What Is Home Equity and Why It Matters
You bought the home. You’ve made the payments. Maybe you even tackled a few upgrades. Now your property’s worth more than you owe—and that equity is sitting there. But how do you actually use it?
If you’re active-duty or a veteran using real estate to build wealth, you might be sitting on tens (or hundreds) of thousands in equity and feel stuck. Selling would unlock it, sure—but what if you want to hold the asset and use the value?
Good news: you’ve got options. Whether you’ve got a VA or conventional loan, here are three smart ways to tap into that equity—plus how to know which one fits your goals.
Three Ways to Tap Into Your Equity Without Selling
1. Home Equity Line of Credit (HELOC)
Think of this like a credit card backed by your house. You get approved for a limit, but only pay interest on what you actually borrow. That flexibility makes a HELOC great for:
- Renovation projects
- Emergencies or unexpected expenses
- Ongoing investment opportunities (like funding your next live-in flip)
Combat Properties’ founder is actually doing this right now—renovating a basement and planning to pull a HELOC to cover the construction costs. Once the value jumps post-reno, he’ll tap into the equity without touching the first mortgage.
Best for: homeowners who want access to cash without changing their existing loan. Great if you’ve got a solid rate and don’t want to refinance.
2. Cash-Out Refinance
This one replaces your current mortgage with a new, larger loan—and you pocket the difference. Say you owe $220K, but your home appraises for $320K. You could refinance for $280K, pay off the old loan, and keep $60K (minus fees and closing costs).
Cash-out refis can work with both VA and conventional loans. The VA even offers its own version with some flexible guidelines.
Best for: homeowners who want to lock in a better rate, change loan terms, or consolidate debt. Just be sure the new mortgage makes long-term sense.
3. Home Equity Loan (aka “second mortgage”)
Unlike a HELOC, this gives you a lump sum upfront. You repay it over time with fixed monthly payments. No redraw option—just a one-time disbursement.
Home equity loans are great when you have a specific need: maybe you’re buying a second property, starting a business, or making a major purchase and don’t want variable rates.
Best for: homeowners with a one-time cash need and who like predictable payments.
Which Equity Strategy Fits Your Goals?
Here’s a quick guide:
| Goal | Best Fit |
| Flexible access to cash | HELOC |
| Lower interest + extra funds | Cash-Out Refi |
| Large one-time need | Home Equity Loan |
Bonus tip: VA loans work with both cash-out refinances and some HELOC options (depending on the lender). So even if you bought with a VA loan, you’ve still got multiple ways to pull from your equity.
Bonus Tips for Military and Veteran Homeowners
- Don’t over-leverage: If you plan to PCS soon, keep some cushion. Rental income can help, but vacancies still happen.
- Use the equity wisely: Whether it’s funding another deal or building an emergency buffer, make sure your equity pull moves your wealth forward—not sideways.
- Compare lenders carefully: Fees, draw periods, and interest rates vary wildly. Work with someone who understands military timelines and property goals.
Talk to a Military-Friendly Property Expert
Combat Properties works with military investors all over the country—whether you’re renovating in Virginia or holding rentals across multiple states. We’ll walk you through the numbers ourselves.
Equity doesn’t build itself. You’ve done the hard part—now you’ve got options. Let’s help you use them smartly.
Additional Resources:
Consumer Financial Protection Bureau (CFPB) for loan product explanations
VA Cash-Out Refinance Overview
Best Home Equity Loan Lenders of 2025