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Home equity: how to get equity out of your home

You can get equity out of your home in five main ways: a home equity loan, a home equity line of credit (HELOC), a cash-out refinance, a home equity agreement, or a reverse mortgage if you are 62 or older. The right one depends on your credit, your income, the rate on your current mortgage and whether a monthly payment is workable. Start with your situation, or compare all five side by side below.

First step: get a number. Enter your home value and your mortgage balance in the home equity estimator to see roughly how much cash you could access, before you talk to any company.

Estimate My Equity Free estimator on Smarts

Start with your situation

Pick the one that sounds most like you.

Bad creditWhat you could still qualify for when a bank has turned you down.Read the guide
No income documentsOptions for self-employed owners and anyone without steady pay stubs.
Keep a low mortgage rateWays to get cash that leave your current mortgage as it is.Read the guide
Rental or second homeGetting equity out of a property you do not live in.
62 or olderA reverse mortgage weighed against the other four options.
Agreement or HELOCNo monthly payment against a credit line you repay each month.Read the guide

Five ways to get equity out of your home, compared

What each one asks of you every month, and what it costs.

Way to get equityMonthly paymentCredit neededWhat it costs youBest for
Home equity loanYes, a second payment on top of your mortgageSet by each lender, based on your credit history, income and home valueInterest, usually at a fixed rate, plus upfront feesOne large expense when you want a payment that stays the same
Home equity line of credit (HELOC)Yes, once you borrow from the lineSet by each lender, based on your credit history, income and home valueInterest, usually at a variable rate, so the payment can change, plus lender feesCosts spread over time, or when you do not know the total yet
Cash-out refinanceYes, one payment on a new, larger mortgageSet by each lenderClosing costs on the new mortgage, and the rate on your current mortgage is replacedOwners whose current mortgage rate is no better than what lenders offer today
Home equity agreementNo. You settle in one lump sum when you sell, refinance or reach the end of the termLower minimums. The companies below publish 500 to 620A share of your home’s future value, plus fees that are often 3% to 5%, taken out of your cashOwners with plenty of equity who cannot take on a monthly payment
Reverse mortgage (62 or older)No monthly mortgage payment. You keep paying property taxes and homeowners insuranceNo score given in the federal guides we read. You must be 62 or older and live in the homeInterest and fees are added to the balance every month, and closing costs are typically higher than for other loansHomeowners 62 or older who plan to stay in the home

Sources, read October 6, 2026: the Consumer Financial Protection Bureau’s guide to using home equity and its report on home equity contracts, and the Federal Trade Commission’s guide to home equity loans and lines of credit. Agreement credit minimums are from the companies listed below.

Companies we cover

Six home equity agreement companies and one HELOC lender. Each line uses the company’s own name for its product, with figures read on its site on October 6, 2026.

CompanyWhat it offersMinimum creditAvailable in
Home equity investment: cash now in exchange for a share of your home’s future value, with a 10-year term.
Read the Hometap review
575 FICO, among other qualifying criteria27 statesGet an Estimateat Hometap
Home Equity Agreement (HEA): up to $500,000 with a 10-year term.50026 statesGet an Estimateat Unlock
Home Equity Investment (HEI): no monthly payments, no income requirements and no need for perfect credit, with a 30-year term.500+31 states and Washington, D.C., in select regionsPrequalifyat Point
Equity sharing agreement: cash for a share of the future change in your home’s value, for up to 30 years.620 mid-FICO, generally22 states and Washington, D.C.Get an Estimateat Unison
Home Equity Investment: cash upfront for a share of your home’s future value, with no income or employment requirements.50017 states, in eligible areasGet an Estimateat Splitero
NadaHome Equity Agreement: no monthly payments and no income requirements.500 FICOSelect statesGet an Estimateat Nada
FigureHome equity line of credit (HELOC): $15,000 to $750,000, repaid in monthly payments.Rate tool starts at 64048 states and Washington, D.C.Find My Rateat Figure

If a company does not serve your state, its button takes you to one on this list that does. Terms and availability change, so confirm the current terms on the company’s site before you apply.

More: The home equity agreement companies compared side by side

Home equity guides and reviews

Every home equity page on Smarts, newest first.

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Common questions

Can I get equity out of my home without refinancing?

Yes. A home equity loan, a HELOC and a home equity agreement all sit alongside your current mortgage, so its rate and term stay as they are. Only a cash-out refinance replaces your mortgage with a new, larger one.

Can I get equity out of my home with bad credit?

Often, yes. Lenders set their own credit requirements for home equity loans and HELOCs, and they also look at your income and your home’s value. The home equity agreement companies listed on this page publish minimum scores from 500 to 620, and each has other requirements too.

Which ways to get equity out of your home have no monthly payment?

A home equity agreement and a reverse mortgage. With an agreement you settle in one lump sum when you sell, refinance or reach the end of the term, and the amount depends on what your home is worth then. With a reverse mortgage, interest and fees are added to the balance each month and the loan comes due when you no longer live in the home.

What is the trade-off with a home equity agreement?

You give up a share of your home’s future value, so the more your home is worth when you settle, the more you could owe. The Consumer Financial Protection Bureau describes these contracts as expensive compared with other home-secured financing. Fees come out of the cash you receive, and if you cannot settle by the end of the term you may have to sell the home.

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.