Some companies on this page pay Smarts when you click or apply. That can affect which companies appear and where. It never changes our ratings.
Getting a home equity loan with bad credit is hard, because most lenders look for a credit score of at least 680 for a home equity loan or HELOC and the more lenient ones stop at about 620, according to Experian. Below that line, the realistic routes are a home equity agreement (a different product, with no monthly payment and minimum credit scores that start at 500), an FHA cash-out refinance, a co-signer or co-borrower with stronger credit, or raising your score before you apply.
This guide shows what opens up at each credit score, which states each option covers, what it costs and what to watch for. Every minimum below was read on the company's own website on October 6, 2026. A minimum score gets your application looked at. It does not mean you will be approved. For the other ways to use the equity in your home, see our home equity guides.
Home equity options by credit score
Find your score in the left column. Each row adds to the rows above it, so a 610 score has everything listed from 500 to 619.
| Your credit score | What opens up | What it is | Worth knowing |
|---|---|---|---|
| Under 500 | None of these | No product | Every company on this page publishes a minimum of 500 or higher, and FHA does not insure mortgages for scores under 500. Work on the score first. |
| 500 to 574 | Unlock, Point, Splitero and Nada | Home equity agreement, no monthly payment | Each also sets rules on equity, property type, lien position and recent bankruptcy or foreclosure. FHA's own rules allow a cash-out refinance from 500, though a lender could ask for more. |
| 575 to 599 | Adds Hometap | Home equity investment, no monthly payment | Hometap lists a minimum FICO score of 575 and at least 25% equity in your home, for a property located in an eligible state, among other qualifying criteria. |
| 600 to 619 | Adds Figure | HELOC, with monthly payments | Figure's FAQ lists a minimum required credit score of 600 in most states, for qualifying loans. The lowest band in its rate calculator is 640 to 659. |
| 620 to 639 | Adds Unison and the more lenient home equity lenders | Equity sharing agreement, or a home equity loan or HELOC | Unison generally needs a mid-FICO score of at least 620 and evaluates income. Experian says some home equity lenders set their minimum at 620. |
| 640 to 679 | The first score bands in Figure's rate calculator | HELOC, with monthly payments | 640 to 659 is the lowest band the calculator offers, then 660 to 699. Your rate depends on your credit profile. |
| 680 and up | Most home equity lenders | Home equity loan or HELOC | 680 is the minimum most lenders look for, according to Experian. Stricter lenders want 720. |
Minimums as published by each company on October 6, 2026. Hometap and Unison state theirs as FICO scores. None of these minimums is a promise of approval.
Estimate what you could get with our home equity calculator, then use the tables below to see which companies match your score and your state.
Can you get a home equity loan or HELOC with bad credit?
Sometimes, but the bar is higher than most people with damaged credit can clear. Experian says most lenders want a FICO Score of at least 680 for a home equity loan, that some set their minimum at 620, and that approval can be challenging below 620. Lenders also check your income, your debt-to-income ratio and how much equity you have.
There are exceptions. Figure lists a minimum required credit score of 600 in most states for its HELOC, for qualifying loans, and the lowest score band in its online rate calculator is 640 to 659. If your score is in the 600s, check that before you assume a loan is off the table.
If your score is under about 620, four routes are realistic.
1. A home equity agreement
A home equity agreement, also sold as a home equity investment or an equity sharing agreement, is a different product from a home equity loan. A company gives you a lump sum now. In exchange it receives a share of your home's future value, or of its future appreciation, when you sell, refinance or buy the company out. There are no monthly payments.
Because eligibility leans on the home more than on your income, the published minimum credit scores are much lower: 500 at Unlock, Point, Splitero and Nada, and a FICO score of 575 at Hometap. The trade is real, though. What you owe at the end is tied to what the home is worth, it could be far more than the cash you received, and there is a deadline to settle. The cost section walks through it.
2. An FHA cash-out refinance
An FHA cash-out refinance replaces your current mortgage with a new, larger FHA-insured mortgage and pays you the difference in cash. FHA's own floor is a credit score of 500. HUD's rules say borrowers under 500 are not eligible for FHA-insured financing and borrowers from 500 to 579 are limited to 90% loan-to-value. Cash-out refinances are capped lower still, at 80% of the home's value, so equity worth at least 20% of the home's value has to stay in the home.
