The Quick Read: An heir with no paycheck can still be reviewed for a Texas mortgage when the lender looks at what you own instead of what you earn. Inherited cash, investments and retirement money can be documented with statements. They can then either cover the loan outright or be converted into qualifying income, subject to underwriting. Your job status is not the test. Documented assets are, and clear title is a separate hurdle if a house is involved.
- Two paths exist. The asset qualifier path uses assets to cover the whole loan. The asset depletion path turns assets into monthly income.
- Cash counts most. Savings, CDs and money market balances count at 100% on the qualifier path, and cash and CDs count at 100% on the depletion path.
- Inherited funds get a seasoning break on the depletion path, but the assets are still documented.
- Inherited real estate is a title question first. Cash and securities are a statement question first.
- Every file is fully underwritten. The program skips traditional personal-income documentation, pay stubs and employment verification, not documentation.
Does an Inheritance Count as Income?
An inheritance is not income in the lender’s eyes. It is a pool of assets. A lump sum lands once and does not repeat, so underwriters do not treat it like a salary.
That is exactly why asset-based programs exist. Picture someone who inherits a brokerage account and a paid-off house after a parent passes. Their bank balance looks great and their tax return shows nothing. A conventional lender sees no income. An asset-based lender sees a borrower who can repay.
Lendmire is a mortgage broker, not a lender. Its consumer mortgage lending is licensed in 16 states, Texas among them. Through asset-based mortgage programs placed with select lenders in its wholesale network, the file is built around your statements. Every figure below is a ceiling or floor from those programs, subject to underwriting, never an offer.
Key Terms Defined
Asset qualifier path: A program path where eligible assets, after the credit percentages, must equal or exceed the entire loan. No employment or income is documented.
Asset depletion path: A program path that divides usable assets by 60 months to create a monthly qualifying income. That income must carry the housing payment and other debts through the debt-to-income test.
Debt-to-income (DTI): The share of your monthly income that goes to debt payments, including the new housing payment.
Seasoning: The time money has sat in your account. Lenders use it to confirm funds are really yours and not a recent loan.
Affidavit of heirship: A sworn Texas document that records who the heirs are. It is evidence of heirship, not a deed.
Haircut: The percentage of an asset’s balance that does not count toward qualifying.
The Two Paths at a Glance
You are qualified on one path at a time. The figures never blend.
| Factor | Asset Qualifier | Asset Depletion |
|---|---|---|
| How assets are used | Must cover the whole loan | Become monthly income |
| Purchase leverage | Up to 80% | Up to 80% (primary or second home); 65% (investment) |
| Refinance leverage | Up to 75% | Up to 80% rate-and-term; 60% cash-out |
| Loan amounts | Up to $4,000,000 | $125,000 to $3,500,000 |
| Credit | 600 minimum | The lender’s matrix |
| Retirement accounts | 90% under 59½; 100% after | 70% at any age |
On the depletion path, the leverage above applies to a primary residence or second home unless the table says investment. The qualifier path covers a primary residence or second home. Whether cash-out proceeds are allowed on the qualifier path is set by the lender, so ask. On the depletion path, cash-out proceeds never count as qualifying assets.
How Underwriting Actually Treats Your Inheritance
Underwriting follows the same steps whether the inheritance arrives as cash, securities or a house. The order matters.
Step 1: Get ownership documented. Liquid assets need to be in your name. Estate distribution letters, retitled accounts and the statements that follow are the paper trail. Funds that are still expected do not count.
Step 2: Verify only the assets being used. Federal ability-to-repay rules let a lender rely on income or assets, with employment considered only if it is relied on. The CFPB’s compliance guide says the lender must verify what it relies on. This is why a file built on assets does not need a paycheck. It is also why the assets must be proven.
Step 3: Apply the credit percentages. On the qualifier path, brokerage accounts, CDs, money market and savings count at 100%. Retirement accounts count at 90% under age 59½ and 100% at 59½ or older. Accounts combine.
