If you want cash out of your house but you don’t want a new monthly payment, you have more options than most people think. A home equity investment gives you a lump sum now with no monthly payment and no interest, and the company takes a share of your home’s value when you settle. Selling, downsizing, a sale-leaseback and a reverse mortgage are the other ways in.
If you want to see a real number first, start with Point. It funds $30,000 to $600,000, takes credit scores from 500 and has no income requirements. The catch is that the cost shows up at the end, so read the settlement section below before you sign anything.
How to get equity out of your home without a loan
Equity is what your home is worth minus what you still owe on it. A HELOC, a home equity loan and a cash-out refinance all turn it into cash by adding debt and a monthly payment, and that’s the exact thing you’re trying to skip. These are the ways around it.
- 1Home equity investment
You get cash now and the company takes a share of your home’s value later. No monthly payment. Start here, and it’s covered next.
- 2Sell or downsize
Your equity comes out as cash at closing and nothing is owed afterward. The catch is that you have to move.
- 3Sale-leaseback
Sell the home to an investor and rent it back, so you get the cash and stay put. Ownership goes with it.
- 4Reverse mortgage, age 62 and up
Technically a loan, but with no monthly mortgage payment. You still pay property taxes and homeowners insurance.
Cash out home equity without refinancing
A home equity investment, or HEI, is the cleanest way to cash out home equity without refinancing. You keep your current mortgage and its rate, you get a lump sum, and there’s no monthly payment and no interest. In exchange the company takes a share of your home’s future value when you settle, which happens when you sell, refinance or reach the end of the term.
So what’s the catch? That share. You’re not paying interest, but you are handing over a slice of any gain, and if your home rises a lot the total cost can end up higher than a HELOC would have been. Here are the two to check first.
you want the widest range of amounts and you’ve got a bruised credit score. Point has no income requirements and says you don’t need perfect credit.
you’re in one of its 17 states and you have at least 25% equity. It asks for no income documents.
Each button checks your state first. If the company you pick doesn’t serve it, you could land on another lender that does, so read the state lists below before you click.
Hometap
Hometap could be a fit if you want a shorter commitment. It could fund $15,000 to $600,000 over a 10-year term, with credit scores from 575 and at least 25% equity, among other qualifying criteria, if your home is located in an eligible state. Hometap serves 26 states. Ask how and when you’d settle the investment before you decide. Check Hometap eligibility.
Point, the details that decide it
Point can fund up to about 71% of your home’s value when you add your mortgage to the new money, if your score is 550 or higher. That drops to 67.5% for scores from 500 to 549. Scores under 600 are capped at $500,000, and the home has to be worth between $155,000 and $4,500,000. It doesn’t work for manufactured homes, co-ops or homes owned by an LLC. Our Point review goes through the rest.
Splitero is the other one with a number you can plan around. It funds up to 25% of your home’s value, wants at least 25% equity, and the home has to be worth $200,000 to $5,000,000. The origination is 4.99% and the term can run up to 30 years.
Check your state before anything else
Availability is where most people get stopped, so look before you fall for a number. Point serves 30 states plus D.C., and Splitero serves 17.
Point (30 states plus D.C.)
Point serves select regions inside its states, so confirm your county too.
- Arizona
- California
- Colorado
- Connecticut
- Florida
- Georgia
- Hawaii
- Illinois
- Indiana
- Iowa
- Kentucky
- Maryland
- Michigan
- Minnesota
- Mississippi
- Missouri
- Nebraska
- Nevada
- New Jersey
- New York
- North Carolina
- Ohio
- Oregon
- Pennsylvania
- South Carolina
- Tennessee
- Utah
- Virginia
- Washington
- Wisconsin
- Washington, D.C.
Splitero (17 states)
Splitero also wants at least 25% equity and a home worth $200,000 to $5,000,000.
- Arizona
- California
- Florida
- Idaho
- Missouri
- Montana
- Nevada
- New Jersey
- Ohio
- Oregon
- Pennsylvania
- South Carolina
- Tennessee
- Utah
- Virginia
- Washington
- Wyoming
Hometap serves 26 states. Its list changes, so the fastest check is the eligibility page. If your state isn’t on any of these, the sections below on selling and reverse mortgages still apply.
What a home equity investment really costs at settlement
There’s no payment while you hold it, so the price tag gets pushed to the end. Point’s fee is up to 4.9% with a $2,000 minimum, and Splitero’s origination is 4.99%. Both of those come off the top of your cash. The bigger number is the share of your home’s value you hand over later, and neither company publishes it up front. Ask each one, in writing, for the same three things.
- 1Home stays flat
What would the settlement amount be if your home is worth the same as today?
- 2Home rises 20%
Ask for the same figure with a 20% gain, and put it next to the first.
- 3Home rises 50%
Then 50%. This is the one that shows you how expensive it can get.
Compare those three numbers against what a HELOC would cost you over the same years. A flat market makes an HEI look cheap, and a hot one doesn’t. Our home equity agreement pros and cons page and the home equity calculator help you run it.
