The Quick Read: Seasoning is the lender’s check that the money you qualify with has been yours, in your account, long enough to trust. On the asset qualifier path that means 60 days and two months of statements per account. On the asset depletion path it means statements at least 120 days old plus one dated within 45 days. These figures come through select programs in Lendmire’s wholesale network and are subject to underwriting.
- The asset qualifier path covers the entire loan with eligible assets and documents no employment or income.
- The asset depletion path divides usable assets by 60 months to create a qualifying income, which then runs through the debt-to-income test.
- You are qualified on one path at a time, and the seasoning clock is different on each.
- Money that arrives late, or without a paper trail, is the usual reason a clean-looking file stalls.
If you are a retiree, a business seller, an heir, or a household living off a portfolio, this is the part of the file that decides how much of your wealth actually counts. Here is how it works, step by step.
Two Meanings of Seasoning (and the One That Matters Here)
Seasoning means two different things in mortgage conversations. This article covers the first one: how long your funds have sat in your account. The second is the ownership clock, and it is a separate rule.
Fund seasoning is the waiting period for money used to qualify. Experian describes seasoned funds as money held in your account for at least 60 days before you apply, and calls 60 days the common convention. The point is simple. Lenders want to know the money is really yours and is not an undisclosed loan.
Property seasoning is the wait between buying a property and refinancing it, usually to pull cash out. Lenders set that clock themselves, and it has nothing to do with how old your savings are. If you are buying a home with assets, you can ignore it. If you are refinancing a house you bought recently, ask about it separately.
A third clock also exists: credit-event seasoning, the wait after a housing event such as a foreclosure. On the asset depletion path, a housing event needs 4 years of seasoning, subject to underwriting.
Key Terms Defined
Seasoning: the length of time funds have sat in your account before a lender counts them.
Sourcing: the paper trail showing where a deposit came from, such as a sale statement or a gift letter.
Asset qualifier path: the route where eligible assets must equal or exceed the entire loan amount and no income is documented.
Asset depletion path: the route where usable assets are divided by 60 months to produce a monthly qualifying income.
Usable assets: your balances after the program’s percentages are applied, since some account types count at less than full value.
Haircut: the discount a lender applies to an asset that can lose value or is harder to turn into cash.
Debt-to-income ratio: your monthly debts, including the new housing payment, compared with your monthly income.
Which Path Fits You?
Choose the qualifier path if your eligible assets can cover the whole loan amount. Choose the depletion path if your assets are large but you would rather turn them into income than match the loan dollar for dollar. Most borrowers fit one path far better than the other, and a loan officer can tell you which in a single conversation.
On the qualifier path, no employment or income is documented. That means no traditional personal-income documentation, pay stubs or employment verification. The assets are documented in full, though. No income documentation never means no documentation. Across the programs Lendmire places files with, the assets are the whole file, so they get the closest look.
On the depletion path, the lender converts your assets into monthly income and tests it against your debts. That is why the depletion path has stricter asset minimums and more asset haircuts. It also carries the longer statement rule.
Here is a quick view of who tends to use which path.
- A retiree with a large brokerage account and little pension income often fits the depletion path, because the balance becomes income.
- A business seller holding the proceeds in cash may fit either path, depending on the loan size against the cash.
- An heir holding inherited funds in a savings account often fits the qualifier path when the balance is at or above the loan.
Whichever path you choose, the loan is a consumer mortgage. Lendmire is the broker, and the loan is placed through select lenders in its network. The asset-based mortgage program page lays out both paths in one place.
Seasoning on the Asset Qualifier Path
The qualifier path asks for 60 days of seasoning and two months of statements for each qualifying account, subject to underwriting. Eligible assets, after the percentages below, must equal or exceed the entire loan amount. Accounts combine, so you can mix brokerage, savings and retirement balances.
| Asset on the qualifier path | Share of balance 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% |
Privately held company stock is not eligible on this path. The rest of the qualifier-path profile looks like this:
- Leverage: up to 80% loan-to-value on a purchase and 75% on a refinance, on a principal residence or second home.
