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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

SuperMoney Net Recommendation Score +43

SUPERMONEY NET RECOMMENDATION SCORE

This product is mostly recommended by SuperMoney users with a score of +43, equating to 3.9 on a 5 point rating scale.

+43

Recommendation score measures the loyalty between a provider and a consumer. It's at +100 if everybody recommends the provider, and at -100 when no one recommends.

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2 users don't recommend
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Highlights
Community Rating Mostly recommended
Shared Equity Use Case Equity Cash-Out
Investment Range $ $15,000 - $400,000
Investment Range % 5% - 15%
Number of Reviews 7

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 15 states across the USA.

Key Takeaways
  • 10-year term. The investment has a contract term of 10 years, at which time you'll need to settle up with Hometap. You can do so by paying them in cash, getting cash-out refinancing, selling your home, or partnering with Hometap for another term.
  • Share of the home's future value. Hometap Equity Partners 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 Equity Partners is currently available in 15 states.
  • Fair credit accepted. If you have a credit score of 620 or higher, you may qualify for a shared equity agreement with Hometap Equity Partners.
Hometap Equity Partners Pros & Cons
Pros Cons
  • 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.
  • Vacation homes and condos can also qualify.
  • A dedicated investment manager will walk you through the process.
  • Allows for a loan-to-value ratio of up to 75%, which is high compared to other shared equity investors.
  • Large investment amounts available.
  • A minimum of 21 days to process funds.
Hometap Equity Partners FAQ

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 is especially useful for those that have significant home equity available and are looking for a flexible way to access cash for uses 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 will 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 $400,000.

While Hometap Equity Partners is not a loan product, the maximum "loan to value" rate is 75%. That means their investment in the property plus any existing mortgage balance 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 $60k on your mortgage. Your equity would be $40k. In this scenario, you may qualify for a shared equity investment of up to $15k. The math being $75k (or 75% loan to value of $100k) - $60k (existing loan) = $15k.

Hometap Equity Partners Terms & Requirements
Investment Term Amount
Equity Investment Range 5% - 15%
Equity Investment Range $15,000 - $400,000
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 get their money back when you sell your home or the contract term ends – 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%
Origination Fee (%) 3%
Share of Home Appreciation 0%
Share of Home Value 5% - 25%

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 return the investment, sell, refinance, or try to partner with Hometap for another term. Once the contract term ends you can return the remaining investment, sell, refinance, or partner with Hometap for another term.

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
  • Secondary homes and vacation properties.
  • Investment properties.
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Message From Hometap Equity Partners

Hometap was created to make homeownership more accessible and less stressful, because its founders believe that you should be able to have a house and a life. So we created an alternative to loans that allows responsible homeowners to tap into the future value of their home in order to access their equity today. Because Hometap isn’t a lender, there are no monthly payments and no interest. Receive cash in as little as three weeks to fund… whatever you want.

Contact

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 15 states
  • Arizona
  • California
  • Florida
  • Massachusetts
  • Maryland
  • Michigan
  • Minnesota
  • North Carolina
  • New Jersey
  • New York
  • Ohio
  • Oregon
  • Pennsylvania
  • Virginia
  • Washington

Feature Breakdown

Share of Home Value 5% - 25%
Closing Costs (%) 1% - 5%
Origination Fee (%) 3%
Credit Score Range 620 - 850
Employment Statuses Considered
  • Other
  • Employed Full-Time
  • Employed Part-Time
  • Self-Employed
  • Retired
  • Unemployed
Immigration Status Considered
  • U.S. Citizen
  • U.S. Permanent Resident
Intended Use
  • Primary Home
  • Secondary Home
  • Investment
Joint Loan Applications Accepted
  • Individual Applications
Maximum LTV 75%
Military Status
  • Active Duty Military
  • Non-Military
  • Veterans
  • Military Dependent
Minimum Age 18
Supported Income Types
  • Direct Deposit (W2, SSA, SSDI)
  • Cash
  • Payroll Check or Prepaid Card
  • 1099 Misc. Income
  • Tax Returns
Verification Documents Required
  • Driver License (or other photo ID)
  • Proof of citizenship/residence (Green Card)
  • Proof of Identity
  • Government Issued Photo ID
  • U.S. Tax Identification Number
  • Social Security Number
Shared Equity Use Case Equity Cash-Out
Funding Time Range 21 - 31 days
Investment Range % 5% - 15%
Investment Range $ $15,000 - $400,000

Hometap Equity Partners Community Reviews

 

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SUPERMONEY NET RECOMMENDATION SCORE

This product is mostly recommended by SuperMoney users with a score of +43, equating to 3.9 on a 5 point rating scale.

+43

Recommendation score measures the loyalty between a provider and a consumer. It's at +100 if everybody recommends the provider, and at -100 when no one recommends.

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