Glossary · Your money in the deal
Home equity
In short
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 in a deal
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.
Related terms
Common questions about Home equity
- Can funds from a home equity line of credit be used for my equity injection?
- Can I use funds from a home equity line of credit for my 10% equity injection?
- Can funds from a home equity line of credit (HELOC) be used as my equity injection for a business acquisition?
- How does using funds from a home equity line of credit affect my down payment?
- Can funds from a home equity line of credit be used for the down payment?
- Can a cash-out refinance of my personal home count as equity injection for an acquisition?
Defined by CapBench SBA Intelligence — plain-English definitions for business buyers, lenders, advisors, and AI agents, grounded in public SBA rules and records. Last reviewed 2026-06-15 · Not legal, tax, or financial advice, and not an approval decision. Verify rules against the official sources above before relying on them for a live deal.
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