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HEI vs HELOC comes down to the monthly payment: if you can qualify for a home equity line of credit (HELOC) and afford the payment, it usually costs less, because you pay interest on what you owe and keep all of your home's future value. If your credit, your income paperwork or your budget rules that out, a home equity investment (HEI), also called a home equity agreement, gets you cash with no monthly payment in exchange for a share of what your home is worth when you settle.
The short answer: Pick a HELOC if your credit score is 600 or higher, you can document your income and the payment fits your budget. Pick a home equity agreement if a HELOC is out of reach or a new payment would strain you, and you have a realistic plan to settle within the term (10 years at most companies) by selling, refinancing or using savings. If you can afford a payment and expect your home to gain value, the HELOC is very likely the cheaper of the two.
Estimate what you could get from your home's value and mortgage balance, then use the comparison below to choose.
A note on names: HEI is the search term, but companies label the product differently. Hometap and Splitero call theirs a home equity investment. Unlock calls its product a home equity agreement (HEA), and the Consumer Financial Protection Bureau (CFPB) calls the whole category home equity contracts. We use home equity agreement as the plain umbrella term on this page, and our home equity hub covers the other ways to use your equity.
HEI vs HELOC side by side
The agreement column reflects the published terms of Hometap, Unlock and Splitero. The HELOC column reflects the CFPB's description of how HELOCs work and Figure's published terms. All were read on October 6, 2026.
| What to compare | Home equity agreement (HEI) | HELOC |
|---|---|---|
| Monthly payment | None. You keep paying your traditional mortgage, property taxes and insurance. | Yes. Payments start right away and include interest. With a variable rate, the payment could change from month to month. |
| What you owe at the end | One settlement: an agreed percentage of your home's value on that day, limited by a cap at some companies. It is due when you sell or reach the end of the term. | Nothing, if your payments covered principal and interest. Some HELOCs require only interest during the draw period, and the CFPB says payments are often significantly higher in the repayment period that follows. |
| Credit score needed | 500 at Unlock and Splitero, 575 FICO at Hometap. | 600 in most states at Figure and 660 for investment properties. Its rate estimator starts at 640. |
| Income needed | No income or employment requirement at the three companies. Unlock verifies rental income on investment properties. | Verified. Figure checks income and employment and does not lend to unemployed applicants. |
| How fast | About one to two months. Hometap says as little as 30 to 45 days. Unlock says 30 to 60 days. | Figure advertises approval in as little as 5 minutes and funding in as few as 5 days for qualifying loans under $400,000. Other lenders vary. |
| How much | Up to $600,000 at Hometap (27% of home value at most) and at Splitero (25% at most). Up to $500,000 at Unlock. | $15,000 to $750,000 at Figure, depending on your equity, credit and income. |
| If your home's value changes | What you owe moves with it: more if the home gains value, less if it loses value, though it could still exceed the cash you received. | What you owe does not change. You keep any gain, and the lender could freeze or reduce an unused line if the value falls. |
| If you sell | The settlement is based on the sale price and comes out of the proceeds. Settling in the first year or two is expensive relative to the cash received. | The balance is paid from the proceeds. The CFPB notes you are generally required to pay off a HELOC in full when you sell. |
| If you refinance later | The company holds a lien on the home, and each one sets its own conditions for staying in place behind a new first mortgage. Details are below. | A HELOC is a second mortgage, so the HELOC lender typically has to agree to stay in second position or be paid off. |
| Fees at closing | 4.5% at Hometap, 4.9% at Unlock and 4.99% at Splitero, plus third-party costs, typically taken out of the cash you receive. | 0% to 4.99% origination fee at Figure. Other lenders may charge appraisal fees and closing costs. |
| Term | 10 years at Hometap and Unlock. 10 to 30 years at Splitero. | 10, 15, 20 or 30 years at Figure. The CFPB's example of a bank HELOC is a 10-year draw period followed by a repayment period of 10 or 20 years. |
| Tax treatment | IRS Publication 936 does not mention home equity investments or agreements. Ask a tax professional how a settlement would be treated. | Under IRS Publication 936 (2025 returns), interest is deductible only if the money is used to buy, build or substantially improve the home that secures the line, and only if you itemize. |
| Is your home at risk? | Yes. You must settle by the end of the term, and the CFPB warns that homeowners who cannot may have to sell or face foreclosure. | Yes. The home is the collateral, and you could lose it if you fall behind on payments. |
Company figures are published minimums and maximums, not offers. Your terms depend on your home, your equity and your credit.
How the cost of each one works
A HELOC's cost is interest. You are quoted an annual percentage rate (APR), interest builds on the balance you owe, and every payment lowers what is left. Some lenders add an origination fee. Figure's HELOC differs from the classic bank line in two ways that matter here: you draw the full amount at closing, and it offers fixed as well as variable rates.