Home equity loan with no payments: what’s real
A real home equity loan always has a payment. When someone says “home equity loan with no payments”, they usually mean one of two things. One is a home equity investment, which has no monthly payment and no interest. The second is a reverse mortgage.
A reverse mortgage is technically a loan, so let’s call it what it is. But you don’t make a monthly mortgage payment on it. The common federally insured kind, the HECM, requires you to be 62 or older, and you still pay property taxes and homeowners insurance. Because nothing is knocking the balance down, it grows over time, which matters if you want to leave the house to someone. If you’re 62 or older and staying put, price it against an HEI. If you’re younger, it isn’t an option. For the full breakdown, see reverse mortgage pros and cons, and if it doesn’t fit, read these reverse mortgage alternatives.
Access home equity without a loan: sell, downsize or sell and rent back
Selling is the old-fashioned answer and it works. You get the equity in cash at closing, nothing is owed afterward, and if you downsize you can keep part of it as a smaller place. The catch is obvious. You have to leave, and you’ll pay closing costs on the way out.
A sale-leaseback is the version where you stay. You sell the home to an investor and rent it back from them. You get the cash and keep living there, but you now pay rent, you no longer own the home, and you give up any future gain. Get several written offers and read the lease terms closely, since that lease is the whole deal. No company is named here because the terms vary so much from one buyer to the next.
Your options side by side
| Option | Monthly payment | Biggest catch | Where to start |
|---|---|---|---|
| Point | None | Share of your home’s value at settlement, plus a fee of up to 4.9% | Get My Point Offer |
| Splitero | None | Share of value at settlement, plus 4.99% origination | Get My Splitero Estimate |
| Hometap | None | 10-year term, among other qualifying criteria | Check Hometap Eligibility |
| Sell or downsize | None | You have to move | Ask a local agent |
| Sale-leaseback | Rent | You give up ownership and future gains | Get several written offers |
| Reverse mortgage (62+) | No mortgage payment | It’s a loan, and you still pay taxes and insurance | Compare more than one lender |
| Figure HELOC (for contrast) | Yes | It’s a loan with a monthly payment | Check Figure’s Rate |
Hometap’s offer is subject to eligibility, and its availability depends on whether your home is located in an eligible state.
Which one fits you
You can’t take on a payment and you want to stay
A home equity investment is the closest match. Start with Point, which starts at credit scores of 500. If you’re self-employed, our home equity for the self-employed guide covers the paperwork side.
You love your low mortgage rate
Don’t refinance it. An HEI leaves your first mortgage alone, which is the whole point. The trade is that you give up a share of future value instead of paying more interest.
You’re trying to clear credit card debt
An HEI can pay off balances with no new payment, but you’re swapping interest for a share of your home. Read how to use home equity to pay off credit card debt before you do it.
You want to buy another house
Cash from an HEI could work toward a down payment, but timing matters since you’ll settle later. See how to use home equity to buy another house.
You’re 62 or older and staying put
Price a reverse mortgage next to an HEI. The reverse mortgage has no mortgage payment but is a loan, and the HEI isn’t but gives up appreciation.
You’re ready to move anyway
Skip the whole thing and sell. Fees and a share of your gain make no sense if you’re leaving.
When a HELOC beats all of this
If you can carry a payment, a HELOC is usually cheaper than giving up a share of your home’s growth. Figure is one to price. Its HELOC takes credit scores from 600 in most states (640 in a few), the rate check is a soft pull, and it can fund in as few as 5 days. It’s still a loan with a monthly payment, so it only helps if your budget can handle that. More ideas are in our HELOC alternatives guide.
Check your offers
Looking at a number is free, and with an HEI you can run the flat, 20% and 50% scenarios before you commit to anything. Request more than one and compare.
More to read: the best home equity investment companies and Hometap vs Point.
Getting Equity Out of Your Home Without a Loan FAQs
The main ways are a home equity investment, selling or downsizing, a sale-leaseback, or a reverse mortgage if you’re 62 or older. A home equity investment gives you cash now with no monthly payment and no interest, and the company takes a share of your home’s value when you settle.
Yes. A home equity investment leaves your current mortgage and rate alone. Point funds $30,000 to $600,000 and Splitero funds $50,000 to $600,000, and you settle later when you sell, refinance or reach the end of the term.
A true home equity loan always has a payment. The closest things are a home equity investment, which has no monthly payment and no interest, and a reverse mortgage for people 62 or older, which is a loan but has no monthly mortgage payment. With a reverse mortgage you still pay property taxes and homeowners insurance.
Sometimes. Point takes credit scores from 500 and Splitero from 500, and neither requires income documents. Hometap could work from 575, among other qualifying criteria, if your home is located in an eligible state. A HELOC is harder, since Figure starts at 600 in most states.
It can cost more than a HELOC. The company takes a share of your home’s value, so the more it rises the more you settle for. Ask each company for the settlement amount if your home stays flat, rises 20% and rises 50%.
