Key Takeaways
- Yes, some HEI companies accept condos and 2-4 unit multi-family homes, though eligibility varies by provider
- Not all home equity investment companies work with these property types, so you'll want to confirm before applying
- Alternatives like HELOCs, home equity loans, and cash-out refinances exist if an HEI isn't available or isn't the right fit for your situation
Condo and multi-family homeowners often assume they’re locked out of newer equity-access products like home equity investments. That’s not always the case.
Several HEI companies do work with condos and 2-4 unit properties, though eligibility varies more than it does for single-family homes. This guide covers which providers accept these property types, what qualifications you’ll need to meet, and how to decide if an HEI makes sense compared to traditional options like HELOCs or home equity loans.
In this article: You’ll learn whether home equity investment (HEI) companies accept condos and multi-family properties, which HEI providers work with these property types, how the HEI process works for condo and multi-family owners, qualification requirements, the pros and cons of choosing an HEI over traditional equity products, and alternative options if an HEI isn’t available for your property.
In this article (Skip to...)
- What is a home equity investment?
- Can you get an HEI on a condo?
- Can you get an HEI on a multi-family property?
- Home equity investment companies that accept condos and multi-family homes
- How does a home equity investment work?
- Requirements to qualify for an HEI on a condo or multi-family home
- Pros and cons of an HEI for condos and multi-family properties
- Alternatives to home equity investments for condo and multi-family owners
- Is an HEI right for your condo or multi-family home?
- Frequently asked questions
What is a home equity investment?
A home equity investment (HEI), sometimes called a home equity agreement, lets you tap into your home’s value without taking on a loan. You receive a lump sum of cash upfront. In exchange, the HEI company gets a share of your home’s future value when you sell, refinance, or reach the end of the agreement term.
Here’s the key difference from traditional options: there’s no interest rate, no monthly payments, and no debt added to your credit report. You’re not borrowing money. Instead, you’re giving an investor a stake in your property’s future appreciation.
The tradeoff? If your home gains significant value over time, you’ll owe more at settlement than you originally received. On the other hand, if your home loses value, many HEI contracts allow you to share in that loss too.
- No monthly payments: You receive cash upfront and owe nothing until you sell, refinance, or hit the term end
- Shared appreciation: The HEI company takes a percentage of your home’s future value change, which could be substantial
- Flexible qualification: Credit and income requirements are typically more relaxed than traditional loans
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.”
Verify your loan eligibility. Start here
Can you get an HEI on a condo?
Yes, many home equity investment companies accept condominiums. That said, not every condo will qualify, and policies vary quite a bit between providers.
Beyond your equity position, HEI companies look at factors specific to condo ownership. The financial health of your condo association matters because it affects your property’s long-term value and how easy it would be to sell. Some providers also check whether your unit is classified as a “warrantable” condo, a designation that indicates the property meets certain lending guidelines related to owner-occupancy rates, HOA finances, and insurance coverage.
If you’ve been turned down for a HELOC or home equity loan because of your condo’s HOA situation, an HEI might still work. HEI companies often use different evaluation criteria than traditional lenders.
Can you get an HEI on a multi-family property?
Some HEI providers do accept multi-family residential properties with 2-4 units. However, this is less common than single-family or condo eligibility. Properties with five or more units are typically excluded because they’re classified as commercial real estate.
The biggest factor for multi-family properties is owner-occupancy. Most HEI companies want you living in one of the units yourself. So if you own a duplex but rent out both sides while living elsewhere, you’ll likely be ineligible.
- Unit count limits: Most HEI companies cap eligibility at 2-4 units (duplex, triplex, or fourplex)
- Owner-occupancy requirement: You typically need to occupy one unit as your primary residence
- Investment property restrictions: Fully tenant-occupied multi-family properties are usually ineligible
- Rental income considerations: Some providers may factor in rental income when determining your offer amount
Verify your HELOC eligibility. Start here
Home equity investment companies that accept condos and multi-family homes
Not all HEI providers have the same property type policies. Confirming eligibility before you apply can save you time and a hard credit inquiry. Here’s an overview of popular home equity agreement companies and their general approach to condos and multi-family properties.
Point
Point accepts single-family homes, condos, townhomes, and properties with 1-4 units in many cases. Geographic availability varies by state. Point doesn’t currently invest in second homes or investment properties where you don’t live on-site.
Hometap
Hometap works with single-family homes, condos, and townhomes. Multi-family eligibility is more limited. Hometap operates in select states only, with funding amounts ranging from $15,000 to $600,000.
Unison
Unison’s property eligibility includes condos and some multi-family homes, though specific restrictions apply based on location and property characteristics.
Unlock
Unlock covers condos and multi-family homes subject to their underwriting guidelines. Unlock is known for flexible repayment options and early buyout provisions.
