September 22, 2023
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Are you interested by taking a house fairness mortgage or house fairness line of credit score to pay for renovations and repairs or put towards your child’s school fund (or your loans)?

Borrowing is only one approach to leverage the fairness in your house for money. Another choice is a house fairness funding. Although this different carries its personal set of dangers, it might additionally supply benefits for owners who want money quick and do not wish to owe month-to-month funds. Hometap is only one firm that may make investments in your house’s fairness.

Discover out if Hometap is best for you right here on this full Hometap assessment.

Commissions & Charges – 6

Buyer Service – 9

Ease of Use – 10

Instruments & Assets – 7

Charges – 8


Hometap is a house fairness sharing firm that invests in houses by providing money payouts in alternate for a portion of a house’s future worth. Residence fairness investments are an alternative choice to conventional borrowing strategies reminiscent of HELOCs and residential fairness loans.

Get a Home Equity Investment With Hometap

Execs & Cons


  • Money upfront. Obtain your Hometap funding inside a matter of weeks after making use of.
  • No restrictions on use. There are not any guidelines or necessities for utilizing your Hometap funding. Simply that you simply pay Hometap what you owe earlier than the 10-year interval is up.
  • No house inspections. All Hometap is desirous about is your private home’s worth while you promote or settle. They will not be checking on your home all through the efficient interval or weighing in on any renovation choices you make.
  • Low minimal credit score rating. Hometap requires you to have a credit score rating of not less than 500 to qualify, which is taken into account very poor. No laborious credit score verify is required.


  • Dangerous. You will not know precisely what you may owe Hometap on the finish of the settlement interval as a result of it depends upon your home’s future worth.
  • Potential for pressured sale. You might have to promote your private home to make your Hometap fairness fee even in the event you do not wish to or change your thoughts.
  • Restricted operations. At the moment, Hometap is barely making house fairness investments in seven U.S. states. This leaves the remainder of U.S.-based owners within the mud.

Who Is Hometap For?

Home-Wealthy, Money-Poor Owners

Quote from Hometap user about how this provided an alternative to HELOC

When you want money, you possibly can lean on your private home’s worth and the fairness you have already got in it. Hometap does not approve all functions for investments, however when you have sufficient fairness and your private home’s worth is anticipated to go up, you in all probability have a fairly good likelihood.

Hometap requires you to have not less than 25% fairness to qualify.

Individuals Who Need Money Now

With Hometap, you possibly can obtain an funding of as much as 30% of your private home’s worth or $600,000 upfront in as little as three weeks after making use of.

This is not “debt-free money” precisely, however you will not owe curiosity or month-to-month funds and pays Hometap out of your earnings if/while you promote.

Individuals Who Do not Need Month-to-month Repayments

A conventional house fairness mortgage requires you to make month-to-month funds towards what you owe and fees an rate of interest on prime of that.

However because it’s an funding, you will not make month-to-month funds or pay curiosity to Hometap, making this a beautiful choice for people who find themselves planning to promote their houses sooner or later however cannot afford so as to add one other fee to their finances proper now.

Who Is Hometap Not Very best For?

New Owners

When you’ve simply bought your home, you in all probability will not be capable to qualify for a house fairness funding with Hometap until you have constructed fairness in your house rapidly and have not less than 25%.

Individuals Who Aren’t Positive About Promoting

When you’re not 100% sure you wish to promote your private home within the considerably close to future, Hometap in all probability is not for you. As a result of to give you the cash, you may simply find yourself taking out a mortgage anyway. On this case, think about borrowing choices reminiscent of a house fairness mortgage.

Individuals in 43 U.S. States

As of April 2023, Hometap is barely working in seven states. These are:

  • Massachusetts
  • Michigan
  • Minnesota
  • Nevada
  • Ohio
  • South Carolina
  • Utah

When you do not see your state on this listing, Hometap will not be obtainable to you but.

How Does Hometap Work?

