The Quick Read: Yes, usually, because being widowed does not block approval, and a lender can count seasoned insurance proceeds and retirement balances as assets instead of a paycheck. Which path fits depends on whether those assets cover the whole loan or are converted into monthly income, subject to underwriting.
- Assets cover the loan: on the asset qualifier path, eligible assets must equal or exceed the entire loan, and no employment or income is documented.
- Assets become income: on the asset depletion path, usable assets divided by 60 months become qualifying monthly income.
- Life insurance: a paid death benefit counts once it sits in an account as seasoned cash. A policy you still own is handled differently.
- Retirement money: counts at a percentage that depends on the path and your age.
- Rentals: a rental purchase usually runs on a different loan, where the property’s rent drives lender review.
What This Question Is Not About
Three products sound similar and answer different questions. Sort them out first.
Mortgage protection insurance pays off a loan when the borrower dies. It does not help a living borrower get approved. Collateral assignment pledges a policy to secure a loan. A reverse mortgage converts home equity into proceeds for older owners.
This article covers something else. It covers qualifying for a new or refinanced mortgage when your balance sheet is large and your documented income is small. That describes many widows in their first years after a loss. It also describes retirees, business sellers and heirs.
Lendmire is a broker. It arranges these loans through select lenders in its wholesale network, and consumer mortgage lending is licensed in 16 states, Georgia among them. The program figures below do not change by state. Every figure is a ceiling or floor, not an offer, and each file is underwritten individually.
Does Widowhood Itself Hurt Your Approval?
No. Lenders look at assets, credit, the property and the loan size. Marital status is not a factor in that review.
What changes after a death is paperwork. The lender needs to see that the assets are yours. That means the account is in your name or you have the right to access it. It also means proceeds actually arrived in an account you own.
Probate or estate delays can hold assets up. A pending estate can make an account unusable for a file until it is settled. Ask a Georgia attorney where your estate stands before you apply. The program rules below are the same in every state.
Two Paths: Assets Cover the Loan, or Assets Become Income
Across our wholesale network, asset-based mortgages split into two paths. You are qualified on one path at a time. Never blend the two sets of figures.
| Factor | Asset qualifier | Asset depletion |
|---|---|---|
| How it works | Assets cover the whole loan | Assets divided by 60 months = income |
| Income documented | None | Derived income, tested against debts |
| Loan amounts | Up to $4,000,000 | $125,000 to $3,500,000 |
| Credit | 600 minimum score | The lender’s matrix |
| Seasoning | 60 days, two months of statements | Statements 120 days old plus one within 45 days |
Leverage differs by path, and by occupancy. These are typical ceilings through select programs, subject to underwriting:
- Asset qualifier: up to 80% loan-to-value (the loan as a share of the home’s value) on a purchase, and 75% on a refinance, for a principal residence or second home.
- Asset depletion, principal residence or second home: up to 80% on a purchase or rate-and-term refinance, and 60% on a cash-out refinance.
- Asset depletion, investment property: up to 65% on a purchase or rate-and-term refinance, and 60% on a cash-out refinance.
Cash-out proceeds never count as qualifying assets. Whether the qualifier path allows cash-out at all is set by the lender.
How Life Insurance Counts
A death benefit and a policy’s cash value are different assets. Lenders treat them differently.
| Item | How it is treated | What the file needs |
|---|---|---|
| Death benefit, paid out | Cash once deposited in your account | Insurer’s payout letter, account statements |
| Policy you own (cash value) | Not published as eligible on either path | Convert to cash, then document it |
| Term policy | No cash value, so not an asset | Nothing to count |
| Mortgage protection payout | Pays the lender, not you | Not part of your assets |
The reliable route is simple. Once the proceeds are deposited in a regulated account, they behave like any other cash balance. On the qualifier path, savings, money market and certificates of deposit count at 100%. Brokerage accounts also count at 100%.
Seasoning still applies on the qualifier path: 60 days and two months of statements per account. On the depletion path, statements must be at least 120 days old at application, plus one within 45 days. That path excuses inheritance, sale-of-business and legal-settlement funds from the seasoning rule. Insurance proceeds are a separate question, so ask the lender how a payout will be reviewed in your file.
Do not spend the money before you decide. Moving proceeds around, borrowing against them or mixing them with pledged funds can make the source harder to document.
Cryptocurrency, precious metals, collectibles and borrowed funds are not published as eligible on either path. The documented route is to convert them to a seasoned cash balance in a regulated account. The lender then reviews the source.
How Retirement Accounts Count
Retirement balances are the largest asset for many widows, and the two paths treat them differently. This is where picking the right path matters most.
