Hometap Review: Why It’s LendEDU’s Highest-Rated Home Equity Investment Company of 2026

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Our take: Hometap is LendEDU’s highest-rated home equity investment company thanks to its high borrowing amounts, easy-to-understand repayment terms, and consumer protections, such as the Hometap Cap and renovation adjustments.

Home Equity Investment (HEI)

• High borrowing amounts of up to $600,000
• Lower credit score requirements than traditional home equity loans
• Easy process with virtual appraisal
• No upfront out-of-pocket costs
• No monthly payments
• Assigned a dedicated Investment Manager during the term
• Caps on Hometap’s share if home value increases significantly
• Renovation adjustment on renovations of $25K or more

• Only available in 16 states + D.C.
• Higher credit score requirements than other HEIs
• High potential costs at the end of the term

Repayment amount	15% – 30% share of home’s future value
Funding amount	$15,000 – $600,000
Term length	10 years
Min. credit score requirement	600

Table of Contents

1. What is Hometap?
   1. Where is Hometap available?
2. How does Hometap work?
   1. Eligibility requirements
   2. Use cases
   3. Pricing
   4. Repayment (the Hometap Share)
      1. Example
      2. The Hometap Cap
      3. Renovation adjustments
3. Hometap pros and cons
   1. Advantages
   2. Drawbacks
4. Is Hometap legit?
   1. Customer reviews
5. Hometap vs. other home equity investment companies
   1. Hometap vs. Unlock
   2. Hometap vs. Point
   3. Hometap vs. Aspire
6. How to apply
7. Hometap review recap: The best home equity investment option
8. Hometap FAQ
9. How we rated Hometap

What is Hometap?

Hometap is a home equity investment (HEI) company founded in 2017. Headquartered in Boston, Massachusetts, Hometap offers an alternative way for homeowners to tap into the equity they’ve built in their homes, without taking out a traditional home equity loan or home equity line of credit (HELOC).

Instead, Hometap offers a lump sum of cash (the investment amount) in exchange for a percentage of your home’s future value. That initial investment is based on how much your house is worth and the equity you’ve amassed in that home. You can spend that money as you see fit, without the burden of monthly payments.

At the end of 10 years (or sooner if you choose to end the term or sell the house), you must repay the investment. The repayment is a percentage of the home’s value at the end of the term, whether the house has increased or decreased in value.

Where is Hometap available?

Because Hometap is a relatively nascent financial technology company with a product that is also much newer than more traditional home equity loans and HELOCs, it’s not yet available nationwide. As of now, Hometap is available in 16 states and our nation’s capital.

How does Hometap work?

Hometap’s home equity investment product can seem confusing at first, but the product is quite straightforward once you look more closely—and despite the potential for a high payment at the end of the term, many homeowners benefit from borrowing against their equity without immediately committing to monthly payments.

Here’s a closer look at how Hometap works:

Eligibility requirements

Hometap isn’t available for everybody. In addition to state restrictions mentioned above, Hometap has its own eligibility requirements, including credit score and property type.

Detail	Requirements
Property type	Single-family homes, condos, vacation and rental properties, multi-family homes (1 to 4 unit), manufactured home
Min. credit score	600
Min. equity required	25%
Investment amount	$15,000 – $600,000

Because Hometap offers a home equity investment, not a traditional installment loan with monthly payments, the company does not have any income requirements or maximum debt-to-income ratio (DTI) requirements.

Use cases

Much like a home equity loan or personal loan, which have flexible use cases, you can use the money from a Hometap HEI for a wide range of expenses, from vacations to cars to education.

Here are some examples of how you can spend the lump-sum payment from Hometap:

• Debt consolidation
• Moving expenses
• Home renovations and repairs
• Medical bills
• Education costs
• Weddings, adoptions, and fertility treatments
• Cars, boats, and RVs
• Small business start-up and ongoing costs
• Investments and retirement planning

Pricing

While you don’t have to pay Hometap its share of your home’s value until the term ends (more on that next), there are some upfront costs, all of which are deducted from the investment amount. That means you don’t pay anything out of pocket upfront, but it’s worth noting because these costs affect how much you receive.

