Most homeowners start looking at Hometap because they need cash and want a way to access it without taking on another monthly payment. Others look into it because they cannot qualify for traditional options like a HELOC or cash-out refinance.
This Hometap review breaks down how the agreement works in plain English, what you can expect to pay, the situations where Hometap can make sense, and the risks that deserve close attention.
Hometap provides cash upfront with no monthly payments, and the agreement must be settled within 10 years by selling your home or buying out Hometap’s share.
Hometap is best for homeowners who cannot qualify for a HELOC or cash-out refinance because of income, debt levels, or credit score and who have an immediate, essential use for the funds, such as necessary home repairs, paying off high-interest debt, or avoiding early withdrawals from retirement accounts. A clear plan to settle the agreement within 10 years is also important.
Traditional financing offers more predictable repayment costs. But when those options are not available and the funds will be used for a high-value purpose, Hometap can be a workable alternative.
- No monthly payment.
- Straightforward application process.
- Getting an offer doesn't affect your credit.
- Costs can add up, with a 20% annual cap on the investment amount to limit what you owe.
- There's a forced sale risk if you're unable to pay Hometap after 10 years.
Hometap Basics: How it Works
Hometap lets you access your home equity for cash without taking on a monthly loan payment. Instead of charging interest, the company provides a lump-sum investment today in exchange for a share of your home’s future value.
1. You receive cash upfront today
Hometap provides a lump-sum investment based on a percentage of your home’s current value. Investment amounts often fall near 10 percent of a home’s value, although eligible homeowners may access up to 25 percent.
The funds can be used for any purpose, and no monthly payments are required during the 10-year term.
The amount deposited into your account will be lower than the investment amount because certain costs are deducted at closing. Hometap charges a 4.5 percent processing fee, based on the amount invested. For example, if Hometap invests $50,000, the fee is $2,250.
Standard real estate closing costs are also deducted. These third-party charges may include the appraisal, title insurance, recording fees, and a closing or escrow fee. Costs vary by state and property, but they often total between $1,500 and $3,000.
Together, these deductions reduce the amount of cash you receive. In a scenario where Hometap invests $50,000, most homeowners typically receive $45,000 to $47,000 after fees and closing costs. All costs are deducted from the investment amount, so there are no out-of-pocket payments at signing.
2. Hometap receives a larger percentage later
When you settle the investment, Hometap receives a percentage of your home’s market value at that time. The percentage you owe is always larger than the percentage you received upfront. This is the foundation of Hometap’s pricing model.
The home’s value at settlement is determined through an independent, third-party appraisal or valuation, not by Hometap.
If a homeowner accesses 10 percent of their home’s value today, Hometap’s share at settlement follows a tiered structure:
- 15% if you settle in years 0–3
- 17.8% if you settle in years 4–6
- 20% if you settle in years 7–10
- 15% if your home value decreases, regardless of when you settle
These percentages scale proportionally if you access more than 10 percent of your home’s value. For instance, accessing 15 percent of your equity would lead to a 22.5 percent share in years 0–3, and so on.
3. You have up to 10 years to settle
A Hometap investment must be settled within 10 years.
You can settle at any point during that period without penalties. Settlement can be done in several ways: selling your home, refinancing through a new loan, or using personal funds.
If you choose to settle early, the process is the same. There are no additional charges for repaying the investment before the end of the term.
If you do not settle the HEI by the end of the term, Hometap may enforce its contractual rights under the agreement, which can include initiating a sale process to recover what it is owed.
Hometap Cost Examples Using Moderate Appreciation
To show how a Hometap investment can play out in real life, the following examples use the company’s “Moderate Appreciation” setting, which assumes an annual home appreciation rate of roughly 3.9 percent.
For these scenarios, assume a homeowner with a $500,000 property receives a $50,000 Hometap investment (10% of the home’s current value). After Hometap’s fee and standard closing costs are deducted, the homeowner ends up with $46,000 in cash.
From there, the amount owed depends on the home’s value at settlement and the length of time the investment remains outstanding.
Hometap Example: Year 2
After two years of moderate appreciation, the projected home value increases to $539,864. Under Hometap’s pricing structure, settling in the first three years requires paying 15 percent of the home’s value at that time, or about $81,000.
