The Quick Read: It depends on which asset path you use, because on the asset qualifier path your funds generally need 60 days of seasoning with two months of statements per account, while on the asset depletion path your statements must be at least 120 days old, with sale-of-business funds excused from that wait. The asset qualifier path covers the whole loan with your assets and documents no income. The asset depletion path turns your assets into monthly qualifying income. Home-sale proceeds are not a listed exception in the program figures Lendmire works from, so plan on the standard clock unless the lender confirms otherwise in writing.
- Qualifier path: 60 days of seasoning, plus two months of statements for each qualifying account.
- Depletion path: statements at least 120 days old at application, plus one statement within 45 days.
- Excused on the depletion path: sale-of-business, inheritance and legal-settlement funds.
- Not counted anywhere until released: money still sitting in escrow or held by a third party.
- Same rules in Indiana as elsewhere: the program figures do not change by state, and all of them are subject to underwriting.
This article is for cash-heavy, income-light buyers: someone who just sold a house, a business, or a rental and wants to buy the next home with those assets. Indiana is one of the 16 states where Lendmire is licensed for consumer mortgage lending. Lendmire is a broker, so it arranges these loans through select lenders in its network rather than lending directly. Every figure below is a typical program ceiling or floor, never an offer.
Key Terms Defined
Seasoning: the length of time money has to sit in your account before a lender counts it as yours.
Sourcing: proof of where a deposit came from, such as a settlement statement for a sale. Seasoning is about age. Sourcing is about origin.
Asset qualifier path: the route where eligible assets, after the credit percentages, must equal or exceed the entire loan amount. No employment or income is documented.
Asset depletion path: the route where usable assets, divided by 60 months, become a monthly qualifying income that runs through the debt-to-income test.
Haircut: the share of an asset’s balance that the lender does not count. A balance counted at 80% has a 20% haircut.
Usable assets: the balance that remains after haircuts and after money set aside for the purchase itself.
Why Do Lenders Season Funds at All?
Lenders season funds to confirm the money is yours and not a short-term loan that disappears after closing. A balance that has sat in a regulated account for weeks tells the underwriter something a fresh deposit cannot.
A sale of property or a business creates a legitimate reason for a large deposit. That is why sale proceeds get different treatment from an unexplained transfer. A settlement statement ties the deposit to a real event, and that paper trail answers the sourcing question even when the seasoning clock has not run.
It does not automatically answer the seasoning question. Across the wholesale network, the programs differ here. Some excuse certain sale proceeds from the clock. Others apply the standard window to everything. The lender’s current guideline decides, and every file is underwritten individually.
How Does the Clock Work on Each Path?
On the asset qualifier path, the clock is 60 days with two monthly statements per qualifying account. On the asset depletion path, your statements must be at least 120 days old when you apply, and you also need the most recent statement within 45 days. Both paths document the assets in full. Skipping income documentation never means skipping asset documentation.
Asset qualifier path. The 60 days run on the money, so the sale proceeds need to be on statements for that long. Two statement cycles usually show it. Funds from a home sale deposited this month generally cannot be counted this month. This path is available on purchases up to 80% loan-to-value and on refinances up to 75%, on a principal residence or second home, with loan amounts up to $4,000,000 through select programs. The credit floor is 600, subject to underwriting.
Asset depletion path. The 120-day statement rule is the longer runway. You need a statement at least 120 days old, plus a recent one within 45 days, so the account has a visible history. Sale-of-business, inheritance and legal-settlement funds are excused from that seasoning. Home-sale proceeds are not on that excused list in the figures we use. A documented home sale may still be accepted by a particular lender, but do not count on it.
For a first-time investor on this path, the credit score needed is 700. Otherwise the lender’s matrix sets the score. Investment property carries lower leverage on this path (65% on a purchase or rate-and-term refinance, 60% on a cash-out). A principal residence or second home can go to 80% on a purchase or rate-and-term refinance and 60% on a cash-out refinance. Cash-out proceeds never count as qualifying assets.