Two cautions. FHA insures these mortgages but lenders make them, and a lender could set a higher minimum score than FHA does, so ask before you apply. And because the whole mortgage is replaced, you give up your current interest rate, which hurts if it is lower than today's rates.
3. A co-signer or co-borrower
If someone with stronger credit applies with you, a lender may approve a home equity loan or HELOC that you would not get alone. Ask each lender whether it allows this. The person helping you takes on real risk: the FTC warns that a co-signer may have to pay up to the full amount of the debt if the borrower does not, and that the creditor can report the loan as the co-signer's own debt.
4. Raising your score first
If you are close to the next row in the table, a few months of work could open a cheaper option. What moves a score in 30 to 90 days is covered below.
Best fit by credit score: five companies to check
These are the companies with the lowest published minimums, the reader each one fits and the catch to know about. All figures come from each company's own website.
Why it fits: a home equity agreement with a minimum credit score of 500 and no income requirement. Unlock pays a lump sum for a portion of your home's future value, the application uses a soft inquiry that does not affect your credit score, and you can buy Unlock out in partial payments during the term.
The catch: you need at least 30% equity and no bankruptcy or foreclosure in the past five years, and the agreement has to be settled within 10 years. A 4.9% origination fee comes out at closing.
Why it fits: a home equity investment with a minimum credit score of 500. You receive a lump sum for a share of your home's value when you exit, Splitero says it will not ask for any documentation about employment or income, and the term runs as long as your senior mortgage, from 10 up to 30 years.
The catch: it operates in select areas of 17 states, the home has to appraise between $200,000 and $5,000,000, and a foreclosure in the last seven years or a Chapter 7 bankruptcy in the last four rules you out. A hard credit check comes with the full application, and the origination fee is 4.99%.
Why it fits: a home equity investment with a minimum credit score of 500, no monthly payments and no income requirements. You get a lump sum in return for a portion of your home's future appreciation, the term is 30 years, and the waiting period after a Chapter 7 bankruptcy is two years.
The catch: Point says better credit generally results in more favorable pricing, and that your score influences your maximum offer, your HEI percentage and your Homeowner Protection Cap. It serves select regions, and the processing fee is 3.9% with a $2,000 minimum, deducted at closing.
Why it fits: a home equity investment that could be an option if your FICO score is 575 or higher and you have at least 25% equity in your home, provided the property is located in an eligible state, among other qualifying criteria. There are no monthly payments, Hometap lists no income or employment requirements, and manufactured homes are among the property types it invests in.
The catch: the investment has to be settled within 10 years, and Hometap earns an agreed percentage of the home's value at that point, which could be far more than the cash you received. Its 4.5% fee, up to $20,000, is deducted from your investment proceeds.
Why it fits: a HELOC, which is a loan with monthly payments. Figure's FAQ lists a minimum required credit score of 600 in most states, for qualifying loans, and the first band in its rate calculator is 640 to 659, so a score in the 600s may not need an agreement at all. Checking your rate is a soft credit pull that does not affect your credit score.
The catch: Figure verifies income and employment, and submitting an application brings a hard credit pull. Available initial APRs ran from 7.35% to 14.85% on October 6, 2026, with the lowest reserved for the most qualified applicants, and the origination fee is up to 4.99% of the initial draw. Hawaii and New York are not on its availability list.
Two more companies appear in the tables below. Nada has a minimum credit score of 500 and covers 12 states here, including Arkansas, Louisiana and Oklahoma, where it is the only one of the six. Unison generally needs a mid-FICO score of at least 620.
