HEI vs HELOC comes down to the monthly payment. If you can qualify for a home equity line of credit (HELOC) and afford the payment, it usually costs less, because you pay interest on what you owe and keep all of your home’s future value. When your credit, income paperwork or budget rules that out, a home equity investment (HEI), also called a home equity agreement, gives you cash with no monthly payment in return for a share of what your home is worth when you settle.
The short answer: Choose a HELOC if your credit score is 600 or higher, you can document your income and the payment fits your budget. Choose a home equity agreement if a HELOC is out of reach or a new payment would strain you, and you have a realistic plan to settle within the term (10 years at most companies) by selling, refinancing or using savings. If you can afford a payment and expect the home to gain value, a HELOC is very likely the cheaper of the two.
Check what you could get from your home’s value and mortgage balance, then use the comparison below to choose.
A note on names: HEI is the search term, but companies label the product differently. Hometap and Splitero call theirs a home equity investment. Unlock calls its product a home equity agreement (HEA), and the Consumer Financial Protection Bureau (CFPB) calls the whole category home equity contracts. On this page we use home equity agreement as the plain umbrella term, and our home equity guides cover other ways to use your equity.
HEI and HELOC compared side by side
The agreement column reflects the published terms of Hometap, Unlock and Splitero. The HELOC column draws on the CFPB’s description of how HELOCs work and Figure‘s published terms. All of it was read on October 6, 2026.
| What to compare | Home equity agreement (HEI) | HELOC |
|---|---|---|
| Monthly payment | None. Your traditional mortgage, property taxes and insurance stay with you. | Yes. Payments begin right away and include interest. With a variable rate, the payment could change from month to month. |
| What you owe at the end | One settlement: an agreed percentage of your home’s value on that day, limited by a cap at some companies. It comes due when you sell or reach the end of the term. | Nothing, if your payments covered principal and interest. Some HELOCs ask for interest only during the draw period, and the CFPB says payments are often much higher in the repayment period that follows. |
| Credit score needed | 500 at Unlock and Splitero, 575 FICO at Hometap. | 600 in most states at Figure and 660 for investment properties. Its rate estimator starts at 640. |
| Income needed | No income or employment requirement at the three companies. Unlock does verify rental income on investment properties. | Verified. Figure checks income and employment and doesn’t lend to unemployed applicants. |
| How fast | About one to two months. Hometap says as little as 30 to 45 days. Unlock says 30 to 60 days. | Figure advertises approval in as little as 5 minutes and funding in as few as 5 days for qualifying loans under $400,000. Other lenders differ. |
| How much | Up to $600,000 at Hometap (27% of home value at most) and at Splitero (25% at most). Up to $500,000 at Unlock. | $15,000 to $750,000 at Figure, based on your equity, credit and income. |
| If your home’s value changes | What you owe tracks it: more if the home gains value, less if it loses value, though it could still exceed the cash you received. | What you owe doesn’t change. You keep any gain, and the lender could freeze or reduce an unused line if the value falls. |
| If you sell | The settlement is based on the sale price and is paid from the proceeds. Settling in the first year or two is expensive relative to the cash received. | The balance is paid from the proceeds. The CFPB notes you’re generally required to pay off a HELOC in full when you sell. |
| If you refinance later | The company holds a lien on the home, and each sets its own conditions for staying in place behind a new first mortgage. Details are below. | A HELOC is a second mortgage, so the HELOC lender typically has to agree to remain in second position or be paid off. |
| Fees at closing | 4.5% at Hometap, 4.9% at Unlock and 4.99% at Splitero, plus third-party costs, typically taken out of the cash you receive. | 0% to 4.99% origination fee at Figure. Other lenders may charge appraisal fees and closing costs. |
| Term | 10 years at Hometap and Unlock. 10 to 30 years at Splitero. | 10, 15, 20 or 30 years at Figure. The CFPB’s example of a bank HELOC is a 10-year draw period followed by a repayment period of 10 or 20 years. |
| Tax treatment | IRS Publication 936 doesn’t mention home equity investments or agreements. Ask a tax professional how a settlement would be treated. | Under IRS Publication 936 (2025 returns), interest is deductible only if the money is used to buy, build or substantially improve the home that secures the line, and only if you itemize. |
| Is your home at risk? | Yes. You must settle by the end of the term, and the CFPB warns that homeowners who can’t may have to sell or face foreclosure. | Yes. The home is the collateral, so you could lose it if you fall behind on payments. |
The company figures are published minimums and maximums, not offers. Your terms rest on your home, your equity and your credit.
