The Quick Read: It depends on which asset-based path you use: on the asset depletion path, inheritance funds are excused from the statement-age requirement as long as you document where they came from, while the asset qualifier path still asks for 60 days of seasoning and two months of statements per account, subject to underwriting.
- Seasoning is a lender rule about how long money sits in your account, and the paper trail on an inheritance often does the same job as time.
- Inheritance counts as an asset, never as income, so it is reviewed against covering the loan or by being converted into a monthly qualifying figure.
- Funds still inside an open estate are not yet yours, so they usually cannot be counted.
- Cash is the cleanest form of inheritance; stocks, retirement accounts and inherited houses each add a step.
- Program figures are the same for a Georgia borrower as anywhere else the program is offered, and every file is underwritten individually.
What Does “Seasoned” Actually Mean?
Seasoning is the waiting period a lender wants between money arriving in an account and that money being used on a loan. The reason is simple. A lender wants proof the funds are really yours and are not a loan in disguise.
A pile of cash that appeared last week looks the same as borrowed money on a statement. Time in the account, or a document explaining the source, answers that worry.
Two things are easy to confuse here:
- Seasoned means the money has been in your account long enough.
- Sourced means you can show where it came from.
For an inheritance, sourcing is usually the stronger answer. Estate paperwork shows exactly where the money came from, and a distribution letter is hard to fake.
Across the wholesale network Lendmire works with, programs that qualify borrowers on assets treat these two ideas differently. That difference is the whole answer to your question.
The Short Version for a Georgia Borrower
Nothing in these program figures changes because the property sits in Georgia. The asset-based mortgage program Lendmire places files through select lenders is available to Georgia consumer borrowers, since Georgia is one of the 16 states where Lendmire’s consumer mortgage lending is licensed. Georgia matters mostly for one thing: how long your estate takes to distribute.
The program has two paths, and you qualify on one at a time. Lendmire’s asset-based mortgage program covers both:
- Asset qualifier path. Your eligible assets, after the credit percentages, must equal or exceed the entire loan. No employment or income is documented.
- Asset depletion path. Your usable assets are divided by 60 months to create a monthly qualifying income. That income then runs through the debt-to-income test with your housing payment and other debts.
Here is how seasoning plays out on each path.
| Factor | Asset qualifier path | Asset depletion path |
|---|---|---|
| Seasoning | 60 days | Statements 120+ days old |
| Statements | Two months per account | Plus one within 45 days |
| Inheritance | No published exemption | Excused from seasoning |
| Source paperwork | Expected | Still required |
On the depletion path, inheritance, sale-of-business and legal-settlement funds are excused from the 120-day statement age. The lender still reviews the source.
On the qualifier path, no such exemption is published. Plan on the 60-day clock unless a lender tells you otherwise in writing.
Why the Paper Trail Can Stand in for the Clock
Underwriters care about one question: could this money be borrowed? An estate distribution answers it directly.
A strong inheritance file usually carries these items:
- A statement showing the deposit.
- A distribution letter from the estate.
- A letter from the executor, trustee or estate attorney.
- A copy of the check or the wire record.
- Will or trust pages that name you, where they apply.
Lenders that rely on assets must verify them. The federal consumer-lending guidance says a creditor must confirm income or assets with reasonably reliable third-party records. The same guide says the value of the home securing the loan does not count as an asset for that purpose. Estate paperwork is exactly that sort of third-party record. A lender can rely on a document written by someone other than you.
Documentation substitutes for time only as far as the lender is willing to follow it. If funds hop between three accounts, or part of the deposit is cash with no paper behind it, the clean story breaks. Then the clock matters again.
Inheritance Is an Asset, Not Income
This catches many first-time heirs. The inheritance does not become your salary. It never shows up as a line of earned income.
It helps in one of two ways:
1. It covers the loan outright. On the qualifier path, the eligible balance has to equal or exceed the whole loan amount.
2. It becomes qualifying income by division. On the depletion path, usable assets divided by 60 months produce a monthly figure that must carry your housing payment and other debts.
Lendmire’s team sees heirs mix these up often. They hear that assets can qualify them and assume any large balance works. It does not. The percentages, the paths and the leverage limits all decide the result.
How Different Forms of Inheritance Count
An inheritance rarely arrives as one tidy deposit. The form of the money changes how it counts.
Qualifier path, share of the balance that counts:
- Brokerage accounts, certificates of deposit, money market and savings: 100%.
- 401(k) and IRA balances: 90% if you are under 59½, and 100% at 59½ or older.
- Accounts combine.
Depletion path, share of the balance that counts:
- Cash accounts and certificates of deposit: 100%.
- Securities: 80%.
- Private stock: 75%.
- Retirement accounts: 70% at any age.
- Real-estate equity: 60%.
An inherited IRA or 401(k) counts at the retirement percentage for its path. Inherited stocks count at the securities percentage on the depletion path.
