The Quick Read: An Indiana heir with no job can qualify by using inherited assets instead of paycheck income, but only after the money sits in the heir’s own name in a regulated account. Through select programs, either the assets cover the whole loan outright, or they are divided into a monthly qualifying income. The loan is fully underwritten, and the assets are documented with statements, subject to lender guidelines.
- Inheritance is an asset, not income. Underwriting treats it that way.
- Two paths exist: assets cover the loan, or assets become income. A borrower uses one path at a time.
- Inherited funds must be distributed to you and retitled before they count.
- Expect no traditional personal-income documentation, pay stubs or employment verification, but full asset, credit and property review.
- Money still in an estate account or in probate generally cannot be used yet.
Inheritance Is an Asset, Not Income
Lenders don’t count a lump sum as income. A job gives a lender a paycheck to measure. An inheritance gives it a balance sheet. Across the wholesale network, the programs built for this borrower, such as retirees, business sellers and heirs, look at the balance sheet directly.
That is the whole idea behind asset-based mortgage programs. The loan is a consumer mortgage on a principal residence or second home, placed through select lenders. The borrower is reviewed on what they own, not on what they earn.
What this is not: an inheritance advance or a probate loan. Those give you cash against an expected payout. This is a mortgage on a home you will buy or refinance.
The Two Paths for a Non-Working Heir
Asset qualifier path. Eligible assets, after the credit percentages below, must equal or exceed the entire loan. No employment or income is documented. Leverage runs up to 80% on a purchase and 75% on a refinance. Loans go up to $4,000,000. The credit floor is 600, subject to underwriting.
Asset depletion path. Usable assets are divided by 60 months to create a qualifying income. That income must carry the full housing payment and other debts through the debt-to-income test. Loans run from $125,000 to $3,500,000. The lender’s score and loan-amount matrix sets the credit requirement.
| Factor | Asset qualifier | Asset depletion |
|---|---|---|
| How assets are used | Cover the whole loan | Divided by 60 months |
| Purchase leverage | Up to 80% | Up to 80% (primary or second home) |
| Refinance leverage | Up to 75% | 80% rate-and-term, 60% cash-out |
| Loan range | Up to $4,000,000 | $125,000 to $3,500,000 |
| Statements | Two months per account | Aged 120 days, plus one within 45 days |
On the qualifier path, the lender sets any cash-out terms and they are not published. Don’t plan around cash-out there.
What Counts, and at What Percentage
On the qualifier path, brokerage accounts, CDs, money market and savings count at 100%. A 401(k) or IRA counts at 90% under age 59½ and 100% at 59½ or older. Accounts combine.
Here is the illustrative shape. Take an $800,000 loan. The borrower holds $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). That counts $800,000 of usable assets, so the file is reviewed on assets alone. The lender’s own calculation governs.
On the depletion path the haircuts are steeper. Cash and CDs count at 100%, securities at 80%, private stock at 75%, retirement accounts at 70% at any age, and real-estate equity at 60%. Not eligible: custodial accounts, deferred compensation, escrow accounts, foreign funds, cash on hand, stock options, non-vested restricted stock units, and funds from non-regulated financial companies.
Crypto, precious metals, collectibles and borrowed or pledged funds 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.
How Inherited Assets Become Qualifying Income
Run the depletion math. Say an heir holds $1,500,000 in securities and $300,000 in cash. Securities count at 80%, which is $1,200,000. Cash counts at 100%, which is $300,000. Usable assets total $1,500,000. Divide by 60 months and the qualifying income is $25,000 per month.
That income then has to carry the housing payment and other debts through the debt-to-income test. Here is where files fail. A large balance with a high payment on a big loan can still miss the ratio. The levers are a lower loan amount, a larger down payment from non-qualifying funds, or a lower-priced home.
Two minimums matter. Qualified assets must be at least the lesser of $1,000,000 or 1.25 times the loan balance. And when depletion is the only income source, liquid assets can’t fall below $250,000. Cash-out proceeds never count as qualifying assets.
Notice the trade-off. Money you put into the down payment leaves the pool. Size the down payment first, then count what remains.
When Does an Indiana Inheritance Actually Count?
Only when it is yours, in your name, and accessible. That is where most inheritance files stall.
Letters testamentary are court documents proving an executor’s authority to collect assets, pay debts and taxes, and distribute property. While probate is open, the executor controls the assets. An heir generally can’t pledge them yet. Cash in an estate account is not your cash until it is distributed.
| Where the money sits | Counts yet? | What the lender wants to see |
|---|---|---|
| Open estate account | No | Wait for distribution |
| Distributed to your account | Yes, if eligible | Transfer record and estate paperwork |
| Trust or beneficiary-designated account | Often, once retitled | Trust certification, account statements |
| Inherited real estate | Not as cash | Recorded deed or court order |
Document sets vary by estate. Typical items are the death certificate, letters or an executor’s deed, and a trust certification. Confirm the timing with the estate attorney. Probate routes differ, and the attorney knows which one applies.
Seasoning and Sourcing Inherited Funds
Seasoning is how long money has sat in your account. Ordinary deposits get questioned. Inheritance gets treated differently on the depletion path: statements must be at least 120 days old at application, plus the most recent statement within 45 days, but inheritance, sale-of-business and legal-settlement funds are excused from that seasoning.
