Cash Out Home Equity With This Little-Known No Income Home Equity Loan

Our content may contain affiliate links. If you click a link and apply, we may receive compensation at no added cost to you. We work hard to provide great information and appreciate your support!

Believe it or not, no income home equity loans can still be found, but not where you might expect. We’ll cover a little-known way to tap into home equity without having to verify income.

What Is a Home Equity Loan?

The term home equity loan refers to any type of home loan that enables you to borrow against your home equity. Mortgage professionals also commonly refer to home equity loans as “cash out” mortgages, HELOCs, and second mortgages.

Home equity loans are typically offered by traditional banks and mortgage lenders, which tend to have strict income and credit qualifying requirements. If you have limited income and/or damaged credit, it may be difficult to get a home equity loan.

Having said that, here’s the good news: you may still have options even if you have trouble qualifying for a home equity loan because of income or credit. We’ll explain where you can potentially get a home equity loan with no income verification.

The No Income Home Equity Loan

Many homeowners across America are taking advantage of a unique and little-known no income home equity loan called a home equity share agreement.

Home equity share agreements are attractive because they offer access to home equity with no monthly mortgage payment and zero interest charges.

Because there are no payments, there are typically no minimum income requirements as well.

Homeowners commonly use the home equity share agreement to:

  • Reduce monthly expenses by paying off high interest credit cards, personal loans, auto loans, and other debts.
  • Rebuild credit scores by reducing credit card debt and paying off damaging collections and charge offs.
  • Pay burdensom medical, dental, and vet bills. 
  • Pay for home repairs and improvements.
  • Set up a rainy day fund to cover financial emergencies.
  • Pay for college tuition and expenses.
  • Make a large purchase.

There are typically no restrictions on how you use the funds. You can use the money for pretty much whatever you like. 

How a Home Equity Share Agreement Works

Home equity share agreements can be structured in a variety of ways, but here’s how they generally work:

  • You receive a large lump sum of cash based on the equity in your home. Again, you can use the cash for whatever you like: pay off debt, improve credit scores, pay medical, dental, or vet bills, do home improvements, pay college expenses, set up a rainy day fund, or make a large purchase.
  • No monthly payments are required and no interest is charged. The no payment feature is a big advantage over a cash out refinance, home equity loan, or HELOC.

In exchange for the lump sum, you agree to repay the lender a percentage of the value of your home at a future date, such as when you sell the home, the last borrower passes away, or the contract term ends.

  • You remain the owner of your home, which means you’ll continue to pay your property taxes, homeowner’s insurance, existing mortgage payments, and HOA dues (if applicable).
  • There are no minimum income requirements. Because there are no monthly payments, there are typically no minimum income requirements.
  • You can even qualify with bad credit. Minimum credit scores are usually around 500.
  • Keep your existing mortgage. You may be able to qualify with and keep your existing mortgage.

Home equity share agreements aren’t available in all states. Click the button below to find out if you’re eligible with Unlock, a leading provider.

Check Eligibility

Other Considerations

The home equity share agreement is a legitimate product, but there are some things you’ll want to consider to make sure it’s a good fit.

Remember, the lender eventually wants to get their money back plus a share of the home value. Home equity share agreements typically have an end date that ranges from 10 to 30 years, depending on who you’re working with. If you don’t sell your home by the end date, you’ll need to repay the investor using cash, another loan, or some combination of both.

Home share equity agreement companies often charge origination fees along with the usual home loan fees like title, escrow, recording, appraisal, credit report, etc. Your total closing costs could equal around 3% to 6% of your payout amount.

There may be additional fees at the end of the contract as well. Make sure the lender explains what to expect before you sign on the dotted line.

Even though there’s no payment, it’s still possible to default. Default events include falling behind on existing mortgage payments, property taxes, homeowner’s insurance, and HOA dues (if applicable).

Other defaults could include zoning restriction violations, unpermitted additions and modifications, bankruptcy, and letting the home fall apart.

If you default, you may have to reimburse the lender for fees incurred to work out and resolve the default. If the default is serious and can’t be resolved, you could face foreclosure.

The home equity share agreement is a legitimate product, but it’s different than what most homeowners are used to. Even if you’re working with a reputable company who discloses and explains everything thoroughly, it can be easy to overlook important considerations that could have a significant negative impact in the future. Make sure you thoroughly understand how the home equity share agreement works before you close.

Where Can I Get a No Income HELOC?

So, is it possible to get a HELOC with no income verification? Probably not. Most banks require at least some income and at least decent credit to qualify for a HELOC. Unless you have substantial assets on deposit, it’s unlikely a bank will be willing to offer a HELOC without income verification.

However, that doesn’t mean you can’t get a no income home equity loan. That’s essentially what a home equity share agreement is. It won’t operate as a revolving credit line like a HELOC, but it can at least give you access to home equity without having to verify income.

If you’re over the age of 62 and owe little to nothing on your home, you may consider checking into a reverse mortgage, which can be structured as a revolving line of credit like a HELOC.

A reverse mortgage also requires no monthly mortgage payments as long as at least one borrower lives in the home and pays the property taxes, homeowner’s insurance, and HOA dues (if applicable).

It’s possible to qualify for a reverse mortgage with no income. If you have at least some savings (money market, retirement account, savings, checking, etc.) in the bank, you can use that to qualify in place of income.

Frequently Asked Questions

Can you get a home equity loan without an income?

Yes, it’s possible to get a no income home equity loan, but not with a traditional bank or mortgage lender. You may want to consider a home equity share agreement, which is a type of no income home equity loan that doesn’t require a monthly payment. Because there is no monthly payment, there are usually no minimum income requirements.

Do you need to show proof of income for HELOC?

Yes, it’s possible to get a no income home equity loan, but not with a traditional bank or mortgage lender. You may want to consider a home equity share agreement, which is a type of no income home equity loan that doesn’t require a monthly payment. Because there is no monthly payment, there are usually no minimum income requirements. You can potentially qualify even if you can’t prove income.

How can I get equity out of my house without a job?

Yes, it’s possible to get a no income home equity loan, but not with a traditional bank or mortgage lender. You may want to consider a home equity share agreement, which is a type of no income home equity loan that doesn’t require monthly payments. Because there are no monthly payment, there are usually no minimum income requirements. You can potentially qualify even if you don’t have a job.

What disqualifies you from getting a home equity loan?

The most common reasons you can be turned down for a home equity loan is lack of equity, high debt-to-income ratio, and low credit scores. If you have significant equity in your home, but have been turned down based on income or credit, you may want to consider a type of no income home equity loan called a home equity share agreement. This type of no income home equity loan doesn’t require a monthly payment, which means there are usually no minimum income requirements.

Is a home equity share agreement a good idea?

Whether a home equity share agreement is a good idea or not depends on your goals and financial situation. Such agreements offer access to your home equity without a regular loan. No payment is required and zero interest is charged in exchange for a share of your future home value. A home equity share agreement could be a good option if you have limited income and/or poor credit and can’t qualify for a traditional mortgage, home equity loan, or HELOC.

Check Eligibility
Mike Roberts
About Mike Roberts

Mike Roberts is the founder of HEAZone.com, a published author, and a highly experienced veteran of the mortgage industry. When he's not working, he enjoys spending time with his family, skiing, camping, traveling, or reading a good book. Roberts is the author of The Reverse Mortgage Revealed: An Industry Insider’s Guide to the Reverse Mortgage, which is available on Amazon.