In this scenario, the Hometap Cap applies. The cap limits the amount owed to what would equal a 20 percent annualized return on the original investment. As a result, the projected payoff is $72,000 instead of the full percentage amount.
Compared with the $46,000 received upfront, the effective annualized cost is roughly 24 percent.
Hometap Example: Year 5
At year five, the projected home value rises to $605,699. The applicable Hometap share for a settlement in years four through six is 17.8 percent, resulting in an amount owed of $107,693.
Relative to $46,000 in proceeds, this is equivalent to an effective annual cost of about 18.7 percent.
Hometap Example: Year 10
By year ten, moderate appreciation brings the projected home value to $733,742. The Hometap share for settlements in years seven through ten is 20 percent, leading to a projected payoff of $146,748.
Measured against $46,000 received upfront, this equates to an effective annual cost of roughly 12.8 percent.
Hometap vs. Home Equity Loan vs. HELOC
To put Hometap’s pricing in context, it helps to compare it with a traditional home equity loan.
While this is not a perfect apples-to-apples comparison — a home equity loan requires monthly payments while Hometap does not — it does illustrate how the effective cost differs between the two approaches.
Using the same $500,000 home example:
A homeowner who qualifies for a $50,000 home equity loan at an 8 percent fixed interest rate on a 10-year term would see:
- Loan amount: $50,000
- Interest rate: 8 percent
- Monthly payment: $606.64
- Total paid over 10 years: $72,796.80
By contrast, under Hometap’s moderate appreciation scenario, the projected amount owed after 10 years is $146,748 — an effective annualized cost of about 12.8 percent when measured against the $46,000 the homeowner actually receives after fees.
For many homeowners who consider Hometap, the key issue is eligibility. A home equity loan or HELOC may not be available due to income, credit score, or debt-to-income constraints. In those situations, a home equity investment becomes one of the few ways to access liquidity without selling the home — but the trade-off is a higher effective cost tied directly to future home value.
How Hometap Handles Home Renovations
Hometap doesn’t share in any home value changes directly attributable to renovations.
That means if your home value increases by $25,000 or more due to renovations, you can request a renovation adjustment from Hometap to exclude that amount from the settlement calculation
To do this, you’ll need to get a new property appraisal. You’ll also need to hold onto receipts associated with (and photographs of) the renovations, among other requirements.
Let’s look at an example…
Say you have a $500,000 home and get $50,000 from Hometap. Due to market forces, your home appreciates to $609,497 over 10 years. Additionally, you renovate your kitchen, which adds another $50,000 to your home’s value, bringing the market value of your home to $659,497.
You would then request a renovation adjustment from Hometap at the time of settlement, provide the necessary evidence, and get your property appraised.
Your $50,000 renovation appreciation would be excluded from the final calculation, so Hometap’s share is based on $609,497, not $659,497.
Note that your renovations will not be excluded from the agreement if they do not add at least $25,000 in additional value.
Application Process and Eligibility
The process for getting cash from Hometap is fairly straightforward.
First, you request an estimate to see if you pre-qualify. They’ll ask for some information about you and your property. This part can take a few minutes.
Hometap will then prepare an investment estimate using your information. You’ll also gain access to a dedicated investment manager to help you throughout the entire process.
If you like the terms Hometap provides, you’ll fill out a short online application. After that, Hometap orders an appraisal of your home and uses the appraised value to put together your final offer.
Accept the offer, schedule the closing, close on the deal, and Hometap wires your funds to your bank account within a few days.
To qualify, your property must be a single-family home, condominium, or a multi-family home with 1–4 units, located in a state where Hometap operates.
Hometap is available in the following states as of November 2025.
- Arizona
- California
- Florida
- Michigan
- Minnesota
- Nevada
- New York
- New Jersey
- North Carolina
- Ohio
- Pennsylvania
- South Carolina
- Utah
- Virginia
Hometap requires a minimum 600 credit score.
How Much Cash You Can Get
Hometap can invest up to 25% of your home’s value, with a maximum dollar figure of $600,000.
To determine your home’s value, Hometap sends a third-party appraisal company to your home. Upon settling the investment, Hometap sends another appraiser to determine the final value.
By using third-party appraisers both times, Hometap minimizes the potential conflict of interest of under-appraising the property to claim more appreciation.
Hometap Pros and Cons
Let’s look at the highlights and drawbacks of Hometap.
