The Quick Read: You can qualify without a job when the inheritance sits in eligible accounts, because the lender reviews your assets instead of a paycheck: either the assets cover the whole loan outright, or they convert into monthly qualifying income, and the file is still fully underwritten on credit, property and statements. Lendmire arranges these loans as a broker through select lenders in its wholesale network, and every figure below is subject to underwriting.
- Asset qualifier path: eligible assets must equal or exceed the entire loan, and no employment or income is documented.
- Asset depletion path: eligible assets, divided by 60 months, become qualifying income that runs through the debt-to-income test.
- You are on one path at a time. The two never blend.
- No traditional personal-income documentation, pay stubs or employment verification. Credit, property and account statements are still reviewed.
- Title comes first. Heirs borrow against what they legally own, not what they expect to own.
Why an Inheritance Is an Asset, Not Income
An inheritance is a pile of assets. It is not a salary. A lender looking at your tax return sees little or no earned income, even if your balance sheet is large.
That mismatch is the exact problem asset-based qualification solves. The reader who fits is cash-heavy and income-light: a retiree, someone between jobs, a household living on a portfolio, or an heir whose documented income stops where the estate begins.
Here is how the review works. Instead of asking what you earn, the lender asks what you hold, where it sits, how long it has been there, and what percentage of it counts. Then the lender checks credit and the property like any other loan. Less income paperwork never means no paperwork.
Lendmire’s asset-based mortgage programs are consumer mortgages on a principal residence or second home, with investment property available on the depletion path only. Consumer mortgage lending runs through select lenders in 16 states, Virginia among them.
Which Path Fits an Heir?
Pick the path by the size and type of your inheritance. If your eligible assets can cover the whole loan, the qualifier path is the cleaner fit. If they cannot, or if most of the value is in securities, the depletion path turns them into income.
| Factor | Asset qualifier path | Asset depletion path |
|---|---|---|
| How assets are used | Must cover the whole loan | Become monthly income |
| Income documented | None | Derived from assets |
| Purchase leverage | Up to 80% | Up to 80% (residence) |
| Refinance leverage | Up to 75% | Up to 80% rate-and-term |
| Cash-out | Set by lender, not published | Up to 60% |
| Loan amounts | Up to $4,000,000 | $125,000 to $3,500,000 |
| Credit | 600 minimum score | The lender’s matrix |
The leverage figures for the qualifier path apply to a principal residence or second home. On the depletion path, a principal residence or second home reaches 80% on a purchase or rate-and-term refinance and 60% on a cash-out. An investment property on the depletion path tops out at 65% on a purchase or rate-and-term refinance and 60% on a cash-out. Those are ceilings, not offers, and they are subject to underwriting.
Two details trip people up. Cash-out proceeds never count as qualifying assets on the depletion path. And a first-time investor on the depletion path needs a 700 score.
Which Inherited Assets Count?
What counts depends on the path, so the two lists stay separate.
Asset qualifier path: share of the balance that counts.
| Asset | Credit |
|---|---|
| Brokerage accounts | 100% |
| Certificates of deposit | 100% |
| Money market | 100% |
| Savings | 100% |
| 401(k) or IRA, under 59½ | 90% |
| 401(k) or IRA, 59½ or older | 100% |
Accounts combine. Across the wholesale network, this is the percentage table heirs are most surprised by, because inherited brokerage money counts in full.
Asset depletion path: share of the balance that counts.
| Asset | Credit |
|---|---|
| Cash accounts | 100% |
| Certificates of deposit | 100% |
| Securities | 80% |
| Private stock | 75% |
| Retirement accounts (any age) | 70% |
| Real-estate equity | 60% |
Some assets are not eligible on the depletion path at all: 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.
Heirs often hold other things. Cryptocurrency, precious metals, collectibles, pledged or borrowed funds, and business accounts beyond your ownership share 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. Never plan around them counting at a percentage.
Inherited retirement accounts deserve a separate conversation. The published credit percentages are for standard retirement balances, and how a lender treats an inherited account is reviewed case by case. Tax treatment varies; consult a qualified professional.
