The Quick Read: Usually yes, once the money has been paid out to you, sits in an account in your name, and has a clean paper trail. On the asset depletion path, inheritance funds are excused from the statement-age seasoning requirement. On the asset qualifier path, the 60-day seasoning clock applies to the account, so the timing works differently.
- Money still held by an estate generally does not count. Only money distributed to you can be used.
- Seasoning is a shortcut for sourcing. A documented inheritance can do the same job as a long account history.
- The two asset-based paths treat seasoning differently, and each file is on one path at a time.
- Inheritance is an asset, not income. It can fund the loan or become qualifying income, but the same dollars cannot do both.
- Every program here is subject to underwriting, and the lender’s own review governs.
What Does “Seasoned” Actually Mean?
Seasoned money is money that has sat in your account long enough that a lender stops asking where it came from. Experian describes seasoned funds as money held for roughly 60 days. It also explains that large deposits get reviewed to confirm they are not undisclosed borrowed money.
Here is the logic that matters for you. A seasoned balance skips the sourcing step. A newer deposit goes through sourcing instead. The lender’s real question is whether the deposit traces to a legitimate, non-loan origin. Elapsed time is only the easy way to prove it.
An inheritance has a built-in paper trail. A will, a trust document, or an executor’s letter shows who the money came from and why you received it. That is why inherited funds are often treated differently from an ordinary new deposit.
The word “seasoning” also gets used for three different things. Mixing them up causes most of the confusion on this topic.
| Meaning | What it measures | Where it shows up |
|---|---|---|
| Funds-in-account | How long money sat in your account | Qualifier path: 60 days |
| Statement age | How old your oldest statement is | Depletion path: 120 days |
| Ownership seasoning | How long you have owned a property | Refinance programs |
This article covers the first two. Ownership seasoning is a separate question about refinancing a property you already hold.
How Do the Two Asset-Based Paths Treat Inherited Money?
The asset qualifier path asks for 60 days of seasoning and two months of statements for each qualifying account. The asset depletion path asks for statements at least 120 days old, plus one within 45 days, but excuses inheritance funds from that seasoning. Both rules are subject to underwriting.
Start with how the paths differ, because the inheritance rule follows from it. Lendmire’s asset-based mortgage program runs through select lenders in its wholesale network. A borrower is qualified on one path at a time.
The asset qualifier path. Your eligible assets, after the credit percentages, must equal or exceed the entire loan amount. No employment or income is documented. The loan can go up to $4,000,000. Leverage runs up to 80% on a purchase and up to 75% on a refinance, on a principal residence or second home.
On this path, brokerage accounts, certificates of deposit, money market and savings all count at 100%. Retirement accounts count at 90% under age 59½ and 100% at 59½ or older. The 60-day seasoning and two statements per account apply. The published rules do not carve out inheritance here, so plan around the clock.
The asset depletion path. Eligible assets, after the haircuts, are divided by 60 months into a monthly qualifying income. That income carries the housing payment and other debts through the debt-to-income test. Loans run from $125,000 to $3,500,000. Statements must be at least 120 days old at application, with the most recent one within 45 days. Sale-of-business, inheritance and legal-settlement funds are excused from that seasoning.
Here is what that means in practice. If a large inheritance lands in a new account, the depletion path does not make you wait for the statements to age. The lender still reviews the source, and you still document it.
Across the wholesale network, most lenders handle large deposits through sourcing, and a few lean harder on seasoning. A depletion-path file with a clean estate paper trail is the cleanest fit for fresh inherited money.
Does the Money Have to Be Distributed First?
Yes. Money that an estate has not yet paid out is generally not an asset you can count. A lender verifies what is in your account on the statement, not what you expect to receive. Time your contract, deposit and closing dates around distribution, not around the date you hope it arrives.
