio loan, not a Fannie Mae loan

Pledged-asset programs are typically held by the lender in its own portfolio rather than sold to Fannie Mae or Freddie Mac. That means the lender sets its own credit, income, property and residency rules. For visa holders, that cuts both ways: no agency floor to point to, but also no agency rule a lender has to follow.

## Margin vs pledged asset vs securities-based line: the real comparison

| **Feature** | **Pledged-asset mortgage** | **Securities-based line of credit (SBLOC) for down payment** | **Margin loan for down payment** |
| --- | --- | --- | --- |
| What it is | Portfolio is extra collateral for the mortgage itself | Separate credit line secured by your portfolio; you draw cash for the down payment | Borrowing against securities in a brokerage margin account |
| Mortgage type alongside it | Usually a portfolio loan from the same lender | Any mortgage (conventional, jumbo) | Any mortgage |
| Fannie Mae treatment | Not applicable (portfolio product) | Borrowed funds secured by financial assets are acceptable; payment need not count as long-term debt | Same category; stock value counted net of margin |
| Rate type | Mortgage rate set by lender | Usually variable | Usually variable |
| Collateral call risk | Yes, if pledged value falls | Yes | Yes, often fastest-moving |
| Avoids selling stock? | Yes | Yes | Yes |
| Typical availability | Limited; specific banks/brokerages | Wider, via brokerages and private banks | Any margin-enabled account |

The SBLOC route is worth understanding. Fannie Mae's Selling Guide (B3-4.3-15) allows borrowed funds secured by financial assets such as stocks or bonds for the down payment, closing costs and reserves, and payments on loans secured by the borrower's financial assets don't have to be counted as long-term debt. If you also use the same account for reserves, the lender reduces its value by the amount borrowed. That means you could take a conventional loan and fund the down payment with a securities-backed draw, without a portfolio mortgage at all.

**Talk to a loan officer who's seen this before:** We'll put a pledged-asset program, an SBLOC-plus-conventional structure and a simple "sell some shares" plan side by side. [Book a free comparison](https://www.masalaloans.com/contact).

## The risk nobody puts in the brochure

All three structures share one danger: **your housing plan is now tied to the stock market.**

If your pledged or borrowed-against portfolio drops, the lender may require you to deposit more securities or cash, or to pay down the loan. With a margin loan, the broker may sell your positions without waiting for you. In a sharp tech drawdown, that can force sales at the worst time, which is exactly what you were trying to avoid by not selling in the first place.

Concentration makes it worse: if most of your portfolio is employer stock, one bad quarter can hit your job and your collateral at once. For visa holders, a layoff is also a status event.

Questions to ask any lender:

- What percentage of the portfolio must be pledged, and how are single stocks and RSUs valued?

- At what value does a collateral call trigger, and how long do I have to respond?

- Can I trade within the pledged account?

- When and how is the pledge released?

- Is the mortgage rate fixed, adjustable or tied to a relationship discount?

- Do you lend to non-permanent residents on this program, and what documents do you need?

## Keep RSUs, buy a house: a worked example

Hypothetical: Vikram, a green card holder in Fremont, is buying a $1,100,000 home. He has $700,000 in a brokerage account, much of it vested company stock with large gains.

| **Strategy** | **Cash down** | **Loan amount** | **Est. P&I at 7.40% (30-yr)** | **Taxable sale?** | **Market risk tied to loan?** |
| --- | --- | --- | --- | --- | --- |
| Sell $220,000 of stock, 20% down | $220,000 | $880,000 | ~$6,093 | Yes | No |
| SBLOC draw for 20% down + conventional/jumbo loan | $220,000 (borrowed) | $880,000 + SBLOC balance | ~$6,093 + variable SBLOC interest | No | Yes (SBLOC) |
| Pledged-asset mortgage, minimal cash down | Varies by program | Up to ~$1,100,000 | ~$7,616 if fully financed | No | Yes (pledge) |

Payment figures use the Freddie Mac weekly average for a 30-year fixed, 7.40%, Oct 15, 2026: illustration only, not a quote or offer. Actual pledged-asset and SBLOC pricing is set by each lender. Excludes taxes, insurance and any PMI.