Worked Examples
The lender’s own calculation governs every file. These examples show the shape of the math.
Qualifier path. Picture an heir seeking an $800,000 loan who holds three accounts:
- $330,000 in brokerage accounts, counted at 100%, is $330,000.
- $300,000 in a 401(k), under age 59½, counted at 90%, is $270,000.
- $200,000 in savings, counted at 100%, is $200,000.
Together that is $800,000 of usable assets. It equals the loan, so the file is reviewed on assets alone, subject to underwriting. No income is documented.
Depletion path. Now say an heir holds $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.
- Usable assets total $1,500,000.
- Divide by 60 months and you get $25,000 of monthly qualifying income.
That income must then carry the housing payment and other debts through the debt-to-income test. If the income does not clear that test, this path does not work for that loan size.
From Estate to Application, Step by Step
The sequence matters more than any single document. Most stalled files stall at step one or two.
1. Settle title and distribution. A lender can place a lien only on property you legally own, and funds must actually reach your account.
2. Move funds into your own regulated account. Inherited cash is documented through statements plus estate or distribution paperwork.
3. Let the money season. The qualifier path wants 60 days of seasoning and two months of statements for each qualifying account.
4. Choose your path. Total your eligible assets at the percentages above, then compare the result to the loan you want.
5. Document and underwrite. Expect identity, a credit authorization, statements, and property and insurance items.
On the depletion path, the statement rules differ. Statements must be at least 120 days old at application, plus the most recent statement within 45 days. Sale-of-business, inheritance and legal-settlement funds are excused from that seasoning. That carve-out is why the depletion path often suits a recent inheritance.
What to Document
Plan on a file built from different documents, not fewer documents:
- Government ID and a credit authorization.
- Statements for every qualifying account, with the required number of months for your path.
- Estate or distribution paperwork showing where inherited funds came from.
- Written explanations for any large deposit.
- Property documents, title, and homeowner’s insurance.
- If the home will be held in an entity, the entity paperwork, subject to lender program eligibility.
Skip the temptation to shuffle money between accounts before you apply. A clean, traceable line from the estate to your account is worth more than a tidy-looking balance.
Your Situation: Which Version of “No Job” Are You?
“No job” is not one case. The lender sees several.
Unemployed or between jobs
You can qualify on assets alone. The qualifier path asks for no employment at all. The depletion path needs at least $250,000 liquid when assets are the only income source.
Retired
Retirement is the most common fit. Age 59½ or older also lifts a 401(k) or IRA to 100% credit on the qualifier path.
One earner in the household
If one spouse has documented income, asset income can supplement it up to a 45% debt-to-income ratio on the depletion path. When assets supplement income, the minimum-assets rule is waived.
Neither spouse works
This is the pure asset case. Both names generally need to qualify together on the same path, subject to underwriting.
You inherited a house, not cash
Inherited real estate is a different animal. If probate is unfinished and no heir or entity is on title, a standard refinance does not fit, because you cannot refinance what you do not own. With several heirs, every co-owner usually must sign. A sibling buyout means the buying heir qualifies alone.
Inherited Rentals Are a Different Loan
If you plan to rent the inherited house to a tenant, the file changes shape. Credit extended to buy, improve or maintain non-owner-occupied rental property is treated as business purpose under Regulation Z’s list of exempt transactions. That exemption has a limit: if you expect to occupy the property more than 14 days in the coming year, it cannot be treated as non-owner-occupied.
The practical point is the loan’s purpose decides the treatment, not the label “investment property.” A cash-out to pay personal bills is a consumer-purpose loan even when it is secured by a rental.
On the depletion path, investment property carries lower leverage (65% on a purchase or rate-and-term refinance, 60% on a cash-out). For a pure rental that you want underwritten on the property’s rent, business-purpose DSCR financing is the separate program built for it. Lendmire’s piece How to Qualify for an Asset Depletion Mortgage Without Selling Investments covers the income-conversion side in more depth.
