HomeTap Review

ByTop10.com StaffSep. 17, 2020

This site is a free online resource that strives to offer helpful content and comparison features to its visitors. Please be advised that the operator of this site accepts advertising compensation from companies that appear on the site, and such compensation impacts the location and order in which the companies (and/or their products) are presented, and in some cases may also impact the rating that is assigned to them. To the extent that ratings appear on this site, such rating is determined by our subjective opinion and based on a methodology that aggregates our analysis of brand market share and reputation, each brand's conversion rates, compensation paid to us and general consumer interest. Company listings on this page DO NOT imply endorsement. We do not feature all providers on the market. Except as expressly set forth in our Terms of Use, all representations and warranties regarding the information presented on this page are disclaimed. The information, including pricing, which appears on this site is subject to change at any time.

In a Nutshell

Hometap offers a way to use your home’s equity when you need it. With an investment from Hometap, you can free yourself from debt and monthly payments that come with conventional home equity loans. By filling out a quick online application, you can qualify for up to $300,000 in-home equity investing.

pros

  • Pay only when you settle—no monthly payments or interest
  • Complete the online application in under 10 minutes
  • Make up to a $300,000 investment

cons

  • Face risk of forced home sale if you can’t settle
  • Have only 10-year maximum term

Hometap at a Glance 

Direct lender or marketplace? Direct lender
Loan types:  Home equity
Featured Loans:  HEI
Repayment terms:  10 years
Minimum Down Payment: 3.5%
Minimum Credit Score: 600
Best for: Fast and flexible investment options

Overview

Hometap offers home equity investments as an alternative to conventional home equity loans and HELOCs. Hometap invests with you so that you can have access to your equity without going into debt on another home.

With flexible, transparent options, Hometap lets you use your home’s current equity by investing in your home with you. When you settle your investment, Hometap receives a portion of your home’s value as payment for its investment.

Hometap isn’t a traditional lender, so it doesn’t charge interest or monthly payments. Instead, it approves you and invests all at once, so you have money when you need it. 

Best For?

Hometap works best for homeowners who want fast, flexible, and transparent loans. Since Hometap doesn’t require monthly payments or charge interest, it’s ideal for people who need money sooner rather than later. You don’t make any payments until you sell your home or settle your investment within the 10-year term. 

Types of Loans/Products

Hometap only offers home equity investments. However, it makes these investments flexible and easy for homeowners to qualify for through its application process.

Of your home’s total value, Hometap will invest up to 30% of your equity in exchange for 5% to 15% of your home’s appraised value. You’ll get a cash lump sum from its investment, and you won’t have to pay it back until you either sell your home or settle. 

Here’s what you can get with a Hometap investment:

  • Primary and secondary home equity investments
  • Funds of up to $300,000

Since Hometap doesn’t work like conventional lenders, it only offers one type of loan. The lack of options may seem like it traps homeowners into a cookie-cutter investment, but Hometap provides experienced investment managers to work with you and come up with a plan for your home.

The Application Process

Hometap has one of the quickest and easiest application processes available for home equity investments. The application itself only takes about ten minutes to complete, though the approval process can take longer.

When you apply for a Hometap investment, follow these steps:

  1. Fill out its online investment inquiry, which tells you whether you qualify for a home equity investment.
  2. Once you qualify, Hometap will walk you through their terms and how the investment works. 
  3. Get your home appraised. Its current value will determine how much Hometap will invest.
  4. Hometap will then approve you and invest anywhere from 5% to 30% of the current appraised value in exchange for a percentage of your home’s value or sell price. 
  5. It can take up to a month for Hometap to approve you, but at that point, you’ll receive the entire payment at once.

Rates and Fees– The Bare Basics 

Hometap will invest an amount up to 75% of your loan to value, or 30% of your home’s current worth.

