8 Home Equity Options U.S. Homeowners Should Know

If you own a home, you're sitting on more borrowing and selling power than you might realize. The trouble is nobody hands you a full list of your options, so most people only ever hear about two or three: a HELOC, a home equity loan, maybe a cash-out refinance.

There are eight ways to put your home's equity, or the home itself, to work in 2026. Some are loans. Some aren't loans at all. Each one asks something different of your credit, your monthly budget, and whether you stay in your house or pack up and go. Here they are, laid out plain, so you can find the one that actually fits your life.

The 8 Ways to Access Your Home Equity in 2026

• Cash-Out Refinance: replace your current mortgage with a bigger one and pocket the difference.
• Home Equity Line of Credit (HELOC): a revolving credit line secured by your home.
• Home Equity Loan: a lump sum, repaid in fixed monthly installments.
• Reverse Mortgage: a loan for homeowners 62 and older that doesn't require monthly repayment.
• Home Equity Sharing Agreement: cash today in exchange for a share of your home's future value.
• Personal Loan: an unsecured loan that doesn't touch your home at all.
• Traditional Home Sale: list your house, sell to a buyer, and move on.
• Sale-Leaseback: sell your home outright and stay in it as a renter.

Here's what each one actually asks of you.

How Each Option Works

Cash-Out Refinance

A cash-out refinance replaces your existing mortgage with a new, larger one. You pay off the old loan and keep the difference in cash, then make one monthly payment on the new, bigger balance.

As of late June 2026, the average 30-year refinance rate is 6.79%, according to Bankrate. Lenders typically want a credit score of 620 or higher, and the best rates go to borrowers at 740 or above. Most conventional and FHA cash-out refinances cap what you can borrow at 80% of your home's value, though VA loans allow more. You'll also pay closing costs, typically 2% to 5% of the loan amount, and you restart your mortgage clock, so it can mean more years of payments even if the rate looks appealing.

Home Equity Line of Credit (HELOC)

A HELOC works like a credit card secured by your house. You get approved for a credit line, draw from it as needed, and pay interest on what you use, on top of your existing mortgage payment.

Lenders typically look for a credit score of 640 or higher to approve a HELOC, according to NerdWallet's lender survey. As of late July 2026, the average HELOC rate is 7.44%, according to Bankrate, and that rate is usually variable, so your payment can move with the market.

Because a HELOC is a loan, you still own the home. Property taxes, insurance, and maintenance stay your responsibility, and if your home's value drops, you still owe the full balance.

Home Equity Loan

A home equity loan gives you one lump sum upfront, which you repay in fixed monthly installments over a set term, similar to a second mortgage.

Lenders typically want a credit score of 680 or higher, according to NerdWallet. As of late July 2026, average rates run about 8.10% on a 5-year term and 8.25% on a 10-year term, according to Bankrate. The fixed payment is predictable, but it's still a new bill added on top of your mortgage.

Reverse Mortgage

A reverse mortgage, most commonly a Home Equity Conversion Mortgage (HECM), is the only option here with an age requirement. You must be 62 or older to qualify, according to the Consumer Financial Protection Bureau.

There's no required monthly mortgage payment. But because you still own the home, you're still responsible for property taxes, homeowners insurance, and upkeep, and falling behind on those can put the loan in default.

The federally insured version caps how much you can borrow. For 2026, that lending limit is $1,249,125, set by the U.S. Department of Housing and Urban Development. Expect an upfront mortgage insurance premium of about 2% of the amount you're approved to borrow, an annual premium of about 0.5% on your balance, and an origination fee capped at $6,000. Because nothing is paid monthly, interest and premiums add to your balance over time. It's a non-recourse loan, so you or your heirs will never owe more than the home is worth when it's time to repay, usually when you sell, move out, or pass away.

Home Equity Sharing Agreement

A home equity sharing company gives you a lump sum today in exchange for a share of your home's future value. There's typically no monthly payment, but you repay everything at once later, when the contract ends or you sell.

These companies tend to be flexible on credit. Some providers list minimum credit scores as low as 500, based on published lender data. But the CFPB has found that what you eventually repay can grow at an effective rate of roughly 19.5% to 22% a year in the early part of the contract, because it's tied to your home's future value rather than a fixed percentage. In one example the CFPB documented, a $50,000 advance required repaying anywhere from $94,074 to $215,892 within 10 years, depending on how much the home appreciated.

Personal Loan

A personal loan is unsecured, meaning it isn't tied to your home at all. No lien, no appraisal, no risk to the house if you fall behind, though your credit still takes a hit.

As of mid-2026, the average personal loan rate is around 12.2%, with a typical range of 8% to 36% depending on your credit, according to Bankrate. Some lenders will approve borrowers with scores as low as 300, but the lowest rates go to borrowers with excellent credit. Because it isn't secured by your home, a personal loan usually comes with a higher rate than a HELOC or home equity loan, and smaller borrowing limits, so it tends to fit smaller needs, not a full equity payout.