- Loan size: up to $4,000,000.
- Credit: a 600 minimum score, with housing history of 0x30x12. One 30-day late payment in the last twelve months is considered case by case.
- Reserves: none required at or below 75% loan-to-value. Above that, the lender sets them.
Whether cash-out proceeds are allowed on this path is up to the lender and is not published, so ask before you plan around it.
Two months of statements covers roughly 60 days of account history. That is why the two numbers travel together. Anything older than the oldest statement is invisible to the underwriter, so the account has to look clean inside that window.
Seasoning on the Asset Depletion Path
The depletion path flips the timing. Statements must be at least 120 days old at application, and the lender also wants the most recent statement within 45 days. Think of it as a long history plus a fresh snapshot. Sale-of-business, inheritance and legal-settlement funds are excused from that seasoning, though the lender still reviews where they came from. Other sources, such as proceeds from selling a home or withdrawals from retirement accounts, are not on that excused list and follow the normal statement rule.
| Asset on the depletion path | Share of balance that counts |
|---|---|
| Cash accounts | 100% |
| Certificates of deposit | 100% |
| Securities | 80% |
| Retirement accounts, any age | 70% |
| Real-estate equity | 60% |
Several things do not count on this path: privately held stock, 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. If you own a closely held company, the route is a sale or buyout converted into a seasoned cash balance. Cash-out proceeds from the loan itself never count as qualifying assets.
The leverage and size limits on the depletion path are these:
- Principal residence or second home: up to 80% on a purchase or rate-and-term refinance, and 60% on a cash-out refinance.
- Investment property: up to 65% on a purchase or rate-and-term refinance, and 60% on a cash-out refinance.
- Loan size: $125,000 to $3,500,000.
- Minimum assets: the lesser of $1,000,000 or 1.25 times the loan balance, and never below $250,000 liquid when depletion is your only income source.
- Credit: the lender’s matrix sets the score. A first-time investor needs 700, and multiple bankruptcies are not eligible.
Asset-derived income can also supplement documented income, up to a 45% debt-to-income ratio. When it supplements, the minimum-assets rule is waived. All of this is subject to underwriting, and the lender’s own calculation governs.
What Happens to a Large Deposit?
A large deposit is not a dead end, but it needs a story with paper behind it. Underwriters read statements line by line, and an unexplained deposit looks like borrowed money until proven otherwise. Experian notes that lenders review recent large deposits to confirm the money came from an acceptable source and was not undisclosed debt. It also says documents like a gift letter, bill of sale or written explanation may be needed.
HomeBuyer.com adds two useful points. The seasoning period varies with the lender and the details of the file. Large unexpected deposits are, by definition, unseasoned, so they must be documented before they can be used.
You have three options when a deposit is not seasoned:
1. Wait. Let the funds sit until they clear the program’s seasoning window.
2. Document. Provide a paper trail: a brokerage liquidation statement, a settlement statement for sale proceeds, or a distribution statement.
3. Exclude. Leave the deposit out of your qualifying total, and see whether the rest still qualifies.
Experian also makes a point that surprises people. Money that was already in the account when the lender began reviewing it usually needs no sourcing. The scrutiny falls on recent change, not on long-held balances.
Cash under the mattress is the exception to everything here. A deposit with no paper trail generally cannot be used, and cash on hand is on the ineligible list for the depletion path.
Unusual Assets: Crypto, Metals, Business Accounts, Borrowed Funds
Cryptocurrency, precious metals, collectibles, business accounts beyond your ownership share, and pledged or borrowed funds are not published as eligible on either path. They do not count at a percentage. Say that plainly to yourself before you build a plan around them.
The documented route is conversion. You sell the asset, deposit the proceeds in a cash account at a regulated institution, and let the lender review the source. Seasoning then applies to that cash balance under the path you have chosen. For a depletion-path file, the sale-of-business style excusal may not apply to an ordinary asset sale, so ask how the lender treats your specific case.
The general principle on borrowed money is simple: it is not your money until it is repaid and the account history is clean.
