The Quick Read: It depends on the path you choose. On the asset qualifier path (assets alone cover the loan), funds generally need 60 days of seasoning with two months of statements per account. The asset depletion path (assets become monthly income) wants statements at least 120 days old and excuses sale-of-business funds, subject to underwriting and select lender programs. Home-sale proceeds are not on that excused list, so a settlement statement helps, but the lender decides how to treat them. The clock comes from the lender’s program, not from a Texas rule.
- 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 path excusal: sale-of-business, inheritance and legal-settlement funds are excused from that seasoning.
- Money in escrow or a title company hold does not count until it lands in your own account.
- A clean settlement statement answers most questions, but it does not replace the program’s seasoning rule.
Key Terms Defined
Seasoning is the length of time money has sat in your account, shown on statements, before a lender will count it.
Sourcing means proving where a deposit came from with a document, such as a settlement statement or wire record.
Settlement statement is the closing document from the title or escrow company. It lists the price, the payoff, the fees and your net proceeds.
Asset qualifier path drives lender review on assets alone. Your eligible assets, after the credit percentages, must equal or exceed the entire loan amount.
Asset depletion path divides your usable assets by 60 months to create a monthly qualifying income. That income then runs through the debt-to-income test.
Usable assets are the share of each balance the program counts. A savings account may count at 100%, while a retirement account may count at less.
Why Do Lenders Season Funds at All?
Lenders season funds to catch borrowed money and unexplained cash. Experian’s explainer on seasoned money says funds already sitting in an account when the review begins usually need no sourcing. It also says deposits with no paper trail generally cannot be used for the purchase.
Sale proceeds sit in an unusual spot. They arrive as one large deposit, which looks like the thing seasoning is built to flag. But the money has a documented origin: an arm’s-length sale with a settlement statement. Across the wholesale network where Lendmire places asset-based files, the underwriter’s real question is whether the deposit is your own money. Time on a statement is one way to answer that. A closing document is another.
The two answers do not carry equal weight in every program. That is why the number of days changes with the path.
Which Path Are You On?
You are on one path at a time, and each has its own seasoning rule. Pick the path first, then read the number that applies. All figures below are published ceilings and floors for select programs, subject to underwriting. They are not offers.
| Factor | Asset Qualifier Path | Asset Depletion Path |
|---|---|---|
| How assets are used | Cover the whole loan | Divided by 60 months into income |
| Seasoning | 60 days | Statements 120+ days old |
| Statements | Two months per account | Plus one within 45 days |
| Sale-of-business funds | Standard 60 days | Excused from seasoning |
| Loan amounts | Up to $4,000,000 | $125,000 to $3,500,000 |
| Purchase leverage | Up to 80% LTV | Up to 80% (primary or second home), 65% (investment) |
On the qualifier path, a refinance goes up to 75% LTV on a principal residence or second home. Credit starts at a 600 minimum score. On the depletion path, rate-and-term refinances follow the same 80% and 65% limits as purchases, and cash-out is capped at 60%. Cash-out proceeds never count as qualifying assets. The depletion path follows the lender’s matrix for credit, and a first-time investor needs a 700 score there. The exact numbers vary by lender and program and follow a full review of property, leverage, and credit.
The 60 days on the qualifier path is the clean answer for most sellers who just want assets to cover a loan on a home they will live in. The depletion path asks more, but it has the excusal that matters to business sellers.
When Does the Clock Actually Start?
The seasoning clock starts when the money posts to your own account, not at contract or closing. Your statements are the lender’s evidence, and a statement can only show money that has arrived. Funds sitting in an escrow account or a title company hold are not yours on paper yet. The depletion path lists escrow accounts as not eligible.
Think of the sequence in four steps:
1. Contract. Nothing counts yet. A pending sale is a plan, not an asset.
2. Closing. The title company issues the settlement statement. This is your key document.
3. Disbursement. The wire or check leaves the title company for your account.
4. Deposit. The first statement showing the funds starts your seasoning history.
Some sellers assume the clock runs from the closing date. In practice, it runs from the deposit. A wire that sits at the title company over a long weekend does not start a statement.