On the depletion path, the haircuts are steeper:
- Cash and CDs: 100%
- Securities: 80%
- Private stock: 75%
- Retirement accounts: 70%
- Real-estate equity: 60%
Custodial accounts, deferred compensation, escrow accounts, foreign funds, cash on hand, stock options and non-vested restricted stock units are not eligible on the depletion path. Crypto, precious metals and collectibles 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 source reviewed by the lender.
Step 4: Check seasoning. The qualifier path wants 60 days of seasoning and two months of statements for each qualifying account. The depletion path wants statements at least 120 days old at application plus a recent statement within 45 days. Inheritance funds are excused from that depletion-path seasoning. Still expect the lender to ask for the source.
Step 5: Run the credit and property review. The usual items apply: credit, appraisal, title and insurance. The qualifier path’s floor is a 600 score. The depletion path follows the lender’s matrix, and a first-time investor on that path needs 700. Housing history of 0x30x12 is the standard, with one 30-day late in the last twelve months considered case by case. Multiple bankruptcies are not eligible.
A Worked Example
These are the program’s own sample shapes. The lender’s calculation governs.
Qualifier path. Say the loan is $800,000. The borrower holds $330,000 in brokerage accounts (100% counts, so $330,000), $300,000 in a 401(k) while under 59½ (90% counts, so $270,000) and $200,000 in savings (100%, so $200,000). Usable assets total $800,000. The loan is reviewed on assets alone, with no income documented. Reserves are not required at or below 75% loan-to-value on this path. Above that, the lender sets them.
Depletion path. Say the borrower holds $1,500,000 in securities (80% counts, so $1,200,000) plus $300,000 in cash (100%). Usable assets are $1,500,000. Divided by 60 months, that is $25,000 of monthly qualifying income. That income then carries the housing payment and other debts through the DTI test.
The depletion path has a floor. Qualified assets must be at least the lesser of $1,000,000 or 1.25 times the loan. They must also never fall below $250,000 liquid when asset depletion is your only income source. A smaller inheritance may not reach it. If you have documented income, asset-derived income may supplement it up to a 45% DTI, and the minimum-assets rule is waived.
Choosing between a bigger down payment and a bigger qualifying income is a real tradeoff. Cash you put down no longer sits in the pool that produces income.
Inherited House or Inherited Cash?
The two arrive with different problems.
| Inheritance type | Lender’s main concern | Typical hurdle |
|---|---|---|
| Cash, CDs, savings | Source and statements | Documenting the distribution |
| Brokerage and securities | Titling and statements | Retitling into your name |
| Retirement accounts | How the account is held | Lender review of account type |
| Inherited house | Clear title | Recording heirship or probate |
Inherited equity in a house can count too, at 60% on the depletion path, subject to underwriting. Title has to be clean first.
Where the General Rule Breaks
Probate is still open. Until title is clear, you generally cannot pledge or refinance an inherited house. In Texas, an affidavit of heirship is authorized under the Estates Code and serves as prima facie evidence of heirship. A court treats it that way once it has been of record in the deed records for five years or more. It does not affect the rights of an omitted heir or a creditor. TexasLawHelp explains how the document is drafted and used for real property.
An affidavit is not a deed. It does not transfer title or pay debts. It also does not reach bank, brokerage or retirement accounts, which typically need letters from the probate court. Many title companies expect two disinterested witnesses. Whether they are strictly required is debated, so confirm with your title company and a probate attorney.
Several heirs share the house. Buying out siblings can involve a special lien structure under Texas law rather than a plain cash-out refinance. Ask a Texas real-estate attorney before you assume the loan type.
Inherited retirement accounts. How an inherited account is titled and treated varies, so the lender will review it individually. Tax treatment varies by account type; consult a qualified professional before drawing on it.
Homestead equity. Texas has special constitutional limits on home-equity cash-out against a homestead. Describe your plan to the loan officer up front. Do not assume a cash-out works because the equity exists.
Inheritance treatment varies by program. Across the wholesale network, some lenders excuse seasoning for inherited funds and others handle them differently. Ask each program directly.
