What You Need to Qualify
Home Equity Agreements have different requirements than traditional loans. Here's a detailed look at what we consider when evaluating your application.
Primary Requirements
These are the core criteria we evaluate for every application.
Primary Residence
The property must be your primary residence, the home where you live most of the year. We cannot accept investment properties, second homes, or vacation properties.
- You must occupy the home as your main dwelling
- The property address should match your ID and tax records
- Second homes and rental properties do not qualify
Minimum Equity
How much equity you need depends on what your home is worth. Your mortgage plus the capital provider's share at settlement cannot exceed 80% of your home's value, and that share is twice the HEA Amount, so each $1 needs $2 of room under the 80% line. With a $30,000 minimum, that works out to roughly 26% equity on a $1,000,000 home, 32% on a $500,000 home, and 40% on a $300,000 home.
- The threshold moves with home value: a higher-value home needs a smaller share of equity
- Higher equity may qualify for larger investment amounts
- We use an independent appraisal to verify home value
Property Condition
Your home should be in reasonable condition without major structural issues or deferred maintenance that could significantly impact value.
- No major structural damage or foundation issues
- Roof, plumbing, and electrical in working order
- Minor cosmetic issues are generally acceptable
Current on Mortgage
Your mortgage payments should be current, and you should have a history of making timely payments. Recent late payments may affect eligibility.
- No mortgage payment more than 30 days late in the past 12 months
- No active foreclosure proceedings
- Current on property taxes and insurance
Additional Criteria
These factors are also considered as part of the underwriting process.
No Recent Bankruptcy
If you have filed for bankruptcy, it should be discharged and at least 2-4 years in the past, depending on the type.
Clear Title
The property must have a clear title without outstanding judgments, tax liens, or other encumbrances that would prevent recording.
Eligible Property Type
Single-family homes, condos, townhomes, and some 2-4 unit properties qualify. Manufactured homes and co-ops typically do not.
Service Area
Your property must be located in California, in one of our eligible metropolitan areas. We are expanding to new markets regularly.
What We Don't Require
Because there are no monthly payments, many traditional loan requirements do not apply. A Final Settlement Amount based on your home's value at that time is due at the end of the Investment Period or upon sale or refinance. In a high-appreciation scenario, this amount may substantially exceed the investment proceeds received.
Minimum Credit Score
We review credit history but have no minimum score requirement. Lower scores won't automatically disqualify you.
Income Verification
Since there are no monthly payments, we do not need to verify your income or employment. A Final Settlement Amount based on your home's value at that time is due at the end of the Investment Period or upon sale or refinance. In a high-appreciation scenario, this amount may substantially exceed the investment proceeds received.
Tax Returns
We don't require tax returns or W-2s because income isn't a factor in qualification.
Debt-to-Income Ratio
Traditional DTI requirements don't apply since you won't have a new monthly payment.
Employment History
Your employment status, whether employed, self-employed, or retired, doesn't affect eligibility.
Documentation Needed
The documentation for a Home Equity Agreement is much simpler than a traditional loan. Here's what you'll typically need to provide.
- Government-issued ID
Driver's license, passport, or state ID
- Proof of ownership
Recent mortgage statement or property deed
- Homeowners insurance
Current policy declarations page
- Property tax information
Recent property tax statement
Have Questions?
Our team can help you understand the requirements and determine if a Home Equity Agreement might be right for your situation.
See If You Qualify
Our quick eligibility check takes just a few minutes and won't affect your credit score.
Check My EligibilityThe requirements listed on this page are general guidelines. Meeting these requirements does not guarantee approval for a Home Equity Agreement. All applications are subject to verification, property appraisal, and underwriting review. Actual eligibility, terms, and investment amounts vary based on individual circumstances. Mend reserves the right to modify eligibility requirements at any time.