HEI Equity Requirements: How Much Do You Need? (2026)
The Scout Executive Summary
- Plan to keep 20% to 30% of your home. Most companies require your mortgage plus their cash investment to stay under 65% to 80% of your home’s value.
- Total debt decides your check. Approval depends on your total claims (CLTV), how much is owed on your home once the provider takes their share.
- Unused HELOCs shrink your cash. Open credit lines count at their full limit. An unused $50,000 HELOC cuts your cash offer by $50,000.
- Watch for hidden discounts. Low credit scores, property types, and appraisal risk adjustments can reduce your check below the advertised cap.
In This Article:
- How Much Equity Do You Need to Qualify for an HEI?
- What Is Combined Loan-to-Value and Why Does It Decide Your Approval?
- How Much Equity Does Each HEI Company Require?
- How Do You Calculate How Much Cash You Can Get?
- What Counts Against Your Equity?
- What Can Lower Your Effective CLTV Cap?
- Do You Need More Equity for an HEI Than a HELOC?
- What If You Do Not Have Enough Equity Yet?
- HEI Equity Requirements: Frequently Asked Questions
| HEI Provider | Equity You Keep | Max CLTV Cap | Max Cash Amount | Min. Home Value |
|---|---|---|---|---|
| Hometap | 25% | ~75% | $600,000 | Not Published |
| Nada | ~25% | 75% | $600,000 | Not Published |
| Point | ~27%+ | ~73% | $600,000 | $155,000 |
| Unison | ~30% | ~70% | $500,000 | Not Published |
| Splitero | ~35% | ~65% | $500,000 | $200,000 |
*Note: Requirements vary by state, credit score, and property type. Figures reflect standard published guidelines as of 2026.
How Much Equity Do You Need to Qualify for an HEI?
Most home equity investment providers want you to still own at least 20% to 30% of your home after they hand you the cash. As a practical starting point, homeowners with roughly 25% to 35% equity are often worth screening, but the actual result depends on the provider’s CLTV limit, property value, liens, state, and individual underwriting.
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That range is wide for a reason. These companies do not set a single equity number and apply it to everyone. They set a ceiling on the total claim against your house, then work backward to decide how much cash you can take.
Scout’s Note: Why Online HEI Numbers Conflict
If you see different equity minimums across search results, it’s because most HEI providers don’t enforce a single hard limit as the actual ceiling is calculated inside your individual offer based on your property, credit, and state. Treat any published percentage (including ours) as a general starting benchmark, not a guarantee.
So the honest answer has two parts. You probably need a quarter of your home free and clear to be worth applying. But what actually decides your approval, and the size of your check, is a ratio called CLTV. That is the next section, and it is worth understanding before you talk to anyone.
If the product itself is new to you, start with our guide to how a home equity investment works.
Featured Partners · No Monthly Payments
- Qualify in minutes. No credit impact.
- Close in as little as 3 weeks1
- Access up to $600,000
- MaturityMatch™ term alignment
- Keep your low-rate mortgage
- Access up to $500,000
1 “Close in as little as 3 weeks” reflects the average timeline under standard conditions. Actual timelines vary based on documentation, title, property location, and local recording or notarization requirements. Timing is not guaranteed.
Terms and conditions apply. Not all homeowners will qualify. Not available in all states. NMLS #1993600, www.nmlsconsumeraccess.org. See nada.co for complete details.
What Is Combined Loan-to-Value and Why Does It Decide Your Approval?
Combined loan-to-value, or CLTV, is every claim against your home added together and divided by what your home is worth. It is one of the main numbers an HEI provider uses to decide whether to fund you and how much you may be offered.
See if an HEI is right for your situation and check your estimate today.
Here is the plain version. Loan-to-value, or LTV, is just your mortgage divided by your home’s value. A $300,000 mortgage on a $500,000 home is a 60% LTV. Combined loan-to-value adds everything else on top: a second mortgage, a HELOC, and the HEI cash you are asking for. Same $500,000 home, $300,000 mortgage, and $75,000 from an HEI gives you a 75% CLTV.
Why the provider cares: an HEI puts a lien on your house, and that lien sits behind your mortgage in line. If the home sells for less than expected, the mortgage gets paid first. The provider only gets paid out of whatever is left. Capping CLTV is how they make sure something is left.