Here are the costs you can expect to have deducted from your investment amount:

Fee	Amount	Details
Processing	4.5% of the investment amount, up to $20,000	This is the only fee that goes directly to Hometap; it serves as an origination fee
Appraisal	$299 (virtual) $500 – $1,000 in-person	The appraisal determines the value of your home, from which Hometap can calculate your equity and the investment amount for which you qualify
Closing	$895 (except in Pennsylvania, where there are no closing fees)	Attorney and notary costs, closing fees, and property report production
Title insurance	$30 – $3,075	This varies by state and investment amount and protects Hometap against ownership disputes, unpaid taxes, liens, etc.
Government recording and transfer charges	$370 – $1,000	This varies by county and includes filing fees

Repayment (the Hometap Share)

Of course, the biggest expense comes much later, when the term of your agreement ends, and repayment is due. The repayment is calculated using Hometap’s share of home value model. The amount you must pay is called “the Hometap Share.”

The share of home value model simply means that, in exchange for a lump-sum investment now, Hometap will own a stake of your home’s future value. The percentage of your home’s value that Hometap gets depends on:

• The length of the agreement, up to 10 years
• The percentage of equity you accessed
• Whether your home appreciated in value or depreciated in value. 

To be clear, all agreements start out as 10-year agreements, but you are free to pay Hometap back early (to potentially save money) using a loan or savings, using a cash-out refinance on your mortgage, or by selling your home.

The table below breaks down what percentage of your home’s value Hometap gets, depending on when the agreement is terminated and if you access 10% or 20% of your home’s equity, as examples:

If you accessed 10% of your home’s equity, your home value increases, and…
You terminate the agreement in…	Hometap’s share is…
Years 0 to 3	15%
Years 4 to 6	17.8%
Years 7 to 10	20%
If you accessed 20% of your home’s equity, your home value increases, and…
You terminate the agreement in…	Hometap’s share is…
Years 0 to 3	22.5%
Years 4 to 6	26.7%
Years 7 to 10	30%
If your home value decreases, Hometap’s share is 15%.

What does this mean in practice? Here is a hypothetical real-life example to help you understand how your home’s value and predicted appreciation can impact how much you can get upfront and how much you’ll owe at the end.

Example

Say your home is worth $500,000 when you start, and you take out a home equity investment of $50,000 (10% of your home value at the time of investment). 

Your home’s value goes up by 2% each year. Here’s how the numbers would change based on when you settle the investment:

	3 years	6 years	10 years
Home value	$530,604	$563,081	$609,497
Your share	$451,013	$462,965	$487,598
Your percentage	85%	82.2%	80%
Hometap’s share	$79,591	$100,116	$121,899
Hometap’s percentage	15%	17.8%	20%

But what if things don’t go as planned, and your home’s value drops by 5% during your investment term? Hometap gets 15% of your home’s value regardless of the settlement timeframe.

The Hometap Cap

As part of the Hometap share of value model, Hometap caps its share (called the “Hometap Cap”) to protect you in the event that the value of your home skyrockets. This cap limits Hometap’s share to an annualized 20% rate of return on the investment amount.

The Hometap Cap means you’ll pay the lesser of either the Hometap share or the capped share (the annualized 20% rate of return).

Here’s when this cap might come into play in our example of a home originally worth $500,000 and a homeowner receiving a $50,000 investment from Hometap:

Scenario	Home’s value	Your share	Hometap’s share (capped)
Settle in 1 year with a 2% value increase	$510,000	$450,000	$60,000 (20% return on $50,000)
Settle in 1 year with  5% value decrease	$475,000	$415,000	$60,000 (20% return on $50,000)

In the above examples, even if your home’s value increases by 2% or loses value by 5% and you settle in just one year, Hometap’s share is capped at $60,000. This offers a layer of clarity and control to the investment, allowing you to better predict the potential outcomes.

Renovation adjustments

Hometap also offers renovation adjustments for qualified renovations of $25,000 or more. This means that if you finance any large-scale renovations that meaningfully increase your home’s value, Hometap won’t include that value increase when calculating its share of the home’s final value at the end of the agreement.

In addition, Hometap has no special conditions regarding home maintenance throughout your term. And, inspections by Hometap are not standard practice. 

