The Quick Read: It depends on which path the file runs on: across select lenders in Lendmire’s wholesale network, the asset qualifier path typically wants 60 days of seasoning with two months of statements per account, while the asset depletion path wants statements at least 120 days old plus one within 45 days, with sale-of-business funds excused. Subject to underwriting, the program figures are the same for a Michigan borrower as anywhere else.
- Asset qualifier path: the assets alone must cover the entire loan. Two months of statements per qualifying account, and 60 days of seasoning.
- Asset depletion path: usable assets divided by 60 months become qualifying income. Statements must be at least 120 days old at application, plus the most recent one within 45 days.
- Excused funds on the depletion path: sale-of-business, inheritance and legal-settlement money skips that seasoning. A home sale is not on that list.
- The paper trail matters as much as the clock. A settlement statement that ties to the wire into your own account is what lenders look for.
- Not a commitment to lend. Every file is reviewed individually by the lender, and the program figures are ceilings and floors, never offers.
What “Asset-Based Purchase” Means Here
An asset-based purchase is a home loan qualified on your balances rather than a paycheck. It has nothing to do with buying a business’s assets. Michigan sellers searching this phrase often land on business-acquisition tax pages, so the distinction is worth stating up front.
This reader is usually cash-heavy and income-light. Think of a retiree, someone who just sold a business, a household living off a portfolio, or an owner who sold a house and has not yet bought the next one. Balances are large. Documented income is small or gone.
Two paths exist, and a borrower is on one at a time. On the asset qualifier path, eligible assets, after the credit percentages, must equal or exceed the entire loan amount. No employment or income is documented. On the asset depletion path, eligible assets are reduced by a haircut, divided by 60 months, and the result is monthly qualifying income. That income carries the housing payment and other debts through the debt-to-income test.
One line to remember: no income documentation never means no documentation. The assets are verified on both paths.
Seasoning on Each Path, Side by Side
Seasoning is the period money has been in your account before the lender counts it. The two paths measure it differently, so never blend them.
| Factor | Asset qualifier path | Asset depletion path |
|---|---|---|
| What the assets do | Cover the whole loan | Become monthly income |
| Statements | Two months per account | 120+ days old, plus one within 45 days |
| Seasoning | 60 days | Via the statement ages |
| Excused sources | None published | Business sale, inheritance, settlement |
| Credit | 600 minimum | Lender’s matrix |
All figures are typical of select programs in the network and subject to underwriting.
Notice what is missing from the excused list: a home sale. Nothing published says home-sale proceeds skip the depletion path’s statement ages. In practice, a documented home sale with a clean settlement statement is easier for an underwriter to accept than a mystery deposit. But “easier to accept” and “excused” are different things.
Do Sale Proceeds Follow the Standard Clock?
Usually yes, with one important exception. On the qualifier path, proceeds that land in your account are treated like any other deposit. They need two months of statements, and the underwriter will want the deposit explained. On the depletion path, sale-of-business proceeds are excused from the seasoning requirement. Inheritance and legal-settlement funds are too.
Why do lenders season money at all? Two reasons. They want to see that the funds are really yours, and they want to catch money that is borrowed, gifted or parked for a few days. A large deposit with no history raises both questions.
A sale closing answers both questions on paper. The settlement statement shows the net cash, and the wire shows where it went. When the two tie out, the deposit is sourced. That is why the clock matters most when the trail is messy.
Here is the contradiction you may have noticed online. Some pages say sale proceeds are exempt from seasoning. Others say real-estate sale proceeds are ineligible. Both can be true because they describe different programs. Agency-style rules often treat sale proceeds as a documentation test. Non-agency programs set their own seasoning and eligibility. Across Lendmire’s network, the answer turns on the path, the sale type and the lender’s overlay.
Proceeds by Sale Type
The same dollars can season differently depending on where they came from. This table covers the common cases for a Michigan seller.
| Sale type | Where it stands | Paper to expect | Common snag |
|---|---|---|---|
| Home sale | Follows the path’s clock | Settlement statement, statements | Deposit split across accounts |
| Business sale | Excused on depletion path | Sale documents, statements | Funds left in business account |
| Inheritance or settlement | Excused on depletion path | Award or estate papers | Funds not yet in your name |
| 1031 exchange funds | Held by intermediary | Exchange agreement | Funds never reach your account |
On the qualifier path, none of these sources is published as excused. Subject to underwriting, plan on the 60-day window.