That is the whole logic. Every eligibility rule in this article flows from it.
How Much Equity Does Each HEI Company Require?
Requirements cluster in a narrow band, with Splitero the tightest and Nada and Hometap the most generous. Here is how the major providers compare on equity requirements and funding limits, keeping in mind that most set the final number inside your offer.
See if you qualify for an HEI with a brief digital check.
| HEI Provider | Max CLTV (Equity Retained) | Max % of Value | Cash Range |
|---|---|---|---|
| Nada | 75% (~25% retained) | Up to 30% | Up to $600,0001 |
| Hometap | 75% (at least 25% retained) | Up to ~25% | $15,000 to $600,000 |
| Point | ~73% (~27% retained) | Up to ~20% | $30,000 to $600,000 |
| Unison | ~70% (~30% retained) | Up to 15% | $30,000 to $500,000 |
| Splitero | ~65% (~35% retained) | Up to ~25% | Up to $500,000 |
Hometap and Point publish their figures directly. Other figures reflect reported limits and vary by individual offer. Current as of September 2026. Confirm final terms directly with each provider before applying.
Few providers publish a minimum home value. Point publishes $155,000 and Splitero publishes $200,000. Current as of September 2026. Confirm current terms directly. Nada’s maximum investment, percentage-of-value limit, state availability, and fees are subject to current program terms. Confirm your offer directly with Nada.
1 Funding amount shown is a maximum. Actual amounts depend on eligibility, property, and state. Terms and conditions apply. Not all homeowners will qualify. Not available in all states.
Two things to take from this. Splitero’s tighter cap means you need more equity to get in, but it is also the company with the longest term. And Unison’s smaller investment size means that even with plenty of equity, the check may be smaller than you expected.
For the wider comparison on cost, term, and credit, see our roundup of top HEI companies in Arizona and our Point review.
Scout’s Tip
Do not guess at whether you clear the bar. Most providers run a soft credit check at the estimate stage, which does not affect your score, and will tell you your number in a few minutes. Splitero publishes its eligibility terms up front, and our Splitero review covers the full picture. Checking two or three estimates can show how differently providers size the same house. Confirm whether each provider uses a soft or hard credit inquiry and whether any appraisal or application cost applies before proceeding.
Featured Partners · No Monthly Payments
- Qualify in minutes. No credit impact.
- Close in as little as 3 weeks1
- Access up to $600,000
- MaturityMatch™ term alignment
- Keep your low-rate mortgage
- Access up to $500,000
1 “Close in as little as 3 weeks” reflects the average timeline under standard conditions. Actual timelines vary based on documentation, title, property location, and local recording or notarization requirements. Timing is not guaranteed.
Terms and conditions apply. Not all homeowners will qualify. Not available in all states. NMLS #1993600, www.nmlsconsumeraccess.org. See nada.co for complete details.
How Do You Calculate How Much Cash You Can Get?
To estimate your maximum HEI payout, multiply your home’s appraised value by the provider’s CLTV cap, then subtract all existing mortgage balances and property liens. Your actual payout will be the lesser of this CLTV result or the provider’s maximum investment share limit (typically 15% to 30% of home value).
See if you qualify for an HEI with a brief digital check.
The Basic HEI Formula:
(Home Value × Max CLTV Cap) − Total Mortgage Balance = Maximum Available Cash
Worked Example:
- Appraised Home Value: $600,000
- Existing Mortgage Balance: $360,000 (60% LTV)
- Provider CLTV Cap: 75%
- Calculate total allowable debt: $600,000 × 0.75 = $450,000
- Subtract existing mortgage: $450,000 − $360,000 = $90,000
The Result: You could access up to $90,000 in cash (15% of your home’s value). You retain $150,000 in unencumbered equity, satisfying the provider’s 25% retained equity requirement.
If you have not sized your equity yet, our equity calculator can size your equity first.
Run These Three Numbers First
Before you apply anywhere, write down these three:
- Your home’s realistic value, not your Zestimate on a good day
- Every lien against the house, including any open HELOC at its full credit limit in case your provider counts it that way
- Your result from the formula above at both a 70% and an 80% cap
The gap between those two results is how much your provider choice is worth in cash. It is often tens of thousands of dollars on the same house.
