Hometap
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About Hometap
Hometap Synopsis
Review Summary: Hometap gives homeowners money in exchange for a share in the property when the investment period is over or when the home is sold, whichever comes first. It does not charge interest or require monthly payments during the investment period.
Recommended for: The home equity investments from Hometap may be the right choice for someone who is too young for reverse mortgage and needs an infusion of cash but wants to avoid incurring debt or taking on monthly payments. (Note: You must also live in one of the states serviced by Hometap. See the full list below.)
What is a Home Equity Investment?
A home equity investment is money homeowners receive in exchange for a cut of home’s market value when it is time to settle the investment. This is an option for homeowners who would like to access equity in their homes but don’t want to sell their homes or take out a loan. The investments are interest-free and do not require monthly payments.
Pros and Cons of Hometap
Pros
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Free Home Equity Investments Guide
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Informative, easy-to-understand website
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Best Company Outlook 2022 by Comparably
Cons
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Only available in 18 states (see list below)
Hometap Reviews
| Consumer Rating Platform | Rating |
|---|---|
| Better Business Bureau | B+ BBB Rating; 4.31/5 Stars with 70 Reviews |
| Lendedu | 4.8/5 Stars Editorial Rating |
| Supermoney | 3.4/5 Stars with 18 Reviews |
| Trustpilot | 4.9/5 Stars with 4,281 Reviews |
Hometap Full Review
Overview
Hometap says that it works differently than a traditional shared appreciation lender. In fact, it calls itself a home equity investor, not a shared appreciation lender.
Instead of taking out a loan, homeowners allow Hometap to become co-investors in their homes. Hometap gives homeowners money based on their homes’ equity. The homeowners settle the investment after a 10-year period or when the house is sold, whichever comes first. The homeowners pay Hometap a percentage of the current home market value to the investor.
Hometap’s investment goes up and down with the market just like any other investment.
Hometap calls this the “share of home value” model.
With the shared appreciation model, the homeowner pays back the original lump sum received from the lender plus a percentage of the home’s appreciation.
A Hometap investment requires no monthly payments or interest to be paid.
While each Hometap applicant is taken on a case-by-case basis, here are some general qualifications that make a homeowner more likely to get approved for a home equity investment with Hometap:
- Own a single-family home or condo in one of the states Hometap services (see full list of states below)
- Have a credit score higher than 600
- Have a minimum 25% equity in the home
- The investment amount desired is 30% or less than the home’s total value
Hometap says that the entire process can be completed in three weeks but may take longer.
Hometap Home Equity Investment Application Process
This is the expected process homeowners will go through if they pursue a home equity investment with Hometap:
- Get an estimate. At this stage, an interested homeowner will reach out to Hometap for an estimate, and an Investment Manager will put together an estimate for you.
- Apply. If the numbers work for the homeowner, the homeowner will submit an application, which is done online.
- Finalize offer. After ordering an appraisal, Hometap will then put together an official Investment offer.
- Sign the loan documents. If the final offer is accepted, then both the homeowner and Hometap will sign the loan documents.
- Funds sent to homeowners. In just a few days, the homeowner will be wired the funds. And Hometap will own a share in the home.
- Settle the investment. The loan is settled with Hometap and the end of the 10-year period or before. This is done by buying out Hometap’s share, taking out a home equity loan to pay for it, or selling the home.
Hometap Rates and Fees
There are some fees associated with obtaining an investment with Hometap. These include the following:
- Hometap fee for processing and funding the investment: 3% of the Investment
- Appraisal: $599 ($800 in Oregon)
- Title Charges: $700-$800
- Government Recording and Transfer Charges: $370-$1000
Company Information
Hometap was founded in 2017 by Jeff Glass and Max Campion.
The goal of the company is to help homeowners who are “house-rich” but “cash-poor” access the equity in their homes without taking on more debt.
States Serviced by Hometap
Here are the 18 states and the District of Columbia that Hometap currently services:
- Arizona
- California
- Florida
- Indiana
- Michigan
- Minnesota
- Missouri
- Nevada
- New York
- New Jersey
- Ohio
- Oregon
- Pennsylvania
- South Carolina
- Utah
- Virginia
- Washington
- Washington, D.C.
Reviews last updated: 1/29/25. (Reviews are typically updated monthly.)
Rating last updated: 1/29/25. (Ratings are typically updated once per quarter.)
Our Methodology
We independently identify Home Equity Investment companies. Home Equity Investment companies are evaluated based on five factors that we believe are important for consumers: years in business, number of products offered, customer service availability, state licensing footprint, and Better Business Bureau (BBB) Ratings. Please find a full description of our rating system here.
This information is intended to be general and educational in nature and should not be construed as financial advice. Consult your financial advisor before implementing financial strategies for your retirement.
Address: 800 Boylston St, Suite 2906 Boston, MA 02199
Reviews for Hometap
3.0 out of 5 stars (based on 1 review)
Only if you are desperate!
This type of product appears to be an easy way to get cash . Unfortunately my experience wasn’t great , particularly because my rep must have been new and wasn’t through. At the closing table I was informed that my lien needed to be paid off it was a small loan 20 k which reduced the balance of what I wanted 50k as a result i got less money. 2 years later inquire about increasing the amount. Granted I have 10 years for payoff , however I have a ton of equity and I should have borrowed a lot more . My home value 4 years later is at its peak. So before they lend you anything the first agreement must be paid in shrinking your equity. BE careful borrowing 50 k total in order to get more from my equity I need to payoff this now 90k balance. Yikes predatory lending at its best . Would I do this again NO . If you do borrow enough to get you through 10 years. This is how they get you . The reps are v good at not telling you anything. Just be careful. I’ve bought homes refinanced and have had good experiences with excellent reps . Not so much with Hometap .
January 22, 2025