Hometap pros and cons

Hometap offers some notable advantages over other home equity investment companies and traditional home equity loans, but there are some drawbacks to consider as well.

Pros	Cons
Higher borrowing amounts	Limited availability
Lower credit score requirements than traditional home equity loans	Higher credit score requirements than other HEIs
Easy process with virtual appraisal	High potential costs at the end of the term
No upfront out-of-pocket costs
No monthly payments

Advantages

• Higher borrowing amounts: With Hometap, you can access up to $600,000. Competitors such as Point and Unlock max out at $500,000; Aspire tops out at $250,000.
• Lower credit score requirements than traditional home equity loans: Though home equity loan credit score requirements vary by lender, they’re usually between 620 and 680. HELOCs typically require 700+ scores. Hometap accepts scores as low as 600.
• Easy process with virtual appraisal: Applying for Hometap HEI is a straightforward process that you can easily do online. You may even be able to schedule a virtual appraisal, rather than coordinate an in-person walkthrough of your home.
• No upfront out-of-pocket costs: All upfront fees are deducted from the investment amount you receive. While Hometap’s origination fee is lower than Unlock’s, it’s higher than Aspire’s and Point’s.
• No monthly payments: The appeal of Hometap, and other home equity agreement companies like it, is that you don’t have to budget for monthly payments. Instead, you pay a lump sum at the end of the investment term.

Drawbacks

• Limited availability: As of now, Hometap is only available in 16 states and Washington, D.C.
• Higher credit score requirements than other HEIs: Some of Hometap’s competitors, like Unlock and Point, have lower minimum credit score requirements (a 500 minimum credit score vs. Hometap’s 600).
• High potential costs at the end of the term: Because there are no monthly payments or partial buyout payments like Unlock offers, you’ll potentially owe a large chunk of change at the end of the agreement. If you don’t have the cash on hand, you could be forced to sell your home or get a cash-out refinance to cover the costs.

Is Hometap legit?

Hometap is a legitimate company that holds real estate brokerage licenses across several states. It’s accredited with the Better Business Bureau (BBB), where it has a B rating.

Customer reviews

Hometap is a relatively new company; customers who signed a home equity investment agreement in Hometap’s first year (2017) haven’t even reached their 10-year terms yet, though they have been free to terminate the agreement at any point during the term.

That said, Hometap does have a fair share of customer reviews online, as shown below.

Source	Overall rating	# of reviews
Trustpilot	4.8/5	6,142
Better Business Bureau	4.5/5	119
Google	4.2/5	356

The overall consensus from these sources points to Hometap as a reputable company, with strong marks for customer service and ease of process. 

Online complaints seem to center around customer service, billing, product, and other categories. In addition, the Massachusetts Attorney General filed a suit against Hometap in early 2025, claiming its HEIs put consumers at a higher risk of losing their homes.

Hometap vs. other home equity investment companies

Hometap is the best home equity investment company, per our ratings. Overall, Hometap offers a better product with more transparent pricing than competitors. Other options to consider include Unlock, Point, and Aspire.

Hometap vs. Unlock

We deem Unlock the best home equity agreement company for partial payments because it allows homeowners to make partial buyout payments during the 10-year term. However, Unlock has higher upfront fees and a lower funding amount.

Here’s more detail on how Hometap and Unlock stack up:

Hometap vs. Point

Point allows much longer terms than Hometap and other home equity investment companies. You can choose up to 30 years for your repayment, but keep in mind: This can make it far more expensive when all is said and done.

Here’s how Hometap and Point compare:

Hometap vs. Aspire

Aspire doesn’t make our top-HEI list. However, its model is based on your home’s change in value, not the full property value at the end of the agreement, which can keep costs in line. Still, it requires a higher credit score and offers much lower funding amounts than Hometap.

Here’s how Hometap and Aspire look side-by-side:

How to apply

To apply for a Hometap home equity investment, you’ll:

• Prequalify online: Review all the terms and conditions to ensure the product is the right fit for you. If you want to move forward, create an account and request an estimate online. You’ll get a response in less than two minutes.

