Hometap in Details and All It Has to Offer to You and Your Home

Are you in search for the perfect loan to meet up with your home daily expenses? Hometap is the answer just for you. It can help you access your home equity to fund your dream; whether it’s paying off debt, going back to school, or starting a business.

A number of businesses are now investing in home equity, and Hometap is one such company cashing in on this concept. At its core, Hometap and companies like it give you access to your home equity so you can use the funds for whatever purpose you want.

Hometap in Details and All It Has to Offer to You and Your Home

You don’t need to take out a loan or face another monthly payment, making this an especially attractive option to cash-strapped homeowners in need. Hometap provides you with an alternative to a home equity loan in exchange for a portion of the proceeds from your home’s future sale.

The investment term is 10 years, although you may choose to sell your home or settle Hometap’s investment at any time before then. If you consider yourself “house rich but cash poor,” Hometap might be the right opportunity for you. Here’s how it works.

How Hometap Works

Accessing your home equity in exchange for cash from Hometap is a simple process. You’ll first get an investment estimate for your property by completing an online investment inquiry, which takes about five minutes. If you qualify, Hometap will prepare a detailed explanation of the investment and explain what happens next.

Should you choose to move forward, you must get a home appraisal to determine the current value of your home. If you’re approved, Hometap will then give you the final investment offer, generally between 5% to 15% of your home’s current worth (up to $250,000).

After the paperwork is taken care of and recorded, you’ll receive your money. You get to decide what to do with it; since you’re not taking on new debt, you won’t be adding another debt payment to your monthly budget.

Hometap Share

When you’re ready to sell or have come to the end of your investment term, Hometap will collect what’s called the Hometap Share, its agreed-upon percentage of your home’s sale price. Hometap makes more money if your home goes up in value but makes less — or may even takes a loss — if it decreases.

The length of a Hometap investment term is 10 years. If you choose not to sell your home, you can settle the investment with savings, refinancing, or by taking out a loan.

Homeowners who do business with Hometap will be required to uphold the terms of the investment, which includes continuing to pay their mortgage, maintaining homeowner’s insurance, staying current on property taxes, and keeping the house in good shape.

The Benefits of Using Hometap

Hometap offers a unique way of accessing your home equity, the benefits of which include:

No Loan Payment and No Interest

Because Hometap is an investor, not a lender, you won’t face an additional monthly debt payment or any interest rate changes as a result of doing business with the company. In addition, since you can use the funds from a Hometap investment to pay off existing debts, you can also get eliminate or significantly reduce your other monthly payments.

No Home Inspections

Although Hometap requires a third-party home appraisal, it won’t send anyone to your home for surprise inspections during the investment term. Essentially, there’s no ongoing commitment to the company until it comes time to sell your home or settle the investment.

Easy, Straightforward Process

The entire Hometap application can be completed online in about 10 minutes from the comfort of your own home. In addition, the process can take as little as two weeks from application to funding, making it faster than most standard lenders and home loan options.

No Impact On Your Credit

They can determine if you qualify for an investment without a hard credit inquiry, which means your credit score won’t be impacted when you request an investment estimate on its website.

Pros & Cons

Pros & Cons


  • Investment properties are eligible for funding.
  • No interest or monthly payments.
  • No impact on your credit report.
  • Fund amounts of up to $250,000 available.
  • The entire application process takes as little as 10 minutes and can be completed 100% online.


  • Closing costs of up to 5%
  • Origination fees of up to 3%
  • Maximum contract term of 10 years.
  • It takes at least three weeks to fund a shared equity agreement with Hometap.

Hometap Equity Partners Terms & Requirements

Investment Term Amount
Equity Investment Range 5% – 15%
Equity Investment Range $30000 – $250000
Maximum Equity Investment $250,000
Maximum Loan to Value Ratio 75%

Hometap Partners Cost

Fee Amount
Closing Costs 1% – 5%
Percentage Share of Home Appreciation 0%
Origination Fee 3%


Hometap and equity-sharing companies like it aren’t a bad deal, but they are fairly new. That doesn’t mean they’re the wrong way to tap into your home equity, but you should do your research to make sure you understand how they work and if it’s the best choice for your financial needs.

If you can’t afford or don’t want a traditional loan payment but could put up to $250,000 to good use, tapping into your home equity could be a wise

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