While you don’t have to worry about monthly payments or interest, some of Hometap’s fees can add up. While its terms don’t put you in debt the same way traditional loans do, they require you to pay other fees, including:

  • 3% service fee
  • Home appraisal
  • Title charges
  • Government recording and transfer

These fees can total around $2,600 depending upon where you live, which means you will pay a significant amount to get your investment.

Compared to other direct lenders like Quicken Loans and Rocket Mortgage, Hometap offers fewer investment options for a shorter term as well as more fees. 

Repayment Terms

The maximum term for a Hometap investment is ten years, and you settle it all at once, the same way you received it. When you receive your loan, you agree to pay back 5% to 15% of your home’s appraised value or resale amount.

When you decide to settle, Hometap will send another appraiser to determine your home’s value. Depending on whether its value went up or fell over the past several years, you may end up paying even less than you borrowed.

Help & Support

Hometap investment managers are available Monday through Thursday from 8:00 a.m. to 8:00 p.m., and Friday from 8:00 a.m. to 5:00 p.m. In addition to contacting them directly, you can find more information on their Homeowners’ Resources page, which provides guides, videos, and other content to help you understand how a home equity investment can help you.

  • Email: hello@hometap.com
  • Phone: 1-617-415-4419

You can also use Hometap’s online form to send an inquiry, and they will get back to you. 

Summary

Hometap can be an excellent option for many homeowners who don’t want the stress of monthly payments that come with a loan. With this investor, you only pay back the loan when you settle or sell your home.

Hometap offers plenty of educational content for homeowners considering taking an investment. Despite its lengthy approval process and many fees, this company offers the advantage of less hassle for your money.

FAQ

How is a Hometap investment different from a HELOC?

A home equity line of credit (HELOC) lets you use your home’s equity when you need to borrow money. Hometap invests in your home based on the amount of equity you’ve already built from paying off your mortgage. 

With HELOCs, you risk foreclosure if you can’t keep up with monthly payments. Hometap doesn’t require monthly payments, so you don’t have to use your home as collateral or worry about paying back the investment for a decade.

What if my home’s value goes down after ten years?

If your home’s value goes down, Hometap doesn’t penalize you by charging you more. Some homeowners pay less than they borrowed when their home’s value goes down.

What happens if I can’t settle the investment?

One of the risks that comes with a Hometap investment is not being able to pay back the investment when the time comes to settle. In these situations, if you were not already planning to sell your home, you may be forced to do so to pay the company back.

Will a Hometap investment affect my credit score?

Because Hometap is not a conventional lender and does not demand monthly payments, its investment will not impact your credit score.

Physical Address 

800 Boylston St, 16th Floor

Boston, MA 02199


HomeTap customer testimonials

ExcellentReviews 205
TrustPilot is the world’s most powerful review platform, free and open to all.
Excellent
91%
Great
6%
Average
0%
Poor
2%
Bad
1%
  • author
    Linda L.
    a day ago
    Highly Recommend HomeTap

    I worked with Devlin Keogh and he kept me informed thru the application process and answered my questions thoroughly. I would definitely recommend HomeTap as a great option for getting at some of the equity in your home without having to do a standard home equity loan. Linda L.

    ...

  • author
    Sherry
    21 hours ago
    I needed the money to save my home and…

    I needed the money to save my home and my credit wasn't good. I owned my home, no mortgage, borrowed $60,000 but I have to pay back half the worth of my home which is a lot more than what I borrowed. Try Point loan instead, they have you pay back how much the worth of your home increases, not half of it. Because of the Corona Point was not able to help me. Of course after I get the loan from hometap Point called me. It is nice that you don't have to make payments but you have to be free and clear of them in 10 years or say goodbye to the home your grandfather built

    ...

  • author
    Tyler
    3 days ago
    Everything went well and the team…

    Everything went well and the team showed great attention to detail and they showed quick action.

    ...

  • author
    CYNTHIA V
    Oct 17, 2020
    All positive

    Seamless, easy experience

    ...

  • author
    Marlon
    Oct 17, 2020
    Good job

    I recommend hometap. They were professional and awesome.

    ...

HomeTap