Gifts are inconsistent across programs. Experian says a gift still has to be documented with a gift letter and donor proof. Whether a gift counts toward qualifying assets on a given path is not something this program publishes, so treat it as a question for the lender before you rely on it.
Two Worked Examples
These examples are illustrative only. The lender’s own calculation governs, and every file is underwritten individually.
Qualifier path. Say you want an $800,000 loan. You hold $330,000 in brokerage accounts, $300,000 in a 401(k) and $200,000 in savings, and you are under age 59½. The brokerage counts at 100%, which is $330,000. The 401(k) counts at 90%, which is $270,000. The savings count at 100%, which is $200,000. That totals $800,000 of usable assets, which matches the loan, so you qualify on assets alone, subject to underwriting and the 60-day seasoning on each account.
Notice what happened to the retirement money. The 10% haircut cost you $30,000 of counted value. At age 59½ or older, that account would count in full.
Depletion path. Say you hold $1,500,000 in securities and $300,000 in cash. Securities count at 80%, which is $1,200,000. Cash counts at 100%, which is $300,000. That is $1,500,000 usable, divided by 60 months, which gives $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.
Seasoning shapes both examples. If you moved part of that securities balance in the last few months, the older statements may not show it. The lender may then count only what the full statement history supports. Market swings matter too. A securities balance counted at 80% on the latest statement is worth less if the market drops before the file is reviewed, so leave yourself some cushion.
A Pre-Application Timeline
Treat seasoning as a calendar you control. Work backward from the day you plan to apply.
- Well before shopping: consolidate the money you intend to use into the accounts of record, in your own name. Finish any sales, transfers and conversions now.
- During the seasoning window: stop moving money. Deposits, withdrawals and transfers between your own accounts all create lines the underwriter must read.
- Just before applying: pull every page of every statement, not selected pages. Gaps look like hidden activity.
- After applying: keep the accounts quiet, and do not open new debt.
On the qualifier path, the window is 60 days with two months of statements per account. On the depletion path, plan for statements at least 120 days old at application plus one dated within 45 days. If you moved your own money between accounts, the 60 days run from the original source, so you must show both accounts.
The two paths count from different anchors. On the depletion path, the 120-day test is measured at your application date. On the qualifier path, count against the dates on your statements. Many borrowers lose time because they count from the wrong day.
Colorado Borrowers: What Is the Same and What Isn’t
The program figures do not change by state. A Colorado borrower faces the same seasoning windows, asset percentages and leverage limits as a borrower anywhere the program is placed. Lendmire’s consumer mortgage lending is licensed in 16 states, and Colorado is one of them.
What does vary is the property and your plans for it. Colorado borrowers often hold large balances from a prior home sale, a business exit, an inheritance or retirement savings. Seasoning treats these differently. On the depletion path, business-sale, inheritance and legal-settlement funds are excused from the statement-age rule. Home-sale proceeds and retirement balances are not excused. They follow the normal statement rule on the depletion path, or the 60-day rule on the qualifier path, so plan their timing early. Mountain and resort-area buyers sometimes want a second home, which sits on the same leverage footing as a principal residence on the depletion path. An investment property is limited to 65% on a purchase on that path.
Local prices, insurance and similar state facts are context for your budget. They are not program parameters, and they do not change the seasoning rules.
Where a Pure Rental Purchase Belongs
If the property is strictly a rental, a different product usually fits better. 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. They qualify primarily on property-level rental income covering the payment, subject to lender guidelines. Asset documentation still applies, since the lender wants to see cash reserves behind the file.
The asset-based mortgage here is a better match when you want the home for yourself, or when your balances matter more than a rental’s income.
Common Mistakes That Stall a File
- Counting the same dollars twice. Money used for the down payment cannot also be counted as leftover assets, and one account cannot be counted in two buckets.
- Moving money at the last minute. A transfer inside the window creates a trail the underwriter must follow.
- Sending partial statements. Missing pages are treated as missing activity.
- Mixing business and personal funds. Business accounts count only to the extent of your ownership share, and extra proof of ownership and access may be required.
