Hometap Now Making Home Equity Investments in Twelve States
July 15, 2020
Boston, Mass. – July 15, 2020 – Hometap, which provides a smart, new loan alternative for tapping into home equity without taking on debt, announced today that it is now investing in twelve U.S. states: Arizona, California, Florida, Massachusetts, Maryland, Michigan, Minnesota, New Jersey, New York, North Carolina, Oregon, Virginia. The company has doubled its state count since December 2019, bringing its total reach to approximately 57% percent of U.S. homeowners.
Unlike a lender, Hometap makes investments in homes in exchange for a percentage of the future value of the property, providing homeowners debt-free cash today with no interest or monthly payments. Homeowners can use the cash to accomplish their financial goals or fund significant expenses – from paying off credit card debt or building their dream kitchen to funding their small business or providing some financial security during uncertain times.
“Hometap has proven to be a very attractive alternative financing solution during this turbulent time,” said Jeffrey Glass, CEO of Hometap. “I’m thankful that we’ve been able to not only help homeowners during this time, but also expand our geographic footprint and increase the number of properties across the United States in which we can invest.”
With the COVID-19 pandemic wreaking havoc on the U.S. economy these past few months, millions of people have lost some or all of their income. While stressful for all Americans, it’s taken an especially big toll on homeowners who still have monthly mortgage payments, are in need of home repairs, are struggling to keep their businesses afloat, or have other high ticket expenses that just can’t be put on hold. Meanwhile, many traditional lenders have tightened standards or restricted offerings altogether, including cash out refinances and home equity lines of credit (HELOCs).
One homeowner who turned to Hometap after evaluating several conventional home equity loans, HELOCS, and other home equity investors is Michelle M. from Cambria, California, who wanted to pay off credit card debt and improve her monthly cash flow during retirement. “The Hometap process was by the far the most customer-friendly, efficient, and straight forward process I’d ever been involved with,” said Michelle. “I was simply amazed at how quick the turnaround was, even in the middle of a pandemic. I’m now able to get my finances in order and have a cushion in a high-yield savings account, which is a huge comfort in these volatile times.”
According to Black Knight, Americans had $6.2 trillion in “tappable equity” during the fourth quarter of 2019. The average amount of available equity was $119,000 during that quarter. And during the first quarter of 2020, one in four American homeowners were considered “equity-rich”, according to ATTOM Data Solutions. “Although the U.S. has become increasingly house rich and cash poor, the options for accessing that equity have become increasingly limited as a result of the coronavirus pandemic,” said Glass. “During this unprecedented time in history, Hometap has worked very hard to keep our operations running smoothly, while expanding into multiple new states across the U.S. and continuing to execute on our mission of making homeownership less stressful and more accessible.”
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 sale price or current appraised value. Learn more at https://www.hometap.com/.