Can You Get a HELOC While on Social Security?

If you’re retired or living on Social Security and wondering whether you can tap into your home’s equity to cover medical bills, rising living costs, or even help a family member in need — you’re not alone. Many older homeowners are asking the same question, especially as fears of a potential recession grow.

In fact, nearly 1 in 3 U.S. homeowners say they’re likely to tap into their home equity in the next 12 months, according to a national survey by MeridianLink. That’s a significant increase from just a few years ago, and it reflects the pressure many Americans are feeling amid high interest rates, inflation, and economic uncertainty.

Key Takeaways:

Yes, you can get a HELOC on Social Security. Most lenders accept Social Security income as qualifying, stable income if properly documented.
You’ll need to meet other requirements, too. Strong credit, sufficient home equity, and low debt levels help improve your chances of approval.
A HELOC can be a flexible financial tool in retirement. It may provide a cash buffer for medical bills, home repairs, or other expenses—especially during uncertain economic times.

Yes — you can get a HELOC while living on Social Security. Most lenders count Social Security as qualifying income, and often view it as stable and reliable. As long as you can document your income with SSA-1099 forms or recent bank statements, it can play a key role in your application.

If your Social Security is your sole source of income, it may still be enough to qualify — especially if you have strong credit, a good amount of home equity, and a manageable amount of debt. Lenders want to see that you can comfortably afford the payments, even on a fixed income.

Check your eligibility for a home equity loan. Start here

Pros and cons of a HELOC in retirement

A HELOC can be a flexible, low-cost way to tap into your home equity — but it’s important to weigh the pros and cons before moving forward.

HELOC Pros:

You only borrow what you need, when you need it.
Interest rates are often lower than credit cards or personal loans.
You can use the funds for any purpose — from home repairs to unexpected expenses.
Monthly payments may be interest-only during the draw period.

HELOC Cons:

HELOCs come with variable interest rates, which can rise over time.
If you can’t repay the loan, you risk losing your home.
Budgeting can be trickier with fluctuating payments.
You may need a strong credit score and sufficient equity to qualify.

Check your eligibility for a home equity loan. Start here

To qualify for a HELOC while living on Social Security, lenders typically look for these key requirements:

Proof of Income: You’ll need to verify your Social Security income using your SSA-1099 tax form or recent bank statements showing consistent deposits.
Good Credit Score: Most lenders require a credit score of around 620 or higher to ensure you can manage debt responsibly.
Sufficient Home Equity: You generally need at least 15-20% equity in your home — meaning your home’s value exceeds what you owe on your mortgage by that amount.
Manageable Debt-to-Income Ratio: Lenders want to see that your monthly debts are reasonable compared to your Social Security income.
Complete Documentation: Providing all requested paperwork, such as proof of income, credit reports, and a home appraisal, helps speed up the approval process.

Meeting these criteria doesn’t guarantee approval, but they are the main factors lenders consider when evaluating your HELOC application on Social Security income.

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What other borrowing option should I consider in retirement?

A HELOC isn’t the only way to tap into your home’s value. Depending on your needs, financial goals, and comfort level with repayment, another form of home equity borrowing might be a better fit — especially in retirement.

Here are some common alternatives to consider:

Home Equity Loan

If you’d prefer the certainty of fixed payments and a lump sum of cash up front, a home equity loan might be the better option. It allows you to borrow a set amount of money against your home’s equity and repay it over a fixed term, typically with a fixed interest rate.

This predictability can be helpful for retirees who want to budget with confidence — particularly for large, one-time expenses like medical procedures or home renovations.

Cash-Out Refinance

With a cash-out refinance, you replace your existing mortgage with a new, larger one and receive the difference in cash. This could be a useful option if you still have a mortgage balance and want to lock in a potentially lower interest rate while accessing equity.

However, in today’s higher-rate environment, a cash-out refinance may not make sense if you already have a low mortgage rate. Plus, it restarts your mortgage clock — something to weigh carefully in retirement.

Reverse Mortgage

For homeowners age 62 or older, a reverse mortgage can offer a way to access home equity without monthly repayment obligations. Instead, the loan is repaid when the borrower sells the home, moves out, or passes away.

Reverse mortgages can offer financial relief, but they also reduce your home equity over time and may impact your ability to leave the home to heirs. Be sure to fully understand the fees, eligibility rules, and long-term implications before choosing this option.

The bottom line

Remember, your Social Security income can help you qualify for a HELOC, giving you flexible access to funds when you need them most. Whether it’s for unexpected medical bills, home repairs, or simply extra peace of mind, tapping into your home equity can be a valuable resource in retirement.

Just be sure to review your overall financial situation carefully, understand the terms, and explore all your borrowing options to find the best fit for your needs. With the right preparation and guidance, you can confidently use a HELOC to help support your goals.