- Asset qualifier path: 401(k) and IRA balances count at 90% if you are under 59½, and 100% at 59½ or older.
- Asset depletion path: retirement accounts count at 70% at any age.
Say you are 55. On the qualifier path your retirement balance counts at 90%. On the depletion path it counts at 70%. The same account can look quite different depending on the path.
Inherited, Rolled Over, or Your Own
If your late spouse had an IRA, you have choices. The IRS lists a surviving spouse’s options, including keeping the account as an inherited account or rolling it into your own IRA. Other options depend on whether the death came before or after the required beginning date. A spouse also gets more flexibility than other heirs. Britannica explains that the 10-year payout rule is optional for a spouse, while a non-spouse beneficiary generally must empty the account by the end of the 10th year after death.
For a mortgage file, titling matters. A lender wants to see that the funds are yours and accessible. How an inherited account counts can vary by lender, so confirm before you retitle anything.
Withdrawals and rollovers carry tax consequences. Tax treatment varies; consult a qualified professional before moving retirement money.
| Account | Typical lender view | Ask before applying |
|---|---|---|
| Your own IRA or 401(k) | Counts at path percentage | Statements in your name |
| Spousal rollover | Becomes your own account | Is the rollover complete? |
| Inherited, kept as inherited | Lender’s review applies | Is the account titled to you? |
Here is the point most widows miss. On the qualifier path, you do not have to withdraw the money. The balance counts as an asset, and you can leave it invested.
A Worked Widow Scenario
Picture a 55-year-old widow who wants a primary residence. The numbers below are illustrative, and the lender’s own calculation governs.
Asset qualifier path. She seeks an $800,000 loan. She holds $330,000 in brokerage accounts, which count at 100%, or $330,000. Her 401(k) holds $300,000 and she is under 59½, so it counts at 90%, or $270,000. Savings hold $200,000, including deposited insurance proceeds, and count at 100%, or $200,000. Usable assets total $800,000, which equals the loan. She is reviewed on assets alone, subject to underwriting, with no income documented.
Asset depletion path. Now take a different portfolio. She holds $1,500,000 in securities, which count at 80%, or $1,200,000. She also holds $300,000 in cash, which counts at 100%. Usable assets total $1,500,000. Divided by 60 months, that is $25,000 of monthly qualifying income. That income then has to carry the housing payment and her other debts through the debt-to-income test.
If she also has survivor Social Security or a pension survivor benefit, those can supplement the derived income. Asset-derived income may supplement documented income up to a 45% debt-to-income ratio. When it supplements, the minimum-assets rule is waived.
Minimums matter on the depletion path. Qualified assets must be at least the lesser of $1,000,000 or 1.25 times the loan balance. When assets are the only income source, liquid assets can never be below $250,000.
Credit, Seasoning and What Lenders Check
Credit still counts. The qualifier path’s published floor is a 600 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 typically 0x30x12, though one 30-day late in the last twelve months is considered case by case. Multiple bankruptcies are not eligible.
Documentation is heavy even though income is not. Assets are documented on both paths. Qualifying on assets is not the same as skipping paperwork. A lender reads every statement and reviews where the money came from.
Federal rules reinforce that idea for consumer mortgages. The CFPB’s compliance guide says a lender must consider and verify income or assets, along with debts. Assets can satisfy that review. The loan simply has to be documented.
Because this is a consumer mortgage, standard consumer-loan disclosures apply to it.
On the depletion path, some assets are never eligible. These include custodial accounts, deferred compensation, escrow accounts, foreign funds, cash on hand, stock options, and non-vested restricted stock units.
Buying a Rental Instead of a Home
This is the investor decision. If the property is a rental, the strongest path is usually a different loan altogether.
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. A DSCR loan is reviewed primarily on property-level rental income covering the payment, subject to lender guidelines. Your income does not drive the file. Our complete DSCR loans guide covers how the ratio works.
For a widow with little earned income, that is the appeal. Your retirement and insurance money becomes cash to close and reserves, not qualifying income. That keeps your debt-to-income picture out of the file. Programs below 1.00 coverage are available through select lenders in the network, but leverage and terms adjust.
Rental properties can also run through the asset depletion path, at the lower investment-property leverage listed earlier. That route makes sense when the rent will not cover the payment.
| Choice | Best when | Trade-off |
|---|---|---|
| DSCR loan on a rental | Rent covers the payment | Retirement money funds cash and reserves |
| Asset depletion on a rental | Rent is thin, assets are large | Lower leverage, 65% on a purchase |
| Asset qualifier on a home | Assets cover the entire loan | Assets must equal the full loan |
| Paying cash | You want no loan | Less liquidity afterward |
Borrow or Pay Cash?
