Many or all companies we feature compensate us. Compensation and editorial research influence how products appear on a page. Home Equity How to Sell the Equity You’ve Built in Your Home to Access Cash Updated Nov 12, 2025 4-min read Expert Approved Expert Approved This article has been reviewed by a Certified Financial Planner™ for accuracy. Written by Alene Laney Written by Alene Laney Expertise: Mortgages, loans, personal finance Alene Laney is a personal finance writer specializing in mortgages, home equity, and consumer financial products. A credit card rewards enthusiast and mother of five, Alene enjoys sharing money-saving and money-making strategies. Learn more about Alene Laney Edited by Kristen Barrett, MAT Edited by Kristen Barrett, MAT Expertise: Student loans, mortgages, personal loans, home equity, investing Kristen Barrett is a managing editor at LendEDU. She lives in Cincinnati, Ohio, with her wife and their three senior rescue dogs. She has edited and written personal finance content since 2015. Learn more about Kristen Barrett, MAT Reviewed by Chloe Moore, CFP® Reviewed by Chloe Moore, CFP® Expertise: Equity compensation, home ownership, employee benefits, general finance Chloe Moore, CFP®, is the founder of Financial Staples, a virtual, fee-only financial planning firm based in Atlanta, Georgia, and serving clients nationwide. Her firm is dedicated to assisting tech employees in their 30s and 40s who are entrepreneurial-minded, philanthropic, and purpose-driven. Learn more about Chloe Moore, CFP® If you’re house rich but cash poor, you’re not alone. Maybe your home’s value has risen, but your cash flow hasn’t. Selling some of your equity can help you turn your home’s value into money you can actually use, without selling your home or taking on new monthly debt. Here’s how selling equity through a home equity agreement works, plus other ways to access your home’s value. Table of Contents What does it mean to sell equity in your home? How it works Pros and cons Where can I get a home equity agreement? Other ways to access home equity 1. Home equity line of credit (HELOC) 2. Home equity loan 3. Cash-out refinance 4. Home sale-leaseback How much equity can you sell or borrow? What does it mean to sell equity in your home? When you sell equity in your home, you’re typically entering a home equity agreement (HEA), sometimes called a home equity investment (HEI). It lets you exchange a portion of your home’s future value for cash today. Instead of a traditional home equity loan or line of credit, an HEA allows you to share a portion of your home’s future appreciation when you sell your home or reach the end of your agreement term (often 10 to 30 years). How it works You receive a lump sum, often up to a percentage of your home’s current value (10% and 20% are standard). The company takes an ownership stake tied to your home’s future value. You repay the original amount plus a share of appreciation when you sell or settle. Example: If your home is worth $500,000 and you sell 10% of your equity for $50,000, the company might receive 30% to 40% of your home’s appreciation when you sell. Pros and cons Pros Access home equity without new debt or monthly payments No credit score or income requirements You can stay in your home Cons Give up a share of your home’s future appreciation Can be costly if your home gains significant value Read more about the pros and cons of home equity agreements. Where can I get a home equity agreement? These are our picks for the best home equity agreement providers: Best Overall 4.8 Visit Site Visit Site Funding $15K – $600K Monthly Payments None Term Length 10 years Min. Credit Score 550 4.8 Visit Site Best for Partial Payments 4.7 Visit Site Visit Site Funding $15K – $500K Monthly Payments None Term Length 10 years Min. Credit Score 500 4.7 Visit Site Best for Longer Terms 4.6 Visit Site Visit Site Funding $30K – $500K Monthly Payments None Term Length 30 years Min. Credit Score 500 4.6 Visit Site Selling or tapping into your home equity is not a decision to take lightly. “There are real risks, like losing your home if you miss payments or owing more than it’s worth if property values fall. Always consider why you need the funds and how you’ll repay them. Chloe Moore , CFP® Other ways to access home equity If you’d rather borrow against your home than sell equity, you have several options. Each has unique pros, cons, and qualification requirements. 1. Home equity line of credit (HELOC) A HELOC works like a credit card backed by your home. You can draw from the credit line as needed during a 10-year draw period and pay interest only on what you borrow. Example: Home value: $500,000 Line of credit: $100,000 Amount drawn: $5,000 at 10.36% variable APR Pros Borrow only what you need Lower rates than unsecured loans Flexible repayment options Cons Variable interest rates are standard Must qualify based on credit and income Risk of foreclosure if you can’t repay Best HELOC: Figure offers fixed rates, fast funding, and a fully digital process. Check out our full list of the best HELOC lenders. 2. Home equity loan A home equity loan provides a one-time lump sum with fixed monthly payments. It’s sometimes called a second mortgage. Example: Home value: $500,000 Loan amount: $100,000 APR: 9.49% fixed Monthly payment: $1,293 Pros Fixed rate and predictable payments Long repayment terms All funds disbursed upfront Cons Closing costs may apply Home secures the loan 2 monthly mortgage payments Find the right home equity loan lender for you: LendingTree is a marketplace with an extensive network of lenders, so you can get multiple loan offers by filling out a single application. 3. Cash-out refinance A cash-out refinance replaces your current mortgage with a larger one and gives you the difference in cash. Example: Home value: $500,000 Current mortgage: $200,000 New loan (80% LTV): $400,000 Cash out: $200,000 Pros 1 monthly payment Potential for a lower rate Large lump sum available Cons Resets your loan term Closing costs required May raise your payment Best cash-out refinance lender: SoFi offers the opportunity to prequalify and view rates online without affecting your credit score. Check out our full list of the best cash-out refinance companies. 4. Home sale-leaseback A sale-leaseback lets you sell your home and then rent it back from the buyer. You gain full access to your equity but no longer own the property. Pros Access all your equity immediately No mortgage payments Stay in your home as a renter Cons Lose ownership and future appreciation Pay rent instead of building equity Best home sale-leaseback: Truehold. After selling your home to Truehold, you can lease it back for as long as you need, with a minimum lease term of six months. Check out our list of the best home sale-leaseback companies. How much equity can you sell or borrow? How much you can access depends on your loan-to-value ratio (LTV), which compares your current mortgage balance to your home’s appraised value. TypeTypical equity accessHome equity loan / HELOCUp to 80% of home valueCash-out refinanceAround 80% of home valueReverse mortgage20% – 75% depending on age and rateHome equity agreement70% – 85% combined LTVSale-leaseback100% of your equity Bottom line Selling equity through a home equity agreement can be a smart way to turn your home’s value into cash without taking on debt. But depending on your credit, income, and long-term goals, borrowing options like a HELOC or refinance may be a better fit. Before you decide, consider how much risk you’re comfortable with and how long you plan to stay in your home. About our contributors Written by Alene Laney Alene Laney is a personal finance writer specializing in mortgages, home equity, and consumer financial products. A credit card rewards enthusiast and mother of five, Alene enjoys sharing money-saving and money-making strategies. Edited by Kristen Barrett, MAT Kristen Barrett is a managing editor at LendEDU. She lives in Cincinnati, Ohio, with her wife and their three senior rescue dogs. She has edited and written personal finance content since 2015.