The Quick Read: Yes, usually, because sale proceeds count as assets rather than income, and a lender can qualify the loan on those assets. The path depends on where the money sits and whether it can cover the whole loan or must be converted into monthly income, subject to underwriting. Every file is fully underwritten, and the assets are documented with statements. The program asks for no traditional personal-income documentation, pay stubs or employment verification.
- Assets cover the loan: on the asset qualifier path, eligible assets must equal or exceed the entire loan, and no income is documented.
- Assets become income: on the asset depletion path, usable assets are divided by 60 months to produce monthly qualifying income.
- Cash is what counts: proceeds must be in your name, in an eligible account, with no earn-out or seller note attached.
- Credit still matters: the qualifier path has a 600 minimum score, and the depletion path follows the lender’s matrix.
Key Terms Defined
Several terms come up in every conversation about this loan, so here they are once.
- Asset qualifier path: the lender counts your eligible assets against the whole loan amount and documents no income.
- Asset depletion path: the lender divides your usable assets over 60 months to create a monthly income figure, then tests it against your debts.
- Seasoning: the time money must sit in an account, shown by statements, before the lender counts it.
- Haircut: the share of an account’s balance that does not count, such as 20% off securities because their value moves.
LTV means loan-to-value, the loan amount as a percentage of the home’s value. Earn-out means part of the sale price paid later, based on how the business performs.
Why Does a Business Sale Break Normal Income Qualifying?
A sale leaves you with a large balance and no paycheck. That is the opposite of what a standard mortgage file expects.
Conventional underwriting wants a work history and recent income. You just sold the thing that produced the income. The final tax year may also show a one-time event that does not look like steady earnings.
Lenders in this niche solve it by changing what they read. They look at what you hold today, not what you earned last year. A seller sitting on cash, brokerage accounts and savings is a strong borrower on paper, even with zero current salary.
One more point matters here. Your proceeds are an asset, not income. A lender will not average a one-time sale into monthly income. It will count the money you kept, which is why the account it sits in matters so much.
Which Path Fits a Business Seller?
You are qualified on one of two paths, one at a time. The right one depends on whether your assets can cover the loan outright or only support it as income.
| Path | What the lender reads | Best fit |
|---|---|---|
| Asset qualifier | Eligible assets vs. full loan | Large balances, modest loan |
| Asset depletion | Assets ÷ 60 months as income | Big portfolio, monthly income needed |
On the qualifier path, you can borrow up to 80% LTV on a purchase and 75% on a refinance, for a principal residence or second home. Loans reach $4,000,000, subject to underwriting. Final terms depend on the lender’s guidelines, the property type, and the borrower’s complete credit picture.
On the depletion path, a principal residence or second home can go up to 80% LTV on a purchase or rate-and-term refinance and 60% on a cash-out refinance. An investment property is limited to 65% on a purchase or rate-and-term refinance and 60% on a cash-out. Loan amounts run from $125,000 to $3,500,000. Cash-out proceeds never count as qualifying assets. Each figure is subject to lender guidelines and a complete review of property type, leverage, and credit.
Across the wholesale network Lendmire works with, sellers who have a big portfolio but want a modest mortgage usually land on the qualifier path. Sellers who want a larger loan, or whose assets sit mostly in securities, usually need the depletion path. The qualifier path asks less of the file. The depletion path asks more but reaches further.
Lendmire’s asset-based mortgage program covers both paths in more detail.
How Do Sale Proceeds Count as Assets?
Each account type counts at a set percentage, and the percentages differ by path. Do not mix the two sets of percentages.
Asset qualifier path. Brokerage accounts, certificates of deposit, money market and savings count at 100%. A 401(k) or IRA counts at 90% under age 59½ and 100% at 59½ or older. Accounts combine.
