The Quick Read: Yes, usually, as long as the sale proceeds are cash in your own account and documented with statements, because asset-based mortgage programs can qualify you on those assets instead of on a paycheck. The condition matters. Escrow holdbacks, earn-outs and seller notes are not cash yet, so they do not count until they are paid out.
- Two paths exist. Assets can cover the whole loan outright, or assets can be converted into monthly qualifying income. You are qualified on one path at a time.
- No income paperwork, but full paperwork on assets. The files need no traditional personal-income documentation, pay stubs or employment verification. They do need statements, and every file is fully underwritten.
- Leverage runs up to 80% on a purchase on either path for a primary residence, subject to underwriting.
- Retirement money counts at a discount on both paths, and the discount differs by path.
- A rental purchase uses only the depletion path, at lower leverage than a home.
Why Does Selling a Business Make Underwriting Harder?
A sale turns income into a lump of cash, and standard mortgage underwriting reads income, not lumps. The draw you took from the business stops the day it sells. The traditional personal-income documentation still shows the old operating years, so the file looks weaker than you are.
Picture the owner of a Richmond-area distribution company who sells and wants a home near the water. On paper, the income that supported her life last year is gone. In the bank, she holds more than most borrowers ever see. A lender built around pay stubs sees the first fact. An asset-based lender sees the second.
That gap is what asset-based programs exist to close. Lendmire arranges these loans as a broker through select lenders in its network, and its consumer mortgage lending covers 16 states, Virginia among them. The asset-based mortgage program fits a cash-heavy, income-light borrower. Retirees, inheritors and business sellers all fit that description.
Which Qualification Path Fits a Business Seller?
The asset qualifier path fits when your eligible assets equal or exceed the entire loan. The asset depletion path fits when your assets are large but do not cover the whole loan, or when you are buying a rental. Pick the path before you pick a house.
Here is the side-by-side, using ranges typical of select programs in the network and subject to underwriting:
| Factor | Asset qualifier | Asset depletion |
|---|---|---|
| How it qualifies you | Assets cover the whole loan | Assets become monthly income |
| Income documented | None | Derived from assets |
| Leverage, purchase | Up to 80% | Up to 80% (home), 65% (investment) |
| Leverage, refinance | Up to 75% | 80% rate-and-term, 60% cash-out (home) |
| Loan amounts | Up to $4,000,000 | $125,000 to $3,500,000 |
| Credit | 600 minimum | The lender’s matrix |
The depletion refinance leverage for an investment property is 65% on a rate-and-term and 60% on a cash-out. Qualifier-path cash-out terms are set by the lender and not published, so treat any cash-out on that path as a question for underwriting.
How the asset qualifier path works
You qualify when eligible assets, after the credit percentages below, equal or exceed the entire loan amount. No employment or income is documented. The lender’s ability-to-repay review rests on the assets.
Brokerage accounts, certificates of deposit, money market and savings all count at 100%. A 401(k) or IRA counts at 90% if you are under 59½ and 100% once you reach 59½. Accounts combine.
Run a modeled example. Take an $800,000 loan. You hold $330,000 in brokerage accounts, which count at 100%, or $330,000. You hold $300,000 in a 401(k) at age 55, which counts at 90%, or $270,000. You hold $200,000 in savings, which counts at 100%, or $200,000. That adds up to $800,000 of usable assets, so the loan is reviewed on assets alone. The lender’s own calculation governs.
Reserves are not required at or below 75% loan-to-value. Above that, the lender sets them.
How the asset depletion path works
Here the lender takes your usable assets and divides them by 60 months. The result is a monthly qualifying income. That income then has to carry the housing payment and your other debts through the debt-to-income test, which compares monthly debts to monthly income.
The haircuts are different on this path. Cash accounts and certificates of deposit count at 100%. Securities count at 80%, private stock at 75% and retirement accounts at 70% at any age. Real-estate equity counts at 60%.
Another modeled example. You hold $1,500,000 in securities, which count at 80%, or $1,200,000. You also hold $300,000 in cash, which counts at 100%. That is $1,500,000 of usable assets. Divided by 60 months, that is $25,000 of monthly qualifying income. That income then has to carry the housing payment and other debts.
Minimums apply. Qualified assets must be at least the lesser of $1,000,000 or 1.25 times the loan balance. They must never fall below $250,000 liquid when asset depletion is your only income. If you also have documented income, such as consulting pay, asset-derived income can supplement it up to a 45% debt-to-income ratio, and the minimum-assets rule is waived.
Which Sale Proceeds Actually Count?