• Talk through the details: Assuming your home is a good fit, you’ll connect with an Investment Manager to talk through specifics.
• Apply online: If the conversation goes well, you’ll submit an application online. Hometap suggests it should take no more than 20 minutes.
• Schedule an appraisal: Depending on your home, you may be able to do a virtual appraisal, though some require an in-person appraisal. Hometap will use this information to determine the borrowing amount for which you qualify.
• Sign and receive the funds: If you agree to the terms, conditions, and borrowing amount, sign the investment agreement and receive your funds via wire transfer in a matter of days.

What if I’m denied a home equity investment from Hometap?

As we’ve seen, Hometap isn’t the only home equity agreement company. If you don’t qualify with Hometap, see if you can qualify with a competitor such as Unlock or Point.

If no home equity investment company is a good fit, you aren’t out of options. Here are some other ways to get financing for flexible spending:

• Home equity loans: If you’re set on a lump-sum amount of money, backed by the equity you’ve amassed in your home, apply for a traditional home equity loan. These are the best home equity loans available.
• Home equity lines of credit: If you’d like more flexibility with when and how much you borrow, consider a home equity line of credit (HELOC). These are the best HELOCs available.
• Personal loan: Unsecured personal loans have higher interest rates than loans backed by your home, but you can still use them for almost anything.

Hometap review: The best home equity investment option for homeowners

Hometap is the best home equity investment option for homeowners. Hometap’s credit score and equity requirements are achievable, the application process is simple, and the borrowing amounts are generous. Just keep in mind, you could end up owing a lot of money at the end of the term, though Hometap’s annualized cap helps keep this in check.

Hometap FAQ

How long does it take to receive funds from Hometap?

After submitting an application with Hometap, the entire process can take three weeks or more to finalize. This includes the home market value determination, finalizing the offer, structuring the investment, and signing. 

Once all details are finalized and the signing is complete, the disbursement begins. You can typically expect to get funds within four to seven business days of signing the investment agreement.

Do you need to tell Hometap what the funds are used for?

No, Hometap does not require homeowners to specify what they’ll use funds for during the application process. The usage of the funds does not affect eligibility for a home equity investment with Hometap. 

The main concern for Hometap is the property’s value and the homeowner’s financial profile, rather than the intended use of the funds.

Are there any tax implications for using Hometap?

A home equity investment from Hometap does not have immediate tax implications when the equity is exchanged. Unlike traditional loans, where interest may be deductible, a home equity investment is an exchange of equity for cash and not considered taxable income. 

The impact when the investment is repaid can vary, and homeowners should consult with a tax professional to understand the specific tax implications for their situation.

What if I don’t have the funds to settle my investment at the end of my Hometap term?

If a homeowner doesn’t have the funds to settle the investment at the end of the Hometap term, they may need to consider options like selling the home, refinancing, or obtaining a loan. 

What happens if my home is damaged or destroyed during the term?

If the home is damaged or destroyed during the term of the investment, Hometap has specific procedures in place. If the property can be repaired and restored to its condition before the disaster using insurance funds or at the homeowner’s expense, that happens, and your agreement proceeds as usual.

However, if it cannot be repaired and restored, Hometap will use an appraiser to determine the value of the property before the disaster. Hometap will then take its share from the insurance proceeds, in the same way as if the property were sold. 

Homeowners should notify Hometap promptly and work with it and the insurance company to address the situation.

What happens if I die or become permanently disabled?

If the sole homeowner passes away, the obligation to settle the investment with Hometap flows to the estate, and the lien remains on the property. 

If there’s a second homeowner and one homeowner dies, the agreement remains unchanged, and there are no modifications to the terms with Hometap. 

It’s prudent for homeowners to consult with legal and financial experts to understand the full implications and to ensure proper planning for such circumstances.

How we rated Hometap

We designed LendEDU’s editorial rating system to help consumers identify companies that offer the best financial products. Our experts spend hours researching these companies to ensure our ratings are fresh and accurate.

Our most recent evaluation compared Hometap to several companies across several factors, including investment amounts, repayment terms, customer reviews, and fees. We weighted, scored, and combined each factor to produce a final editorial rating. This rating is expressed on a scale from 1 to 5, with 5 being the highest possible score. We round all ratings to the nearest tenth decimal place.