More: Every home equity agreement company compared
A minimum score is not an approval: what else each company requires
Your credit score is one test of several. Equity, the type of property, where the new lien would sit and any recent bankruptcy or foreclosure matter just as much, and each company draws those lines in a different place.
| Company | Minimum credit score | Equity, value and property | Bankruptcy and foreclosure |
|---|---|---|---|
| Unlock | 500 | At least 30% equity. Home value of $175,000 or more. No greater than second lien position. Single-family homes, condos, townhomes and 2 to 4 units, as a primary residence, second home or rental. No manufactured homes. | None in the past five years, including short sales and deeds in lieu. No more than one 90-day mortgage delinquency in the prior 24 months. |
| Splitero | 500 | Appraised value of $200,000 to $5,000,000. Up to 25% of the home's value. Recorded behind your mortgage, or first if you have none. Single-family homes, condos, townhomes and 2 to 4 units. No manufactured homes. | No Chapter 7 in the last four years. Chapter 13 needs two years from discharge or four from dismissal. No foreclosure in the last seven years. |
| Point | 500 | Home worth at least $155,000. You usually keep 27% or more of the equity after the investment. First or second lien preferred, third at most. Single-family homes, condos, townhomes and 1 to 4 units. No manufactured homes. | Two years from discharge or dismissal for Chapter 7 or 11. One year from discharge or two from dismissal for Chapter 13. Five years after a foreclosure. |
| Nada | 500 (720 for investment properties) | Appraised value of $175,000 or more. Up to 30% of the home's value. Proof of employment, with no minimum income. Junior lien, or first if you have no mortgage. Single-family homes, townhomes and up to 4 units. | No foreclosure, short sale or deed in lieu in the last five years. No bankruptcy discharged or dismissed in the last 18 months. You must be current on your mortgage. |
| Hometap | 575 FICO | At least 25% equity in your home. Single-family homes, condos, vacation and rental properties, multi-family homes (1 to 4 units) and manufactured homes. | Not listed in Hometap's FAQs. Ask when you request an estimate. |
| Unison | 620 mid-FICO | Maximum loan-to-value of 70% with excellent credit, lower as the score goes down. Typically for homeowners who live in the home. Evaluates credit, income and the property. | Not listed in the FAQs we read. Ask before you apply. |
Published requirements as of October 6, 2026. Each company notes that other criteria apply and that requirements change.
Three things stand out if your credit is damaged. The wait after a bankruptcy runs from 18 months at Nada to five years at Unlock, so the company with the lowest score is not always the one that will take your application. Manufactured homes are excluded by Unlock, Splitero, Point and Nada, while Hometap lists them among the property types it invests in. And Nada asks for proof of employment and Unison evaluates income, while Unlock, Point, Splitero and Hometap list no income requirement.
Which states each option covers
Your state can matter more than your score. Several of the lowest-score options operate in a limited number of states, and some only in select areas within them.
| Company | Minimum credit score | Coverage | States |
|---|---|---|---|
| Unlock | 500 | 26 states | Alabama, Arizona, California, Florida, Hawaii, Idaho, Indiana, Kentucky, Michigan, Missouri, Montana, Nevada, New Hampshire, New Jersey, New Mexico, North Carolina, Ohio, Oregon, Pennsylvania, South Carolina, Tennessee, Utah, Vermont, Virginia, Wisconsin, Wyoming |
| Point | 500 | 31 states and D.C., select regions | Arizona, California, Colorado, Connecticut, Florida, Georgia, Hawaii, Illinois, Indiana, Iowa, Kansas, Kentucky, Maryland, Michigan, Minnesota, Mississippi, Missouri, Nebraska, Nevada, New Jersey, New York, North Carolina, Ohio, Oregon, Pennsylvania, South Carolina, Tennessee, Utah, Virginia, Washington, Wisconsin and the District of Columbia |
| Splitero | 500 | 17 states, select areas | Arizona, California, Florida, Idaho, Missouri, Montana, Nevada, New Jersey, Ohio, Oregon, Pennsylvania, South Carolina, Tennessee, Utah, Virginia, Washington, Wyoming. Wyoming has a $75,000 minimum, and Missouri is second or third lien only. |
| Nada | 500 | 12 states | Arizona, Arkansas, California, Florida, Kansas, Louisiana, Michigan, Oklahoma, Oregon, Pennsylvania, South Carolina, Washington |
| Hometap | 575 FICO | 27 states | Alabama, Arizona, California, Delaware, Florida, Georgia, Idaho, Indiana, Kentucky, Michigan, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, Ohio, Oregon, Pennsylvania, South Carolina, Tennessee, Utah, Virginia, Wisconsin |
| Unison | 620 mid-FICO | 22 states and D.C. | Arizona, California, Delaware, Florida, Indiana, Kansas, Kentucky, Michigan, Minnesota, Missouri, Nebraska, Nevada, New Jersey, New Mexico, New York, Ohio, Rhode Island, South Carolina, Tennessee, Utah, Virginia, Wisconsin and the District of Columbia |
| Figure (HELOC) | 600 in most states | 48 states and D.C. | Every state except Hawaii and New York, according to the availability list on its HELOC page |
State lists as shown on each company's website on October 6, 2026. Point says availability may vary by county.