Only money that has landed in your own account counts. The headline sale price is not your cash. Think of the closing statement as the receipt and your bank statement as the proof.
| Proceeds type | Counts toward qualifying? |
|---|---|
| Cash wired to your account | Yes, once documented |
| Escrow or holdback | Not until paid out |
| Earn-out | Not until paid out |
| Seller note | No, it is a receivable |
| Cash held in a 1031-style exchange | Not in your account, so not available |
A few more edge cases come up in sale files.
- Escrow accounts are on the not-eligible list for the depletion path.
- Business accounts are not published as eligible beyond your ownership share. If the money still sits in a company account, move it to a personal account first and expect the lender to review the source.
- Crypto, 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 source reviewed by the lender.
- Pledged or borrowed funds do not count either.
You also cannot count the same dollar twice. Cash used as the down payment is not also a reserve. Cash that has been spent on closing is not an asset on the statement anymore.
One more point on the sale itself. Whether you take the gain as a lump sum or spread it over years, the price you receive is a tax matter, and what stays liquid is a financing matter. Tax treatment can depend on how the funds are used and how the property is held; borrowers should keep clear records and speak with a qualified tax professional before relying on any deduction.
What About Seasoning, Statements and Timing?
Seasoning is how long money has to sit in an account before a lender trusts it. The sale of a business gets a break on one path and not on the other. That difference is often the deciding factor.
On the asset qualifier path, the file needs 60 days of seasoning and two months of statements for each qualifying account. Proceeds you wired in last month have to season before they count.
On the asset depletion path, statements must be at least 120 days old at application, plus the most recent statement within 45 days. Sale-of-business funds, inheritances and legal settlements are excused from that seasoning. A seller with fresh proceeds will often find the depletion path friendlier on timing, even if leverage is the trade-off.
Even where seasoning is excused, the lender still reviews where the money came from. A big deposit with no closing statement behind it invites questions. Keep the purchase agreement and settlement statement together with the statements.
If you are buying before your sale closes, the proceeds are not yet assets. Most programs in the network want the cash in the account before they count it. Plan the home purchase around that rather than around the signing date.
What Documents Do You Gather?
Think of two piles: proof of assets and proof of the rest of the picture. Every file is fully underwritten, so the assets are documented with statements. A short checklist:
- The settlement or closing statement from the sale.
- Statements for each account you plan to use to qualify, covering the periods above, subject to lender guidelines.
- A government photo ID and your housing history.
- Your credit profile, since lenders typically set a minimum score on both paths.
- For retirement accounts, the most recent statement showing the balance and your age.
- For any business-owned funds, a record showing your ownership share.
Credit still matters. The asset qualifier path has a 600 minimum score. The depletion path follows the lender’s score and loan-amount matrix, and a first-time investor on that path needs 700. Housing history is 0x30x12, though one 30-day late in the last twelve months is considered case by case. Multiple bankruptcies are not eligible. A housing event needs 4 years of seasoning on the depletion path.
Can You Use the Proceeds to Buy a Rental?
Yes, but only on the asset depletion path, and with lower leverage. An investment property is financed up to 65% on a purchase or rate-and-term refinance and 60% on a cash-out, subject to underwriting. Cash-out proceeds never count as qualifying assets.
A rental loan on this path is a business-purpose loan. Under the federal rule on business-purpose credit, credit to acquire non-owner-occupied rental property is treated as business purpose. Not every investment property qualifies for that exemption, though. Compliance training sources point out that occupancy and unit-count tests matter. In practice, the lender sorts that out in underwriting.
Two other loan types sit next to this one. Business-purpose rental financing from select lenders qualifies primarily on property-level rental income covering the payment, subject to lender guidelines. That is a separate program with its own rules. The bank statement program is built for borrowers who document income with deposits. A seller who no longer has a business has no deposits to show, so it rarely fits right after a sale.
If you want a deeper look at how someone with a different source of cash approaches this, Lendmire’s piece How to Qualify on Home-Sale Proceeds Using an Asset Depletion Mortgage walks through the same mechanics. The program figures do not change by state.
What a Broker Sees on These Files
Across the wholesale network Lendmire works with, sale-of-business files tend to fail on sourcing, not on size. The borrower has plenty of money. The paper trail is what is missing. A wire that came in, was split across three accounts and was partly moved to a company account is hard to explain after the fact.
The cleanest files keep the proceeds in one personal account until the lender has reviewed them. They also pick the path first. A seller who needs the whole loan covered by assets chooses the qualifier path and plans for the 60-day seasoning. A seller who wants to move sooner on statements, or who is buying a rental, leans toward depletion.
Most programs in the network want the minimum-assets and leverage rules checked before a house is chosen. The strictest overlays tighten leverage or ask for more documentation on business-owned funds. Choosing a property after you know your path costs nothing. Choosing before can mean redoing the search.
Where Do the Edge Cases Break Down?