The stages look like this:
| Stage | Can a lender count it? | What the file shows |
|---|---|---|
| Estate open, no distribution | Generally no | Nothing in your name yet |
| Distribution announced | Generally no | A letter, not money |
| Check or wire received | Not until deposited | The estate’s distribution proof |
| Deposited in your account | Yes, if sourced | Statement plus estate documents |
Why Michigan Timing Varies
Michigan shows how much the path to distribution can differ. For a small estate, Michigan Legal Help explains that transfer by affidavit works only if the person owned no real property, and you wait 28 days after the death. No court filing is involved.
A larger or more complicated estate usually goes through probate, which takes much longer. Recording Law puts a simple informal Michigan probate at roughly 6 to 9 months, driven in part by a four-month window for creditor claims. Treat that as a ballpark, since every estate moves differently.
Some money skips probate altogether. NerdWallet notes that life insurance paid to a named beneficiary goes directly to that person without going through probate first.
Trust distributions and accounts with a named beneficiary also tend to move sooner than assets that must pass through the court. That is a general pattern, not a promise for your estate.
What Proof Replaces the Waiting Period?
Lenders want to trace the money from the person who died to your account. A clear chain of documents does that. The exact list depends on what you inherited, and the lender decides what it accepts.
| What you inherited | Typical paper trail |
|---|---|
| Cash from an estate | Estate distribution letter, check or wire confirmation |
| Trust distribution | Trust document or trustee letter, proof of payment |
| Inherited brokerage account | Retitled account statements, or sale records |
| Inherited real estate that sold | Closing statement, executor paperwork |
| Life insurance payout | Claim letter, payment confirmation |
A will or trust naming you as beneficiary, or a letter from the executor, anchors almost every file. Add proof that the money actually moved to you. A bank statement showing the deposit does that job well.
Underwriters also look at how many accounts the money passed through. The fewer hops and unexplained deposits, the smoother the review. A written letter of explanation can fill small gaps.
Gifts are a different story. Gift funds are often restricted, and many programs ask for a gift letter and limit how a gift can be used. Inheritance is neither a gift nor a loan. Document it as a distribution from an estate, trust or beneficiary account, and describe it that way every time.
Funding the Loan Versus Qualifying for It
An inheritance can do two separate jobs, and the same dollars cannot do both. It can fund the purchase, or it can qualify you on the asset-based path. Reserves, down payment and closing costs are separate buckets, and money used for one cannot be counted again for another.
On the asset qualifier path, your eligible balances must cover the entire loan. The program’s illustrative shape: an $800,000 loan 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 is reviewed on assets alone, subject to underwriting.
On the asset depletion path, the same inheritance becomes income. 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 then carries the housing payment and other debts through the debt-to-income test. Both examples are illustrative, and the lender’s own calculation governs.
The haircuts on the depletion path are worth knowing before you decide what to do with an inherited portfolio:
- Cash accounts and certificates of deposit count at 100%.
- Securities count at 80%, and private stock at 75%.
- Retirement accounts count at 70% at any age.
- Real-estate equity counts at 60%.
Inherited cryptocurrency, precious metals and collectibles are not published as eligible on either path. The documented route is to convert them into a seasoned cash balance in a regulated account, with the lender reviewing the source. Borrowed or pledged funds do not count either, and cash-out proceeds never count as qualifying assets.
This is where an investor’s decision gets interesting. A buyer who wants a rental can use the depletion path, where an investment property tops out at 65% on a purchase or rate-and-term refinance and 60% on a cash-out. A principal residence or second home on the same path reaches 80% on a purchase or rate-and-term and 60% on a cash-out. The depletion path also needs qualified assets of at least the lesser of $1,000,000 or 1.25 times the loan, and never less than $250,000 liquid when assets are the only income source.
Credit still matters. The qualifier path publishes a 600 minimum score, and the depletion path follows the lender’s matrix. A first-time investor on the depletion path needs 700. Approval depends on the full file.
Three Scenarios
An estate check lands mid-contract. Picture a buyer under contract whose aunt’s estate is closing out. The check arrives before the lender verifies assets, and the buyer deposits it into one personal account. The file carries the estate distribution letter, a copy of the check and the deposit statement. That is a clean trail. If the check had arrived after the verification date, it would not have helped that file.