Seven states are missing from all six agreement lists above: Alaska, Maine, Massachusetts, North Dakota, South Dakota, Texas and West Virginia. For homeowners there, the honest answer is a HELOC or home equity loan, an FHA cash-out refinance or time spent on the score. Figure's HELOC is offered in all seven. One note on Texas: Nada's eligibility page names Texas in addition to the 12 states shown here, so a Texas homeowner could ask Nada directly.
Two states have no option at 500. Delaware starts at Hometap's 575 FICO, and Rhode Island at Unison's 620. Mississippi appears only on Point's list.
Some states have a single agreement company: Nada in Arkansas, Louisiana and Oklahoma; Point in Colorado, Connecticut, Illinois, Iowa, Maryland and Mississippi; Unlock in Vermont; and Unison in Rhode Island. The links on this page check your state, and if the company you pick does not serve it, you are sent to one that does.
What it costs when your credit is poor
With an agreement, the cost shows up in three places: the fees taken out of the money you receive, the share the company is owed when you settle, and the deadline for settling. Here is how the four agreement companies above describe each one.
| Company | Fees taken from your proceeds | What the company receives at settlement | Limit on that amount | Settle within |
|---|---|---|---|---|
| Unlock | 4.9% origination fee, plus third-party costs such as appraisal, title, escrow and recording | The Unlock Share: your home's ending value multiplied by the Unlock percentage, which is based on your exchange rate | Annualized Cost Limit of 19.9% a year, or lower if state law requires | 10 years |
| Splitero | 4.99% origination fee, plus about $1,000 in third-party closing costs | The Split Percentage of your home's value when you repurchase | Safety Cap of 17.99% a year, compounded monthly | 10 to 30 years |
| Point | 3.9% processing fee with a $2,000 minimum, plus third-party fees | Based on the change in your home's value from a risk-adjusted starting value that sits below the appraisal (27% below in Point's published example) | Homeowner Protection Cap, a fixed annual rate compounded monthly | 30 years |
| Hometap | 4.5% of the Investment amount, up to $20,000, plus third-party costs. Fees are deducted from your investment proceeds rather than paid upfront. | The Hometap Share: an agreed percentage of your home's value when you settle | The Hometap Cap, based on an 18.5% rate on the Investment amount, which could limit the Hometap Share in certain scenarios | 10 years |
Terms as described on each company's website on October 6, 2026. Your offer sets your own percentage and cap.
A company's own example. Splitero's pricing page works through this case: a home appraised at $1,000,000, $100,000 paid to the homeowner before fees, and a home value of $1,200,000 five years later. The agreed 20% Split Percentage comes to $240,000, or the Safety Cap if that is less. That is Splitero's illustration with Splitero's assumptions, and your numbers would differ. It shows the shape of the deal: when the home gains value, the amount due could be a multiple of the cash you received.
The Consumer Financial Protection Bureau studied these products in January 2025. It found that under many contracts the settlement amount grows at a rate of 19.5% to 22% a year in the early years, which it described as substantially higher than the rates on most home-secured credit and somewhat less than the rates on unsecured debt such as credit cards. It also found the contracts can be difficult to understand or compare.
A low score could change the price, not only the answer. Point says better credit generally results in more favorable pricing. Unlock says a good credit track record may qualify for more cash. Unison says the loan-to-value it allows goes down as the credit score goes down.