Several assets are not published as eligible on either path. These include cryptocurrency, precious metals, collectibles, pledged or borrowed funds, and business accounts beyond your ownership share. The documented route is to convert them to a seasoned cash balance in a regulated account, with the source reviewed by the lender.
Depletion-path ineligible assets also include custodial accounts, deferred compensation, escrow accounts, foreign funds, cash on hand, stock options and non-vested restricted stock units.
The table below matches the form of the inheritance to its typical paperwork.
| Inheritance form | Typical documents | Watch-out |
|---|---|---|
| Cash from an estate | Distribution letter, deposit statement | Keep it in one account |
| Funds already in your account | Statements, estate letter | Large deposits get questions |
| Inherited brokerage account | Retitled statements | Percentages apply by path |
| Inherited retirement account | Statements, beneficiary papers | Counts at retirement percentage |
| Sale proceeds of inherited house | Settlement statement, executor papers | Count only once cash is received |
| An inherited house you keep | Recorded title in your name | The house itself is not a liquid asset |
An inherited house is a special case. If you sell it, the proceeds count as cash once the settlement statement shows them. If you keep it, the house does not count toward the loan. Its value is equity in a property, and equity counts only on the depletion path, at 60%.
When the Money Is Not Yet Yours
Funds sitting inside an open estate have not been distributed to you. Until the executor releases them, they are not your liquid assets. You cannot count them, and you should not make an offer that depends on them.
Georgia’s role here is timing. Probate moves at the pace of the estate, and that pace varies from one estate to the next. Ask the executor or the estate attorney for a written distribution date before you go under contract.
Many heirs also need to know whether title has fully passed. If the estate holds a house you plan to keep, title must be in your name before a lender will lend against it.
A Worked Example: The Qualifier Path
Here is an illustration of the arithmetic. It is not an offer, and the lender’s own calculation governs.
Say you want an $800,000 loan on a primary residence. You hold $330,000 in brokerage accounts, which count at 100%, so $330,000. You hold $300,000 in a 401(k) and are under 59½, so it counts at 90%, which is $270,000. You hold $200,000 in savings at 100%, which is $200,000.
Together, that is $800,000 of usable assets. The assets equal the loan, so you qualify on assets alone, subject to underwriting.
Now suppose $200,000 of that savings balance arrived last week as an inheritance. On the qualifier path, expect the 60-day seasoning question to come up. You would show the distribution paperwork and be prepared to wait out the period if the lender asks.
A Worked Example: The Depletion Path
Say you hold $1,500,000 in securities. At 80% they count as $1,200,000. You also hold $300,000 in cash at 100%, which is $300,000.
Usable assets total $1,500,000. Divided by 60 months, that is $25,000 of monthly qualifying income. That figure then carries your housing payment and other debts through the debt-to-income test.
If the cash came from an inheritance, the 120-day statement-age rule is excused for those funds. You still document the source.
The depletion path has minimums. Qualified assets must be at least the lesser of $1,000,000 or 1.25 times the loan balance. If depletion is your only income source, you also need at least $250,000 in liquid assets. If asset income only supplements documented income, the debt-to-income ratio can go up to 45%, and the minimum-assets rule is waived.
What About Leverage and Credit?
Leverage differs by path and by what you buy. These are ceilings, not offers, and all are subject to underwriting.
- Asset qualifier path: up to 80% loan-to-value on a purchase and 75% on a refinance, on a principal residence or second home. Loans go up to $4,000,000.
- Asset depletion path, principal residence or second home: up to 80% on a purchase or rate-and-term refinance, and 60% on a cash-out refinance. Loans run from $125,000 to $3,500,000.
- Asset depletion path, investment property: up to 65% on a purchase or rate-and-term refinance, and 60% on a cash-out. Cash-out proceeds never count as qualifying assets.
On credit, the qualifier path has a 600 minimum score. The depletion path follows the lender’s matrix, and a first-time investor on that path needs a 700. The program looks for a 0x30x12 housing history, and one 30-day late in the last twelve months is considered case by case. Multiple bankruptcies are not eligible.
There are no reserves on the qualifier path at or below 75% loan-to-value. Above that, the lender sets them.
Using Inherited Cash for a Rental
Many heirs ask whether this works for an investment property. It can, but only on the depletion path, where the loan is business-purpose. Business-purpose loans are designed for non-owner-occupied investment properties and are reviewed differently from a standard owner-occupied mortgage.
The leverage is lower, at 65% on a purchase and 60% on a cash-out, so expect to bring more cash. The upside is that inherited cash is excused from the statement-age rule on that path.
If your plan is a rental that stands on its own rent, a different program may fit better, because rental financing that is reviewed on the property’s rent rather than your assets is built for that goal. That program qualifies primarily on property-level rental income covering the payment, subject to lender guidelines. For a deal where you want to hold the inheritance in reserve rather than use it as the qualifier, it deserves a look.
Count each dollar once. If the same account funds both your down payment and your reserves, you cannot use that dollar for both jobs.
Gifts Are Not Inheritances
Heirs sometimes get advice meant for gift money. The two are treated differently.
