Can You Get a Home Equity Investment (HEI) on a Condo or Townhome?

In This Article:

• Can You Get an HEI on a Condo or Townhome?
• What Is the Difference Between a Condo and a Townhome for an HEI?
• How Do You Tell If Your Arizona Townhome Is a PUD or a Condo?
• Which HEI Companies Accept Condos and Townhomes?
• Why Can a Condo Be Turned Down If the Company Accepts Condos?
• Does Owning a Condo Change How Much an HEI Will Give You?
• Can You Use an HEI to Pay an HOA Special Assessment?
• What If Your Condo Doesn’t Qualify for an HEI?
• Is an HEI a Good Fit for a Condo or Townhome Owner?
• Frequently Asked Questions

If you own a condo or townhome, you may have noticed something confusing when you shop for a Home Equity Investment. One company says it accepts condos. Another lists townhomes but not condos. A third accepts “site condos,” which most people have never heard of.

The reason is simple once you see it. HEI companies don’t sort homes by shared walls or how many stories they have. They sort them by how the property is legally owned. Two homes that look identical from the street can be a PUD and a condo on paper, and that can change your answer.

This guide explains the difference, shows which companies fund each type, and walks through how to check your own deed before you apply.

Can You Get an HEI on a Condo or Townhome?

Yes, you can get an HEI on most condos and townhomes, but not with every company and not on every building. A Home Equity Investment gives you cash today in exchange for a share of your home’s future value, with no required monthly payment. You settle the agreement when you sell, refinance, or reach the end of the term, which may mean selling the home if you can’t settle another way. Several major providers list condos and townhomes as eligible property types.

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What decides your answer comes down to three things:

• How your home is legally owned: a PUD townhome, a traditional condo, or a site condo.
• Which company you apply with: each one sets its own list of eligible property types.
• The health of your building and HOA: for condos especially, the review looks past your unit to the whole community.

You also still need to meet each company’s requirements on equity, credit, location, and property condition, and some companies review income as well. For the full list, see who qualifies for an HEI.

What Is the Difference Between a Condo and a Townhome for an HEI?

The difference is what you legally own: with a PUD townhome you own the land under your home, and with a condo you own your unit plus a shared slice of everything else. The word “townhome” describes a building style, not a type of ownership, so a townhome can be either one.

Curious what you’d qualify for? Pre-qualification takes minutes with no impact on your credit. See your estimate.

PUD (planned unit development). You own your home and the lot it sits on. The HOA owns and maintains shared areas like the pool or the greenbelt, and you pay dues for them. Because you own your own piece of land, HEI companies usually review a PUD townhome much like a single-family home.

Condominium. You own the inside of your unit. The building, the roof, the land, and the shared areas are owned together by all the owners through the association. Since your home’s value is tied to the whole building, a condo review looks at the HOA’s finances, insurance, and legal situation, not just your unit.

Site condo. This is a hybrid. It is legally set up as a condo, but each home usually stands on its own, often looking like a single-family house. Some companies, including Nada, accept site condos while excluding traditional condos.

One catch for master-planned communities: a condo building inside a larger PUD is still a condo. Living in a PUD community doesn’t make every home in it a PUD.

How Do You Tell If Your Arizona Townhome Is a PUD or a Condo?

You can usually tell by checking the legal description on your deed and the name of your community’s recorded declaration. It takes a few minutes and can save you an application that was never going to work.

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1. Read your deed’s legal description. A PUD home is usually described as a numbered lot on a recorded plat, such as “Lot 42.” A condo is usually described as a numbered unit in a named condominium, such as “Unit 1042.”
2. Check the title of your community’s declaration. Condos are created by a recorded “Declaration of Condominium” under Arizona’s Condominium Act (A.R.S. 33-1201 and following). Most PUD communities use a declaration of covenants, conditions, and restrictions under Arizona’s Planned Communities Act (A.R.S. 33-1801 and following). Your HOA or the Maricopa County Recorder can give you a copy.
3. Look at your title policy. The owner’s title policy from your purchase often names the property type.
4. Ask your HOA management company. They can tell you which act governs the community and send the documents an HEI company may ask for later.

Which HEI Companies Accept Condos and Townhomes?

Point, and Splitero list both condos and townhomes as eligible, while Nada accepts townhomes and site condos but not traditional condos. Hometap lists condos but doesn’t name townhomes, so confirm directly.

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Based on each company’s published eligibility list as of October 2026. Eligibility also depends on state, equity, credit, home value, and the property review, and lists can change. Confirm directly before you apply.

For how these companies compare on cost and terms, see our list of HEI companies in Arizona.

Why Can a Condo Be Turned Down If the Company Accepts Condos?

