Key Takeaways
- Point accepts credit scores starting at 500. Unlock accepts scores starting at 500 for single-family homes and townhomes used as primary residences; its minimum is 550 for condos, two-to-four-unit properties, investment properties and second homes. Other providers have higher requirements; for example, Unison lists 620.
- HEI approval is usually based more on your home’s equity, value, and location than your credit score alone.
- Low credit can still affect your offer, because HEI companies may respond by offering less cash or requiring a larger share of future home value.
Yes, you may qualify for a home equity investment (HEI) with a low credit score. Some HEI companies accept scores as low as 500, while home equity loans and HELOCs typically start at 620 or higher. Meeting the minimum credit score does not guarantee approval; property, equity and other underwriting requirements apply.
HEIs can take lower scores because the company is not counting on monthly payments. The company pays you cash now in exchange for a share of your home’s future value, so approval leans more on your equity and property than on your credit. Low credit can still cost you, through a smaller cash offer or a larger share of your home’s value.
- What Is a Home Equity Investment (HEI)?
- Can you get an HEI with low credit?
- What credit score do you need for an HEI?
- Why HEI companies can approve lower credit scores
- If credit isn’t the main approval factor for an HEI, what can still get you denied?
- What credit score is “too low” for an HEI?
- Does low credit affect HEI terms?
- Why HEIs can be a lifeline (and a tradeoff) for low credit homeowners
- How to improve your odds of getting approved for an HEI with low credit
- The bottom line
What Is a Home Equity Investment (HEI)?
A home equity investment is a cash-for-equity swap. You get a lump sum today, and in return, an investment company gets a share of your home’s future value.
That’s the part that makes HEIs feel so different from a loan. These agreements generally have no stated interest rate or required monthly payment to the HEI provider, but they are not cost-free. Settlement is calculated under the contract using your home’s value or change in value, and fees may apply. Payment is generally due at the end of the term or upon a triggering event such as a sale. Refinancing may help fund settlement, subject to lender and contract requirements. You remain responsible for your mortgage and ongoing housing costs.
At the end of the agreement (typically 10 to 30 years), you settle up by selling the home, refinancing, or buying the investor out.
What experts are saying
Michael Gifford, CEO of Splitero
“Most homeowners want three things: easy qualification, no monthly payment, and clarity on what they’re giving up — and that’s where an HEI really stands apart.”
For a deeper dive, explore what a home equity agreement is.
Verify your loan eligibility. Start here
Can you get an HEI with low credit?
Yes, in many cases you can get an HEI with low credit. This is one of the biggest reasons HEIs exist as a product category. HEI companies know there’s a large group of homeowners who are “equity-rich but credit-challenged.” They may have built equity over years of ownership, but they can’t qualify for traditional financing due to past late payments, collections, or high revolving debt.
Because an HEI isn’t based on your ability to make monthly payments, some providers accept scores that would be automatic rejections for a HELOC or home equity loan. See how an HEI compares with a HELOC on cost and qualifying.
What credit score do you need for an HEI?
Most HEI companies don’t publish one single “hard minimum” credit score, but many fall into a general range.
Minimums generally fall between 500 and 620, depending on the company. Point, for example, requires a score of at least 500, while other providers set higher floors. Compare minimums, fees and terms among the best home equity investment companies before you apply.
To put that in perspective, here’s how HEIs compare to more traditional home equity products:
| Product | Typical minimum credit score |
|---|---|
| Home equity investment (HEI) | 500 to 620 (varies by company) |
| Home equity loan | Often 620 or higher; varies by lender |
| HELOC | Often 620 or higher; varies by lender |
| Cash-out refinance | Varies by lender (often 620 or higher) |
This is why HEIs often show up as a viable option when someone searches “home equity with bad credit.”
Verify your HELOC eligibility. Start here
Why HEI companies can approve lower credit scores
Traditional lenders approve you mainly on your ability to repay. HEI companies approve you mainly on your home, because they get their money back when the home is sold or the agreement is settled.
Even though HEI providers still review your credit, they’re usually more focused on the underlying property. Their risk is tied to the home’s value and their ability to recover their investment when the agreement ends.
