Hometap gave Butch F. the access to his equity that traditional loans couldn’t.
During the 2008 recession, Butch and his wife were hit hard. Once they were out of work for over a year, the couple started using credit cards to fund day-to-day necessities, such as groceries, electricity, and other bills. However, they knew it wasn’t a sustainable financial strategy.
As responsible homeowners, Butch and his wife always made their monthly mortgage payments on time. They were never late with other monthly bills either, including their credit card and auto payments. However, when their steady income stopped with their jobs, their credit card debt increased faster than normal. “We knew we had to do something to pay off the debt,” said Butch, who was concerned that all the hard work he and his wife had put into achieving financial well-being could be so easily erased. “We knew if we weren’t able to get a loan, we’d have to sell our home to keep up and maintain that good financial standing.”
Butch initially looked to traditional lenders to secure a home equity loan. “We couldn’t qualify,” he said. “We had to start putting home repairs on our credit cards.” The necessary home renovations, including a new roof and a new heating and air system, added to the debt stress. “That’s when we started searching for alternatives and found Hometap.”
Already faced with enough stress from their debt, Butch and his wife appreciated the simple process of securing a Hometap Investment. “The process is similar to a regular home equity loan—appraisal, closing—and was very smooth. Just a few weeks later we got our cash!” With their Hometap Investment, Butch and his wife were able to pay off their credit card debt and still had cash left over to fix their driveway and yard, adding to their home’s curb appeal. “Our home’s value has already increased,” reported Butch. “And the projects are paid off in full.”
Beyond allowing Butch and his wife to tackle their immediate debt stressors and take the worry of debt away, Hometap was able to play into their long-term financial strategy and goals. “Max [at Hometap] answered every question, took us by the hand, and walked us through the process. It was a pleasure to talk with someone who was actually interested in helping us and who understood our goals.”
“Now we’re working toward being in a better financial place,” Butch explained. “So, in 10 years when the Hometap term is up, we’ll be able to refinance. We’re sitting here comfortably—not worried, living good.”