Hometap home equity investment timeline from requesting an estimate to settling the investment

Hometap shouldn’t be a lender however a house equity-sharing firm or investor working underneath the LLC Hometap Fairness Companions. You faucet into your fairness for a right away money payout in alternate for a portion of that fairness afterward. The efficient interval is ten years.

When you qualify for an funding, you’ll enter into a house fairness sharing settlement. Hometap can pay you a lump sum upfront and you’ll pay an agreed-upon share, calculated utilizing your private home worth, inside or on the finish of the ten-year efficient interval.

That is necessary: Hometap is entitled to a share of your private home’s fairness whether or not you promote your home or not.

To qualify for an funding, Hometap requires that you’ve not less than 25% fairness in your house. They are going to make an funding of as much as 30% of your private home’s worth (or a most of $600,000). Hometap invests in single-family homes and works with FICO scores above 500.

Once you boil it down, there are three fundamental steps to the method of getting a house fairness funding from Hometap.

  1. Apply – See in the event you qualify by taking the Match Quiz and getting an funding estimate.
  2. Finalize – Get your home appraised, signal the authorized papers, and settle for a remaining funding.
  3. Settle – Repay Hometap while you promote your private home or settle the funding early earlier than the ten-year efficient interval ends.

Here is a deeper dive.

Apply for an Funding

Hometap page that says "Ready to get started?" with a button for getting an estimate


To use for an funding, you may submit an Funding Inquiry via the location that asks primary questions on your home and your objectives for the funding. That is referred to as the Match Quiz and it is only a preliminary utility. We’ll cowl this in additional element subsequent within the “Who Qualifies To Use Hometap?” part.

Funding Estimate

If Hometap decides your home is likely to be price investing in, they’re going to ship an Funding Estimate. This may differ from the ultimate supply however ought to provide you with a ballpark concept of the place you may land.

That is additionally while you’ll be linked with a Hometap Funding Supervisor, a devoted specialist who will stroll you thru making use of and reply your questions.


Subsequent, you may submit your full utility. At this stage, you may present the requested paperwork from your private home buy and mortgage to Hometap and add them to your account.

Funding Supply

Lastly, Hometap provides you with finalized Funding Particulars together with your remaining funding supply. That is while you learn the way a lot money Hometap is definitely prepared to speculate in your house.

Hometap’s funding is calculated as a share of your private home’s worth while you apply, and the quantity you owe on the finish of the efficient interval is calculated utilizing the identical share. So in the event you’re following alongside, which means you may wind up paying Hometap extra and even lower than they paid you. This can be a danger you — and Hometap — take. At this stage, Hometap may even ship for a third-party appraisal.

Hometap will make a most funding of 30% or $600,000 (minimal of $15,000) however the quantity they’ll pay for house fairness depends upon the worth of your private home and the market. You will not know what you are going to pay to Hometap till you are able to settle the funding.

The complete course of, from making use of for an funding to receiving your money disbursement, can take as little as three weeks if every little thing goes easily. You will not make a month-to-month fee or pay curiosity while you get a Hometap funding.

Hometap will arrange a third-party appraisal as soon as when contemplating your utility and once more while you determine to promote. There will not be any follow-up inspections to see what you have finished with the home and Hometap will not ask you to do something aside from keep on prime of your funds and preserve your private home.

You will let Hometap know in the event you’re able to promote or wish to purchase out the funding.

Renovation Changes

When you plan to make vital updates or enhancements to your private home and also you count on these to have an effect on its worth, it is best to request a Renovation Adjustment from Hometap.

Renovation Changes may be made for sure updates that price greater than $25,000 in complete. This permits owners to have their house worth adjusted right down to account for renovations and exclude these from their house’s remaining worth.

Hometap doesn’t essentially get a share of appreciation that takes place as a direct results of renovations. When you present the mandatory documentation to show what you probably did and what it price, you will get the proportion adjusted. However Renovation Changes are not assured.

To request a Renovation Adjustment, you may want receipts and footage from any renovations you do and you will want to supply these to Hometap inside 90 days of completion.

