The Quick Read: Yes, a Georgia business seller can often qualify for a mortgage on sale proceeds, because select asset-based programs read the money in your account as the basis for repayment instead of a paycheck, subject to underwriting. The money must be in your own name, sitting in an eligible account, and documented with statements.
- Path one, asset qualifier: eligible assets must cover the entire loan, and no employment or income is documented.
- Path two, asset depletion: usable assets are divided by 60 months into a monthly qualifying income, which runs through the debt-to-income test.
- Escrow, earnouts and seller notes generally do not count until the cash reaches your account.
- Georgia changes nothing about the program figures. Where the business was located is not what drives qualifying.
- You are qualified on one path at a time, never a blend of the two.
You sold the business. The check cleared. Now a big bank wants two years of traditional personal-income documentation and a pay stub. That is the mismatch this article is about: your balance sheet is strong, but the income column is empty. Across the wholesale network Lendmire works with, that is a documentation problem, not a credit-worthiness problem, and select programs are built for it.
Why a Sale Makes You Look Harder to Underwrite
A standard mortgage looks backward at income. After a sale, your income history ends and a lump sum begins. Those are two different questions, and a conventional file only asks the first.
Asset-based programs ask the second one: do you hold enough usable, documented money to repay this loan? Many sellers fit this profile, along with retirees, inheritance recipients and households living on a portfolio. These are consumer mortgages on a principal residence or second home. Lendmire is a broker that arranges them through select lenders, licensed for consumer lending in 16 states, Georgia among them.
The Two Ways Lenders Read Your Assets
Pick your path first. Everything else follows from it.
| Factor | Asset Qualifier | Asset Depletion |
|---|---|---|
| Core test | Assets cover the whole loan | Assets become monthly income |
| Income documented | None | Derived from assets |
| Debt-to-income test | No | Yes |
| Purchase leverage | Up to 80% | Up to 80% (65% on investment property) |
| Refinance leverage | Up to 75% | 80% rate-and-term, 60% cash-out |
| Loan amounts | Up to $4,000,000 | $125,000 to $3,500,000 |
All figures are ceilings, subject to underwriting, and apply through select programs.
On the asset qualifier path, eligible assets, after the credit percentages below, must equal or exceed the entire loan amount. Consider an $800,000 loan. Say you hold $330,000 in brokerage accounts (counted at 100%), $300,000 in a 401(k) while under age 59½ (counted at 90%, or $270,000) and $200,000 in savings (100%). That counts $800,000 of usable assets, so the file is reviewed on assets alone. The lender’s own calculation governs.
On the asset depletion path, usable assets divided by 60 months become qualifying income. Picture $1,500,000 in securities, counted at 80% for $1,200,000, plus $300,000 in cash at 100%. That is $1,500,000 usable, or $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.
Which one fits? If your balances are large relative to the loan, the qualifier path is simpler: no income math and no debt-to-income test. If the loan is large relative to your assets, depletion gives more room, but it counts less of each asset and adds the ratio test. Honestly, this one is a toss-up until you see your actual statements.
What Counts as an Asset, and What Does Not
Here is how each path credits what you hold.
| Asset | Qualifier Path | Depletion Path |
|---|---|---|
| Cash, savings, money market | 100% | 100% (cash accounts) |
| Certificates of deposit | 100% | 100% |
| Brokerage and securities | 100% | 80% |
| Retirement accounts | 90% under 59½, 100% after | 70% at any age |
| Private stock | Not published | 75% |
| Real-estate equity | Not published | 60% |
Accounts combine. Cash-out proceeds never count as qualifying assets on the depletion path.
Not eligible on the depletion path: escrow accounts, custodial accounts, deferred compensation, foreign funds, cash on hand, stock options, non-vested restricted stock units and funds from non-regulated financial companies. Cryptocurrency, precious metals, collectibles, pledged or borrowed funds, and business-account money 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.
Now the sale-specific items. An escrow holdback, an earnout and a seller note are all money you have not received. They are “not yet.” Large retail lenders and agency programs treat them the same way. As a contrast case only, Freddie Mac’s Guide § 5307.1 says business-sale proceeds must be solely owned, fully and immediately accessible, with no retained business assets, debt, ownership interest or seller-held notes. That is not this program’s rulebook, but the logic carries over: money counts when you control it.
Timing and Paperwork After the Sale
The paper trail matters more than the amount. Here is the sequence that tends to work.
1. Close the sale and wire the proceeds into your own personal account, not a business account you share or one still inside the selling entity.
2. Move eligible money into a regulated account if part of it sits in something the program does not credit.
3. Gather the sale documents: the settlement or closing statement, the purchase agreement, and statements showing where the money landed.
4. Write a plain letter of explanation for any large one-time deposit.
5. Apply once the statement history meets the program’s rules.
Seasoning is the waiting period an account must show before the lender counts the money. On the qualifier path, that means 60 days of seasoning and two months of statements for each qualifying account. On the depletion path, statements must be at least 120 days old at application, plus the most recent statement within 45 days. Sale-of-business funds are excused from that seasoning on the depletion path. That is a real advantage for sellers.
The assets are documented on both paths. The correct phrase is no traditional personal-income documentation, pay stubs or employment verification. It never means no documentation. Every file is fully underwritten.
A Georgia Seller, Start to Finish
Picture a seller in the Atlanta suburbs. The deal pays three ways: cash at closing, a holdback in escrow, and an earnout over the next few years. The seller is now a second-home purchaser looking at a property on the coast.