Three things to watch
Fees come out of your proceeds. A $50,000 agreement does not put $50,000 in your account. At Unlock's 4.9%, the origination fee alone is $2,450, before appraisal, title and recording costs.
The deadline is firm. Unlock, Hometap and Nada each run 10 years. Splitero runs 10 to 30, and Point and Unison run 30. When the term ends you settle in full, by selling the home, refinancing or using savings. Refinancing depends on your credit and income at that time, so if poor credit is the reason you are here, do not count on a refinance being available. Decide how you would settle before you sign.
Other debts may have to be cleared first. Unlock says it may require proceeds to be used to pay off certain debts or liens as a condition to close. Point says a mortgage that is more than 30 days past due has to be paid off in full at closing.
How to spot a predatory offer
Bad credit makes you a target. The Federal Trade Commission says advance-fee loan scams go after people who have bad credit or trouble getting a loan, often with ads that promise credit regardless of your history.
A sound offer has
- Costs in writing before you commit. The agreement companies above take their fees out of your proceeds at closing, and Unlock, Point and Hometap each say they send an estimate of the costs before you sign.
- A license you can check. The FTC suggests asking your state attorney general or banking regulator whether a lender is registered in your state.
- Time to think. Unlock, for one, says it will not schedule the signing sooner than three days after you sign your closing statement.
- A right to cancel. On a home equity loan or HELOC secured by your main home, federal law lets you cancel for any reason until midnight of the third business day.
Walk away from
- Guaranteed approval. “Bad credit? No problem” is the first warning sign on the FTC's list. Legitimate lenders will not promise or guarantee you a loan before you apply.
- A fee before the money. The FTC says nobody legitimate will tell you that paying a fee guarantees you a loan, and that an up-front fee demanded before the loan is granted is a cue to walk away.
- Pressure to sign. The FTC's advice at closing: read the papers carefully, and if the financing is not what you expected, do not sign.
- New wire instructions by email. An unexpected email asking you to wire closing money to a different account is a scam. Call your lender at a number you know is real.
The FTC's guides on advance-fee loans and home equity loans and HELOCs cover these in full. If you think a lender has broken the law, report it at ReportFraud.ftc.gov and to your state attorney general.
Raise your score first: what moves in 30 to 90 days
If you are a few points under the next row in the score table, a few months of work could open a cheaper option. These are the moves the CFPB and Experian point to, with how soon each one could show up.
| Move | Why it helps | How soon it shows |
|---|---|---|
| Pay card balances down | Scoring models look at how close you are to your limits. The CFPB says experts advise using no more than 30% of your total credit limit. | Card issuers typically report balances to the credit bureaus once a month, according to Experian. |
| Dispute errors on your reports | If the dispute is valid, the bureau corrects or removes the wrong information. | A credit reporting company generally must investigate within 30 days, or 45 in some cases, the CFPB says. |
| Become an authorized user | Being added to a well-managed card puts that account on your report. | The card issuer typically reports the account within a month or two, according to Experian. |
| Pause new credit applications | Scoring formulas read a burst of applications as a sign of financial setbacks, the CFPB says. | No waiting. It keeps new inquiries off your report while you prepare. |
| Pay every bill on time | Most credit scores treat repayment history as the number one factor, the CFPB says. | Builds month by month. If you have missed payments, get current and stay current. |
One more check. You do not have just one credit score: the CFPB notes that scores differ by scoring model, by the data used and even by the day they are calculated. Hometap and Unison state their minimums as FICO scores, so find out which score you are looking at before you count on it.
More: Best credit building apps
How to choose
Start from your situation, not from the company.
| If this is you | Start with |
|---|---|
| Score of 500 to 574 and you want to buy out in stages | Unlock, which allows partial buyouts during its 10-year term |
| Score from 500 and no income or employment paperwork | Splitero, which says it will not ask for employment or income documents |
| Score from 500 and you want the longest time to settle | Point, with a 30-year term |
| FICO score of 575 or higher, or a manufactured home | Hometap, which could be an option with at least 25% equity in your home, among other qualifying criteria |
| Score in the 600s and a monthly payment is manageable | Figure, whose HELOC has a minimum of 600 in most states, for qualifying loans |
| You live in Arkansas, Louisiana or Oklahoma | Nada, the only one of the six in those states |
| You live in Alaska, Maine, Massachusetts, North Dakota, South Dakota, Texas or West Virginia | A HELOC or home equity loan if your score allows it, an FHA cash-out refinance, or the score work above |
Steps to take
- Check your reports and your score. Look for errors to dispute, and find your FICO score, since that is the score Hometap and Unison name.
