You've paid on that mortgage for years. Your house is worth more than it's ever been. Try telling that to the bills sitting on your kitchen counter.
If you've started looking into ways to get cash out of your home, you've probably found the same three options everywhere: a HELOC, a home equity loan, or a reverse mortgage. What most of those articles leave out is that two more paths exist, a home equity sharing agreement and a sale-leaseback, and skipping them could mean missing the option that actually fits your life.
Home equity access isn't one decision anymore. It's five different products, each with its own rules for credit, cost, monthly payments, and what happens to your home along the way. Here's a plain-English look at how each one works, so you can pick the one that fits you, not just the one that showed up first in your search.
The Five Ways to Access Your Home Equity in 2026
Most homeowners only hear about three choices: a HELOC, a home equity loan, or a reverse mortgage. Two more options exist, and neither one works like a loan.
Below is what each one actually asks of you, in plain terms.
How Each Option Works
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 is 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 is no required monthly mortgage payment. But because you still own the home, you are 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 are 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 is a non-recourse loan, so you or your heirs will never owe more than the home is worth when it is 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 is 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.
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 is no credit check on the seller. Sell2Rent charges a flat 6% fee at closing, and that's the full cost. There is 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 Five Options Compare
The breakdown below covers credit requirements, monthly payments, typical costs, and what happens to ownership costs for each option.
Who Each Option Tends to Fit Best
A HELOC or home equity loan can make sense if you want to keep building equity, are comfortable with a new monthly payment, and have the credit score to qualify.
A reverse mortgage can be worth exploring if you are 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 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 are comfortable trading long-term ownership for certainty today. 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, or a balance that could grow over time are the parts that give you pause, a sale-leaseback addresses each of them directly:
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 four options may make more sense. See the fuller picture in Home Equity Access Without Loans: A 2026 Guide.
A Quick Checklist: Is a Sale-Leaseback Worth a Look?
If most of these sound like you, a sale-leaseback is worth understanding in full. Learn more about how a sale-leaseback supports housing stability.
Frequently Asked Questions
Is a sale-leaseback the same thing as a reverse mortgage?
No. A reverse mortgage is a loan you take out against your home, available only to homeowners 62 and older, and the balance grows over time. A sale-leaseback is a sale. You transfer ownership, receive your equity in cash, and stay on as a renter. There is no loan, no age requirement, and no growing balance.
Do I need to be a certain age to do a sale-leaseback?
No. Unlike a reverse mortgage, a sale-leaseback has no minimum age requirement.
Do I need good credit?
Sell2Rent does not require a credit check on the seller. A 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?
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 five of these options on your own. See how much equity you could unlock, a free, no-obligation analysis from Sell2Rent. No credit check, and no pressure to move forward.
Real estate innovator and Managing Partner at PIA Residential and Sell2Rent, boasting over 20 years of experience and 2,000+ units acquired. A Wharton MBA and Forbes contributor, he brings institutional-grade authority to every market insight he shares. Danny’s expertise is further validated by his role on the Planning and Zoning Board for the City of Hallandale, where he helps shape the local landscape. For readers seeking credible, battle-tested advice, Danny offers the perspective of a leader who has successfully navigated decades of market cycles.
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