How the cost of each one is worked out
A HELOC’s cost is interest. You’re quoted an annual percentage rate (APR), interest builds on the balance you owe, and every payment lowers what’s left. Some lenders add an origination fee. Figure‘s HELOC differs from the classic bank line in two ways that matter here: you draw the full amount at closing, and it offers fixed as well as variable rates.
An agreement’s cost is the difference between the cash you receive and the amount you settle for. The company gives you a percentage of your home’s current value in cash and, in exchange, is owed a larger percentage of the home’s value on the day you settle. Since nothing is paid monthly, the whole cost lands at settlement, and you won’t know the dollar amount until then, because it depends on what the home is worth.
Hometap publishes its numbers, so it makes a useful example. Receive 10% of your home’s value, and the Hometap Percentage is 16.5% of the home’s value if you settle in years 0 to 5 and 18% if you settle in years 6 to 10. In some scenarios the Hometap Cap could limit the Hometap Share: it is an 18.5% annual rate on the Investment amount, compounded monthly, and may vary by state. Splitero‘s published example works the same way with its own numbers: a 10% investment is paired with a 20% split percentage, and its Safety Cap is a 17.99% annual rate, compounded monthly.
Example: $50,000 over 10 years
This is an illustration and not a quote. The first table is drawn from Hometap‘s public pricing calculator. The second shows a fixed-rate HELOC at the lowest and the highest APR that Figure publishes. Each assumption is listed under the tables.
| Home value over 10 years | Home is worth | Hometap Share at settlement |
|---|---|---|
| Falls 8% in total | $460,000 | $82,800 |
| Falls 4% in total | $480,000 | $86,400 |
| No change | $500,000 | $90,000 |
| Rises 3.25% a year | $688,447 | $123,920 |
| Rises 8% a year | $1,079,462 | $194,303 |
Source: Hometap’s pricing calculator on October 6, 2026, for a $500,000 home, a $50,000 Investment (10% of the home’s value) and settlement in year 10, with California selected. The Hometap Share is 18% of the home’s value in every row, and there are no monthly payments to Hometap. Hometap describes the estimate as illustrative and based on a well-qualified homeowner with at least 25% equity in the home.
| $50,000 HELOC from Figure | Monthly payment | Total paid in 10 years | Interest |
|---|---|---|---|
| At 7.35% APR | $590 | $70,752 | $20,752 |
| At 14.85% APR | $802 | $96,251 | $46,251 |
Our arithmetic: $50,000 at a fixed APR, repaid in 120 equal monthly payments, with no additional draws. 7.35% and 14.85% are the lowest and highest initial APRs Figure listed on October 6, 2026. Figure says its lowest APRs go to its most qualified applicants who choose a 10-year term, and that they may involve paying a higher origination fee.
What the illustration leaves out: fees and timing. Hometap’s fee is 4.5% of the Investment amount, which is $2,250 here, plus third-party costs. Figure’s origination fee is 0% to 4.99% of the draw, up to $2,495 here. The HELOC payments are spread over 10 years while the settlement is one payment in year 10, and the totals aren’t adjusted for when the money leaves your account.
How to read it: at the low end of Figure’s range, the HELOC costs less than the agreement in all five scenarios, and that includes the two where the home loses value. At the high end, the HELOC’s $96,251 total is more than the settlement if the home’s value is flat or lower ($82,800 to $90,000) and less than the settlement if the home gains 3.25% a year ($123,920). The two come out even when the home is worth about $535,000 in year 10, a gain of roughly 7% over the decade.
What the totals hide is the payment. The HELOC asks for $590 to $802 every month, starting now, and you have to qualify for it. The agreement asks for nothing until settlement, then everything at once. That’s the trade you’re choosing between. For a home equity loan payment worked next to an agreement settlement, see home equity loan vs home equity investment.