A condo can be turned down because the HEI company reviews the building and the HOA, not just your unit. Your unit can be in great shape and still not qualify if something about the community raises a red flag.

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These are the issues most likely to stop a condo HEI:

• The building works like a hotel. Condotels, buildings with a front desk and rental pool, and complexes that operate mostly as short-term rentals are often treated as commercial property. Nada and others exclude condotels by name.
• The HOA or property is in a lawsuit. Some HEI providers may require that the property not be subject to any pending lawsuits. A suit against the builder over defects can be enough to pause a deal until it is resolved.
• The HOA’s finances look shaky. Mortgage rules are a useful guide here. Freddie Mac, for instance, won’t back condo mortgages in an established project where more than 15% of units are 60 or more days late on HOA dues. HEI companies set their own standards, but they may look at the same signs: late dues, thin reserves, and large special assessments.
• Condition or comparable sales. Some providers may require a property condition rating of C4 or better on the appraisal. It also says homes without good comparable sales may not qualify, which can affect unusual or one-of-a-kind buildings.
• Insurance gaps. Expect to show proof of insurance. Some companies accept the HOA’s master policy for a condo, while others may also ask for your own condo policy, often called an HO-6, which covers the inside of your unit.

Rules on these issues differ by company and can change, so ask each one what it requires before you pay for an appraisal.

Does Owning a Condo Change How Much an HEI Will Give You?

Owning a condo can limit what an HEI offers, mostly because of minimum home values and how hard the unit is to appraise. The basic math is the same as for any home: the company looks at your home’s value, what you owe on it, and its own limits.

Get a preliminary funding estimate with a brief digital check.

Two condo-specific things to watch:

• Minimum home values. Each company sets a floor. Point requires a home worth at least $155,000, and Splitero’s range starts at $200,000. A smaller condo near or below that floor may not qualify at all.
• The appraisal. Condos are usually valued against recent sales of similar units, ideally in the same complex. Few recent sales, or sales that include distressed units, can pull your value down.

The value the appraiser sets also becomes the starting point for your agreement. For how that value drives the cash you can get, see HEI equity requirements and the home equity calculator.

Can You Use an HEI to Pay an HOA Special Assessment?

Yes, you can generally use HEI cash to pay an HOA special assessment, since Point, Hometap, Nada, and Unison all say they don’t restrict how you use the money. A special assessment is a one-time charge the HOA bills owners for a big project, like a new roof or a pool rebuild, and it can run into the thousands of dollars per unit.

Two cautions apply. First, a large pending assessment can itself become an issue in the condo review, so tell the HEI company about it up front. Second, an HEI is a costly way to cover a bill that a payment plan from your HOA might handle. Ask your HOA about installment options first, and compare the cost with a HELOC or home equity loan.

What If Your Condo Doesn’t Qualify for an HEI?

If your condo doesn’t qualify with one HEI company, apply with another whose rules fit your building, or look at a home equity loan or HELOC. Because each company sets its own list, a “no” from one is not a “no” from all.

Curious what you’d qualify for? Pre-qualification takes minutes with no impact on your credit. See your estimate.

• Try a provider that lists your property type. A traditional condo owner turned down for property type by a townhome-only provider may still qualify elsewhere.
• Compare a HELOC or home equity loan. These have monthly payments, but they usually cost less over time if you qualify. Start with our Arizona HELOC guide.
• Check the right guide for your home. If you own a duplex, triplex, or fourplex, see HEI rules for 2-4 unit homes. If the condo is a rental, see HEIs on investment properties. If it’s held in an LLC or trust, see HEIs on LLC and trust property.

Is an HEI a Good Fit for a Condo or Townhome Owner?

An HEI is a good fit for a condo or townhome owner who has plenty of equity, needs cash without a new monthly payment, and owns a property type the provider accepts. It is a poor fit when a cheaper loan would work or when the building itself is likely to fail the review.

Find out how much equity you can access with a pre-qualification.

It may fit if you:

• Own a PUD townhome, site condo, or condo in a well-run, owner-occupied community
• Want to keep a low-rate first mortgage
• Have a tight monthly budget and want to avoid a new monthly payment
• Have a plan to settle within the HEI’s term, such as a future sale or refinance

It may not fit if you:

• Own a unit in a condotel or a building with an active HOA lawsuit
• Own a home worth less than the company’s minimum value
• Qualify for a HELOC or home equity loan with a payment you can manage
• Plan to stay long past the HEI term with no clear way to settle

An HEI also comes with costs and duties: upfront fees, a settlement that can grow with your home’s value, and a requirement to keep paying your mortgage, taxes, insurance, and HOA dues and to keep the home in good repair. For the full picture, see HEI pros and cons.

Frequently Asked Questions

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.