{"ok":true,"canonical_url":"https://dealroom.so/glossary/home-equity","api_url":"https://dealroom.so/api/public/glossary/home-equity","data_freshness":{"sba_records_through":"2026-05-31","fdic_records_through":"2026-03-31","dealroom_last_updated":"2026-06-15","timezone":"America/Chicago"},"source_summary":["Public SBA 7(a) loan records","FDIC institution data","DealRoom lender and franchise enrichment"],"term":{"slug":"home-equity","term":"Home equity","group":"Your money in the deal","definition":"This is the portion of your home's value that you actually own, calculated as its market value minus any outstanding mortgage debt. It's often a source of funds for your equity injection.","what_it_means":"Lenders will review your Personal financial statement and Asset statement to assess your personal liquidity, including home equity. You might use a Home equity line of credit (HELOC) or refinance your home to fund your equity injection, though lenders prefer seasoned funds. Be aware of the risks of leveraging personal assets.","url":"https://dealroom.so/glossary/home-equity","official_sources":[],"related":[{"slug":"equity-injection","term":"Equity injection","url":"https://dealroom.so/glossary/equity-injection"},{"slug":"home-equity-line-of-credit","term":"Home equity line of credit","url":"https://dealroom.so/glossary/home-equity-line-of-credit"},{"slug":"personal-financial-statement","term":"Personal financial statement","url":"https://dealroom.so/glossary/personal-financial-statement"},{"slug":"asset-statement","term":"Asset statement","url":"https://dealroom.so/glossary/asset-statement"}],"related_questions":[{"question":"Can funds from a home equity line of credit be used for my equity injection?","url":"https://dealroom.so/sba-7a/questions/can-funds-from-a-home-equity-line-of-credit-be-used-for-my-equity-injection"},{"question":"Can I use funds from a home equity line of credit for my 10% equity injection?","url":"https://dealroom.so/sba-7a/questions/can-i-use-funds-from-a-home-equity-line-of-credit-for-my-10-equity-injection"},{"question":"Can funds from a home equity line of credit (HELOC) be used as my equity injection for a business acquisition?","url":"https://dealroom.so/sba-7a/questions/can-funds-from-a-home-equity-line-of-credit-heloc-be-used-as-my-equity-injection-for-a-bus"},{"question":"How does using funds from a home equity line of credit affect my down payment?","url":"https://dealroom.so/sba-7a/questions/how-does-using-funds-from-a-home-equity-line-of-credit-affect-my-down-payment"},{"question":"Can funds from a home equity line of credit be used for the down payment?","url":"https://dealroom.so/sba-7a/questions/can-funds-from-a-home-equity-line-of-credit-be-used-for-the-down-payment"},{"question":"Can a cash-out refinance of my personal home count as equity injection for an acquisition?","url":"https://dealroom.so/sba-7a/questions/can-a-cash-out-refinance-of-my-personal-home-count-as-equity-injection-for-an-acquisition"}]},"caveats":["Definitions represent DealRoom's plain-English interpretation for buyers; verify regulatory terms against the official SBA and eCFR sources listed.","Not legal, tax, or financial advice, and not an SBA eligibility determination."],"citation":{"label":"DealRoom.so Glossary — Home equity","url":"https://dealroom.so/glossary/home-equity","source_type":"DealRoom Data"}}