A gift needs a donor letter, and the lender worries the money must be repaid. An inheritance needs estate documents. Inheritance is generally treated more favorably.
On rentals, gifts can run into more trouble. One BiggerPockets thread shows an investor being told that gift money often fails on non-owner-occupied purchases unless it sits across two full statement cycles. The lesson holds anyway: the more your funds look like an inheritance with paper behind it, the better they read.
A Timeline to Follow
You can control the order of events. This sequence helps.
Before the funds land
- Ask the executor for a written distribution date and the name of the paying account.
- Open a separate account for inherited money if you do not have one.
- Talk to a loan officer before you sign a purchase contract.
When the funds arrive
- Deposit the full amount into one account in your own name.
- Keep the distribution letter, the check or the wire record.
- Do not move the money around while you decide.
Before and during the application
- Pull statements for every account you plan to count.
- Check the 60-day mark if you plan to use the qualifier path.
- Check whether your statements meet the 120-day and 45-day rules on the depletion path, and note that inheritance is excused from the age requirement.
After you apply
- Answer questions on large deposits with documents, not explanations alone.
- Do not make new large deposits or open new debt.
Mistakes That Create “Unseasoned” Problems
Most seasoning trouble comes from handling, not from the inheritance itself.
- Splitting funds across several accounts. Every hop is another trail to explain.
- Depositing cash. Cash with no paper behind it cannot be sourced.
- Mixing with a spouse’s or business account. Commingling hides which dollars are yours.
- Spending first and asking later. A big purchase before you apply shrinks the qualifying balance.
- Counting undistributed estate money. It is not yours yet.
- Assuming one rule fits all. Each lender sets its own large-deposit triggers.
Document Checklist for an Inheritance File
Gather these before you talk to a lender:
- Statements for each account, covering the required months.
- The estate distribution letter.
- Will or trust pages that name you.
- Brokerage statements, if inherited investments were sold.
- A settlement statement, if inherited real estate was sold.
- A recorded deed in your name, if you are keeping an inherited house.
The assets are documented on both paths. Lendmire describes this program as having no traditional personal-income documentation, pay stubs or employment verification, and every file is fully underwritten.
Key Terms Defined
Seasoning: the period money must sit in your account before a lender will count it.
Sourcing: showing, with documents, where a deposit came from.
Distribution letter: a letter from the estate confirming that funds were released to you.
Usable assets: your balances after the program’s percentages are applied.
Asset depletion: dividing usable assets by 60 months to create a monthly qualifying income.
Liquid assets: cash and accounts you can access without selling property.
Tax Note
Tax treatment varies; consult a qualified professional before relying on any deduction or exclusion.
Frequently Asked Questions
Can I use an inheritance for a down payment right after it arrives?
Often yes on the depletion path, because inheritance funds are excused from the statement-age rule there. You still document the source. On the qualifier path, expect the 60-day seasoning requirement and two months of statements per account. Each lender reviews the file individually, so ask before you sign a contract.
Does an inheritance count as income?
No. It is an asset. It is reviewed against covering the loan on the qualifier path, or by being divided by 60 months into a monthly figure on the depletion path.
What if the estate has not finished probate?
Funds still inside an open estate are not yet your liquid assets, so they generally cannot be counted. Ask the executor for a written distribution date. Probate pace varies from estate to estate.
Can I count an inherited retirement account?
Yes, within limits. On the qualifier path it counts at 90% under age 59½ and 100% at 59½ or older. On the depletion path it counts at 70% at any age. Both are subject to underwriting.
How much inheritance do I need?
It depends on the path and the loan size. The qualifier path needs eligible assets equal to or above the entire loan. The depletion path needs at least the lesser of $1,000,000 or 1.25 times the loan, and never below $250,000 liquid when it is your only income source.
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. Programs change, qualification is subject to lender guidelines. This is not a commitment to lend.
For Georgia heirs, the practical edge is rarely a rule hidden in a guideline. It is a clean account, a written distribution letter and a start date that lets the paperwork finish before the contract does.
Lendmire’s asset-based mortgage in Georgia page presents the program for Georgia 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.
Get Started
Ready to find the right loan for you?
In about 30 seconds you can review financing options available for your home or investment property. No commitment required.
Informational only. Not a Loan Estimate, approval, or commitment to lend. Program availability and eligibility are subject to lender guidelines, credit approval, property review, and underwriting.
References
1. CFPB ATR/QM Small Entity Compliance Guide
2. BiggerPockets forum: gift funds on investment purchase
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? · How Much Does a Startup Founder Need in Assets to Qualify for a Mortgage? · Can a Michigan Buyer Qualify for a Mortgage on IRA Assets Without Withdrawals?
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
- North Carolina Real Estate Broker · License# 343312 · Verify on NCREC
- North Carolina Insurance Producer · License# 19053198 · Property, Casualty, Life, Health · Verify on NAIC SBS
- Lendmire LLC · Firm NMLS# 2371349 · Verify firm licensure
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.