The qualifier path is stricter on paper. It wants 60 days of seasoning and two months of statements for each qualifying account. Plan for it.
Either way, the assets are documented. The lender still reviews where the money came from. Keep the estate’s distribution letter, the transfer record and the receiving account’s statements together. A clean paper trail replaces a long statement history.
What the Lender Still Verifies
No employment documentation does not mean no underwriting. The file is fully underwritten. Credit, identity, the appraisal, the property, occupancy and asset statements are all reviewed.
Credit still matters. The qualifier path starts at a 600 score. A housing history of 0x30x12 is the standard, and one 30-day late in the last twelve months is considered case by case. Multiple bankruptcies are not eligible. On the depletion path, a housing event needs 4 years of seasoning, and a first-time investor needs 700. All of it is subject to underwriting.
Reserves are simple on the qualifier path. None are required at or below 75% loan-to-value, and above that the lender sets them. The depletion path publishes no reserve months.
Because this is a consumer mortgage, standard disclosures apply, and the lender completes its own ability-to-repay review. On the qualifier path, that review rests on the assets.
Edge Cases That Break the General Rule
Multiple heirs on one deed. All co-owners generally must sign. A buyout of co-heirs usually needs a written agreement first.
Inherited retirement accounts. On the qualifier path they count at 90% under 59½ and 100% after. On the depletion path they count at 70% at any age. Beneficiary distribution rules can affect access, so ask the plan administrator what you can withdraw.
An existing mortgage on the inherited home. Some heirs can keep the loan rather than refinance. Whether that applies is a legal question for the estate attorney.
Buying an investment property. Investment property is available only on the depletion path, and the loan is business-purpose. Leverage drops to 65% on a purchase or rate-and-term refinance and 60% on a cash-out. Business-purpose loans fall outside the consumer ability-to-repay test, as the CFPB’s Truth in Lending summary describes, though state licensing can still apply.
For a rental, the borrower’s balance sheet carries the file. Business-purpose financing that is reviewed on the property’s rent is a separate product.
Funds that are borrowed or pledged. They don’t count. Lenders look for money you actually own.
Which Route Fits the Heir
| Situation | Likely fit |
|---|---|
| Assets exceed the loan in eligible form | Asset qualifier |
| Assets are large but loan is bigger | Asset depletion |
| Wants to keep portfolio invested | Either, per balances |
| Plans a rental purchase | Depletion path, investment terms |
| Funds still in probate | Wait for distribution |
Think about the order of operations. Confirm title and distribution first. Retitle funds into your name next. Choose the path last, after you see your usable total.
Document Checklist
- Death certificate and letters testamentary or administration
- Executor’s deed, court order or trust certification
- Estate distribution letter and transfer record
- Statements for every qualifying account, per the path’s seasoning rules
- Photo ID and credit authorization
- Purchase contract and appraisal access
Common Mistakes
Applying while the money is still in estate hands. Moving funds between accounts without a paper trail. Counting the whole balance when haircuts apply. Spending the down payment out of the same pool you need for qualifying. Skipping the attorney on a multi-heir deed.
Key Terms Defined
Letters testamentary: the court document that proves an executor can act for an estate.
Seasoning: how long funds have sat in your account before you apply.
Usable assets: the share of each balance that counts after the program’s percentages.
Debt-to-income test: the comparison of your total monthly debts, including the new housing payment, to your qualifying income.
Distribution: the transfer of estate money into your own name.
Frequently Asked Questions
Do I have to sell inherited investments to qualify?
Often no. Brokerage accounts count at 100% on the qualifier path and securities at 80% on the depletion path. Many borrowers keep the portfolio invested and document it with statements.
Does Indiana tax my inheritance?
No. Indiana repealed its inheritance tax, and the Indiana Department of Revenue says none is owed. Tax treatment varies; consult a qualified professional.
Can I apply before the funds arrive?
Not on the inheritance itself. The assets must be distributed to you and documented. You can line up the path and paperwork while the estate settles.
Is a 600 credit score enough?
It is the published floor on the qualifier path, subject to underwriting. The depletion path follows the lender’s matrix, and a first-time investor needs 700. Credit is always reviewed. These specifics are subject to lender guidelines and a full review of property, leverage, and credit.
Can I use an inherited IRA?
Yes, through select programs. It counts at 90% under 59½ and 100% after on the qualifier path, and 70% on the depletion path.
What Comes Next
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 or request a quote at Lendmire’s quote page. Lendmire is a broker; programs are placed through select lenders and are not a commitment to lend. Consumer lending is licensed in 16 states, Indiana included.
Estate timing in Indiana runs through the probate court, so the estate attorney’s distribution date is the date your file really starts.
Lendmire’s asset-based mortgage in Indiana page presents the program for Indiana 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. Cornell Legal Information Institute, Letters Testamentary
2. CFPB, Truth in Lending Act Summary
3. Indiana Department of Revenue, Inheritance Tax Information
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 to Qualify for an Ohio Mortgage on an Inheritance Without a Job · Can an Inheritance Qualify You for a Tennessee Mortgage Before It Is Seasoned? · Can You Get a Tennessee Asset-Based Mortgage With No Job?
Guides: Asset-Based Mortgage in Indiana
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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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.