The CFPB ran a similar comparison in a January 2025 report on home equity contracts, using a hypothetical contract and an interest-only HELOC at 9%. It found the contract cost more whenever the home appreciated, and cost less only if the home’s value fell by at least 5% over the 10 years. It also noted that origination fees are typically much higher on home equity contracts than on HELOCs.
Get an estimate from Hometap to see which amount and percentage you could be offered. To price the other side, find your HELOC rate at Figure.
The differences that decide the outcome
Can you qualify for the payment?
A HELOC is underwritten like a mortgage. Figure verifies income and employment, suggests keeping your debt-to-income ratio below 50% and sets a credit floor. The three agreement companies on this page publish no income or employment requirement and credit floors of 500 to 575. If you can’t document income or your score is under 600, the choice may already be made for you.
How long you’ll keep the home
Either one is settled when you sell, but an agreement is costly over a short stay. In Hometap‘s calculator, the same $50,000 Investment settles for $60,076 after one year and $96,806 after five, at 3.25% annual appreciation. Hometap itself says an HEI might not be the best fit if you don’t plan to stay in the home for more than two years. A HELOC you pay off after a year costs about one year of interest plus any fees the lender charges.
When the term ends
An agreement has a deadline. It’s 10 years at Hometap and Unlock. Splitero ties its term to your remaining first mortgage, from 10 to 30 years. If you haven’t sold by then, you need savings or new financing to settle. Unlock lets you buy back its share in partial payments along the way, which softens the deadline. A fully amortizing HELOC like Figure’s simply ends at zero. A bank HELOC with interest-only payments during the draw period doesn’t, so ask what the repayment period looks like before you sign.
Refinancing down the road
Either product adds a lien behind your first mortgage, and a lender refinancing that mortgage will want every other lienholder to stay behind it or be paid. With a HELOC, ask the lender about its subordination policy before you need it. With an agreement, it depends on the company. Hometap requires notice before you refinance. Unlock may charge an administration fee, and says it may refuse to subordinate if your home has lost value and the total debt on it would increase. Splitero says some lenders may require it to be settled first. Among the consumer complaints the CFPB’s report reviewed is difficulty refinancing.
Choose a HELOC if
- Your credit score is 600 or higher, which is Figure‘s published minimum in most states
- You can show income from a job, self-employment or retirement
- Your budget has room to spare for a payment of several hundred dollars a month
- You expect the home to gain value and you want to keep all of it
- You might sell or refinance within the next few years
- The money is for a home improvement, and you want the interest to be deductible under IRS rules
Figure is the HELOC lender covered on this page. Clearing its minimum doesn’t get you its best price: Figure says its lowest APRs go to its most qualified applicants. If the money is for a large renovation, RenoFi lends against after-renovation value through credit unions.
What it is: A HELOC with an online application from Figure. It lists initial APRs of 7.35% to 14.85%, fixed or variable, approval in as little as 5 minutes and funding in as few as 5 days for qualifying loans under $400,000. It’s offered in 48 states and Washington, D.C., but not in Hawaii or New York.
The catch: You draw the full amount at closing, so interest begins on the whole balance on day one. Figure verifies your income and employment, and your home is the collateral.
Choose a home equity agreement if
- Your credit score falls between 500 and the low 600s
- Your income is hard to document, or you’re between jobs
- Your budget can’t fit another monthly payment
- Your equity in the home is at least 25% to 30%
- You plan to stay a few years and can name how you’ll settle: a sale, a refinance or savings
- You’re fine with giving up a share of the home’s future value in return for no payment now
If that’s you, these three companies fit the typical reader of this page. They aren’t ranked. Hometap is listed first because most readers comparing these two products have the 575 FICO score it requires. Unlock and Splitero start at 500.
What it is: A home equity investment. Hometap could provide up to 27% of your home’s value in cash, in return for an agreed percentage of its future value, with no monthly payments during the term. It operates in 27 states. You need a FICO score of 575 or higher and at least 25% equity in your home, among other qualifying criteria.
The catch: Settling could cost far more than the cash you received. In Hometap’s calculator, a $50,000 Investment on a $500,000 home settles for $123,920 after 10 years of 3.25% annual appreciation, and the full amount comes due in one transaction by year 10.
