Hometap Review 2025 (Pros and Cons) Access Home Equity

Did you know American homeowners have over $30 billion in real estate equity? 

If you’re a homeowner and want to tap into this abundance of equity, then allow me to introduce Hometap. 

This home equity sharing company gives you money upfront for an investment in your home’s future value.

Continue reading for my full Hometap review explaining how this alternative equity service works, the pros and cons, and much more!

What is Hometap?

Hometap is a financial services company that allows homeowners to access equity without taking out a loan.

In place of giving homeowners a loan to tap into their home equity, Hometap offers them a home equity investment. 

Just like home equity sharing or home equity agreements (HEAs), members won’t have to worry about monthly payments or hefty interest rates. 

Hometap can pay up to 25% of a home’s value in cash, or a maximum of $600,000. 

Homeowners get up to 10 years to settle the investment agreement. The agreement is usually settled when the homeowner sells their home; the homeowner also has the option of buying out of their Hometap agreement. 

Here’s a quick video explaining how it works:

Hometap Fees

With Hometap, you should expect to pay 3.5% of the investment, appraisal fee, and title charges, as well as government recording and transfer fees. Appraisals are $299-$1,000+ and depend on the property and eligibility for virtual. Virtual appraisals are $299, and in-person appraisals can range up to $1,000, depending on property size and uniqueness. Fees are deducted from the total investment amount, ensuring that homeowners do not have any out of pocket expenses.

How Does Hometap Work?

Are you thinking about tapping into home equity to renovate your home or pay off debt? 

Awesome! 

Here’s how Hometap works:

Step 1 – Check Eligibility  

Before applying, you’ll want to visit Hometap’s website to check to see if you’re living in an eligible state. 

Currently, Hometap only invests in properties that are located in:

• Arizona
• California
• Florida
• Michigan
• Minnesota
• Nevada
• New York
• New Jersey
• North Carolina
• Ohio
• Oregon
• Pennsylvania
• South Carolina
• Utah
• Virginia
• Washington

If you don’t live in these states, check out these alternative ways to get equity out of your home. 

In addition to location, homeowners must also meet these requirements to use Hometap:

• Own a single-family home or Condo/apartment, Multi-family home (1-4 units), Manufactured home
• Have a minimum credit score of 500
• Have a minimum 25% equity in their home
• Looking for access up to 25% of their home’s current value or up to $600,000

Step 2 – Request an Estimate

In a matter of minutes, homeowners can request an estimate to find out if they qualify for a Hometap investment. 

During this step, homeowners will have to provide basic information such as their full name, street address, and Social Security Number (SSN).

From here, Hometap will give the homeowner an investment estimate, which is the amount of money they are willing to invest in the home.

After receiving an estimate, the homeowner will be able to speak to a dedicated investment manager who’ll answer questions and walk them through the entire process.

Step 3 – Apply

If the homeowner is happy with the agreement offer, then it’s time to formally apply. 

Homeowners can apply directly through Hometap’s website. At this time, Hometap will reach out to a third-party appraisal agency to estimate the home’s current value. 

Keep in mind the appraisal costs are the responsibility of the homeowner. 

Step 4 – Sign and Close

Once the third-party appraisal is complete, Hometap will send an official investment offer. 

If your home’s value goes up or stays the same, it pays to settle your investment faster. If your home’s value goes down, Hometap’s share remains at 15%, no matter when you pay.

The homeowner should thoroughly review the proposal and contact their assigned investment manager if they have questions. 

If the homeowner accepts Hometap’s offer, they’ll schedule a signing. This is when the homeowner will pay the 3.5% closing fees. 

Step 5 – Receive Funds

With Hometap, the homeowner can expect to receive their funds within days after closing. 

From here, the homeowner can use the money however they want!

The only obligations are that the homeowner maintains the property, makes mortgage payments on time, pays property tax, and maintains insurance coverage. 

Step 6 – Settle with Hometap

When or before the 10-year investment term is over, the homeowner must settle with Hometap.

Typically, homeowners will settle an investment through a cash payment, refinancing or selling the home.

Buyouts can be done through refinancing or with savings. 

Hometap Vs. Home Equity Loan

Hometap is an equity-sharing company, meaning it invests in home equity. 

Unlike a home equity loan, there are no monthly payments with Hometap. 

So, if the value of your home increases, Hometap makes money. And if your home loses value, Hometap will take a loss. 

Home equity loans are like traditional personal loans, but they use your home as collateral. 

However, it’s quite risky because if you cannot pay your loan, the lender will use your home to recoup any losses.

Regardless of if your home’s value changes, you’re still on the hook to pay the principal plus interest.

