Last updated: June 2025
If you’re like many American homeowners, you may feel stuck in a frustrating financial reality: your home has grown in value, but your bank account hasn’t. Being cash-poor but house-rich means you have equity on paper, but not the liquid funds to pay for important expenses.
However, there are financial options that can enable you to access that value in cash when you need it.
This guide walks through your best lending options if you’re low on cash but high on home equity and explains why a digital HELOC (Home Equity Line of Credit) through HomeEQ could be the smartest solution.
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What does it mean to be house-rich?
The term house rich refers to homeowners who’ve built significant equity in their property but are cash-poor since they don’t have much available cash for large expenses or financial emergencies.
This often happens when:
- You’ve lived in your home for several years and paid down a good chunk of the mortgage.
- Your home has appreciated significantly in value.
- You’ve recently had a change in income or expenses, such as a job change, divorce, or new tuition bills.
Hypothetical example: Mark and Sandra own a home worth $600,000 with only $150,000 remaining on their mortgage. That’s $450,000 in equity—but they don’t have enough cash to pay for their daughter’s first year of college.
Selling their home isn’t practical, and taking out high-interest personal loans would be costly. They’re house-rich, but temporarily cash-poor.
Why tapping home equity is often a smart move to free up cash
If your wealth is tied up in your property, selling or downsizing might seem like the only option—but it’s not. You can often tap your home equity to get the funds you need without moving.
Benefits of accessing home equity
- Reduced interest rates: compared to credit cards or unsecured personal financing
- Flexible usage: funds can be used for anything—education, debt consolidation, renovations, or medical expenses
- No disruption to homeownership: you keep living in your home while using it as a financial tool.
HomeEQ makes this process faster and easier by offering a fully online, self-service experience—with approval in minutes and funding in days.
Lending options for house-rich homeowners
You’ve got several ways to tap into your home’s equity. The benefits and drawbacks vary depending on your specific needs and financial background.
Home equity line of credit (HELOC)
A HELOC works in much the same way as a credit card that uses your home’s equity as security.
You’re approved for a line of credit based on your available equity, and you borrow only what you need, when you need it.
- Borrowing costs tend to be lower than those for non-collateralized debt.
- You only pay interest on the amount you draw.
- It offers flexibility for recurring or evolving costs (e.g., tuition, phased home renovations).
With HomeEQ, the process is simple and entirely online. You can get a soft credit check, receive a decision in under 10 minutes, and access your funds in as few as 5–7 days.
Learn more about how a HELOC works.
Home equity loan
This is a fixed-rate loan that provides a one-time, fixed-rate payout secured by the equity in your home.
Unlike a HELOC, the payment and rate are fixed, which is helpful if you’re planning a one-time purchase or expense.
- Ideal for large, known expenses
- Fixed repayment terms for predictable budgeting
Downside? You’re paying interest on the entire loan amount—even if you don’t use it all. That’s why many homeowners prefer the flexibility of a HELOC.
Cash-out refinance
With this option, you’ll replace your current mortgage with a bigger loan, and you receive the extra funds in cash.
- Often offers lower rates than unsecured debt
- You may extend the repayment timeline to reduce monthly payments
But there’s a catch: refinancing might not make sense in today’s high-interest rate environment, especially if you have a low fixed-rate mortgage you’d prefer to keep.
Reverse mortgage (for homeowners 62+)
Older homeowners can tap into their equity through a reverse mortgage, which doesn’t require monthly repayment and is paid back upon sale, relocation, or death.
- No monthly repayment required
- Could work for retirees needing additional income
However, this comes with more complexity, fees, and long-term implications. Always talk to a licensed financial advisor before pursuing this option.
Why a HELOC may be your best option right now
Given current interest rates and the desire to retain your existing mortgage, a HELOC often makes more sense than a refinance or loan.
With a HELOC:
- You keep your original mortgage intact
- You get flexible access to funds, drawing only what you need
- HomeEQ makes it fast and easy—no branch visits, no long application paperwork
Calculate your potential HELOC amount.
FAQs about accessing home equity when you’re cash poor
Do I have to sell my home to access the equity?
No. Lending options like HELOCs and home equity loans allow you to stay in your home while using it as a financial resource.
Will applying hurt my credit?
Exploring offers with HomeEQ involves a soft credit check, which means your credit score remains unaffected during the pre-qualification process.
How long does it take to get the funds?
With HomeEQ, qualified applicants can get a decision in minutes and receive funds in as few as 5–7 days.
What can I use the funds for?
Anything—from debt payoff and medical bills to tuition or renovations. It’s your equity, your call.
What if I don’t know how much equity I have?
Use HomeEQ’s built-in calculator to estimate your available borrowing amount based on your home’s value and mortgage balance.
Final thoughts: Empowering your next financial move
Being cash poor but house rich isn’t the end of the story—it’s the start of an opportunity. You’ve built up equity in your home. Now, you can put it to work for the milestones that matter most.
With HomeEQ, the process is fast, secure, and fully online—a self-service lending experience designed for the modern homeowner. Whether you’re handling unexpected expenses or planning something exciting, HomeEQ gives you control over your equity, without the hassle of traditional lenders.