Alternatives and Trade-Offs
Asset-based qualification is not always the right tool. Weigh these first:
- Pay cash. If the inheritance covers the home, no lender is involved. You give up liquidity.
- Larger down payment on a traditional loan. This helps leverage, but traditional lenders still ask about income.
- Add a co-borrower with documented income. This shifts the file back toward standard income review.
- Wait. If title is unsettled or funds are not distributed, waiting beats a half-ready application.
This route is not for you if your eligible assets fall short of the thresholds above, or if most of your wealth is in an asset class that is not published as eligible. It also fits poorly if you can only borrow against an estate that has not closed.
Mistakes That Stall Files
- Spending before applying. Every dollar spent shrinks the usable balance.
- Moving funds around. Transfers between accounts create a paper trail that needs explaining.
- Unsourced deposits. A large deposit with no estate paperwork behind it draws questions.
- Assuming title passes at death. It does not.
- Counting ineligible assets. Crypto, collectibles and pledged funds do not count at a percentage.
- Treating “no employment documents” as “no documents.” Statements are required on both paths.
Virginia Notes: Title Before Financing
Virginia law decides who inherits when there is no will. Under the Virginia State Bar’s probate overview, an executor is vested with authority only after qualifying with the Clerk of the Circuit Court. Some property skips probate, such as jointly owned property with survivorship rights, trust-titled property, and transfer-on-death deeds. According to one Virginia estate law firm, a recorded will can serve as the instrument that updates the property records.
Probate and title mechanics are state-specific, so confirm yours with a probate attorney. The loan program figures do not change by state; only the legal path to ownership does.
Key Terms Defined
Asset qualifier path: the route where eligible assets, after the credit percentages, cover the entire loan and no income is documented.
Asset depletion path: the route where eligible assets are divided by 60 months to create monthly qualifying income.
Seasoning: the length of time funds must sit in your account before a lender counts them.
Debt-to-income ratio: your monthly debts divided by your monthly income, including the new housing payment.
Probate: the court process that confirms a will and gives an executor authority over an estate.
Intestacy: the rules that decide who inherits when there is no valid will.
Frequently Asked Questions
Is an inheritance income?
No. It is an asset. A lender uses it either to cover the loan outright or to calculate qualifying income by dividing usable assets by 60 months on the depletion path.
Do I have to sell my inherited investments?
Not necessarily. Brokerage accounts count at 100% on the qualifier path and securities at 80% on the depletion path, so assets can stay invested. Selling is your choice, not a requirement of either path.
Does a recent inheritance deposit need explaining?
Yes, and estate paperwork is the explanation. On the qualifier path, funds still need 60 days of seasoning and two months of statements. On the depletion path, inheritance funds are excused from the 120-day seasoning.
Can both spouses be unemployed and still qualify?
Yes, if the assets meet the path’s requirements. The qualifier path asks for no employment. On the depletion path, assets must be at least the lesser of $1,000,000 or 1.25 times the loan, and never below $250,000 liquid, subject to underwriting.
Does credit still matter?
Yes. The qualifier path has a 600 minimum score. The depletion path follows the lender’s matrix, and housing history is reviewed on both. Approval is never assured.
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’s asset-based mortgage in Virginia page presents the program for Virginia borrowers.
About Lendmire
Lendmire (NMLS# 2371349) is a mortgage brokerage serving self-employed and high-net-worth borrowers in 16 states. Bank statement, P&L-only, 1099-only and asset-based mortgages are arranged through wholesale lending channels; Lendmire brokers the financing and the lender underwrites each application. Scotsman Guide named Lendmire a Top Mortgage Workplace in both 2025 and 2026.
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References
1. CFPB Regulation Z §1026.3, Exempt transactions
2. Virginia State Bar, Probate in Virginia
3. Heritage Law Group, Virginia probate and inheriting real estate
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 Document a Virginia Asset Qualifier Mortgage Without an Employer · How Much Does a Retiring Physician 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 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.