That’s also why HEI companies often care more about:
- how much equity you have
- where the home is located
- how stable the local market is
- whether the property is easy to appraise and sell
In other words, HEIs are not “no-credit-check” products. But they’re typically far less credit-driven than loans.
If credit isn’t the main approval factor for an HEI, what can still get you denied?
Accepting low credit does not make approval easy. HEI providers still have strict guidelines; they focus on your equity and the property rather than your score.
Even with low credit, you may be denied if:
- you don’t have enough equity
- your property is in a location the company won’t invest in
- the home type is restricted (some condos, manufactured homes, etc.)
- your combined loan-to-value is too high
- your finances show major instability (even without monthly payments)
- you had a recent bankruptcy (Point, for example, lists a two-year waiting period after discharge or dismissal of Chapter 7 or 11 bankruptcy), and a recent foreclosure may also affect eligibility
This is why it’s more accurate to say: HEIs are accessible for low-credit borrowers, but they’re not universal approvals.
Verify your borrowing eligibility. Start here
What credit score is “too low” for an HEI?
HEIs can be available at lower scores, but there’s still a practical floor. In many cases:
- scores in the mid-500s may still qualify
- scores around 500 may qualify with a strong property profile
- scores well below 500 often become difficult
If your score is extremely low, providers may assume there are serious unresolved credit issues. Even though they aren’t collecting monthly payments, they still want confidence that the homeowner can maintain the property and keep taxes and insurance current.
Time to make a move? Let us find the right mortgage for you
Does low credit affect HEI terms?
Yes, even if you qualify, low credit can affect your HEI offer. With a loan, lenders usually price risk by charging a higher interest rate. With an HEI, companies often price risk differently. Instead of raising a rate, they may:
- offer less cash
- require a larger share of future home value
- apply a more conservative valuation
So the real question isn’t just “Can I get approved?” It’s also: “Will the deal still be worth it once I see the terms?”
Why HEIs can be a lifeline (and a tradeoff) for low credit homeowners
For homeowners with low credit, an HEI may be one of the few ways left to tap home equity, especially after a HELOC or home equity loan denial.
But accessibility doesn’t mean free money. The tradeoff is that you’re giving up a portion of your home’s future appreciation. If your home value rises significantly, the amount you owe at settlement could be far higher than what you received upfront.
In a January 2025 report, the Consumer Financial Protection Bureau warned that the single payment due at the end of a home equity contract can be hard to predict, can run to hundreds of thousands of dollars and may force some homeowners to sell. Before you sign, estimate the true cost of a home equity investment.
That doesn’t automatically make HEIs bad. It just means they work best when you understand what you’re trading: cash now, for shared upside later.
What experts are saying
Thomas Brock, CFA, CPA
“Homeowners with damaged credit can become so focused on whether they’ll qualify for an HEI that they overlook a more important question – what are they actually giving up? An HEI can feel like a financial lifeline, especially if you’ve been declined financing elsewhere.
Nevertheless, once you understand how much equity you’re expected to give the investor in exchange for the cash, your focus should quickly shift from “Can I qualify?” to “Is this a smart use of my equity?” Always remember, a low credit score may make it easier to qualify for an HEI, but it shouldn’t make you less diligent about evaluating the economics.”
How to improve your odds of getting approved for an HEI with low credit
If you’re in the low credit range, you don’t necessarily need to “fix” your credit before applying, but you do want to avoid red flags that can make your application look riskier than it needs to.
A few smart steps can help, especially if you’re right on the edge:
- pay down credit card balances to reduce DTI
- resolve obvious credit report errors
- document stable income
- make sure property taxes and homeowners insurance are current
Even though HEIs aren’t loans, providers still want to see that the homeowner is stable and the property is protected.
The bottom line
A low credit score doesn’t automatically block you from accessing home equity. Some home equity investment (HEI) companies accept credit scores as low as 500 because they’re investing in your home’s value rather than lending based on monthly repayment.
Just remember that approval isn’t only about credit, and even if you qualify, low credit can affect how much cash you’re offered and how much future value you’ll share.