Splitero
Splitero home equity investments work for different property types, with condo and multi-family eligibility depending on specific criteria and geographic location.
| HEI Company | Condos | Multi-Family (2-4 Units) | Notable Feature |
| Point | Yes | Yes, in some cases | Wide geographic coverage |
| Hometap | Yes | Limited | High maximum funding |
| Unison | Yes | Varies | Long-term flexibility |
| Unlock | Yes | Yes | Early buyout options |
| Splitero | Yes | Varies | Competitive terms |
Eligibility policies change, so always confirm directly with the provider before applying.
How does a home equity investment work?
The HEI process looks different from applying for a traditional loan. Here’s what to expect if you’re pursuing a home equity investment on your condo or multi-family property.
1. Apply and submit property information
You’ll start by providing basic details about your property: its estimated value, your current mortgage balance, and your contact information. Most HEI companies offer online applications that take just a few minutes to complete.
2. Receive an offer based on home value
The HEI company will appraise or estimate your home’s value and determine how much they’re willing to invest. Offers typically range from 10-20% of your home’s current value, depending on your equity position and the provider’s terms.
3. Get funds without monthly payments
Once you accept an offer and close, you receive a lump sum of cash. There are no monthly payments, no interest accruing, and no debt on your credit report. The money is yours to use however you choose.
4. Settle when you sell, refinance, or reach term end
Repayment happens at a triggering event: when you sell the home, refinance, or reach the end of the agreement term (often 10-30 years). At that point, you repay the original investment amount plus the company’s share of appreciation. If your home lost value, you may owe less, depending on the contract terms.
Verify your borrowing eligibility. Start here
Requirements to qualify for an HEI on a condo or multi-family home
While requirements vary by HEI company, here are the typical qualification criteria you’ll encounter:
- Minimum equity threshold: You generally need at least 25-30% equity in your home
- Property type eligibility: Confirm the provider accepts condos or multi-family units before applying
- Owner-occupancy: Most HEI companies require you to live in the property as your primary residence
- Property condition: Homes typically need to meet minimum condition standards
- Geographic location: HEI providers operate in select states only, so check availability in your area
- Credit flexibility: HEI qualification is often more flexible than traditional loans, though some providers have minimum score guidelines around 500-620
Time to make a move? Let us find the right mortgage for you
Pros and cons of an HEI for condos and multi-family properties
An HEI can be a valuable tool for the right homeowner, but it’s not ideal for everyone. Here’s a balanced look at the tradeoffs.
| Pros | Cons |
| No monthly payments or interest charges | You give up a share of future appreciation |
| More flexible credit requirements than HELOCs or home equity loans | Fewer HEI providers accept condos and multi-family properties |
| Access cash without refinancing your first mortgage | Settlement amount can be significant if home value rises substantially |
| Can help condo owners who struggle to qualify for traditional equity products | HOA or condo association factors may complicate eligibility |
| Shared risk if your home value decreases | Terms and fees vary widely between providers |
Alternatives to home equity investments for condo and multi-family owners
If an HEI isn’t available for your property type or doesn’t fit your situation, other equity access options exist beyond traditional HELOCs and home equity loans.
Home equity loan
A home equity loan provides a fixed-rate, lump-sum loan using your home as collateral. Unlike an HEI, it requires monthly payments but doesn’t require you to share any future appreciation. This option works well if you have steady income and prefer predictable payments.
HELOC
A Home Equity Line of Credit (HELOC) is a revolving credit line with variable rates. You can draw funds as needed during the draw period, making it flexible for ongoing projects. However, you’ll have payment requirements and interest charges.
Cash-out refinance
A cash-out refinance involves replacing your current mortgage with a larger one and taking the difference in cash. This resets your mortgage rate and term, which may or may not be advantageous depending on current rates compared to your existing loan.
Personal loan
A personal loan is an unsecured option with no home collateral risk. Interest rates are typically higher than secured options, but approval doesn’t depend on your property type or equity position.
Is an HEI right for your condo or multi-family home?
An HEI can make sense in specific situations, but it’s worth comparing carefully with alternatives before deciding.
You might consider an HEI if you want to access cash but prefer to avoid monthly payments, if you have strong equity but limited income or lower credit scores, if traditional loan products have been difficult to qualify for, or if you’re comfortable sharing some of your home’s future appreciation in exchange for flexibility today.
On the other hand, if you expect significant appreciation and want to keep all the upside, or if you qualify for a HELOC with favorable terms, those options may serve you better in the long run.
FAQs about home equity investments for condos and multi-family homes
Typically no, you don't need formal HOA approval. However, the HEI provider may review the condo association's financials, reserve funds, and any pending litigation as part of their property evaluation. A financially unstable HOA could affect your eligibility.
Most HEI companies require at least 25-30% equity in your home, though exact thresholds vary by provider. Some companies may work with homeowners who have less equity if other factors are strong.
Depending on the HEI agreement terms, you may owe less at settlement if your home depreciates. Many HEI contracts include provisions for sharing in both appreciation and depreciation, though the specifics vary. Always review the contract carefully before signing.
Some HEI providers allow multi-family properties where you occupy one unit and rent out others. However, fully investor-owned rental properties where you don't live on-site are typically ineligible. Check with individual providers about their specific owner-occupancy requirements.
