- A Hometap home equity investment gives you access to your equity in cash in exchange for a percentage of your home's future value — with no monthly payments for up to 10 years.
- Qualification is flexible: 585 minimum FICO, no income verification, and no debt-to-income requirements. Hometap evaluates each application and property independently.
- The "Hometap Share" uses tiered pricing that increases over time, incentivizing earlier settlement. A 20% annual rate-of-return cap limits the maximum repayment amount.
- The Home Equity Dashboard — available to all homeowners in all 50 states — provides home value tracking, renovation cost estimates, scenario planning, and personalized financial insights.
- Hometap currently operates in 16 states. Settlement options include home sale, refinancing, savings buyout, or taking a new loan.
What Is a Hometap Home Equity Investment?
A Hometap home equity investment gives you access to a portion of your home equity as cash in exchange for a percentage of your home's future value. You receive a lump sum up front with no monthly payments, and settle the investment within 10 years — either by selling your home, refinancing, using savings, or taking out a new loan.
Hometap is making an equity investment in your home. They share in the upside if the home appreciates, and they share in the downside if it doesn't. There are no monthly payments during the investment term, and the investment has no impact on your credit profile or debt-to-income ratio while it's active.
You can use the funds however you'd like — paying off existing obligations, funding a renovation, building a savings cushion, starting a small business, purchasing another home, or covering unexpected life expenses. There are no restrictions on how the funds are used.
Who Qualifies?
Because there are many factors that go into determining whether Hometap can make an investment, each application and property is evaluated independently. That said, their published criteria include:
Minimum credit score: 585 FICO. This is notably lower than what most traditional home equity products require (typically 680+).
Minimum equity: At least 25% equity in your home.
Investment limits: Up to 25% of your home's value (maximum 24.99%), with a minimum of $15,000 and a maximum of $600,000.
No income or DTI requirements: Hometap doesn't require income verification or debt-to-income ratio calculations. The investment also has no impact on your credit profile or DTI during the term.
Property types: Single-family homes, condominiums, multi-family properties (1–4 units), and manufactured homes that meet certain criteria.
Hometap currently operates in 16 states: Arizona, California, Florida, Indiana, Michigan, Minnesota, Missouri, Nevada, New Jersey, New York, Ohio, Oregon, Pennsylvania, South Carolina, Utah, and Virginia.
How Hometap's Pricing Works
Hometap operates using a "share of home value" pricing model. They provide you with a lump sum of cash in exchange for a stake in the future value of your home. At the end of the investment term — or when you decide to settle — you pay an agreed-upon percentage of your home's current market value.
The amount Hometap receives at settlement — called the "Hometap Share" — depends on two factors: your settlement timeline and whether your home's value has increased, decreased, or stayed the same. This tiered structure is designed to provide flexibility around settlement timing.
| Settlement Window | Hometap Share (10% equity accessed) |
|---|---|
| Years 0–3 | 15% |
| Years 4–6 | 17.8% |
| Years 7–10 | 20% |
The ratios scale proportionally. If you access 15% of your equity instead of 10%, the Hometap Share would be 22.5% in Years 0–3, 26.7% in Years 4–6, and 30% in Years 7–10.
If your home's value decreases, Hometap always applies the lowest pricing tier regardless of when you settle. So if you accessed 10% of your equity, their share stays at 15% even if you settle in Year 8. They share in the downside.
The Hometap Cap
A Hometap investment features a 20% annual rate of return cap that limits the maximum amount you'd pay at settlement. This cap is designed to protect your interest in your property by placing a ceiling on the maximum repayment amount when you settle, keeping more of your equity in your hands.
The cap is prorated to the actual settlement date, meaning it adjusts based on exactly how long you held the investment. It applies throughout the entire 10-year investment period.
Homeowners can see exactly how the Hometap Share is calculated under different settlement scenarios using Hometap's Pricing Calculator, which allows you to enter an estimated home value and adjust both the appreciation assumption and settlement date.
How a Home Equity Investment Compares to Other Options
A home equity investment is structured differently from traditional financing. Here's how it compares across key features:
| Feature | HEI | Home Equity Loan | HELOC | Cash-Out Refi | Reverse Mortgage |
|---|---|---|---|---|---|
| No monthly payments | ✓ | ✗ | ✗ | ✗ | ✓ |
| No DTI requirements | ✓ | ✗ | ✗ | ✗ | ✓ |
| No income requirements | ✓ | ✗ | ✗ | ✗ | ✓ |
| Age eligibility 18+ | ✓ | ✓ | ✓ | ✓ | ✗ |
| No impact on credit profile | ✓ | ✗ | ✗ | ✗ | ✓ |
The Process: From Estimate to Funding
Hometap's investment process follows five steps, with a dedicated Investment Manager as your single point of contact throughout.
Timelines vary by property complexity and homeowner turnaround time. Hometap does not guarantee a specific funding timeframe.
The Home Equity Dashboard
One of Hometap's distinguishing features is their Home Equity Dashboard — a digital platform available to all homeowners (not just Hometap customers) in all 50 states. It's designed to help you better manage, monitor, and take control of your largest financial asset — your home.
Regularly updated estimates of your home value, mortgage paydown, and equity — today and projected up to 10 years.
Forecast the average cost, value add, and return on investment for common home renovations in your area.
View and save multiple financial scenarios, including varying rates of home appreciation and equity access options.
Data-driven tips and recommendations customized to your home and financial situation, plus seasonal maintenance checklists.
The Dashboard also lets you compare different ways to access your home equity and understand the long-term cost of each option — helping you make more informed decisions about your home.
How to Settle
You have multiple options for settling your Hometap investment at or before the end of the 10-year term:
Sell your home — pay the Hometap Share from sale proceeds. The sale must be an arm's-length transaction at minimum 90% of fair market value.
Refinance — take out a new mortgage and use the proceeds to pay Hometap.
Buy out with savings — pay directly from your own funds based on your home's current appraised value.
Take a new loan — use a home equity loan, HELOC, or other financing to cover the settlement amount.
The tiered pricing structure means settling earlier results in a lower Hometap Share. If your home's value has decreased, Hometap always applies the lowest pricing tier regardless of when you settle.
Is Hometap Right for You?
Frequently Asked Questions
The Bottom Line
Hometap's home equity investment offers access to equity with no monthly payments, flexible qualification requirements (585 minimum FICO, no income verification, no DTI requirements), and a tiered pricing model that incentivizes earlier settlement. The 20% annual rate-of-return cap provides a cost ceiling, and the Home Equity Dashboard adds ongoing value beyond the investment itself.
Whether this product is the right fit depends on your specific financial situation, your timeline, and what you'd use the funds for. If you're in one of Hometap's 16 states and want to access equity without monthly payments and without affecting your DTI ratio, it's worth exploring.
Compare home equity investment providers to find the option that fits your situation.