Can You Borrow Extra After the Preliminary Funding?

When you want extra money after finalizing your utility and receiving your funds, you may be capable to make that occur with an Funding Improve. However simply because Hometap made an fairness funding the primary time round does not imply they’ll make investments extra.

They assess eligibility for Funding Will increase on a case-by-case foundation. Speak to your Funding Supervisor if you wish to take into consideration handing over extra of your fairness for money.

Settling the Funding

You could have ten years after accepting your remaining supply from Hometap to settle the funding.

When you promote your home inside this timeframe, you possibly can simply give Hometap what you owe from the proceeds of the sale so you don’t have any out-of-pocket prices. However if you would like out of the settlement sooner and you do not wish to promote, you may have the purchase out the funding. Hometap does not care how, simply that you simply pay the quantity equal to the house fairness agreed upon.

Hometap makes cash solely when your private home’s worth will increase, in order that they’re banking on this taking place by the point you are able to promote or settle. If your private home decreases in worth, you’ll nonetheless simply owe Hometap the agreed-upon share, even when that is lower than the money you obtained upfront. But when your private home’s sale worth is greater than what you paid and even what you count on, Hometap’s share might be greater and so they’ll revenue.

Here is a pattern of what this might seem like for a house estimated to be price $275,000.

Example home equity investment with Hometap that shows how much the home is worth and what share Hometap will receive at the time of sale/settlement

This instance state of affairs was generated utilizing Hometap’s Home Equity Investment Calculator. You need to use this to see how a lot house fairness you may be capable to entry.

When you settle with out promoting your private home, you may pay a share primarily based on your private home’s market worth on the time of settlement. So in the event you determine to settle the funding three years after making use of, Hometap will discover out what your private home’s worth is at that time with a third-party house appraisal.

Do You Want To Inform Hometap How You Use the Cash?

No. Hometap will not helicopter over you to be sure to’re rising their funding. There might be no random check-ins or value determinations.

So far as your obligations earlier than settling the funding, you are simply anticipated to remain on prime of your mortgage funds and proceed making all different insurance coverage and tax funds you have been making as a house owner.

You do not want to get Hometap’s enter on adjustments you wish to make to your private home or do something to attempt to enhance its worth in the event you do not wish to.

Who Qualifies To Use Hometap?

It isn’t in Hometap’s greatest curiosity to simply spend money on any previous house, in order that they’re specific about which homes and owners they spend money on. Here is extra info on eligibility and the qualification course of.

Match Quiz

Earlier than doing something, you must take a quiz to search out out in the event you pre-qualify. That is referred to as the Match Quiz.

First, Hometap will ask in the event you personal a house and the place. This can instantly rule you out in the event you’re in one of many 43 states Hometap hasn’t but expanded to. But when your state does not qualify and also you’re actually , you possibly can signal as much as obtain a notification if Hometap makes it to your neck of the woods.

"Is Hometap right for me?" page that starts with the question "Are you a homeowner?"

The following query asks you about how you’ll use the Hometap funding. You are underneath no obligation to undergo with any of the makes use of you point out right here — that is simply preliminary.

Hometap Fit Quiz question that offers options for how investment will be used

Subsequent, you may point out your excellent Hometap Funding quantity by selecting a spread between $15,000 and $600,000 and the way lengthy you intend to reside on this house. The query is “Is that this your ceaselessly house?” and the choices are:

  • Sure, I do not plan to maneuver
  • No, I plan to promote in 6-10 years
  • No, I plan to promote in 1-5 years
  • I do not know

Then the quiz asks you in the event you’re contemplating different choices like house fairness loans, HELOCs, reverse mortgages, refinances, private loans, and so on.

Hometap Fit Quiz question that asks about ideal investment amount and financial situation

Lastly, you may present some contact info, together with your title, e-mail tackle, and cellphone quantity. It’s essential to do that to get to the following step, which is acquiring your outcomes.

