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.
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:
- Get approved for BBYS - You receive your initial Equity Unlock Amount based on your home's value and risk profile
- Identify the gap - If the initial amount isn't enough for your target down payment, you calculate how much more you need
- Apply for Equity Boost - Through your lender, you provide proof of qualifying assets
- Receive increased unlock - Your Equity Unlock Amount increases based on your verified assets
- 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
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?
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.
Free consultation - No pressure
The Important Catch: Understanding Your Commitment
Equity Boost isn't free money. Here's the commitment you're making:
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
Your initial Equity Unlock Amount is 80-90% of what you need. The boost is relatively small, and the risk is manageable.
The assets backing the boost represent a small portion of your total wealth. Even worst-case liquidation wouldn't materially affect your financial security.
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.
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
If backing the boost requires most of your liquid assets, you're taking on significant risk. Consider a smaller target purchase instead.
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.
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) 444-2225Text works too - No obligation