- Work out your equity. Take your home's value and subtract what you owe on it. Hometap asks for at least 25% equity in your home and Unlock for at least 30%.
- Match your score and state to the tables. Cross off any company that does not operate where you live or whose bankruptcy or foreclosure rule you do not meet.
- Ask two companies for an estimate. Unlock, Point, Splitero and Nada each say the first step does not affect your credit score. Two estimates let you compare the percentage and the cap.
- Read the offer for four numbers. The cash you receive after fees, the percentage the company is owed, the cap, and the date you must settle by.
- Decide how you will settle before you sign. A sale, a refinance or savings. If none is realistic within the term, this is not the right product.
Home equity with bad credit: FAQ
A home equity loan or HELOC is unlikely at 500. Experian says most lenders look for at least 680 and the more lenient ones 620. What does open at 500 is a home equity agreement, a different product with no monthly payment: Unlock, Point, Splitero and Nada each publish a minimum credit score of 500. FHA's rules also allow a cash-out refinance from 500, if a lender will make it.
It depends on the lender. Experian says most want at least 680 and some accept 620. Figure lists a minimum required credit score of 600 in most states for its HELOC, for qualifying loans, and the first band in its rate calculator is 640 to 659.
No, it is a different product. With a home equity agreement you receive a lump sum, and the company receives a share of your home's future value or appreciation when you settle. There are no monthly payments, and the published minimum credit scores start at 500. What you owe at the end depends on what the home is worth, and it could be far more than you received.
Usually not at the first step. Unlock says it uses a soft inquiry that does not affect your credit score, and Point, Nada and Unison say the same of their first check. Splitero starts with a soft credit pull and runs a hard credit check with the full application. Figure checks your rate with a soft pull and runs a hard pull if you submit an application.
Yes, once enough time has passed, and the wait differs by company. After a bankruptcy, Nada looks back 18 months, Point two years for Chapter 7, Splitero four years for Chapter 7 and Unlock five years. After a foreclosure, Point, Unlock and Nada look back five years and Splitero seven.
Alaska, Maine, Massachusetts, North Dakota, South Dakota, Texas and West Virginia are missing from all six agreement lists on this page. A HELOC or home equity loan is the main route there if your score allows it, and Figure offers its HELOC in all seven. An FHA cash-out refinance is the other route to ask a lender about.
Sources
Company figures were read on each company's own website on October 6, 2026. General rules come from the agencies and the credit bureau named below.
- Unlock: FAQs and What It Costs (unlock.com)
- Splitero: How It Works, Eligibility and Pricing (splitero.com)
- Point: HEI overview and help center articles on eligibility, states, fees, credit score and the Homeowner Protection Cap (point.com)
- Hometap: FAQs and How It Works (hometap.com)
- Nada: Eligibility, Pricing and How It Works (nada.co)
- Unison: FAQs (unison.com)
- Figure: HELOC page and HELOC FAQs (figure.com)
- Experian: Can You Get a Home Equity Loan With Bad Credit?
- Experian: How to Improve Your Credit Score Fast
- HUD: Mortgagee Letter 10-29, minimum credit scores and loan-to-value ratios
- HUD: Mortgagee Letter 2019-11, maximum loan-to-value for cash-out refinances
- CFPB: Issue Spotlight, Home Equity Contracts: Market Overview (January 15, 2025)
- CFPB: How do I get and keep a good credit score?
- CFPB: How long does it take to repair an error on a credit report?
- CFPB: What is a credit score?
- FTC: Home Equity Loans and Home Equity Lines of Credit
- FTC: What To Know About Advance-Fee Loans
- FTC: Cosigning a Loan FAQs
Related in home equity
Terms, pricing and availability change. Confirm the current terms on the company's site before you apply.
