Asset Depletion Refinance in Arizona 2026: Qualify on Your Savings, Not a Paycheck

An asset depletion refinance lets an Arizona homeowner qualify using their savings and investment accounts instead of a monthly paycheck. If you are retired, recently sold a business, or live off your portfolio, this is often the cleanest way to refinance when your tax returns do not show much income. It is a program we place through several wholesale lenders at pillarmortgagegroup.com, and it solves a very common Scottsdale problem: plenty of home, plenty of assets, not much reportable income.

How does an asset depletion refinance work in Arizona?

The lender takes your eligible liquid assets and spreads them across a set number of months to create a theoretical monthly income. That calculated figure is what qualifies you, even if you draw nothing from those accounts in real life. Depending on the program, assets get divided over roughly 60 to 360 months. So a borrower with a large brokerage or retirement balance can show a strong monthly number without a W2 or a pile of tax returns. This is a Non-QM approach, which means it lives outside standard conventional rules, and different lenders count assets differently. That is where working with a broker who shops it matters.

Who is a good fit for an asset based refinance?

Retirees are the classic example. Many Phoenix and Scottsdale homeowners deliberately keep reportable income low for tax reasons, then get denied on a conventional refinance because the paperwork does not reflect their real financial strength. Self-employed owners who write income down, investors between deals, and anyone recently liquid from a sale all fit the same profile. If you have significant assets but a thin income picture, this program was built for you.

Can you do a cash-out refinance with asset depletion?

Yes. Asset depletion works for both a rate-and-term refinance, where you simply lower your rate or change your loan term, and a cash-out refinance, where you pull equity out as cash. That flexibility is a big reason retirees like it. You might refinance to drop your payment, or tap equity to fund a renovation or cover expenses, all while qualifying on assets. With Arizona 30 year fixed rates sitting around 6.75 percent in August 2026 according to Zillow, some homeowners who bought at higher rates are finding the math works again.

What do you need to qualify in 2026?

Credit matters more here than on a standard loan because income is inferred rather than documented. Most asset depletion programs want a credit score in the 640 to 700 range or higher, along with verified, seasoned assets in accounts you control. Rates run close to conventional, often only slightly higher, so the tradeoff for skipping income documentation is usually modest. Every lender sets its own asset divisor and reserve rules, which is why two lenders can quote the same borrower very differently. If you want to compare your options against buying instead, you can browse current Valley listings at Arizona Luxury Property Search.

Frequently asked questions

What accounts count for an asset depletion refinance?
Lenders generally count liquid or near liquid assets you fully own, such as checking and savings, brokerage accounts, and retirement funds. Retirement accounts may be counted at a reduced percentage, especially if you are under 59 and a half. Real estate equity, business accounts, and restricted funds usually do not count. Every program draws the line a little differently.

Do you have to withdraw the money to qualify?
No. The lender only uses your balances to calculate a qualifying income on paper. You are not required to liquidate or actually spend down the accounts. The assets stay invested and working for you while they help you qualify.

Is an asset depletion refinance more expensive than a conventional one?
Usually only slightly. Rates tend to sit a bit above conventional pricing because it is a Non-QM product, but for a retiree or self-employed Arizona homeowner who cannot document enough income, it often beats being denied altogether. Comparing offers across several lenders keeps the cost down.