Here is an illustration, and the lender’s own calculation governs. Say you want an $800,000 loan. You hold $330,000 in brokerage accounts (100% = $330,000), $300,000 in a 401(k) while under 59½ (90% = $270,000) and $200,000 in savings (100% = $200,000). That counts $800,000 of usable assets, so the file is reviewed on assets alone, subject to underwriting.
Asset depletion path. Cash and certificates of deposit count at 100%, securities at 80% and private stock at 75%. Retirement accounts count at 70% at any age, and real-estate equity at 60%.
Take $1,500,000 in securities (80% = $1,200,000) plus $300,000 in cash (100% = $300,000). That is $1,500,000 of usable assets. Divided by 60 months, it produces $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.
Depletion has two minimums. Qualified assets must be at least the lesser of $1,000,000 or 1.25 times the loan balance. When assets are your only income source, at least $250,000 must be liquid.
If you also earn consulting pay or earn-out income after the sale, the asset-derived income can supplement it up to a 45% debt-to-income ratio. In that case, the minimum-assets rule is waived.
Which Proceeds Count, and Which Don’t?
Only money you fully own and can reach counts. A sale price on paper does not count, and neither does anything still tied to the buyer.
| Type of proceeds | Counts? | Why |
|---|---|---|
| Cash in your personal account | Yes | Eligible at 100% on both paths |
| Brokerage securities bought with proceeds | Yes | 100% qualifier, 80% depletion |
| Escrow holdback | No | Escrow accounts are not eligible |
| Earn-out or seller note | Treat as no | Not immediate cash |
| Funds in the business account | Generally no | Only your ownership share is considered |
| Crypto, metals, collectibles | Not as such | Convert to seasoned cash first |
Funds you pledged or borrowed do not count either. If you hold crypto or precious metals, the documented route is to convert them to a cash balance in a regulated account. The lender then reviews where the money came from.
For contrast, take the agency world. Freddie Mac’s Guide says business-sale proceeds must be solely owned and immediately accessible in their entirety. It also says the sale must leave no retained business assets, existing debt, ownership interest or seller-held notes. That is the agency’s rule, not this program’s. It is still a useful picture of what any underwriter wants to see: clean, reachable cash.
If your deal includes an earn-out or seller note, expect the lender to leave that piece out. The installments can still help you later if they are paid into your account and seasoned.
What Does the Sequence Look Like?
The order matters more than the calendar. Each step sets up the next.
1. The sale closes. You receive a settlement statement showing your net proceeds.
2. Funds land in your name. Move them out of any business or entity account into a personal account in your name.
3. Statements build. On the qualifier path, funds need 60 days of seasoning and two months of statements for each qualifying account.
4. Application. On the depletion path, statements must be at least 120 days old at application, plus a statement dated within 45 days. Sale-of-business funds are excused from that 120-day seasoning.
5. Underwriting. The lender reviews credit, assets, the property and the source of funds.
The seasoning rules differ by path, so the path you choose affects when you can apply. A seller who plans ahead can start the clock before the purchase contract is signed.
What Documents Do You Need?
You need documents for the assets, not for income. This is not a loan without paperwork.
- The purchase agreement and final settlement statement for the sale
- Proof the proceeds were transferred into your personal account
- The required months of statements for each qualifying account
- Entity or ownership documents if the funds passed through a business account
- A written explanation of any large deposit
Lenders ask about large deposits as a reasonableness check. A business sale is a standard, acceptable answer when the paperwork backs it up. Gaps are what slow a file, so keep your records clean.
Credit is reviewed too. The qualifier path has a 600 minimum score, and the depletion path follows the lender’s score and loan-amount matrix. A first-time investor on the depletion path needs a 700. Housing history is 0x30x12, and one 30-day late in the last twelve months is considered case by case. Multiple bankruptcies are not eligible, and a housing event needs 4 years of seasoning on the depletion path.
What Changes for a Montana Borrower?
Not the program. Leverage, seasoning and asset credit are the same in Montana as anywhere the program is offered.