Hometap Pros
- No monthly payment. You receive cash without constricting your budget.
- Straightforward process. The application takes under 10 minutes, and you can receive funding in as little as two weeks.
- 600 credit score requirement. This is much lower than traditional options.
- No upfront credit impact. Pre-qualification does not involve a hard inquiry, though one may be performed following a successful application submission.
Hometap Cons
- 10-year limit. This is shorter than some alternative companies.
- Forced sale risk. If you can’t pay back the invested amount when the term is up, you could be forced to sell your home.
- Increased payout from your home’s appreciation. If your home substantially increases in value, the cost can still be significant relative to how much you received upfront, though Hometap caps the amount owed at a pro-rated 20% annual return on the investment amount.
- Availability. Not available in all states.
Learn more about these and other considerations in our guide to the pros and cons of home equity sharing agreements.
Hometap Competitors and Alternatives
Hometap has three main competitors.
- Point. Point offers much longer terms of 30 years (which could be positive or negative depending on how you use your funds), with servicing fees ranging from 3% to 5%. You can access up to $600,000, depending on your home’s value and your equity. For a deeper dive, check out our detailed comparison of Hometap vs. Point.
- Unlock. Has 10 year (max) terms with a low (500) minimum credit score. Unlock is the only company we’ve reviewed that allows for partial buyback of your agreement prior to the end of the term. For a deeper dive, check out our detailed comparison of Hometap vs. Unlock.
- Aspire. Aspire offers 15-year agreements. It also sets rate caps that limit your effective annual cost to 12% if you exit within three years and 18% over the lifetime of the contract. Aspire requires a higher minimum credit score of 660 and limits funding to 15% of your home’s value, with a maximum of $250,000. The transaction fee is lower than Hometap’s at 3%, but Aspire is currently available in just 10 states.
- Splitero. Offers agreements that align with the length of your mortgage — anywhere from 10 to 30 years. Splitero allows homeowners to access up to $500,000 with a minimum credit score of 500. Its annualized return is capped at 19.99%, which is higher than Aspire’s or Hometap’s structure, but still provides a defined worst-case cost. Splitero charges a 4.99% origination fee, plus third-party closing costs, and is available in a smaller set of states.
Learn more in our roundup of the best home equity investment companies.
Key Questions About Hometap
You’ll pay the agreed-upon percentage of your home’s value at the time of settlement. If your home’s value decreases, Hometap shares in the loss, reducing the amount owed accordingly, though the final payment can still exceed the initial investment amount.
Hometap’s investments are designed to be tax-deferred, so pending an unusual circumstance, you won’t owe taxes as a result of receiving an investment.
You’re still responsible for paying back the full amount of money you owe Hometap.
If you’re the sole homeowner, the obligation to Hometap passes to your estate and the lien stays on your property. If there’s a second homeowner, such as your spouse, the agreement doesn’t change.
If you get divorced following a Hometap Investment, the investment remains in place and the terms are unchanged. If you seek to transfer ownership of the home prior to settling your investment, you have to work with the company to coordinate on any such transfer of ownership.
My Hometap Analysis and Final Thoughts
Home equity share agreements are a very new way of using your home equity to obtain cash.
Two thoughts I have are:
- Using a home equity-sharing company like Hometap can seem attractive because it doesn’t require monthly payments. However, as covered above, even with modest home appreciation of only 2% per year, the overall cost of a home equity agreement like Hometap is significantly higher than a home equity loan with an 8% interest rate. If you can qualify for a home equity loan, it’s generally a much more cost-effective option in the long run despite the burden of monthly payments.
- Your mortgage is the one bill that always gets paid monthly, no matter what. This is why, for most households, their primary residence is their largest asset. So, if you give up an equity stake in your home, what’s your alternative plan to save money over the long term? Is it a 401(k)? An IRA? An HSA?
Overall, home equity agreements are not the cheapest way to receive a large upfront payment today.
Yet, they offer a means to access needed funds for homeowners who may not qualify for traditional loans due to credit issues or other financial constraints. When considering alternatives like carrying significant credit card debt into retirement, bankruptcy, or losing your home, home equity agreements become more viable options.
But if i have too much debt and can’t secure a HELOC OR Home Equity Loan to raise enough cash to pay off the debt(credit ~650, DTE ratio too high)what other option beside Home Equity Sharing is there?
