Hometap Home Equity Investments Review
Hometap is a fintech company that was started in 2017 with the goal of making homeownership a lot more accessible and not as stressful. It brings a unique type of home equity investment product to the table that allows people to tap into the equity of their homes. They can do so without taking on extra debt, selling their home, or getting a loan.
You will effectively be exchanging a percentage of your home’s future value for cash. This Hometap home equity Investment review will look at all aspects of this offering so you can decide if it would work for your needs.
|Mortgage types||Home equity|
|Mortgage amount||$15,000- $600,000|
|Repayment terms||10-Year Effective Date, Hometap gets an agreed-on percentage of the home’s future value/sale price|
|Minimum credit score||500|
|Lender type||Direct lender|
Hometap Home Equity Investments: Pros
- Simple and straightforward process
- No monthly payments or interest charged
- Soft credit check to get an estimate
- No home inspections
- Caters to lower credit scores
Hometap Home Equity Investments: Cons
- Your home might go up in value significantly
- A forced sale might be a possibility if you don’t have the money to settle
The application process for tapping into your home equity through Hometap is very efficient. This can be done entirely online with minimal administrative overhead. Hometap ais to get the funds to the homeowner in as soon as three weeks.
Your first step in the application process will be to fill out an online investment estimate request. Hometap will then complete its due diligence on both the applicant and the home itself.
Usually, Hometap will deal with people who have at least 25% equity in their home and have a track record of making consistent mortgage payments. Once Hometap is happy with your application, you just have to fill out some final paperwork.
Hometap only accepts applications from people in certain states. This list is constantly growing, but people with homes in the following states are the only ones currently able to get financing from Hometap:
- New Jersey
- New York
- North Carolina
Terms & Requirements
Just like any type of home equity company, Hometap has some terms and requirements in place that you should be aware of before you proceed any further with an application.
Hometap generally caters to a wide-ranging audience, including people who might not qualify for traditional types of financing. However, there are some requirements in place. Hometap will usually only deal with applicants with at least 25% equity in their home and have a record of making insurance and mortgage payments on time.
It usually prefers homeowners to have a FICO score of more than 600, with the absolute minimum being 500. Hometap generally will provide funding sums of between $15,000 and $600,000. It also only deals with people in certain states. Finally, the max loan to value (LTV) that Hometap will deal with is 75%.
You are able to get cash of up to $600,000 from Hometap as a result of tapping into your home equity. This sees the homeowner exchange a percentage of the home’s future value.
There is no rule in place as to how you use the funds. Naturally, the homeowner will need to keep making their mortgage repayments, pay property taxes, keep the home in good condition, and keep paying homeowners insurance as part of the HomeTtap agreement.
You do not need to pay any interest or monthly payments if you use HomeTtap to tap into your home equity. However, there is a 3% servicing fee of the total investment amount in place. There is also a 10-year effective period for this type of home equity option.
When you settle this investment at that date or before it, Hometap gets a payout of the initially agreed percentage of the home’s current value or the sale price. There are no early settlement penalties in place. You are able to settle with Hometap through refinancing, a buyout, or selling the home.
Privacy & Security
Hometap currently has an A+ rating for the better Business Bureau, and it has a 4.8/5 rating from Trustpilot. HomeTap also ensures that it protects all sensitive data that people share, and it will never share your data with any third party.
There are extensive security protocols in place to ensure that the online application process is very secure. Overall, Hometap appears to be an above-board operation that caters to the needs of its customers.
During the course of your time working with Hometap, you will have a single point of contact who is a trained professional in the space. On the Hometap website, there is a lot of useful information regarding the process of tapping into your home equity.
You can learn how Hometap’s approach differs from other types of home equity loan companies. There is a comprehensive help center that answers many common questions. You can also get in touch with the Hometap team through live chat, by email, or over the phone.
Hometap is a great alternative to the usual types of home equity lenders you will come across. It offers a different kind of approach when you are looking to tap into the equity of your home. It is an ideal fit for people who do not want to be paying monthly repayments and are looking for a simple way to get some cash from your home equity.
800 Boylston St Fl 16
Boston, MA 02199-7637