Two things stand out. First, avoiding the sale doesn't make the house cheaper: borrowing more means paying interest on more. Second, an $880,000 loan in Alameda County may fall within the high-cost conforming limit or require a jumbo loan depending on the county's 2026 figure; see our breakdown of [2026 conforming loan limits in Frisco, Fremont and Irvine](https://www.masalaloans.com/blog/2026-conforming-loan-limits-frisco-fremont-irvine). For larger balances, our guide to [jumbo loans for visa holders](https://www.masalaloans.com/blog/jumbo-loan-h1b) covers reserves and overlays.

## Who a pledged-asset mortgage fits, and who it doesn't

**Better fit:** a large, diversified portfolio with big unrealized gains; strong, stable income; a cash buffer to answer a collateral call; an existing relationship with a bank offering the program.

**Worse fit:** a portfolio concentrated in your employer's stock; a tight monthly budget; a short time horizon in the US.

Simpler alternatives exist. You can [sell RSUs for a down payment](https://www.masalaloans.com/blog/sell-rsu-down-payment) in stages, timing sales for long-term gains. You can use a [401(k) loan for a down payment](https://www.masalaloans.com/blog/401k-loan-down-payment). Or you can put less down on a conventional loan and plan to [remove PMI](https://www.masalaloans.com/blog/how-to-remove-pmi-conventional-loan) later.

## What the rules actually say

- **Fannie Mae Selling Guide B3-4.3-15, Borrowed Funds Secured by an Asset (10/30/2009):** borrowed funds secured by financial assets (stocks, bonds, 401(k), CDs) are acceptable for down payment, closing costs and reserves; payments on loans secured by the borrower's financial assets need not be counted as long-term debt; reduce the asset by loan proceeds if also used for reserves.

- **Fannie Mae Selling Guide B3-4.3-01:** stock values are determined net of margin balances.

- **Pledged-asset mortgage programs:** generally lender portfolio products; terms and eligibility are set by each lender (as of October 2026).

## Frequently Asked Questions

**Q: What is a pledged asset mortgage?**<br />A: It's a mortgage where you pledge part of your investment portfolio as additional collateral instead of making a large cash down payment. Your securities stay invested but are restricted. If their value falls, the lender can require more collateral or a paydown. Programs are offered by a limited number of lenders, each with its own terms.

**Q: Can I keep my RSUs and still buy a house?**<br />A: Often, yes. Options include a pledged-asset mortgage, a securities-based line of credit for the down payment, or using vested shares as reserves while putting less cash down. Each keeps shares invested but ties your housing plan to the market in some way.

**Q: Is a pledged asset mortgage better than a margin loan?**<br />A: They solve different problems. A margin loan is fast and flexible but usually variable-rate and quick to trigger forced sales. A pledged-asset mortgage folds the collateral into the home loan itself. Compare rates, collateral rules and call triggers in writing before choosing.

**Q: Can H-1B holders get a pledged asset mortgage?**<br />A: Sometimes. Because these are usually portfolio products, each lender sets its own residency rules, and some limit them to citizens and permanent residents. Ask directly. A securities-backed line paired with a conventional loan may be easier for visa holders to access.

**Q: Does a securities-backed loan count against my DTI for a mortgage?**<br />A: On a Fannie Mae loan, payments on a loan secured by your own financial assets don't have to be counted as long-term debt. Your lender may still review it, and other programs may treat it differently. Confirm with your loan officer.

## Get a side-by-side lender overlay comparison for your portfolio

Bring a recent brokerage statement, your target price and how long you expect to stay. We'll compare a pledged-asset program, an SBLOC-plus-conventional structure and a partial-sale plan, showing payment, cash to close and how much market risk each adds. We shop 150+ wholesale lenders, so one bank's program isn't the only option on the table. Book a free 15-minute call at /contact, start your application at /apply, or call 713-366-4668.

*Masala Loans is a brand of Matador Lending, LLC (NMLS #2072896). Written by Apurva Sanghavi, President, NMLS #227127. Equal Housing Opportunity. This article is general education, not tax, legal or immigration advice — consult a qualified CPA, attorney or immigration lawyer for your situation. Program availability, rates and terms vary by lender and borrower and are subject to change; not a commitment to lend.*