An agreement's cost is the gap between the cash you receive and the amount you settle for. The company gives you a percentage of your home's current value in cash and, in exchange, is owed a larger percentage of the home's value on the day you settle. Nothing is paid monthly, so the whole cost lands at settlement, and you will not know the dollar amount until then because it depends on what the home is worth.
Hometap publishes its numbers, which makes it a useful example. If you receive 10% of your home's value, the Hometap Percentage is 16.5% of the home's value if you settle in years 0 to 5 and 18% if you settle in years 6 to 10. The Hometap Cap could limit the Hometap Share in some scenarios: it is an 18.5% annual rate on the Investment amount, compounded monthly, and may vary by state. Splitero's published example works the same way with its own numbers: a 10% investment is paired with a 20% split percentage, and its Safety Cap is a 17.99% annual rate, compounded monthly.
Illustration: $50,000 over 10 years
This is an illustration, not a quote. The first table comes from Hometap's public pricing calculator. The second is a fixed-rate HELOC at the lowest and the highest APR that Figure publishes. Every assumption is listed under the tables.
| Home value over 10 years | Home is worth | Hometap Share at settlement |
|---|---|---|
| Falls 8% in total | $460,000 | $82,800 |
| Falls 4% in total | $480,000 | $86,400 |
| No change | $500,000 | $90,000 |
| Rises 3.25% a year | $688,447 | $123,920 |
| Rises 8% a year | $1,079,462 | $194,303 |
Source: Hometap's pricing calculator on October 6, 2026, for a $500,000 home, a $50,000 Investment (10% of the home's value) and settlement in year 10, with California selected. The Hometap Share is 18% of the home's value in every row, and there are no monthly payments to Hometap. Hometap describes the estimate as illustrative and based on a well-qualified homeowner with at least 25% equity in the home.
| $50,000 HELOC from Figure | Monthly payment | Total paid in 10 years | Interest |
|---|---|---|---|
| At 7.35% APR | $590 | $70,752 | $20,752 |
| At 14.85% APR | $802 | $96,251 | $46,251 |
Our arithmetic: $50,000 at a fixed APR, repaid in 120 equal monthly payments, with no additional draws. 7.35% and 14.85% are the lowest and highest initial APRs Figure listed on October 6, 2026. Figure says its lowest APRs go to its most qualified applicants who choose a 10-year term, and may involve paying a higher origination fee.
What the illustration leaves out: fees and timing. Hometap's fee is 4.5% of the Investment amount, which is $2,250 here, plus third-party costs. Figure's origination fee is 0% to 4.99% of the draw, up to $2,495 here. The HELOC payments are spread over 10 years while the settlement is one payment in year 10, and the totals are not adjusted for when the money leaves your account.
How to read it: at the low end of Figure's range, the HELOC costs less than the agreement in all five scenarios, including the two where the home loses value. At the high end, the HELOC's $96,251 total is more than the settlement if the home's value is flat or lower ($82,800 to $90,000) and less than the settlement if the home gains 3.25% a year ($123,920). The two meet when the home is worth about $535,000 in year 10, a gain of roughly 7% over the decade.
What the totals hide is the payment. The HELOC asks for $590 to $802 every month, starting now, and you have to qualify for it. The agreement asks for nothing until settlement, then everything at once. That is the trade you are choosing between.
The CFPB ran a similar comparison in a January 2025 report on home equity contracts, using a hypothetical contract and an interest-only HELOC at 9%. It found the contract cost more whenever the home appreciated and less only if the home's value fell by at least 5% over the 10 years. It also noted that origination fees are typically much higher on home equity contracts than on HELOCs.
The differences that change the outcome
Whether you can qualify for the payment
A HELOC is underwritten like a mortgage. Figure verifies income and employment, suggests keeping your debt-to-income ratio below 50% and sets a credit floor. The three agreement companies on this page publish no income or employment requirement and credit floors of 500 to 575. If you cannot document income or your score is under 600, the choice may already be made for you.
How long you will keep the home
Both are settled when you sell, but an agreement is costly over a short stay. In Hometap's calculator, the same $50,000 Investment settles for $60,076 after one year and $96,806 after five, at 3.25% annual appreciation. Hometap itself says an HEI might not be the best fit if you do not plan to stay in the home for more than two years. A HELOC you pay off after a year costs about one year of interest plus any fees the lender charges.
The end of the term
An agreement has a deadline. It is 10 years at Hometap and Unlock. Splitero matches its term to your remaining first mortgage, from 10 to 30 years. If you have not sold by then, you need savings or new financing to settle. Unlock lets you buy back its share in partial payments along the way, which softens the deadline. A fully amortizing HELOC like Figure's simply ends at zero. A bank HELOC with interest-only payments during the draw period does not, so ask what the repayment period looks like before you sign.