Unfortunately, most of the more attractive lending options are off the table. Hard to say without knowing your goals/situation but always goes back to cashflow. Consider any and all options for improving your income/expenses without the use of debt. Potentially, in a few months, you could get to a place where better lending terms open up.
What happens if both owners die in the time frame of the contract in a equity share agreement. How does that work with and equity share company.
Most often, debt is recouped from your estate when you pass. So, your heirs can either continue making payments as usual. If payments are not made, the home would then be foreclosed upon.
Do you have to sell your home in 10 yrs, isn’t it possible to do a loan mod that paid off hometap and keep your home?
Nope. You don’t need to sell your home, just repay Hometap. Most common way would be refinance the primary mortgage to pay them off.
would I have to pay income taxes on a hometap investment loan?
No. See FAQ:
Hometap’s investments are designed to be tax-deferred, so pending an unusual circumstance, you won’t owe taxes as a result of receiving an investment.
The impact of a Hometap investment on your taxes in connection with a settlement of the investment and/or a sale of your home will depend upon your specific facts and circumstances.
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Does that answer your question?
can I pay off hometap earlier than 10 years? Lets say in 5 years, will they calculate repayment value based on appraisal at 5 year?
Hi CP.
That’s correct. It’s whatever your home is appraised at at the time of payoff, whether that’s two years or ten years.
I need some clarification on the math please. If my home is worth 325k and Hometap gives me 30% that is 97k and the fees come out for appraisal ,title filing instead of out of pocket correct ? If I sell or refinance and my house and new value is 375k ….home tap would receive 30% of 375k which is 112,500k. Is this their total ? The initial 97k + their profit of 15k ? trying to understand breakdown .Some of these companies give a percentage ( ex:10% current value of 325k = 32,500 ) but take a higher amount ( 16 % of new value 375k = 60k) which is almost 50% more of initial investment, very confusing and if they are almost doubling their investment that is not worth it to me. Just wish these companies would be clear and transparent with this information.Thanks!
Hi DM,
Good questions.
The fees come out of the $97,000 you’d receive, not paid separately out of pocket. So, you’d pay an estimated $2,910 in upfront costs, e.g. only get $94,090
Hometap then takes a percentage of the total home value at the time you close down your agreement. You only know this number, however, once you’ve gone through the application process. This means you may get all the way through underwriting to not be happy with this agreed upon amount. Agree, that I wish these things were simpler and more clear.
What kinds of things are on the application? Will they want bank statements and other documents a traditional line of credit would?
Yes, it’s going to be similar to applying for a home equity line/HELOC with the required paperwork.
What happens if I decide to move from the home I have the Hometap agreement for? Does the agreement simply stay in place? It may be a possibility that I would not stay here forever, but would like the option to rent my home out and move at some point. Thanks so much for what you do, your help is fantastic.
Hi Renee,
If you decide to move prior to 10 years, Hometap will receive its share at closing, similar to how you’d pay off a second lien during closing.
Great Article. I found that after receiving final approval and after reading the terms of closing documents, in order for home tap to protect their small investment in my property, I would have to give up a lot of my majority owner rights. In exchange for the 15% value that we are being given, in 10 yrs we are giving them 20-27%. of our home value. In addition, we have to get approvals from home tap to make renovations or add new liens or loans secured by the property and if you default on your mortgage or insurance, you have 30 days to cure it or else they have cause to take hold of your property. I have discovered a lot of cons in the closing documents that are. making me reconsider doing it. In theory, it seems like a good idea, but not at the cost of me giving up my owner rights.
This is good info! I haven’t closed my deal with Hometap yet, either, but I’d love to see a response to this question you posted!
Yes this is what I don’t like. It’s one thing to give up some equity, but giving up owner rights also, and if u default on ur mortgage they have the right to sell the house? That’s my business how and when to make sure they get paid back by the deadline. So what I couldn’t apply for assistance or loan modification with my mortgage servicer before they’re making me sell it? I’d rather just sell it now and take the full equity myself
Your analysis doesn’t show the real costs and makes this seem more attractive than it really is. Hometaps ownership is many points higher than the percentage of loan to home value and ratchets up from 3.3% to over 13% in extra ownership of the home.