Rental plans. If the property will be a rental, the asset depletion path covers investment property at 65% on a purchase or rate-and-term refinance and 60% on cash-out. That loan is business-purpose. A separate rental-income program exists for investors who want to qualify on the property’s rent. It is a different path from the ones here.
What the Decision Looks Like in Practice
Start with the question of what you actually inherited.
- Mostly cash or brokerage, with a clean statement trail. The qualifier path is often the cleanest fit if the usable assets cover the whole loan. The leverage ceiling is 80% on a purchase or 75% on a refinance.
- A large portfolio that does not cover the loan in full. The depletion path may fit, if your assets clear the minimums.
- A house with unclear title. Fix title first. Everything else waits on it.
- Documented income plus an inheritance. Depletion income can supplement your income, which is worth asking about.
Before you apply, keep inherited money in its own account with a clear paper trail. Avoid large unexplained transfers. Do not borrow against the funds, because pledged or borrowed funds are not published as eligible on either path.
For a neighboring situation, Lendmire’s piece How to Qualify for an Ohio Mortgage on an Inheritance Without a Job shows the same two-path logic applied to a different borrower.
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.
Frequently Asked Questions
Can I qualify for a mortgage if my only “income” is an inheritance?
Usually, yes, as assets rather than income. The lender documents the inherited funds with statements, then either lets them cover the loan or converts them into qualifying income. Every file is fully underwritten, and approval is never guaranteed.
Do I have to sell the inherited investments?
Not to qualify. On the depletion path, the calculation divides usable assets by 60 months. It is a qualifying convention, not a withdrawal. Your investments stay where they are.
Does the inherited money need seasoning?
It depends on the path. The qualifier path wants 60 days of seasoning and two months of statements per account. The depletion path excuses inheritance funds from its statement seasoning, but the lender still reviews the source.
Can I use an inherited house as the asset?
Equity in real estate counts at 60% on the depletion path, subject to underwriting. You need clear title first. In Texas that may mean recording heirship or completing probate, and an attorney and title company should confirm which route applies.
Is this a no-doc loan?
No. Every file is fully underwritten and the assets are documented with statements. What the program skips is traditional personal-income documentation, pay stubs and employment verification.
Lendmire’s asset-based mortgage in Texas page presents the program for Texas borrowers.
About Lendmire
As a mortgage broker (NMLS# 2371349), Lendmire helps self-employed and high-net-worth borrowers in 16 states qualify on bank statements, a profit-and-loss statement, 1099s or liquid assets instead of traditional personal-income documentation, through wholesale lenders. Lendmire is never the lender; program terms are set by the lender and its guidelines. Scotsman Guide named Lendmire a Top Mortgage Workplace in both 2025 and 2026.
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References
1. CFPB ATR/QM Compliance Guide
2. Texas Estates Code §203.001 (statute site)
3. TexasLawHelp: How to Draft an Affidavit of Heirship
4. Texas Legal Guide: Affidavit of Heirship
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 Pennsylvania Retirees Qualify for a Mortgage Without a Paycheck · Can an Inheritance Qualify You for a California Mortgage Before It Is Seasoned? · Can an Inheritance Qualify You for an Indiana Mortgage Before It Is Seasoned?
Guides: Asset-Based Mortgage in Texas
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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- Lendmire LLC · Firm NMLS# 2371349 · Verify firm licensure
Legal disclosures. Lendmire (NMLS# 2371349) is a state-licensed mortgage brokerage that arranges financing through wholesale lender relationships. Lendmire is not a direct lender, depository institution, or registered financial advisor. The discussion above is general informational content about real estate financing — it is not financial, legal, or tax advice, and readers should consult licensed professionals for guidance on their individual circumstances. Loan inquiries are subject to lender underwriting; this article does not represent a commitment to lend. Loan terms, rates, and qualification standards vary by borrower, property, and state, and are subject to change at any time. Equal Housing Opportunity. NMLS Consumer Access: nmlsconsumeraccess.org.