Refinancing later
Either product adds a lien behind your first mortgage, and a lender refinancing that mortgage will want every other lienholder to stay behind it or be paid. With a HELOC, ask the lender about its subordination policy before you need it. With an agreement, it depends on the company. Hometap requires notice before you refinance. Unlock may charge an administration fee, and says it may refuse to subordinate if your home has lost value and the total debt on it would increase. Splitero says some lenders may require it to be settled first. The CFPB's report lists difficulty refinancing among the consumer complaints it reviewed.
Pick a HELOC if
- Your credit score is 600 or higher, Figure's published minimum in most states
- You can document income from a job, self-employment or retirement
- A payment of several hundred dollars a month fits your budget with room to spare
- You expect your home to gain value and want to keep all of it
- You may sell or refinance within the next few years
- The money is for a home improvement and you want the interest to be deductible under IRS rules
Figure is the HELOC lender on this page. Clearing its minimum does not get you its best price: Figure says its lowest APRs go to its most qualified applicants.
What it is: A HELOC with an online application from Figure. It lists initial APRs of 7.35% to 14.85%, fixed or variable, approval in as little as 5 minutes and funding in as few as 5 days for qualifying loans under $400,000. It is available in 48 states and Washington, D.C., but not in Hawaii or New York.
The catch: You draw the full amount at closing, so interest starts on the whole balance on day one. Figure verifies your income and employment, and your home is the collateral.
Pick a home equity agreement if
- Your credit score is between 500 and the low 600s
- Your income is hard to document, or you are between jobs
- Your budget has no room for another monthly payment
- You have at least 25% to 30% equity in the home
- You plan to stay a few years and can name how you will settle: a sale, a refinance or savings
- You accept giving up a share of the home's future value in exchange for no payment now
If that is you, these three companies fit the typical reader of this page. They are not ranked. We list Hometap first because most readers comparing these two products have the 575 FICO score it requires. Unlock and Splitero start at 500.
What it is: A home equity investment. Hometap could provide up to 27% of your home's value in cash in exchange for an agreed percentage of its future value, with no monthly payments during the term. It invests in 27 states. You need a FICO score of 575 or higher and at least 25% equity in your home, among other qualifying criteria.
The catch: Settling could cost far more than the cash you received. In Hometap's calculator, a $50,000 Investment on a $500,000 home settles for $123,920 after 10 years of 3.25% annual appreciation, and the full amount is due in one transaction by year 10.
What it is: A home equity agreement (HEA). Unlock pays a lump sum in exchange for a percentage of your home's future value, with no monthly payments, and lets you buy back its share in partial payments during the term. It operates in 26 states and accepts primary homes, second homes and rental properties.
The catch: You need at least 30% equity and a home worth $175,000 or more. Each partial buyout needs a new appraisal that you pay for, and Unlock may require part of the cash to go toward certain debts or liens at closing.
What it is: A home equity investment. Splitero provides up to 25% of your home's value, to a maximum of $600,000, and says it will not ask for income or employment documents. The term matches your remaining first mortgage, from 10 to 30 years, and its Safety Cap limits the repurchase amount to a 17.99% annual rate, compounded monthly.
The catch: It serves eligible areas of 17 states, its 4.99% fee is the highest of the three, and the full application includes a hard credit check. In Splitero's own example, a $100,000 investment on a $1,000,000 home costs $240,000 to repurchase after five years if the home is then worth $1,200,000.
More: Best HEI companies compared, for every company side by side, including ones not shown here.
What you can get by credit score and state
By credit score
| Your credit score | What is realistic |
|---|---|
| Under 500 | Neither product from the companies on this page. See the section on when neither one fits. |
| 500 to 574 | An agreement from Unlock or Splitero. Both publish a 500 minimum. |
| 575 to 599 | Adds Hometap, which publishes a minimum FICO score of 575. |
| 600 to 659 | A HELOC becomes possible. Figure's FAQ lists a 600 minimum in most states, though its rate estimator starts at 640. |
| 660 and up | Meets Figure's minimum for investment properties as well as primary homes. If the payment fits your budget, price a HELOC first. |
Meeting a minimum does not mean approval. Each company also weighs your equity and your property, and a HELOC lender weighs your income and existing debts as well.
By state
Agreements are not sold everywhere. On October 6, 2026 the companies on this page listed these states:
| Hometap | 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 |
|---|---|
| Unlock | 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 |
| Splitero | Eligible areas of 17 states: Arizona, California, Florida, Idaho, Missouri, Montana, Nevada, New Jersey, Ohio, Oregon, Pennsylvania, South Carolina, Tennessee, Utah, Virginia, Washington, Wyoming |
| Figure HELOC | 48 states and Washington, D.C. Not available in Hawaii or New York. |
We also checked the state lists of Point, Unison and Nada the same day. None of the six agreement companies lists Alaska, Maine, Massachusetts, North Dakota, South Dakota or West Virginia, so in those states the realistic choice is a HELOC or a home equity loan. Texas and Mississippi each appear on only one of the six lists, so a HELOC is usually the practical route there as well. Figure lists all eight states.