Using their own calculator;
On a 5% loan, hometap owns 8.3% of you home value (3.3% premium)
On a 6% loan, hometap owns 10% of you home value (4% premium)
On a 7% loan, hometap owns 11.6 of you home value (4.6% premium)
On a 10% loan, hometap owns 16.7% of you home value (6.7% premium)
On a 20% loan, hometap owns 33% of you home value (13.3% premium)
This yields vastly different final costs than your example to the point of al most misleading.
This actual costs in your example of a $100,000 home, $20,000 loan, appreciating to $130,000 are 59% higher than you show. (Hometaps ownership is $41,166 vs $26,000 your show)
While this may still be a viable loan option for people, more realistic final costs should be provided, unless the intent is merely to advertise for hometap.
Thanks, William.
We did the math before your comment by using a simplified example that didn’t include fees while mentioning these fees later in the article. In hindsight, that was the wrong way to approach it. We updated the article to include calculations of fees upfront, so as not to steer anyone in the wrong direction.
Good comment and thank you!
Is the term “Vacation Home” apply to any secondary home including rentals?
Hi Ricard,
When we originally published this draft Hometap only did primary residence.
They will now do primary residences, vacation homes, rental properties, multi-family homes and condos.
How is this better than a Reverse Mortgage? It appears there are alot of upfront costs for appraisals plural, closing costs, title company fees, etc. How do those get paid?
Reverse mortgages typically pay you a monthly “income” instead of an upfront sum. This structure makes them more popular with retirees who need to supplement their monthly income.
In home equity sharing, you’re getting an upfront sum with no monthly payments going forward, yet the “bill” comes due at the end when you sell or refinance. This structure makes them more popular for those turned down by traditional banks for financing.
One isn’t necessarily better than the other. Comes down to your goals and options.
Hope that helps!
My wife and I are considering this to finish off some big projects on out home, before we sell in 3 years and move. Is this worth borrowing 15k for a 150k home to finish these projects if our home only increases in value 10k or so?
If I understand your questions correctly, it’s not worth borrowing $15K and paying associated fees with HomeTap for only increasing your home’s value by $10K.
Did you mean the opposite? Borrowing $10K for a potential $15K appreciation?
I just went through the process with Hometap and ended up switching to Unlock before closing. There are a few misunderstandings here, also some good information. Hometap’s share on a 12% investment in your home is 24% of the total appraised home value at the end of the agreement when you buy them out. That’s a hefty chunk to fork over, however if you compare to payments and interest on a HELOC or cash-out refi over the same time period, the HEA is often only slightly more total. The obvious benefit is it’s easy to qualify for and no payments. Unlock is slightly less expensive at 22%, plus it allows partial buy-outs. And if you can afford to buy them out in the first three years, it’s not a bad deal. Terms are a little better at Unlock, customer service is a little better at Hometap. Neither look at income and bank statements were not requested for me. They do look at credit score and it may impact final terms, but it’s much more lenient than conventional equity loans. Ending vs. starting appraisals have a big impact. If you don’t have regular monthly income and a great credit score it’s a reasonable option. It’s also not reported to credit bureaus which may also be a benefit.
Appreciate your insights, Diana. Thanks for sharing your experience.
Hi, R.J.
I’m working with Hometap right now, and before I sign, are there any incidents of repayments going bad? My aunt is a mortgage broker, and she thinks giving up this much power is a terrible idea. I own my home outright, and I plan to repay Hometap upon a cash out refi right after this year’s tax season in April. I’m taking $25,000 on a $92,000 appraisal, and from there I plan an $85,000 cash out refi.
Hi Kevin.
To get on the same page, what would be a situation in which repayments would go bad? Specifically, I’m thinking of the amount you have to repay them.
One situation is that Hometap benefits the higher the home is appraised. However, it’s a third-party appraisal, so I don’t think this is too much of a concern.
Another thought is the risk of Hometap ending the agreement early/going out of business. Noah, a former competitor of Hometap, recently went out of business. There’s little information regarding what happened in agreements on the books, but maybe you can do some digging to see what’s going on (I’ve been trying as well) if that’s your concern.
Let me know what you’re thinking, and I’m happy to share some thoughts.
Will I be able to make monthly payments with a Hometap loan?
