Home Equity, Your Way
Alternative Home Equity Financing Options
Three ways to tap your equity. Choose a HELOC, Home Equity Investment (HEI), or a Home Improvement Loan.
- Compare options.
- Pick what fits your budget and timeline.
- Apply online in minutes.
Trusted by homeowners: $1B+ loaned · Licensed in 13 states
Find Your Best Fit
Want to access your equity in creative ways… We have a solution.
- No monthly payments? → HEI
- Need cash in days and flexible draws? → HELOC
- Self-employed, retired, or hard-to-document income? → HEI
- Fund Renovations? → HELOC, HEI, or Unsecured Personal Loan
- Want to keep your low-rate first mortgage untouched? → HELOC, HEI, or Unsecured Personal Loan
- Prefer not to add new debt or raise DTI? → HEI
Quick Definitions: Alternative Home Equity Financing
What is Alternative home equity financing?
It’s a way to turn your home’s equity into cash without obtaining a traditional cash-out home equity refinance loan. Three common alternative paths to access your equity are a HELOC (a line of credit), a Home Equity Investment (HEI) (cash now, no monthly payments), or a Personal Loan.
- Funds: cash access from your equity with a HELOC or HEI or Personal loan
- Payments: depends on product
- Best for: homeowners who want access to their equity without having to refinance their current low rate 1st mortgage.
What is a Cash-out home equity refinance loan?
A Cash-out home equity refinance loan is a fixed-rate, lump-sum mortgage refinancing your current mortgage and allows you to take-out some equity. It is not a good option if you have a low-rate 1st mortgage and you don’t want to lose this low-rate.
- Funds: Refinance your current loan and take out cash in one lump sum
- Payments: fixed monthly principal + interest (30 or 15 year loan)
- Best for: Refinancing when rates have dropped, and you want a lower rate on your current mortgage, and you want to take out some cash for single, known-cost projects.
If you want a cash out home equity refinance visit our traditional conventional mortgage division
What is a HELOC?
A HELOC is a revolving credit line secured by your home (generally as a 2nd lien). Draw what you need during the draw period and pay interest only on what you use. Keep your existing first mortgage.
- Funds: draw as needed
- Payments: interest-only during draw (often 10-year draw period)
- Best for: borrowers with higher credit scores who need fast access to their equity
What is a Home Equity Investment (HEI)?
An HEI gives you cash today with no monthly payments. It’s not debt. You settle later—typically when you sell or refinance—based on your home’s value then.
- Funds: lump sum now
- Payments: none monthly; settle later
- Best for: borrowers with lower credit scores or who have hard-to-document income and do not qualify for a HELOC
What is an Unsecured Personal Loan?
An Unsecured Personal Loan can be used to fund renovations or upgrades without touching your existing mortgage. Unlike a HELOC or HEI (which are secured by your home), a Personal Loan is unsecured. Ribbon has partnered with Acorn Finance to make it easy to secure Personal Loans online, compare offers from multiple lenders, and receive funds in just a few days.
- Funds: lump sum, typically received within 1–2 business days after approval
- Payments: fixed monthly payments over a set term (often 2–12 years, depending on lender and loan size)
- Best for: homeowners who want to finance specific projects like a kitchen remodel, roof, HVAC, landscaping, or pool without refinancing their mortgage or tapping into a credit line
Types of Alternative Home Equity Financing
HELOC (Home Equity Line of Credit)
Use our Ribbon HELOC offers if you need to access your equity quickly. If you have 60-90 days to apply then you can likely get lower rates from a credit union.
Draw what you need, when you need it. Keep your current mortgage.
- Interest-only during the draw period
- Fast funding and flexible access
- Works for primary homes, rentals, and many condos
Home Equity Investment (HEI)
Use our HEI program if you want to access your equity but have low credit scores or have hard to document income OR if you want to access your equity and not make any payments.
Get cash now with no monthly payments. It’s not a loan
- No monthly payments
- Low credit scores - No problem
- No standard Income - No problem
Unsecured Personal Loans
Use a Personal Loan if you want fast, fixed-rate financing to update or remodel your property.
- Borrow a lump sum upfront with predictable monthly payments
- Fixed interest rates and flexible terms (often 2–12 years)
- No impact on your existing mortgage
- Quick funding
- Works for everything from minor upgrades to major remodels
Alternative Home Equity FAQs
What is a HELOC?
A HELOC is a revolving line that is generally a 2nd lien on your home. Use our Ribbon HELOC offers if you need to access your equity quickly. If you have 60-90 days to apply then you can likely get lower rates from a credit union.
What is a HEI?
A Home Equity Investment (HEI) gives you cash upfront without taking on debt or monthly payments. You share a portion of your home’s future value with the investor, and settle when you sell or refinance.
What is a Personal Loan?
A Personal Loan can be used to finance upgrades, repairs, or for any other purpose. You receive a lump sum and repay it with fixed monthly installments over a set term.
HEI vs HELOC — what’s the difference?
HELOC: a line of credit. Draw as needed. Interest-only during the draw period. Fast access.
HEI: cash now with no monthly payments. Settle later at sale or refinance. It’s an equity agreement, not debt.
HELOC vs Personal Loan — what’s the difference?
HELOC: a revolving credit line secured by your home. Draw funds as needed, pay interest only during the draw period. Keep your first mortgage.
Personal Loan: an unsecured loan with fixed monthly payments. Receive a lump sum upfront and repay over a set term. No lien on your first mortgage.
How fast can I get funds?
Use our Ribbon HELOC offers if you need to access your equity quickly. If you have 60-90 days to apply then you can likely get lower rates from a credit union. HEIs and Personal Loans take a few weeks to get set up.
How much equity and what credit score do I need?
It varies by program and state. HELOCs favor solid credit and documentation; HEIs are a better option if you want to access your equity but have a lower credit score or have hard-to-document income. Personal Loans are generally available for borrowers with high or medium credit scores (but options are available for customers with low scores as well).
What option is best for me?
HELOC and Personal Loans cost less to set up and they are fast and flexible. HEI avoids monthly payments but they are a more expensive option over time and should only be used if can’t qualify for other options.
Choose your path
Ready to tap your equity? Pick the route that fits you