The links to agreement companies on this page check your state. If the one you choose does not operate where you live, the link opens a company that does.
When neither one fits
Sometimes the honest answer is a different product, or no product yet.
A cash-out refinance replaces your current mortgage with a bigger one and pays you the difference in cash. You keep a single payment, but the CFPB notes that closing costs are generally higher and that the new rate may be higher than the one you have now. It makes the most sense when your current rate is close to or above today's rates.
A home equity loan is a lump sum, usually at a fixed rate, with equal payments that pay it off. If you know exactly how much you need and want a payment that does not change, it is simpler than a line of credit. You still need the credit and income to qualify.
A personal loan does not use your home as collateral, so a missed payment cannot cost you the house. Rates are typically higher than on credit secured by a home. For a smaller amount that you could clear in a few years, that may be a fair price for keeping the house out of it.
Waiting is an option too. If your score is under 500, if you have less than about 25% equity, or if the expense could be postponed, a year of paying down balances and building equity could move you from an agreement to a HELOC, or from a high APR to a lower one.
If the real problem is that you are struggling with your mortgage payment, the CFPB suggests talking with a HUD-approved housing counselor before you borrow against the home. Its number is (855) 411-2372.
HEI vs HELOC FAQ
It depends on your home's value and your equity. Hometap invests $15,000 to $600,000, up to 27% of your home's value. Unlock goes up to $500,000, and Splitero up to $600,000 or 25% of your home's value. A HELOC from Figure runs from $15,000 to $750,000. The quickest way to see your own number is an estimate from Hometap, which says you could find out if you pre-qualify in seconds.
In most cases, the HEI. In our illustration, a $50,000 HELOC from Figure repaid over 10 years costs $70,752 to $96,251 in total payments across its published APR range. Hometap's calculator shows a $50,000 Investment settling for $82,800 to $194,303 after 10 years, depending on what the home is worth then. The agreement cost less only against the highest APR, and only in the scenarios where the home's value was flat or lower.
Cost and timing. You settle with a single payment that could be much larger than the cash you received, you will not know the amount until the home is valued at settlement, and it is due by the end of the term, which is 10 years at most companies. The Consumer Financial Protection Bureau describes home equity contracts as “expensive compared to other home-secured financing options.”
Among the companies on this page, Unlock and Splitero publish a 500 minimum. Hometap publishes a minimum FICO score of 575, among other qualifying criteria. Figure's FAQ lists a 600 minimum for its HELOC in most states and 660 for investment properties.
No. A HELOC is a line of credit secured by your home, with a monthly payment and interest. With an HEI you receive a lump sum, make no monthly payments and settle later with a share of your home's value. Both are secured by a lien on the home.
Both are settled from the sale. A HELOC balance is paid off at closing, and the CFPB notes you are generally required to pay it in full when you sell. With an HEI, the company's percentage is applied to the sale price and paid out of the proceeds, which ends the agreement.
IRS Publication 936 says interest on a home equity loan or line of credit is deductible only if the funds are used to buy, build or substantially improve the home that secures it, and only if you itemize. The publication does not mention home equity investments or agreements. Unlock says its understanding is that the cash should not be taxable when you receive it, but it does not give tax advice, so check with a tax professional.
How we compared them
This page is the editorial view of smarts.co, built from primary sources read on October 6, 2026. Agreement terms come from the websites of Hometap, Unlock and Splitero, including Hometap's public pricing calculator. HELOC terms come from Figure's website. General rules come from the Consumer Financial Protection Bureau and the Internal Revenue Service. We did not score or rank the companies, and the HELOC payments in the illustration are our own arithmetic from Figure's published APR range.
- Hometap: FAQs and the pricing calculator on How It Works (hometap.com)
- Unlock: FAQs (unlock.com)
- Splitero: How It Works, Eligibility and Pricing (splitero.com)
- Figure: Home Equity Line of Credit page and HELOC FAQs (figure.com)
- State lists: Point help center (help.point.com), Unison FAQs (unison.com) and Nada eligibility page (nada.co)
- CFPB: What is a home equity line of credit (HELOC)?
- CFPB: What You Should Know About Home Equity Lines of Credit
- CFPB: Issue Spotlight, Home Equity Contracts: Market Overview (January 15, 2025)
- IRS: Publication 936, Home Mortgage Interest Deduction (for 2025 returns)
Related in home equity
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.
Terms, pricing and availability change. Confirm the current terms on the company's site before you apply.
