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Hometap Equity Partners

in Shared Equity Agreements from Hometap

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Hometap Equity Partners

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in Shared Equity Agreements from Hometap

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Highlights
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Investment Range % 5% - 15%
Investment Range $ $15,000 - $300,000
Share of Home Appreciation 0%
Share of Home Value 5% - 25%
Shared Equity Use Case Equity Cash-Out

Hometap Equity Partners Review

Hometap Equity Partners is offered by Hometap, a financial services company founded in 2017 and based in Boston, MA. Hometap Equity Partners is available in 12 states across the USA.

How does the Hometap Equity Partners product work?

A shared equity agreement (also called a shared appreciation agreement or shared equity contract) is essentially a way to sell a small fraction of the equity in your home to an investment company.

As a home equity loan alternative, the Hometap Equity Partners product allows you to tap into the equity in your home without the monthly payments that come from a traditional home equity loan or line of credit. This product primarily targets the home-equity-rich who are in need of cash for reasons such as a home improvement project or to eliminate debt.

The transaction is secured like a loan but you won't be paying Hometap a monthly loan payment with interest. Instead, if your home goes up in value, Hometap share in the gain; if it goes down, they share in the loss.

How much will Hometap invest into a shared equity agreement?

The Hometap Equity Partners program offers equity investments that range from 5% up to 15% of a property's market value. As you might expect, Hometap has a cap on the amount of funding they will invest in a single home. For the Hometap Equity Partners program, the most Hometap can invest in a single home is $300,000.

While Hometap Equity Partners is not a loan product, the maximum "loan to value" rate is 75%. That means their investment in the property cannot exceed 75% of its market value. Let's say you own a property with a current market value of $100k, but you still owe $20k on your mortgage. Your equity would be $80k. In this scenario, if you have good credit, you may qualify for a shared equity investment of up to $55k.

Hometap Equity Partners Terms & Requirements
Investment Term Amount
Equity Investment Range 5% - 15%
Equity Investment Range $15000 - $300000
Maximum Equity Investment $300,000
Maximum Loan to Value Ratio 75%

What are the costs associated with Hometap Equity Partners?

Unlike loans, the costs associated with shared equity investments are not based on an interest rate. There are no monthly payments or accrued interest. Instead, Hometap shares in the change in value of your property. If your property value goes up, Hometap gets a share. If the value drops, Hometap shares in the losses. They only get their money back when you sell your home – and they typically only make a profit if you also make a profit.

At the time your home is sold -- or when the term of the investment is up -- Hometap will receive the agreed-upon percentage of the sale price or current appraised value, which can range from 5% up to 25%.

The Hometap Equity Partners program includes a closing fee that ranges from 1%, up to 5% of their investment. The Hometap Equity Partners program includes an origination fee equal to 3% of their investment.

Hometap Equity Partners Fees
Description
Closing Costs 1% - 5%
Share of Home Appreciation 0%
Share of Home Value 5% - 25%
Origination Fee (%) 3%

What are the terms for a shared equity investment via Hometap?

You can use the funds provided by Hometap Equity Partners for up to 10 years. After 10 years, you will need to either sell your home or buy them out.

To buy Hometap out, you would need to pay back their agreed-upon equity stake in your home, which is based on the total value of your home at the time of settlement.

How long does it take to close a deal with Hometap?

Hometap Equity Partners will typically fund a deal within 31 days.

What types of property does Hometap consider?

Shared equity investors often have restrictions on the type of properties they will invest in. Hometap Equity Partners will consider shared equity agreements secured by the following property types:

  • Primary home
  • Investment properties.
Pros & Cons of Hometap Equity Partners
Pros Cons
  • Investment properties are eligible for funding.
  • No interest or monthly payments.
  • No impact on your credit report.
  • Fund amounts of up to $300,000 available.
  • No payments to be made until you sell your home or settle the investment.
  • The entire application process takes as little as 10 minutes and can be completed 100% online.
  • Condos can also qualify.
  • A dedicated investment manager will walk you through the process.
  • Closing costs of up to 5%
  • Origination fees of up to 3%
  • Maximum contract term of 10 years.
  • It takes at least three weeks to fund a shared equity agreement with Hometap.
  • Will also invest in vacation homes.
  • SUPERMONEY Disclosure: SuperMoney.com is an independent, advertising-supported service. The owner of this website may be compensated in exchange for featured placement of certain sponsored products and services, or your clicking on links posted on this website. Read more...

    Contact

    • Headquarters
    •   800 Boylston St
      Suite 2906
      Boston, MA 02199
    •   Visit Site

    Message from Hometap

    Hometap is a smart new loan alternative for tapping into home equity without taking on debt. Homeowners receive debt-free cash by selling a percentage of the equity in their homes to Hometap. They can use the cash for anything, from paying off credit-card debt to starting a business to buying a second home. When the home sells or the homeowner settles the investment, Hometap is paid out an agreed-upon percentage of the sale price or current appraised value.

    Hours of Operation

    • Sunday Closed
    • Monday 8:00am - 5:00pm
    • Tuesday 8:00am - 5:00pm
    • Wednesday 8:00am - 5:00pm
    • Thursday 8:00am - 5:00pm
    • Friday 8:00am - 5:00pm
    • Saturday Closed

    About Hometap Equity Partners

    Availability

      Available in 12 states
    • Arizona
    • California
    • Florida
    • Maryland
    • Massachusetts
    • Michigan
    • Minnesota
    • New Jersey
    • New York
    • North Carolina
    • Oregon
    • Virginia

    Feature Breakdown

    Share of Home Value 5% - 25%
    Closing Costs 1% - 5%
    Origination Fee (%) 3%
    Credit Score Range 620 - 850
    Employment Statuses Considered
    • Employed Full-Time
    • Employed Part-Time
    • Other
    • Retired
    • Self-Employed
    • Unemployed
    Immigration Status Considered
    • U.S. Citizen
    • U.S. Permanent Resident
    Intended Use
    • Investment
    • Primary Home
    Maximum LTV 75%
    Military Status
    • Active Duty Military
    • Military Dependent
    • Non-Military
    • Veterans
    Minimum Age 18
    Supported Income Types
    • 1099 Misc. Income
    • Cash
    • Direct Deposit (W2, SSA, SSDI)
    • Payroll Check or Prepaid Card
    • Tax Returns
    Verification Documents Required
    • Government Issued Photo ID
    • Proof of Identity
    • Social Security Number
    • U.S. Tax Identification Number
    • Driver License (or other photo ID)
    • Proof of citizenship/residence (Green Card)
    Shared Equity Use Case Equity Cash-Out
    Funding Time Range 24 - 31 days
    Investment Range % 5% - 15%
    Investment Range $ $15,000 - $300,000

    Hometap Equity Partners Community Reviews

     

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