Hometap is a way for homeowners to be paid today for equity they’ve accumulated in their property - without getting a loan. We invest alongside homeowners, providing cash today and participating in the proceeds at the time of a sale.
Unlike a lender, we receive no monthly payments or guaranteed return on the money we’ve invested. For some, taking an equity investment can be an intelligent way to fund the opportunities and needs that come up in life while eliminating the “debt-stress” of increased monthly payments.
We invest in condos as well as single family homes, and evaluate every property independently. Take the fit quiz to find out if a Hometap Investment might a good fit for you.
Getting a Hometap Investment is done in a few simple steps:
1. Complete an Investment Inquiry
You’ll create an account and submit an Investment Inquiry through the Hometap website.
2. Speak with your Investment Manager
If we think an Investment might be possible, we will send you an Investment Estimate, which includes estimated terms specific to your property. Your Hometap Investment Manager will set up a call with you to walk through the numbers and answer any questions you may have about the Application process.
3. Submit your Application
Once you’ve uploaded or scanned your documents to your computer, grab a cup of coffee and get started – this Application shouldn’t take more than 20 minutes.
Before we can prepare the final Investment Details, you must schedule a physical appraisal of your property. Once the appraisal is complete and the Investment Details are finalized, we can sign the documents and begin the transfer of funds!
The term of a Hometap Investment is 10 years. You can either sell your house during the term or you can buy back our Investment with savings, or by taking out a home equity (or other) loan. We call this Settling the Investment.
Hometap has the potential to make money through the Hometap Share - the percentage of the home’s value we are entitled to receive when you sell your home, refinance, or buy us out by the end of the term. So, if your home value goes up we make more and if it goes down we make less.
We are an accomplished team of financial professionals, executives and entrepreneurs. We're homeowners with monthly bills and families to consider. We're renters chipping away at the 20% down payment. We are wary of the burden debt brings and believe there’s a better way to not just have the American Dream, but to live it. We don't believe we're for everyone but we do believe everyone should understand the Hometap option.
Like most things, this is partly us and partly you. Once you have your completed Application and schedule an appraisal (the “you” part), we can typically finalize the offer, structure the Investment, and close (the “us” part) in three weeks.
Everyone’s motives and methods around homeownership are personal - there are few “right” answers in life and ultimately it’s up to you to weigh your options and make the decision that best fits your needs.
However, if you know you want to stay in your house for more than 10 years, Hometap may not be the best option for you. Our Investments have a 10-year term, which means that we must Settle our Investment either through a sale of your home, refinancing, or through you buying back our Investment in your home within 10 years.
Provided that you take care of your house and pay your taxes, mortgage, and insurance - no. You do need to loop us in if you would like to sell your home, take on another investor or adjust your mortgage.
No. We don’t live in your house, tell you what wallpaper to choose, or come for holidays either. Unless you invite us. ;)
During the term of a Hometap Investment (10 years), you are responsible for maintaining your home, making timely mortgage, insurance, and property tax payments, as well as informing us if and when you plan to sell your home. During this time, you do not owe any payments to Hometap and the Investment does not accrue any interest.
No, we’re not involved in any renovation decisions and we don’t share in any of the home value attributable to renovations, as determined by an appraiser.
So, if you’re renovating to make your life better, excellent! If you’re renovating in the hopes of increasing the value of your home, just do your homework. Some renovations add more value than others; some don’t pay for themselves at all.
No. Assuming you are doing the things a responsible homeowner does (like paying your taxes, mortgage and insurance, and maintaining your home), we will not be popping by for a visit.
No problem – it’s totally up to you; just loop us in. Hometap will receive the Hometap share from the proceeds of the sale.
If you don’t want to sell your house during the term, you can Settle the Investment in the same way with savings or by taking out a home equity (or other) loan. Any settlement is based on the current market value of the home.
In exchange for our upfront cash investment, Hometap receives a share of the sale or market price of the home. If the value doesn’t go up and we make less, we make less. That’s the risk we take, and that’s for Hometap to worry about, not you.
That would be awful and we hope that never happens. If the property can be repaired and restored to its condition before the disaster, then great and that’s the plan. If it cannot be repaired and restored, Hometap will use an appraiser to determine the value of the property before the disaster and Hometap will receive the Hometap share from the insurance proceeds, in the same way as if you had sold the property.
You do not need permission from us to sell. When you decide to sell, you are responsible for notifying Hometap of the following:
While we will not tell you which offer to accept, the sale price must approximate or exceed the market value of the home. Like you, and unlike a bank, we are motivated to get top dollar for any house we have invested in.