The Quick Read: Yes, in many cases, because on the asset depletion path of an asset-based mortgage, inheritance funds are excused from the seasoning requirement. The condition is that the money has actually been distributed to you and you can document where it came from. Three things decide the outcome:
- Distribution: money still held by an estate cannot be counted as your asset.
- Paper trail: a distribution letter, bank statements and a short explanation letter tie the deposit to the estate.
- Path: the asset qualifier path still wants 60 days of seasoning, so the path you choose matters.
Everything below is subject to underwriting through select programs. It is not a commitment to lend.
What Does “Seasoned” Actually Mean?
Seasoning is the time money has sat in your account before a lender counts it. The point is to prove the funds are yours and not a borrowed down payment. A deposit that appeared last week raises a fair question, so the lender asks for proof.
There are two kinds of seasoning, and people mix them up. Fund seasoning is about cash and investments. Property seasoning is about how long you have owned a house before you refinance it. Some lenders waive the second for inherited property. This article is about the first.
Lenders set their own seasoning rules. Federal rules do not set a number of days. The CFPB’s ability-to-repay compliance guide lists the factors a lender must consider, and assets are among them. Day counts come from program guidelines instead.
Does Inheritance Money Count Before It Seasons?
It depends on the path, but often yes. On the asset depletion path, inheritance funds are excused from seasoning. On the asset qualifier path, expect the standard 60 days and two months of statements for each account.
Across Lendmire’s wholesale network, the two paths work differently:
| Factor | Asset qualifier path | Asset depletion path |
|---|---|---|
| How assets are used | Cover the whole loan | Become monthly income |
| Seasoning | 60 days, two months of statements | Statements 120 days old, plus one within 45 days |
| Inheritance | Standard seasoning applies | Excused from seasoning |
| Credit | 600 minimum | The lender’s matrix |
On the depletion path, “excused” does not mean “undocumented.” The assets are still documented with statements, and the lender still reviews where the money came from. These are full underwriting files. They simply use no traditional personal-income documentation, pay stubs or employment verification.
Why does the rule exist at all? Lenders want to rule out a hidden loan. An inheritance has a clear, third-party source, such as a court order or an executor’s letter. That makes it easier to prove than a random deposit.
A broker note from daily file work: most inheritance files stall on paperwork, not on the seasoning clock. A deposit with no explanation draws questions. The same deposit with a distribution letter attached usually does not.
Does the Money Have to Be Distributed First?
Yes. Funds still held by an estate are not yours yet, so they do not count as your assets. Underwriters look at money you control, not money you expect.
This is where Ohio matters. Probate is the court process that settles an estate, and it sets the real calendar. Nolo’s Ohio probate overview says most straightforward cases wrap up within about nine months of the executor’s appointment. Creditors get six months to file claims, so a full probate administration generally lasts at least that long. A simplified release from administration is a separate, shorter track that skips that full process.
A law firm’s Ohio explainer, Rhodium Law, cites Ohio Revised Code 2117.06 for the six-month creditor window. It adds that executors typically wait for that window to close before final distributions.
For you, that means the practical delay is often probate, not bank seasoning. You can begin a mortgage application before the money arrives, but the funds have to be in your account to count. Other states run on different clocks, so treat Ohio as an example of how probate timing works.
What Paperwork Replaces the Waiting Period?
A clean source package replaces time. Gather a distribution letter, the deposit on your statements and a short letter of explanation, then keep the money in one account.
A typical package includes:
- The will or court order, where relevant.
- A distribution letter or closing statement from the executor, attorney or estate bank.
- Bank or brokerage statements showing the deposit.
- A letter of explanation tying the deposit to the estate.
- Statements for each account you want counted, at the ages the program requires.
Move the money into an account in your own name. Keep the transfer trail short. Moving funds across several accounts creates extra questions, and each one needs an answer.
Is a letter alone enough? Not by itself. Lenders need records tied to you personally, from a reliable third party. A law-firm review of the CFPB’s non-QM position notes that a lender must verify the assets it relies on with reasonably reliable third-party records. An estate distribution letter fits that description.
Which Path Fits an Inheritance?
Choose the asset qualifier path when your eligible assets cover the whole loan. Choose the asset depletion path when your assets should become monthly income. You are qualified on one path at a time.
Both fall under Lendmire’s asset-based mortgage programs, placed through select lenders, subject to underwriting.
Asset qualifier path. Eligible assets, after credit percentages, must equal or exceed the entire loan. No employment or income is documented. Leverage runs up to 80% on a purchase and 75% on a refinance, on a principal residence or second home. Loans go up to $4,000,000.
Credit percentages: brokerage, CDs, money market and savings count at 100%. Retirement accounts count at 90% under age 59½ and 100% at 59½ or older. As an illustration, a borrower with $330,000 in brokerage accounts (100% = $330,000), $300,000 in a 401(k) under 59½ (90% = $270,000) and $200,000 in savings (100% = $200,000) counts $800,000 of usable assets. That covers an $800,000 loan on assets alone. The lender’s own calculation governs.
Asset depletion path. Usable assets are divided by 60 months to create qualifying income, which then runs through the debt-to-income test. Cash and CDs count at 100%, securities at 80%, private stock at 75%, retirement accounts at 70% 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 usable, divided by 60 months, which gives $25,000 of monthly qualifying income. That income must carry the housing payment and other debts.
