Core Insights - The significant increase in home values, nearly 50% from $243,398 in November 2019 to $359,241 in November 2025, has led to a rise in home equity for many homeowners, which can be utilized for debt repayment or home improvements [2]. Group 1: Home Equity Understanding - Home equity is defined as the difference between a home's value and the mortgage or other secured debts against it, starting with the down payment and increasing as home values rise and mortgages are paid down [4][5]. - Homeowners can typically borrow up to around 80% of their home's value across all housing debt, but lenders charge interest on home equity financing, making it not free money [7]. Group 2: Using Home Equity - While it is technically possible to use home equity to pay down a mortgage, this often results in trading one type of debt for another, which may have higher interest rates, making it counterproductive [2][6]. - Refinancing the original mortgage may be a more beneficial option than borrowing against home equity to reduce mortgage size [2].

Core Insights - Better.com has introduced a streamlined approval process for self-employed, small business, and gig workers to qualify for a home equity line of credit (HELOC) up to $400,000, utilizing a "bank statement only" approach [1][2]. Group 1: Approval Process - The new HELOC program eliminates the need for tax returns, profit-and-loss statements, or W-2s, making it easier for small business owners and self-employed individuals to qualify [2][4]. - Borrowers can qualify using 12 or 24 months of business or personal bank statements, and no physical home appraisal is required for lines of credit up to $400,000 [4]. Group 2: AI-Driven Underwriting - The underwriting process is powered by an AI system named Tinman, which automates verification and detects alternative data sources, reducing the need for extensive document reviews [3]. Group 3: Market Potential - The program is expected to expand Better's HELOC reach significantly, with estimates suggesting that over 6,000 customers who were previously denied could have been served, translating to $600 million in potential home equity loans [5]. Group 4: Target Borrowers - The program is designed for various borrower types, including independent contractors, freelancers, and those with fluctuating incomes who require flexible qualifying guidelines [6][8]. Group 5: Application Process - The application process for Better's Bank Statement HELOC is fully online, and the product is available for primary, second, and investment homes across all states except Texas [9].