Business sales deserve a second look. The business account belongs to the business. The program counts only the borrower’s ownership share of business accounts, so proceeds sitting in a company account may not count in full. Moving them to your personal account and documenting the move is the cleaner route.
A Day-by-Day Timeline, Without Promises
Seasoning clocks start when the money lands, not when the contract is signed. Here is how the sequence usually runs on a home sale.
1. The sale closes. The settlement statement shows the net proceeds.
2. The wire arrives. The title company or escrow agent sends the net cash to your account. Funds should go into an account titled in your name.
3. The statement cycle turns. The deposit first appears on the next statement. This is the part borrowers miss. A deposit made mid-month may not show on a statement until the cycle closes.
4. The seasoning window runs. On the qualifier path, you need two months of statements and 60 days of seasoning. On the depletion path, the statement must be at least 120 days old at application, plus one within 45 days.
5. The underwriter ties it out. The deposit amount should match the net figure on the settlement statement.
For Michigan sellers, the title company or escrow agent handles disbursement. Whether proceeds come by wire or check, deposit them into your own account and keep the statement. These program figures do not change by state. State facts such as taxes or local prices are context only. Ask your title agent how and when they will disburse, because the answer shapes the first line of your paper trail.
Where Most Borrowers Slip Up
Three mistakes reset or complicate the picture.
Shuffling accounts. Moving money between your own accounts creates documentation requests. Each move is a new deposit the underwriter may ask you to explain. Pick the account and leave it alone.
Counting the same dollars twice. Funds used for the down payment and closing costs cannot also count as assets for qualifying. The same dollars cannot serve two jobs. Plan the down payment, closing costs and qualifying balance as separate line items.
Counting assets that are not on the list. Cryptocurrency, precious metals, collectibles, pledged or borrowed funds and business accounts beyond your ownership share are not published as eligible on either path. Cash on hand, foreign funds, escrow accounts, custodial accounts and stock options are also off the depletion path’s list. The documented route is converting these to a seasoned cash balance in a regulated account, with the source reviewed by the lender. Not ideal if you are watching a calendar.
Cash-out refinance proceeds deserve a separate warning. On the depletion path, cash-out proceeds never count as qualifying assets. A refinance is not a sale.
What to Do With the Cash While You Wait
Parking the money matters because each choice changes what counts.
- Cash and CDs in a regulated account count at 100% on both paths. This is the simplest holding place while the clock runs.
- Brokerage and securities count at 100% on the qualifier path and 80% on the depletion path. Moving proceeds into securities raises market risk, and on the depletion path it trims what counts.
- Retirement accounts count at 90% under age 59½ and 100% at 59½ or older on the qualifier path. On the depletion path they count at 70% at any age.
- Paying down debt reduces your balance. That can help the debt-to-income picture on the depletion path, but it also shrinks the pool of usable assets.
Is it smarter to reinvest first or hold cash? It is a genuine tradeoff. Cash keeps the paper trail simple. Reinvesting may earn more, but each transfer adds a deposit to explain. For most sellers, a short pause in cash is the cleaner file.
A Worked Example
Picture a Michigan homeowner who sells a house and moves the net proceeds into a cash account. Say she holds $1,500,000 in securities and $300,000 in cash. Assume she is on the asset depletion path.
- Securities count at 80%, so $1,500,000 becomes $1,200,000.
- Cash counts at 100%, so $300,000 stays $300,000.
- Usable assets total $1,500,000.
- Divide by 60 months for $25,000 of monthly qualifying income.
That income then carries the housing payment and other debts through the debt-to-income test. The lender’s own calculation governs, and the example is illustrative, not an offer.
Now run the same borrower on the asset qualifier path. Eligible assets must cover the whole loan, and no income is documented. For this path the program counts brokerage, CDs, money market and savings at 100%. The right path depends on loan size. A smaller loan against the same assets may fit the qualifier path, while a larger loan may need the depletion path’s income test.
Leverage differs too. On the qualifier path, the program allows up to 80% loan-to-value on a purchase and 75% on a refinance for a principal residence or second home. An investment property allows up to 65% on a purchase. A first-time investor on the depletion path needs a 700 credit score, and the depletion path requires qualified assets of at least the lesser of $1,000,000 or 1.25 times the loan balance. It also never goes below $250,000 liquid when asset depletion is the only income source. The exact numbers vary by lender and program and follow a full review of property, leverage, and credit.
For investors who want rental income to carry the loan instead, that is a different product. Business-purpose rental financing is DSCR. Lendmire’s complete DSCR loans guide covers that lane.