Qualifying does not mean you should borrow. A large balance can buy the home outright. The question is what you want left in your accounts.
Paying cash gives you no loan and no payment. It also drains the liquid money you may need for the next decade. Borrowing keeps the assets invested and available. The cost is a monthly obligation and a loan secured by your home.
For a widow, liquidity often decides it. Many advisers suggest holding large lump sums in safe accounts while you decide. That is general planning, not a program rule. Talk to a financial adviser and an attorney before large moves.
Lendmire’s explanation of how to use retirement assets to qualify for a jumbo mortgage goes deeper on larger loan sizes. If part of your wealth sits in a trust, there is a separate piece How to Use Trust Assets to Qualify on an Asset Depletion Mortgage.
Mistakes to Avoid
- Moving money mid-application. Large transfers between accounts can break the statement trail.
- Counting a policy you own as cash. Cash value is not published as eligible on either path. Convert it first.
- Mixing the paths. Qualifier percentages and depletion haircuts are different tables.
- Ignoring the minimums. Depletion has asset floors. A smaller balance rarely clears either path for a large loan.
- Retitling before you ask. How an inherited account is titled can change how a lender views it.
- Assuming no documentation. Income is not documented on the qualifier path. Assets always are.
Key Terms Defined
Asset qualifier path: A program where eligible assets must cover the entire loan, and no employment or income is documented.
Asset depletion path: A program that divides usable assets by 60 months to create monthly qualifying income.
Haircut: The share of an asset’s balance a lender will not count, such as the 30% left out of a retirement account on the depletion path.
Seasoning: The period funds must sit in an account, and be documented by statements, before a lender counts them.
Loan-to-value (LTV): The loan amount as a percentage of the property’s value.
Debt-to-income (DTI): Monthly debts as a share of monthly income, which the depletion path tests using derived income.
DSCR: Debt service coverage ratio, a rental-property test comparing the property’s rent to its monthly obligation.
Frequently Asked Questions
Do I need a job to qualify?
No. On the asset qualifier path, no employment or income is documented, and your assets must equal or exceed the entire loan. On the depletion path, your assets are converted to income. Both are subject to credit review and underwriting.
Do term life insurance policies count as assets?
No. A term policy has no cash value, so there is nothing to count. Only paid proceeds, once deposited in your account and seasoned, count as cash. A permanent policy’s cash value is not published as eligible, so convert it to cash first.
Can I use my late husband’s IRA without cashing it out?
Often yes. On the qualifier path, the balance counts at 90% if you are under 59½ and 100% after, and you do not have to withdraw it. Whether you roll it into your own IRA or keep it as an inherited account can change how a lender views it, so ask first.
Is this the same as mortgage protection insurance?
No. Mortgage protection insurance pays off a loan if the borrower dies. Qualifying on assets is how a living borrower gets approved for a loan. They solve different problems.
What if I want to buy a rental, not a home?
A DSCR loan usually fits, because it qualifies primarily on property-level rental income covering the payment, subject to lender guidelines. Your assets then serve as cash to close and reserves. Asset depletion is the alternative when rent will not cover the payment.
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 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.
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References
1. IRS Retirement Topics – Beneficiary
2. Britannica, Inherited IRA Rules
3. CFPB ATR/QM Small Entity Compliance Guide
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 a Georgia Buyer Qualify for a Mortgage on IRA Assets Without Withdrawals? · Can a Florida Buyer Qualify for a Mortgage on IRA Assets Without Withdrawals? · Can a Michigan Widow Qualify for a Mortgage on Life Insurance and Retirement Assets?
Guides: Asset-Based Mortgage in Georgia
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
- Mortgage Loan Originator · NMLS# 1129696 · Verify on NMLS Consumer Access
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- North Carolina Insurance Producer · License# 19053198 · Property, Casualty, Life, Health · Verify on NAIC SBS
- Lendmire LLC · Firm NMLS# 2371349 · Verify firm licensure
Compliance and disclosures. Lendmire (NMLS# 2371349) is a licensed mortgage broker and is not a direct lender, depository institution, financial advisor, or tax professional. Content in this article is general market analysis and educational information — not financial, legal, or tax advice for any specific situation. Lendmire does not guarantee loan approval; every transaction is subject to underwriting by the funding lender. Mortgage pricing and loan program guidelines are subject to change at any time without notice and vary by borrower characteristics, property type, and state regulations. Lendmire complies with Equal Housing Opportunity. Licensure verification: NMLS Consumer Access.