When you’re permitted, you may be linked with a devoted Funding Supervisor who will work with you to finalize your utility.

Each houses and rental properties can qualify for investments.

Taking part States

Hometap remains to be increasing its market. On the time of penning this, it solely invests in seven U.S. states. These are:

  • Massachusetts
  • Michigan
  • Minnesota
  • Nevada
  • Ohio
  • South Carolina
  • Utah

Credit score Rating Necessities

Hometap will think about your utility when you have a credit score rating of not less than 500, assuming every little thing else in your utility seems to be good. However most shoppers have scores of 600 or extra.

Whereas conventional house fairness loans will assess your rate of interest utilizing your credit score and borrowing historical past, Hometap does not even do a tough credit score verify.

>>> Discover out extra: Finest Credit score Rating Websites: How To Successfully Monitor Your Credit score Rating

Advantages of Hometap

Hometap compared to home equity loans, HELOCs, cash-out refinances, and reverse mortgages

No Month-to-month Funds or Curiosity

Not like a house fairness mortgage or house fairness line of credit score, you will not make month-to-month funds or pay an rate of interest. You simply pay Hometap on the finish of the efficient interval — or 10 years after taking the funding — or settle early.

Straightforward Utility Course of

Seeing in the event you qualify for a Hometap Funding is quick and simple. Hometap solely desires to see that your credit score rating is not less than 500 and does not use your credit score in any other case. Additionally they will not take note of your debt-to-income ratio as this is not a lending state of affairs. Hometap is most in your house and its worth, much less in you.

After which will not go away you hanging while you apply — you may know in the event you may qualify virtually instantly. Plus, every little thing from the Match Quiz to signing your remaining supply may be finished on-line.

Devoted Specialist

You will be paired with a Hometap Funding Supervisor if permitted who will be capable to reply any questions you have got in regards to the course of and information you thru setup. That is particularly handy if you wish to make adjustments to an energetic funding reminiscent of rising the quantity or adjusting for renovations.

No Residence Inspections

Hometap does not have any say in how you utilize their funding and does not play a task within the house sale course of in the event you determine to maneuver. All they require in the event you promote is that you simply attempt to get a good market worth on your house as a result of that is what might be used to calculate the payout share.

Drawbacks to Hometap

No Set Compensation

As a result of the funding is predicated on a share of your private home’s future worth, there is no telling precisely what you may owe Hometap on the finish of the funding interval (whether or not you agree after promoting or settle early).

You may find yourself paying Hometap much more than they paid you if the worth of your private home goes up, and this might come out of your revenue. When you’re relying on a giant acquire from the sale, it might be slashed after you pay Hometap.

However maybe the scariest final result is in the event you do not promote and your private home’s worth will increase considerably. At this level, you are not paying Hometap from what would in any other case be a revenue, you are paying out of your financial savings, a mortgage, a second mortgage, or no matter else.

>>> Discover out extra: How A lot Does It Value To Promote a Residence?

No Flexibility

When you change your thoughts about promoting your home after making use of for Hometap, you have no choices aside from settling the funding. That is by no matter means needed, even when that is a pressured sale, taking out a second mortgage, or making use of for a hefty private mortgage.

Going the house fairness funding route since you’re money poor solely is smart when you have a plan in place to alter that.

Riskier Than a Conventional Residence Fairness Mortgage

With a Hometap funding, the expectation is mostly that you’ll promote your private home. When you do not, you continue to must give you the cash to pay what you owe, even when that is greater than the quantity you obtained as a money funding. For lots of people, it is going to be, since Hometap solely invests in houses it expects to understand.

TL;DR: When you selected Hometap to keep away from taking out a mortgage, there’s an opportunity you continue to must.

Hometap’s Pricing & Charges

Hometap does not cost curiosity and makes most of its cash while you’re house worth will increase and also you pay them a portion of what you make on the sale.

That mentioned, Hometap does cost a number of charges. The largest one is a price equal to three% of your funding for funding and arranging the transaction. This, together with the charges for appraisal, is deducted out of your funding.

