Hometap Now Offers its Home Equity Investment Service in Six States
Boston, Mass. – May 30, 2019 – Hometap, which provides a smart, new loan alternative for tapping into home equity without taking on debt, announced today that it is now operating in six U.S. states: originally launched in California, Hometap is now also available in Florida, Massachusetts, New York, North Carolina and Virginia, bringing its total reach to approximately 20 percent of U.S. homeowners, and growing. Hometap is in the process of launching in several more states by the end of the year, which will bring its reach to approximately 40 percent of U.S. homeowners in less than two years from launch.
Often homeowners want to tap into the equity in their homes for current, major expenses – examples include paying off credit card debt or other loans, funding home renovations, starting a business, paying for college, or buying a second home. But many homeowners don’t like the idea of taking on additional debt. Hometap makes investments in homes in exchange for a percentage of the future value of the home, providing homeowners debt-free cash with no monthly payments.
“Due to rising real estate values and stagnant wages, many American homeowners are house rich but cash poor,” said Hometap founder and CEO Jeffrey Glass. “Often, a significant amount of their net worth is tied up in their homes, and it’s hard for them to access it without selling. A home equity investment from Hometap is a great alternative for these people.”
One homeowner who turned to Hometap is Susan W. of Fairfield, California, who wanted to pay off some unexpected medical bills and credit card debt in order to live more comfortably in retirement. “I have owned my home for years and have a lot of equity in it,” said Susan. “Hometap enabled me to tap into the future value of my home to fund the financial needs I have today – without selling my home or taking on another monthly payment. When I looked at all the alternatives – things like refinancing and reverse mortgages – I felt Hometap was the smartest choice for my family.”
The Hometap process is simple:
- The homeowner fills out a request for an Investment Estimate online.
- Hometap then does some due diligence on the home and the homeowner.
- Eligible homeowners can have their money in as little as 2-3 weeks to use however they’d like.
- There are no debt payments during the effective period of the investment allowing homeowners to maintain or improve their monthly cash flow.
- Homeowners sell or settle the investment when they are ready – they have up to 10 years. At the end of that period, Hometap receives the previously agreed-upon percentage of either the selling price, or the appraised value (if the owner chooses not to sell).
According to the Pew Trusts, Americans’ debt levels are rising – they will spend $122 billion on credit-card interest in 2019, almost $10 billion more than they did in 2018. And, most families aren’t saving enough: 41 percent don’t have enough liquid assets to cover a $2,000 expense, much less a financial shock such as a lengthy illness or loss of job. “With so much home equity value sitting out there untouched, Hometap is a great alternative for homeowners looking to retire other debt, build a savings cushion, take advantage of business opportunities or diversify their wealth,” said Glass.
Hometap is a smart new loan alternative for tapping into home equity without taking on debt. Homeowners receive debt-free cash by selling a percentage of the equity in their homes to Hometap. They can use the cash for anything, from paying off credit-card debt to starting a business to buying a second home. When the home sells or the homeowner settles the investment, Hometap is paid out an agreed-upon percentage of the sales price or current appraised value. Learn more at https://www.hometap.com/.
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Hometap is made up of a collaborative team of underwriters, investment managers, financial analysts, and—most importantly—homeowners—in the home financing field that understand the challenges that come with owning a home.