Hometap is a way for Homeowners to be paid today for equity they’ve accumulated in their property - without getting a loan or selling their house. We invest in select homes and homeowners with an upfront payment and are paid out of the proceeds when the house is sold or refinanced, which must happen within the term, 10 years after the investment date.
Unlike a lender, we are not guaranteed a return on our investment. No interest rate, no monthly payments. Instead, we get one payment - based purely on the market value of the home - when you sell, refinance or use savings to pay out your Hometap investment.
We invest in condos as well as single family homes and evaluate every property independently. Take the fit quiz to find out if Hometap might be a good fit for you!
When you apply, we’ll ask for some information about yourself and your home along with supporting documentation so that we can prepare an initial offer. Once we’re agreed, your work is about done. We’ll take care of any required third party documentation, work with you to schedule the appraisal and in-home closing while we prepare the contracts. From start to funding, the process can happen in as little as 3 weeks.
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 on our investment through an increase in value of our investment percentage (the share we initially fund) and our investor return (the additional percentage we are owed), both of which are paid out at the time you sell or buy back our investment in your house. Both are also a percentage of the home prices, so if home prices go up we make more and if they go down we make less.
An appraiser provides an objective assessment of the market value of your home. There’s no he said, she said. We have a list of professional appraisers in your area and you are certainly free to choose the one you’d like to work with.
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.
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. ;)
You are responsible for continuing to maintain your home, make timely mortgage, insurance and property tax payments as well as informing us if and when you plan to sell your house. Please email us at firstname.lastname@example.org to learn about your rights and obligations.
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 problem—it’s totally up to you, just loop us in.
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.
During the closing, your primary mortgage (if you have one) will get paid off followed by Hometap’s investment share. All remaining proceeds go to the homeowner. Hometap’s policy is to cap our return in the cases of extreme appreciation.