Seasoning by Proceeds Type
The source of the money changes what the lender asks for. This table summarizes how we see each type handled across the network, subject to the lender’s current guidelines.
| Proceeds source | What ties it to the sale | Common snag |
|---|---|---|
| Home or property sale | Settlement statement plus bank deposit | Not a listed exception on depletion path |
| Business sale (depletion path) | Sale agreement, wire record, statement | Excused from seasoning on this path |
| Business sale (qualifier path) | Same paper trail | Standard 60 days applies unless confirmed |
| Funds held in escrow | Release letter, then deposit | Escrow is not eligible until released |
| Retirement rollover | Statements showing the transfer | Haircut: 70% depletion, 90-100% qualifier |
| Brokerage liquidation | Trade confirmations, then deposit | Securities counted at 80% on depletion path |
Notice what is missing. Foreign funds, custodial accounts, deferred compensation, stock options and unvested restricted stock units are not eligible on the depletion path. Cryptocurrency, precious metals, collectibles, and pledged or borrowed funds are not published as eligible on either path. The documented route is to convert them into a cash balance in a regulated account, with the lender reviewing the source. Business accounts count only to the extent of your ownership share, and the lender decides how.
Which Documents Tie the Deposit to the Sale?
Four items do most of the work: the final settlement statement, the matching bank statement, a short letter explaining the deposit, and the sale agreement for a business. If you follow these four, most sourcing questions answer themselves.
1. The final settlement statement. The draft version is not enough. You want the signed final document that shows your net proceeds.
2. The bank statement showing the deposit. The net figure on the settlement statement should match the deposit. A wire confirmation helps, but the funds still have to appear on a statement.
3. A letter of explanation. Two or three sentences saying what the sale was and where the money went. Keep it plain.
4. For a business sale, the purchase agreement and a prior-account statement. A seller note or earn-out is not cash yet, so it does not count as an eligible balance until it is paid and sitting in your account.
Keep the deposit in one regulated account in your own name. Money moving between several accounts creates more lines for the underwriter to trace, and each transfer is one more thing you may be asked to explain.
A Worked Timeline
Picture a retired couple who sell their house and plan to buy a smaller one in Indiana. These are modeled assumptions in days and months, not dollars.
Qualifier path. The sale closes on day zero. The net proceeds land in a savings account within a day or two. They need 60 days of seasoning and two monthly statements, so they wait through two statement cycles. If they apply at about day 60, the first statement shows a partial month, and the second shows the funds sitting in full. The application can then include both statements plus the settlement statement. If they apply at day 20, the lender will most likely ask them to wait or to show other seasoned assets that cover the loan.
Depletion path. Suppose the same couple also holds a brokerage account and uses the depletion path. The sale proceeds, being home-sale funds, are not on the excused list. They would need a statement at least 120 days old showing those funds, plus a recent one within 45 days. That is roughly four months of waiting. If a different asset, such as an older brokerage account, already has a statement more than 120 days old, the recent deposit may not be needed at all. The lender’s own calculation governs what counts.
The early-applicant branch. Applying early is not a denial. It triggers a request for more paper, and in practice it often means the file waits until enough statements exist. That wait is a seasoning plan, not a closing-time estimate.
Seasoning Versus Counting
Passing the seasoning test is only half the job. After that, the lender decides how much of the balance counts, and that is a separate question.
On the qualifier path, the credit percentages apply. Here is the shape of the math, which is illustrative, and the lender’s own calculation governs. An $800,000 loan with $330,000 in brokerage accounts (100% = $330,000), $300,000 in a 401(k) under age 59½ (90% = $270,000) and $200,000 in savings (100% = $200,000) counts $800,000 of usable assets and is reviewed on assets alone. Accounts combine, and there are no required reserves at or below 75% loan-to-value.
On the depletion path, the haircuts apply, then the divisor. 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 must then carry the housing payment and other debts through the debt-to-income test. Qualified assets generally need to be at least the lesser of $1,000,000 or 1.25 times the loan balance, and never below $250,000 liquid when depletion is your only income source. For the full picture of these programs, see Lendmire’s complete DSCR loans guide for how asset-based and rental-income loans differ.
Two points matter here. First, sale proceeds count as assets. They do not count as income. Second, the same dollars cannot do two jobs. Money you plan to use for a down payment or closing costs is generally set aside before the lender measures what is left, and how that netting works is set by the lender.
Money you owe on the sale is not money you have. Tax treatment varies; consult a qualified professional.
Is There a Federal Rule Setting the Waiting Period?
No. Federal ability-to-repay rules require a lender to verify any assets it relies on using third-party records that give reasonably reliable evidence, but the eCFR text of the rule does not set a number of days the money must sit. The waiting period is a lender and program choice. That is why the figures differ between programs and why a single published number is never the last word.
Agency rules work differently, and they are a separate world. The Fannie Mae Selling Guide treats a single deposit above 50% of monthly qualifying income as a large deposit, reviewed over typically two months of statements. That is how an agency loan handles it. It does not describe the asset-based programs here, which follow the lender’s own overlays.
