Four common ways to turn home equity into cash let you keep living in your home: a HELOC, a home equity loan, a reverse mortgage and a sale leaseback. The first three are loans, so you stay the owner. A sale leaseback is a sale, so you become a renter in the same house.
What each option is
HELOC. A home equity line of credit is a revolving credit line secured by your home. You draw what you need during the draw period, usually about 10 years, and most lenders require interest only payments during that time.
Home equity loan. You borrow against your equity and get the money as a lump sum. The rate is usually fixed. If you cannot pay it back, the lender could foreclose on your home.
Reverse mortgage. The most common type, a Home Equity Conversion Mortgage, is only for homeowners 62 and older. You make no monthly mortgage payments, the title stays in your name, and the loan is repaid when you no longer live in the home.
Sale leaseback. You sell your home and stay in it as a renter. A company presents a purchase price and a monthly rent, you close, and you receive your equity, minus fees and costs, as cash.
Cost and credit, side by side
| Option | Loan or sale | Credit | Monthly cost | You own the home |
|---|---|---|---|---|
| HELOC | Loan | Credit and income approval | Interest only payments during the draw period, with most lenders | Yes |
| Home equity loan | Loan | Ask the lender | Loan payments at a rate that is usually fixed | Yes |
| Reverse mortgage | Loan | Ask the lender; HECM is for age 62 and older | No monthly mortgage payments; the balance grows | Yes, title stays in your name |
| Sale leaseback | Sale | No loan approval; rent review varies by provider | Monthly rent, plus the provider's fee at closing; fees vary by provider, see leaseback.com/compare | No, you rent |
Compare written numbers for your own home. Our calculators run a HELOC and a leaseback side by side.
Do you keep the house?
With a HELOC or a home equity loan, you keep ownership and add debt. Miss payments on a home equity loan and the lender could foreclose.
With a reverse mortgage, the title stays in your name, but the balance you owe goes up over time as interest and fees are added, and your equity goes down. You or your heirs repay it, usually by selling the home.
With a sale leaseback, you no longer own the home. The FTC warns that you could be forced to leave if you cannot afford the rent, and that rent often goes up.
Which fits which situation
You want to stay the owner and can qualify for credit. A HELOC or a home equity loan keeps the deed in your name. For a HELOC, a stronger credit score usually raises how much you can borrow and lowers the rate.
You are 62 or older and want no monthly mortgage payment. A reverse mortgage is built for that, as long as you accept a rising balance.
Your credit is limiting the loan. A sale leaseback doesn't need loan approval, because it is a sale, not a loan. Providers may still review whether you can afford the rent, so ask each one.
You are behind on payments. Foreclosure prevention counseling from a HUD-approved agency is free, according to the Consumer Financial Protection Bureau.
Which one is right for you?
Start with one question: does staying the owner matter most? If yes, compare the loans. If cash matters more than the deed, a sale leaseback is worth a look. Either way, the FTC says to take your time, read the fine print and have a lawyer or a trusted person review the contract.
Want to see the leaseback companies on fees, leases and coverage? Compare them side by side at leaseback.com/compare, or take the fit quiz.
Frequently asked questions
What are the main ways to get equity out of my home without moving? A HELOC, a home equity loan, a reverse mortgage and a sale leaseback. The first three are loans and you stay the owner. A sale leaseback is a sale: you get your equity, minus fees and costs, as cash and keep living in the home as a renter.
Which option does not need loan approval? A sale leaseback doesn't need loan approval, because it is a sale, not a loan. Providers may still review whether you can afford the rent, so ask each one.
Who can get a reverse mortgage? The most common type, a Home Equity Conversion Mortgage, is only for homeowners 62 and older. You make no monthly mortgage payments, and the loan is repaid when you no longer live in the home.
Sources
- S1: Leaseback.com, Leaseback vs HELOC calculator, FAQ (live Nov 10, 2026): https://www.leaseback.com/leaseback-vs-heloc-calculator
- S2: CFPB, What is a home equity loan? (fetched Nov 10, 2026; page modified Sept 13, 2024): https://www.consumerfinance.gov/ask-cfpb/what-is-a-home-equity-loan-en-106/
- S3: CFPB, What is a reverse mortgage? (fetched Nov 10, 2026; page modified Aug 31, 2026): https://www.consumerfinance.gov/ask-cfpb/what-is-a-reverse-mortgage-en-224/
- S4: Leaseback.com home page, How it works, steps 02, 05, 06 (live Nov 10, 2026): https://www.leaseback.com/
- S5: FTC consumer alert, Oct 3, 2024, "Risky business: offers to cash out your home equity through a sale-leaseback": https://consumer.ftc.gov/consumer-alerts/2024/10/risky-business-offers-cash-out-your-home-equity-through-sale-leaseback
- S6: CFPB via /workspace/lb/research/2026-10-27-asis-source-needed.md (row 7); find a counselor: https://www.consumerfinance.gov/find-a-housing-counselor/