How to get a home equity loan with no income

Many homeowners are turning to their equity to navigate rising healthcare costs, inflation, and tariffs. At the same time, about 1 in 11 mortgage holders each year faces a job loss, pay cut, or shift to self-employment—events that can affect income and make meeting home equity loan requirements more challenging.

Luckily, home equity loans aren’t necessarily off the table. Even with low or non-traditional income, there are ways to qualify and tap into your home’s wealth.

Read below to learn how a home equity loan works and whether or not you can qualify without a traditional income.

Do “no income verification” or “no doc” home equity loans exist?

You may come across terms like no income verification, no doc, or stated income loans when researching home equity options. These products were common in the past, but they largely disappeared after lending regulations tightened following the 2008 housing crisis.

Some examples of these older loan types include:

• Stated income, verified assets (SIVA) loans, which relied on assets instead of pay stubs
• No income, verified assets (NOVA) loans, often marketed to retirees
• No income, no asset (NINA) loans, primarily for real estate investors

Today, these loans are rare or no longer exist in their original form. Modern lenders are still required to verify a borrower’s ability to repay—even if income documentation looks different.

Is it possible to get a home equity loan with no income verification or low income?

While there’s no such thing as a true “no doc” or “no income verification” home equity loan, it is possible to qualify even with low or non-traditional income—or by showing other ways you can repay the loan.

Some homeowners use rental income, pensions, retirement withdrawals, or other steady cash flow to meet lender requirements.

Many lenders also take a bigger-picture approach, looking at your overall financial profile—your assets, credit history, and general stability—not just your paycheck.

In practice, this means lenders may place more weight on:

• Your credit score and payment history
• The amount of equity you own in your home
• Your loan-to-value (LTV) ratio
• Your debt-to-income (DTI) ratio
• Alternative sources of income or cash flow
• A co-signer’s financial health
• Verified assets or other collateral

By demonstrating stability through one or more of these factors, homeowners with low or non-traditional income can still access home equity financing—even if their pay stubs or tax returns don’t tell the full story.

Tips to improve your chances of getting a home equity loan

Have or build excellent credit

Strong credit makes qualifying for a home equity loan with no income easier. Excellent credit usually includes scores of 800 or higher, while scores between 740 and 799 are considered very good.

You can improve your credit score by paying your bills on time, keeping a low balance on your credit cards, and avoiding opening new credit products unless necessary.

Keep your debt-to-income (DTI) low

Lenders look closely at your DTI ratio to make sure you can handle additional payments. Paying down debt before applying or maintaining a low DTI can increase your chances of approval.

Use alternative sources of income

Most lenders take into consideration other types of income when approving you for a home equity loan. For example, rental income, disability benefits, alimony, and child support can be leveraged when applying for financing.

Even a side hustle generating cash is something to share with lenders. You're likely to be approved if you can demonstrate your ability to repay the loan.

Take stock of your assets and collateral

Lenders often look beyond income, so take inventory of your assets—bank accounts, investments, retirement funds, or other property you can use as additional collateral.

Additionally, having cash reserves demonstrates you can handle unexpected expenses and continue making loan payments, which is especially reassuring for lenders.

Showing a strong financial position outside of income can boost your chances.

Consider writing a letter of intent

A clear letter of intent can help lenders understand your plan for the loan and your ability to repay. Outline how you’ll use the funds, any alternative income sources, and your strategy for repayment. This personalized approach can give lenders confidence, especially if your income isn’t traditional.

Add a co-signer

Leveraging a credible co-signer on a loan can help you get approved, especially if you have a low or no current income history. Your co-signer generally needs good credit and a source of income to qualify. It's important to note that if you default on the home equity loan, your co-signer must take over payments.

Have adequate homeowners insurance

Homeowners insurance is a must-have for any home equity loan—it protects both you and the lender. Having the right coverage can strengthen your application, as lenders may review whether your policy is sufficient to rebuild or repair your home in case of a loss. If your coverage meets or exceeds what’s required, it signals financial responsibility and helps your application move more smoothly.

Compare multiple lenders

Without a regular source of income, you may have to shop around before finding a lender that will agree to a home equity loan or alternative. You can start by asking your real estate agent if they have any suggestions for lenders. You can also contact the financial institutions you already have an account with. Another excellent way to find the best rates and terms is to prequalify with various mortgage lenders when possible.

Alternative financing options

Home equity investments (HEIs)

Best for: Homeowners seeking no income verification and no monthly payments.

Unlike traditional home equity lines of credit (HELOCs) or loans, a home equity investment provides a lump sum of cash from your home’s equity in exchange for a portion of its future appreciation. Homeowners maintain full control of their property.

HEIs typically offer a 30-year repayment term, though you can buy back your equity at any time, penalty-free. You repay the investment plus agreed upon slice of change in value when you refinance, sell, or use another source of cash.

Requirements are less strict than traditional loans: you need sufficient equity, a home or investment property in an eligible state, and a credit score above 500.

Funds can be used for anything—debt consolidation, home improvements, starting a business, and more. Prequalifying has no impact on your credit score and doesn’t commit you to apply.

Reverse mortgages

Best for: Homeowners 62 or older who have paid off all or most of their mortgage and have limited income.

A reverse mortgage uses your home equity as collateral, similar to a home equity loan. In exchange for your equity, you receive cash in a lump sum, monthly payments, or through a line of credit. Repayment occurs when you sell your home, pass away, or no longer meet the terms.

You can continue living in your home as long as you like, but you must maintain the property and keep up with taxes and insurance. Lenders will verify you have enough income to cover these ongoing costs.

DSCR loans

Best for: Real estate investors or borrowers with strong rental income but limited traditional income.

Debt Service Coverage Ratio (DSCR) loans are designed for borrowers whose ability to repay is based on property cash flow rather than personal income. Lenders evaluate the property’s rental income relative to the debt payment. These loans are common for investment properties and can be an option if traditional income documentation is limited.

Sale-leasebacks

Best for: Homeowners who want to unlock home equity without moving.

In a sale-leaseback, you sell your home to an investor or company and continue living there as a renter. You receive the home equity just like in a traditional sale, but you remain in the property.

While less common than other options, a sale-leaseback can be ideal if moving isn’t feasible. The challenge is finding a buyer willing to lease the home back to you.