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HomeLight BBYS Updated January 2026

HomeLight Equity Boost Explained: Unlock More Down Payment Using Your 401k, IRA, or Savings

HomeLight Equity Boost lets you unlock additional equity beyond the standard 70% by backing it with proof of qualifying assets-at no extra cost beyond the standard 2.4% program fee. If your initial Equity Unlock Amount isn't quite enough for your down payment goals, Equity Boost can bridge the gap using your 401k, IRA, savings, or investment accounts.

What Is Equity Boost?

Equity Boost is a feature within HomeLight Buy Before You Sell-not a separate program. It allows you to unlock additional equity beyond your initial Equity Unlock Amount by providing proof of qualifying assets that back the increased amount.

Here's the key distinction: standard BBYS unlocks up to 70% of your available equity based on HomeLight's property evaluation. Equity Boost lets you access more, backed by your liquid assets.

No Extra Fee

Equity Boost doesn't add any cost beyond the standard 2.4% program fee. You're not paying more to unlock more-you're simply providing additional backing that allows HomeLight to extend a larger equity advance.

How Equity Boost Works

The process builds on your standard Buy Before You Sell application:

1. Get approved for BBYS - You receive your initial Equity Unlock Amount based on your home's value and risk profile
2. Identify the gap - If the initial amount isn't enough for your target down payment, you calculate how much more you need
3. Apply for Equity Boost - Through your lender, you provide proof of qualifying assets
4. Receive increased unlock - Your Equity Unlock Amount increases based on your verified assets
5. Proceed with purchase - You now have access to more down payment funds

What Assets Qualify for Equity Boost?

Qualifying Assets ✓	NOT Accepted ✗
Savings accounts	Cryptocurrency
401(k) retirement accounts	Business assets
IRAs (Traditional or Roth)	Assets already allocated for new home purchase
Investment/brokerage accounts	Non-liquid investments
Gift funds	-

Credit Score Requirements

Your credit score determines how much asset backing you need for the boost amount:

Credit Score	Asset Requirement
680+	1.5x the boost amount
620-679	2x the boost amount
Below 620	Not eligible for Equity Boost

Example: You need an extra $100,000 in equity unlock. With a 720 credit score, you'd need to show $150,000 in qualifying assets (1.5x). With a 650 credit score, you'd need $200,000 (2x).

Real Example: Closing the Gap

$1.1M Pasadena Home → $950K Purchase in Arcadia

Home Value $1,100,000

Mortgage Balance $400,000

Available Equity $700,000

Initial Equity Unlock (70%) $490,000

Down Payment Needed (20%) $190,000

Initial Unlock Covers Need? ✓ Yes

In this example, the initial unlock covers the down payment. But what if you wanted to put more down, or the home required a larger down payment?

Same Scenario - But Need $600K for Purchase

Initial Equity Unlock $490,000

Down Payment Needed $600,000

Gap $110,000

401k Balance $200,000

At 1.5x (680+ credit) Can boost up to ~$133K

New Equity Unlock Available Up to $623K

With Equity Boost, the gap closes. The 401k isn't being withdrawn-it's serving as backing that allows HomeLight to extend the additional equity advance.

Let's Run Your Numbers

I'll calculate your initial Equity Unlock Amount and determine if Equity Boost makes sense for your situation.

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The Important Catch: Understanding Your Commitment

Equity Boost isn't free money. Here's the commitment you're making:

What You Need to Understand

After your departing residence sells, the proceeds pay off your Equity Unlock loan (including any boost). If the sale proceeds don't cover the full balance-which is rare with proper pricing-you may need to liquidate the assets you used for backing to cover the difference.

This is why working with an experienced partner agent matters. Before recommending Equity Boost, I walk clients through the math:

• What's your realistic sale price based on current comparables?
• What's the worst-case scenario if the market shifts?
• Could you absorb that risk without devastating your retirement?

If the answer is "I'd be devastated if I had to tap my 401k," then Equity Boost might not be right for you-even if you technically qualify.

When Equity Boost Makes Sense

You're Close But Not Quite There Good Fit

Your initial Equity Unlock Amount is 80-90% of what you need. The boost is relatively small, and the risk is manageable.

You Have Substantial Liquid Assets Good Fit

The assets backing the boost represent a small portion of your total wealth. Even worst-case liquidation wouldn't materially affect your financial security.

The Alternative Is Losing the Dream Home Good Fit

Without the additional equity, you can't make a competitive offer. The opportunity cost of NOT using Equity Boost is losing the property you want.

You're Confident in Your Sale Price Good Fit

Your home is priced correctly, the market is stable, and you have realistic expectations. The chance of proceeds falling short is minimal.

When to Skip Equity Boost

The Boost Would Overextend You Skip It

If backing the boost requires most of your liquid assets, you're taking on significant risk. Consider a smaller target purchase instead.

Your Retirement Assets Are Critical Skip It

If the assets backing your boost are your primary retirement savings and you can't afford to lose them, don't use them for Equity Boost.

Sale Price Is Uncertain Skip It

If your home needs work, the market is declining, or you're uncertain about pricing, the risk of needing to liquidate assets increases.

Availability

Equity Boost is available in all Buy Before You Sell states except Texas (where it's coming soon).

California: Fully available ✓

Is Equity Boost Right for Your Situation?

I'll help you understand your initial Equity Unlock Amount, whether Equity Boost makes sense, and what the real risks are.

Call or Text (213) 444-2225

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FAQ

What is HomeLight Equity Boost?

Equity Boost is a feature within Buy Before You Sell that lets you unlock additional equity beyond the standard 70% by backing it with proof of qualifying assets. There's no extra fee-just the standard 2.4% program fee.

What assets qualify for Equity Boost?

Qualifying assets include: savings accounts, 401(k), IRAs, investment/brokerage accounts, and gift funds. Cryptocurrency, business assets, and assets already allocated for your purchase do NOT qualify.

What credit score do I need?

680+ credit requires 1.5x the boost amount in qualifying assets. 620-679 requires 2x. Below 620 is not eligible for Equity Boost.

Is there an extra fee for Equity Boost?

No. Equity Boost is included within the standard 2.4% Buy Before You Sell program fee. You're not paying more to unlock more.

What if my home sells for less than the Equity Unlock amount?

If sale proceeds don't cover the full Equity Unlock balance (rare with proper pricing), you may need to liquidate the qualifying assets you used for backing to cover the difference.

Related Guides

→ How to Buy Before Selling Your Home in Los Angeles → Who Qualifies for HomeLight Buy Before You Sell? → The Real Costs of Buy Before You Sell in LA

JB

Justin Borges

HomeLight Partner Agent | DRE# 01940318

Disclaimer: This article provides general information about HomeLight Equity Boost. Program terms, requirements, and availability are subject to change. Asset requirements and credit score thresholds are based on current HomeLight documentation and may be updated. Consult with a HomeLight partner agent and financial advisor for guidance specific to your situation. The Borges Real Estate Team is not a lender.