Hey Andre,
Not entirely sure what you’re asking, since it’s not a loan and there are no monthly payments. Can you please clarify?
Fantastic comments. If my house is worth 825,000 and I want 100,000 loan which would be about 12%. Hometap would then have 24% ownership? If my house sells for 900,000 would Hometap collect 216,000 or 108,000 (which is 12%)?
I like the process I am just worried they are going to make and own too much when I close, and I will be paying them nearly double what I borrowed.
Thanks so much!
Hi Jason,
While the numbers change depending on your situation, the premise that they would collect more in terms of percentage you got out is correct.
In your example, it would be 24% and not 12%.
Think of this gap, as well as the appreciation of the home, as the ‘interest’ you’re paying to Hometap.
And, for clarification it’s not a loan you’re getting from Hometap, but rather selling a portion of your home.
What happens if you convey your home into a trust after the Hometap process has already closed?
Have you seen an actual (or sample)” Option Purchase Agreement” from Hometap and if you have, what are your thoughts on the terms included in this type of agreement?
Also, Hometap is a relatively new company having started (I believe) doing business in 2017, so there are no reviews or details from anyone that has completed the full-term process (10 years) through option exercise or repurchase or that has paid back the original investment plus Hometap’s share early and how smoothly it went or not. This is a little concerning.
All good questions and concerns. I haven’t reviewed an entire contract from Hometap, and I hope I made it clear that everyone’s situation is different, so the terms you get are likely different than the next, which is why I’d get the contract by an independent party to make sure you understand the ramifications.
I am thinking of using Hometap to help start a business.
My situation is that my current job needs to pay me more to make ends meet, and I really want to be in control of my income potential.
I am just about done with the closing process with Hometap and am a little concerned about doing this. But I have tried every other option I can to increase my cashflow and the best option I can find is to be self employed.
Selling part of my equity to access cash will help me do that. Also I am using about a third of the money to pay my mother back a loan she gave me recently. Do you see any red flags in my plans?
Without knowing full details of your business, career, skills, etc… can’t be 100% certain of the following, but…
…the fact that you cannot make ends meet now, and that you’re hoping starting a business to make ends meet, is a red flag to me.
Overall, it’s easy to get in either/or mentality. As in, you cannot work a current job and start a business. But, is it an absolute truth that you cannot start a business without leaving your existing job?
I’d personally try and start at nights on the weekends to make sure the actual business idea is viable and customers are willing to pay for what you’re offering before selling a stake in my home to finance anything.
I was looking at using Hometap to fix up (repairs) on my primary home which is paid off in Washington State to sell it ASAP. Would Hometap be the best option?
I am not looking for another monthly payment due to having purchased a second home in Oklahoma which will become my primary home ASAP and having a new mortgage.
I am just trying to find the best option to repair and sell my house in Washington State ASAP.
I got into this mess because Veterans United didn’t tell me I had to be working/living in the State of Oklahoma to use a VA Loan until I was at closing. Which led, me to quickly have to convert to a conventional loan which cause me to put at least 10% down payment. Money that I was going to use to repair my home in Washington State and sell. Any advice would be great. Thank you!
Why not consider a monthly payment? If you’re just going to repair the home to sell, you’d be much better off having a monthly payment for a short-term.
OK then, what type of loan would be best used for this then?
Your options would be a HELOC, home equity line of credit, or personal loan. Look into each and see what types of terms you’re being offered.
I have just recently started to research this. My question is what would I owe if I receive 20% of my home value? Most examples I’ve seen show 10%, owing 20% of the home value after 10 years. What would I owe after 10 years if I received 20% of my home value? Thanks
Hi Charles,
That’s hard to say. A lot depends on your financial profile, which includes things like the equity you have and will have. You then get a firm offer only after underwriting. Tried playing around with Hometaps calculator, and they only allow you to see what a 10% stake is.
Unlock allows you to play around with what impact taking 20% out would cost in different scenarios. I’d recommend playing around with that calculator, to get an idea: https://www.thewaystowealth.com/unlock-review/
Hello. If you take out $50k for home repairs, are you able to pay back the $50k before the 10 years sale? So that you avoid paying the percentage to them? Perhaps to pay back the $50k in less than 3 or 5 years?
Yes, to clarify, you would still owe a percentage, but it would likely be lower than if you waited ten years. Please let me know if this helps.