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Avalon sits on Catalina Island — a market built around cash-heavy buyers, retirees, and second-home owners. Traditional income docs often don't match how these buyers actually live.
Asset depletion loans convert your liquid holdings into qualifying income. No W-2 required. No pay stubs. Just assets on paper.
Varies by lender
Min Credit Score
60–84 months
Asset Term Used
None
Income Docs Required
20%–30%
Typical Down Payment
30–45 days
Est. Close Time
Asset Depletion Loans in Avalon
Lenders divide your eligible liquid assets by a set number of months — typically 60 to 84. That monthly figure becomes your qualifying income.
Eligible assets usually include checking, savings, brokerage accounts, and retirement funds at a discount. Illiquid assets like real estate equity don't count.
Local decision guide
Use this guide to connect asset depletion loans eligibility, lender expectations, and local market factors before comparing payment options in Avalon.
Avalon sits on Catalina Island — a market built around cash-heavy buyers, retirees, and second-home owners. Traditional income docs often don't match how these buyers actually live.
Asset depletion loans convert your liquid holdings into qualifying income. No W-2 required. No pay stubs. Just assets on paper.
Lenders divide your eligible liquid assets by a set number of months — typically 60 to 84. That monthly figure becomes your qualifying income.
This is a non-QM loan. Most retail banks don't offer it. You need a broker with access to wholesale non-QM lenders — that's where options actually exist.
We shop across 200+ wholesale lenders from SRK CAPITAL. Non-QM pricing varies widely. One lender's rate can be a full point higher than another's for the same file.
The most common mistake: borrowers think any assets count. Lenders want liquid, documented, and seasoned funds — usually 60 days of statements minimum.
Avalon properties also face island-specific underwriting. Some lenders add overlays for Catalina due to limited comparable sales and ferry-dependent access. Not every non-QM lender will touch it.
If you have 24 months of business bank statements, a Bank Statement Loan might produce higher qualifying income than asset depletion. It depends on your deposit volume.
For pure retirees or passive investors with no business income, asset depletion is usually cleaner. Fewer docs, no income narrative to defend.
Avalon is one of California's most unique mortgage markets. It's an island city with no cars, limited inventory, and buyers who often pay cash or carry significant wealth.
That buyer profile fits asset depletion perfectly. The challenge is finding a non-QM lender comfortable with Catalina's appraisal environment. We know which ones are.
Checking, savings, and brokerage accounts typically qualify. Retirement accounts count at a reduced value, usually 60%–70%.
Yes, but lender appetite varies. Catalina's island location limits which non-QM lenders will approve the file.
Lenders divide total eligible assets by a set term — often 60 to 84 months. That figure is your monthly qualifying income.
No. Asset depletion loans don't require employment. Your assets carry the file instead of a job.
The income calculation is the same. The property location adds underwriting complexity — fewer lenders approve island properties.
Expect 30–45 days. Non-QM underwriting takes longer than conventional, especially with island property appraisals.