Traditional Home Sale

Selling your house the conventional way puts your full equity in your hands at closing, but it also means moving out.

As of early 2026, the average combined agent commission runs about 5.7% of the sale price, according to Clever Real Estate. Getting to a signed contract typically takes around two months, according to HomeLight, and Sell2Rent's own data puts the full process, listing to closing, at an average of about 80 days. Before that, most sellers handle repairs, staging, and showings, and there's no guarantee the first buyer's offer is the best one you'll get.

Sale-Leaseback

A sale-leaseback is not a loan. With a platform like Sell2Rent, you sell your home outright, receive your equity in cash at closing, and stay in the home as a renter, under a lease you agree to at closing.

There's no credit check on the seller. Sell2Rent charges 6% of the sale price or $15,000, whichever is greater, at closing, and that's the full cost. There's no interest and no balance that grows over time, because you aren't borrowing against your home. You're selling it. Closings average 20 to 25 days, with the fastest closings, when a seller has documentation ready, landing around 2 weeks.

Because you no longer own the home, property taxes, insurance, and maintenance shift to the new owner. You keep living in it, just without those bills.

Side-by-Side: How the Eight Options Compare

Who Each Option Tends to Fit Best

A cash-out refinance can make sense if today's rate beats what you're currently paying and you're comfortable restarting your mortgage term.

A HELOC or home equity loan can work if you want to keep building equity, are comfortable with a new monthly payment, and have the credit score to qualify.

A reverse mortgage is worth exploring if you're 62 or older, want to avoid a new monthly payment, and plan to stay in the home long term.

A home equity sharing agreement may fit if you want cash without a monthly bill and are comfortable sharing in your home's future appreciation.

A personal loan can cover a smaller, shorter-term need without putting your home on the line, but it's rarely enough to replace a real equity payout.

A traditional home sale fits homeowners who are ready to move and want their full equity in hand without an ongoing balance.

A sale-leaseback tends to fit homeowners who want their equity in cash now, would rather not take on a new payment or a growing balance, and want to stay exactly where they are. For a closer look at how that comparison plays out against a HELOC specifically, see 7 Reasons Homeowners Pick Home Equity Access Over HELOCs.

Where a Sale-Leaseback Like Sell2Rent Fits

If a new monthly payment, a credit check, a balance that could grow over time, or moving out are the parts that give you pause, a sale-leaseback addresses each of them directly:

• You unlock the equity in your home in cash, at closing.
• You stay in the home you know, as a renter, under a lease agreed to at closing.
• There's no credit check on the seller.
• The fee is flat and disclosed upfront: 6% of the sale price or $15,000, whichever is greater, at closing, nothing hidden.
• Property taxes, insurance, HOA dues, and maintenance shift to the new owner.
• Your home is marketed to a network of vetted investors, so you're not stuck with a single take-it-or-leave-it offer.

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That said, a sale-leaseback isn't the right fit for everyone. If your priority is keeping long-term ownership, building future appreciation, or eventually passing the home to your family as-is, one of the other seven options may make more sense. See the fuller picture in Home Equity Access Without Loans: A 2026 Guide for U.S. Homeowners.

A Quick Checklist: Is a Sale-Leaseback Worth a Look?

• You want cash from your equity without taking on a new monthly payment.
• You'd rather not risk a balance that grows over time.
• Staying in your current home matters more to you than staying its legal owner.
• A past credit issue has made loan-based options hard to qualify for.
• You're comfortable trading future ownership costs and appreciation for certainty now.

If most of these sound like you, a sale-leaseback is worth understanding in full.

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Frequently Asked Questions

Is a sale-leaseback the same thing as a cash-out refinance?

No. A cash-out refinance replaces your mortgage with a bigger one, so you still owe a monthly payment. A sale-leaseback is a sale. You transfer ownership, receive your equity in cash, and stay on as a renter. There's no loan and no monthly mortgage payment.

Do I need good credit for a sale-leaseback?

Sell2Rent doesn't require a credit check on the seller. A cash-out refinance, HELOC, or home equity loan typically does.

What happens to my property taxes and insurance after a sale-leaseback?

They become the new owner's responsibility. As the renter, you pay rent under the lease agreed to at closing.

How fast can I close on a sale-leaseback?

Sell2Rent closings average 20 to 25 days, with the fastest closings around 2 weeks when documentation is ready. Timelines depend on the property and how quickly paperwork comes together.

Is this article financial or legal advice?

No. This article is for general education only. Home equity decisions affect your taxes, your credit, and your long-term finances, so talk with a licensed financial advisor, tax professional, or attorney about what fits your specific situation before you decide.

See What Your Equity Could Look Like

You don't have to compare all eight of these options on your own. See how much equity you could unlock, a free, no-obligation analysis. No credit check, and no pressure to move forward.