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Hometap Review 2026: How a Home Equity Investment Works
Hometap is a home equity investment provider that gives homeowners cash today in exchange for a share of their home's future value. There are no monthly payments during the Investment term, and you settle the Investment at or before, with no prepayment penalty, the end of the 10-year term. Here's how it works, what it costs, and who it might be right for.
Monthly Payments
None
Investment Range
$15K–$600K
Min. FICO*
575
Term
Up to 10 yrs
*You could qualify with a 575 FICO score, among other criteria. Minimum 25% home equity.
Pre-qualify in minutes.
Hometap at a Glance
Highlights
- ✅ No monthly payments during the 10-year Investment term
- ✅ No income requirements to prequalify
- ✅ Flexible use of funds: pay down debt, renovate, fund a business, plan for retirement, and more
- ✅ Dedicated Investment Manager who guides you through the process
- ✅ Access your equity without refinancing or touching your mortgage rate
Things to Consider
- ⚠️ There is a cost: at settlement Hometap will calculate both the Hometap Share (based on your home's value) and the Hometap Cap (based on the length of the Investment). You pay whichever is less.
- ⚠️ The Investment is settled in full in one payment at or before, with no prepayment penalty, the end of the 10-year term
- ⚠️ Timelines vary by property and homeowner turnaround time. Use the cash for anything you'd like.
- ⚠️ Currently available in 26 states
- ⚠️ Requires at least 25% equity in your home
What Is a Hometap Home Equity Investment?
A Hometap home equity investment (HEI) gives you access to your equity in cash in exchange for a share of your home's future value. It is not a home equity loan or a HELOC: unlike those products, there is no monthly payment during the 10-year Investment term.
Instead, at or before, with no prepayment penalty, the end of the 10-year term, you settle the Investment by paying Hometap its agreed-upon share of your home's value, through a refinance, a buyout with savings, a loan, or the sale of your home.
Founded in 2017 and based in Boston, Hometap has helped over 25,000 homeowners across the U.S. access their home equity. Hometap also offers the Home Equity Dashboard, a digital platform available in all 50 states that helps homeowners monitor their home value and equity.
How the Hometap Process Works (Step by Step)
Request an estimate
Find out if you pre-qualify in a matter of minutes. Hometap typically looks for homeowners with at least 25% equity who have been consistent with mortgage, tax, and insurance payments.
Fill out an application
If it's a mutual fit and you decide to move forward, you complete a quick online application.
Review your Investment Offer
Following a due diligence process, if approved, your dedicated Investment Manager walks you through your Investment Offer. Once you align on the specifics, a signing is scheduled.
Receive your funds
Hometap wires the funds. Timelines vary by property and homeowner turnaround time. Use the cash for anything you'd like.
Settle the Investment
At or before, with no prepayment penalty, the end of the 10-year term, you settle by paying the agreed-upon percentage of your home's sale price or current appraised value, via refinance, savings, loan, or home sale.
How Hometap Pricing Works
Hometap uses a share-of-home-value model with a simple "X-for-Y" structure: you receive a lump sum equal to a set percentage of your current home value, in exchange for an agreed-upon share of your home's future value (the Hometap Share).
The amount Hometap receives at settlement, called the Hometap Share, depends on your settlement timeline and your home's value at settlement. For example, a homeowner who accesses 10% of their home value might have a Hometap Percentage of 16.5% for years 0–5 and 18% for years 6–10. Percentages vary by homeowner, state, and investment amount.
The Hometap Cap limits what you pay: you'll never pay more than an 18.5% annual rate (compounded monthly, or lower if required by state law) on the cash you received. The Cap can benefit you if you settle early or if your home value rises sharply in a short period.
Settlement Examples: What Would You Pay?
Example: $50,000 Investment on a $500,000 home (10% of home value), using a Hometap Percentage of 16.5% (years 0–5) and 18% (years 6–10).
Settle in year 5, home value stays at $500,000
- • Hometap Share: 16.5% × $500,000 = $82,500
- • Hometap Cap at 5 years: about $125,200 (not reached)
- • Cost of the funding: $32,500
Settle in year 8, home appreciates 3% per year (≈ $633,400)
- • Hometap Share: 18% × $633,400 ≈ $114,000
- • Hometap Cap at 8 years: about $217,200 (not reached)
- • Cost of the funding: ≈ $64,000
Settle in year 8, home value declines to $450,000
- • Hometap Share: 18% × $450,000 = $81,000
- • Cost of the funding: $31,000
- • Because the Hometap Share is a percentage of value, it decreases if your home value falls
Hometap's own example: settle in year 2, home appreciates 3.25% per year (≈ $533,000, California pricing)
- • Hometap Percentage (California example): 15% × $533,028 ≈ $79,950
- • Hometap Cap applies: settlement limited to $72,183
- • Cost of the funding: $22,183
Examples are illustrative only and rounded. Your Hometap Percentage, fees, and settlement amount will depend on your home, location, investment amount, and settlement date. Use Hometap's pricing calculator and review your Investment Offer for your actual terms.
