The Hometap Investment is going to improve our quality of life in a lot of different ways...we're able to keep our current home and probably rent it out, generating more income for us.
Steven Used His Home Equity to Purchase a New Property Without Selling
California homeowner Steven and his wife were hoping to use their hard-earned home equity to put a down payment on a new property — without having to sell their current one or take out a loan. After exploring their options, they found the perfect solution for their specific needs.
“Hometap really just allowed us to do that flawlessly,” Steven said.
Like many homeowners, he appreciated that a Hometap Investment didn’t have any monthly payments attached.
“Hometap really set itself apart from other financing options for us because it was going to give us access to our home equity without increasing any of our monthly payments. “
The Investment’s 10-year timeline also gave the couple plenty of time to plan for the future.
“It wasn't going to affect our debt-to-income ratio or our total debt — that was going to be evaluated when we bought our next home — and we had the 10 years to settle…with Hometap, so we have plenty of time to decide [whether] we want to rent our house out…or do we want to actually sell our house, and then use the proceeds to pay off the Hometap Investment?” Steven explained. “So it really felt like we have a lot of options with how we go about paying off the Investment and using the Investment as well.”
Steven also appreciated both the speed and straightforwardness of the experience, thanks in large part to his Investment Manager.
“[Zach] was just amazing. He was very transparent and helpful, even when there was a high demand for the Hometap Investments going on…he was upfront and candid about it and said, ‘We're still on track, it's just going to take a little bit of time.’ That communication and that openness really means a lot to me that can be difficult to find when you're working with real estate financing.”
Perhaps the best part was that Steven still received his funds in a fairly short time.
“What we really liked most about using Hometap was the speed at which we closed,” Steven said. “I think we closed in less than two months from when we very first started working with our [Investment Manager], Zach.
And the relatively fast funding meant that a more comfortable living situation for his whole family was closer at hand.
“We are in a smaller house right now, and we have multiple generations of our family that will be living with us,” Steven said. “My wife and I work from home, so we're very restricted in our space right now and we're kind of on top of each other a little bit, having to work in the living room and the bedroom, and this new home that we're going to purchase is really going to open things up. We're going to have dedicated workspaces. All of our children will have their own rooms, we’ll have space for grandparents to come and stay for long periods of time and and even move in with us if necessary. And it's just really going to open up a lot of things…for our family to grow and and just be more comfortable with our life.”
Overall, Steven and his wife are excited for the multiple positive changes that are ahead as a result of their Investment.
“The Hometap Investment is going to improve our quality of life in a lot of different ways. We were able to take out enough of our home equity…to consolidate some debt; to use a good chunk of it towards a down payment on our next home. And because of this Hometap Investment, we're able to keep our current home and probably rent it out, generating more income for us.”
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*Disclaimer: This homeowner was compensated for providing Hometap with an interview about his Investment experience