- Assuming retirement money counts in full. It is 90% under age 59½ and 100% at 59½ or older on the qualifier path, and 70% at any age on the depletion path.
- Believing that no income documentation means no documentation. Assets are documented on both paths.
Many investors also assume every dollar must sit for 60 days. That is not quite true. Money already in the account needs no new sourcing, and documented deposits can be acceptable. The exact treatment depends on the path and the lender.
Document Checklist
Gather these before you apply:
- Every page of statements for each qualifying account, covering the window your path requires.
- A written explanation for any recent large deposit, with the supporting document attached.
- Settlement statements for sale proceeds, or distribution statements for retirement money.
- Proof of ownership and access for any business account you plan to use.
- A gift letter with donor proof, if a gift is part of the picture and the lender accepts it.
- Proof that crypto or other unusual assets were converted to cash in a regulated account, with the source shown.
Frequently Asked Questions
Do all my funds have to sit for 60 days?
Not necessarily. Money that was already in the account when the lender began its review usually needs no sourcing, and recent deposits can sometimes be used with a documented source. On the qualifier path, the rule is 60 days of seasoning with two months of statements per account. On the depletion path, the statement rule is different, so check which path you are on.
Does the clock start on my application date?
It depends on the path. On the depletion path, the 120-day statement test is measured at your application date, and one statement must be within 45 days. On the qualifier path, count back from the dates on the statements you provide. Either way, line up your statement dates before you apply.
Can I use inheritance or sale proceeds that just arrived?
On the depletion path, business-sale, inheritance and legal-settlement funds are excused from the seasoning requirement, though the lender still reviews the source. Proceeds from selling a home are not on that list. On the qualifier path, expect the 60-day rule to apply to all of them, so ask how the lender treats new proceeds. Either way, bring the settlement or estate paperwork.
Does seasoning work the same on a refinance?
Fund seasoning applies to the money you use to qualify. The ownership clock, meaning how long you have held the property, is a separate rule that lenders set on their own. Leverage also changes on a refinance: 75% on the qualifier path for a principal residence or second home, and 60% on a cash-out on the depletion path, subject to underwriting.
Will this loan work for a rental property?
Only on the asset depletion path, where an investment property is limited to 65% on a purchase or rate-and-term refinance and 60% on a cash-out. The qualifier path is for principal residences and second homes. A pure rental often fits a DSCR loan better.
What to Do Next
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.
The best seasoning plan for any Colorado borrower is to start early, keep deposits clean, and let the statements tell a boring story.
About Lendmire
Lendmire (NMLS# 2371349) is a mortgage broker that arranges bank statement, P&L-only, 1099-only and asset-based home financing in 16 states through wholesale lenders, on primary residences, second homes and investment properties. Every option is subject to the lender’s guidelines and full underwriting. Scotsman Guide named Lendmire a Top Mortgage Workplace in both 2025 and 2026.
Get Started
Ready to find the right loan for you?
In about 30 seconds you can review financing options available for your home or investment property. No commitment required.
Informational only. Not a Loan Estimate, approval, or commitment to lend. Program availability and eligibility are subject to lender guidelines, credit approval, property review, and underwriting.
References
1. Experian
This article is part of Lendmire’s asset-based mortgage program — full qualification details, guidelines, and scenarios live on the program page.
Related reading: Can Two Texas Retirees Buy a Home Together on an Asset Qualifier Mortgage? · How to Buy Before You Sell in Colorado Using an Asset Qualifier Mortgage · How Colorado Tech Employees Paid in Stock Get a Mortgage on Assets
Guides: Asset-Based Mortgage in Colorado
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
- Mortgage Loan Originator · NMLS# 1129696 · Verify on NMLS Consumer Access
- North Carolina Real Estate Broker · License# 343312 · Verify on NCREC
- North Carolina Insurance Producer · License# 19053198 · Property, Casualty, Life, Health · Verify on NAIC SBS
- Lendmire LLC · Firm NMLS# 2371349 · Verify firm licensure
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.