The amount of tappable home equity Americans hold continues to increase, growing annually by 5% for the second quarter, a Transunion study found. Several operators in the market, whether lenders themselves or tech providers, have launched products and platforms over the last few days to serve these equity-rich homeowners.
As of June 30, the total was $21.5 trillion, with 86 million people being able to take money out of their homes and still have at least 20% equity. The median dollar amount which could be extracted was $267,000. At the end of the first quarter, Americans
Both home equity line of credit originations and closed end seconds rose 12% in the first quarter (this data lags the report period). It was the best quarter in six years for home equity loans, with 266,000 originations, Transunion said.
Approximately $62 billion was extracted during the first quarter, up from $51 billion one year earlier, but well below the $91 billion pulled out in the first three months of 2022.
Yet for many, especially those with distressed credit, access to their home equity can be limited. Other gaps exist for age of the borrower and employment.
Only 10% of the extracted home equity in the first quarter went to borrowers with credit scores under 700, while 71% went to those over 760.
Below are some recent product announcements in the home equity lending arena that look to reach additional markets or ease processes.
Better offers bank statement HELOC
Better Home & Finance rolled out a bank statement HELOC for
The applicants also do not need to provide tax returns or profit & loss statements from their businesses.
Instead, they can verify income using 12 or 24 months of personal and/or business bank statements, which are analyzed using artificial intelligence, Better said. The analysis looks at income and P&L trends and gives an instant underwriting approval.
A physical appraisal of the subject property is not required. A streamlined title insurance policy can be used for property amounts up to $400,000.
"Better's HELOC customers consolidated $193 million in high-interest debt, generating an average monthly savings of $1,120 in Q2 2025," said Vishal Garg, CEO, in a press release.
"Now that we've established the processes with our AI to deliver a seamless customer experience to small business owners across America, we've brought the Better Bank Statement HELOC to market," he continued, referring to the
This program will allow the company to capture over 6,000 home equity applicants who were previously denied, said Chad Smith, president and chief operating officer of Better Mortgage, a subsidiary. This translates to $600 million in home equity loans it could have made if the bank statement program had been in place.
Another senior-specific home equity offering
American Senior Lending has come to market with a non-recourse home equity product, which allows the borrower to choose their monthly payment plan, Equityselect.
This product, even though it is based on tappable equity, is a first-lien loan. It has no annual fees, no prepayment penalties and a fixed 40-year term with a protected line of credit. The company said it is working on a second-lien variation.
American Senior Lending spent several years designing this product, taking an asset based lending approach to using home equity, said David Peskin, president and CEO in a press release.
The required initial draw is 50% of the loan balance or $75,000, whichever is greater. It has a seven-year draw period.
It gave an example from its pilot, in which a 75-year old borrower qualified for a $300,000 loan. They took $150,000 of that at closing.
The initial monthly payment was $126 and will not exceed $391 over the next 40 years, even if the borrower withdraws the remaining balance. A final balloon payment has to be made when the loan becomes due at the end of its term.
The minimum payments do not cover all of the interest charges and the amount could be added to the loan balance.
Equityselect breaks the mold "by combining desired features of existing mortgage products into one flexible, highly tailored financial solution," said Eric Ellsworth, executive vice president of sales.
"Feedback from our pilot broker partners confirms what we've long known: consumers want a more flexible way to access their equity," he added.
This is the second senior-aimed forward home equity product announced in recent weeks.
Hometap's expanded consumer dashboard
An expanded Home Equity Dashboard for consumers is the latest from
The Dashboard displays offerings from various partners, including Ownwell (for property tax savings); Simplisafe (home security); and Liberty Home Guard (home warranty coverage).
"Homeownership costs keep climbing, and homeowners are clear about what they want: fewer surprise expenses and more tools they can trust," said Adam Sigel, senior vice president of digital product, in a press release. "By expanding the dashboard in ways that directly address the pressures homeowners face, we're giving them the confidence and support they need to manage today's challenges and plan for tomorrow."
In August, Hometap closed a $300 million securitization of home equity investments,
The deal included two rated tranches by Morningstar DBRS: a BBB(sf)-rated $231 million Class A, and a BBB(low)(sf)-rated $12 million Class B
"HTAP 2025-2 highlights our ability to deliver reliable execution for our capital partners," said Cara Newman, vice president and head of structured finance, in a separate press release. "By demonstrating performance across multiple transactions, we are paving the way for broader investor participation in future HTAP securitizations."
Firstclose POS integrates with Optimal Blue
Firstclose is teaming with product and pricing engine provider Optimal Blue, with the goal of reducing the amount time it takes to close a HELOC or second mortgage.
The collaboration takes
"Americans are holding tremendous amounts of home equity, and this integration gives lenders a seamless path to present borrowers with real-time, accurate pricing information from Optimal Blue," added Mike Vough, head of corporate strategy at the PPE provider. "By creating more transparency of product and pricing for homeowners, lenders are better positioned to help borrowers take advantage of home equity opportunities."