Leverage on this path is up to 80% on a purchase or rate-and-term refinance and 60% on a cash-out refinance for a principal residence or second home. Investment property runs up to 65% and 60%. Loans run from $125,000 to $3,500,000. Minimum qualified assets are the lesser of $1,000,000 or 1.25 times the loan balance, and never below $250,000 liquid when assets are the only income source.
Credit follows the lender’s matrix on the depletion path. A first-time investor on that path needs a 700 score. These are ceilings and floors, not offers, and approval depends on underwriting.
What About Inherited Investments and Retirement Accounts?
They can count, but only at a credited share of the balance. A haircut is the share of a balance a lender will credit. An inherited brokerage account is credited at 100% on the qualifier path and 80% for securities on the depletion path. Retirement accounts are credited at 90% or 100% on the qualifier path depending on age, and 70% on the depletion path.
Some assets are not published as eligible on either path: cryptocurrency, precious metals, collectibles and borrowed or pledged funds. The documented route is converting them to a seasoned cash balance in a regulated account, with the source reviewed by the lender. Cash on hand, foreign funds and escrow accounts are also not eligible on the depletion path.
Inherited cash from a sold house works like any other distribution. The sale proceeds need a closing statement and a deposit trail. Keep the two buckets, down payment and any leftover reserves, clearly sized.
Inherited Cash vs. an Inherited House
An inherited house is a different question from inherited money. If you hold a house in open probate without a deed, you generally cannot pledge it yet.
Once you do own it, Bankrate reports that heirs who inherit a house with a mortgage can sell it or keep it and assume the mortgage. Buying out co-heirs is its own scenario, usually starting with an appraisal and agreement on value. None of that is the same as using inheritance cash to buy a new home.
Remember the two seasoning ideas. A refinance exception for inherited property is property seasoning. It does not tell you whether your cash is seasoned.
A Sample Timeline
Picture a retired heir in Ohio whose parent’s estate has just filed its final account. Here is a hypothetical sequence:
1. Before contract: get the distribution letter and confirm the funds have been paid out.
2. Deposit: move the money into one account in your name and keep the statement.
3. Choose the path: if the money covers the loan, the qualifier path fits; if it should become income, the depletion path fits.
4. Package: assemble the estate documents, statements and a letter of explanation.
5. Underwriting: the lender ties the source to the use and reviews credit and the property.
Funds used for the down payment and closing costs cannot also count as assets left over after closing. Size each bucket separately before you make an offer.
Mistakes That Stall a File
- Counting money that is still in probate.
- Spreading the deposit across several accounts.
- Spending the funds before statements are pulled.
- Cashing out a retirement account without checking account rules.
- Sending stale statements.
- Treating inherited money like a gift, which has different documentation.
- Assuming a large balance guarantees approval. Credit, the property and title still have to pass.
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.
Key Terms Defined
Seasoning: the time funds have sat in your account before a lender counts them.
Probate: the court process that settles a deceased person’s estate.
Asset depletion: a method that divides usable assets by 60 months to create qualifying income.
Haircut: the share of an asset’s balance a lender will credit toward qualifying.
Letter of explanation: a short signed note explaining where a deposit came from.
Frequently Asked Questions
Can I use an inheritance right away?
On the asset depletion path, inheritance funds are excused from the seasoning period, provided they are distributed and documented. On the asset qualifier path, expect 60 days and two months of statements. Either way, underwriting reviews the source.
Does inheritance count as income?
It counts as an asset, not income. On the depletion path, usable assets are divided by 60 months to create qualifying income. On the qualifier path, no income is documented and the assets cover the loan.
Can I use an inheritance still in probate?
No. Money still held by the estate is not yours yet. Wait for the distribution, then document it. Ohio estates often take months, so check the timing before you write an offer.
Is a gift treated the same as an inheritance?
No. Gifts need donor documentation and are often restricted. A distributed inheritance is your own asset once documented.
Does an inherited retirement account count?
Yes, at a reduced share of the balance. It counts at 90% under age 59½ and 100% at 59½ or older on the qualifier path, and 70% on the depletion path, subject to underwriting.
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. Consumer mortgage lending is licensed in 16 states, including Ohio. Program details change, and every file is underwritten individually.
Lendmire’s asset-based mortgage in Ohio page presents the program for Ohio 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.
Investors who want the broader program framework can review how DSCR loans work.
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References
1. CFPB ATR/QM Small Entity Compliance Guide
2. Nolo – Ohio probate overview
3. Rhodium Law – How long does probate take in Ohio
4. CFS Review – CFPB non-QM ability-to-repay
5. Bankrate – inheriting a house
This article is part of Lendmire’s asset-based mortgage program — full qualification details, guidelines, and scenarios live on the program page.
Related reading: How to Refinance an Ohio Mortgage After Retiring With No W-2 Income · How Much Does a Startup Founder Need in Assets to Qualify for a Mortgage? · Can a Georgia Buyer Qualify for a Mortgage on IRA Assets Without Withdrawals?
Guides: Asset-Based Mortgage in Ohio
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.