See If You Prequalify →Hometap vs HELOC vs Home Equity Loan
| Feature | Hometap HEI | HELOC | Home Equity Loan |
|---|---|---|---|
| Monthly payments | None during the term | Yes | Yes |
| Cost structure | Hometap Share of home value at settlement (limited by the Hometap Cap) | Variable interest rate | Fixed interest rate |
| Income / DTI requirements | None | Yes | Yes |
| Min. credit score | 575, among other criteria | Varies by lender | Varies by lender |
| Amount | $15,000–$600,000 | Based on combined loan-to-value | Based on combined loan-to-value |
| How it ends | Settled in one payment within 10 years | Draw period, then repayment period | Fixed repayment schedule |
Each option has different costs and trade-offs. Compare them against your goals, timeline, and budget to make an informed decision.
See How Much Equity You Could Access
Pre-qualify in minutes and see a personalized estimate. No monthly payments during the Investment term.
Check If You Prequalify →Who Might Hometap Be Right For?
Might Be a Good Fit For
- ✅ Homeowners who want access to equity without adding a monthly payment
- ✅ Homeowners with at least 25% equity in an eligible property
- ✅ Homeowners who plan to sell, refinance, or buy out the Investment within 10 years
- ✅ Employed homeowners, as well as retirees, looking to preserve cash flow
- ✅ Homeowners who want flexibility in how they use the funds
Consider Before Applying
- 🔎 How long you plan to stay in your home and how you'll settle the Investment
- 🔎 How your local market may appreciate over the term
- 🔎 Whether a monthly-payment option fits your budget better
- 🔎 The full terms, fees, and settlement estimate in your Investment Offer
Hometap Eligibility, States & Property Types
Requirements
- • You could qualify with a 575 FICO score, among other criteria
- • Minimum 25% equity in your home
- • Investment amounts from $15,000 to $600,000
- • Homeowners age 18+
Property Types
- • Single-family homes
- • Condominiums
- • Vacation and rental properties
- • Multi-family properties (1–4 units)
- • Manufactured homes (that meet certain criteria)
Eligible States (26)
Alabama, Arizona, California, Delaware, Florida, Georgia, Idaho, Indiana, Kentucky, Michigan, Missouri, Montana, Nebraska, Nevada, New Jersey, New Mexico, New York, North Carolina, Ohio, Oregon, Pennsylvania, South Carolina, Tennessee, Utah, Virginia, Wisconsin
How Homeowners Use Hometap Funds
Frequently Asked Questions
How does Hometap work?
Hometap gives you cash in exchange for a share of your home's future value. There are no monthly payments during the Investment term. At or before, with no prepayment penalty, the end of the 10-year term, you settle the Investment through a refinance, a buyout with savings, a loan, or the sale of your home.
How much does Hometap cost?
At settlement you pay the Hometap Share: your agreed-upon Hometap Percentage multiplied by your home's value at that time. The Hometap Cap limits the Hometap Share to an 18.5% annual rate, compounded monthly (or lower if required by state law), on the amount you received. Your actual cost depends on your home's value and when you settle.
What are Hometap's requirements?
You could qualify with a 575 FICO score, among other criteria. You need at least 25% equity in an eligible property located in one of Hometap's 26 active states. There are no income requirements.
Which states is Hometap available in?
Hometap is currently available in Alabama, Arizona, California, Delaware, Florida, Georgia, Idaho, Indiana, Kentucky, Michigan, Missouri, Montana, Nebraska, Nevada, New Jersey, New Mexico, New York, North Carolina, Ohio, Oregon, Pennsylvania, South Carolina, Tennessee, Utah, Virginia, and Wisconsin.
How long does it take to get funds?
Homeowners could receive funds in as little as 30 to 45 days. Timelines vary depending on property complexity and homeowner turnaround time.
Does Hometap affect my mortgage rate?
No. A Hometap Investment lets you access your equity without refinancing, so your current mortgage rate stays the same.
Ready to Explore Your Home Equity?
See if you pre-qualify for a Hometap Investment and get a personalized estimate. No monthly payments during the 10-year Investment term.
See If You Prequalify →Pre-qualify in minutes
Hometap is a home equity investment provider, not a lender. A Hometap Investment is not a home equity loan or HELOC. The Investment must be settled at or before the end of the 10-year term, and the settlement amount depends on your home's future value. Hometap Homeownership Solutions, LLC dba Hometap. NMLS ID# 2819930. 361 Newbury St, Office 450, Boston, MA 02115.
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Mortgage-Info Editorial Team
Editorial & Research Team
Our editorial team reviews home equity products — including home equity investments, HELOCs, and reverse mortgages — using primary sources and provider-published terms, and helps homeowners compare their options to make informed decisions.