Can You Get a Home Equity Loan With No Credit Check?

Home equity loans and home equity lines of credit (HELOC) are two popular ways to use your home’s equity to obtain funds. This money can be used for other expenses such as home remodels, vacations, debt consolidation, or medical costs. Homeowners struggling with a less than perfect credit score may wonder about home equity loans with no credit check. Below we will explore if no credit check home equity loans are available and what alternatives are available to homeowners needing to repair their credit history.  

Are No Credit Check Home Equity Loans Available? 


The simple answer to the “do no credit check home equity loans exist” question is no. Credit checks are an important part of the application process, allowing lenders to assess the risk level of potential applicants. Many people confuse high-risk no credit check personal loans with no credit check home equity loans. While some lenders won’t do a hard credit check during the pre-approval process, one will be done before you are ultimately approved for a home equity loan or HELOC.  

Risks Associated With No Credit Check Loans

While not having the credit check requirement is nice, there are other important aspects to consider when deciding if this is the right loan option for you. Some notable drawbacks include: 

  • Higher interest: No credit check personal loans typically have a higher annual percentage rate (APR) ranging from 6% to 199% and even higher. The amount you may pay in interest on this type of loan can make them a costly funding option.
  • Shorter loan term: Personal loans with no credit checks usually have shorter repayment periods, meaning you have less time to repay the money.
  • Fees: It’s not unusual for no-credit-check personal loans to have one-time origination fees you need to pay. If you miss a payment or are late making a payment, penalties can apply, which increases the loan’s overall cost.
  • Unexpected withdrawals: Usually, you’ll be required to set up an automatic withdrawal from a linked bank account for your loan payment. If you have other pending payments to a landlord or credit card company and run out of cash, your loan payment may not clear. Missed monthly payments can result in overdraft fees from the bank and dings to your credit report, further weakening your financial position.
  • Not getting credit for on-time payments: While some lenders offering home equity loans with no credit checks will report payment activity to credit bureaus, others don’t. This means you may not see an increase in your credit score even though you’re making on-time payments.

The Application Process

Lenders factor in a wide array of non-credit-related data points, gauging your creditworthiness during the application process, including the current standing of existing bank accounts, employment history, and income. 

  • Credit score: While some lenders won’t require a specific credit score at all, others will require and accept credit scores as low as 620.
  • Age: Generally, lenders require loan applicants to be 18 years or older.
  • Income: You will need to be employed or show other verifiable sources of consistent income.
  • Bank account: You’ll need to have valid savings or checking accounts.

Alternatives to Home Equity Loans With No Credit Checks

No credit check equity loans can seem like an attractive option at first glance. However, they may not be the best choice for you. Four alternatives to this type of loan include:

1. Personal Unsecured Loan

Personal unsecured loans allow you to get money for various purposes without putting up collateral or securing the loan. Lenders will also report payment activity to credit bureaus. This can help repair or build your credit.

2. Secured Loans

Secured loans, similar to home equity loans and other installment loans, require you to secure the loan with collateral that has a monetary value equal to or higher than your loan amount. Once the lender gives you the money, you authorize them to take your collateral if you’re unable to make on-time payments. For example, car title loans allow you to borrow money against your automobile’s value. If you fail to repay the loan, you could lose the vehicle you use to travel to and from work to earn a living.

3. Getting a Co-Signer on a Traditional Loan

A co-signer is someone who financially secures a loan for you to increase your chances of getting approved. By doing this, your co-signer becomes responsible for repaying the loan if you default. Your missed or late payments can also harm their credit report.

4. Home Equity Investment (HEI)

The home equity investment is an innovative product from Point that allows you to get cash in exchange for a portion of your home’s future appreciation. You get to stay in your home and receive the cash you are seeking.

You’ll have no monthly payments and have 30 years to pay back the money via cash-out refinance, the sale of your home, or other funding sources. You also have the flexibility to buy Point out or sell your home at any time. 

When you’re ready to end the HEI agreement, your buyback costs are dependent on your home’s value. The buyback cost will be the original amount you received plus part of your home’s appreciation since the agreement was made. Your costs are capped, so if your home’s value dramatically appreciates, you still get to benefit from the gains. If the value of your home has decreased, your buyback costs will also be less.

Final Thoughts

While home equity loans with no credit check aren’t available, there are funding options available that provide a way to access funds for various purposes, such as a remodel or a vacation. Deciding which option is best for you and your unique situation can be difficult. Your decision may be based on various factors, including the amount you wish to receive, the time frame you have to repay it, and the overall cost you are willing to pay. You’ll also need to weigh the advantages and risks associated with each to determine your best route.

Only you can decide if a home equity investment or HEI from Point is the right choice for you. Schedule a call with a home equity specialist today to figure out the best option for your financial situation.


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