Hometap Review

Hometap Review Review

Hometap Review is offered by Hometap Equity Partners, LLC, a financial services company founded in 2017 and based in Boston, MA. Hometap Review is available in 13 states across the USA.

Key Takeaways

• Fair credit accepted. If you have a credit score of 620 or higher, you may qualify for a shared equity agreement with Hometap Review.
• Large investments available. Hometap Review will invest up to $600,000 in a home, which is more than what most shared equity companies offer.
• 10-year term. The investment has a contract term of 10 years, at which time you'll need to settle up with Hometap Equity Partners, LLC. You can do so by paying them in cash, getting cash-out refinancing, selling your home, or partnering with Hometap Equity Partners, LLC for another term.
• Share of the home's future value. Hometap Review gets paid a 5% to 25% share of the home's value when the contract ends. The specific percentage is based on how much cash you receive up front.
• Cash-out only. Existing homeowners can access up to 15% of their property's value without taking on debt. Funds can be used for anything, from paying off debt, renovating or retirement.
• Only available in select states. Hometap Review is currently available in 13 states.

Hometap Review Pros & Cons

Hometap Review FAQ

How does the Hometap Review product work?

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

The Hometap Review 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 is designed for homeowners who need cash for reasons such as home improvement project or to eliminate debt.

Hometap Review will have a lien on the property (just like a mortgage does), but since it's not a loan you won't be paying Hometap Review interest or a monthly payment. Instead Hometap Review gets paid a share of your home's value when the contract ends, which typically occurs when you decide to sell your home or buy Hometap Review out. For example, Hometap Review might provide you with a cash investment today equal to 10% of your home's current value in exchange for 16% of your home's future value when you sell.

How much will Hometap Equity Partners, LLC invest into a shared equity agreement?

The Hometap Review program offers equity investments that range from 5% up to 15% of a property's market value. As you might expect, Hometap Equity Partners, LLC has a cap on the amount of funding they will invest in a single home. The most Hometap Equity Partners, LLC can invest in a single home is $600,000.

While Hometap Review is not a loan product, the maximum "loan to value" percentage is 75%. That means the value of their investment in the property plus any existing mortgage balance cannot exceed 75% of its market value.

What are the costs associated with Hometap Review?

Unlike loans, the cost associated with an Hometap Equity Partners, LLC investment is not based on an interest rate. There are no monthly payments or accrued interest. Instead, Hometap Equity Partners, LLC shares in the future value of your property and typically only receives a return on its investment when you sell your home or decide to buy Hometap Equity Partners, LLC out. The percentage of your home’s value that Hometap Equity Partners, LLC shares when the contract ends is larger than the percentage of Hometap Equity Partners, LLC's investment in your home. Therefore, Hometap Equity Partners, LLC will make a profit if your home’s value does not change. If your home’s value increases, Hometap Equity Partners, LLC will make a larger profit. If the value drops, Hometap Equity Partners, LLC will make a smaller profit, or might incur a loss.

What are the terms for a shared equity investment via Hometap Equity Partners, LLC?

You can use the funds provided by Hometap Review for up to 10 years. After 10 years, you will need to settle up with Hometap Equity Partners, LLC, either by selling the home or buying Hometap Equity Partners, LLC out. You can finance a buyout with your cash, refinancing your mortgage, or by partnering with Hometap Equity Partners, LLC for another term.

The amount payable to Hometap Equity Partners, LLC when you settle up equals their agreed-upon percentage share of your home's value at the time of settlement.

How long does it take to close a deal with Hometap Equity Partners, LLC?

Hometap Review will typically fund a deal within 31 days.

What types of property does Hometap Equity Partners, LLC consider?

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

• Primary home
• Secondary homes and vacation properties.
• Investment properties.