You stay on as a consultant. Documented consulting income can supplement the depletion calculation, up to a 45% debt-to-income ratio. When it supplements, the minimum-assets rule is waived.
You keep a minority stake. The stake itself is not published as an eligible asset. Distributions you actually receive can be documented as income under the applicable program, subject to lender guidelines.
Your money is mostly in retirement accounts. The qualifier path treats those as 90% under 59½ and 100% after. The depletion path counts them at 70% at any age. The same account can look very different on the two paths.
Your assets are in real estate. Equity counts at 60% on the depletion path. That is a haircut, but it is a usable one.
Your money is in a foreign account. Foreign funds are not eligible on the depletion path.
Who May Not Qualify, and Common Mistakes
Some sellers will not fit, and an honest broker says so. If your assets are modest, the depletion minimums will not be met. If your credit is under the program floor, assets will not fix it. Multiple bankruptcies are not eligible.
Common mistakes:
- Treating the sale price as cash when part of it is in escrow.
- Moving proceeds between accounts so often the trail is lost.
- Applying before the proceeds have landed.
- Counting the same dollars as both down payment and savings.
- Assuming “no income paperwork” means no paperwork. The assets are documented on both paths.
- Skipping the path decision and picking a house first.
One note on disclosures. These loans are consumer mortgages when the property is your home, so standard consumer disclosures apply. Lendmire arranges them as a broker through select lenders, and program details are verified for each file. Nothing here is a commitment to lend.
Frequently Asked Questions
Can sale proceeds that are still in escrow count as assets?
No, not until they are paid out to you. Escrow accounts are on the not-eligible list on the asset depletion path, and holdbacks and earn-outs are not cash in your account. Once the money arrives and is documented with statements, it can count at the percentage for its account type, subject to underwriting.
Do I need two months of statements even if I just sold my business?
It depends on the path. The asset qualifier path asks for 60 days of seasoning and two months of statements for each qualifying account. The asset depletion path excuses sale-of-business funds from seasoning, though it still wants statements at least 120 days old plus one within 45 days. The lender reviews the source of the funds either way.
Can I use this to buy a rental instead of a home?
Yes, on the asset depletion path only. Investment property is typically financed up to 65% on a purchase or rate-and-term refinance and 60% on a cash-out, through select programs. The loan is business-purpose, and underwriting reviews the assets and the property.
How much do retirement accounts count?
On the qualifier path, a 401(k) or IRA counts at 90% if you are under 59½ and 100% at 59½ or older. On the depletion path, retirement accounts count at 70% at any age. Those figures are program ceilings, not offers, and the lender’s own calculation governs.
What if I only have a few hundred thousand dollars in liquid assets?
The depletion path requires qualified assets of at least the lesser of $1,000,000 or 1.25 times the loan balance, and never below $250,000 liquid when assets are your only income source. If you also document income, such as consulting pay, the minimum-assets rule is waived and the asset-derived income supplements it. Smaller balances are a conversation for underwriting rather than a promise either way.
Key Terms Defined
Asset qualifier: A path where eligible assets, after credit percentages, must equal or exceed the entire loan amount, with no income documented.
Asset depletion: A path that divides usable assets by 60 months to create a monthly qualifying income, which then runs through the debt-to-income test.
Seasoning: The time funds must sit in an account before a lender counts them.
Haircut: The share of an asset’s balance that a lender does not count, such as counting securities at 80%.
Debt-to-income ratio: Your monthly debts divided by your monthly income, used to judge whether you can carry a payment.
Earn-out: Part of a sale price paid later, based on how the business performs, which is not cash until it is paid.
Next Steps
Start with the paper. Gather the settlement statement and the account statements, then decide whether the whole loan can be covered by assets or whether assets need to become income. 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.
A seller who plans the path, the paper trail and the property in that order tends to have the smoothest file.
Lendmire’s asset-based mortgage in Virginia page presents the program for Virginia borrowers.
About Lendmire
Lendmire (NMLS# 2371349) is a mortgage broker licensed for consumer lending in 16 states. Bank statement, P&L-only, 1099-only and asset-based mortgages for self-employed and high-net-worth borrowers are arranged through wholesale lenders on primary residences, second homes and investment properties; every file is underwritten by the lender under its program guidelines. Scotsman Guide named Lendmire a Top Mortgage Workplace in both 2025 and 2026.
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References
1. CFPB Regulation Z, Section 1026.3
2. Compliance Alliance, Regulation Z and Investment Properties
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 You Qualify for a Mortgage If Your Income Is in a Foreign Currency? · Can a Virginia Retiree Get a Mortgage on Savings and Investments Alone? · Can a Virginia Buyer Get a Mortgage After Paying Cash for a House With No Income?
Guides: Asset-Based Mortgage in Virginia
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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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.