Lendmire is licensed for consumer mortgage lending in 16 states, Montana among them. The others are Alabama, California, Colorado, Florida, Georgia, Indiana, Michigan, New Mexico, North Carolina, Ohio, Pennsylvania, Tennessee, Texas, Virginia and Washington. If you plan to sell in Montana and buy elsewhere, the property needs to be in one of those states.
Local context shapes your purchase, such as price levels and how you will use the home. It does not change what the lender counts. A seller buying a primary residence or a second home gets the same leverage ceilings.
Can You Use the Proceeds to Buy a Rental?
Yes, with a different tool for different goals. 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.
If you want a pure rental purchase, DSCR financing usually fits better than asset-based. That loan is reviewed primarily on property-level rental income covering the payment, subject to lender guidelines, and your sale proceeds fund the down payment and reserves. If you instead want to qualify on your assets for an investment property, the depletion path allows it at 65% LTV on a purchase and 60% on a cash-out, subject to underwriting.
Money used for the down payment cannot also count as reserves. Plan the split before you move funds.
Mistakes to Avoid
Treating the sale price as your coverage figure. The usable balance is what remains after debts paid at closing, holdbacks and taxes owed. IRS Topic no. 409 explains how gain is figured, but tax treatment varies, so consult a qualified professional.
Leaving funds in the business account. Move them into your own name early so they season.
Counting an earn-out. Treat it as unavailable until it is in your account.
Assuming one path fits everything. A $4,000,000 qualifier loan and a $3,500,000 depletion loan are different files with different tests.
Using cash-out proceeds as qualifying assets. On the depletion path, they never count.
Assuming the documentation is light. Fewer income documents is not the same as no documents. Expect statements and a full review.
When Won’t This Work?
It will not work if your cash is mostly locked up. A buyer note, long earn-out or a business account you only partly own leaves you with too little usable balance.
It also will not work if the usable assets fall short of the path’s minimums. Depletion needs at least the lesser of $1,000,000 or 1.25 times the loan, and never less than $250,000 liquid as your only income source. And it will not work if credit or housing history is out of range.
In those cases, other routes exist. Sellers who still document income with deposits may look at a bank statement program. Others may wait until installments are paid and seasoned.
Frequently Asked Questions
Do I need a job to qualify after selling my business?
No. Neither path asks for employment or income documentation. The qualifier path rests on assets alone, and the depletion path converts assets into income. The lender still reviews credit, the property and your statements, subject to underwriting.
How soon after the sale can I apply?
It depends on the path. The qualifier path wants 60 days of seasoning and two months of statements per account. The depletion path wants statements at least 120 days old plus one within 45 days, though sale-of-business funds are excused from the 120-day rule.
Does an earn-out or seller note count?
Treat it as unavailable until the money reaches your account. Installments are not immediate cash, and escrow accounts are not eligible on the depletion path. Once paid and seasoned, the cash counts like any other.
Is this a loan without documentation?
No. Every file is fully underwritten, and your assets are documented with statements. What you skip is traditional personal-income documentation, pay stubs and employment verification.
Can I use my retirement accounts?
Yes, at a reduced percentage. On the qualifier path they count at 90% under age 59½ and 100% after. On the depletion path they count at 70% at any age.
Next Steps
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. Reach the team at 828-256-2183 or request a quote. All figures here are program ceilings and floors, not offers, and they are subject to lender guidelines and underwriting. This is not a commitment to lend.
Lendmire’s asset-based mortgage in Montana page presents the program for Montana 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. Freddie Mac Guide, Section 5307.1
2. IRS Topic no. 409, Capital Gains and Losses
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 an Inheritance Qualify You for a California Mortgage Before It Is Seasoned? · Can a Pennsylvania Business Seller Qualify for a Mortgage on the Sale Proceeds? · How to Qualify for a Washington Mortgage on an Inheritance Without a Job
Guides: Asset-Based Mortgage in Montana
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.