Featured Partners · No Monthly Payments
- Qualify in minutes. No credit impact.
- Close in as little as 3 weeks1
- Access up to $600,000
- MaturityMatch™ term alignment
- Keep your low-rate mortgage
- Access up to $500,000
1 “Close in as little as 3 weeks” reflects the average timeline under standard conditions. Actual timelines vary based on documentation, title, property location, and local recording or notarization requirements. Timing is not guaranteed.
Terms and conditions apply. Not all homeowners will qualify. Not available in all states. NMLS #1993600, www.nmlsconsumeraccess.org. See nada.co for complete details.
What Counts Against Your Equity?
Recorded liens and other property obligations can reduce the amount available, not just your first mortgage. This is where homeowners get surprised, because several of these do not feel like debt.
See if you qualify for an HEI with a brief digital check.
- Your first mortgage. The current balance, not the original loan amount.
- A second mortgage or home equity loan. Current balance.
- A HELOC. This one catches people. Some providers count the full credit limit, not what you have drawn, because you could draw it tomorrow. If yours does, an untouched $50,000 line reduces your HEI cash by $50,000. Others may require the line to be reduced, frozen, or closed before funding, so ask each provider how it treats open lines.
- A solar loan or PACE assessment. Common in Arizona and frequently recorded against the property. Leases and power purchase agreements are treated differently by different providers, so ask.
- Tax liens, HOA liens, and judgment liens. These may need to be paid, subordinated, or otherwise resolved before funding, depending on the provider, lien priority, and title requirements.
- Deferred or past-due amounts from a forbearance or loan modification that were added onto your balance.
Scout’s Tip: The Lien Most People Forget
An unused HELOC counts against your HEI limit at its full credit line, not its zero balance. Calling your lender to reduce or close an unused $50,000 HELOC before applying can instantly restore up to $50,000 in available HEI cash. Just check for early closure fees first, and keep the line open if you might actually need the credit.
For more on how these claims sit against your title, see our guide to how an HEI lien affects your title.
What Can Lower Your Effective CLTV Cap?
Three things can tighten your cap or change your deal’s economics compared with the advertised numbers, and the third one is invisible until you read the offer.
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1. Your property type. Condos, townhomes, two to four unit buildings, and homes that are not your primary residence often get a stricter cap, commonly in the 65% to 70% range instead of 75% or 80%. Some providers will not touch certain property types at all. How the property is titled matters too, and our guide to property held in an LLC or trust covers that.
2. Your credit tier. Some HEI providers publish minimum credit scores around 500, which can be more flexible than many bank HELOC programs. A low minimum does not guarantee the same offer terms, investment amount, or eligibility as a stronger credit profile. A score near the bottom of the range often comes with less leverage, meaning a lower cap and a smaller check than a high-credit applicant would get on the same house.
3. The starting value discount. This is the quiet one. Some providers use an appreciation starting value or risk-adjusted value below the appraisal when calculating future value sharing. This can affect the economics of the agreement and, in some cases, the offer structure. Others use the full appraised value. For example, Point says its Appreciation Starting Value is lower than the appraised value, while Hometap says it bases its offer on the full appraised value without an adjustment. Depending on the provider’s methodology, a risk-adjusted starting value can make the agreement more expensive at settlement or affect how the offer is structured. Our Point vs Hometap comparison shows how two of those methods play out side by side.
Ask every provider three questions: what is my CLTV cap, what value are you using to size my offer, and what starting value will you use to calculate appreciation sharing. The last two are the ones most people never think to ask.
Do You Need More Equity for an HEI Than a HELOC?
Yes. Traditional banks usually allow higher borrowing limits against your equity than equity sharing platforms. For the lender side, see HELOC equity requirements in Arizona.
See if an HEI is right for your situation and check your estimate today.
Common max CLTV range: 80% to 85%
Equity you keep: 15% to 20%
Common max CLTV range: 65% to 80%
Equity you keep: 20% to 35%
The trade runs the other way on income. A HELOC needs proof of income, a debt-to-income ratio that clears the lender’s limit, and usually a credit score around 680 or better. Many HEIs do not use traditional income verification or debt-to-income underwriting in the same way as a HELOC. They can also accept lower credit scores than many bank HELOCs, but providers still review property, lien, credit, title, occupancy, and other risk factors.