One conversion helps depletion-path borrowers. Real-estate equity counts at 60% on that path, but cash counts at 100%. When you sell and the proceeds become cash in a regulated account, the same value counts for more. Tax treatment varies by situation; consult a qualified professional before relying on any assumption about net proceeds.
What Each Type of Proceeds Needs
Different proceeds carry different paper trails. This table shows how the two paths generally treat them, and the trap that stalls files. The lender’s own review governs each case.
| Source of funds | Typical treatment | Common trap |
|---|---|---|
| Home sale | Settlement statement; lender confirms | Funds still in escrow |
| Business sale | Excused on depletion path | Money left in a business account |
| Inheritance or settlement | Excused on depletion path | No document proving the source |
| Retirement rollover | Counts at program percentage | Mixing with other deposits |
| Transfer between own accounts | Needs both account statements | Moving money in small pieces |
| Crypto or metals | Convert to cash first | Counting them before conversion |
Business accounts count only for the borrower’s ownership share, and that route is narrower than most sellers expect. If you sell a company and the proceeds land in an entity account, move your share into a personal account and keep the transfer record. Cryptocurrency, precious metals and collectibles are not published as eligible on either path. The documented route is converting them to a seasoned cash balance in a regulated account, with the lender reviewing the source.
Pledged or borrowed funds are not published as eligible either. A deposit that looks like proceeds but was partly funded by a loan can sink the file. Disclose it early.
Three Texas Scenarios
These scenarios are hypothetical. They show how the paths play out for a Texas borrower, since program figures do not change by state.
The home seller buying a new place. Picture a retiree who sells a Texas home and wants to buy another as a primary residence. The title company issues a settlement statement and wires the net proceeds to her savings account. The savings account counts at 100% on the qualifier path, and two months of statements start building once the deposit posts. If her assets cover the entire loan amount, she may fit the qualifier path, subject to underwriting. Her main task is leaving the money alone until the seasoning is on paper.
The business seller with an entity account. Say you sold your share of a company and the buyer paid into the company account. Move your ownership share into a personal account and save the wire record. On the depletion path, sale-of-business funds are excused from the 120-day statement rule, so the document trail carries the weight. The loan then runs through the debt-to-income test. In the program’s sanctioned example, $1,500,000 of usable assets divided by 60 months is $25,000 of monthly qualifying income. That income then has to carry the housing payment and other debts, and the lender’s own calculation governs.
The partial sale with a holdback. Imagine a sale where part of the price is held back or paid later. Only the portion actually deposited in your account is an asset today. The held-back portion stays out of the numbers until it arrives and is documented. Plan the purchase around what is in hand, not what is promised.
A Sequencing Playbook for Sellers
The aim is to keep one clear trail from the closing table to the lender’s file. A practical order looks like this:
1. Ask the title company for the final settlement statement as soon as it is available.
2. Choose one personal account for the proceeds. Avoid splitting them across several.
3. Keep the wire confirmation that matches the net proceeds line on the settlement statement.
4. Download every statement page, including blank-looking ones.
5. Write a short letter of explanation for the large deposit.
6. Identify which path fits you before applying, so the right seasoning rule applies.
7. Tell the lender if any part of the money came from a loan.
The lender sets the actual list of documents. Starting with these items usually prevents a second round of requests.
What to Avoid During the Window
Avoid anything that muddies the trail. Moving proceeds through several accounts creates a puzzle for the underwriter. Buying large items with the money shrinks the balance the lender is counting. Depositing cash on hand adds funds that are not eligible on the depletion path. Mixing in a personal loan creates borrowed-funds questions. Finally, closing an account mid-review makes your statement history harder to read.
Underwriters also read the balance trend. A sharp jump or drop against earlier statements needs an explanation. Better to give it up front than to wait for a condition.
Where Files Stall and How to Fix Them
Files usually stall on documentation, not on the borrower’s wealth. The most common stall points, and their fixes, look like this:
- Funds in escrow. Wait until the money lands in your account, then start the statement history.
- Unexplained deposit. Provide the settlement statement, the wire record and a short letter.
- Entity account. Move your ownership share to a personal account and document the transfer.
- Not enough statement history on the depletion path. Check whether your source type is excused. If it is not, the statements need to age.