The Indiana Angle
Nothing in the program changes because the property or the borrower is in Indiana. The leverage limits, the asset percentages and the statement rules are the same ones described above, all subject to underwriting. State facts such as local prices are context, never program terms.
What does matter in practice is the sale side. The title company that closes your sale produces the settlement statement and releases your net proceeds. Ask for the final statement as soon as it is issued, and have the proceeds sent to the regulated account you plan to use for the purchase. If part of the sale price is held back for any reason, that portion does not count until it reaches your account.
If your goal is a pure rental purchase rather than a home you will live in, a different route may fit better. Business-purpose rental financing is DSCR, which qualifies primarily on property-level rental income covering the payment, subject to lender guidelines. Select lenders in the network offer programs below 1.00 coverage, with leverage and terms adjusted accordingly. If you want to see how a sale-proceeds file looks in practice, Lendmire’s piece Can Sale Proceeds Alone Qualify You for an Asset Depletion Loan? goes deeper on that question.
Mistakes That Stall Files
Most delays come from paper, not from the borrower’s finances. These are the ones we see most often.
- Applying before the second statement exists. The lender cannot count a month that has not happened yet.
- Sending a wire receipt instead of a statement. The receipt helps, but the balance has to show on a statement.
- Spreading proceeds across several accounts. Every transfer is another explanation to write.
- Leaving funds in a business account. Only your ownership share counts, so move the money to a personal regulated account early, with the source documented.
- Counting the same dollars twice. A balance cannot serve as both the down payment and the asset base.
- Assuming a home sale is excused. On the depletion path, only sale-of-business, inheritance and legal-settlement funds are excused from the 120-day statement rule.
- Waiting to ask. Large deposits are easiest to handle when the lender sees the sale paper at the start, not as a late condition.
For borrowers whose proceeds came from a house, Lendmire’s article How to Qualify on Home-Sale Proceeds Using an Asset Depletion Mortgage covers that situation in more detail.
Frequently Asked Questions
Can I buy before my own sale closes and count the proceeds?
No. Proceeds count only after they are released and sitting in your account, with a settlement statement behind them. Money still held in escrow is not eligible on the depletion path. If the purchase cannot wait for your sale, the usual answer is to show other seasoned assets that cover the file, which the lender reviews through underwriting.
Does moving the money between my own accounts restart the clock?
It can complicate the file even when the dollars are the same. Each transfer needs to be traceable, and the destination account needs its own statements. The safest approach is to deposit the proceeds once, into the regulated account you plan to use, and leave them there.
Can sale proceeds paid into my LLC or business account count?
Business accounts count only up to your ownership share, and the lender decides how that is measured. The documented route is to move the funds into a personal cash balance in a regulated account, with the source reviewed by the lender. Subject to program terms, do that early.
What if I only sold part of my business?
A partial sale or a distribution needs the same paper as a full sale: the agreement, the payment record and the statement. On the depletion path, sale-of-business funds are excused from seasoning. On the qualifier path, expect the standard 60 days unless the lender confirms an exception for your file.
Do I need a different credit score if the money is seasoned?
Seasoning does not change the credit rules. The qualifier path has a 600 minimum score, and the depletion path follows the lender’s matrix. A first-time investor on the depletion path needs 700. All of it is subject to underwriting, and nothing here is a promise of approval.
Next Steps
Gather these before you talk to anyone: the final settlement statement, the last two statements for every account you plan to use, the sale agreement if it was a business, and a short note on what each large deposit was. With those in hand, the path question (assets cover the loan, or assets become income) usually answers itself.
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.
Lendmire’s asset-based mortgage in Indiana page presents the program for Indiana borrowers.
About Lendmire
Lendmire — NMLS# 2371349 — is a mortgage broker that arranges bank statement, P&L-only, 1099-only and asset-based home financing in 16 states through wholesale lenders, on primary residences, second homes and investment properties. Every option is subject to the lender’s guidelines and full underwriting. Scotsman Guide named Lendmire a Top Mortgage Workplace in both 2025 and 2026.
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References
1. eCFR, 12 CFR 1026.43 — Minimum standards for transactions secured by a dwelling
2. Fannie Mae Selling Guide, B3-4.2-02 Depository Accounts
This article is part of Lendmire’s asset-based mortgage program — full qualification details, guidelines, and scenarios live on the program page.
Related reading: Is an Asset-Based Mortgage Reported to Credit Bureaus Like Any Other Mortgage? · How Much Down Payment Does an Asset Depletion Jumbo Loan Need? · Can You Get an Asset Depletion Mortgage After a Foreclosure or Short Sale?
Guides: Asset-Based Mortgage in Indiana
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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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.