The short answer
Match the alternative to your denial reason. Denied over debt-to-income, the most common reason? Options with no monthly payment to qualify for, like a home equity investment or (at 62 and older) a reverse mortgage, are the ones that may still work.
Denied over equity? Most options secured by your home hit the same wall; an unsecured personal loan doesn't need equity, but it costs more and has its own credit and income checks.
The alternatives side by side
| Option | Monthly payment | Main hurdles | How it costs you |
|---|---|---|---|
| Home equity investment | None | Equity (total borrowing limits of about 70% to 75% of home value where published); published credit minimums of 500 to 585 | A share of your home's value or gain. In our standard example, 14.1% to 15.9% a year |
| Home equity loan | Yes, fixed | The same checks as a HELOC: debt-to-income, credit, equity | A fixed interest rate on the amount borrowed |
| Cash-out refinance | Yes, replaces your mortgage payment | Debt-to-income, credit, equity | A new rate on your whole mortgage balance, plus closing costs |
| Reverse mortgage | None required (taxes, insurance, and upkeep still due) | Age 62 or older for a federally insured HECM; equity; a financial assessment | Interest and mortgage insurance added to the balance |
| Personal loan | Yes | Credit and income; no equity needed | Usually a higher rate than a HELOC, over a shorter term |
Standard example: $100,000 against a $750,000 home with a $300,000 mortgage, 4% yearly appreciation, settled after 7 years. HELOC reference rate: 8.5%.
Which alternative fits your denial reason
Denied over debt-to-income
This is the most common reason, the first one listed on 44% of HELOC denials. A home equity loan or cash-out refinance uses the same test, so it will likely be denied too. A home equity investment has no monthly payment to qualify for, and a reverse mortgage has no required mortgage payment, which is why these are the options worth checking. See which HEI providers could fit you on HEI Offers.
Denied over credit history
Published HEI credit minimums start at 500 (Point, Unlock, and Splitero) and 585 (Hometap). A personal loan will look at your credit too, usually more strictly.
Denied over collateral or the appraisal
Every home-secured option, HEIs included, limits total borrowing against your home. An unsecured personal loan is the one alternative that doesn't depend on equity.
Denied over an incomplete application
Finish it and reapply. A HELOC usually costs less than any alternative here if you can get one. Home equity loans were denied at a similar 31% rate, but far more often for incomplete applications.
For the full breakdown of why HELOCs get denied, by reason, debt-to-income, loan-to-value, and state, see HELOC denial data on HEI Facts.
Compare the costs on your numbers
The HEI Calculator shows every provider's effective annual cost on your own numbers, which you can compare with any rate you're quoted. Open our standard example.
Questions
What can I do if I'm denied for a HELOC?
Read the reasons in your denial letter first. If the fix is simple, reapply. If the problem is debt-to-income, look at options without a monthly payment to qualify for, such as a home equity investment or, at 62 and older, a reverse mortgage.
Is a home equity loan easier to get than a HELOC?
Not usually. Lenders use similar checks, and in 2025 home equity loans were denied at 31%, close to the 33% rate for HELOCs.
Is a home equity investment more expensive than a HELOC?
Usually, when you can get the HELOC. In our standard example, HEIs cost 14.1% to 15.9% a year, compared with about 8.5% for a HELOC.
Run your own numbers
Every figure here uses a standard example. The calculator runs your home, your mortgage, and your assumptions through every provider at once.
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