- Not enough eligible assets. Cash on hand, foreign funds, escrow accounts and non-vested stock units do not count on the depletion path. Subtract them before estimating.
- Thin depletion minimums. The depletion path requires qualified assets of at least the lesser of $1,000,000 or 1.25 times the loan balance. Depletion as the only income source also requires at least $250,000 in liquid assets.
Does Texas or Federal Law Set a Clock?
No state or federal rule we are aware of sets a number of days for sale proceeds. Seasoning is lender and program policy. The federal rule on a lender’s duty to verify income or assets, in the CFPB’s ATR/QM small-entity compliance guide, requires considering and verifying the assets relied on. It does not prescribe a holding period.
The asset-based mortgage described here is a consumer loan, so standard consumer disclosures apply. Rental financing is different. 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. CFPB’s Regulation Z exemption page covers business-purpose credit. If you are buying a pure rental and want to qualify on the property’s rent, Lendmire’s complete DSCR loans guide explains how that path works.
Can You Buy Before the Window Ends?
Sometimes, but not by borrowing against the money you plan to count. Pledged or borrowed funds are not published as eligible on either path. Other programs use tools such as home equity lines and bridge loans, and each follows its own rules. Those rules do not carry over to this program.
Your cleaner options are to wait for the seasoning to build or to confirm whether your source type is excused. If you hold sale-of-business, inheritance or settlement funds, the depletion path may fit better. For a deeper look, see Lendmire’s piece Can Sale Proceeds Alone Qualify You for an Asset Depletion Loan?. The related piece How to Qualify on Home-Sale Proceeds Using an Asset Depletion Mortgage covers the mechanics of that route.
Your 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 is a mortgage broker. It places these loans through select lenders in its network, which is licensed for consumer mortgage lending in Texas and 15 other states, and every file is underwritten individually. Reach the team at 828-256-2183.
A Texas sale is easiest to use when the settlement statement, the wire record and the first statement show the same net number.
Frequently Asked Questions
Do I need to wait after my sale closes before I apply?
Not necessarily, but your seasoning clock starts when the money posts to your account. The qualifier path generally wants 60 days of seasoning and two months of statements per account. The depletion path wants statements at least 120 days old unless your source is excused. Each file is subject to underwriting.
Do funds held in escrow or at the title company count?
No. Escrow accounts are not eligible assets on the depletion path, and funds you do not yet control cannot appear on your statements. Wait until the proceeds land in your account, then keep the settlement statement and wire record together.
Can I use an LLC account for the proceeds?
Business accounts count only for the borrower’s ownership share, and the route is narrow. The safer approach is moving your share into a personal account and documenting the transfer. The lender reviews the source and decides.
Does crypto count if I sell it for the down payment?
Crypto is not published as an eligible asset on either path. The documented route is converting it to a seasoned cash balance in a regulated account. The program reviews the source of the funds.
What if my deposit is large?
A large deposit usually triggers a request for documents, not a denial. Provide the settlement statement, the matching wire or deposit record and a short explanation. Unsourced money, borrowed money and cash on hand are the real problems.
Lendmire’s asset-based mortgage in Texas page presents the program for Texas borrowers.
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 traditional personal-income documentation understates 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. Experian – What Is Seasoned Money for a Down Payment?
2. CFPB – ATR/QM Small Entity Compliance Guide
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: Asset-Based Mortgage vs Home Equity Investment for Retirees Who Need Cash · Can You Use an Asset-Based Mortgage to Buy a Pennsylvania Home for Your Parents? · Pledged Asset Line vs Asset Qualifier Mortgage for a Montana Home Purchase
Guides: Asset-Based Mortgage in Texas
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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Disclosures. The information presented in this article is general market commentary, not financial, legal, or tax advice. Lendmire is a mortgage brokerage (NMLS# 2371349) — not a direct lender or depository institution — and loan placement is subject to lender underwriting. Nothing in this content represents a commitment to lend. Loan terms, pricing, and program availability vary based on borrower qualifications, property characteristics, and state of subject property, and are subject to change at any time. Lendmire complies with Equal Housing Opportunity requirements. Consumer access: nmlsconsumeraccess.org.