A trust distribution to a retitled account. Say you inherit a brokerage account held in a trust. The trustee retitles it in your name, and you send the lender the retitled statements and the trust paperwork. On the qualifier path, brokerage balances count at 100%, and the 60-day clock and two statements apply. On the depletion path, securities count at 80%, and inheritance funds are excused from the statement-age seasoning.
A buyer with no current income. Consider an heir who left a job and holds a large portfolio. The depletion path turns the portfolio into monthly qualifying income, and the qualifier path skips income altogether if the assets cover the loan. Neither path uses traditional personal-income documentation, pay stubs or employment verification, but the assets are documented with statements and the file is fully underwritten.
A pattern shows up often in files like these. The buyer moves inherited money between several accounts before applying, trying to tidy things up. That usually makes the paper trail longer, not shorter.
Mistakes That Stall Files
- Counting an inheritance before it is distributed.
- Spending the same dollars on the down payment and again as reserves.
- Splitting the deposit across several accounts without a record of why.
- Missing the estate letter, the one document that ties the money to the estate.
- Treating a gift and an inheritance as the same thing.
- Converting inherited assets without keeping the records.
- Assuming all lenders apply the same seasoning and large-deposit rules.
Co-heirs add a wrinkle. If the money sits in a shared account, the lender needs to know whose share is whose. Get the split in writing from the executor or trustee before you apply.
Should You Wait or Move Forward?
Move forward if the money is already in your name and the paper trail is clear. Wait if the estate has not distributed, because you cannot qualify on money you do not yet hold.
Ask your broker these questions up front: which path fits, how the lender treats a large deposit, and whether statement age or the 60-day clock applies to your accounts. Lenders in the network do set different thresholds, which is why comparing programs matters.
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.
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. Reach the team at 828-256-2183.
Key Terms Defined
Seasoning: the period money sits in your account so a lender can treat it as yours without tracing its source.
Sourcing: the paper trail showing where a deposit came from and that it was not borrowed.
Asset qualifier path: qualifying when your eligible assets cover the whole loan, with no employment or income documented.
Asset depletion path: turning eligible assets into monthly income by dividing them by 60 months.
Haircut: the share of an asset’s balance that a lender will not count.
Distribution: the payment of inherited money from an estate or trust to you.
Frequently Asked Questions
Does an inheritance count if probate is not finished?
Generally no. Funds the estate still holds are not yours yet, so they are not an asset a lender can verify. Once the executor distributes the money and you deposit it, it can count, subject to the lender’s review of the documents.
Do I still have to wait 60 days after depositing an inheritance?
It depends on the path. The qualifier path asks for 60 days of seasoning and two statements per account. The depletion path excuses inheritance funds from its statement-age seasoning. Sixty days is a common convention, not a universal law.
Is an inheritance treated as income?
No, it is an asset. On the qualifier path it helps cover the loan amount. On the depletion path it is converted to monthly qualifying income by dividing usable assets by 60 months. Either way, the lender’s calculation governs.
Can inherited retirement accounts be used?
Yes, through select programs. On the qualifier path, retirement balances count at 90% under age 59½ and 100% at 59½ or older. On the depletion path they count at 70% at any age. The lender reviews the account’s titling and statements.
Can I use an inheritance for an investment property?
Investment property is available only on the asset depletion path, where the loan is business-purpose. Leverage there reaches 65% on a purchase or rate-and-term refinance and 60% on a cash-out, subject to underwriting. The qualifier path covers principal residences and second homes.
Lendmire’s asset-based mortgage in Michigan page presents the program for Michigan 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
1. Experian — What Is Seasoned Money for a Down Payment?
2. Michigan Legal Help — Overview of Michigan’s Small Estate Processes
3. Recording Law — Michigan Probate
4. NerdWallet — Life Insurance and Inheritance
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 Michigan Widow Qualify for a Mortgage on Life Insurance and Retirement Assets? · How Much Does a Startup Founder Need in Assets to Qualify for a Mortgage?
Guides: Asset-Based Mortgage in Michigan
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.