Both options give homeowners an upfront lump sum, but they differ in how that money is paid back. 

Hometap Vs. Home Equity Line of Credit (HELOC) 

Hometap is a home equity investment company. It buys equity in your home, and you pay them a share once you sell or settle. 

At this time, Hometap receives money depending on how your property appreciated or depreciated.

A home equity line of credit (HELOC) is a line of credit that uses your home as collateral. 

So instead of receiving a lump sum, you can spend as much or as little credit as you want (depending on the limit you’re approved for). 

In addition, HELOCs require homeowners to pay back the principal plus interest, regardless of whether their home went up or down in value.

Is Hometap Legit?

Hometap is a legit home equity investing company. It has been accredited by the Better Business Bureau (BBB) since 2019 and maintains an A- rating.

Hometap also has over 2,000 customer reviews on Trustpilot, with an average rating of 4.9 stars. 

When doing research for my Hometap review, I noticed that many customers liked how their investment manager walked them through the entire process with little to no hiccups.

Is Hometap Safe?

Hometap is a safe home equity company that has been operating since 2017.  

They prioritize customer data safety and do not share personal information without prior consent. 

Hometap also only accepts homeowners who already have a minimum of 25% equity in their homes. This shows that they don’t encourage homeowners to overextend themselves.

Pros and Cons of Hometap

Pros	Cons
It’s an equity investment, meaning Hometap only makes money if the property increases in value	If you cannot buy Hometap out at the end of the term, then you must sell your home
No Monthly payments	Term length only goes up to 10 years
Dedicated investment manager included	3.5% investment fee and appraisal costs taken from total Investment amount with no out-of-pocket expenses

Hometap Reviews

I read through hundreds of customer reviews on Trustpilot, Reddit, and the BBB when researching Hometap. 

The majority of comments were positive, with customers mentioning the ease of signing up and transparent terms.

For example, in this Hometap review by member James Smith, he talked about how his account manager made everything easy to understand and helped with submitting documents.

Hometap customer Cynthia also left a positive Hometap review mentioning how her sales rep was there to answer all of her questions.

A Reddit user, Timtruth, had a positive experience with Hometap. In their Hometap review, they said that they used the cash to pay off debt.

Although, not every customer had a seamless experience. For instance, this user ran into several processing delays.

Another Hometap review talked about how Hometap didn’t stick to the five-week schedule. Instead, the entire process took three months.

Is Hometap Worth It?

By now, you may be wondering, “Is Hometap worth it?” 

The answer is, “it depends.”

Hometap is an awesome alternative way to tap into home equity. Plus, you won’t have to make monthly installments and can settle the investment before or at the 10-year term. 

So, if you’re already planning to sell your home within the next ten years, and need access to cash now, then Hometap could be worth it for you. 

But, since many homeowners use the equity in their home to build wealth, you want to be very careful when opting for a financial strategy that involves giving up that equity. 

Again, it all depends on your unique financial situation and goals. 

Commonly Asked Questions About Hometap

What are Alternatives to Hometap?

Unlock and Unison are excellent alternatives to Hometap. Unlock and Unison are available in different states, so they could be fantastic options for homeowners not located in Arizona, California, Florida, Michigan, Minnesota, Nevada, New York, New Jersey, North Carolina, Ohio, Oregon, Pennsylvania, South Carolina, Utah, Virginia or Washington, where Hometap is available.

You can also check out our Unlock review and our Unison review for more details.

Is Using Hometap a Good Idea?

If you’re looking for an alternative way to access home equity, then Hometap could be a good idea. Hometap is a debt-free option. However, you must settle or sell your home before or once the 10-year term ends. 

How Much Interest Does Hometap Charge?

Unlike home equity loans or home equity lines of credit (HELOCs), Hometap doesn’t charge interest. Instead, Hometap makes money when your home appreciates in value. Since Hometap is an investor and not a typical lender, it’ll also lose money if your home depreciates. 

What Credit Score is Needed for Hometap?

Hometap requires homeowners to have a credit score of at least 500. However, Hometap says that most of their clients have a credit score of 600 and above, so I recommend aiming for a 600 score or more to give yourself the best chance of approval.

Need help improving your credit score? Learn how the best credit repair companies can help.

How Does Hometap Get Paid?

The homeowner pays Hometap a share of the appreciation value when they settle or sell their home. Hometap gets paid before or once the 10-year term ends. At this time, Hometap makes money depending on how the property value appreciated. This also means if your home loses value, Hometap will take a loss.

What Percentage Does Hometap Take?

With Hometap, whether your home’s value goes up or stays the same, it pays to settle your investment faster. If your home’s value goes down, Hometap’s share remains at 15%, no matter when you pay.