How To Contact Hometap

Earlier than working with Hometap, you possibly can reside chat with a consultant via the location. The chat will begin with a bot, however you possibly can request to be linked with an Funding Supervisor even when you have not began working with Hometap but.

It’s also possible to e-mail or schedule a name with a consultant from Hometap via the Contact Us web page of the location. For questions on pre-qualifying or making use of, e-mail hi [email protected]. For questions on energetic investments, e-mail [email protected].

As a consumer, you possibly can attain out to your Funding Supervisor at any time, whether or not you have got a query about your funding, you wish to enhance your funding quantity, you wish to know extra about settling early, or one thing else.

Hometap vs. Rivals

There aren’t many firms doing precisely what Hometap is doing, however there are a handful of different house equity-sharing firms. A few of these are Level, Unison, and Unlock. We’ll examine some similarities and variations between these choices right here.


Point logoLike Hometap, Level enables you to entry the fairness you have got in your house with a house fairness funding. Additionally they have low credit score necessities and do not require month-to-month funds, however Level differs from Hometap in that its phrases are 30 years and owners can qualify with fairness of 20% or extra (versus 25%). One other distinction is you can lease out your private home.

Level additionally provides SEED Down Fee Investments for these with good credit score and operates in 25 states plus D.C. in comparison with Hometap’s seven. Level will solely make investments as much as $500,000 and fees a processing price of three%.

Learn more.


Unison logoUnison is just like Hometap in some methods however differs within the specifics. With this firm, you should have as much as 30 years to settle the funding and may use the cash nevertheless you need. However the most funding is $500,000 or as much as 17.5% of the worth of your private home and the minimal is $30,000. Unison will cut back the appraised worth of your private home by 5.0% as a Threat Adjustment and should make a Deferred Upkeep Adjustment in the event you neglect to hold out needed repairs and this impacts your private home’s worth.

Unison investments will not be supposed for rental properties. Unison is obtainable in 29 states and D.C., making it the most important choice obtainable.

Learn more.


Unlock logoUnlock is one other Hometap competitor however with the bottom most funding at $300,000 (with a minimal of $30,000). For this firm, the efficient interval can be ten years for most individuals. However a very powerful distinction is that relatively than utterly shopping for out an funding unexpectedly by promoting or settling as you’ll with Hometap, you are able to do a partial buyout with Unlock to pay a little bit at a time. You are able to do this a number of instances.

Unlock fees a 3.9% origination price and should require you to repay a few of your debt with the cash they pay you. General, they’re a little bit extra restrictive however that partial buyout choice is exclusive. Unlock operates in 15 states and does permit for rental property investments.

Learn more.

Is Hometap the Identical as a Reverse Mortgage?

Hometap investments will not be the identical as reverse mortgages, although there are some similarities between the 2. With a reverse mortgage, you borrow towards your private home’s fairness. The quantity of the mortgage will increase the longer you borrow, however you will not owe something from month to month. You should use this house as your main residence to qualify.

The largest distinction is that you simply’re borrowing with a reverse mortgage and receiving common funds. You will not owe cash till you not occupy the house (and most debtors repay the mortgage after they promote), and you’ll pay curiosity.

This feature is solely for seniors over the age of 62, and also you largely see it being utilized by aged prospects who’re planning to reside out the remainder of their lives of their houses.

Backside Line

Hometap enables you to entry the fairness in your house for an virtually instantaneous payout, nevertheless it’s not with out disadvantages. Pay attention to the dangers that include investing in your house’s future worth and be sure to have a backup plan for getting out the funding in the event you select this. Residence fairness loans are safer for these undecided about promoting or with out sufficient fairness.

When you’re snug with the dangers, Hometap generally is a good choice for cash-strapped owners who would relatively hand over some house fairness than make a month-to-month fee. Hopefully, this Hometap assessment helps you determine in the event you’re a superb candidate or in the event you ought to maintain exploring different choices for leveraging your private home fairness for money.

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