What it is: A home equity agreement (HEA). Unlock pays a lump sum in exchange for a percentage of your home’s future value, with no monthly payments, and lets you buy back its share in partial payments during the term. It serves 26 states and accepts primary homes, second homes and rental properties.
The catch: You need at least 30% equity and a home worth $175,000 or more. Each partial buyout requires a new appraisal that you pay for, and Unlock may require part of the cash to go toward certain debts or liens at closing.
What it is: A home equity investment. Splitero provides up to 25% of your home’s value, to a maximum of $600,000, and says it won’t ask for income or employment documents. The term follows your remaining first mortgage, from 10 to 30 years, and its Safety Cap limits the repurchase amount to a 17.99% annual rate, compounded monthly.
The catch: It covers eligible areas of 17 states, its 4.99% fee is the highest of the three, and the full application includes a hard credit check. In the example Splitero gives, a $100,000 investment on a $1,000,000 home costs $240,000 to repurchase after five years if the home is then worth $1,200,000.
More: Top home equity agreement companies, with every company side by side, including ones not shown here.
What you can get by credit score and by state
Based on credit score
| Your credit score | What is realistic |
|---|---|
| Under 500 | Neither product from the companies on this page. See the section on when neither one is the right fit. |
| 500 to 574 | An agreement from Unlock or Splitero, which both publish a 500 minimum. |
| 575 to 599 | Brings in Hometap, which publishes a minimum FICO score of 575. |
| 600 to 659 | A HELOC comes into reach. Figure‘s FAQ gives a 600 minimum in most states, though its rate estimator starts at 640. |
| 660 and up | Meets Figure’s minimum for investment properties as well as primary homes. If the payment fits your budget, price a HELOC first. |
Meeting a minimum doesn’t mean approval. Each company also weighs your equity and your property, and a HELOC lender weighs your income and existing debts as well.
More: Home equity options for bad credit, at each credit score
Based on state
Agreements aren’t sold everywhere. On October 6, 2026, the companies on this page served these states:
| Hometap | 27 states: Alabama, Arizona, California, Delaware, Florida, Georgia, Idaho, Indiana, Kentucky, Michigan, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, Ohio, Oregon, Pennsylvania, South Carolina, Tennessee, Utah, Virginia, Wisconsin |
|---|---|
| Unlock | 26 states: Alabama, Arizona, California, Florida, Hawaii, Idaho, Indiana, Kentucky, Michigan, Missouri, Montana, Nevada, New Hampshire, New Jersey, New Mexico, North Carolina, Ohio, Oregon, Pennsylvania, South Carolina, Tennessee, Utah, Vermont, Virginia, Wisconsin, Wyoming |
| Splitero | Eligible areas of 17 states: Arizona, California, Florida, Idaho, Missouri, Montana, Nevada, New Jersey, Ohio, Oregon, Pennsylvania, South Carolina, Tennessee, Utah, Virginia, Washington, Wyoming |
| Figure HELOC | 48 states and Washington, D.C. Not offered in Hawaii or New York. |
We also checked the state lists of Point, Unison and Nada the same day. None of the six agreement companies includes Alaska, Maine, Massachusetts, Mississippi, North Dakota, South Dakota or West Virginia, so in those states the realistic choice is a HELOC or a home equity loan. Texas shows up only on Nada’s own list, so a HELOC is usually the practical route there as well. Figure covers all eight states.
The links to agreement companies on this page check your state. If the one you choose doesn’t operate where you live, the link opens a company that does.
When neither one is the right fit
Sometimes the honest answer is another product, or no product yet.
A cash-out refinance replaces your current mortgage with a bigger one and hands you the difference in cash. You keep a single payment, but the CFPB notes that closing costs are generally higher and that the new rate may be higher than the one you have now. It makes the most sense when your current rate is close to or above today’s rates.
More: How to take equity out of your home without refinancing
A home equity loan is a lump sum, usually at a fixed rate, with equal payments that pay it off. If you know exactly how much you need and want a payment that never changes, it’s simpler than a line of credit. You still need the credit and income to qualify. For the monthly payment on $100,000 at each rate and term, see the $100,000 payment table.
A personal loan doesn’t use your home as collateral, so a missed payment can’t cost you the house. Rates are typically higher than on credit secured by a home. For a smaller amount you could clear in a few years, that may be a fair price for keeping the house out of it.