Only the cash at closing counts today. The escrow and earnout stay off the table until they land in an account. Say the cash is split across a savings account and a brokerage account. Both are credited at 100% on the qualifier path. If that total covers the entire loan amount, the seller is reviewed on assets alone, subject to underwriting.
If it falls short, the seller can test the depletion path. Brokerage balances drop to 80%, but the income math may carry the housing payment. The seller also has to hold at least the lesser of $1,000,000 or 1.25 times the loan balance in qualified assets. When depletion is the only income source, that floor is never below $250,000 liquid.
A mixed profile helps here. If the seller also draws consulting income from the buyer, asset-derived income can supplement documented income up to a 45% debt-to-income ratio. In that case, the minimum-assets rule is waived.
Double-Counting and Other Ways Files Stall
Most delays are paperwork, not eligibility. These are the usual culprits:
- Counting the same dollars twice. Money used for the down payment and closing costs cannot also be the money that qualifies you. Sequence your account movements before applying.
- Undocumented deposits. A large deposit with no closing statement behind it invites questions.
- Treating escrow as cash. Held funds do not count until released.
- Money still in the selling entity. The file needs ownership proof and transfer records.
- Assuming a no-income program means no review. Credit, housing history and the property are all reviewed.
On credit, the qualifier path has a 600 minimum score. The depletion path follows the lender’s matrix, and a first-time investor there needs 700. Housing history runs 0x30x12, with one 30-day late in the last twelve months considered case by case. Multiple bankruptcies are not eligible. Nothing here is a promise of approval.
Financing or Paying Cash?
You could simply pay cash. Some sellers should. Others prefer to keep liquidity for the next venture, a tax bill or a portfolio they would rather not liquidate. Financing preserves cash, though it adds a loan. If you plan to start another business soon, that flexibility has real value.
What About Buying a Rental?
Investment property is possible only on the depletion path, where the loan is business-purpose, at up to 65% on a purchase or rate-and-term refinance and 60% on cash-out. Business-purpose loans are reviewed differently from a standard owner-occupied mortgage. If you want to qualify on the property’s rent instead of your assets, that is a different product. A sale-proceeds file here is reviewed on your assets. Lendmire’s asset-based mortgage program covers both asset paths in more detail.
Questions to Ask Any Lender
- Which path will you use, and why?
- What percentage do you credit for each of my accounts?
- Do you count my retirement balance at full value or a haircut?
- How do you treat sale-of-business funds on seasoning?
- What is the minimum asset requirement for my loan size?
- Do you want a letter of explanation for the sale deposit?
Most programs in the network differ on these points. The strictest overlays want more history and more documentation, so ask before you assume.
Key Terms Defined
- Asset qualifier: a path where eligible assets must cover the whole loan and no income is documented.
- Asset depletion: a path that divides usable assets by 60 months into monthly qualifying income.
- Seasoning: the time money must sit in an account before a lender counts it.
- Debt-to-income (DTI): your monthly debts divided by your monthly income.
- Haircut: the share of an asset’s value a lender does not count.
Frequently Asked Questions
Do I have to wait a year after selling?
No. On the depletion path, sale-of-business funds are excused from the 120-day statement rule. On the qualifier path, expect 60 days of seasoning and two months of statements per account. Programs change and every file is underwritten individually.
Does sale money count as income?
Not directly. Proceeds are an asset. On the depletion path they are divided over 60 months to create a qualifying income. On the qualifier path no income is documented at all, since assets cover the loan.
Can an earnout count?
Generally not until it is paid and sitting in your account. Earnouts, escrow holdbacks and seller notes are money you have not yet received, so plan around the cash you hold today.
Is this a no-doc loan?
No. You skip traditional personal-income documentation, pay stubs and employment verification, but the assets are documented with statements and the file is fully underwritten. Credit is reviewed too.
Can I buy a rental with sale proceeds?
Only on the depletion path, at lower leverage (65% purchase, 60% cash-out), and subject to underwriting. Business-purpose rules apply to that loan, and the business-purpose exemption is why it is treated differently from a consumer mortgage. Owner-occupied purchases follow the consumer path. Terms vary by lender guidelines, property type, leverage, credit profile, and full file review.
Tax treatment varies; consult a qualified professional.
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. Georgia sellers often find the paperwork, not the balance sheet, decides the outcome.
Lendmire’s asset-based mortgage in Georgia page presents the program for Georgia 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.
Investors who want the broader program framework can review how DSCR loans work.
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References
2. CFPB Reg 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: How Business Sellers Get a Mortgage Right After the Sale Closes · Can a Business Owner Use Company Cash to Qualify for an Asset-Based Mortgage? · How Much Does a Startup Founder Need in Assets to Qualify for a Mortgage?
Guides: Asset-Based Mortgage in Georgia
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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- Lendmire LLC · Firm NMLS# 2371349 · Verify firm licensure
Important disclosures. Lendmire (NMLS# 2371349) is a licensed mortgage brokerage. Lendmire is not a direct lender, depository institution, or financial advisor. All loan inquiries are subject to lender underwriting; this article does not constitute a commitment to lend. Rates, terms, and program guidelines are subject to change without notice and vary by borrower profile, property type, and state. Information in this article is general in nature and is not financial, legal, or tax advice. Equal Housing Opportunity. NMLS Consumer Access: nmlsconsumeraccess.org.