Many HELOCs today charge around 8 to 10 percent interest, and every dollar you draw adds a monthly payment on top of your mortgage. If that math does not work for you, or you will not get approved, you have real alternatives in 2026.
Here are all seven, grouped by whether they add a monthly payment, starting with the ones that pay you a lump sum with no monthly bill.
Best HELOC Alternatives of 2026
Start with group 1 if the monthly payment is the problem. Group 2 costs less over time if you can carry a payment. Group 3 is for retirees only.
Cash now, nothing due each month
These three give you a lump sum today and settle later from your home's value. If a new monthly bill is the reason you are not getting a HELOC, start here.
1. Home Equity Investment (Our Top Pick)
$0/monthA home equity investment (HEI) gives you a lump sum of cash today, and the investor earns a share of your home's future value in return. It is not structured as debt. There are no monthly payments and no interest, and you settle the investment when you sell, refinance, or reach the end of the term. With Hometap, homeowners could access up to $600,000 on a 10 year term, with no prepayment penalties if you settle early. Homeowners with credit scores from 585 and at least 25% equity could qualify, among other qualifying criteria, if the home is located in an eligible state. The trade off is real: the faster your home appreciates, the more the settlement costs you, so run the numbers before you sign. We break down the fees and the settlement math in our Hometap review, and you can compare the whole field in our best home equity investment companies roundup.
Get a No-Obligation Hometap Estimate →Available only to residents of AZ, CA, DE, FL, GA, ID, IN, MI, MN, MO, MT, NV, NY, NJ, OH, OR, PA, SC, TN, UT, and VA.
2. Home Equity Agreement With Downside Protection
$0/monthUnison works on the same no-monthly-payment model but structures the deal differently. The term runs up to 30 years, and Unison shares in losses as well as gains, so if your home loses value you could settle for less than you received. Amounts run up to $500,000. Longer runway, downside sharing. We compare the two head to head in Hometap vs Unison, our Unison review covers the fine print, and our home equity agreement pros and cons guide explains how these agreements work in plain English.
See How Much Unison Could Offer You →Available only to residents of AZ, CA, DC, DE, FL, IN, KS, KY, MI, MN, MO, NE, NV, NJ, NM, NY, OH, OR, RI, SC, TN, UT, VA, and WI.
3. Home Equity Agreement for Lower Credit Scores
Credit from 500Most home equity products start at 620 and go up from there, which shuts out a lot of homeowners sitting on real equity. If credit is what has been stopping you, Nada is the one to look at. Scores as low as 500 qualify and there are no income requirements at all. Same structure as the options above, a lump sum now with no monthly payment, but reachable for people the rest of this list turns down. You see your offer from a soft credit pull, so finding out what you would get costs you nothing and leaves no mark on your report. Same appreciation share tradeoff as everything else in this category, so read the settlement terms before you sign anything.
See Your Nada Offer With a Soft Credit Check →Available only to residents of AR, AZ, CA, FL, KS, LA, MI, OK, OR, PA, SC, and WA.
Cheaper over time, if you can carry a payment
Debt-based routes. You keep all of your home's future value, but every dollar comes with a monthly payment and an income check.
4. Home Equity Loan
Fixed paymentA home equity loan is the fixed-rate cousin of the HELOC. You get one lump sum and repay it in equal monthly installments, so there is no variable-rate surprise and no temptation of a revolving credit line. It is still debt with a monthly payment, and you still need the income documentation and credit profile to qualify. If predictable payments are what pushed you away from a HELOC, this is the closest substitute. Most of the lenders in our best HELOC lenders guide offer both products. Our top-rated pick is Figure, which funds in as little as five days with no closing costs and a fixed rate on every draw.
