Home equity lending is drying up; but that doesn't mean that you can't earn extra cash at home. Here are some common ways people are taking advantage of their homes, and earning money doing it.

You might not be able to tap into your home's equity through a home equity line of credit due to a tighter lending environment, but you can earn extra money from your home. People are finding ways to take advantage of their living space, and putting it to use to earn money. There's a bonus that comes along with this method for getting extra cash: you don't have to pay it back.

Doing your home equity homework

Many people are using their homes to start businesses that provide them with much needed additional income. Some of the options require licensing, or there may be local restrictions or tax consequences, so thoroughly research an option before getting started. Here are a few:

• Rent a room. If you have a spare bedroom, you may be able to rent it to a college student or other temporary resident.
• Doggie daycare. Many people are looking for alternatives to expensive pet boarding while they're away on vacation. Use your home as a vacation spot for furry friends.
• Storage. Don't just look inside your home for money-earning potential. If you have one side of a garage that you never use, rent it out to someone looking for a place to store his stuff.
• Watching the kids. If you're a stay-at-home-mom and enjoy children in the neighborhood, offer daycare services.
• Emulate Martha Stewart. If you sew, knit, embroider, or enjoy other craft hobbies, you could sell your items on eBay.
• Sell stuff. Clean out your basement, attic, and garage and hold a yard sale. Keep prices low and you'll end up with a clean house and extra money to deposit.
• Home sales parties. Many businesses selling items from decorator baskets to plasticware and jewelry welcome home-based sales representatives. Friends hold parties where you're given time to present and sell your products.

Put computer to work

If your time and space are limited, there are still ways to earn money at home:

• If you have collectibles, books, unused small appliances, or other items that you don't want anymore, and don't have the time to have a yard sale, sell them on ebay.
• Complete paid online surveys. Search the Internet and find companies that pay consumers to take them.

Despite the current economic environment, you can use your home to get extra cash. All it takes is some research, creativity, and work. There are more ways to turn your home into equity without going into debt.