Waiting is also an option. If your score is under 500, if you have less than about 25% equity, or if the expense could be postponed, a year of paying down balances and building equity could shift you from an agreement to a HELOC, or from a high APR to a lower one.
If the real problem is that you’re struggling with your mortgage payment, the CFPB suggests talking with a HUD-approved housing counselor before you borrow against the home. The number is (855) 411-2372.
HEI vs HELOC questions, answered
It depends on your home’s value and your equity. Hometap invests $15,000 to $600,000, up to 27% of your home’s value. Unlock goes up to $500,000, and Splitero up to $600,000 or 25% of your home’s value. A HELOC from Figure runs from $15,000 to $750,000. The fastest way to see your own number is an estimate from Hometap, which says you could find out if you pre-qualify in seconds.
Most of the time, the HEI. In our illustration, a $50,000 HELOC from Figure repaid over 10 years costs $70,752 to $96,251 in total payments across its published APR range. Hometap‘s calculator shows a $50,000 Investment settling for $82,800 to $194,303 after 10 years, depending on what the home is worth then. The agreement cost less only against the highest APR, and only in the scenarios where the home’s value was flat or lower.
Cost and timing. You settle with a single payment that could be much larger than the cash you received, you won’t know the amount until the home is valued at settlement, and it’s due by the end of the term, which is 10 years at most companies. The Consumer Financial Protection Bureau describes home equity contracts as “expensive compared to other home-secured financing options.”
Among the companies on this page, Unlock and Splitero publish a 500 minimum. Hometap publishes a minimum FICO score of 575, among other qualifying criteria. Figure‘s FAQ gives a 600 minimum for its HELOC in most states and 660 for investment properties.
No. A HELOC is a line of credit secured by your home, with a monthly payment and interest. With an HEI you receive a lump sum, make no monthly payments and settle later with a share of your home’s value. A lien on the home secures both.
Both are settled from the sale. A HELOC balance is paid off at closing, and the CFPB notes you’re generally required to pay it in full when you sell. With an HEI, the company’s percentage is applied to the sale price and paid out of the proceeds, which ends the agreement.
IRS Publication 936 says interest on a home equity loan or line of credit is deductible only if the funds are used to buy, build or substantially improve the home that secures it, and only if you itemize. The publication doesn’t mention home equity investments or agreements. Unlock says its understanding is that the cash should not be taxable when you receive it, but it doesn’t give tax advice, so check with a tax professional.
How we put this comparison together
This page is Banks Done Right’s editorial view, built on primary sources read on October 6, 2026. Agreement terms come from the websites of Hometap, Unlock and Splitero, including Hometap’s public pricing calculator. HELOC terms come from Figure’s website. General rules come from the Consumer Financial Protection Bureau and the Internal Revenue Service. We didn’t score or rank the companies, and the HELOC payments in the illustration are our own arithmetic from Figure’s published APR range.
- Hometap: FAQs and the pricing calculator on How It Works (hometap.com)
- Unlock: FAQs (unlock.com)
- Splitero: How It Works, Eligibility and Pricing (splitero.com)
- Figure: Home Equity Line of Credit page and HELOC FAQs (figure.com)
- State lists: Point help center (help.point.com), Unison FAQs (unison.com) and Nada eligibility page (nada.co)
- CFPB: What is a home equity line of credit (HELOC)?
- CFPB: What You Should Know About Home Equity Lines of Credit
- CFPB: Issue Spotlight, Home Equity Contracts: Market Overview (January 15, 2025)
- IRS: Publication 936, Home Mortgage Interest Deduction (for 2025 returns)
Take the next step.
Two ways ahead, depending on whether a monthly payment fits your budget.
$15,000 to $750,000. The minimum credit score is 600 in most states. Funding in as few as 5 days on qualifying loans under $400,000.
Keep reading
RoundupTop Home Equity Agreement Companies ComparedCompare costs, minimum credit scores and state coverage for each company.
ReviewHometap Review: What to Know FirstCosts, who qualifies and what to check before you sign.
GuideWays to Tap Home Equity Without RefinancingWays to reach your equity while keeping your current mortgage.
Terms, pricing and availability change. Check the current terms on the company’s site before you apply.