At a Glance
HomeTap offers homeowners an alternative to traditional reverse mortgages through its Home Equity Investment (HEI) solution. It allows access to equity without loans, interest, or monthly payments. With repayment deferred until the home is sold or 10 years pass, it's ideal for those needing liquidity while maintaining full ownership.
Key Figures
- Loan types: Home Equity Investment (Reverse Mortgage Alternative)
- Loan products: Equity-based investment (not a loan)
- Minimum credit score: 600+
- Repayment terms: Repay when home is sold, refinanced, or after 10 years
Pros & Cons
Pros
- No monthly payments
- Maintain full homeownership
- Cash for any financial need
- 10-year repayment flexibility
Cons
How it Works
- Online Estimate: Homeowners input basic property and financial info.
- Review & Apply: An offer estimate is generated. Applicants submit more detailed information.
- Appraisal & Offer: The home is appraised, and a formal offer is provided.
- Sign Agreement: If accepted, legal documents are signed.
- Funding: Funds are deposited typically within weeks.
- Ongoing Management: No payments due during the term. Repayment happens at sale/refinance or after 10 years.
Types of Loans
HomeTap does not offer traditional loans. Instead, its Home Equity Investment gives homeowners a cash payment in exchange for a share in their home’s future value. Unlike reverse mortgages, this model does not involve debt, interest, or monthly repayments.
Details:
- Max investment: 30% of home value or $600,000
- Eligibility: Minimum 25% equity and 600+ credit score
- Homeowners keep title and responsibilities
- Use of funds: Any purpose, no restrictions
Loan Features
- No monthly repayments: Offers complete payment deferral
- Maintain ownership: Homeowners retain title and control
- Cash use flexibility: Spend on renovations, debt, retirement
- Transparent terms: Fixed percentage share agreement
- Online dashboard: Track equity investment and details easily
Rates and Terms
There are no interest rates or monthly payments with HomeTap. Instead, repayment is a fixed share of the home's future value due when the homeowner sells, refinances, or reaches the 10-year mark. Homeowners can receive up to 30% of their home’s value, capped at $600,000. This shared equity model means returns for HomeTap depend on home appreciation, creating aligned incentives.
Summary
HomeTap provides a compelling reverse mortgage alternative for equity-rich, cash-strapped homeowners. With no loans, interest, or monthly payments, it grants immediate liquidity while allowing residents to stay in their homes. It fits those who value financial flexibility and ownership but aren't ready for traditional reverse mortgage routes. However, limited availability and appreciation-linked repayment are factors to weigh.
Contact Hometap
- Phone: (857) 777-4601 (Mon–Fri, 9am–6pm EST)
- Email: hello@hometap.com
- Address: 800 Boylston St, Suite 2900, Boston, MA 02199
- BBB Rating: A+
- Trustpilot Score: 4.5/5 from verified reviews
- Support: Available via phone, email, and online chat
Disclaimer: AI was used in the generation of this content, along with human verification.