So the two products screen for different things. A HELOC asks whether you can carry a monthly payment. An HEI asks whether there is enough value in the house to cover its position. If you have plenty of equity but irregular income, the HEI bar is easier to clear even though it is numerically higher.
Our HEI vs HELOC cost comparison runs the money side by side, and the Arizona HELOC guide covers the line of credit path. If you are planning to buy another property later, also read up on how lenders treat an HEI in your debt-to-income ratio, because the answer is not settled.
Scout’s Tip
If you are close to the line, price the alternative before you wait. A HELOC often lets you borrow against more of your home than an HEI will invest in, so the equity you have today may already clear a lender’s bar even if it does not clear a provider’s. Our Arizona home equity rates page tracks what lines and loans are actually pricing at this month, which tells you whether waiting for appreciation is costing you anything.
What If You Do Not Have Enough Equity Yet?
You have four realistic moves, and one of them costs nothing but a phone call. Falling short today does not necessarily mean falling short next year. Appreciation, principal paydown, a higher accepted valuation, or a reduced HELOC limit can all improve the calculation, but home values can also decline.
See if you qualify for an HEI with a brief digital check.
- Reduce or close an unused HELOC. The fastest fix, since it frees up room immediately without you paying down a dollar of principal.
- Get a second opinion on your value. If the provider used an automated estimate and your home has been renovated, ask what it would take to get a full appraisal. A higher value raises the whole calculation.
- Wait for appreciation. Arizona homeowners have crossed this threshold on price growth alone. A year can change the answer.
- Pay down the mortgage. Slowest, but the most reliable. Every dollar of principal moves the ratio in your favor.
One thing to skip: do not take out other debt to manufacture equity. It does not work, because a new loan is another lien and counts against your CLTV just like the mortgage does.
And before you stretch to qualify, be clear on what you are signing up for. An HEI comes due as one large payment, and what it costs to settle early surprises people. Qualifying and being a good fit are different questions.
HEI Equity Requirements: Frequently Asked Questions
See if you qualify for an HEI with a brief digital check.
Yes, and you are in the strongest position. With no mortgage, you are in a strong position on the equity calculation, though you still must meet the provider’s property, title, credit, occupancy, state, and other eligibility requirements. You can typically take out 20% to 30% of your home’s value in cash, up to each company’s dollar maximum.
Usually your check shrinks rather than your application getting denied. A lower value means your existing mortgage takes up a bigger share of the home, so the provider trims the cash to keep the total under its cap. If the gap is large enough, it can push you out of eligibility entirely.
It can. An open HELOC can reduce your available HEI amount, sometimes based on the full credit limit rather than the amount you have drawn. If your provider counts it that way, an untouched $50,000 line reduces your available HEI cash by $50,000. Ask each provider how it treats open lines, and whether reducing or closing an unused line before applying would free up room.
Yes. While HEI providers accept lower credit scores (around 500+), lower credit tiers often trigger lower CLTV limits, requiring you to keep more equity in the home.
No, and the spread is wide. Reported caps run from about 65% at the tightest to about 80% at the most generous, which is a large difference in cash on the same house. Getting estimates from two or three companies is worth the time.
Few providers publish one. Point publishes $155,000 and Splitero publishes $200,000, and the figure varies by company and by state. Very high value homes can also hit a ceiling, since providers cap the dollar amount they will invest.
Because most of these companies do not publish one. They set the number inside your individual offer based on your property, credit, and state. Hometap’s published 25% and Point’s published 27% are the exceptions. Treat any other figure as an estimate and confirm it directly.
Often yes. Condos, townhomes, two to four unit buildings, and properties that are not your primary residence frequently get a stricter cap, and some providers will not fund certain property types at all. Ask about your specific property before you apply.
Before you sign anything, our 11 questions to ask before signing covers what to pin down in writing.
EquitySquirrel is an educational resource operated by Scout Media LLC, not a lender or HEI provider. This content does not constitute financial, legal, or investment advice. HEI terms vary by provider and are subject to change; confirm current terms directly. Consult a licensed financial professional before making decisions about your home equity. Aleksandra Kadzielawski, Lic #SA694336000.