Check Your Rate at Figure →5. Cash-Out Refinance
Resets your mortgageA cash-out refinance replaces your entire mortgage with a bigger one and hands you the difference in cash. It made sense when rates were falling. In 2026 it usually does not, because most homeowners hold a mortgage rate far below today's market and a cash-out refi resets the whole balance at the new, higher rate. Do this only if your current rate is already high or you need an amount the other options cannot reach. If you are on a low rate, a HELOC or a home equity investment leaves your first mortgage untouched.
Compare Against a HELOC Instead →6. Personal Loan
$1,000 to $50,000For smaller amounts, skipping your home entirely can be the right call. A personal loan closes in days, puts no lien on your house, and needs no appraisal. Rates run higher than home-secured borrowing, but for a $10,000 to $30,000 need the speed and simplicity often win. Upstart lends $1,000 to $50,000 and looks at more than your credit score. Compare the full field in our best personal loans guide.
Check Your Rate With Upstart →The retiree-only option
One product built for a narrow situation.
7. Reverse Mortgage (62 and Older)
No monthly paymentsHomeowners 62 and older can draw equity through a reverse mortgage with no monthly payments, and the loan is settled when the home is sold or the owner passes. Fees are high, the rules are complex, and it reduces what heirs inherit. It exists for a narrow situation: retirees who need income, plan to stay in the home for many years, and have talked it through with family. Get independent counseling before signing anything, and price a home equity investment first, since it has no age requirement and no monthly payment either.
Compare a No-Payment Option First →HELOC Alternatives Compared
| Option | Monthly payment | Amount | Credit | Best for |
|---|---|---|---|---|
| Home equity investment (Hometap) | None | Up to $600,000 | From 585 | No payment, 10-year term |
| Home equity agreement (Unison) | None | Up to $500,000 | Higher bar, around 620 | 30-year runway, shares losses |
| Home equity agreement (Nada) | None | Varies by equity | From 500 | Credit under 620 |
| Home equity loan | Fixed monthly | Varies by lender and equity | Varies by lender | Predictable payments |
| Cash-out refinance | Yes, resets your mortgage | Varies by equity | Varies by lender | Only if your current rate is high |
| Personal loan (Upstart) | Fixed monthly | $1,000 to $50,000 | Looks beyond the score | Smaller amounts, no lien |
| Reverse mortgage | None, settled at sale | Varies by age and equity | Not the main factor | 62 and older |
Enter your home value and mortgage balance and you will know in two minutes whether any of this is worth pursuing. No obligation, nothing submitted.
Frequently Asked Questions
QIs there any alternative to a HELOC?
Yes. Home equity investments and home equity agreements deliver a lump sum with no monthly payments and no interest. Home equity loans, cash-out refinancing, and personal loans are the debt-based routes. Which one wins depends on whether you want to carry a payment.
QCan I pull equity out of my home without refinancing?
Yes. A home equity investment sits alongside your existing mortgage, so you keep your current rate. That is the main reason these products took off while mortgage rates climbed: nobody wants to trade a 3 percent mortgage for a 7 percent one just to reach their equity.
QIs a home equity investment a loan?
No. It is not structured as debt, so there are no monthly payments and no interest rate, and it does not impact your debt-to-income (DTI) ratio. You settle the investment from your proceeds when you sell, refinance, or buy it out during the term.
QWhat if my credit score is under 620?
Most HELOC lenders want 620 or better, and the best rates go to 740 and up. Home equity investments work differently: Hometap considers credit scores from 585, among other qualifying criteria, if the home is located in an eligible state.
QWhat is the cheapest way to tap home equity?
If you qualify comfortably and do not mind a monthly payment, a HELOC or home equity loan is usually the lowest total cost. The no-payment options cost more over time in exchange for cash flow relief today. If a HELOC still fits, Figure offers a fast, fully digital one, or start with our best HELOC lenders comparison.
Bottom Line
If the monthly payment is the problem, a home equity investment is the alternative built for you. It costs nothing to see your number: get a no-obligation estimate from Hometap, then compare it against the other HEI companies before you commit. If you want the cheapest borrowing and can carry a payment, stick with a HELOC and shop it hard.