Buying Before the Sale Closes
Can you buy before the sale closes? That is the question many sellers ask. The honest answer: anticipated proceeds are not the same as proceeds in your account. Within these programs, the assets must be documented in your accounts with statement history. A lender may weigh a pending sale differently, but plan as if only realized, seasoned funds count.
For comparison, the agency lane is stricter in spirit. Fannie Mae’s Selling Guide on sales of personal assets requires that the buyer not be a party to the mortgage transaction. That is an agency rule, and agency rules do not govern this program. The useful takeaway is the arm’s-length idea. A sale to a relative can draw extra questions, so expect them.
Sellers paired with a 1031 exchange face a different clock. The qualified intermediary holds the proceeds, not you, so they do not sit in your account and do not season there. The IRS sets a 45-day identification deadline and an 180-day exchange period, as the California Lawyers Association explains. Those are tax-code deadlines, separate from any lender window. The loan plan must fit inside them.
Tax treatment varies; consult a qualified professional.
Key Terms Defined
Seasoning: the length of time money has been in your account before a lender counts it.
Sourcing: documenting where a deposit came from, such as a sale, an inheritance or a settlement.
Settlement statement: the closing paper that shows the net cash from a property sale.
Usable assets: the share of each balance that counts after the credit percentages or haircuts.
Qualified intermediary: the third party that holds proceeds during a 1031 exchange, so the seller never touches them.
Your Pre-Application Checklist
- Gather the settlement statement and the wire confirmation.
- Keep proceeds in one account titled in your name.
- Pull the last two months of statements for every qualifying account.
- Avoid moving money between accounts without a reason you can document.
- Decide which path fits: assets cover the loan, or assets become income.
- Check the credit score against the path. The qualifier path has a published floor of 600, while the depletion path follows the lender’s matrix.
Lendmire’s piece How to Qualify on Home-Sale Proceeds Using an Asset Depletion Mortgage covers the qualifying side in more depth.
Frequently Asked Questions
How long do home-sale proceeds need to sit before I apply?
On the asset qualifier path, typically 60 days of seasoning with two months of statements per account. On the asset depletion path, statements must be at least 120 days old at application, plus the most recent one within 45 days. These are select-program figures, subject to underwriting.
Are business-sale proceeds treated differently from a home sale?
Yes, on the depletion path. Sale-of-business, inheritance and legal-settlement funds are excused from that seasoning. A home sale is not on the excused list. On the qualifier path, no excused sources are published.
Can I move the proceeds into a brokerage account first?
You can, but each transfer is a new deposit the underwriter may ask about. Brokerage balances count at 100% on the qualifier path and 80% on the depletion path. Many sellers keep the money in cash until the file is in.
Do cash-out refinance proceeds count as sale proceeds?
No. A refinance is not a sale, and on the depletion path cash-out proceeds never count as qualifying assets. Borrowed and pledged funds are not published as eligible on either path.
Does buying in Michigan change the seasoning rules?
No. The program figures do not change by state, and Lendmire’s consumer lending is licensed in Michigan among 16 states. Expect the same statement windows a borrower elsewhere would see, subject to underwriting.
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. As a broker, it arranges the loan through select lenders in its network. The lender reviews and decides, and nothing here is a commitment to lend. You can reach the team at 828-256-2183.
Michigan sellers who give the paper trail a few extra weeks of attention usually find the file reads cleanly, because the seasoning clock rewards the borrower who changes the least.
Lendmire’s asset-based mortgage in Michigan page presents the program for Michigan borrowers.
About Lendmire
Lendmire is a mortgage brokerage (NMLS# 2371349) licensed for consumer mortgage lending in 16 states, arranging bank statement and other alternative-documentation mortgages — P&L-only, 1099-only and asset-based paths — through a wholesale lending network. Eligibility is determined by the lender on each file. Scotsman Guide named Lendmire a Top Mortgage Workplace in both 2025 and 2026.
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References
1. Fannie Mae Selling Guide: Sale of Personal Assets
2. California Lawyers Association: What Is a 1031 Exchange?
This article is part of Lendmire’s asset-based mortgage program — full qualification details, guidelines, and scenarios live on the program page.
Related reading: Savings Account vs Brokerage Account: Which Counts More on an Asset-Based Mortgage? · Do Cash-Out Proceeds Count as Assets on an Asset Depletion Refinance? · What Counts as an Asset Statement 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.